Debates of May 30th, 2016

Finance — Main Estimates 2016-17

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

Madam Chair, the most important thing is that this budget is actually working for middle-class Canadians. As a result of our tax cut, nine million Canadians are better off since January of this year. With the Canada child benefit, we would lift hundreds of thousands of children out of poverty, and nine families out of 10 would be better off, with an average $2,300 in additional income for the family.

This is a budget for Canadian families. This is a budget for the middle class.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Madam Chair, what we would say to that is that we expect the government to be able to provide some figures in terms of growing inequality in this country. We know that, according to Oxfam, the wealthiest 100 Canadians now hold as much as the bottom 10 million Canadians. That number is wholly unacceptable.

I wonder if the minister could tell us if any of the bottom 10 million income earners in Canada benefit from the Liberal tax plan.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I am absolutely delighted to tell the hon. member that our Canada child benefit was specifically intended to help those families raising children, and nine out 10 families with children would be better off. It would make a real and measurable income difference for those families, especially at the lowest end of the income scale, as they try to raise children at a time that is very challenging for them.

We are proud of this measure. It would make a real difference on poverty, raising 300,000 children out of poverty.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Madam Chair, the minister said earlier that transferring shares in small business or farms to a dependent qualifies as a capital gain and would be eligible. In fact, it is taxed as a dividend. Could the minister explain how he came to this conclusion?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I would like to repeat that there is nothing that prevents parents from selling shares of their family corporation directly to their child and claiming the lifetime capital gains exemption on the resulting capital gain. That is the current tax code of this country.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Madam Chair, does the minister still plan to create a consumer price index specifically for seniors?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, in our budget 2016, we introduced a number of measures to improve the lives of seniors in Canada. In the future, we will consider additional measures to help people in need.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Madam Chair, speaking to the issue of the middle-class tax cut, could the minister explain why someone earning the average or the median income in Canada would not qualify for the so-called middle-class tax cut?

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

Madam Chair, nine million Canadians will benefit from the middle-class tax cut. This is a significant measure that has been in place since January of this year. I can say that if we take that and the measures we have for families through the Canada child benefit, these are the types of measures that will help the middle class and Canadian families.

[Steven MacKinnon, Liberal, Gatineau, QC]

Madam Chair, I will begin with a speech and end with questions.

This evening we are debating a wide range of topics having to do with budget 2016-17. I would like to use my time to talk about something that may not have been discussed enough this evening and that is protecting the environment for generations to come while ensuring Canada's economic growth.

In my riding, Gatineau, people will benefit from our investments in infrastructure, jobs, the climate, ensuring respect for the public service, and the Canada child benefit. These measures will constitute the real change that the people of Gatineau were looking for in the last election.

We know that Canadians connect with nature to feel grounded in their identity, and to get a sense of belonging to something that transcends them, a country, the world. I see that in the riding of Gatineau: the people are proud of the green spaces that surround them in the city of Gatineau and obviously in Gatineau Park.

That is why we are investing up to $83.3 million over five years in order to grant all visitors free entry to our national parks, national marine conservation areas, and national historic sites in 2017. There is no better way to celebrate the 150th anniversary of Confederation. We will also be offering free entry for all children under 18, starting in 2018. We want to promote this connection by renewing Canadians' interest in our national parks and by making it easier to access them.

This initiative will also include the creation of a new park. To that end, budget 2016 will provide $42.4 million over five years to continue the work of developing new national parks and new national marine conservation areas, including the Lancaster Sound national marine conservation area in Nunavut, and the Thaidene Nene national park in the Northwest Territories.

At the same time, we will continue to find ways to ensure that Canadians have access to these parks and can learn more about our common cultural heritage if they wish to do so. In order to help Canadians experience part of our heritage, we will allocate an additional $16.6 million over five years to expand the learn to camp program, create new programs about Canada's history, and foster opportunities for storytelling and ecotourism for indigenous people.

I would also like to mention the investment in the Canadian Museum of History, which is located on the other side of the river, across from our cherished Parliament. Approximately $40 million will be invested in an exhibit and a new hall to open on July 1, 2017. It will be a wonderful exhibit that will catch the interest of all Canadians. All these measures will help future generations of Canadians learn about and respect nature and history.

