Debates of June 6th, 2016

Budget Implementation Act, 2016, No. 1

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

This is probably a debate that would take more than the time you would allow me, Mr. Speaker, to engage in great depth.

Probably the easiest way to answer that is as much as there are some good arguments for fiscal stimulus in certain contexts where there is sort of a brief aberration in terms of levels of demand, in the long term it will be an increase in productivity that sustains economic growth over a long period. I think Keynes would agree with that, as well as a range of economists across the spectrum.

The problem I have with the government's budgetary policy is not that it supports fiscal stimulus in unique times of recession, but that it seems to believe that we can perpetually run deficits. I think every serious economist would agree that we cannot be constantly running deficits to stimulate the economy. The very basis of Keynesianism is that we run deficits at certain times and surpluses at other times, not that we have a constant situation in which spending exceeds what the government is taking in. Obviously, that would lead us to a debt crisis, and then we are in a situation where we cannot stimulate our way out of it, because we have run out of other people's money.

[Salma Zahid, Liberal, Scarborough Centre, ON]

Mr. Speaker, it is finally time for hard-working Canadians from coast to coast to coast to get a helping hand from their government.

Middle-class Canadians have been ignored for too long. Today is a day of change and hope. That is why I rise to speak in favour of Bill C-15, Budget Implementation Act, 2016, No. 1.

When I participated previously in the budget debate, I recognized and applauded the government's work towards helping middle-class families through the Canada child benefit program, reducing poverty, strategies to reduce youth unemployment, and investing in infrastructure and seniors.

However, there are many other initiatives of this budget that I would like to speak about today. I believe they pertain not only to Canadians across the country, but also to the many tireless and hard-working residents of my riding of Scarborough Centre.

As I have said before, my riding of Scarborough Centre is an extremely diverse community, comprised of Canadians hailing from across the globe. They are all here to work hard and provide lives for themselves and their children. We are not afraid of putting in long hours every day in Scarborough. However, for far too long, the costs of living for families, for things such as groceries and rent to other necessities, has continued to rise while paycheques have stayed the same.

At the same time, I always hear that youth are the future of a great Canada. While I do agree, I see the daily struggles that so many youth face, especially as they attempt to enter the job market and start giving back to society and their communities.

While we must assist youth all across the country in solidifying their future, we must also not forget about the many veterans in our communities. These are citizens who have gone above and beyond and provided the highest and most honourable forms of service to our country. Hence, these Canadian heroes must be provided with the resources and assistance they need in due recognition for their sacrifices.

We must also recognize the social, economic, and other invaluable contributions that small businesses provide to our society. Small businesses are the engine of our economy. I would like to bring attention to the issues affecting small business owners and the many dedicated Canadians that they employ. The effects of struggling small businesses are not contained to the owners and their employers. The ripples impact millions of Canadians. It should be of the utmost importance to ensure their prosperity.

Also, with a challenging economy, many Canadians are in need of a helping hand with regard to employment insurance. Budget 2016 addresses that.

Middle class families, youth, veterans, small businesses, and Canadians suffering unemployment have all been subject to unhelpful and sometimes even hurtful policies by the previous government. However, our government has promised change. I can proudly attest that with this budget, we are delivering on these promises for a better society, a better economy, and a better Canada.

The lack of affordable housing poses a great risk to millions of Canadians. As the budget itself states, when affordable housing is in short supply, Canada's whole economy suffers, from raising healthy children to pursuing education, jobs, and other opportunities. Affordable housing is the cornerstore of a strong Canadian family, and therefore of a strong Canada.

This is especially true in my riding of Scarborough Centre, where almost half of tenants spend more than 30% of their monthly household income on housing compared to the national average of less than one in five. Even more, the number of residents in subsidized housing is disproportionately higher in my riding. When it comes to quality of housing, almost one in five dwellings in Scarborough Centre is defined as unsuitable by the national household survey, compared to the about one in 20 nationally.

The need for action on affordable housing is clear, and this government is taking action. Budget 2016 proposes an investment of $2.3 billion over the next two years in affordable housing, with $739 million of that directed to first nations, Inuit, and northern housing. Additionally, a significant portion of this funding will be allocated provincially and territorially to ensure that resources are invested in the most pertinent needs. Much of this investment will be focused on green, clean, and sustainable economic growth.

