Economic and Fiscal Update Implementation Act, 2021

An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 amends the Income Tax Act and the Income Tax Regulations in order to
(a) introduce a new refundable tax credit for eligible businesses on qualifying ventilation expenses made to improve air quality;
(b) expand the travel component of the northern residents deduction by giving all northern residents the option to claim up to $1,200 in eligible travel expenses even if the individual has not received travel assistance from their employer;
(c) expand the School Supplies Tax Credit from 15% to 25% and expand the eligibility criteria to include electronic devices used by eligible educators; and
(d) introduce a new refundable tax credit to return fuel charge proceeds to farming businesses in backstop jurisdictions.
Part 2 enacts the Underused Housing Tax Act . This Act implements an annual tax of 1% on the value of vacant or underused residential property directly or indirectly owned by non-resident non-Canadians. It sets out rules for the purpose of establishing owners’ liability for the tax. It also sets out applicable reporting and filing requirements. Finally, to promote compliance with its provisions, this Act includes modern administration and enforcement provisions aligned with those found in other taxation statutes.
Part 3 provides for a six-year limitation or prescription period for the recovery of amounts owing with respect to a loan provided under the Canada Emergency Business Account program established by Export Development Canada.
Part 4 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of supporting ventilation improvement projects in schools.
Part 5 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of supporting coronavirus disease 2019 (COVID-19) proof-of-vaccination initiatives.
Part 6 authorizes the Minister of Health to make payments of up to $1.72 billion out of the Consolidated Revenue Fund in relation to coronavirus disease 2019 (COVID-19) tests. It also sets out reporting requirements for the Minister of Health.
Part 7 amends the Employment Insurance Act to specify the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-8s:

C-8 (2020) Law An Act to amend the Citizenship Act (Truth and Reconciliation Commission of Canada's call to action number 94)
C-8 (2020) An Act to amend the Criminal Code (conversion therapy)
C-8 (2016) Law Appropriation Act No. 5, 2015-16
C-8 (2013) Law Combating Counterfeit Products Act
C-8 (2011) Law Appropriation Act No. 1, 2011-12
C-8 (2010) Canada-Jordan Free Trade Act

Votes

May 4, 2022 Passed 3rd reading and adoption of Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures
May 4, 2022 Failed Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures (recommittal to a committee)
May 4, 2022 Failed 3rd reading and adoption of Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures (subamendment)
May 2, 2022 Passed Concurrence at report stage of Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures
May 2, 2022 Failed Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures (report stage amendment)
April 28, 2022 Passed Time allocation for Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures
Feb. 10, 2022 Passed 2nd reading of Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:15 p.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, I would like to thank the member for Foothills for his speech. I think he realizes the NDP is supporting Bill C-234. He comes from one of the most beautiful ridings in the country. It is almost as beautiful as mine. What it does have is some of the most fabulous native grasslands in the country.

I used to serve on the board of the Nature Conservancy of Canada. We did a lot of work in that area, working with ranchers to help conserve one of the most endangered ecosystems in the country. It was valuable to have ranchers on side to help us with that cause. Could he expand on that?

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:20 p.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, I will not get into arguing with my colleague about which riding is nicer. He brings up a very good point. I always appreciate the opportunity to highlight that yes, in my riding, I am the heart of cattle country and Alberta beef. We also take a lot of pride in the fact that we are protecting one of the most endangered ecosystems on planet earth and that is Canada's grasslands.

I know Canadians find that somewhat surprising at times, but the grassland ecosystem is more endangered than the coral reefs and the rainforests. It is so critical that our ranchers and our livestock producers take care to protect that grassland. Once it is gone, it is irreplaceable. It is so important for carbon sequestration and for carbon sinks that we protect that land so it is not developed for urban sprawl or any other options. It is critical that we protect that diversity.

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:20 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I think it is really important, and I agree with my friend from South Okanagan—West Kootenay, that we need to emphasize the carbon sequestration potential of grasslands and the preservation of grasslands. I do not want to get into a full debate on carbon taxes with the hon. member because Bill C-8 does not mention carbon taxes, except for trying to give farmers more of a rebate.

I also support, as does the hon. member who just spoke, the private member's bill to take the carbon tax off grain drying. The carbon tax program that the federal government put forward does exclude farmer's use of fossil fuels in the engines of cars and tractors, but not the grain drying. I think that was an oversight.

