Budget 2025 Implementation Act, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025

Sponsor

Status

In committee (House), as of June 10, 2026

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Summary

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

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) providing temporary immediate expensing for eligible manufacturing or processing buildings;
(b) delivering automatic federal benefits for lower-income individuals;
(c) expanding the anti-avoidance rule for direct trust to-trust transfers to include indirect transfers of trust property to other trusts;
(d) limiting the deferral of tax on investment income resulting from the use of tiered corporate structures with mismatched year ends;
(e) clarifying the expenses that qualify as Canadian exploration expenses;
(f) implementing the Crypto-Asset Reporting Framework;
(g) removing bankrupt corporations, trusts and partnerships from the exception to the debt forgiveness rules;
(h) introducing a supplementary rule to strengthen the tax debt anti-avoidance rule;
(i) expanding the clean hydrogen investment tax credit to include hydrogen produced from methane pyrolysis as an eligible production pathway;
(j) enhancing the efficiency and effectiveness of information gathering during tax audits;
(k) providing that no Canada Carbon Rebate payments would be made in respect of tax returns, or adjustment requests, filed after October 30, 2026;
(l) simplifying, streamlining and harmonizing the qualified investment rules; and
(m) making a number of technical amendments, including to correct inconsistencies and to better align the law with its intended policy objectives.
It also amends the Excise Tax Act , in relation to certain measures in respect of the Income Tax Act , and the Income Tax Conventions Implementation Act, 1996 , which suspends the operation of the Canada-Russia Income Tax Agreement. Finally, it amends the Air Travellers Security Charge Act , the Excise Act, 2001 and the Select Luxury Items Tax Act in relation to certain measures in respect of the Income Tax Act .
Part 2 amends the Global Minimum Tax Act to, among other things, implement the UTPR that subjects the Canadian constituent entities of certain MNE groups to top-up tax in respect of the low-taxed profits of constituent entities of those MNE groups not already subject to an IIR or qualified domestic minimum top-up tax, implement certain aspects of the administrative guidance in respect of the GloBE Model Rules approved by the Inclusive Framework and published by the OECD and implement a number of technical amendments to correct mistakes or inconsistencies and to better align that Act with its intended policy objectives. This Part also makes amendments to the Access to Information Act , the Income Tax Conventions Interpretation Act and the Tax Court of Canada Act .
Part 3 amends the Excise Tax Act , the Excise Act , the Excise Act, 2001 and other related texts to implement various measures.
Division 1 of Part 3 implements certain measures in respect of the Excise Tax Act and related texts by
(a) clarifying the tax treatment of federally regulated credit unions for Goods and Services Tax/Harmonized Sales Tax (GST/HST) purposes;
(b) extending the application of the special GST/HST rules for certain investment plans to first home savings accounts;
(c) clarifying the application of the imported supply rules to financial institutions in respect of insurance policies or loans relating to persons resident in, or property located in, Canada;
(d) clarifying the GST/HST treatment of certain services supplied by the Canadian Payments Association or any of its members as a consequence of a recent amendment to the Canadian Payments Act ;
(e) ensuring that special GST/HST rules for financial institutions apply correctly to certain small investment plans, master pension entities, insurers that issue only annuities and sureties of performance bonds;
(f) making technical corrections to the input tax credit rules respecting the change in use of property following a sale of a business and to the GST/HST rules for financial institutions relating to mergers of investment plans;
(g) ensuring that the GST/HST applies properly to Lloyd’s Insurance;
(h) clarifying, in respect of financial institutions that do business in an HST province and at least one other province, filing requirements and rules related to the recovery of embedded GST/HST amounts;
(i) providing a six-month period, following the death of an individual who is a GST/HST registrant, during which no return of the individual or their estate is required to be filed;
(j) ensuring that a GST/HST reporting election between a supplier and its agent continues to apply despite the amalgamation, merger or wind-up of either party;
(k) authorizing the Canada Revenue Agency to share information with international tax authorities with which Canada has an information-sharing agreement, in a manner consistent with the Income Tax Act ; and
(l) making a number of technical amendments to correct inconsistencies and to better align the law with its intended policy objectives.
Division 2 of Part 3 implements certain measures in respect of the Excise Act , the Excise Act, 2001 and other related texts by
(a) making technical corrections in respect of the computation of the additional excise duty on cigars and the computation of negative amounts generated by statutory formulas;
(b) clarifying the tax treatment of certain cannabis and vaping products that are unaccounted for or that are taken for use;
(c) implementing a new limit in respect of packaged raw leaf tobacco for importation for personal use and making consequential amendments to ensure the proper enforcement of the new limit;
(d) allowing the Canada Revenue Agency to consider and grant relief to brewers in certain circumstances;
(e) extending the maximum validity period for certain licences from two years to three years; and
(f) authorizing the Canada Revenue Agency to share information with international tax authorities with which Canada has an information-sharing agreement, in a manner consistent with the Income Tax Act .
Part 4 enacts an Act and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to prohibit financial institutions from issuing documents in bearer form and provide for the replacement of documents that are currently in bearer form.
Division 2 of Part 4 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to provide that no action lies against His Majesty in right of Canada and federal government officials for any acts or omissions made in good faith under those Acts.
Division 3 of Part 4 amends the Bank Act to require an institution to offer or sell deposit products in a non-discriminatory manner in certain circumstances.
Division 4 of Part 4 amends the Financial Administration Act to provide the Governor in Council with authority to make regulations with respect to the conditions under which contracts may be entered into by His Majesty or a Crown corporation. The Division also amends the Department of Public Works and Government Services Act to provide the Governor in Council with authority to make regulations respecting the complaints that may be reviewed by the Procurement Ombudsman and the persons who may file a complaint. The Division also makes a related amendment to the National Capital Act .