Our government is also investing in a green economy. We know that protecting the environment and growing the economy are not incompatible objectives: they go hand in hand.

The development of clean technologies is good for the economy and middle-class Canadians equally. They create opportunities for businesses to grow and, by extension, jobs for talented and creative Canadians. By supporting a clean growth economy, Canada will be positioned to take advantage of opportunities to diversify our economy, open up access to new markets, reduce emissions, and of course generate jobs for Canadians. Canadian businesses are well situated to seize this opportunity, showcase their ingenuity, and emerge as leaders in clean technology.

Those are just the economic reasons for adopting this new strategy. A greener lifestyle will bring about improvements in health and quality of life that will pay off in the future. For all of these reasons, the government kept its promises by investing in a clean economy, which is a first step in reorienting our economy for the 21st century.

Our children and grandchildren deserve a healthy environment and a prosperous economy. That is no small feat. A sustainable environment requires significant investments in order to address climate change and air pollution, protect ecologically sensitive areas, and restore public confidence in our ability to properly manage our land.

In total, budget 2016 provides $3.4 billion over five years to achieve those goals. Budget 2016 provides $50 million over four years for Sustainable Development Technology Canada's SD Tech Fund. This funding will support the development and demonstration of technologies to deal with the problems associated with climate change, air quality, and water and soil cleanliness.

We are also giving Natural Resources Canada $82.5 million over two years to support research, development and demonstration of clean energy technologies with the goal of bringing these innovative tools closer to commercialization so they can enter the market.

Alternative fuel vehicles are becoming more common. Over the past few weeks, I have seen electric cars from all manufacturers. Earlier this month, Gatineau hosted Branchez-vous, part of a Quebec-wide initiative that is a testament to our enthusiasm for electric cars in Quebec and Canada.

To support the transition to low-carbon transportation fuels, we will provide $62.5 million over two years to Natural Resources Canada to support the deployment of infrastructure for electric charging stations and natural gas and, yes, hydrogen refuelling stations.

In many regions of the country, we have fostered unique clean-technology ecosystems, which are now well positioned to tap into new market opportunities. We would provide funding through the six regional development agencies, fully doubling their annual support for clean-technology activities to $100 million in this current fiscal year.

To help Canada achieve its potential and become a clean energy leader, we will also provide over $1 billion over four years, starting in 2016-18, to support future investment in clean technology across the forestry, fishing, mining, energy and agriculture sectors. These major investments will be made as part of the government's innovation agenda, to be defined in the coming year.

Climate change is a major challenge that demands innovation on the part of business and wise choices on the part of Canadians. We know that both are up to the challenge. Long before a technology hits the market, it exists as an idea in the minds of researchers, innovators, and scientists. Their specialized skills will guide Canada in its transition toward a low-carbon economy.

The Canada excellence research chairs program draws world-leading researchers to Canada by providing host institutions with funding in support of key research areas. Canada needs the brightest minds to map the transition before us. That is why we intend to create two new chairs in fields specifically related to clean and sustainable technology. In total, we would provide $20 million over eight years starting in 2018-19 to seek out and identify these new world-leading researchers.

However, successful clean technologies require more than just a good idea. They require the collective efforts of many talented individuals who, together, advance these projects so they can take root and find success.

The federal government has a clear goal, but that goal alone will not bring about the necessary change. In the future, investments will align with the new pan-Canadian framework on clean growth and climate change, which is currently being developed in partnership with the provinces and territories. We will also work hand in hand with indigenous peoples.

In conclusion, pricing carbon will drive Canada's transition to a stronger low-carbon economy—

[The Acting Speaker, NDP, Carol Hughes]

Question, please.

[Steven MacKinnon, Liberal, Gatineau, QC]

I will get to my question, Madam Chair. I just mentioned some significant investments. For more than a decade, Canadians have been calling for a green budget and for a government that will invest on all fronts in the shift we must make to address climate change.

I have heard the minister mention the pan-Canadian framework on clean growth and climate a number of times. He finally delivered the budget that Canadian environmentalists and Canadians who are concerned about climate change have been calling for. He delivered a budget that tackles the problem on all fronts by investing in many areas, which I covered in my speech.

