Evidence of meeting #53 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cra.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

Roe  Lawyer and Program Director, Healthy Communities, Ecojustice Canada
MacKenzie  Director, Public Affairs, Advocacy and Strategic Communications, March of Dimes Canada
Khanna  Vice-President, Government Relations and Public Policy, United Way Centraide Canada
Lefebvre  Richmond—Arthabaska—des-Sources, CPC
Stapleton  Principal, Open Policy, As an Individual
Toor  Vice-President, Public Affairs, Mortgage Professionals Canada
Drobina  Vice-Chair, Tax and Incentives Committee, National Apartment Council
Priori  Coordinator, Pesticide Victims of Quebec, Association pour la santé publique du Québec
Batstone  President and Chief Executive Officer, FP Canada
Gratton  President and Chief Executive Officer, Mining Association of Canada
Fair  Vice-President, Strategy and Development, Prosper Canada
MacLennan  National Head, Policy and Government Relations, FP Canada

Noon

Vice-President, Public Affairs, Mortgage Professionals Canada

Jasmine Toor

I saw a report that counters some of the evidence that you've brought forward. Banks are actually increasingly confident in investing in real estate projects in British Columbia, in Vancouver specifically, versus Toronto. Some of those things have a lot to do with which parts of the country are most impacted by tariffs as well, so—

Noon

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Can I go to the next question?

When you previously appeared, you identified “taxes”, “red tape” and insufficient housing supply as major contributors to unaffordable housing. Have those underlying problems improved significantly under the Liberals' new plan to build at speeds not seen in generations?

Noon

Vice-President, Public Affairs, Mortgage Professionals Canada

Jasmine Toor

The GST relief has really been meaningful. There are other things that the government is working on. Obviously, we position ourselves as a partner with government to help move the policy needle. I think in one year, there has been quite demonstrable progress and—

Noon

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Thank you. That is what I was asking.

We're hearing about billions more in financing capacity, yet we're watching new ownership housing constructions decline. Would you agree that we should measure the success of government housing policies by homes actually completed and by what families can afford rather than by how much additional financing the government announces?

Noon

Vice-President, Public Affairs, Mortgage Professionals Canada

Jasmine Toor

I think these are very complex issues, and I would be reluctant to diminish them into very binary arguments.

Tamara Jansen Conservative Cloverdale—Langley City, BC

Shouldn't we check on how many houses are being built? Wouldn't that be a helpful way of seeing whether housing is actually being built?

Noon

Liberal

The Chair Liberal Karina Gould

Thank you, Ms. Jansen. That concludes your time.

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

Noon

Liberal

Ryan Turnbull Liberal Whitby, ON

I want to say thanks to all the witnesses.

Mr. Stapleton, I have some questions for you.

Before I start, I want to acknowledge your 28 years' worth of service to the Ontario government. About 20 years ago, I got to sit in a meeting with you when you were part of a panel that was reviewing Ontario's social assistance program. We talked about “million dollar Murray” and “zero dollar Linda” in a case study you had done. It was quite brilliant work.

I want to say thank you for your many years of service and all the work you've done with the Metcalf Foundation and others. I want to pay my respects to you for a great career and lots of contributions. I really respect your point of view.

Now that I've buttered you up, I want to disagree with you.

Voices

Oh, oh!

Noon

Liberal

Ryan Turnbull Liberal Whitby, ON

I'm just joking.

I got your point at the outset that in some ways, the people with the most interest in making a simple tax filing are often the ones who don't or can't file. Those who owe taxes to the government are the ones who more often than not actually file, so it's a bit of a conundrum.

I empathize with that position. In some ways, the intention of the government is to try to take on some of the responsibility that would normally fall on individuals when filing their taxes, in order to open a gateway so they can access the benefits they're entitled to. I just want you to be aware—because from some of your remarks, I felt you might not be fully aware of this—that part of what we implemented with budget 2025 were prepopulated tax returns in the My Account portal for one million Canadians. That starts this year, for 2026, and it will continue year over year. It ensures that the review, confirmation and submission of those returns is done by those Canadians in the My Account portal. The plan is to ramp that up to 5.5 million Canadians by the 2028 tax year. That's similar to what you were describing in other jurisdictions, and I think it is progress.

The initiative we're talking about today is part of BIA number two. We're talking about the deemed filings or the automated tax benefits. The way this is designed seems to limit, in my view, the chance of having a lot of errors, and I'll say why I believe that. First, you have to be below the personal income tax amount. Second, you need to have income from third party reported sources—T4, CPP, QPP, OAS, GIS or social assistance. Third, you would not have filed for the last three years and didn't file for the current year. After 45 days, the government would essentially compile that information and produce a simple tax filing.

