Finance Committee on June 4th, 2026

[Jasmin Guénette]

Overall, I would say yes. Whether it's the budget that came out in the fall or the update this spring, the Statistics Canada figures clearly show that entrepreneurship in Canada is on the decline.

Major projects of national interest and big infrastructure projects are positive, yes, but public policy is significantly lacking when it comes to national challenges and the solutions they call for. Small and medium-sized businesses are the key to addressing those challenges.

Small and medium-sized businesses make up 98% of all businesses in Canada and employ more than 60% of the workforce. We need policies that will help existing businesses survive and grow, policies that encourage young people and aspiring business owners. Currently, the government doesn't seem to be paying much attention to small and medium-sized businesses.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Mr. Guénette, business succession and entrepreneurship, specifically, are in trouble.

If you could add specific measures to Bill C‑30 to help turn things around in the short term, what would they be?

Can you give us a few recommendations? I know they're in your brief, but I'd like to hear them from you first-hand.

What do you and your members see as priorities?

[Jasmin Guénette]

The federal tax rate on small and medium-sized businesses should be reduced from 9% to 6%. The tax deduction limit for small businesses should be increased from $500,000 to $700,000. The threshold has been $500,000 since 2009. It's never been raised. Had it been indexed to inflation, it would be more than $700,000 today.

Our two main recommendations are to increase the tax deduction limit for small businesses and to lower the federal tax rate for small businesses from 9% to 6%.

As you know, the provincial small business tax rate varies from province to province, ranging from 1% to 2% or 2.5%. The federal rate is 9%, and there's no reason whatsoever it should be that high.

[Jean-Denis Garon, Bloc, Mirabel, QC]

I have one last question for you.

You welcomed the capital gains exemption for employee ownership trusts and workers' co-operatives.

Given your knowledge of the situation on the ground, do you think a lot of businesses are likely to take on the ownership trust or co-operative model?

[Jasmin Guénette]

I don't think it'll be the way most business owners choose to sell their business, but it's certainly a positive measure for those who want to sell. It gives them more options.

[Jean-Denis Garon, Bloc, Mirabel, QC]

The measure went somewhat unnoticed, even when the government was promoting Bill C‑30.

Do you think the federal government should promote and advertise the measure so that more people know about it?

[Jasmin Guénette]

Yes.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you.

[The Chair, Liberal, Karina Gould]

Thank you.

Thank you, Mr. Garon.

We'll continue now with Mr. Kelly for five minutes.

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

Thank you, Madam Chair.

Before I begin my questions—I don't want to take up much time, because we have such a tight schedule here—I have to get a motion on notice. I'll read it and try to get through it quickly. We'll be able to distribute it in both official languages.

The motion I am putting on notice reads as follows:

That the committee undertake a study of Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, provided that:

a) the following witnesses be invited to appear separately, for no less than one hour each:

i. the Minister of Finance and National Revenue,

ii. the Minister of Housing and Infrastructure, in relation to proposed amendments to the National Housing Act,

iii. the Minister of Jobs and Families, in relation to proposed amendments to the Canada Labour Code,

iv. the Minister of Justice and Attorney General, in relation to proposed amendments to the Canadian Human Rights Act,

v. the Minister of Health, in relation to proposed amendments to the Tobacco and Vaping Products Act and the Pest Control Products Act,

vi. the Minister of Northern and Arctic Affairs, in relation to proposed amendments to the Territorial Lands Act,

vii. the President of the Treasury Board, in relation to proposed amendments to the Access to Information Act and the Red Tape Reduction Act,

viii. the Minister of National Defence, in relation to the proposed enactment of the Defence Investment Agency Act, and amendments to the Defence Production Act, and

ix. the Minister of Transport, in relation to proposed amendments to the Canada Transportation Act;

b) the Minister of Foreign Affairs and the Secretary of State (International Development) be invited to appear for one hour, on the same panel, relating to the proposed amendments to the International Development Research Centre Act;

c) the Secretary of State (Defence Procurement) and the CEO of the Defence Investment Agency be invited to appear for one hour, on the same panel, relating to the proposed enactment of the Defence Investment Agency Act;

d) the committee receive 6 hours of additional witness testimony, including at least one panel with departmental officials for a technical briefing, another panel of Canadians affected by inflation, another panel of defence procurement experts, and other panels featuring witnesses deemed relevant by members of the committee;

e) the chair only be authorized to schedule a meeting for the purposes of clause-by clause consideration of the bill after the witnesses have appeared as prescribed by this motion; and

f) the Minister of Finance and National Revenue appear before the committee within five calendar days of the conclusion of this study, for no less than two hours, to discuss his plans for managing Canada's economy out of recession, and that he appear one time per month thereafter, as long as the Canadian economy remains in a recession.