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:20 p.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, I do want to thank my colleagues from the NDP, the Bloc and the Green Party who are supporting our private member's bill in exempting the farm fuels from the carbon tax, because it is so important that farmers are able to keep that money in their pockets to reinvest in ways to be more efficient and more sustainable. I want to thank my colleagues around the House for supporting that bill. I wish the Liberals would find it in their hearts to do the same.

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:20 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Madam Speaker, I remember how it felt to buy our first home, to take the keys and walk through our front door. It was a modest and older home, but it had character and all kinds of potential. For young people, owning a home is often seen as a key to the next chapter of their life story, which a lot of times includes starting a family and putting down roots in a community, a community where they contribute to the social and economic fabric while building lifetime friendships and family memories. Quite simply, a home is considered a really important part of realizing the Canadian dream, but that dream is in jeopardy. In fact, it is in crisis. An entire generation of Canadians is being left behind and worse off than their parents’ generation with the government’s constant raising of taxes, printing of money, spending money it does not have, raising inflation and orchestrating a housing crisis.

I am humbled to be able to speak on behalf of Canadians who are being left behind by their federal government while so many others, namely, the rich and well connected, are getting further and further ahead. That is why Conservatives are so concerned about Bill C-8, yet another tax-and-spend bill that adds more inflationary fuel to the fire. Despite elements of the bill that are supposedly meant to address some of the underlying causes of this crisis, they are completely dwarfed and overshadowed by the $70 billion of new inflationary spending this bill proposes, $70 billion on top of $176 billion in new spending brought in over the past two years that has been entirely unrelated to the pandemic. That is also in addition to the $400 billion in new cash that has been printed over the same two years, cash that is chasing fewer goods and driving up inflation.

These choices have only helped to bring our national debt to an astounding $1.2 trillion and counting. For the sake of our country, spending of this kind has to stop, but numbers such as these are unfathomable to average Canadians. What does this inflation crisis really mean to them? Here is what it means. It means that 60% of Canadians are concerned they might not have enough money to feed their families. The government appears to take no concern with the fact that the average person will need to spend $1,000 more in a year to simply feed their families.

While that is insignificant to many who sit in the House of Commons, that is simply outside the margins for most Canadians. That is why many have no choice but to change their buying habits, moving to less healthy choices and discount brands, or cutting back on food significantly. At the same time, one cannot even begin to provide nutritious food for one's family if one cannot get to the grocery store, and that is a real problem, especially in rural Canada.

Sixty-eight per cent of Canadians are worried they cannot afford to fill up their cars any longer. The government likes to shrug off the blame to current world events, denying the layers of carbon tax, compounded with GST, that it has been punishing Canadians with several times over and is disproportionately punitive on families, low-income Canadians and seniors. We are just days away from yet another increase in the carbon tax that will add 12¢ to every litre of gasoline.

As the official opposition, we have devoted entire days of debate on this matter alone and have asked the government to give Canadians a GST holiday on gas, but to no avail. In its first act as a coalition government, the NDP-Liberal government voted our motion down. Even the NDP is not interested in giving Canadians support, a break at the pumps, in these extraordinary times. Therefore, what would make anyone believe that this coalition will follow through with relief for first-time homebuyers? Why should Canadians trust them, especially when the relief is not enough in light of the insane prices in the housing market today?

When the Prime Minister took power, the cost of the typical home was $435,000. That has since ballooned by over 85%, up to what I believe is $810,000 now, with inflation of 25% and more in just the last year alone. As politicians, we can cite these numbers all day long, but real empathy and meaningful action only comes from hearing the effects of this affordability crisis on everyday Canadians, so let us shift the focus back squarely on housing.

The average family must spend two-thirds of their gross income on monthly payments for the average home in Toronto or Vancouver, some of the world’s most unaffordable markets, 66% of their gross income. Meanwhile, any financial adviser worth their salt will tell young buyers that monthly housing costs should not exceed 25% to 30% of take-home pay. Otherwise, owners run the risk of living house poor. On Vancouver Island, I know that rent prices have soared out of reach for low-income and young Canadians. Even with the savings for a down payment on a home, there are no homes that young families can afford. They are being outbid by hundreds of thousands of dollars above the asking price.