There have been concerns raised at this committee by some of the opposition members. You also raised who is responsible for errors. I think the way it's been designed is going to limit the possibility of errors. I want to see whether you agree with me on that.

12:05 p.m.

Principal, Open Policy, As an Individual

John Stapleton

I agree 100% on that. We're talking about very low-income people.

You start getting into areas where there are more errors and the possibility of mistaken or fraudulent returns at higher income levels. We're talking about somebody putting in a phony charitable amount, for example. A low-income person can't benefit from a non-refundable credit because they don't make enough money to pay taxes.

The same is true for all the different types of deductions. For example, there are deductions somebody could get for child care or for putting money into an RRSP—there was an overcontribution or an incorrect contribution. If you're a low-income person, you don't get any money back because you don't pay tax in the first place. The same is true for the long series of non-refundable credits.

I agree with you completely on that point.

Ryan Turnbull Liberal Whitby, ON

That's great. That reassures us a bit.

You mentioned—it is included in my notes—that marital status is one question that needs to be confirmed in order to figure out the benefit level that Canadians are entitled to. Even with those very simple....

Am I out of time, Madam Chair?

The Chair Liberal Karina Gould

Yes.

Ryan Turnbull Liberal Whitby, ON

Wow, that went fast.

I'm sorry, Mr. Stapleton. I guess I'm cut off.

The Chair Liberal Karina Gould

Thank you, Mr. Turnbull.

On behalf of the committee, I would like to thank all three of our witnesses for their time and contributions.

With that, we'll take a brief suspension while we turn over for our final panel of today. Thanks.

The Chair Liberal Karina Gould

Colleagues, we will get started for our final hour today.

I would like to take a minute to welcome our witnesses. We have a lot, but they're doubled up, so it's not like we're going to have 40 minutes of opening remarks.

From the Association pour la santé publique du Québec, we have Marianne Dessureault, director, legal affairs; and Pascal Priori, coordinator, pesticide victims of Quebec. From FP Canada, we have Tashia Batstone, president and CEO; and Craig MacLennan, national head of policy and government relations. From the Mining Association of Canada, we have Pierre Gratton, president and CEO; and Photinie Koutsavlis, vice-president, economic affairs and climate change. Finally, from Prosper Canada, we have Adam Fair, vice-president, strategy and development.

I'd like to take a moment to remind participants of a few points.

Please wait until I recognize you by name before you speak. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you're not speaking. For those on Zoom, at the bottom of your screen, you may select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

I would like to remind participants and witnesses that committee members may ask questions in either English or French. Please have your earpiece on if you require translation so that we can move as smoothly as possible. I will remind you that all comments should be addressed through the chair.

With that, we will begin.

We'll start with the Association pour la santé publique du Québec. Mr. Priori, you have five minutes.

Pascal Priori Coordinator, Pesticide Victims of Quebec, Association pour la santé publique du Québec

Good afternoon.

Madam Chair and esteemed members of the committee, thank you for welcoming us today.

My name is Pascal Priori. I coordinate Victimes des pesticides du Québec, an initiative for pesticide victims by the Association pour la santé publique du Québec, or ASPQ. I am accompanied by Marianne Dessureault, director of legal affairs.

The ASPQ has been making preventive health care a priority for over 80 years. The coalition of pesticide victims that we represent brings together people who are ill and a dozen organizations, including Myeloma Canada, Parkinson Québec and the Leukemia & Lymphoma Society of Canada.

Every year, we are supporting more and more sick farmers. Very solid scientific data demonstrates strong links between pesticide use and serious illnesses such as birth defects, Parkinson's disease, blood cancers, prostate cancers and respiratory diseases. Since 2021, Quebec has officially recognized Parkinson's disease as an occupational illness linked to pesticides.

The changes proposed in division 13 of part 4 of Bill C‑31 weaken the pesticide regulatory framework, even though it needs to be strengthened to protect public health. Like Canada's leading scientists working on pesticides have written to you, we ask that you remove this division from Bill C‑31. Failing that, we ask that you amend it by defining the assessment and the trigger threshold, publishing all the data and conclusions related to the assessments, prioritizing independent data and maintaining mandatory re-evaluation for highly hazardous pesticides.