With that now on notice, I'll turn and cede the floor to Mr. Hallan.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Thank you—

[The Chair, Liberal, Karina Gould]

Are you now beginning questioning?

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

I'm ceding the floor to Mr. Hallan.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Thank you, Madam Chair.

I want to move the motion that I put on notice last time:

That, given that Canada's economy is in recession, the Standing Committee on Finance schedule a meeting with the Minister of Finance and National Revenue one time per month, as long as the Canadian economy remains in a recession.

On Friday, we found out through Stats Canada what Canadians have been experiencing for many years under the Liberal government and that Canada is in a full-blown recession now. It's clear in the numbers that since the Prime Minister has taken office, in three out of the last four quarters, the economy has shrunk. In fact, it's the only economy in the entire G7 to do so. The Prime Minister is the only leader of any G20 country that has put a country into a recession: 120,000 jobs have been lost under this government in just the first three months of this year.

Canada also has the highest household debt and the highest housing costs. The Prime Minister has given Canadians the highest food costs and the second-highest unemployment in the entire G7.

This translates into a real-world human cost, which is seeing a record number of people in food banks. In fact, 2.2 million Canadians are visiting a food bank every single month. One in four Canadians is now food-insecure. This is the real-life result of failed Liberal policy, and we want to see the Minister of Finance and National Revenue once a month to update the House, because, as of yet, we have heard no plan from this same government that said we would get the fastest-growing economy in the G7 but ended up delivering the fastest-shrinking economy in the G7 and threw us into a recession.

We need to have a clear plan. Canadians want to know how we will get out of this recession, which was caused by the Liberal government. We want to see the Minister of Finance and National Revenue here once a month until we have a plan.

[The Chair, Liberal, Karina Gould]

Okay. Thank you.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Hallan.

Mr. Turnbull is next.

[Ryan Turnbull, Liberal, Whitby, ON]

Thanks, Chair.

It's too bad that while we're in the study of an important piece of legislation, Bill C-30, we're using up committee time with valuable witness testimony hanging in the balance. I feel sorry for our witnesses who have to sit through this.

I recognize that it's the prerogative of committee members to move motions, but I just want to say that within the study we agreed to, which was actually dictated by the Conservatives in a programming motion that we said was fair and reasonable, we agreed to a committee schedule, and it didn't include these interruptions of motions.

I'll just say that in 17 minutes from now, the Minister of Finance is appearing at this committee. We know the House is scheduled to rise on June 19. If committee members have a burning desire to ask the Minister of Finance questions about the state of the Canadian economy, they are going to have that opportunity just 17 minutes from now.

I think that's more than fair. I'm sure that in future studies on future bills.... I think we've just heard another motion put on notice that will also request the Minister of Finance to appear before this committee. The Minister of Finance is more than happy to come to the committee, but I think the motion is somewhat unreasonable, given the circumstances we face.

I could go on at length in defending the record of the government, but I'm not going to do that because I want to get back to our witnesses today.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Turnbull.

Mr. Kelly on this motion...?

Okay. We're back to our regularly scheduled programming.

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

We would have to come to a vote. The motion has been put.

[The Chair, Liberal, Karina Gould]

Is there a desire to have a vote?

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

If nobody's speaking, it goes to a vote. That's how it works.

[The Chair, Liberal, Karina Gould]

Sometimes you can pass things through unanimous consent.

Anyway, we're going to go to a vote.

(Motion negatived: nays 7; yeas 4)

[The Chair, Liberal, Karina Gould]

Mr. Kelly, you have the floor.

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

Thank you.

I do apologize to the witnesses. We have a tremendously tough schedule with many hours of meetings, and there just simply is no good time to insert some committee business. I apologize for that.

This is for the CFIB.

You really did have some troubling statistics on business closures: eight consecutive quarters of more retail closures than openings. Beyond the job losses within the sector itself, beyond the loss of these businesses and the ownership of these businesses no longer carrying on and earning a living from these businesses, what effect does the closure of retail have more broadly? We see vacant buildings. What does this do to the character of neighbourhoods and to the goods and services available to Canadians?

[Jasmin Guénette]

Obviously, small businesses are important for our local communities and for the main streets of our small cities, our villages or our larger cities as well. As you said, when a small business closes, it's the owner who is losing their business, the workers who are losing their jobs and a community that is losing a place they used to go.

As I said earlier, more than 60% of the private sector jobs are in small businesses. They're 98% of all businesses in Canada. When we see an entrepreneurial drought like we are seeing right now, it's the entire economy that is impacted. It is our main streets, and it is the entire economy. That is why we are putting so much effort into raising the issue and are sharing as often as we can our recommendations. We believe that it should be the government's priority moving forward to reverse that trend and encourage entrepreneurship.