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 often publishes better independent summaries.

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.

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

May 3rd, 2022 / 1:10 p.m.


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Conservative

Damien Kurek Conservative Battle River—Crowfoot, AB

Madam Speaker, as always, it is an honour to enter into debate in this place and on such important issues.

Before I get into the substance of Bill C-8, and I have a lot to say about that and there is a lot my constituents expect me to say, I trust I will be given a bit of latitude. I wanted to share specifically how much I appreciated being able to join this morning with members from all parties at the Sam Sharpe Breakfast. There, I joined with other parliamentarians, veterans' rights groups and organizations, and folks from across the country, including some both current and retired military personnel, to hear from an esteemed guest speaker and to talk about the need to ensure that mental wellness, operational stress injuries and PTSD are part of the central conversation related to the realities our men and women in uniform face on a daily basis.

I just wanted to start my remarks by thanking the member for Durham and the retired general and senator Roméo Dallaire for their work in helping make sure we could have what I think was very important. How fitting it was for the first public event in two years to bring together members of our military to talk about something as important as mental health. It is so very important, so I thank all those who made that happen, and I look forward to more of these sorts of events happening in the heart of what is supposed to be Canada's democratic infrastructure.

The second part of the context for this debate is very important. We are debating Bill C-8, a bill to implement various measures related to the fall economic update, but the context here is incredibly important. The Liberals have claimed a lot of things, as they often do, about how it is somehow Conservatives' fault that we are now in May, still debating the implementation of various measures in the fall economic update.

What the Liberals have failed to mention is the fact that it was only a day or two before Parliament rose for the winter break that this bill was introduced. If they were serious about their legislative agenda, they could have prioritized this to see that it was passed and to allow for the fundamental function of this place to ensure that members of Parliament are able to speak to such important pieces of legislation.

I find it really ironic that members opposite will talk about how it is all the opposition's fault. It is a little like the coach of a losing team blaming the fans for its performance on the ice or on the field. I am deeply troubled by the passing of Motion No. 11, which I think could have serious consequences to democratic discourse within our country, and I certainly hope the Liberals and their partners in the NDP will think long and hard about how we all have the responsibility to take our jobs very seriously.

On that note, I will jump into the substance of what Bill C-8 is about. I would just note that I heard comments from my colleague from Prince George and earlier the member for Regina—Lewvan, and there is important context for some of the measures that are included.

Part 1 of Bill C-8 talks about various amendments that would be made to the Income Tax Act when it comes to providing a refundable tax credit to eligible businesses on, for example, qualifying ventilation expenses. In the midst of a pandemic, I think most Canadians would think that is very reasonable. However, this is another example of where, according to many health professionals, we are moving into an endemic stage of COVID-19, yet this is what the Liberals are moving forward.

They are also expanding the travel component of the northern residents deductions to $1,200 and expanding the school supply tax credit, which would include electronic devices.

There is one part of the amendment to the Income Tax Act that I want to focus on specifically, and that is for farmers. I have heard members opposite talk a lot about how Conservatives debating Bill C-8 are somehow not serving farmers well. Let me be absolutely crystal clear. For members opposite, I happen to be from a farming family. We are the fifth generation to work the land in what is called Alberta Special Areas. It is in the north part of the Palliser Triangle. I hear often from farmers in my constituency and across Canada who are tired of the Liberal government's approach to try to control everything they do. This amendment is another example of that.

The Conservatives are opposed to the carbon tax: let me make that very clear. When it comes to the reality that farmers face, they are paying significant costs when paying the carbon tax on the fuel they burn. This is not an option for farmers. A large tractor can burn hundreds of litres of fuel per day. There are many green eco-activists, I am sure, on the Liberal and NDP benches who would like to suggest that somehow that should change. The fact that we are feeding the world is the reality that these farmers face. There are many examples where the taxes and expenses that are imposed on farmers by the government are inhibiting their ability to do what they do best.

The fundamental policy difference between Conservatives and the left in this country seems to be that Conservatives believe that farmers can and should be able to do what they do best, while the Liberals simply want to control and have a say in everything that they do. Let me again be crystal clear. Farmers tell me that it is not bureaucrats and politicians in Ottawa who know how to farm: it is the farmers themselves, and this is simply another example of how the Liberals seem not to be able to catch on to that.

I would suggest that, as my colleagues alluded to earlier, when it comes to expenses related to farming, the Conservative bill to bring forward an exemption to the carbon tax for agricultural activities is common sense. It is something that, quite frankly, should have had universal support within this place. There were, I believe, 18 Liberals in the last Parliament who voted in favour of this bill, and I am sure that they heard from their constituents in that regard. Again, there is that fundamental difference: the common sense of keeping dollars in the hands of farmers so that they can do what they do best and feed the world, versus heavy government bureaucracy controlling farmers.

That is not to mention the massive costs and the fact that the government is talking about a fertilizer mandate that could have devastating implications for global food security. There is the fact that fertilizer is directly related to the oil and gas industry. There are many other dynamics.

