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

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, there is nothing that I want more than for all travel restrictions to be gone throughout the entire world.

My riding depends on tourism and visitors, but I think it would be extremely problematic for me, as a non-expert in the field of pandemics and medicine generally, to comment or suggest that this is what we need to do right now.

We rely on the experts to advise us at various times on the best course of action. If we have a problem with the information that we are getting from the experts because we do not believe them, maybe that is a different discussion, but in the meantime we have people we trust and depend on to provide us with information so that we can make the best decisions on behalf of Canadians, and if those include travel restrictions, then I will support those recommendations.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I am pleased to rise to speak about Bill C-8, a piece of legislation that will add an additional approximately $70 billion of new spending to this federal budget.

Before I get into the meat of what I want to say, I will let the House know that I will be be sharing my time with the hon. member for Kenora, who is right beside me and anxious to get going.

Let us talk about the national debt before we really get into it. Right now it is hitting a jaw-dropping $1.2 trillion. At the start of this pandemic, the government brought in $176 million in new spending unrelated to COVID. We have said many times in the House, and I know I have, that there is a significant chunk of this new spending, a third of it, that was couched in the language of COVID but yet had absolutely nothing to do with COVID. We saw what happened: The government used that as an opportunity to reward its friends and punish its enemies.

Let us look at housing. This is most important, because everyone is looking at housing with a very serious lens, especially those on the lower side of the income level. Last year, home inflation hit 25%. The Canadian Real Estate Association's chief economist called it “the biggest gain of all time”. What happened was that $400 million of new money was put into the atmosphere, into the financial markets. Much of it was lent out, and it caused a massive bubble. When the Prime Minister took power, the average home was $435,000; now it is $810,000.

I am going to give a couple of examples from my home town. Actually, I will talk about the village of Bobcaygeon first. I

n 2014, this house was listed for $465,900. It sold for $455,000, so below asking, in 2014. Now, just last month, it sold for $1.9 million. It was actually listed for $1.8 million.

This house is in Lindsay. It is a three-bedroom, two-bathroom newbuild that was $319,000 in 2018. It sold last month on January 19 for $1.1 million. It was actually listed for $886,000. This is in the town of Lindsay, with a population of about 20,000 people, and it sold for $1.1 million.

The government continues to turn a blind eye to this problem. What is the government's answer? It is more new spending: Let us have another government program, a program that will inevitably fail, and then the government will come up with another program to fix the problem it created in the first place. What we need to transition to is more of an economy that talks about building things, getting our economy back on track and opening up where possible. The government failed on that as well.

At the beginning of the pandemic, vaccines were coming online, and what did the government do? It put all of its eggs into the CanSino basket. Of course, we all know how that failed. Then the government had to get in line, behind a whole slew of other countries, to try to get vaccines into this country.

Even before that, we here on the opposition benches were talking about different pieces to the puzzle that could aid in this fight, one of which was rapid tests. I remember right at the beginning when we were saying, as the opposition to the government, that we should be looking at rapid tests as a viable piece of the puzzle until we can figure out the next steps. The Liberals basically turned their eyes away from us. They did not want to have this conversation. Those are two main areas where they failed. They refuse to listen to anyone who might have a solution that differs from their vision. They shun them.

There are people all across this country who are frustrated and angry. I think we all are. I think we are all done with this pandemic. We should be talking about how we move to the next stage, but the Prime Minister refuses to say so. In my question just a moment ago, I asked the member for Kingston and the Islands about relaxing some of these travel restrictions, and many in the industry, including the experts that the member mentioned, are also calling for some of these regulations to be relaxed, including those that specifically focus on vaccinated individuals.

Travel and tourism are the industries that have been hurt the most, because the government refuses to move on these files. We heard the Prime Minister say in question period yesterday that he is not going to budge on this issue. Countries around the world are starting to relax some of their restrictions, realizing that we need to learn to live with this virus as best we can, as safely and responsibly as we can, but we continue to be one of the most locked-down countries.

There are ways through this. There are ways around this so that we can start opening up and living again, seeing our families again and not having to watch a loved one die through an iPad. There are solutions. The government just needs to accept some of them and listen to the experts who are saying, yes, there are ways forward.

The Liberals also talk a lot about Main Street. They always talk about Main Street, which is important. Conservatives had a very robust plan in our election platform to get people off their computers and back onto our main streets, but the only thing that is going well is Bay Street, because of those failures that I mentioned just a few moments ago. Who are the Liberals really in it for? I do not think it is the person living in the small town of Lindsay who now has to pay $1.1 million for a house that sold for $390,000 just four years ago.

