Bill C-8

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

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.

Economic and Fiscal Update Implementation Act, 2021

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Madam Speaker, I heard my colleague use the words “inflammatory” and “irresponsible” to describe comments he heard from the government side.

Will the member today, in Parliament, condemn the actions of his own colleagues who have emboldened and encouraged the violent and hateful actions we have seen take place in our nation's capital and in communities across our country? They included racist, anti-Semitic and other actions by so-called protestors whose protests have been supported by Conservative members in Parliament, including one of his colleagues who stood in front of a flag with swastikas on it. What does my colleague have to say about condemning those actions, which are deeply disturbing for so many Canadians across our country?

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Madam Speaker, the Conservatives and I do not support extremism of any kind, no matter what the source. I certainly do not support that.

People have a right to protest and be listened to. They want to speak up. They are being ignored and are being labelled. It was reported in the media that there was an arrest made during a rally in Toronto because a smoke bomb was thrown in. It was done by someone who was a counterprotester. In Vancouver, where I am from, there were a number of arrests of more people who were against the convoy.

I believe that people need to be heard and listened to. I encourage the member to go talk to some of those people, to walk around and chat with them. That would be a good start.

[Mario Beaulieu, Bloc, La Pointe-de-l'Île, QC]

Madam Speaker, the economic update held the Canadian health transfer escalator to 3%. That is well below the annual health care cost increase.

We know the federal government paid for 50% of health care spending in the 1970s. Since then, it has steadily reduced its share down to the 22% we are at now.

Right now, Quebec and the Canadian provinces are unanimously calling on the government to increase the transfer by $28 billion, which would cover 35% of health costs and be a 6% escalator. What does my colleague think of that?

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Madam Speaker, it is really a problem. The impact of inflation on health care also affects seniors on fixed incomes because what they get is not keeping pace with rising prices. Government support is dwindling because it has lost control of the economy and its spending.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I am pleased to rise today to speak at length for the first in this 44th Parliament and, in so doing, speak to Bill C-8. I will review what this bill would do.

In alignment with the economic and fiscal update tabled in Parliament by the Minister of Finance last December, Bill C-8 would implement certain provisions of the economic fiscal update. There are a number of provisions in the bill, including several changes to the Income Tax Act; the enacting of a new underused housing tax act; funding for various COVID measures, including the purchasing of tests; and finally, amendments to the Employment Insurance Act. The economic fiscal update presented last year proposed increases in government spending by roughly $70 billion, which adds to the national debt.

Since the pandemic started, the government has piled on spending and debt totalling in the hundreds of billion of dollars. Budget 2021 predicted a $354-billion deficit for the 2020-21 fiscal year and an additional $154-billion deficit for the 2021-22 fiscal year. It should be noted, however, that not all of the debt incurred over the last two years by the government was as a result of the pandemic. In fact, approximately $176 billion in new deficit spending is unrelated to the pandemic.

I remember when the Prime Minister made a bold, but modest, promise to run a few small $10-billion deficits to support infrastructure projects. Way back then, Canadians believed him. We all know where that promise ended up: at the bottom of the PMO shredder, ripped up into billions of tiny pieces.

The fact is that the Liberal government cannot be trusted to manage the country's finances in a responsible way. It is one thing for a government to borrow money during an emergency; it is quite a different story for that government to be running up the credit card for things that are unrelated to the pandemic. The government is using the pandemic to hide massive spending increases, and this latest additional spending increase is, according to the Parliamentary Budget Officer, unnecessary. He stated, “It appears to me that the rationale for the additional spending initially set aside as ‘stimulus’ no longer exists.”

The reality is that we would not be here debating yet another $70 billion in deficit spending if the Liberal government had not mismanaged and exploited the pandemic over the last two years.

Where has this runaway deficit spending gotten us? Our national debt has now reached $1.2 trillion and has produced record-breaking inflation. At the finance committee, when asked if government deficits can contribute to inflation, the Parliamentary Budget Officer clearly responded that, yes, they can, and here we are with inflation reaching a 30-year high. Gasoline is up 34%. Housing prices are up almost 27%. Sugar is up 20%. Beef and bacon are up 17%, and carrots are up 13%. Even coffee is up 10%.