Division 5 of Part 4 increases the maximum amounts for accessing the Tax Court of Canada’s informal procedure for appeals under the Income Tax Act and Part IX of the Excise Tax Act .
Division 6 of Part 4 amends Schedule II to the Access to Information Act to prohibit the disclosure of confidential information obtained under the Retail Payment Activities Act or prepared from information obtained under that Act.
Division 7 of Part 4 amends the National Housing Act to increase the total of Canada Mortgage and Housing Corporation outstanding guarantees that are in force. The Division also amends the Protection of Residential Mortgage or Hypothecary Insurance Act to increase the limit for loans that are insured under that Act.
Division 8 of Part 4 amends the Bankruptcy and Insolvency Act to provide the Superintendent of Bankruptcy with the power to request various orders from the court if an unlicensed person acts or represents itself as a licensed trustee, and if a person solicits from another person insolvency filings under that Act or makes representations that are false or misleading in a material respect in relation to bankruptcy and insolvency. The Division also increases the maximum fines for certain offences under that Act.
Division 9 of Part 4 amends the Canada Labour Code to, among other things, prohibit non-compete clauses and other employment-related restrictions, except in certain circumstances.
Division 10 of Part 4 amends the Canadian Human Rights Act to eliminate the position of Deputy Chief Commissioner of the Canadian Human Rights Commission and to provide that the person holding that office is deemed to have been appointed as Chief Commissioner.
Division 11 of Part 4 amends the International Development Research Centre Act to, among other things, reduce the number of members of the Board of Governors of the International Development Research Centre from 14 to 12.
Division 12 of Part 4 amends the Tobacco and Vaping Products Act to provide that a review of the provisions and operation of that Act must be undertaken within five years after the report on the previous review has been tabled in both Houses of Parliament rather than every two years and to specify the period within which the report on the review must be tabled.
Division 13 of Part 4 amends the Pest Control Products Act to replace the mandatory re-evaluation of registered pest control products with a requirement for the Minister of Health to initiate a re-evaluation if, after carrying out an assessment, that Minister has reasonable grounds to believe that the health or environmental risks of a product have increased significantly.
Division 14 of Part 4 amends the Territorial Lands Act to, among other things,
(a) empower the Governor in Council, if the Governor in Council is of the opinion that it is in the national interest, to make orders
(i) to take certain measures with respect to certain lands in Nunavut, including to cancel licences to prospect, the recording of claims or leases of recorded claims or to provide that claims are not to be recorded, that leases of recorded claims are not to be issued or that licences to prospect or leases of recorded claims are not to be renewed, and
(ii) to provide for prohibitions associated with those measures for the persons that are the subject of the orders, including prohibiting the making of an application for a licence to prospect, to record a claim or to lease a recorded claim;
(b) provide that the Minister of Northern Affairs may determine whether compensation is to be paid to certain mineral rights holders that are the subject of the orders referred to in paragraph (a) and, if so, the amount; and
(c) empower the Governor in Council to make regulations respecting the implementation of the orders referred to in paragraph (a) and the compensation referred to in paragraph (b).
Division 15 of Part 4 amends the Red Tape Reduction Act to, among other things, ensure that the provisions of the Official Languages Act , or the provisions of an instrument made under that Act, cannot be the subject of an exemption under Part 2 of the Red Tape Reduction Act .
Division 16 of Part 4 contains measures relating to procurement, production and investment in respect of national defence and national security.
Subdivision A of Division 16 enacts the Defence Investment Agency Act . That Act establishes the Defence Investment Agency, whose mandate is to assist the Minister who presides over that Agency in the exercise of the Minister’s powers and performance of the Minister’s duties and functions relating to production, procurement and investment in respect of national defence or national security. That Act also provides for certain other powers, duties and functions of that Minister. Subdivision A also makes related and consequential amendments to other Acts.
Subdivision B of Division 16 amends the Defence Production Act to, among other things,
(a) extend the application of that Act to supplies and projects related to national security and to services related to national defence and national security;
(b) provide that the Minister who presides over the Defence Investment Agency has exclusive authority to acquire supplies and services related to national defence and national security that are required for the purposes of a department, board or agency of the Government of Canada, subject to certain exceptions;
(c) extend the purposes for which that Minister may engage in stockpiling to include national defence and national security, including economic security, and the defence and security of an associated government or other state;
(d) provide that Minister with new financial authorities, including the authority to enter into financial transactions for the purpose of investment in national defence and national security sectors; and
(e) establish procurement rules in relation to national defence and national security.
Subdivision B also makes consequential amendments and terminology changes to certain legislative texts.
Division 17 of Part 4 amends the Canada Transportation Act to, among other things,
(a) authorize the Governor in Council to choose to have the backlog of air travel complaints resolved by third parties engaged by the Minister of Transport or the Canadian Transportation Agency;
(b) transfer responsibility for the resolution of air travel complaints from the Canadian Transportation Agency to the Minister of Transport;
(c) authorize the Governor in Council to choose to have future air travel complaints resolved by third parties approved by the Minister of Transport;
(d) transfer authority to make regulations respecting air passenger rights from the Canadian Transportation Agency to the Minister of Transport;
(e) remove mandatory confidentiality requirements regarding air travel complaints; and
(f) increase the maximum administrative penalty payable by corporations for certain violations of the Canada Transportation Act or its regulations.