Moving on, to support young Canadians in gaining the education and skills needed to compete in the economy of tomorrow, the budget proposes infrastructure investments through the Canada Foundation for Innovation. This program will support significant investments in research infrastructure at universities, colleges, and research hospitals nationwide, such as the University of Toronto in Scarborough and Centennial College, both institutions that many of my constituents attend. This will refresh and renew the current 25-year-old infrastructure and ensure that our nation continues to train, educate, and produce the brightest future leaders in the world.

In addition, budget 2016 would implement programs such as the educator school supply tax credit to help teachers and educators make ends meet in classrooms. As well, flat-rate student contributions will make it easier for post-secondary students to work and earn money without worrying about negative impacts on their financial aid eligibility. Initiatives such as these will ensure that Canada can attract young talent while boosting innovation and contributing to constructing a sustainable economy.

Our government is not forgetting about the countless veterans who have already made such a vital impact and contribution to Canada. Canada's veterans and their families deserve our care, compassion, and respect. With that in mind, budget 2016 is committed to reopening the staff service offices across the country that were closed by the previous government, and expanding veteran outreach services to regions that currently lack them.

Moreover, I strongly commend budget 2016 for increasing the maximum disability award for veterans to $360,000, and also increasing the earnings loss benefit to 90% of pre-release military salary. These policies, among several other implementations in this budget, clearly exemplify our government's commitment to each and every Canadian, especially veterans who have served the highest duties.

This budget also addresses the concerns of the millions of Canadians whose livelihoods depend on small businesses. With this budget, the government has introduced a lower small business income tax rate of 10.5% on the first $500,000 of active business income, allowing these hard-working businesses to retain more earnings that can be reinvested to support growth and job creation.

For those who are trying to re-enter the job market, I would also like to recognize the government's initiative of significantly increasing accessibility to employment insurance for thousands of Canadians through eligibility amendments. Not only that, but this budget will bring about a 50% reduction in waiting periods for unemployed Canadians who are in need of a helping hand to get back on their feet.

I must also mention that the government has been swift in its response to unforeseen and sharp rises in unemployment in certain regions by extending EI benefits in 12 regions across the country. Unlike the previous government, we are delivering on our promises. Budget 2016 is a testament to the delivery of these commitments.

As I have said before, there is much more to be done in the years ahead, but with budget 2016, our government has laid the foundation for future growth and prosperity. With this budget, we are investing in Canada's future, and today that future is extremely bright indeed.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, one thing we are seeing with the Liberal budget, obviously, is increased deficit spending. We are looking at multi-billions of dollars in deficits that are going to be created, and an increase to the debt as well.

Recently, on a trip to Washington, I had the opportunity to listen to some of the top economists in the country. They were talking about the potential for a recession. It is not just a matter of if a recession is going to happen, it is a matter of when. We are currently in the sixth year of what are typically five-year cycles of recession. When a government spends as much as what the Liberals are proposing to spend, it leaves very little wiggle room with respect to getting out of a recession, as we did in 2008.

I would like to ask the hon. member this. If a recession were to hit, what measures would her government take in order to make sure that Canada recovers from that recession?

[Salma Zahid, Liberal, Scarborough Centre, ON]

Mr. Speaker, right now Canada is going through an infrastructure debt. We cannot pass that debt on to our future generations. It is time to invest now, not tomorrow, but today. The interest rates are low and we need to invest in our economy. That is exactly what we are doing through our budget 2016. We are investing in our middle class by giving tax breaks, introducing the Canada child benefit. This will lead to growing the economy, and all Canadians will benefit from that.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, I fear that the member for Scarborough Centre's speaking notes may be out of date. She mentioned that the budget would extend employment insurance benefits in 12 regions. Since then, under pressure from the NDP, the Prime Minister has added three more regions to that benefit extension. We are now up to 15. In spite of that, Regina continues to be excluded from this extension of EI benefits.

To put that in context, there are eight EI regions across Alberta and Saskatchewan. At this point, seven of them are included in the benefit extension and only Regina is left out.

I wonder if the member for Scarborough Centre could shed any light on that decision and the rationale for leaving out Regina.

[Salma Zahid, Liberal, Scarborough Centre, ON]

Mr. Speaker, the member is right. In the budget, the government promised to monitor the economic situation after the budget, and, as a result, three other regions have been added. This is an evidence-based process, based on the data available. We will review the numbers, and wherever the help is needed, it will be extended.

[Adam Vaughan, Liberal, Parliamentary Secretary to the Prime Minister (Intergovernmental Affairs)]

Mr. Speaker, I listened to the previous questions with great interest because it was not pressure from any political party; it is a formula that includes jurisdictions. It is not political pressure. It is not favouritism. It is evidence-based decision-making. I am glad that my colleague across the way knew that.