There is so much more to say on this. There are seven main parts to this bill and I only got through one of seven, so I could truly go on for probably another 60 minutes or so as I address all seven aspects. If there was unanimous consent, I would be happy to continue indefinitely.

I would simply sum up the next six parts by saying this. The Liberals have significant questions that need to be answered when it comes to even the most simple aspects of how they would approach this bill. I read through the costs for things such as their vaccine passport system. As provinces end the mandates—

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 1:10 p.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River—Northern Rockies, BC

Madam Speaker, I really respect the member, but to say that we are siding with the other side is really rich when we have seen the terms of the NDP-Liberal marriage. It is clear for all to see.

I will just bring up one example of when the government promised one thing. It said that carbon taxes were going to be neutral. Here again, the PBO said that just that one carbon tax exemption alone would save farmers across Canada $1.107 billion. That would be huge for our farm families and farmers across this land.

My hope, again, is that Bill C-234 passes. The government has made a good change to Bill C-8, but I digress.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 1:05 p.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River—Northern Rockies, BC

Madam Speaker, I really look forward to opportunities to speak in the House, and this is the first time I am speaking to Bill C-8 in respect to farmers and the negative effects of the bill on their operations and their farm families. This is part of the debate. This is part of what the House of Commons is for. I wish the member across the way would recognize that. This is a part of democracy.

We have seen the government across the way do a bunch of things that are, frankly, undemocratic. Canadians are becoming more and more aware of this, with the strong-handed, strong-armed approach of the Prime Minister, followed up by support from members like the one who just asked a question. My hope is that we can get some better measures in Bill C-8. That is why we are debating today.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:55 p.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River—Northern Rockies, BC

Madam Speaker, I will be speaking to Bill C-8 for those in Canada who are watching today, and I will speak about how Bill C-8 fails our farmers.

What I learned recently, when I was back in British Columbia and spoke to the grain growers in my neck of the woods in northeastern B.C., is how dramatic the costs have risen over the last 12 months. Bill C-8 would not help. It would just makes things worse, and I will speak to that.

Ultimately, when we put our farmers at risk we put our food security at risk. I am going to mention the B.C. grain growers. That is the group I met in Dawson Creek a couple of weeks ago. They are good folks: President Malcolm Odermatt of Fort St. John, Vice-President Jennifer Critcher of Tower Lake, Robert Vander Linden of Clayhurst, Ernest Wiebe of Rose Prairie and researcher Kristyn Brody of Fort St. John. We heard what was obvious. We talked about Ukraine, the effects of Putin's invasion and its effects globally on fertilizer and things like it, and that accentuates what I am going to speak about. At a time when our farmers are getting hit with all these increased input costs, the government should be looking at any way possible to support our farmers.

This is what I heard. This is directly from farmers. From Ernest Wiebe of Rose Prairie, I heard that fuel has doubled over 12 months from 73¢ a litre $1.55 a litre this year. For Ernest's farm, let us speculate what the costs will be. Last year, in 2021, it was $110,000 for fuel, and in 2022, it will be $230,000. Inputs have doubled. Seed has doubled. Fertilizer has doubled. This highlights what the government could do with Bill C-8.

By the way, I am sharing my time with the hon. member for Battle River—Crowfoot.

The member from the Liberal Party has already spoken about what Bill C-8 could do, but what about what Bill C-8 does not do? What the government has been asked to do is to extend the carbon tax exemption to propane and natural gas. Instead of just diesel, it really needs to be applied across the board. For people in Toronto, Ottawa or Vancouver, heating a shop might be an option, but where we live, in northern B.C., it gets down to -40°C for long periods of time and this really is not an option. Natural gas and propane are also used in grain drying, so they are a much-needed commodity up there, and we are asking the government to allow propane and natural gas to be exempt.

We are talking about carbon tax credits for our farmers, and I have not even brought up what they really do by putting carbon in the ground through carbon sequestration. Then there are all the other measures that farmers contribute to our environment but do not get credit for. However, maybe I will talk about what the government is offering in Bill C-8.

It says it is offering $1.73 per $100. I think that is the promise it has made, and it is in the form of a rebate. However, the Parliamentary Budget Officer has already come back with a figure that is much lower than that. I will digress a bit here. A rebate is something that a farmer has to apply for and then get refunded in the future. It could be a year or 18 months before a farmer ever sees a dime of that rebate, or maybe never at all. Maybe a form was filled out incorrectly and the farmer does not see any rebates.

Let us get down to the brass tacks of what the government is offering. It is a lofty promise, but this is what really happens. This is from the member of Parliament for Foothills in a previous speech:

From the very beginning, when the Liberals have talked about their carbon tax, they have always said it is going to be revenue-neutral and that whatever anyone pays into the carbon tax they are going to be getting it back in a rebate. We know, from the report of the Parliamentary Budget Officer that came out last week, that this is completely untrue. In fact, Canadian farmers only get about $1.70 for every $1,000 of eligible expenses that they pay on the farm. That is definitely not revenue-neutral. In fact, that is only a fraction of what a farmer or a farm-family producer or agri-food business would spend in a carbon tax.