Let us get our economy back on track. Let us start to reopen and have a serious conversation about reopening. Yes, most of it is in provincial jurisdiction. We now see the Province of Saskatchewan moving toward that, and others will follow, but the federal government also has to play a meaningful role in that conversation, from which it seems to be absent, especially with regard to international borders.

Let us get the travel and tourism industries back on track. We can do that safely; we know that. Other countries have done it, but there just does not seem to be any movement, and that is sad. If we really want to help the disenfranchised and their communities, economic activity is where we need to go. Here in Ontario, we have seen manufacturing leave at an alarming pace, and that happened during the 15 years of rule in Ontario when the Liberal Party was in power. It made electricity prices some of the highest in North America. Who relies on electricity the most? It is manufacturing, and we pushed all of that out. When the pandemic hit, what did we realize we needed most? It was manufacturing.

We put ourselves at a disadvantage, even our energy industry. Over the last six years, we have watched the Liberal government put in regulation, red tape and policy that shut down our energy industry, while at the same time promoting bad actors around the world. One example was that the government did not even fight the cancellation of Keystone XL. That was the first thing President Biden did when he got into office. The second was to release the sanctions on the completion of the Nord Stream 2 pipeline, which allowed Russia to provide energy to Germany, one of the biggest economic powers in Europe. Now we have an incursion paid for in large part by this new-found wealth the Russian superpower now has because it is now powering Germany. Why could we not fill that gap with Canadian energy? It is because we cannot seem to get anything built in this country.

Let us start focusing on what we need to do: strengthening our economy; creating jobs, opportunity and wealth; attracting the brains here and allowing them to innovate and create new things, including green technology. However, we cannot do that when nobody has the ability to get to their feet, and that is the result of the government continuing to put their boot on the neck of the economy.

I always say we should remember low taxes, less government, more freedom.

[Yasir Naqvi, Liberal, Parliamentary Secretary to the President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness]

Madam Speaker, I stand again with a very heavy heart, as I did a few days ago, to speak on behalf of my constituents, who are going through an incredibly terrible time right now because of the unpeaceful protests that are taking place on the residential streets of downtown Ottawa.

I have to say that I was so disappointed to see the Conservative members standing outside and cheering these protesters who are taking peace away from people who live in this community.

I am going to very quickly read an email that I received from one of my constituents. She wrote, “I am again horrified seeing our holy Jewish Star of David sported on jackets, desecrated by anti-vaxxers, which, along with the swastikas on flags, is terrifying for me and unspeakable for anyone who cares.”

Let us give them back their peace and end this protest.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I have said many times that there were acts, some of which the member just outlined, that have to be dealt with. Those individuals have to be held responsible for those actions. If criminal charges are necessary, they should be charged criminally and the law should be enforced. We support that.

However, the member opposite completely ignores how we actually got to this point. There are people who are taking time and money out of their own lives to travel across the country, in some cases, to try to get the government to listen to them. These are people from all walks of life, from all backgrounds, who feel the government has left them behind and has no care in the world for them. That is unfortunate, because they have a valid argument. Yes, there are people who need to be called out for their wrong actions, but to ignore the message that is being sent is a failure on the government's part.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, my colleague started off today talking about how much the steps the government has taken to help Canadians have cost, and I agree with him. What I disagree with him on is the fact that the New Democrats will always say that we should be supporting Canadians to get through this pandemic and we should continue to support Canadians as this pandemic carries on.

One of the things I struggle with is that he and his party voted with the government, with the Liberals, against a wealth tax to make revenue, to have that be more balanced.

Why did he vote with the Liberals? Why did the Conservatives stand with the Liberals again against a wealth tax?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I appreciate the member opposite's work on the committees we have sat on. The contributions she makes are greatly appreciated. I have learned a lot from her.

The government does not have a revenue problem; it has a spending problem. The government is spending more than it ever has. However, what is actually going right at this exact moment? There is a massive housing bubble. Inflation is at a 20-plus-year high. Veterans are still waiting in line for their services. Indigenous communities are still waiting for clean water. We need to see results from the government. Increased spending is not a badge of honour if there are no results that follow.

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

Madam Speaker, I am going to go off on a bit of a tangent because something has been nagging at me since this morning.

I am sure my colleague knows that the survival of French in Quebec and Canada is a big challenge right now. Last spring, the Conservatives even voted in favour of a Bloc motion recognizing that Quebec is a nation whose only official language is French. That is quite an important symbol.

The government, though, is sending all the wrong messages. For one thing, it appointed a unilingual anglophone Governor General, and this week, the Minister of Immigration, Refugees and Citizenship, a department that is key to the survival of French, held a press conference in English only.