However, it was the first question that caught my attention and the infrastructure deficit. There was underspending by the previous government. There were zero infrastructure dollars in Alberta. Not a single new dollar from the new building Canada fund was spent in Alberta in the last two years. That money could have been putting people to work in Alberta. Instead, it sat in bank accounts in Ottawa, even though the billboards went up in that beautiful province.

However, this is the issue. The $440-billion infrastructure deficit in this country has driven into places like Toronto, our home city, a $2.6-billion backlog in infrastructure repairs for Toronto Community Housing.

How will this budget address the deficit, both the fiscal and the infrastructure deficit, left to us by the previous government, a deplorable state of economic affairs, but even worse when it comes to measuring infrastructure impact?

[Salma Zahid, Liberal, Scarborough Centre, ON]

Mr. Speaker, I totally agree with my hon. colleague. I represent the riding of Scarborough Centre, which faces infrastructure debt for transit and affordable housing. It is not only an economic issue, but it is a social issue. Families cannot get back home in time to sit down and help their kids, or help their parents and look after them, because a lot of time is spent in Toronto on the roads.

Budget 2016's investment in transit and affordable housing will build on that, and people in my riding will definitely benefit from the investments in infrastructure as well as in affordable housing.

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, hon. members, colleagues, members of the opposition and friends, it is a privilege and an honour to address you here today, in this noble institution, regarding the first budget of this new government, which was tabled by the Minister of Finance on Tuesday, March 22.

All my colleagues were here when the Minister of Finance presented the details of this budget, the fiscal blueprint that will take great strides toward a better and brighter future for Canada. I am proud of this budget that addresses the concerns of everyday Canadians and especially the people in the riding of Vimy, the people that we who sit in this House have to thank for the great responsibilities they bestowed upon us to represent their interests. Every day, I am grateful for this privilege, as we all should be, and therefore I fully intend to honour that privilege with steadfast and genuine service to my constituents.

This budget does just that. It is a progressive budget with attainable goals that will be felt positively by Canadians of the middle class. I am delighted to be able to speak directly to the positive direction the government has been taking with respect to fiscal and social policy, which will begin to redefine what it means to assist the middle class and those who wish to become a part of it.

The middle class is the backbone of our economy and so the government has devised a budget for those people. They are the everyday citizens who work hard so that one day they can pay off their debts, own a home, raise their children and put them through school, save for retirement, and still have enough money and time for leisure and generosity. The middle class works tirelessly for this country, so it is about time that we got to work and had a government that works tirelessly for the middle class. With this budget, we begin to restore hope to the middle class and reinvigorate the economy.

The combination of long-overdue investments in infrastructure, re-engineering of social and economic policy, and commitment to providing stimulus and support wherever it is needed is an ambitious concoction of progressive policy initiatives that will act as a catalyst to bring about the kind of relief needed to energize our economy and our middle class. Through several initiatives, middle-class and low-income Canadians will have relief from their financial burdens and receive extended benefits in areas where they need them most.

Canadians who are single, partnered, or have families of their own will see positive fiscal changes putting more money directly in their pockets. One of the government's most crucial promises was to adjust the federal income tax structure. We kept that promise as soon as we took office by lowering taxes by 1.5% for middle-class Canadians earning between $45,282 and $90,563.

This cost was offset by raising taxes for the wealthiest Canadians so that we could offer help to those who need it most. This tax break represents up to $670 per person or $1,340 per couple per year. Thousands of people across Canada and in my riding of Vimy in particular will benefit directly from this tax cut.

With the creation of the new Canada child benefit, the government is offering greater benefits to Canadian families and, again, especially those who need it most. Lower-income families will see a greater share of the benefit to assist with the greater financial burden that comes with raising children. Families earning $30,000 or less will receive the maximum of this new tax-free benefit, which means more money in the pockets of the Canadians who need it most.

Helping to keep 300,000 Canadian children out of poverty should always be a top priority for governments. Re-evaluating and prescribing newer, more efficient policies is the key to success for tomorrow’s generation. By supporting and investing in Canadian families now, we are opening up new doors for our children that may have previously been inaccessible.

We may find ourselves in old age burdened with difficult choices. Our elderly years, while heavily contingent on the plans made in our youth and adult life, are often subject to changes we could not have foreseen such as the death of a loved one, early retirement because of health that eviscerates our pension, or perhaps a life of hardship that left us without much in the way of support, and little financial stability outside of government assistance. Life does not smile on us all the time.