Could the minister give us more information on the government's progress so far?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, our goals are clear. We will reduce greenhouse gas emissions in this country, and we will combat climate change.

I am proud to say that, on March 3, the Prime Minister and leaders from provinces and territories agreed to work together on a new pan-Canadian framework on clean growth and climate change. The road map we are developing will help Canada meet our international commitments to reduce greenhouse gas emissions. Central to this framework will be pricing of carbon. This is not merely because of the wide consensus on the need for this measure but because doing so is key if we are going to transition to a stronger, more resilient economy that is in step with the rest of the world as we face up to real climate change.

The funding announced in budget 2016, amounting to $2.9 billion over five years, would help us to take concerted steps toward achieving our climate change and air pollution goals.

[Steven MacKinnon, Liberal, Gatineau, QC]

Madam Chair, I think everyone on this side of the House is eager to move forward on ratifying our climate-related commitments under the Paris agreement and in this historic debate. However, we know that achieving our specific targets in the area of climate change and reducing greenhouse gases will require changes and collaboration among the federal government, the provinces, indigenous peoples, the territories, the municipalities, and so on.

Can the minister tell us how this budget will contribute to achieving those targets and talk about the incentives that could be on the table for our various partners, such as the provinces?

In the long term, what does he plan to do in future budgets to complete the shift to a green economy, a collaborative economy that strives to meet our greenhouse gas reduction targets?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, I thank the member for his questions.

It is very important to have more details about our fund and how we are going to improve our situation when it comes to climate change.

Our decision to add funds to a low-carbon economy fund would enable us to support the development of a pan-Canadian framework. We clearly are intending on helping to ensure that Canada will meet its international obligations. We are going to take action to reduce emissions from Canada's largest sources, transportation and energy. We are going to advance science and programming activities to better understand and adapt to our changing climate. Of course, our goal is to enable evidence-based decisions to address air pollution.

We want to be clear that these commitments are firm. We intend to retake our position and our place as world leaders in environmental stewardship. We know this means that the federal government needs to lead, working together with the provinces and territories in the same direction for the long-term health of our environment, and that means, as well, for our economy.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Madam Chair, I want to go back to the questioning that I was leading into previously about revenues that have been projected and recorded and amounts that have been spent.

If we take the revenues reported in the 12 issues of the Fiscal Monitor for 2015 and 2016, to the year end, they add up to $289.6 billion. Could the minister confirm that this is only $700 million short of what was projected in budget 2015?

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Chair, I want to say, again, in the House, because it is important, that the “Fiscal Monitor” is the work of the Department of Finance. It is the best work we have to show our fiscal situation. It is what we use in order to determine the financial situation we are in. It is the kind of work that showed over the last years of the previous government that it was perpetually in deficit. It is the kind of work that is showing us, in the 2015-16 year—

[Phil McColeman, Conservative, Brantford—Brant, ON]

On a point of order, Mr. Chair, I think that was a far greater period of time than my question.

[The Chair, Conservative, Bruce Stanton]

The times are approximate. I have the minister at about 40 seconds, and yourself at about 36 seconds. I do try to ensure that they are proportionate times, but I also do not want to eat into member's times. I will keep a close eye on that. The hon. minister.

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Chair, I will be very quick. The Fiscal Monitor in 2015 shows clearly in the month of March that in fact the government before us left us in a deficit. That is our starting point.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Mr. Chair, I would like to refer the finance minister to page 7 of that February update, outlining at least $2 billion in Liberal-initiated spending, spent primarily on their platform commitments.

I want to ask a very few quick yes or no questions about the items listed on that page. Was the $400 million middle-class tax cut in budget 2015?

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Chair, I do not believe we hold any responsibility for budget 2015.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Mr. Chair, it is the 2015-16 budget.

Was, as it shows on page 7, $400 million accrued to the expenses for the middle-class tax cut?

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Chair, if I understand the question, I believe it was whether that amount was accrued in the fiscal year 2015-16. If that is the question, the answer is yes.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Mr. Chair, was the $400 million for Syrian refugees accrued in the budget 2015-16?