British Columbia's Minister of Housing states that the province has been told to prepare for 100,000 new British Columbians every year for the next three years. That is about one-third of Canada's total immigration target. In the last three months, 24,000 new Canadians have arrived in B.C. Compounded by population growth within the existing population, pressure on housing supply is only going to get worse. The minister was clear that a dramatic increase in new builds is needed in short order. Also, the effect of offshore investment in Canadian land and real estate is making affordable housing an impossibility for young families.

Closer to Ottawa, a friend put a bid on a new home right here in the nation's capital. Another buyer offered $10,000 more than the asking price. This individual took a deep breath and matched it, only to learn that in response the other individual offered $90,000 higher.

Another couple I know locally has been diligent at putting away every dollar they can. In fact, they have now saved an amount for a down payment equal to the full purchase price of the husband's childhood home in 1999 prices, but they are still unable to find a home in Ottawa without living house poor. The most affordable options would place them more than an hour out of the city, away from their places of employment and the opportunities and services that the city provides.

It is not surprising, then, that Ontario has seen an exodus from the province in the last year. In 2021 alone, 108,000 individuals left for other provinces. That is the highest level since 1981, and it could be because the average price of a home in the greater Toronto area climbed 31%, to $1.2 million—

Economic and Fiscal Update Implementation Act, 2021Government Orders

March 28th, 2022 / 6:30 p.m.

The Assistant Deputy Speaker Carol Hughes

I have to interrupt the member. She will have three and a half minutes the next time that this matter is before the House.

The House resumed from March 28 consideration of Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / noon

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Madam Speaker, while the housing crisis is national in scope, regional spikes like the one in Ontario are the reason so many are actually calling Saskatchewan home now. I know of many retirees who cannot afford to remain in Ontario.

One couple, for example, planned a short visit to Saskatchewan but ended up staying permanently. Then they invited their children to bring their families to Saskatchewan. They had six months to live with their parents while they found employment and a new home. Others have also come to Yorkton—Melville from British Columbia and Quebec. Nonetheless, prairie affordability is being threatened by growing inflation, incredible debt and a punitive carbon tax that is definitely costing rural Canadians far more than they are getting back.

Although I love my province and the amazing people who live in it, I do not desire to see other areas of the country suffer from the poor choices of the national government. I want to see Canadians, regardless of financial ability, free to settle anywhere in this beautiful country, but let us face reality: Canadians now have a new majority government in Ottawa.

The survival of the old Liberal government, which initially tabled Bill C-8, now officially relies on the support of a party that has even more reckless intentions to run up debt and does not care how much money it has to print to do so. Unless this political love affair falls by the wayside, Canadians are stuck with this new reality for the next three and a half years.

Despite indifference on the other side of the House, Conservatives will be present ever day to offer solutions to this affordability crisis. For example, Bill C-8 proposes a 1% annual tax on the value of vacant or underused residential properties that are directly or indirectly owned by non-resident non-Canadians. In Calgary, I personally know of a family that rented in a subdivision that is completely owned by a Chinese investor who has never set foot in Canada. Conservatives would have banned foreign investors who are not living in or moving to Canada from buying homes for two years. We also proposed encouraging foreign investment in purpose-built rental housing that is affordable for Canadians. We will also continue to push the government to remove the gatekeepers to development and get shovels in the ground.

Canada's housing crisis is fuelled in large part by the choices of the federal government. It can choose to let the builders build or it can continue to stand in their way. It can choose to rein in spending and lower taxes or continue to allow inflation to spiral out of control.

The government is letting down young Canadians. The new generation of first-time buyers is not looking for flashy slogans, hashtags or photo ops; it wants concrete action from this new NDP-Liberal majority government to address the crisis. The first logical step would be to withdraw this irresponsible bill, which would only put the Canadian dream of ownership further out of reach for young Canadians.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, I was wondering if the member could expand on affordability. I know I hear from my constituents, almost on a daily basis, of taxes increasing. We know we just had the carbon tax increase here on Friday, and also the excise tax on alcohol. I was wondering if she is hearing the same thing from her constituents on the other side of the province of Saskatchewan about affordability and the cost of living and how it is affecting them.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Madam Speaker, absolutely I hear about that constantly every day. The thing that frustrates my constituents so much is that the government absolutely refuses to listen to the truth about the circumstances they are facing. The increase in the carbon tax, and inflation especially, is causing everything to go up. Of course, the ability to afford a home has become a scenario in which people are house poor if they do take that step and spend so much of their income on a house that is really, truly unaffordable.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Bloc

Martin Champoux Bloc Drummond, QC

Madam Speaker, like the Bloc Québécois, the Conservatives often champion Quebec's and the provinces' jurisdiction and generally oppose federal interference in areas under their control.