There is a huge cost to farmers right now. We see that the risk farmers are under is at an all-time high too. There are huge costs. The margins are the way they have pretty much always been, but the risk is much higher.

I would like to talk about a positive way the Liberals could actually change this, with Bill C-8. We have put forward a motion on this side of the House, by the member for Huron—Bruce. We had Bill C-206 put forward by a member in the House in the previous Parliament. This Parliament it is Bill C-234, and it does exactly what I am asking to do today. I will read it out.

This is a quote from the member for Huron—Bruce. He said, “According to Bill C-8, in the fall update on page 83, the rebate is $1.73. When I read that I thought it was per hundred dollars of eligible expenses, but it is actually per thousand dollars of eligible expenses. Therefore, if farmers have a million dollars in eligible expenses on their farms, they would not even receive a $1,800 rebate.”

It is cents on the dollar. This is, again, when farmers are at an all-time high of just pure risk and pure money that they are spending, and they are all dependent on weather to get food on our tables.

Once again, the Liberals across the way say the carbon tax is neutral. This is from the PBO. This is not just from the member for Foothills. This is from the PBO. The PBO recently updated the fiscal cost of Bill C-234. It costed exactly the carbon tax on propane and on heating, and the benefit that the farmers would receive. This is what the PBO has said the net gain would be. The PBO recently updated the fiscal cost of Bill C-234, and what farmers would save. Previous reports were done for its predecessor, Bill C-206. As members can see, the numbers are relatively similar, with cumulative costs being $1.107 billion versus $1.104 billion for Bill C-206.

Clearly, we have a plan. The government could be putting this in Bill C-8, as I heard the member across the way mention. This would be a really easy fix for farmers and really supportive for farmers, especially in this very trying time we are stepping into in 2022.

I am going to speak more about Bill C-234. I have another quote from the member for Foothills. He said,

In contrast to what is being offered by the Liberals in Bill C-8, the Conservatives have put forward a private member's bill, Bill C-234, that would exempt farm fuel from the carbon tax, specifically natural gas and propane used for heating and cooling barns and buildings, as well as for drying grain. That would allow those farmers to hold that money in their accounts and reinvest those dollars into their operations, again to make them more efficient and more sustainable.

Unlike the Liberals' carbon tax in Bill C-8, Bill C-234 has almost unanimous support among agriculture stakeholders, including the Agriculture Carbon Alliance, which is a coalition of 14 different national farm organizations that represent 190,000 farm businesses and more than $70 billion in cash receipts. I think that is pretty critical, when all of those groups are supporting our approach to reducing emissions compared with the Liberals' obviously failing option.

The Liberals say we are holding up debate and holding up the House, but when there are simple things like this that they could be doing for farmers across the country, especially farmers in my riding who I just spoke to two weeks ago, it is unfortunate they will not make those simple changes that might get some support across Canada.

I will finish with this: Most importantly, whenever we put our farmers at risk and their businesses fail, what concerns me is that with one failed farm business, there are implications for our food security and for putting food on our tables across the country and well into the future. We all know that once farms fail, they rarely come back.

The Liberals know the right thing to do on Bill C-8. They have the opportunity to fix it and make it better. I would ask them to do that.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:50 p.m.


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Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, I appreciate my hon. colleague's raising the request for the guidance documents. I met with representatives from CropLife Canada this morning. They, too, have been looking for them since December 8, so I hope he has the opportunity to encourage the minister to release them very soon.

I want to ask the member more specifically about the price on pollution for fuels, particularly for grain drying. Why does he consider the approach the government is taking in Bill C-8 superior to the one being proposed under Bill C-234? He mentioned that the government wants to keep a price signal. However, when there are no viable alternatives, what is that price signal doing? Is he hearing from his constituents, as I am from mine, that his is the more preferable approach?

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:40 p.m.


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Liberal

Kody Blois Liberal Kings—Hants, NS

Madam Speaker, it is always a privilege to have the opportunity to rise and speak to important legislation, including today on Bill C-8.

I had that opportunity a couple of weeks ago. I want to say at the outset that I was sick of hearing about Bill C-8 then, and I still am. I will gladly stand here and speak to it, but I want to go on the record saying how disappointing it has been to see that the bill has not moved through the House at the speed in which it could. For those Canadians who are watching at home today, Bill C-8 is actually the legislative introduction of measures that were introduced before Christmas, in the fall economic statement.

The reality is we are on day 11 or 12, and it is concerning that these measures have not been brought forward. I have chided some of my colleagues opposite in terms of their seeming desire to keep this in this place for quite some time. I will start with that.

