Bill C-31

Budget 2025 Implementation Act, No. 2

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

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.

The House resumed 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. 2

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, it is with pleasure that I join the debate today on Bill C-31, part of the budget implementation act.

This budget is from November 4, 2025, so it seems a bit weird talking about a budget when we are in a different year already. Nevertheless, there are some comments I would like to get on the record about the budget.

Obviously, we cannot talk about the budget implementation act without discussing the current economic situation we have in Canada. Canada is the only G7 nation that is in a full-fledged, Liberal-led recession. How did we get here? Over the last 10 years, and I have been in the House since 2019, time and again I have seen the Liberal government bring in legislation and regulations that curtail growth and development in our energy sector. Whether it was Bill C-69 or the shipping ban off the west coast, all of these have led to less investment and development in our country. This is the actual end result of an anti-growth, antidevelopment Liberal agenda.

We see that our country has shed 112,000 jobs in the first three months of this year. That is 112,000 people who had to go home to their families and talk about how they were going to pay the bills that month. These are not just numbers but Canadians' lives we are talking about. The Liberals have an obsession with not admitting there is a problem. The first step to addressing any crisis or issue is to admit there is an issue. That has not happened with the Liberal government. It tries to keep the grand illusion time and again.

The Liberal Prime Minister is just another Liberal. He is an illusionist. It is all an illusion about what the economy looks like to him and how he wants to continue to make it appear to Canadians. As he said himself a couple of weeks ago, affordability has never been better in Canada. I have not heard from one single constituent of mine in Regina—Lewvan over the last couple of years that affordability is on the right track. The Prime Minister keeps trying to mislead Canadians by saying that.

When we go to the grocery store, which I know the Prime Minister does not, we see people grabbing things off the shelf, looking at the price and then putting them back. We see people rolling their shopping cart past the meat counters, looking at the price of meat and not buying it because they cannot afford it. That is a literal everyday occurrence for people who are trying to get by in Regina—Lewvan right now.

I want to talk about some things that are not in this budget implementation act that we now see the Liberals bringing forward. The new streaming tax was not in this budget. They did not tell Canadians they were going to tax their streaming services in the budget of November 4, 2025.

Also, the sovereign debt fund was not in the budget we are talking about. I do not know where the Liberals are going to find the billions and billions of dollars to put into the debt fund, which would put Canadians even more in debt, with larger deficits, which would then cause inflation to be even worse, especially food inflation.

Selling airports was also not in the budget last year. There was a conversation around selling off airports across Canada to keep giving out more money. I do not know who would want to purchase the airports, but I bet it is probably someone the Prime Minister knows, maybe even a company he knows quite well, possibly Brookfield. Are Brookfield airports all across Canada a possibility that the Liberals did not talk about in the budget last year?

One thing that is very close to our hearts in Saskatchewan that was definitely not in this budget is that the Snowbirds are going to be grounded. The fact that the Liberals had someone from Saskatchewan at the cabinet table who did not fight to keep the Snowbirds in the air is absolutely appalling.

They are an iconic symbol to this country and have been around for 60 years, but under the Liberals, the Snowbirds are going to be grounded until, they say, 2030. The government has never met a deadline, so I am very scared as to how long the Snowbirds will be grounded. That is something that each and every member should listen to their constituents about. I know people are reaching out and saying that this is something that should never be done. Our Snowbirds should be in the air, flying, because they are a national symbol of hope and an iconic symbol. I hope this wrong-headed decision will be reversed and we will keep our Snowbirds in the air.

I am going on to some of the other things that we have seen in the last couple of days. I just saw this, a new food bank report. After 11 years of the Prime Minister's Liberals, life has become completely unaffordable. Food Banks Canada released its latest poverty report card, warning that “Something fundamental has shifted in Canada”, after finding that one quarter of Canadians are food-insecure. Can members believe that in our country, with all of our farmland and all of our agriculture, 25% of Canadians are food-insecure?

We have the Liberals standing up here in question period. I would submit that question period is probably my most frustrating hour of the day, every day. We sit here and we ask questions about how Canadians are going to be able to afford their next meal, how Canadians are going to be able to pay for rent. Some people are employed, yet they spend 120% of their income on food and rent. Day after day, we sit here and ask questions on behalf of Canadians, and the Liberals get up and tell Canadians they have never had it so good. That is actually what they say every day.

