I apologize, Madam Chair. It's passion.
Evidence of meeting #51 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was measure.
A video is available from Parliament.
Evidence of meeting #51 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was measure.
A video is available from Parliament.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
I apologize, Madam Chair. It's passion.
Liberal
The Chair Liberal Karina Gould
Sure, absolutely.
We will continue with Mr. Garon, from the Bloc Québécois.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Let's try to calm that passion down, Madam Chair.
Good afternoon, Minister. I know it's not easy. You are looking younger every day.
You talked about the global minimum tax for businesses in your opening remarks. We know the bill enshrines pillar two in law, including the undertaxed profit rule. That said, clause 162 creates a bypass by recognizing the side-by-side safe harbour.
I would like to know where the companies that will benefit from this exception are mainly located, in which countries.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
There is obviously the American model. The Americans already have a law that has the same impact, the purpose of which is to offer a minimum tax for businesses. The G7 countries agreed to let the United States have a regime that was similar, so we accepted.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
You're exempting American companies from the Canadian minimum tax.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
No. What I'm actually saying is that, as you will recall, the G7 countries agreed to a parallel regime—
Bloc
Jean-Denis Garon Bloc Mirabel, QC
I appreciate that. I'm going to interrupt you, because I don't want your parliamentary secretary to get angry. We are equals when it comes to speaking time.
Your government has given up a lot to the Americans, especially regarding the digital services tax. Your government's environmental rules are very similar to those of the Trump administration. Environmentalists have pointed that out. There is also the question of royalties for GAFAM, the digital giants. You are being asked to backtrack on the Canadian Radio-television and Telecommunications Commission. There are setbacks in supply management through the regulatory system.
Here's my question: How is it that you agreed with the other G7 countries to exempt only American companies from Canada's minimum tax regime for multinationals? Will a single company from a country other than the United States be exempt? If so, which one?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
You are referring to the advances we have made. We stood firm. We stood up for Quebec—
Bloc
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
Then let me answer.
We stood up for Quebec, we stood up for Canada, we stood up for businesses. When we say “masters in our own house”, that means standing up, and that's what we did. That's the first thing.
The second thing is that all G7 countries agreed that the United States already had a regime in place for a long time that was substantially equivalent to the one implemented by the pillar two. It is an agreement among the G7 countries.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Minister, you're not the finance minister of all G7 countries; you are Canada's finance minister. You decided to exempt American companies, and the bill before us is Canadian.
I would like to talk about pesticides. Obviously, you are relaxing the regulatory regime on pesticides. The bill gives the Minister of Health the discretionary power to authorize certain pesticides when the regulations do not.
Your former boss, Mr. Trudeau, with whom you tried to sell us on a carbon tax during every question period, said your decisions were based on science. Do you still agree with that?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
Absolutely.
Rather, it is about the renewal of authorizations, which had to be done within a specific time frame. What we are saying is that the renewals will be done at the right time. I think you also support regulatory simplification. You are an economist. You are very aware of what we need to do to simplify things for our businesses, including the small and medium-sized businesses in Quebec.
This is in line with a simplification regime, but health and safety are always the number one priority.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Minister, all your flattery does not change the fact that you are giving the Minister of Health the special power to authorize these pesticides. There was the Driscoll's scandal this week.
Explain why the Association pour la santé publique du Québec, the ASPQ, is asking you to backtrack on this. You are a lawyer, they are scientists. Are they less familiar with that than you are?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
No.
First of all, I am very pleased that they were able to share their opinion on this.
What we are saying is that the regime will be strengthened, meaning the minister will be able to review authorizations at the appropriate time.
I think that this is also part of the regulatory simplification we are being asked to do. However, as I said, health and safety obviously come first. That is the first rule. That's where the simplification comes from.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
You want to strengthen the regime. You would agree, for example, with an amendment we would table to require Health Canada to table all the studies it has on a given pesticide before the minister makes her decision. That is what you are saying, so I imagine you are going to get the word out to your clique on the other side.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
What I am saying is the Canadian regime is a very strong one. What we are doing is giving the minister powers precisely so she can review authorizations in a timely manner. That is what I was telling you. However, as I have said many times, health and safety are the very foundation of this bill. That will not change. We can do the right things while providing regulatory relief. I know you support regulatory relief.
Jean-Denis Garon Bloc Mirabel, QC
Minister, we support health and safety. Obviously, you and I have not read the same bill.
The Parliamentary Budget Officer published a report recently on the costs of your high-speed train with Alto. According to that report, costs are underestimated by 30%.
Can you explain again why you are not allowed to answer my questions about Alto?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
I think that is a matter of public record.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
The Minister of Transportation will be here to answer all your questions.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Why? It concerns your department, after all. Why can't you answer that today, Minister?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
I think that is a matter of public record. As I said, the Minister of Transport will be able to answer all your questions.