It has been reported that nearly 60% of Canadians are struggling to afford food for their families and that only 34% of Canadians believe their families will be better off in five years. It should then come as no surprise that this has led to Canada having one of the lowest levels of economic optimism in the world, well below the global average. I believe that is why we are seeing the mass demonstrations across our country and right outside the doors of this place, together with the thousands of people who have lined the streets and highways in support of them.

Canadians are looking for hope and a future. In March of 2020, they were asked for two weeks to flatten the curve. They have now given two years. They have been waiting for, and continue to wait for, a plan to reopen our economy, get Canadians back to work and life back to normal. Still, there is no plan.

To be clear, Conservatives always understood that, if Canadians were being told to stay home and shutter their businesses, financial support would be needed. That is why we were supportive of measures that supported Canadians and Canadian businesses. It is why we have supported spending that made a real change for struggling Canadians heavily affected by the pandemic. It is why our Conservative members were there every step of the way, providing solutions to address the shortcomings to make those support programs better and more responsive to the needs of both workers and businesses.

However, we also understood that we needed to position both businesses and workers to be able to open up and get back to work when it was safe to do so. Last spring, the Parliamentary Budget Officer noted that a significant amount of the Liberal spending in the budget would not stimulate jobs or create economic growth. Unfortunately, unbridled spending on Liberal partisan priorities has been par for the course with the government. It has always run deficits, not once trying to control the national debt or rein in spending, and now that is catching up with us.

During debate on the Budget Implementation Act, I made the observation that budget 2021 did not set Canadians up for future prosperity. Rather, I said that it set up Canada for long-term postpandemic failure. It would appear that this is now the case. The Liberals have made numerous missteps in their spending during the pandemic, and Canadians are paying for it with the cost of living ballooning under the government.

As I stated earlier, Canadians are finding it more and more difficult to make ends meet. Families will be paying nearly $1,000 more on groceries this year. They are struggling to provide for their children today, let alone save for their future tomorrow. Young people are being forced to live in their parents' basements because they cannot afford to buy a home of their own. There has been an 85% home inflation over the last six years, and 25% of that was in the last year alone. The Real Estate Association's chief economist has called it the biggest gain of all time.

Seniors on a fixed income cannot afford groceries with the price of food skyrocketing, and workers are finding it more and more costly to get to work with the price of gas soaring.

Under the Prime Minister, Canada has consistently had one of the highest unemployment rates in the G7 and record economic decline. In fact, the Liberal government has spent more and delivered less than any other G7 country. Now more than ever, Canadians need a government willing to prioritize thoughtful, focused and effective fiscal policies ahead of its own partisan purposes.

We need policies that support Canadians getting back to work. We need policies that support every sector in every province across our country. For example, the oil and gas industry, which employs thousands of hard-working Canadians, fosters economic growth and provides revenues that support social programs and infrastructure, such as schools and hospitals. We need policies that will put Canadians first.

Conservatives are opposed to Bill C-8, which would unnecessarily add an additional $70 billion of new inflationary spending to an already jaw-dropping deficit.

[Darrell Samson, Liberal, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence]

Madam Speaker, I notice my colleague's speech was bent pretty badly to one side and never talked about all the positives. She is saying there is nothing good in Bill C-8 and that we are wasting billions of dollars. If she looks closely, Bill C-8 includes major financial supports for schools, which are crucial, and the business community, which is crucial.

She also never spoke about the good news, like how all the jobs that were lost during the pandemic, which is over three million jobs, are back at 108%, In comparison, the U.S. is only back at 84%.

I would like her to comment about the good things in Bill C-8 that would help Canadians, schools, kids and community groups, etc. Please, find it in your heart to talk about the good things once in a while.

[The Assistant Deputy Speaker, Carol Hughes]

I would like to remind the hon. parliamentary secretary that, as I am sure he was not directing that to me at the end, he is to direct all questions and comments through me.

The hon. member for Carlton Trail—Eagle Creek.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I am sure the member would absolutely like me to speak positively about a measure that I can find very little to be positive about.