Bill C‑8 would see the federal government claim a piece of the property tax pie, which is under municipal jurisdiction. That kind of interference is new. What are my colleagues' thoughts on the Liberals' interference in areas under municipal jurisdiction?

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Madam Speaker, the truth of the matter is that the current government is very self-serving in the way that it is choosing to work with our provinces. It takes advantage of the provinces' need for funding and truly is putting them in a place where it is either the government's way or the highway. This is not acceptable. I am very proud of Saskatchewan and its government in its ability to run our province in its own areas of jurisdiction, and we certainly, as Conservatives, support that.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, I thank my colleague from Saskatchewan for her speech. In her riding, like mine, the carbon tax is an issue that many Canadians are talking about in terms of affordability and the cost of living.

One of the things I would like the member to comment on when we talk about the government's economic record and its fiscal plan, albeit from this fall looking ahead perhaps to the budget even this Thursday, is the Parliamentary Budget Officer saying that this tax disproportionately impacts rural residents more. It has cost them out of pocket and it is costing families and businesses, and that ripple effect is adding to an already difficult cost-of-living issue here. Could the member take this opportunity to perhaps share the context in her part of the country? Whether in my riding in eastern Ontario in the city of Cornwall or in some of the more rural parts, what I think I am going to hear is that we have very similar challenges and similar frustration on the part of many Canadians.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:05 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Madam Speaker, I thank my colleague for that observation and that question.

One thing I have learned as a member of Parliament that means a great deal to me, and I share this with my constituents here in Saskatchewan, is that the majority of the GDP of this nation is created in rural Canada. We are rural, and the issues faced by members of my communities who are facing this carbon tax resonate completely with rural Canadians across this country.

This government does not understand that dynamic, and the punitive measures it has put in place are not revenue-neutral. Certainly I know that my constituents are paying far more into this carbon tax than they are getting back, and it is more punitive towards rural Canadians.

Economic and Fiscal Update Implementation Act, 2021Government Orders

April 4th, 2022 / 12:10 p.m.

Conservative

Laila Goodridge Conservative Fort McMurray—Cold Lake, AB

Madam Speaker, it is an absolutely wonderful opportunity to be able to rise today and deliver some remarks on Bill C-8, the economic and fiscal update implementation act, 2021. It is kind of ironic, as I was reflecting on this over the weekend, that I am delivering remarks on the fall economic statement in the spring, but calendars are clearly difficult, and perhaps calendars are hard for the government as well.

Many of my colleagues on this side of the House have highlighted challenges. I want to thank the member who spoke just before me, my colleague from Yorkton—Melville, who really highlighted some of the struggles that are faced in rural Canada when it comes to pricing. That is something that is very true, and I would expand it to not just rural Canadians; it is a major struggle for anyone who lives outside of a major centre.

In my riding of Fort McMurray—Cold Lake, we do not really have a choice, in many cases, to stay home. I was talking to a few of my colleagues. In my world, everything starts at three hours. It takes three hours to get from Fort McMurray to Lac La Biche and another two and a half hours to get from Lac La Biche to Edmonton, so that is five and a half hours. It takes four and a half hours to get from Fort McMurray to Cold Lake and it takes a couple of hours to get from Cold Lake to Edmonton, so it really does not matter whereabouts we go: It is at least a few hours. That is not even including the more isolated communities in my riding, such as the community of Fort Chipewyan. That is one that I am going to talk about in a bit more depth.

Fort Chipewyan is a truly stunning place. If anyone has not had an opportunity to go to Fort Chipewyan, I highly recommend they take a trip. It is truly breathtakingly beautiful. It has the Canadian Shield, the great and powerful Athabasca River, Lake Athabasca and so many opportunities to explore the outdoors. However, it also has some struggles, because it is primarily without roads. It relies on ice roads through the winter as its main supply line. That means that a lot of organizations have to get their groceries and all their supplies for the entire year delivered in a short window of time while the ice road is open. Otherwise, they are relying on barges or flying equipment in. As members can probably imagine, all of those options are quite expensive.