I also want to go on the record to say that, although there is not yet a decision, we are hearing reports from the United States that Roe v. Wade, the really important, fundamental decision that reinforced a woman's right to choose, could be overturned by the Supreme Court. I just want to say how concerning that is. I know that we, as Canadian parliamentarians, do not get to control judicial decisions in the U.S., but the policy implications and the impact on women across the United States is concerning. It is important for all members of Parliament in the House to reaffirm the belief and the protection of a woman's right to choose for her own body. We will see where that conversation goes in the days ahead in Canada. It is a sharp reminder of that importance.

One key element of Bill C-8 is the returning of fuel surcharges on the price on pollution. We have heard a lot of conversation about the price on pollution in the House. I am proud to be the Chair of the House of Commons Standing Committee on Agriculture and Agri-Food. We had discussions about this in terms of practices on farms, such as grain drying, heating of barns and certain other elements, and making sure that when farmers are not able to make a transition, or when they are not able to take on different techniques to get around the price, we are not punitive.

There is $100 million in Bill C-8 that is extremely important to get to farmers in backstop jurisdictions. The backstop jurisdictions are Ontario, Manitoba, Saskatchewan and Alberta. I head the opportunity, as the member for Regina—Lewvan commented earlier in the House, to be in Saskatchewan about two weeks ago, when we had a break. I certainly heard a lot from farmers around the price on pollution.

I reminded them of the importance of getting this legislation through. I know some of my Conservative colleagues would take a different view about the policy altogether, but I reminded them that the government is recognizing that we want to make sure the price signal stays and that we have a way to compensate farmers. I reminded the good folks in Saskatchewan that they should turn to their Conservative members of Parliament to make sure that we get this legislation through so that support could be going to farmers. I will keep that message for my kind colleagues across the way.

That element of Bill C-8 gives me an opportunity to talk about the importance of agriculture. I have had the opportunity in the House to speak to it before. On February 24, the world fundamentally changed its outlook, first and foremost because of what we are seeing in Ukraine and the tragedy and impact of human suffering. We are proud of the way that Ukrainians have stepped up to defend their sovereignty, and indeed to defend rules-based international orders. We have been there. Today is not a conversation on that.

However, the implications of that are such that we staring down a global food shortage. Members should let that sink in. Not just in the next couple of months, but for the next three to five years, the destruction of some of the agricultural infrastructure in eastern Europe is going to cause complications around the world. Indeed, it will be felt here in Canada. We have the propensity to step up and fill that gap. It is a really important time for all parliamentarians, regardless of what area of the country they represent, to understand that we have a chance to support the world in food production.

I want to just highlight for colleagues the importance of our agriculture and agri-food industry. It accounts for one in eight Canadian jobs. That is 12%, or almost 13%, of the Canadian workforce that is tied to this particular industry. It represents $140 billion of our gross domestic product every year. I really do believe, again because of world events that we have seen, that there will be a heightened focus on food policy and the way we as parliamentarians can be constructive in the conversation to make sure that Canada can play its part in the global context.

As I mentioned, I spent four or five days in Saskatchewan, and let me go on record as saying how impressive it was to see the innovation, the ingenuity and, really, the tremendous work of farmers and those involved in the industry. It is not only in Saskatchewan. I know this is happening across the country. However, Saskatchewan is certainly the heartland for where this is happening. Forty per cent of our arable lands are in that province.

I want to take the opportunity to talk about a few things that will be particularly important. I will move quickly, because I only have so much time.

Commodities are through the roof. We know that the price for energy, the price for fertilizer and indeed the price for our cash crops are high. That is going to create tremendous pressure on our transportation sector. Now is the opportunity to be identifying ways in which the government can work with rail companies, in particular, to try to address what we know is going to be a demand surge, as energy, critical minerals and harvest will all come to pass at the same time.

I had a conversation with Dr. Richard Gray at the University of Saskatchewan, and I want to mention him. He had two suggestions. We should get agronomists who are already on the ground across the country to take inventory of what we expect for our harvest come harvest time so that we can have estimates of the tonnage that will be needed and the number of railcars that will be needed to get this to port. The other suggestion, of course, is to work with the transportation industry to find out how we can meet this demand. It will not be a matter of the farmers planting. We know that the market signals are high and that they will indeed be doing that. It is going to be about whether we have the opportunity to get things to market.

With respect to plant breeding, it is not necessarily a sexy topic, but it is going to be extremely important and has been extremely important in the past. We talk about canola, for example. Back in the 1990s, canola did not exist in the way we know it today. That was driven by innovation through plant breeding cycles. It is particularly important for the government to be looking at its guidance documents for gene editing. This comes under Health Canada. It would allow us to have a regulatory market that can drive innovation in this space, which is going to be particularly important. My understanding is that before Christmas this was set to come forward. The sooner that we as a government and all parliamentarians call for this, the more beneficial it will be.

With respect to plant protein, I had the opportunity to be in Vanscoy, just outside of Saskatoon, at the Ingredion facility. It is a $300-million facility driving at the tip of the iceberg of what the plant-based protein industry represents. Indeed, this is something of a global movement, but our prairie provinces are well placed to take this opportunity. I was very pleased to see in the budget the continuation of funding for the supercluster. Hats off to Protein Industries Canada for its work in driving some of the private partnerships and capital we have seen.

