Evidence of meeting #19 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Maximilian Baylor  Senior Director, Saving and Investment Section, Business Income Tax Division, Tax Policy Branch, Department of Finance
Pierre Leblanc  Director General, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Clerk of the Committee  Mr. Alexandre Roger
Pierre Mercille  Director General, Sales Tax Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
Phil King  Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Robert Ives  Senior Advisor, Sales Tax Division, Tax Policy Branch, Department of Finance
Lindsay Gwyer  Director General, Legislation, Tax Legislation Division, Tax Policy Branch, Department of Finance
Cameron MacDonald  Assistant Deputy Minister, Strategy, Integration and Data, COVID-19 Testing Secretariat, Department of Health
Galen Countryman  Director General, Federal-Provincial Relations and Social Policy Branch, Department of Finance
Anamika Mona Nandy  Executive Director, Temporary Measures and Special Projects Division, Skills and Employment Branch, Department of Employment and Social Development
Sylvain Noël  Manager, Policy Analysis and Initiatives, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development
Stephen Bent  Acting Vice-President, COVID-19 Vaccine Rollout Task Force, Public Health Agency of Canada
Ling Wang  Senior Director, Financial Programs and Strategy, Financial Services Division, Financial Sector Policy Branch, Department of Finance
Brian J. Arnold  Professor Emeritus, As an Individual
Amanjit Lidder  Senior Vice President and Partner, Tax Services, MNP LLP
Kim G. C. Moody  Chief Executive Officer, Moodys Private Client LLP
Jamie Irving  Chair, News Media Canada
Paul Deegan  President and Chief Executive Officer, News Media Canada
Gisèle Tassé-Goodman  President, Provincial Secretariat, Réseau FADOQ
Danis Prud'homme  Chief Executive Officer, Provincial Secretariat, Réseau FADOQ
Carol Anne Hilton  Chief Executive Officer, Indigenomics Institute, As an Individual

11:20 a.m.

Liberal

The Chair Liberal Peter Fonseca

We are moving now to the Bloc, with Monsieur Ste-Marie, for two and a half minutes.

11:20 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Thank you, Mr. Chair.

I'm going to begin with a comment.

Earlier Mr. MacDonald asked the officials whether the provinces had taken part in the consultation or expressed any doubts or fears over the federal government's entry into of the property tax field. The officials noted that consultations had taken place and that the provinces had not been involved.

I'd like to remind the committee that it's unusual for the provinces to take part in those kinds of consultations where the provincial governments have questions, concerns, comments or opinions relating to federal government bills. Instead the general rule in a case such as this would be to write to the minister. Such letters are obviously confidential and the sender alone can make them public. So it's absolutely normal for the provinces not to take part in consultations respecting the introduction of this property tax. That's the way it's done and no one should draw any conclusions whatever.

In my remaining time, I'd like to ask two questions concerning part 1 of the bill, which would amend the employment insurance program.

What is the estimated number of seasonal workers who would benefit from this legislative amendment?

Does the deadline for adoption of this bill play a role in all this?

11:20 a.m.

Liberal

The Chair Liberal Peter Fonseca

Which official would like to respond?

Monsieur Noël, please go ahead.

11:20 a.m.

Sylvain Noël Manager, Policy Analysis and Initiatives, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Good afternoon, my name is Sylvain Noël, and I work at the Department of Employment and Social Development.

According to our end‑of‑January estimate, approximately 17,300 individuals took advantage of the measure.

As to your second question, the royal assent date will have no effect on those who benefit from the measure. However, it will have an affect when they receive supplementary benefits since we can add weeks of supplementary benefits only once the bill has received royal assent.

11:20 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

That's very clear.

That was my final question.

Thank you.

11:20 a.m.

Liberal

The Chair Liberal Peter Fonseca

Thank you, Mr. Ste-Marie.

We are moving to the NDP, and MP Blaikie, for two and a half minutes.

11:20 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

My next questions are around the authorities for various kinds of health expenditures related to the pandemic. I'm curious to know, for example, in the case of money for a rapid test, is the idea that the federal government will be purchasing those rapid tests, and then distributing them to the provinces, or is this intended to be a direct transfer to the provinces, so that they can source and purchase their own rapid tests?