[An hon. member]

Oh, oh!

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, a Liberal is heckling across the way, but they do say that. They think that having a grocery benefit is a good thing, but it means they are failing. It means the economy is going down the dumpster, because they have to give food stamps to Canadians. The fact that they have to give out food stamps is not a measure of success. Those guys should wake up over there. It is actually a sign of how badly they have governed this country over the last 10 years.

Another report came out, on child care. This is one of our Liberal friends' favourite comments, about child care. Do members know that a child care report came out about child care spaces in Saskatchewan? Ninety-two per cent of people say it is hard to find child care in Saskatchewan since these Liberals brought in their day care program. They promised to make 255,000 day care spaces. They have missed that. They have done only 65% of that.

In the GTA, there are fewer child care spaces now than in 2019, and there are a lot more people. That is going backwards. Before this program, there was a 5% to 7% increase in child care spaces a year in the GTA. Now, for some years, it has actually gone backwards and there are fewer child care spaces. That is what happens when they make promises they cannot commit to fulfilling.

Saskatchewan was actually called a “child care desert” because there are so few spaces right now. Saskatoon and Regina are bad, but if we go out to rural Canada, rural Saskatchewan or Alberta, there are hardly any child care spaces for anyone, especially the ones that are government-run, because they have very strict hours. The people who need child care the most, the people who work shift work, sometimes cannot find a day care because the government ones have kicked out all the private day cares that were open before and worked different hours. Now, even if people got on the list and waited two years to get into the child care program, it does not work the hours that people need it to work anyway. That is what happens when the government takes over where there are actual private sector solutions.

Just to go back to our frustration on this side, I find it very funny that the Liberals always bring up day care in their answers in question period. They talk about programs. Parents would prefer to actually feed their own kids, if they were not taxed to death and could make enough money to feed their own kids, instead of having a government program do it. They talk about the grocery benefit. They brag about giving people food stamps.

We should cut government waste, decrease taxes and let more economic engines run in this country in the energy sector. We lost $60 billion in investments in the energy sector this year.

That is why this Prime Minister is an illusion. The fact is that he is the only leader in the G7 who has led his country into a recession. He cannot blame anyone but himself. If he wants to know what the problem is with Canada right now, why we cannot get anything done and why we cannot grow, he should look in the mirror.

[John-Paul Danko, Liberal, Hamilton West—Ancaster—Dundas, ON]

Madam Speaker, it is absolutely shocking and very disappointing to hear the member opposite disparage our government's $10-a-day child care program. This is such an important program for families and for women to be involved in the workforce. Hearing Conservatives talk about private options being preferable just shows how out of touch they are.

The American president caused a global war against Iran, which is at risk of causing a global recession with the highest increase in oil prices ever. Will the member opposite criticize the American administration on the record?

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, I believe this is the House of Commons in Canada.

However, I want to go back to the member's comments about day care. The member should be ashamed of himself for his day care program, because it has created very few spots. The Liberals have actually misled Canadians, which they do all the time. We brought forward solutions at committee, actually, to make the day care program better, where people could use a voucher and pay for private sector day care or government sector day care if it works. We believe in giving people choices and not forcing them into one thing. I would love for him to go to Hamilton and see how many people are actually looking for day care spaces and cannot get them because the Liberals' program caused private ones to shut down.

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

Madam Speaker, the budget implementation bill fails to meet a number of urgent needs in Quebec, as well as elsewhere. In particular, there is the fact that the implementation did not take into account Donald Trump's imposition of tariffs on all aluminum- and steel-based products. That affects 25% of products and accounts for a significant proportion of Quebec's exports. We are proposing a wage subsidy for the most heavily affected sectors.

I would like to know what my colleague thinks about that and what the Conservatives would do in such a case.

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, we have a steel mill in Regina as well, InterPro Pipe and Steel. It employs a lot of people, so steel is very important to us.

The Prime Minister should have kept his word. He was the one who could deal with Donald Trump. He promised to get a deal done by July 1, 2025. He misled Canadians, and he cannot get the deal done, because he is all talk and no action. The biggest disappointment I have with the Liberal government is the fact that the Prime Minister misled Canadians. He said he would get a deal done with Donald Trump. He said he could handle him. He did not get any of that done.