I also want to take a moment to recognize the importance of supply management. During the pandemic in particular, we saw just how resilient the systems that support farmers across the country are.

Occasionally, some argue that Canadians would be better off without supply management, but the system ensures that there is national capacity across the country. It ensures a fair price, but it still has a competitive factor built into the model. Unlike in the United States and Europe, no government intervention is needed.

I am proud to represent the riding with the largest concentration of supply-managed farms in Atlantic Canada. However, the member for Parry Sound—Muskoka is openly pushing to dismantle this system, and the Conservatives have not been consistent in their support.

Budget 2022 has made significant commitments to the sector, and I know that farmers across the country will take notice.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:40 p.m.


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Green

Mike Morrice Green Kitchener Centre, ON

Madam Speaker, one item that was not in Bill C-8 was a guaranteed income for folks with disabilities.

I want to start by thanking the member for Saint-Laurent for her support alongside over 100 parliamentarians in this place who have called out, in light of that, for the government to reintroduce substantial legislation for the Canada disability benefit.

I wonder this. Would she mind sharing the importance of reintroducing the Canada disability benefit?

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:35 p.m.


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Liberal

Emmanuella Lambropoulos Liberal Saint-Laurent, QC

Madam Speaker, we are here today to debate Bill C‑8, which contains very important measures to give my constituents the help they need during the pandemic. I am thinking of the teachers in my riding who will receive a tax credit for changes to their work over the past two years. They have had to buy things for their homes so they could teach their students well.

Talking about this very important bill is the reason I rose in the House today.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:30 p.m.


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Liberal

Emmanuella Lambropoulos Liberal Saint-Laurent, QC

Madam Speaker, I will be sharing my time with the member for Kings—Hants.

It is a pleasure to rise to speak to Bill C-8 today. The government knows that elevated inflation and rising gas prices are leading Canadians to worry about the cost of living as the pandemic continues to affect our everyday lives. Let me remind hon. members in the House that this is a global phenomenon driven by the unprecedented challenge of reopening the world's economy.

For two years, Canadians have been grappling with COVID-19. Two years ago, this pandemic triggered the steepest economic contraction in Canada since the Great Depression. At its worst, it cost three million Canadians their jobs as our GDP shrank by 17%. Today, even in spite of ongoing challenges presented by the pandemic, we are on a strong footing. Canadians have put saving lives first. That has meant one of the lowest mortality rates in the G7.

As of March 13, 85% of Canadians five and older were fully vaccinated, and the Canadian economy has seen the benefits of prioritizing our health. The Canadian labour market rebounded strongly from omicron in February. We have already more than recovered the jobs lost: It was a healing that took eight months longer after the much milder 2008 recession. In fact, we have recovered 115% of the jobs lost during the pandemic compared with just 93% in the United States, and we have recovered faster than in any other recession.

The unemployment rate fell to 5.7%: the lowest since we started collecting data in this way. Canada continued to see a strong economic recovery in the fourth quarter, with economic activity increasing 6.7%. Encouragingly, growth was broad-based, supported by solid underlying fundamentals and an ongoing rebound in sectors hit hardest by the pandemic. However, this growth could not have happened or been achieved without government support. Our government delivered significant fiscal policy in order to support Canadians during the pandemic, and this has contributed to a rapid and resilient recovery so far.

Last December, we introduced Bill C-8, which seeks to address housing affordability through the implementation of a national annual 1% tax on the value of non-resident, non-Canadian-owned residential real estate in Canada that is considered to be vacant or underused. It is something our government announced as part of budget 2021 to crack down on underused housing. The bill would introduce a new act, the underused housing tax act, to ensure that non-resident, non-Canadian owners, particularly those who use Canada as a place to passively store their wealth in housing, pay their fair share of Canadian tax beginning in the 2022 calendar year.

We are also working to address the issue of supply chain disruptions from around the world, and shipping bottlenecks that have made it harder for Canadians and businesses to get products and supplies they need and that, in many cases, are contributing to rising prices.

Let us review the facts. Bill C-8 was tabled in the wake of the omicron variant. The bill contains critical support for Canadians, including a tax credit for businesses that improve their ventilation in the wake of COVID, an expansion of the school supplies tax credit for teachers who bought additional supplies as a result of virtual school, a return of the price on pollution for farmers in backstop jurisdictions, $1.72 billion for rapid tests and $300 million to support proof of vaccination systems developed by provinces and territories.

Bill C-8 also proposes to establish a statutory authority for the Minister of Health to make payments in a total amount of up to $300 million to provinces and territories for costs associated with implementing COVID-19 proof of vaccination credential programs in their jurisdictions. Another important tool in our tool box to navigate through this pandemic is the use of rapid tests. With studies suggesting that people without symptoms may cause up to 50% of COVID-19 transmission, it is obvious that rapid tests can significantly help reduce the risk of outbreaks.