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-31s:

C-31 (2022) Law Cost of Living Relief Act, No. 2 (Targeted Support for Households)
C-31 (2021) Reducing Barriers to Reintegration Act
C-31 (2016) Law Canada-Ukraine Free Trade Agreement Implementation Act
C-31 (2014) Law Economic Action Plan 2014 Act, No. 1

Votes

June 3, 2026 Passed 2nd reading of Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025 (all remaining provisions of the bill)
June 3, 2026 Passed 2nd reading of Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025 (Part 4, Division 17, that is clauses 339 to 364 of the bill)
June 3, 2026 Failed 2nd reading of Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025 (reasoned amendment)
June 1, 2026 Passed Time allocation for Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-31 is a complex budget implementation act that establishes a new Defence Investment Agency to streamline military procurement, amends the Pest Control Products Act, and implements various fiscal measures. Opposition parties have criticized the bill as an omnibus measure that lacks transparency and accountability.

Liberal

  • Strengthening the national economy: The party prioritizes a one Canadian economy approach by removing interprovincial barriers, diversifying global trade markets, and establishing a sovereign wealth fund to drive major infrastructure investments across all regions of Canada.
  • Modernizing defence procurement: Bill C-31 proposes a stand-alone Defence Investment Agency to streamline equipment delivery for the Armed Forces, meet NATO spending benchmarks, and leverage procurement to support Canadian manufacturing and technological innovation.
  • Protecting Northern sovereignty: Amendments to the Territorial Lands Act give the government tools to safeguard mineral rights in the national interest, ensuring responsible resource development and deeper economic partnerships with Inuit and Northern communities.
  • Addressing affordability and housing: The legislation includes measures to lower the cost of living and accelerate housing construction, particularly near transit hubs, while maintaining robust social programs for seniors, women, and vulnerable populations.

