Debates of May 30th, 2016

Finance — Main Estimates 2016-17

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Chair, I believe that reducing the age to 65 was nothing but buying votes. That is it exactly, because it does not really square with what the minister originally believed in his philosophy about this approach.

Is the finance minister planning major new spending that is not accounted for in this budget or the five-year cost estimates that were recently provided to the PBO?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we believe we have presented a budget for Canadians that is open, clear, and transparent. We have told Canadians exactly what our plan is.

Our plan is to improve the lives of middle-class Canadians, and those struggling to get into the middle class, through measures that can make a real difference today. Reductions in taxes and an increase in the Canada child benefit are things that will help Canadian families.

We have also laid out things that can help tomorrow, and we have been quite clear about those investments. We are going to invest in infrastructure and innovation. I can confirm that we are in the beginnings of our mandate. We will have additional measures. We will have additional ideas on how we can grow the economy to make things better for Canadians who are striving to succeed in a challenging time. That is exactly why we were elected, and that is exactly what we are going to do.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Chair, unfortunately, they can only hide so much behind their campaign promises. They promised $10 billion, and they are scoring $29.4 billion for this coming year. It will be over $100 billion for the next four years, without any plans for how they will pay the money back. I would really like to have a conversation on this with the minister at some time.

Speaking of Canada child benefits, they are only giving Canadian families $1 billion extra. Divided by a population of 36 million, it equals $27.77 per capita. They are calling that pulling Canadian families out of poverty. That must stop.

The question is, do any of the minister's fiscal forecasts account for an increase to the Canadian health transfer above current planned levels?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I have no idea how the member opposite arrived at the math, but I want to be very clear. We have done some things with the Canada child benefit that are historic. We have put three different benefits together and means-tested them so that we can actually give a measurably larger amount to Canadian families. Nine out of 10 Canadian families with children will have an average of $2,300 more per year. That is the way the math works. It is big, it is measurable, and it is going to improve the lives of Canadian families and their children.

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Madam Chair, budget 2016 is about restoring hope for the middle class. It is about revitalizing the economy and providing support for Canadian families.

Even before taking office, Canadians told us to do two things: invest in people and families, and grow the economy for the long term. Canadians want to leave a better future for their children. People work hard and expect their government and their economy to work hard for them in return.

At the core of our plan is the notion that when there is an economy that works for the middle class, there is a country that works for everyone. That is why we have to look at all of the investments we make today in the context of how they will help to build Canada's future.

We all know that public investments in areas like infrastructure are crucial to driving economic growth and strengthening the middle class. It is no coincidence that some of Canada's most significant public works have come at a time of economic transformation. Building on a grand scale is something Canadians do well. One only has to look at the highway that was built that united Victoria and St. John's in 1971 or the railway that linked the country nearly one century earlier.

Canadians have said that the time is right to invest in infrastructure that will define Canada in the 21st century. In fact, the timing has never been more critical. Interest rates for the new investments are at historic lows. Our current infrastructure is aging and Canada needs a boost in economic growth. Investing in infrastructure creates good, well-paying jobs that help the middle class grow and prosper.

However, it does far more than that. Properly chosen and implemented, these projects can collectively improve Canada's fortunes. By working with our partners to develop world-class transit systems, improve and expand trade corridors, and reduce the carbon footprint of the national energy system, these investments deliver cleaner growth, improve trade, and ensure the middle class can seize new economic opportunities.

In budget 2016, the government will implement a historic plan to invest more than $120 billion in infrastructure over 10 years to better meet the needs of Canadians. First, over the next two years, we will implement a plan to immediately invest in the infrastructure projects Canadians need most: modern and reliable public transit, water and waste water systems, affordable housing, and upgrades to protect existing infrastructure. While the projects themselves will be diverse, what remains constant is the underlying objective of economic growth for the middle class and those working hard to join it.

Next, we will take a longer view that will also help support our ambitious vision of a modern, cleaner economy and a more inclusive society that is better positioned to capitalize on global trade. Nation-building projects like the Trans-Canada Highway require a much longer horizon and a much grander vision. That includes projects that reduce urban transportation congestion, improve and expand trade corridors, and reduce the carbon footprint of the national energy system.

Success will depend on collaboration with provincial, territorial, municipal, and indigenous partners alongside new approaches that help us achieve this goal responsibly. We will pursue evidence-based decision-making and listen to good advice, and we will aim to boost the number of municipal infrastructure projects that are being built and get them started earlier.