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Madam Speaker, recently, there were 112,300 job losses in the first three months of this year alone, with 485,000 more Canadians unemployed since the member for Nepean became the Prime Minister. What is the economic impact of a Prime Minister who does not take our job losses seriously in Canada?

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, that speaks for itself. The fact is that the Prime Minister is so out of touch that he refuses to recognize that there has been a recession in Canada. To the point, the Prime Minister has not talked to anyone about a recession since Friday. He has been in hiding. He is in the witness protection program. He will not let the media ask questions. They can take some pictures of him in some meetings, but that is about it.

As I said at the outset of my comments, the first step to fixing a problem is recognizing that there is one. This Prime Minister is trying to bury his head in the sand and does not realize that he has taken Canada down the road to a recession. Among all G7 countries, Canada is the only country that is in an official recession now. The Prime Minister should open his eyes and realize that there is a problem in this country and that he has to get to work to fix the economy.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, when we want to hear something discouraging, we listen to a Conservative.

Since the Prime Minister was elected, just over a year ago, a great deal has been accomplished, and a great deal will continue to be accomplished. Whether the Conservatives want to recognize that is up to them. At the end of the day, we will continue to work for Canadians.

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, the biggest issue we have is that the Prime Minister is so out of touch. The fact that Brookfield can make 19% growth in its portfolio but Canada cannot grow its GDP shows whom he is really here for. He is here for Brookfield—

[The Assistant Deputy Speaker (Alexandra Mendès), Alexandra Mendes]

We have to resume debate.

The hon. member for Mission—Matsqui—Abbotsford.

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Madam Speaker, before I begin, I want to say that I will be sharing my time with the member for Mirabel.

Before I begin, BC School Sports hosted the high schools' rugby championships in Abbotsford last week. There were thousands of young boys and girls from across the province who competed in sevens and 15s. Our very own in Abbotsford, the Yale Lions senior girls rugby team, won the provincial championships, and the Robert Bateman Timberwolves senior boys team came in second in the province. The WJ Mouat girls, the Yale boys, and the Abbotsford senior boys all did phenomenally well.

We are blessed to have the infrastructure to host such an event in Abbotsford. It truly does lift up the profile of our local economy, and the ability to host major sporting events creates lasting memories for so many young athletes. As the member of Parliament for Mission—Matsqui—Abbotsford, I give special congratulations to all the phenomenal athletes on the Yale girls team in particular. They ran an amazing game of running rugby and totally dominated their opposition. It was just a joy to watch.

My plug is to the Secretary of State for Sport, who has $700 million to hand out to sporting organizations. On a per capita basis, Abbotsford produces more Olympic athletes in the sport of rugby and more national team players than any other community in this country. I hope to see some of those infrastructure dollars there to improve our aging recreational infrastructure.

Now to Bill C-31, a Canadian Venture Capital and Private Equity Association report found that in the first quarter of 2026, Canadian venture capital investing dropped to its lowest level in nearly a decade. Venture capital investment fell nearly 77% quarter over quarter. For every dollar of foreign direct investment coming into Canada, two dollars have left, the largest capital exodus in Canadian history.

Since the Liberals came to power, Canada has lost $1 trillion of investment, largely into the arms of our American friends. It is very unusual for Canadian businesses to go through this significant a period of negative growth as we are experiencing right now.

As we reflect on Bill C-31, why not take some actions to protect small businesses? I believe small businesses have largely been ignored by this government. Many business organizations across Canada are calling for some changes to the tax code, like the small business deduction threshold, which has been set at $500,000 since 2009. The threshold has not kept pace with inflation, rising input costs or higher interest rates. This creates a cliff effect, where growing businesses are pushed into a higher tax bracket, discouraging investment and expansion.

Business organizations have requested that the government increase the small business deduction threshold to $700,000 and index it to the CPI year after year. This would allow our truly small businesses in Canada to take advantage of the 9% tax rate and really make a difference in our economy. Let us support our small businesses.

Second, another thing the government could have done in the last year, which would have made a huge difference in the lives of our entrepreneurs, is that it could have addressed the small business GST threshold. This was created in 1991, and it is currently set at $30,000. It was originally designed to limit GST collection to large businesses. Over two decades later, the threshold value has been eroded by inflation, and more businesses are now required to register, collect and remit GST than originally intended.