After a life of hard work, one should be able to retire with dignity. The budget has made some of the most extensive enhancements and policy adjustments that would give seniors the assurance and security they deserve. The previous administration's decision to trim the OAS and GIS, among many other cuts and changes that affected our seniors, was a brash and unnecessary decision doing a great disservice to them. This was at a time when, given the realities of the rising cost of living, seniors who hovered around the poverty line and undeniable projections, depicting the growth our aging population in Canada, we should have been investing in their long-term prosperity, not cutting their lifelines and watching the very people who helped build our country fade into destitution and obscurity.

On September 29, 2015, it was announced for the first time ever that in Canada there were more Canadians aged 65 and over than there were Canadians aged 15 and younger. Canada had nearly six million seniors when that announcement was made. In 21 years' time, it is expected that this number will increase by 50%. Without all of the ongoing changes, both the reversal of decisions by the previous administration and the new implementations by this government, we are taking proactive measures to ensure fair treatment and an acceptable standard of living for our seniors.

The additions made to affordable housing in the budget designed specifically for seniors, the increase to the GIS, restoring the age of eligibility for OAS, GIS and allowances and our government's intention to work with the provinces and territories to expand the CPP, and increase access to home care, these are the kinds of investments we need to be making in our country.

I chose to speak about these particular aspects of the budget today because of the positive impact they would have on my constituents. I believe the direction we are heading is the right one. I have met with countless Canadians and listened to their concerns. They want a government that looks out for all Canadians. They want a plan that helps the entire country move forward, not just one segment of society. Every one of the points from the budget I have mentioned today will help thousands of people in my riding of Vimy alone. It will also help millions of Canadians across the country for years to come.

I have been only able to scrape the surface of what the budget aims to achieve. It offers assurance for families, dignity for seniors, respect for our veterans, a future for our youth, renewed hope for aboriginals, a humanitarian global presence, sustainable environmental policies, fairness and equality.

When middle-class Canadians have more money in their pockets to save, invest, and grow the economy, it is all Canadians who benefit.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I have a question for the member about the budget, and more specifically about schedule 1 and the Canada child benefit. This is a topic I have raised with other members.

In the government's budget, it appears that the amount for the Canada child benefit will drop starting in the 2018-19 fiscal year, going from $22.8 billion to $21.8 billion.

Does the member know why her government will reduce the amount allocated to the Canada child benefit in its budget by $1 billion over four years?

Is it because the benefit will not be adjusted for inflation? Is it because the government thinks that families' incomes will increase so much that they will not be eligible for the benefit?

Can the member tell us why the government is cutting $1 billion from this benefit?

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, I want to thank my colleague opposite for his excellent question.

What we actually did is this: before the election, we listened to Canadians, and during the election campaign, we promised to invest in families, in the middle class, and in our children.

We therefore made changes to the Canada child benefit so that it is fairer, automatic, and tax-free and benefits all children. More importantly, it will lift 300,000 children out of poverty. The fact is, that is what we promised and that is what we have done.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I would first like to mention to my colleague that I am always a little surprised to see how people join a party, get elected, and become part of a government that made such huge promises, particularly in Quebec.

I cannot help but scratch my head, thinking that, clearly, governing is about making choices. Her government specifically chose not to support Bombardier and small businesses, although it promised to make evidence-based decisions. Knowing where her riding is located, I am sure that many people there who work in the aerospace industry will be asking their MP how she can support such an initiative.

An omnibus bill like this one certainly muzzles the opposition, but it also muzzles members like herself, who do not have much say in the matter and who will obviously have a hard time explaining this to their constituents.

I would like to hear her thoughts on that.

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, I thank my colleague for his question.

As I said earlier, we listened to Canadians before the election. We held round tables and decided to invest in families for the middle class. With respect to Bombardier in particular, we did not break our promises. We are in talks to garner better offers and support Bombardier. The fact is that we are waiting for the negotiations and will update the House on those negotiations in due time.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I appreciate the passion and strong advocacy the member expresses, whether in here, in caucus, or wherever she might be.

Could the member reflect on the importance of the health care accord and how our government is working toward achieving that? All Canadians want to see us demonstrate leadership on this, and we have. There are $36 billion, a record high amount, going toward health care this year.

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, I thank my colleague from this side of the House.