The Conservatives have seen fit to filibuster this bill for months on end, using procedural tricks to stop this support from getting to Canadians who, quite rightly, expect and deserve better.

With their report stage amendments, the Conservatives tried to delete from the bill an expansion for the school supplies tax credit for teachers who bought additional supplies as a result of virtual school, a return of the price of pollution for farmers in backstop jurisdictions, a tax credit for businesses to improve their ventilation in the wake of COVID, the expanded northern residents economic deduction, $100 million for provinces and territories to support ventilation projects in schools and $300 million to fund provinces and territories in order to support existing proof of vaccination initiatives.

Over the past two years, our government has put in place comprehensive, broad-based support programs that have since evolved to more targeted measures. We did this because it was the right thing to do at the time. As we look to the years ahead, our government is determined to continue to do what is necessary to support and sustain the recovery, to provide help where it is needed, to create jobs and set the stage for strong growth in the years to come.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:25 p.m.


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Conservative

Frank Caputo Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I can be critical of imprudent spending. When my colleagues stood up we were in the midst of a pandemic, and I admit that at this point we are still in an endemic. However, as the colleagues across the aisle like to point out, we have recovered all of the jobs and our economy, according to them, is roaring.

We are here debating what is happening today, not the spending that happened yesterday. Bill C-8 is about today, so to reference and allude to the fact that I simply do not know what I am talking about because I am talking about today, with respect, misses the mark.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:10 p.m.


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Conservative

Frank Caputo Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I will note at the outset that I will be moving a subamendment at the end of my speech to Bill C-8.

As always, it is a pleasure to rise on behalf of the people of Kamloops—Thompson—Cariboo.

Out of respect for the four young men who lost their lives recently in Kingston, I will be taking a brief moment of silence to recognize their service and sacrifice, and to honour their memories.

On that note, I would like to thank all those who have served, both past and present. We have a number of people in the House who have served, and I thank all of them for their service. I thank all of our brave soldiers, who are currently enrolled in the forces, for enhancing our country's safety.

Last night I debated about what I was going to speak about on the bill, and one thought that came across my mind was the idea of trust in the government and how much trust the average Canadian should or should not put in government. I also thought about trust when it comes to fiscal affairs and trust when it comes to spending.

Trust, when it comes to this country's finances, is important. Do Canadians trust this government, and all of us here, to be good stewards of their money? When we think about finances, and I recognize that no government is perfect, the Prime Minister previously said things such as “the budget would balance itself” and that the budget would be balanced by 2019. I believe that was to be set in stone. During our most recent federal election he said that a reporter, or Canadians generally, ought to forgive him if he did not “think about monetary policy”. These things worry me as a parliamentarian, a Canadian, a father, a husband and a member of Kamloops—Thompson—Cariboo.

I have spoken about my background in the House, and I will do it again, because I think it is appropriate at this time. My dad came from Italy when he was in his early teens, my mom came as a young woman, and they met in Kamloops—Thompson—Cariboo. My dad was a sawmill worker. My mom was a homemaker who went back to work when I was about 10 years old.

My parents paid off two houses on one income. As a young man, we did not go out for dinner because we could not afford it. Family trips to Vancouver were a big deal. Now, as a parliamentarian, I have to be candid, it was fairly novel to get on a plane. The luster has worn off, I will admit, but it is still an honour to be here at all times. However, what I learned is this: It is important to have one's own financial house in order, and that house includes this House and what we are spending in the House. It is important to be a good steward of the economy.

I remember my dad driving a 1967 Ford into the 1990s. Why did he do that? It was because that was a prudent financial move. My dad bought a truck, I believe, in 1981, and he practically ran it into the ground. We, as government, cannot act like we are leasing a Rolls‑Royce when we can only afford a lesser vehicle.

The problem I am arriving at is this: Interest rates are rising. This means that life will become more expensive. I am focusing on spending here, but there is a lot to say on Bill C-8. We just saw interest rates rise about a half a point, which is going to make every mortgage more expensive. It is going to make every line of credit more expensive, and there will be an impact on housing. There will be an impact on spending generally. However, this fall economic statement increases government spending by about $71.2 billion.

I am concerned about the lack of relief when it comes to the cost of living in this bill. It is a fairly lengthy bill and I know that colleagues across this House will point to aspects of the bill that are meritorious. One thing I am highlighting, though, is the gravity of the spending $71.2 billion. This is against a backdrop of inflation hitting 6.7% in March. The last time inflation was that bad was in the early nineties when the GST had just been introduced. I remember a can of soda going from 95¢ to $1.02, and we just were not used to using our pennies. That is where inflation is right now.

My colleagues across the aisle, in particular, have pointed out that inflation is a global problem. Globally, inflation is occurring but that does not mean that we ignore it locally because inflation is exacerbated by local policies. The printing of money necessarily contributes to inflation because more money is chasing around the same amount of property and services.