The bottom line here is that this bill would do nothing to secure long-term prosperity for Canadians, as I stated. It would do nothing to address the rapidly rising inflation that is impacting millions of Canadians, driving them closer and closer to the edge of financial insolvency. Instead, this bill is proposing more spending for a reimagined Canadian economy that dabbles in risky economic ideas and leaves our economy and Canadians behind.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Speaker, the more we hear from our Conservative friends, the more we see that they are still obsessed with inflation.

Of course inflation is important, but let us talk about the housing crisis specifically. As I said earlier, Canada is 1.8 million housing units short of the G7 average, according to Scotiabank. Moreover, 500,000 households in Quebec have urgent housing needs, and the federal government stepped away from social housing 30 years ago.

What we are seeing now is that the government is investing in the private sector to create affordable housing units in Montreal priced at $2,200. That makes absolutely no sense. To tackle this crisis, the government will have to invest money one way or another, even if that could make inflation go up.

Does my colleague think the housing crisis is serious and important enough for the government to invest money, even if that means a little bump in inflation? Would the Conservatives be okay with that?

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, we know that the housing market for new entrants continues to worsen under the current Liberal government. A recent report by the Canada Mortgage and Housing Corporation indicates a continuing trend of housing starts slowing down across the country, with December showing a 22% decrease from the previous month. This will exacerbate the problem.

As the member mentioned, Canada is facing a housing supply issue, which the Liberal government has consistently failed to address. The Liberals have no plan to address this housing crisis. Instead of figuring out how to implement a housing tax, the government should actually turn its attention to ensuring Canadian homes get built. We will continue to be the voice of Canadians who are left behind by the current Liberal government.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, 11 people die every day in this country from death by suicide. A third of those deaths are of people between the ages of 45 and 59. Suicide is the second-leading killer of people between the ages of 15 and 34. Men are three times more likely than women to die from suicide.

Our good colleague from Timmins—James Bay put forward a national suicide prevention action plan motion that was adopted in this House unanimously back in May 2019. The national collaborative on suicide prevention wants to see that enacted. Today I am hoping that we can actually talk about something and work on it together.

Does my colleague agree that the government needs to implement this right away? We see the grief and the trauma of people who have been impacted by losing a loved one to death by suicide.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I agree with the member that creating a national strategy to address mental health and the increase in suicides all across this country is very important. Having had a family member who committed suicide, I absolutely agree that more needs to be done.

[Clifford Small, Conservative, Coast of Bays—Central—Notre Dame, NL]

Madam Speaker, on behalf of the people Coast of Bays—Central—Notre Dame, I thank the Hon. Erin O'Toole for his service to our party and the sacrifices he and his wife Rebecca made as they led the official opposition. This is a huge challenge at the best of times, let alone during a pandemic.

This is my first time speaking in the House since our interim leader, the Hon. Candice Bergen stepped into her new role—

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the member that he is not to use individuals' names. They can be mentioned by their riding or position, but not by their name.

The hon. member for Coast of Bays—Central—Notre Dame.

[Clifford Small, Conservative, Coast of Bays—Central—Notre Dame, NL]

Madam Speaker, thank you for straightening me out.

I wish our interim leader well as she guides the party in a strong direction for this country.

I stand here providing an intervention on Bill C-8. Most Canadians are in awe of the government's spending over the last two years. When I talk with my constituents in Coast of Bays—Central—Notre Dame, the chorus that gets echoed is that our children and our grandchildren will have to pay for this. This is absolutely the case, and the additional, immediate concern is that we are actually paying for this now with skyrocketing inflation. The economic and fiscal update of 2021 adds an additional $70 million to fuel this fire. Seniors and people on a fixed incomes just cannot keep up and have to make difficult choices between buying their medicine, heating their homes and putting food on the table.

I am quite familiar with this. Many of my constituents are living this nightmare. Food and fuel inflation is through the roof, especially in my province. Gasoline is $1.71 per litre today in Gander and Grand Falls-Windsor. The average family in Canada will pay $1,000 extra for groceries in 2022. That is an average for Canada. I suspect it will be much higher than that in remote areas like Fogo Island, the Connaigre peninsula and the Baie Verte Peninsula. Extra government spending is relentlessly driving prices higher for my constituents.