Conservative

  • Address the economic recession: Conservatives argue the bill fails to address the current recession or reduce wasteful government spending, which fuels inflation and contributes to record-high food bank usage across Canada.
  • Reform defence procurement oversight: Members oppose Division 16, asserting it creates a bureaucratic Defence Investment Agency with broad, unaccountable spending powers and potential for patronage instead of addressing the military's actual operational needs.
  • Provide tax and housing relief: The party calls for eliminating federal fuel taxes and removing the GST from new home construction to combat the cost-of-living crisis and encourage housing development.
  • Oppose omnibus legislative tactics: Conservatives criticize the bill’s omnibus nature, arguing that substantive changes to defence procurement and transportation require separate legislation to ensure proper parliamentary scrutiny and accountability.

NDP

  • Tax corporate excess profits: The NDP criticizes the government for prioritizing corporate subsidies over families and calls for an excess profit tax on grocery and oil companies to fund public services and help Canadians manage rising costs.
  • Enforce the Canada Health Act: The party demands federal enforcement of the Canada Health Act against healthcare privatization and calls for full commitment to universal pharmacare, integrated mental health care, and expanded dental care for all Canadians.
  • Oppose international development cuts: Heather McPherson rejects the $2.7-billion cut to international development assistance, asserting that Canada is retreating from its responsibility to lead in peacekeeping and diplomacy during a period of global economic instability.
  • Address structural affordability issues: The party argues that temporary rebates fail to solve underlying economic insecurity, advocating for a focus on structural changes including large-scale housing projects and investments directly in people rather than shareholders.

Bloc

  • Lack of transparency and consultation: The Bloc opposes the bill and the government's use of closure motions, arguing that the Liberals have abandoned meaningful consultation with opposition parties and are rushing the massive bill through without proper technical briefings.
  • Fails to address Quebec's priorities: Members critize the legislation for failing to address the tariff crisis affecting Quebec's SMEs, the forestry industry's needs, and the provincial government's requests for funding regarding asylum seekers and stolen election funds.
  • Opposes oil industry subsidies: The party rejects the bill's expansion of subsidies to the oil and gas industry and criticized the classification of methane-derived hydrogen as clean, arguing these measures contradict environmental priorities and waste billions in potential revenue.
  • Concerns about passenger protection: The Bloc expresses concern that the bill reduces government accountability by allowing private firms to handle air traveller complaints, potentially leaving passengers at the mercy of companies selected by the airlines themselves.

Green

  • Restricted parliamentary debate: The Green Party opposes the frequent use of time allocation and gag orders on massive omnibus bills, arguing it prevents the necessary scrutiny and debate required for substantial legislation.
  • Weakening pesticide oversight: Elizabeth May criticizes changes to the Pest Control Products Act that replace mandatory 15-year cyclical re-evaluations with discretionary assessments, arguing this shift undermines science-based protections for human health and the environment.
  • Prioritizing economics over health: The party expresses concern that new provisions allow cabinet to override scientific health and safety decisions regarding dangerous pesticides based on economic interests, potentially compromising national safety for commercial gains.
Was this summary helpful and accurate?

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:10 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I really welcome that question. Unfortunately, because of time constraints, I was not able to bring that into my comments.

We have a fabulous program for the Red Seals. The Red Seal program is literally dozens of skilled trades that are recognized across our nation, and we have made a commitment to support Red Seal certificates. It is about $5,000 for people who actually complete the program. We are talking about anywhere from 80,000 to 100,000 new Red Seal skilled workers. That is tangible. It is real. That is what is going to help build Canada well into the future. It is investing in young people. It is investing in the skills of the future that we need in order to continue that building.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:10 p.m.

Liberal

Terry Beech Liberal Burnaby North—Seymour, BC

Mr. Speaker, as we all know, our friend does not get enough time to talk in the chamber, so I have arranged for a literal “choose your own adventure” question, remarking both on his speech and also on his previous answers.