These legislative proposals are part of a specific context. Canadian pesticide practices have not kept pace with the science and lag behind the practices in other jurisdictions. For example, pesticide sales in Canada have increased fivefold since 2005. Canada still permits the use of 121 highly hazardous pesticides that are banned in the European Union. At the same time, the branch at Health Canada responsible for registering pesticides is set to reduce its workforce by 31%, or approximately 190 positions. Thus, this bill adds to a regulatory framework that has long been deficient and was recently further weakened by Bill C‑30.

Division 13 of part 4 of Bill C‑31 further reduces the requirements. It makes it optional to re-evaluate pesticides every 15 years. It replaces that re-evaluation with an assessment of available information. A full re-evaluation would be carried out only if the risks have increased significantly. However, this poses three problems. First, this threshold associated with the phrase “increased significantly” does not correspond to any definition provided in the act. Second, the text doesn't specify what data will be used or what weight will be given to independent studies during the assessments. A re-evaluation, on the other hand, makes it possible to require new data from the manufacturer. Third, regarding transparency, the bill provides for the publication of the findings of an assessment only in the event of a re-evaluation. There is no requirement to publish detailed reasons when the minister decides not to re-evaluate pesticides. The government cites simplification, but Bill C‑31 proposes replacing the predictable 15‑year period with a discretionary decision on a case-by-case basis.

We would also like the Standing Committee on Health to examine these changes, given their repercussions.

Now let's talk about the economy. Health comes at a cost. First, there are health care costs. Endocrine disruptors alone, many of which are pesticides, cost Canada nearly $36 billion annually, not counting cancers and neurodegenerative diseases. Our health care systems are paying for that.

Second, there is market access. A European proposal to ban products containing residues of prohibited pesticides threatens up to $1.4 billion in Canadian exports. In fact, since January, France has been blocking agricultural products containing residues of five substances banned in Europe, four of which are commonly used in Canada.

Finally, there is dependence. In 2023, Canada imported $2 billion worth of pesticides, three-quarters of which came from the United States. Deregulation does not strengthen our agricultural sovereignty or competitiveness. On the contrary, it weakens them.

In the face of the agrochemical lobby's influence, a transparent and robust process is essential to ensure public trust and the health of pesticide users.

So we ask you: What do you say to agricultural workers with Parkinson's disease or blood cancer, who have worked their entire lives to feed Canada, when they see that pesticides deemed too hazardous elsewhere are still permitted in Canada? The government claims that health remains the priority. We'd like to understand how.

Thank you.

The Chair Liberal Karina Gould

Thank you, Mr. Priori.

We will continue now with FP Canada for five minutes.

Tashia Batstone President and Chief Executive Officer, FP Canada

Thank you, Madam Chair.

FP Canada is a public interest organization focused on helping Canadians build financial well-being and confidence in their financial decisions. We certify and oversee financial planning professionals who help people make informed decisions across their full range of financial lives, including budgeting, debt management, savings, retirement planning, and tax and insurance needs.

Significant research has been undertaken. It reinforces what many Canadians are already feeling: Financial vulnerability is no longer a marginal issue. More than half of Canadians say they are not getting ahead financially, and nearly three in four show some level of financial vulnerability. Bill C-31 addresses a number of important programs, incentives and benefits, but it does not address the critical question of whether Canadians have access to the guidance they need to make these supports work together and build long-term financial resilience.

Financial resilience is not built through a single benefit, account or tax measure. It is built through the decisions that people make over time, often when they are navigating competing priorities and complex choices. We see an opportunity to help Canadians move beyond accessing individual programs and toward building a coordinated plan for their financial future. That is why FP Canada is proposing a phased federal financial planning grant to help low- and middle-income Canadians access and implement a comprehensive first financial plan delivered by a qualified financial planning professional.

Our proposed program structure is as follows. Eligible Canadians work with a qualified financial planner to develop a comprehensive financial plan and identify appropriate savings vehicles aligned with their life goals. That could be, for example, buying a first home, paying off student debt or planning for a family. To be eligible, the individual would attest that this is their first financial plan. The planner would provide the individual with evidence that the financial plan received met the program eligibility requirements. Following receipt of the confirmation through tax filing, government would deposit the grant directly into a registered account that supports the implementation of their financial plan using existing government payment infrastructure. This could include a TFSA or RRSP, for example, or a first home savings account.

We recommend that this process be structured over three separate phases, as the benefits of financial planning are strengthened through the development of good financial habits that require consistent support over multiple years. This approach supports plan implementation, including periodic plan reviews and adjustments as life circumstances change. A proposed lifetime maximum of $3,000 would be distributed across the three phases, encouraging long-term participation and implementation. Discussions have been ongoing with government, financial institutions, professional financial planners and other delivery partners using existing infrastructure wherever possible to support efficient administration and strong consumer protection.