Yesterday we learned that the new interim leader of the Conservative Party does not speak French. In other words, the new leader of Canada's official opposition is unable to understand one-quarter of the country's population. Does my colleague feel that sends the wrong message?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I appreciate the opportunity to respond to this. I think the member is doing her best to learn Canada's other official language, and I encourage her to continue to do that.

Let us talk about the economy, because that is exactly what we are talking about in Bill C-8, and how we are going to fix some of these problems. I will be really quick. Let us start encouraging people to go back to work as safely and responsibly as possible. Let us use all of the tools in the tool box that is at our disposal to get back to work and get back to normal.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I rise on a point of order. I know there is a general attitude around relevance, but we did see, in questions to my friend, basically a number of members making S.O. 31s instead of asking questions that were in any way germane to the debate. I wonder if you could make a ruling or come back to the House and advise us of the appropriate parameters, because it seems to me that talking about someone's facility in a language is totally unrelated to the topic of debate.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I will certainly take this into consideration. However, the hon. member is well aware that there is a margin of flexibility for individuals to be able to make comments. They do not necessarily need to ask a question. A member can make a comment if they wish. It is all part of the debate.

Resuming debate, the hon. member for Kenora.

[Eric Melillo, Conservative, Kenora, ON]

Madam Speaker, it is an honour to rise today in the chamber. I would like to thank my esteemed colleague from Haliburton—Kawartha Lakes—Brock for being so generous in sharing his time with me today. It gives me the opportunity to share some of the economic concerns we are seeing in the Kenora riding and across northwestern Ontario, and how I believe Bill C-8 does not adequately address some of those concerns. I look forward to providing some thoughts and suggestions to government members on ways we can move forward.

Obviously, there is no question that across the country we are facing a number of serious economic concerns, not the least of which is the cost of living right now, with inflation rising at record rates. This is something the Parliamentary Budget Officer has confirmed is a result of government spending. It is driven by government spending. It is something we are quite concerned about on this side of the aisle.

It is why our party has been continually pushing our proposal that the government cut back on its spending and phase out stimulus programs as things reopen and as we push for our economy to reopen, especially because the Parliamentary Budget Officer has stated that the rationale for this stimulus spending no longer exists. It is high time that we get things back on track, and we are looking for some leadership from the government to do just that.

When we look at everyday items, essential items like pork and beef have increased in price by 12%. I believe natural gas is up about 20%. Everyday essentials are becoming more and more expensive. These are things that were already more expensive for many in northwestern Ontario, for many in my riding, and these added costs of course make things that much more difficult. Also, government policies around vaccine mandates, specifically the vaccine mandate put in place for transport truck drivers, will have negative impacts on supply chains and will only make this issue much worse for a number of items.

I was talking recently with Nevin Nelson from Nelson Granite, which is just outside Vermilion Bay in my riding. This was one of his primary concerns. He is concerned not only about the ability for Canadians to import goods into the country, but about his business's ability to send goods to the United States. He was very clear to me that the vaccine mandate put in place specifically for transport truck drivers is going to have a detrimental impact on his business and on many others across northwestern Ontario.

We have been very clear on this side of the House, and we continue to push back against this policy. We are looking to find reasonable solutions and a middle ground so we can ensure that everyone is respected, that we are keeping everyone safe and that we are putting COVID behind us once and for all.

I have also had a number of conversations with folks from other regions of my riding. I saw some photos this week on social media from people at the Safeway in Kenora, where many shelves are empty. People going grocery shopping are not able to get the essentials.

A constituent from Sioux Lookout, Knowles, shared his heating bill. Knowles is currently paying $70 a week in carbon tax alone, with about $100 in HST on top of that. He is looking at $170 a week for just his heating. I do not know if Madam Speaker has spent much time in Sioux Lookout in the winter, but I know she is from northern Ontario, so she understands full well that heating is definitely not a luxury there; it is a necessity. In fact, in many parts of my riding, the wind chill dipped to around -50°C last night. It is quite evident that heating is a necessity, and these added costs are making things so much more difficult for people to get by.

It is not just about home heating, but about gasoline in cars as well. Prices are going up, and this is making it more difficult for people to get to the hospital, for example. Many people in my riding have to drive a couple of hours or more to access medical services, and the added costs for gasoline are making things more and more difficult.

That is why, when we are talking about inflation, our party has been clear that it is time to phase out the stimulus programs and it is time to rein in government spending. However, the government has been politicizing this position, saying that the Conservatives want to cut everything, that we do not want the government to spend anything. Of course, that is not the case. The government has to keep programs and services going. What we are saying is that the government needs to phase out the unnecessary stimulus programs, get things back on track and open up our economy.