On affordability, I know for a fact how much dental care, child care and the national school food program have helped constituents in my riding of Burnaby North—Seymour. On defence, the member talked about how we went from less than 1% in the Harper days to more than 2%, but he did not talk about how the economy has grown, so it sounds like we doubled the spending, but we more than doubled it. With regard to the Conservatives' saying that we are antidevelopment, we are actually at a stage where there is record bitumen production in Alberta, record royalties and record corporate profit.

On any of those three areas that the member would like to talk about, I would like to hear his ideas.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:15 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, my colleague and friend has actually articulated exceptionally well, within a very short time allocation, some very important issues.

If there is something I would like to just re-amplify, something I am very passionate about, it is Canada's national health program. I believe it is a part of our identity. It helps identify who we are as Canadians. I am very proud of the fact that this is an area in which we continue to work and to look at ways we could potentially not only preserve but grow. I want to be a part of a government that sees the value of a national health care system.

At the end of the day, it is about working with provinces, trying to get a higher sense of co-operation so we have a universal health care system based on the five fundamental principles of health care, enacted here in Ottawa. So that it does not matter where people choose to live in Canada, and I believe in the mobility of Canadians to go wherever they like in Canada, it is important that we have a health care system that is similar in all regions.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:15 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Mr. Speaker, as we talk about the situation of the economy, one thing I often hear from young people is about how difficult it is right now for young people to start out in life.

Youth unemployment is extremely high, at 14.3%, and we have very low workforce participation as well. Homes are extremely expensive. All these challenges make it more difficult for young people to start out, to start a family and to start to have children. We see this showing up in the numbers. People are having far fewer kids than they tell pollsters they want to have, because of these pressures.

Meanwhile, the Liberal government is cutting funding for students attending vocational programs. Will the government reverse its removal of grants to students studying in vocational programs?

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:15 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the youth unemployment rate is at around 14.3% today. In 2012, when I was in opposition, it was at 14.3%. Therefore, it is roughly the same, if not the same.

What I will tell the member is that we are not going to cut summer youth jobs programs, because that is one of the ways young people are gaining expertise, contacts and so much more, so they will in fact have better opportunities for employment.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:15 p.m.

Conservative

Tamara Kronis Conservative Nanaimo—Ladysmith, BC

Mr. Speaker, I will be splitting my time with the hon. member for Sherwood Park—Fort Saskatchewan.

The Prime Minister has spent much of the last year arguing that Canada faces a more dangerous, more competitive and less forgiving world. He is absolutely right. Trade relationships are more fragile, supply chains have become matters of national security, and energy, minerals, data, defence production and industrial capacity are no longer simply economic assets but have become instruments of sovereignty. Few serious observers would deny that Canada faces a more demanding world than the one we recognized a decade ago.

The question before Parliament, however, is whether Bill C-31 reflects the seriousness of that diagnosis. A serious country must be able to build. It must be able to defend itself, educate and train its people, approve projects, mobilize capital, protect consumers and make decisions that endure beyond a single news cycle. The Prime Minister has framed this moment as one that requires ambition, discipline and state capacity. I agree with that premise. What I question is whether Bill C-31 would advance it.

If the challenge is state capacity, the answer cannot simply be layers of state complexity. If the goal is economic sovereignty, the answer cannot be legislation that gestures in many directions while avoiding difficult choices. Bill C-31 is more than 330 pages long. It would amend tax law, financial law, labour law, transportation law and defence procurement law. It would touch housing finance, automatic benefit delivery, crypto asset reporting, the clean hydrogen tax credit, non-compete clauses, air passenger complaints and a defence investment agency, to name just some of the topics.

Some of the measures may be worthwhile. Some deserve support. Others deserve amendment. The problem is that Parliament is being asked to evaluate them all at once. The government will argue that time is short, and it is going to pressure us to pass the bill before the summer recess. A lack of planning on its part should not be and should not necessitate an emergency for all of us.

Major reforms to defence procurement deserve their own legislation and committee study, as so many of my colleagues have explained today. Lord knows, air passenger rights deserve their own scrutiny. Significant tax reforms need to be thought through. Instead, they are being bundled together in an omnibus bill that makes serious examination more difficult.