11:25 a.m.

Assistant Deputy Minister, Strategy, Integration and Data, COVID-19 Testing Secretariat, Department of Health

Cameron MacDonald

The intent here, because there is a global lack of supply for rapid tests, is for the federal government to procure, and distribute these tests to the provinces and territories. We have a small federal channel that we provide for businesses, and we also have a partnership with the Canadian Red Cross. The large majority of 85% or so are distributed to the provinces and territories, which will further redistribute them for their needs.

11:25 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Is there any kind of existing reporting obligation when that money is spent, how it is spent, and what it received in return for the funds? Is that reported out publicly anywhere, and what kinds of timeline obligations are there for that kind of reporting?

11:25 a.m.

Assistant Deputy Minister, Strategy, Integration and Data, COVID-19 Testing Secretariat, Department of Health

Cameron MacDonald

We report on the number of tests we have provided through federal and provincial channels. We also provide information on what the provinces and territories provide back to us.

As I mentioned, in January we started changing that reporting framework to look at more areas of distribution. It is available on the canada.ca website. Different parts of it are refreshed on a weekly or biweekly basis depending on when we receive data from provinces and territories.

11:25 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Okay, so that data is already collected, so if we want that tabled in Parliament at some kind of regular interval like a quarterly interval or something like that, it would be possible.

11:25 a.m.

Assistant Deputy Minister, Strategy, Integration and Data, COVID-19 Testing Secretariat, Department of Health

Cameron MacDonald

The level of tests that are disseminated and distributed to provinces and territories is available online. Yes.

11:25 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Thank you very much.

11:25 a.m.

Liberal

The Chair Liberal Peter Fonseca

We are now moving to the Conservatives, with Mr. McLean, for five minutes.

11:25 a.m.

Conservative

Greg McLean Conservative Calgary Centre, AB

Thank you again, Mr. Chair.

I'm going to go further along the lines of the housing taxes being proposed here.

Mr. Ives, you talked about the public consultations that were undertaken last summer regarding this tax measure. When were they undertaken last summer? Can you give me the exact months when they were held?

11:25 a.m.

Senior Advisor, Sales Tax Division, Tax Policy Branch, Department of Finance

Robert Ives

The consultations took place from August 6 to September 17.

11:25 a.m.

Conservative

Greg McLean Conservative Calgary Centre, AB

What else was happening at that point in time, Mr. Ives?

11:25 a.m.

Senior Advisor, Sales Tax Division, Tax Policy Branch, Department of Finance

Robert Ives

Many things were happening. I don't know if you're looking—

11:25 a.m.

Conservative

Greg McLean Conservative Calgary Centre, AB

Mr. Ives, you know what I'm speaking about. What was happening in a political sense in Canada at that point?

11:25 a.m.

Senior Advisor, Sales Tax Division, Tax Policy Branch, Department of Finance

Robert Ives

I can't comment unless—

11:25 a.m.

Conservative

Greg McLean Conservative Calgary Centre, AB

There was an election, Mr. Ives. Thank you. Oh, boy.

The second question I have is for Mr. King.

Mr. King, you spoke about part of the intent of this bill being to encourage people to put these properties on the market at 1% tax on the holding of this real estate.

One per cent tax on an asset class that has increased approximately 26% in the last year doesn't really seem like it's a disincentive to losing the property.

Would you say it's misguided to charge people 1% when they are going to be gaining 26%?

11:25 a.m.

Director General, Sales Tax Division, Tax Policy Branch, Department of Finance

Phil King

Again, the primary purpose of any tax is to raise revenues. As for the rate, that's a government policy decision.

11:25 a.m.

Conservative

Greg McLean Conservative Calgary Centre, AB

Okay, but was it misguided?

February 14th, 2022 / 11:25 a.m.

Director General, Sales Tax Division, Tax Policy Branch, Department of Finance

Phil King

I have no comment on that question.

11:25 a.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

On a point of order, Mr. Chair, I'm really troubled by the tone that my Conservative colleague is—