I believe the government, in the last year, could have changed its policy and increased the threshold to $60,000 to reduce red tape for truly small businesses, the ones where people go to work every day and pay lots of taxes in Canada. Including these measures in Bill C-31, along with other GST/HST adjustments, would have provided SMEs with real financial relief, yet nothing has changed in the last year.

The Liberals are still looking for big headline wins, while forgetting that most people in our private sector do in fact work for small firms. They are forgetting about small businesses that do not have lawyers who can apply for complex programs. They just do not have the time to do this, because they are actually running a business. Let me give an example: the tariff rebate programs.

At a time when Canadian small businesses have faced real economic pressure because of American tariffs, the government has not come forward with meaningful support to help them. It promised that the tariff revenues would be reinvested to help the sectors hit the hardest, but that promise has simply not been met. The regional tariff response initiative was supposed to be the vehicle for that support. Instead it has become a case study in poor execution.

The Secretary of State for Small Business has consistently framed the program as accessible and supportive, but in reality it has created more red tape, cutting out local small businesses. In January this year, the National Post reported that 80% of businesses were not even aware that this program existed, and only 8% said they intended to apply. In British Columbia, seven out of 10 businesses were not even eligible for the program itself, despite paying those tariffs. CFIB president, Dan Kelly, called the regional tariff response initiative totally useless.

The challenges facing small businesses are not unique. I heard many of the concerns from business leaders across the Fraser Valley earlier this month at the Fraser Valley Economic Summit 2026 in Abbotsford, when more than 200 leaders from business, local government, indigenous communities, educational institutions and industry came together to discuss the future of our regional economy. Throughout the summit, speakers and participants spoke about the need for transportation corridors, trade-enabling infrastructure, industrial land, workforce development, housing and energy systems. They asked how Canada can improve productivity if businesses cannot access those infrastructure dollars.

The Fraser Valley is one of Canada's most important economic regions. The region is expected to grow by nearly 47% by 2050, bringing new opportunities for investment, job creation and agricultural exports in particular. Realizing that potential will require governments to focus on the practical conditions that allow communities to grow and succeed. We see this reflected across multiple sectors of the economy, including financial services.

Canada benefits from having some of the largest and most stable banks in the world. However, there remains a significant gap between the country's largest financial institutions and smaller local providers. A local example is Tru Cooperative Bank, formerly First West Credit Union, which began its federal continuance process in 2018 but did not receive final approval until 2026.

If Canada wants greater competition in financial services, we need to create the conditions for strong, Canadian-owned, mid-sized institutions to grow and to compete nationally. This is in line with the policies of every political party in Canada: free trade between our provinces, more economic exchange between Canadians. It took eight years to get federal approval for one of the most established cooperatives in British Columbia. That is not acceptable. If Canada wants greater competition in financial services, it needs to look at reducing red tape and prioritizing the private enterprises that are willing to take the risk and put up the capital to expand and offer better services to Canada.

We could say the same thing about open banking right now as well, and the same policies apply to infrastructure. The government announced, in the budget last year, the build communities strong fund as a major investment in those fields. The program does allocate $6 billion directly for regionally significant projects, including climate adaptation and flood protection infrastructure.

I implore the House of Commons not to forget Abbotsford and the Fraser Valley when they think of the allocation of that money. In my riding in the Fraser Valley, the Trans Mountain pipeline sends 37% of its oil across the flood zone into the United States. That is billions of dollars into the coffers every single year to the Government of Canada.

The recent Enbridge pipeline expansion goes right through the flood zone as well. We have a major border crossing, we have an international airport, and we have a Southern Railway line that brings billions of dollars of Canadian goods into America every year, benefiting our country, yet since the floods in 2021, we have not received any infrastructure dollars to protect one of the most important economic regions in all of Canada. Again, I ask the government to not forget about the Fraser Valley. The government needs it to accomplish its goals. Canada needs our region to build up better.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, the member talks about more trade between provinces, and he expresses some frustration. Literally within a couple of months of the Prime Minister's coming to office, the newly elected government, just over a year ago, was able to take down the national barriers; has met with the premiers and with territorial and indigenous leaders; and continues to encourage provincial jurisdictions to be able to take down provincial barriers that are in place.

I think that is something the member needs to recognize. In a federalist system, we need collaboration and co-operation. I am wondering if the member recognizes that, in that federal system, the federal government has to work with other jurisdictions. From a federal perspective, the Prime Minister has taken down those barriers. We did it in legislation just prior to last summer.