We have already seen how sloppy Liberal drafting has unintended consequences through a number of other bills that have come before the House and that, we have learned, have significantly impinged upon Canadian freedom. Parliamentary scrutiny is one of the institutions that makes good government possible. A government confident in its reforms should welcome rigorous examination rather than continuously dilute it.

The most revealing aspect of Bill C-31 may be what it does not contain. On April 27, the Prime Minister announced the Canada Strong fund, describing it as Canada's first national sovereign wealth fund. It was presented as a cornerstone of economic sovereignty and nation building. Canadians were told it would help mobilize capital for strategic projects that are so desperately needed and give future generations a stake in national prosperity. A sovereign wealth fund can be a powerful instrument of public policy. It can also become an expensive political investment vehicle if its governance is weak. The difference lies in the design, and the devil, as they say, is in the details.

There is no statutory framework in Bill C-31 for the Canada Strong fund, no explanation of how it will operate or how Parliament will oversee it. More than a month after its announcement, all we have is a short government backgrounder promising yet another office with yet another CEO and consultations to determine, over the next several months, what the fund will eventually become. That omission matters because it reveals a broader disconnect between the government's rhetoric and announcements and its implementation.

The same pattern applies to its skills training. The government has repeatedly argued that Canada's future prosperity depends on building the most skilled workforce in the world, and it does.

It has spoken about the training that workers need to build homes, develop critical minerals, expand advanced manufacturing and strengthen defence production. The diagnosis is correct, yet the legislative response is remarkably thin. Bill C-31 contains measures related to labour mobility and employment. Those may be useful, but they do not amount to a national skills strategy. They do not explain how Canada will train workers at the scale required, accelerate credential recognition, strengthen apprenticeship and completion rates or address the labour shortages already delaying major projects across the country.

The government's language is national. It is big, and it is ambitious. The legislative response is partial. This pattern extends to the economy more broadly. Bill C-31 contains investment incentives, tax changes and reporting requirements. Some may improve the functioning of the tax system, but none constitutes a serious productivity agenda, and productivity is the quiet crisis beneath the politics of affordability.

We learned this morning that Canada has quietly slipped into a recession, with two consecutive quarters of shrinkage. If Canada produces less per worker than its competitors, wages stagnate. When wages stagnate, affordability deteriorates. Governments can soften the consequences through transfers, credits and subsidies. They can send all the cheques they want, but they cannot permanently compensate for weak productivity, and the spending has consequences at the grocery store and everywhere else in our economy as things continue to get more expensive. That is because prosperity must be created before it can be distributed.

The same concern arises with the Defence Investment Agency. Canada unquestionably needs procurement reform. Our armed forces require equipment, readiness and capability. In a more dangerous world, faster procurement is not just a bureaucratic preference but a strategic necessity, yet speed is not competence. National security is not an area for weak accountability. The Defence Investment Agency may prove useful. It may not. Parliament has not yet been given sufficient evidence to determine which outcome is more likely. What is clear is that such significant reform deserves its own legislation and its own committee study. It should be examined by the defence committee with witnesses who understand defence procurement, military readiness, industry and national security. It should not be one division in a big budget bill competing for attention with tax rules, air passenger complaints and labour measures.

The central question here is not whether Canada should move faster. The question is whether this structure will make us faster or merely more complicated. A ship that cannot sail does not defend sovereignty. An aircraft that cannot fly does not secure the Arctic. A procurement system that produces announcements faster than equipment does not serve the Canadian Armed Forces. State capacity is not measured by the number of institutions government creates. It is measured by the ability of its institutions to deliver.

The air passenger rights provisions raise a similar concern. The current system is clearly failing Canadians. Complaint backlogs are unacceptable. Delays are excessive. Compensation is often very difficult to obtain. However, consumer protection is not achieved by announcing rights. It is achieved when ordinary people can enforce those rights without needing a lawyer, a media campaign, an MP or two years of patience. That observation applies far beyond air travel.

Capability is not centralization for its own sake. It is not ministerial discretion without accountability. It is not omnibus legislation without scrutiny, and it is not the appearance of motion while standing still.

The Prime Minister often speaks about resilience, sovereignty and national purpose. At a time when Canadians are carrying the burdens of housing scarcity, weak productivity, affordability pressures and global uncertainty, we should insist on something better. We should insist on competence, accountability and results.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:25 p.m.