Why does this matter? FP Canada conducted consumer research in 2023, 2025 and 2026. It consistently showed that over 50% of Canadians are falling behind or barely getting by, with no savings. Consumer research by the Financial Resilience Institute in 2026 found that 74% of Canadians exhibit some level of financial vulnerability. It also found that Canadians who work with a financial planner demonstrate stronger financial resilience than those who do not. This was consistent across all income levels. Separate research going back to 2015 confirmed that Canadians working with a financial planning professional have shown stronger outcomes across many economic categories, including wealth accumulation, savings, debt management, retirement preparedness, insurance coverage and education savings.

As part of our work, we undertook research to estimate potential program costs, uptake by Canadians and cost offsets for government. Based on research conducted using various program parameters, our modelling suggests that anywhere from 800,000 to 1.6 million eligible Canadians could benefit from the program to start. Estimated costs of approximately $2.1 billion could generate between $23.9 billion and $47.8 billion of net-worth growth over 10 years for program participants. Economic modelling also suggests that a substantial portion of program costs could be offset through increased consumer spending, GDP growth and tax revenues associated with stronger financial resilience.

Finally, we conducted research to indicate consumer support. I would like to note that this research was only completed within the past two months. It indicates that approximately 67% of Canadians support a federal grant to help Canadians access professional financial planning and develop their first financial plan. Support rises to 75% among Canadians aged 18 to 34, which represents an opportunity to make generational change for younger Canadians.

The Chair Liberal Karina Gould

Thank you, Ms. Batstone. We're going to have to conclude there.

We will continue now with the Mining Association of Canada.

Pierre Gratton President and Chief Executive Officer, Mining Association of Canada

Thank you, Madam Chair.

I want to begin by recognizing the traditional and unceded territory of the Anishinabe Algonquin nation and the hundreds of indigenous communities across the country with which we work closely.

Today I will focus on Bill C-31's proposed change to the Canadian exploration expense, or CEE. I would note that this matter is most relevant to the junior mining sector, represented by groups such as PDAC. We have been supporting PDAC in its advocacy on this issue, but would encourage the committee to meet with them directly.

This change follows a Supreme Court of British Columbia decision that found determining a mineral resource's quality could include assessing its economic viability, allowing most of the disputed engineering and technical study costs to qualify for the provincial mining exploration tax credit. Budget 2025 cited this decision and proposed clarifying that federal CEE eligibility excludes economic viability and engineering feasibility expenses. Clause 9 of Bill C-31 implements that approach by replacing “quality” with “inherent natural qualities”, referring only to the deposit's underlying physical characteristics, such as grade, mineral composition and geology.

In other words, the federal government is not accepting the court's ruling. In so doing, the government is exacerbating a financing gap at precisely the stage when companies must determine whether a discovery can become a viable mine. It also goes against the Liberal Party's election promise to include these costs, at least for critical mineral projects.

Canada has developed one of the world's most successful systems for financing mineral exploration through CEE and flow-through shares. CEE identifies exploration costs that qualify for a tax deduction. Junior companies have no operating revenue and little to no taxable income, so a deduction offers no benefit to the company. Instead, through flow-through shares, juniors raise money to pay for eligible work. Investors buy shares. The company uses that money for exploration. The company then passes on the deductions for eligible expenses to those investors, who can use them to reduce their taxable income. The investor receives a tax benefit. The junior receives cash to carry out the work.

Flow-through shares provide approximately 70% of the funds raised on Canadian stock exchanges for domestic exploration. Junior companies also accounted for half of Canada's $4.3 billion in exploration and deposit appraisal spending in 2024. Their ability to finance the next stage of technical work is critical to our future mine development pipeline.

However, discovering the deposit is only the beginning. Companies must complete preliminary economic assessments, prefeasibility studies and feasibility studies. These progressively establish how a deposit can be mined and processed, what infrastructure would be needed, what development would cost and whether a project is economically viable.

This work is essential to making sound investment decisions. It provides the evidence that lenders and investors need before committing construction capital. It is also expensive and has become more expensive over time as requirements have increased. It could be anywhere from $5 million to $25 million for larger or complex projects. These costs arise before a project generates revenue, and often before it can access the financing needed to proceed. The result is that projects fall into the so-called valley of death, and Bill C-31 is essentially condemning them to that.

We therefore recommend that you reverse this amendment, respect the decision of the B.C. Supreme Court and follow through on the government's election promise to include these studies. We would prefer that you extend it beyond just critical mineral projects to include the entire mining sector. The financing challenge extends across base, precious and critical minerals, and many Canadian deposits contain multiple commodities.