The government believes that municipalities are on the front lines, the best place to make decisions about how to meet the needs of the community. They will be our partners. Their involvement will not just ensure our collective economic success, but will also help to translate a broad vision into tangible change at the community level. We recognize that municipalities are already playing a significant role in federal efforts to upgrade and build infrastructure, but we want to work even closer with them to build our communities.

Every day millions of Canadians rely upon affordable, efficient public transportation to get to their jobs, schools, community centres, and at the end of the day, home. As Canada's cities continue to grow, we have to ensure transit networks adapt to meet the new demands and do so in a way that is a sustainable, clean, and helps to reduce congestion and harmful emissions.

Canadian cities are among the most livable in the world. It is time for public transit infrastructure to live up to this reputation. To improve and expand public transit systems across Canada, budget 2016 proposes to provide up to $3.4 billion over three years for a new public transit infrastructure fund to start making that goal a reality.

Getting people moving is an important goal, but it comes with an important condition. We must ensure investments help to catalyze Canada's transition to a low-carbon economy. Work is already under way on a pan-Canadian framework on clean growth and climate change.

Infrastructure investments are a part of this broader effort and can play a meaningful role in helping to position the economy for future success. In particular, green infrastructure can help build healthier more sustainable communities. To that end, $5 billion over five years will be provided to the provinces, territories, municipalities, and first nation communities for green infrastructure. Projects funded by the green infrastructure envelope will include new funding for municipalities whose front-line expertise will allow them to undertake infrastructure projects that both combat climate change and build up greater climate resiliency.

We will provide $125 million over the next two years to the Federation of Canadian Municipalities to enhance the green municipal fund, including for projects that reduce greenhouse gas emissions. We need to make sure that Canadian communities are ready to adapt to climate change. Simply put, we need to consider all of the investments we make today in the context of how they will help to build Canada's future.

As I said in my introduction, Canadians have said that the time is right to invest in infrastructure that will define Canada in the 21st century and I could not agree more. After all, every dollar spent on infrastructure investments such as housing, transit, and green projects will create jobs, strengthen our communities, strengthen our trade corridors, and ultimately raise Canadians' fortunes.

Just like the Trans-Canada Highway did for Canada a generation earlier, our long-term infrastructure plan will unite Canadians once again, helping to redefine our physical spaces while positioning us for success in the economy of tomorrow.

I would like to ask the hon. minister a question in regard to infrastructure. As he may be aware, prior to this I spent 10 years in municipal politics and as deputy mayor of my municipality, so infrastructure and our budgets are quite important. In fact, I was on the finance committee for our region's budget. For us in Ontario and in my municipality in particular, housing is a municipal responsibility, a regional municipal responsibility, and the waiting list as well as the condition of our housing in Durham region are growing deeper in terms of longer waiting lists and the deficit of infrastructure investment in these houses.

If we do not have investment, the number of spaces we have now will actually decrease. With that in mind, what is the government going to do to support social infrastructure like housing?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I would like to acknowledge how important this issue is across the country, but how important it is specifically in communities like Durham.

We believe that the government has an important role to play when middle-class Canadians, and particularly those working hard to join the middle class, struggle to find ways to improve their livelihoods. This is especially true when it comes to social infrastructure. Investments in this area can measurably improve the quality of life for Canadians both by giving them a home so that they have the possibility of going out and finding a job, but also by providing safe facilities for vulnerable people and homes for those really struggling to find one.

We know that it is really about building stronger communities, so in budget 2016, we provided funding totalling $3.4 billion over five years for affordable housing, early learning and child care, cultural and recreational infrastructure, and community health care facilities on reserves. Specifically we allocated $1.5 billion to expand affordable housing across the country, a significant portion of which will be made available to provincial, territorial, and municipal partners. In addition, $739 million will be invested in first nations, Inuit, and northern housing, making a real difference in housing across our country for so many Canadians struggling to find and maintain themselves in adequate housing facilities.

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Madam Chair, I want to follow up on that question along the same lines in terms of social infrastructure.

We know that with housing, for example, access to housing is incredibly important for a person to maintain a job, to have pride in their community, and to have the opportunity to give back, maybe volunteer. Not having access to some of these key social safety nets to deliver on this is really critical in how the entire system works and how people can fully become members in a community.