Conservative

Dan Albas Conservative Okanagan Lake West—South Kelowna, BC

Mr. Speaker, I want to thank the member for Nanaimo—Ladysmith for standing up in this House on the very important topic of air passenger protection regulations and the government's absolute mess of it.

The member mentioned that we are in a recession and the economy is contracting. What is not contracting? It is the backlog of the CTA. It has around 97,000, perhaps even 100,000 cases in backlog. That means people are waiting three years to have someone hear their case. Instead of the government fixing the system and simplifying the rules, it provided $75 million over three years to make the CTA process faster, and by this particular provision in the bill that she mentions, it shows that it has been a complete disaster.

Could the member please let us know if she thinks that this is the best use of her constituents' money in this bill and by the government?

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:25 p.m.

Conservative

Tamara Kronis Conservative Nanaimo—Ladysmith, BC

Mr. Speaker, a central problem with tribunal systems, and I have had experience with them, is they are intended to make life simpler for Canadians. They are intended to be a process that is outside the court. However, as anyone who has dealt with any of these tribunals knows, people inevitably need a lawyer and inevitably need to navigate all kinds of complicated case law.

If the government is serious about making life simpler for Canadians, it will clear these backlogs and provide redress in a faster, more efficient way, because the longer these cases sit in tribunal systems, the more paper they accumulate and the more complicated they get.

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:25 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, the member referred to the labour issue and skills. The Red Seal program is going to see up to 100,000 young Canadians and others who will be able to get that Red Seal certificate through a program of this nature where we are helping.

Does the member support the program?

Budget 2025 Implementation Act, No. 2Government Orders

May 29th, 2026 / 1:30 p.m.

The Deputy Speaker Tom Kmiec

It being 1:30 p.m., the House will now proceed to the consideration of Private Members' Business as listed on today's Order Paper.

The House resumed from May 29 consideration of the motion that Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, be read the second time and referred to a committee, and of the amendment.

Budget 2025 Implementation Act, No. 2Government Orders

June 1st, 2026 / 1:25 p.m.

Conservative

Tamara Kronis Conservative Nanaimo—Ladysmith, BC

Madam Speaker, the member opposite asked about the Red Seal program, which, I would note, was brought in by a Conservative prime minister, John Diefenbaker, who brought the provinces together to recognize credentials across Canada, which is, of course, something that the Liberal government is currently having some trouble with around being able to ship wine across provincial borders.

Frankly, we had proposed expanding the Red Seal program to include a blue seal program so we could get medical personnel and health care workers out of taxis and into positions where they could serve Canadians. I would say that, of course, we support the expansion of the Red Seal program to also include a blue seal program.

Budget 2025 Implementation Act, No. 2Government Orders

June 1st, 2026 / 1:25 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, it is important for us to recognize that within the budget, we actually have an allocation to support Canada's Red Seal program. We are talking about anywhere from 80,000 to 100,000 new Red Seal workers and skilled jobs, good quality jobs.

The Conservative Party has not been clear on whether or not they will even support it. They appear to be in opposition even to that measure. I am wondering if the member can be precise and indicate that she will support that program by supporting the budget.

Budget 2025 Implementation Act, No. 2Government Orders

June 1st, 2026 / 1:30 p.m.

Conservative

Tamara Kronis Conservative Nanaimo—Ladysmith, BC

Madam Speaker, of course, we support the Red Seal program. The issue is that it is one thing buried in a 330‑page bill that we have only had three and a half hours to debate, and which this government has just tried to shut down further debate on.

The challenge is that we have already seen bills come through with sloppy drafting that infringe on the rights of Canadians. Unfortunately, we have to take the bill as a whole. I would also note that while the bill has provisions for a Red Seal program, it is not expanded to a blue seal program that would allow professionals to get into positions where they could practise their professions in Canada.

Budget 2025 Implementation Act, No. 2Government Orders

June 1st, 2026 / 1:30 p.m.

Conservative

Pat Kelly Conservative Calgary Crowfoot, AB

Madam Speaker, if there is only a minute left, I wanted the member to have the time, if she has something further to add to the previous intervention or anything that was missed so far.