Let us not forget the inflationary effect of the carbon tax, especially in remote regions like Newfoundland and Labrador. Here we are with the most vulnerable in our population bearing the burden because those who profited from the government's overstimulation of the economy have more money to chase less goods.

Small businesses throughout Coast of Bays—Central—Notre Dame are reeling from labour inflation and the rising cost of the products that they sell. According to the Canadian Chamber of Commerce, among our small business community, one in six will likely close their doors this year, putting a million Canadians out of work. The average small business has taken on $500,000 in extra debt, putting everything that they worked for in their entire life in jeopardy. The anxiety of small business owners is on bust, with no clear path forward on the reopening of our economy.

Great Britain and other European nations have latched on to the notion that we are now in an endemic, but they are reopening their economies so that small businesses can have a chance at survival and begin paying back the dept they have accumulated. In Great Britain, rapid tests have been available for purchase in convenience stores for months so that individuals could manage their COVID needs without having to place unneeded strain on their health care system.

Bill C-8 authorizes $1.72 million to provide for extra coronavirus testing. I think the government is a little late to the party when it comes to providing testing such as that available in Europe. As a result, we lag far behind our G7 partners in reopening our economy. Bill C-8 certainly highlights the government's failure to take advantage of rapid testing to keep our economy fluid and keep our workers employed.

As I gaze a little further along in this bill, I spot a clause that introduces a refundable tax credit to return fuel charge proceeds to farmers. It is not a bad idea. However, I cannot understand how commercial fishers were left our here. This clause could have been extended to include fishing enterprises. Does the government not realize that the fishing industry in ridings like Coast of Bays—Central—Notre Dame is crucial to providing food for our tables? A National Post article in 2018 stated that the effects of increasing carbon tax on the fishing industry could degrade its competitiveness.

We are seeing it now. Oil is currently almost $93 a barrel and is forecast to move well north of $100 this year, possibly to $200 a barrel in a couple of years. The effects of rapidly increasing oil prices and the carbon tax will put a heavy strain on fishing enterprises in Coast of Bays—Central—Notre Dame and in fact in all of coastal Canada. This bill should acknowledge the harm to our fishers and provide to the fishing industry a tax credit similar to that offered to the farming industry. Omitting the fishing industry from fuel tax credits shows how disconnected the government is from the pressures put on fishers by increased taxation on fuels. Fuel is not a luxury item for the fishing industry. Fishers simply cannot pass on the carbon tax to consumers, because they are bound by a market commodity-driven pricing arrangement for their catch.

The government could take this opportunity to use a bill like Bill C-8 to provide a complete carbon tax exemption for commercial fishing enterprises.

I just wanted to highlight how this inflationary danger could have been addressed in Bill C-8.

Bills like this help a few in our country but neglect to help most, and in the end, we pay more for everything. As well, bills like this that incorporate so many unrelated items to be voted on as a group are unfair to those of us who have to vote on them. This bill covers so many unrelated issues that it makes no sense.

To that point, this buffet of tax-and-spend measures even deals with the Employment Insurance Act as it pertains to seasonal workers. My mind was boggled as I tried to understand part 7, which talks about changes to seasonal workers' EI benefits. Many ridings in rural Canada are like Coast of Bays—Central—Notre Dame and rely on jobs in seasonal industries, and changes to the EI act are a big concern.

As this debate continues, I look forward to some clarity on part 7 of this bill. The government is responsible for letting Canadians know what its legislation means in layman's terms so that they can understand it. These are just a few things relating to my constituents that render Bill C-8 unacceptable.

From a broader Canadian perspective, the government has brought in $176 billion in new spending that is unrelated to COVID-19. The national debt has now reached a jaw-dropping $1.2 trillion. It is not looking good for the “budget balancing itself” act.

I am happy to be part of a team that is fighting to keep the cost of living down for our seniors, families and those on fixed incomes. I am thankful for the opportunity to speak on their behalf.