Does the hon. minister have more information in terms of the investments in our social infrastructure, and how it will specifically help the most vulnerable in our society?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we intend to undertake nationwide consultations in the coming year to develop a national housing strategy, so that future federal investments have the greatest possible impact and so that the social housing sector can find new ways to become self-reliant in our country.

To help address local affordable housing needs, we have promised to double federal funding under the investment in affordable housing initiative, by investing $504.4 million over two years. These federal investments are going to be cost-matched by provinces and territories, allowing us to really increase the impact on this investment. The funding will be used to construct new affordable housing units, to renovate and repair existing ones, and for rent supplements and other measures. We expect 100,000 households will benefit from the doubling of funding for this initiative.

In addition, and to encourage the construction of affordable rental housing, we are also expecting to provide $208 million over five years to the Canada Mortgage and Housing Corporation to establish an affordable rental housing innovation fund, making a real difference in that sector as well.

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Madam Chair, in terms of investments in climate change for municipalities, this is something that, as a former municipal councillor, we are starting to really delve into. In fact, we had new financing rules in terms of asset management. A road now became an asset, and we had to have it insured and ensure that we had the adequate capital should anything happen to that in the future.

Climate change was playing a major role in our concerns and long-term planning. Investments in waste water, particularly in my community along the lakeshore of Lake Ontario, is incredibly important. Municipalities are starting to model what a 100-year storm, which are happening more and more frequently, would cost if municipal infrastructure had to be replaced because of the changing climate.

When the minister consulted on our budget across the country, what was he hearing from municipalities in terms of the need for climate change infrastructure investments?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we endeavoured, as we have mentioned in the House, to have very extensive pre-budget consultations. Those included speaking with representatives from smaller cities, as well as representatives from Canada's largest cities. We feel like we had a very good cross-section of information from the municipal sector in putting together our plans.

As the member notes, one of the critical issues that those municipal governments are facing is an issue around climate change and an issue around dealing with the very real impacts of climate change on their cities. One of the most important things we heard was waste water systems were not able to keep up with these sorts of environmental changes that are going on. In our budget, we put forth some significant measures to deal with that. We put forth $3.4 billion to deal with climate change issues, a lot of which is going to be helping municipalities deal with the very real impacts of climate change.

[The Deputy Chair, NDP, Carol Hughes]

Based on the questions that were asked earlier, I just want to remind the members here that the previous speaker, in starting the debate, had indicated that when a member is recognized, he or she should indicate to the chair how the 15-minute period will be used. That determines how long the response is from the minister. On that note, the hon. member for Courtenay—Alberni.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, I would first like to ask for unanimous consent to split my time with the member for Churchill—Keewatinook Aski.

[The Deputy Chair, NDP, Carol Hughes]

Does the hon. member have unanimous consent?

[Some hon. members]

Agreed.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, I would like to thank my colleagues for their agreement. I would like to indicate to the chair that I will be using eight minutes to ask questions of the minister and the remainder will be with my colleague.

The main estimates show a cut of $10 million in funding for economic and fiscal policy framework. When did the department advise the minister that the cost to small business of the decision to cancel legislated tax reductions for the coming years would be $2.2 billion?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I acknowledge the question from the hon. member and tell him that we would be happy to come back to him specifically with the answer to that specific question.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, did the department conduct analysis of the cost to employees, both in terms of lost jobs and reduced hours and wage increases?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, like the minister said before, we are happy to take that question under advisement and get back to the member at a later stage with a more fulsome answer to that.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, the PBO said that more than 1,200 jobs would be lost on top of reduced hours and pay.

Budget 2016 said that future cuts would be deferred. Until what date would that be?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I am pleased to say that in our budget we have taken numerous measures that we believe will help our economy, which will significantly help small businesses by increasing their opportunities.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, does the minister know what the annual cost to Canadian enterprises for credit card merchant fees is?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, as the hon. member knows, it is a very important question. We will take this question under advisement and come back with further details at a later stage to the member.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, the Retail Council of Canada has estimated over $5 billion a year.

I ask, does the minister believe that it is fair that small businesses have to pay credit card processing fees as high as 4%?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I am pleased to say that we are monitoring the voluntary undertaking that we have with the credit card companies to see the outcomes of that on credit card fees to merchants.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Chair, does the department have any intention to introduce mandatory regulations to cap merchant fees. If so, when?