Expanding CEE would help viable projects advance towards production at a time when our smelting and refining capacity has declined. A stronger pipeline of Canadian mines would provide reliable feedstock to help sustain our remaining facilities and support investment in domestic processing.

Thanks very much.

The Chair Liberal Karina Gould

Thank you very much, Mr. Gratton.

We will conclude the opening remarks with Mr. Fair from Prosper Canada.

Adam Fair Vice-President, Strategy and Development, Prosper Canada

Thank you, Madam Chair and members of the committee.

My name is Adam Fair, and I am the vice-president of strategy and development at Prosper Canada, a national charity driving bold change that enables more people to prosper. For almost 20 years, I've worked alongside community organizations that are helping people improve their financial security.

We welcome the government's commitment to ensuring that Canadians receive all the benefits they're entitled to. That goal must guide the automatic tax filing design.

Prosper Canada leads Resilient Futures, a federally funded, $60-million initiative working with 97 community-based organizations from coast to coast to coast. In its 15-month initial start, the program reached over 500,000 Canadians with low incomes and helped participants access over $600 million in additional income through tax filings, benefits navigation and financial counselling. It's becoming a Canadian success story of government and community collaboration. Our partners see every day where the system works, where it fails and what those failures cost people.

I want to ground my remarks today in a personal story. My dad trained as an engineer at the University of Toronto and ran a small business. Today, he lives alone in a small Toronto apartment on a low retirement income and faces mental health challenges. Memory difficulties and limited digital literacy make filing taxes very difficult. Questions about his past marital status have made maintaining his benefits a reoccurring struggle. He depends on old age security and the guaranteed income supplement. He worked most of his life, but now he worries about food and housing. Navigating these systems is one of his greatest stresses, and I worry about his health. I've been fighting alongside him. Even with that support, it's exhausting.

Our partners across the country are helping people through the very same struggles every day. These challenges are widespread. One in five Canadians on low income is not filing. According to Statistics Canada, 62% of low-income families have named income supports as their main source of income. Prosper Canada strongly supports SimpleFile, prefilled returns and deemed filing. Some people cannot reliably complete a simplified process or approve a prefilled return, so deemed filing is essential to reaching them. Automatic filing is a critical step forward, but its design and administration will determine whether it removes barriers or unintentionally creates new ones.

We ask the committee to address four priorities.

First, enable ongoing eligibility. Remove the requirement to have missed a return in the preceding three years. People should not lose this service, because it has successfully helped them to file. For someone like my father, predictable annual support is essential.

Second, protect timely access to benefits. The proposed timetable risks payment interruptions. Notices, review periods and filing must happen early enough to protect continuity. Receiving money months later does not undo the hardship of missed groceries or rent today.

Third, make help and correction accessible. Do not assume everyone can access their CRA My Account. Give participants and authorized support like community representatives direct channels to CRA to correct information and resolve problems quickly. Protect accuracy without requiring an active response from anyone, including those least able to respond.

Fourth, expand eligibility and work with provinces and territories. With appropriate consent and privacy protection, use information that governments already collect to identify what people are missing out on, establish eligibility and support filing. This can connect people to both federal and provincial benefits.

Community organizations must be partners through this work. Continued investment in volunteer tax clinics and year-round financial help, such as our financial resilience partners, are critical. Equip frontline staff with training, reliable information and effective routes to resolve problems on behalf of struggling Canadians. There's no single solution. Success requires sustained collaboration among government and community organizations, alongside innovation, monitoring and improvement.

CRA should report on benefits received, payment continuity, errors and who remains excluded, and then work with partners to close that gap. For my father, success means less fear of losing the income he relies on. When the system works together, the difference is profound: food on the table, secure housing, and relief from constant stress. Let us deliver the benefits Canadians are entitled to consistently and with dignity.

Thank you.

The Chair Liberal Karina Gould

That's great. Thank you very much, Mr. Fair.

We are going to begin this round of questioning with Mr. Guglielmin for six minutes.

12:30 p.m.

Conservative

Michael Guglielmin Conservative Vaughan—Woodbridge, ON

Thank you, Chair.

Thank you to the witnesses for their opening testimonies.

Mr. Gratton, Canada has one of the strongest mineral endowments in the world. We produce more than 60 minerals and metals, and we have many of the critical minerals that many of our allies require and depend on. The question is whether we can get them out of the ground fast enough and to market in due course.

Are lengthy approval timelines in the mining sector now a competitive problem for the industry writ large?