This high-spending agenda also concerns me. When we have high deficits, who pays? One of the reasons that payday loans, for instance, have been heavily scrutinized is because they are compounded, and that can result in death by a thousand financial cuts. There are people who simply cannot afford another payment, another tax, or another bit of interest.

The same goes for credit cards. With all due respect, I see the government, if I can draw an analogy, as having a credit card when it comes to the Canadian economy and when it comes to spending on behalf of Canadians, and here is the problem. It is like that credit card is maxed out, so rather than pay it off, the government keeps on making the minimum payments. That sounds like a good plan, but eventually the minimum payment just will not cut it, so what do we do? We up our credit limit.

That is what I feel is happening when it comes to this country's finances. What happens when this country's credit limit cannot increase any more? In 10 years, the Prime Minister may be going off to another climate conference in Scotland, or he may be surfing in Tofino, but my question is this: When that credit card is maxed out, who is going to pay? The Prime Minister will likely not be in this House to recognize that, so who is going to pay? I am, and we are. The people of Canada are.

Research from my office indicates that federal interest payments alone will reach $26.9 billion in 2022-23. This is estimated to be $49.2 billion by 2026-27. That is $16 billion. My rudimentary research is that our military operates on a budget of $22 billion per year, so three-quarters of our military spending will be taken up just in the differential of interest payments between 2022 and 2026-27. That should be concerning.

We still have spent double our military expenditure in just interest in this last year, so how do we deal with this? Is it going to be a home equity tax? The government has said no, but it has to come from somewhere. Is it going to be tax on capital gains? Is the NDP-Liberal government going to go there? Will it be taxes on the middle taxes, more taxes for more spending?

Those are my concerns about this. I have more to say, but I want to make sure that I move this amendment in time.

Therefore, I move, seconded by the member for Brantford—Brant:

That the amendment be amended by adding the following:

“and that the committee report back no later than 10 sitting days following the adoption of this motion.”

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:10 p.m.


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NDP

Randall Garrison NDP Esquimalt—Saanich—Sooke, BC

Madam Speaker, the hon. member for Regina—Lewvan and others in the Conservative caucus have spoken many times about the impact of the rising costs on farmers and their opposition to the carbon tax. I would like to know why the Conservatives then have been holding up Bill C-8, which means that farmers are being held back from getting their rebates on the carbon tax.

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:10 p.m.


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Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

Madam Speaker, I would like to ask my colleague about a specific aspect of Bill C-8, and that is the tax on underused housing. Everyone agrees with the basic intent.

My first question has to do with the rate of 1%. Is that enough? We know that other places like British Columbia and France have much higher rates than that.

Other than the rate, there is also the way this tax will be applied. The federal government is once again infringing on areas of jurisdiction belonging to the provinces, and Quebec in particular. I think that this should be done in co-operation with the municipalities, rather than imposed by the great, all-knowing Ottawa. What are my colleague's thoughts on that?

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / 12:05 p.m.


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Kingston and the Islands Ontario

Liberal

Mark Gerretsen LiberalParliamentary Secretary to the Leader of the Government in the House of Commons (Senate)

Madam Speaker, I am certainly from the vintage of the Care Bear stare. I always thought the member was quite a bit younger than me and assumed that he would not even understand that reference, but he just looks great for his age, I guess.

I just do not understand the end goal here of the Conservatives. We have had speaker after speaker, more than 50 speakers, speak to Bill C-8 since report stage. The Conservatives have clearly identified some issues they have with the bill, and I get that, but does that justify doing absolutely everything humanly and procedurally possible to prevent this legislation from going forward?

Economic and Fiscal Update Implementation Act, 2021Government Orders

May 3rd, 2022 / noon


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Conservative

Warren Steinley Conservative Regina—Lewvan, SK

Madam Speaker, it has been a while. I would have finished my debate on Bill C-8, but the last time I rose, I had five minutes and we had to break for routine proceedings. It is great to get back on my feet and talk about this bill.

This bill really looks at some of the budget implementations from the economic and fiscal update in 2021. There are seven parts to this bill. A lot of it has to do with amendments to the Income Tax Act. We have had a lot of questions around the 25% income tax for school supplies and rebates for the farm fuel industry and farmers and producers across Canada, and I will get to those discussions.

However, what the Liberals are putting forward is that Conservatives are holding up this debate. I would like to outline a bit of the timeline that we have seen and the incompetence in the legislative agenda by the Liberal government, which it is trying to blame us for. The Liberals did not introduce this bill until December 15, right before the House rose for the Christmas break. My colleagues across the way will know this is factual. Then, the Liberals did not start the second reading debate until February 2. Second reading was completed a week later, on February 10. That was the week of the completion of the second reading debate.