When we have a government that continually raises the carbon tax, such as the one we have, one of the struggles is that the cost to transport those goods rises, and then the cost to sell those goods has to rise. Otherwise, the business owners or the organizations have a shortfall. They can only operate under a shortfall or in a deficit for so long before it has some major impacts. I know that the government does not necessarily understand that reality when it comes to budgeting, but most Canadians understand that they really do need to balance their budget or there will be some long-term complications.

In Fort Chipewyan, as inflation is going up and the carbon tax is going up, people are seeing substantially higher grocery costs, which is making it quite a struggle for many of the families to get healthy food options. Unfortunately, as members who have travelled through the north might be aware, it is the perishable goods and healthy food choices, including fruit, vegetables and dairy, that tend to be the most expensive in those communities. Therefore, when it comes to anything that is perishable, the inflationary cost is substantially higher because of the additional time to get there, and the community is really having to struggle. In fact, just last week some of the indigenous leaders in the community talked about the global food crisis having a huge impact on the residents in the community of Fort Chipewyan.

It is not just an issue in Fort Chipewyan. We see this as an issue in most of our rural, isolated communities. Further away, the communities of Conklin and Janvier are at least 90 minutes from a grocery store. There are convenience stores in those communities, but to get to a real grocery store, people in Janvier have to go at least 90 minutes to Anzac or 90 minutes to Lac La Biche. As fuel prices continue to skyrocket because of the carbon tax, those families see fewer opportunities to get to the grocery store and to buy those healthier food choices. What they are also seeing is that it is having a huge inflationary impact.

In fact, the PBO, the Parliamentary Budget Officer, recently said that it appears that the rationale for the additional spending initially set aside as stimulus no longer exists. What we are seeing is just the continuous spending of money. The government is spending and spending without actually looking at what this increase in spending is doing to average Canadian families.

This is part of the struggle. Families in my riding are finding it harder to make ends meet. There have been reports that have come out saying that the average family of four will see an additional $1,000 added to their grocery bill. I was thinking about this over the weekend because when I come to Ottawa, even if I go to the most expensive grocery store around, groceries are still less expensive than at the cheapest grocery store in Fort McMurray.

I was really thinking about this. We keep repeating, on this side of the House, the fact that groceries are going up by an average of $1,000 for a family of four, but now I am really curious. I am going to try to do some calculations on my end, because I would not be surprised if the average family of four in my riding actually saw a substantially higher amount because of the inflationary impacts and because of the inflation of food prices. These are coupled with more carbon tax, and all that ends up doing is raising the cost of everything.

One of the big challenges I think members opposite do not necessarily understand when they raise the cost of carbon taxes on so many of these goods is that, in communities such as Fort McMurray or Fort Chipewyan or other communities throughout most of northern Canada, we cannot just put goods in a warehouse. We have to heat the warehouse, because otherwise the food will freeze and then it will no longer be nutritional and healthy and safe for families.

On the flip side of that, we have midnight sun in many northern communities, so we need to have air conditioning through the summer. Otherwise, we will have a struggle where the food will go bad: It will spoil.

As the cost of heating and cooling buildings increases, so will the cost to have those business owners get to a place of balance. I think this is one of the big challenges that we face right now.

The government continues to spend money, but it is not really looking at how this is impacting families in the north and how this is impacting families in isolated communities all across Canada. It is so much larger than just the families in my riding. It impacts any family that has to travel for anything. I know many members on this side of the House, and I would assume many members on the other side, have to travel a couple hours or more in order to get to doctors' appointments, children's sports competitions and different pieces along those lines, or just to visit friends and family. I think this is one of those challenges that, as we see gasoline prices continuously increasing, families cannot necessarily cope with. They do not have the opportunity to print money like the government does.

Those real impacts and those real choices are really a struggle. As a fun piece, I think it is something that our communities really need to understand, and we need to make sure we are doing what we can to have families be able to afford nutritional food. This is especially true throughout the north.

I would welcome all members of the House to vote against the bill, because all it is going to do is raise the cost of everything.