I share a concern raised by my colleague in the NDP from northern B.C. about the northern residents deductions. The government has brought forward a plan in Bill C-8 to address the northern residents deductions by expanding the travel portion, but it has done nothing to address the base portion. We ran in the election on a plan to increase the northern residents deductions and to me, that is an example of good and efficient spending and making sure we are supporting those in the north. It is something that I think my colleagues in the NDP would agree with, and I hope the government will take it into account. Given some of the comments I heard earlier in response to a question on it, the government could potentially be considering that.

Another big issue, of course, is housing, something that is not included in the CPI. The prices we have seen have been increasing quite dramatically, and this seems to be impacting people from all walks of life and all income levels.

In the Kenora riding, we are looking for more affordable housing and housing for young people coming out of school and entering the workforce who are looking to stay in the community. A lot of people my age cannot find a place to live, frankly. This is also about working families and seniors. It is impacting everyone right across the district.

One of the biggest issues we see is that the government has not been providing incentives for people to develop. There are lots of pieces of land available in my riding, from Sioux Lookout to Ear Falls and everywhere in between. However, some of the solutions we have seen from the government and from some of the other parties in the House have only been focused on subsidizing demand, further driving a wedge into this issue and making it much worse, instead of focusing on the supply and increasing housing stock.

On the same note, housing in first nations specifically is something we need to see addressed. The underfunding we have seen from the government is leading to overcrowding, mould and a number of other issues, and this is having a detrimental impact on many people in my riding, particularly in the remote northern parts of it. In fact, as I mentioned earlier this week in the House, a recent report brought forward by the Canadian Medical Association Journal has shown that the issues in housing have led to worsened health outcomes in indigenous children. That is something we have been hearing from chiefs for a number of years and from community residents in my riding, yet the government has been slow to act. The time is now for the government to act on that and ensure we have stronger housing, better housing and better opportunities for first nations across the Kenora riding.

With the limited time I have left, I will say briefly that the labour shortage is obviously impacting many people across the Kenora riding. I looked at the job board in Dryden recently and there are over 100 positions available, from minimum wage jobs to well-paying jobs that require a lot of experience. This is a small community, of course, with a number of vacancies, and many businesses have not been able to find people to hire. We really have not seen a plan from the government on how to address that.

Those are three big issues that I feel have not been adequately addressed. I hope in questions and comments that I will be able to further share some solutions and suggestions that, going forward, will ensure northwestern Ontario can thrive economically and we can chart a new path forward.

[Yasir Naqvi, Liberal, Parliamentary Secretary to the President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness]

Madam Speaker, I appreciate the member opposite talking about some of the concerns of his constituents, and I want to take this opportunity to talk about some of the concerns that my constituents are facing right now daily because of the unpeaceful, unlawful protest that is taking place.

For example, I just received an email from a gentleman who wrote:

My wife and I live about 10 blocks west of Parliament Hill, and while not in the thick of it, we are close enough to be continually impacted by the protesters' activities. Besides the continuous blaring of horns, we are completely disgusted by the actions of these protesters. They are rude, aggressive and intimidating in the local stores and indoor spaces. One of the nearby parking lots seems to be used as a massive urinal. Insults and firecrackers have been hurled at people wearing masks who are simply passing by. I'm sure that you all have heard these stories and more on the news.

That is the impact on my community. This protest needs to end now.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I want to remind the hon. member that, just like we do for those who are delivering speeches in the House, the questions and the speeches should be related to the actual debate that is before the House. I just want to remind the hon. member to ensure that his questions are relevant to the discussion that is before the House.

The hon. member for Kenora.

[Eric Melillo, Conservative, Kenora, ON]

Madam Speaker, I thank the member opposite for those comments. I do not believe there was a question there, necessarily, but obviously everyone in this chamber supports the right to peaceful protest in Canada. To the extent that a protest moves beyond that, obviously again, we all support the proper measures being taken.

I do not live in the member's riding, of course, so I cannot comment on the specifics of what has been seen, but I think all of us in the House are on the same page in that respect.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I congratulate my hon. colleague from Kenora on his speech. He speaks softly, but he is eloquent. I believe he is doing a great job representing his constituents.

His speech echoes the same concerns I hear from the businesses and residents of my riding, Drummond, particularly regarding some of the measures brought in to help businesses and merchants get through the crisis we are currently experiencing.

In my view, there is something missing from the legislation before the House today, Bill C-8. The goal is to stimulate economic recovery, support entrepreneurs and build their confidence. However, entrepreneurs who started their business after the pandemic set in are excluded from many of the measures in place. This undermines confidence, causing people who want to start a business to think twice. I think this is undermining the economic recovery.

I would like to hear what my colleague from Kenora thinks about that.