The finance committee studied the bill for less than a month and reported the bill back on March 1, after only three meetings. The current debate on report stage started March 4. Since then, there have been four constituency weeks, when the House did not meet, and only six days of debate in this chamber. There were 34 sittings days in the House for this bill to be debated, and they are complaining that this bill has been debated for only 11 days. Once again, the government is seen not completely telling the truth to Canadians on where and how this bill has proceeded through the House of Commons and the committee stage.

I said to some of my hon. colleagues yesterday, when I was asking questions, that it has been a long time since I have heard someone be so adamant that it is the opposition's fault that the government is not getting its work done. It is the equivalent of a kid saying, “The dog ate my homework.” Just because the government does not have the capacity to get its legislative agenda through, that does not mean it is the opposition's fault. We are standing and presenting different ideas and different priorities that Canadians might have.

A lot of this debate is around making sure the refundable tax credits are given out. There is just a different philosophy on this side of the House. The member for Winnipeg North gets so excited about how he can hand out money to Canadians across the country. On this side of the House, I asked a question that a lot of the constituents in Regina—Lewvan have. The government is excited for tax return season, but Canadians do not want to have their taxes given back to them at tax season. What they would like is for the government not to take them in the first place. The government is not giving out government dollars to Canadians; it is giving back money it should not have taken in the first place.

That is the problem we see with the Liberals. They think the $500 billion they are throwing around like a drunken sailor is their money. It is not. The government does not earn a dollar. It does not raise a dollar. The only way the government gets money is by taking it from Canadians who go to work each and every day and earn that money. That is why we feel the government should be a bit more careful with Canadians' money.

I should be more careful to make sure I say that I am going to split my time with my good friend, the member for Kamloops—Thompson—Cariboo.

We are talking about how the government believes the money it is giving back is its money. It is something that we never really hear from people in Saskatchewan and in Regina—Lewvan. They always see tax season as a bit of a difficult time, because they see all the money and all the tax rebates, but the government is saying that people should be so thankful it is giving them refunds. Why take it in the first place? That is the question lots of people come to my office to ask.

Another thing is that the Liberals are like Robin Hood. They expect Canadians to kiss the ring and be grateful they are getting this money back at tax time, when they should have had it throughout the year. They should have had it when their kids needed new shoes. They should have had the money they earned when they had to buy school supplies. They should have had that money when inflation made their grocery bill $500 or $600 more each month. They should have had that money throughout the year, not just given back to them at tax time. That is something that I think the people across the way just do not understand, that all this money they continue to shovel out the door, time after time, has to come from somewhere and it is everyday Canadians who are the ones stuck paying the bill.

We have heard a lot of questions about schools and when teachers can get their rebates back. Do members know what I hear from teachers and what they are concerned about? What teachers and people in the school divisions across Saskatchewan are concerned about is the hundreds of thousands of dollars more that it is going to cost them each year to keep the classrooms warm in the winter and cool in the summer, because of the NDP-Liberals carbon tax.

In rural Canada, the cost of fuel for people to have their kids bussed to school continues to increase each and every day. That is something that hits people hard in their pocketbooks. It is basically a trickle-down effect. The municipalities and the provinces have to pay for that because of a Liberal initiative that continues to put pressure on each and every level of government. When we speak with school board trustees in the school divisions across Saskatchewan, that is one of their major concerns, and it is something they cannot control. They cannot control what the cost is going to be when they have to keep filling those buses with expensive fuel because of the Liberal carbon tax. In Saskatchewan, when it is -40°C, they have to have heat in their classrooms. What the current government continues to do, in basically each and every one of its pieces of legislation, is ensure that people in rural Canada are treated differently than everyone else across the country. The government continues to try to divide Canadians and make sure that what it is doing is seen as environmentally friendly, yet more Canadians are being left behind.

Another thing I find interesting when it comes to the economic and fiscal update in 2021 and now Bill C-8, and the government's budget as a whole in 2021, is the fact that the PBO said that of the $500 billion that was earmarked for COVID, because my colleague talked about COVID a lot in his speech, $200 billion was not even for COVID measures at all. He said it was not accounted for in COVID spending: $200 billion of the $500 billion the government spent, and said it needed to spend, on COVID basically is not accounted for whatsoever. There really needs to be more accountability when it comes to the government's legislative agenda. I think that is what the Liberals do not like. As we have seen time and again, accountability is not very high up on the government's list of priorities. Whether it be with respect to the Emergencies Act committee or the WE Charity scandal and the ethics committee, when it comes to accountability, this is definitely something where the government used to believe that sunlight was the best disinfectant, but that was long in the past.

I remember when, in 2015, the Prime Minister used to do his Care Bear stare, hand over heart, and say that the government had the backs of Canadians. With friends like the Prime Minister, Canadians truly do not need any more enemies. If this is the idea of the Prime Minister having the backs of Canadians, when 50% of them are $200 away from bankruptcy, when inflation is going to 6.7%, when the idea of owning a home in Canada for people under 30 is now a nightmare because they will never be able to do it and they will live in their parents' basement until they are 40, I think they would rather that he just take his walk in the snow and say goodbye.