During the campaign, we promised to invest in families, the economy, and infrastructure. We also talked about health, which is under provincial jurisdiction. We promised huge investments to help people, to reduce wait times, for mental health, and for seniors. That is what we promised before the election, and that is what we will do.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Renfrew—Nipissing—Pembroke, National Defence; the hon. member for Sherbrooke, Canada Revenue Agency; the hon. member for Laurier—Sainte-Marie, Foreign Affairs.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, as the member of Parliament for Renfrew—Nipissing—Pembroke, I am pleased to have this opportunity to speak on behalf of the good people of my riding. I thank them for the confidence they have placed in me to be their elected representative, and I in return promise to do my best to protect their interests.

People in my riding are concerned over the contents of Bill C-15, which implements most of the government's first federal budget. They are concerned about the huge, never-ending deficits contained in the budget and the legacy it leaves for their families.

I am proud of the Conservative government that left a budget surplus. In fact the debt-to-GDP ratio was lower than it was when we got in, despite experiencing the greatest global recession since the Great Depression. We balanced the budget, running a $1.9-billion surplus in 2014-15. The books were also $600 million in surplus when we left office in October 2015, which was confirmed by the non-partisan parliamentary budget office. We gave Canada a healthy financial balance sheet with rising revenues that could have been used to pay for the Conservative small business tax cut that was reversed by the government.

The difference between Conservative debt versus Liberal debt is that Conservatives will go into debt like a person getting a mortgage on a home, eventually owning a home and having a place to live while paying off the mortgage. The Liberal budget is like someone going into debt by using their credit card to buy groceries without the funds to make the minimum monthly payment on the credit card.

Under Conservative budgets, eventually the individuals own their homes. Under the Liberals budget Canadians are never expected to pay off the mortgage and go hungry. It is left to the next generation to keep paying the mortgage on the family home.

A budget document is supposed to inspire confidence in an economy. Only by inspiring confidence will consumers loosen their purse strings and entrepreneurs invest in their businesses. Unfortunately for Canadians, investors spoke with their actions before the Minister of Finance rose in the House to deliver his first uninspiring budget.

There is a profound lack of confidence in the government. That is evident from the day it was elected. These are the science-based facts. According to Stats Canada, in the fourth quarter of 2015, which was after the 2015 federal election, billions of dollars had been transferred out of the country by Canadian investors. This represents the largest recorded flight of capital since records began to be kept, stretching back before the Great Depression. For the first time, Canadians are net creditors to the United States, an unprecedented occurrence.

It would appear well-connected insiders got all their cash out of Canada while the going was good. What that means for Canadians is that those private investment dollars are not available to create Canadian jobs, forcing Canada to further increase the national deficit while becoming more indebted to foreigners to replace the lost capital.

In another development that is causing a lack of confidence in the government, Canada has sold off all its official gold holdings. The Bank of Canada on February 23, 2016, showed gold reserves at zero. This is in stark contrast with other developed countries that have seen their central banks become net buyers of gold since 2010. Canada now stands as the only G7 nation that does not hold at least 100 tonnes of gold in its official reserves. Out of 188 member countries in the International Monetary Fund, 100 countries hold gold as part of their monetary assets. Canada is now among the 88 countries that have no gold, countries such as Angola, Belize, and Tonga. Are these coincidences or a sign that Canada is headed for financial disaster?

Not since the disastrous budget of former finance minister Allan J. MacEachen, when five-year mortgage rates spiked to over 21%, have Canadians been more apprehensive about their own personal financial security.

It has to be a Canadian record for breaking promises. The first budget deficit is not $10 billion each of the first three years of the mandate as promised. It jumped to $30 billion each of the first three years with no plans to get out of debt and create jobs, if Canadians can believe the $30-billion annual figure. Is it really much higher?

No economist or institution recommended running deficits to finance government waste. In fact, most of the new spending in this budget has nothing to do with promoting economic growth. Any spending on infrastructure is a holdover from Conservative budgets. It was a budget intended to buy votes with the people's money based on election promises, promises that were made to be broken.

Is Canada preparing for a financial disaster? Are savings protected? Those are the questions now being asked of this uninspiring budget that is eroding investor and consumer confidence.

According to the former non-partisan parliamentary budget officer Kevin Page, the budget is heavy on spending programs for government consumption and lacking in details, including when the federal budget would return to balance, which is how our Conservative government left the nation's finances. “It could be better in transparency...it's kind of a budget without a fiscal plan”, according to Page, who also said, “I think there’s going to be pressure to raise taxes with this kind of spending in the budget.”

Higher taxes drive down consumption and investment. This in turn chokes growth and leads to lower tax revenue, which in turn worsens an already out of control debt problem, and so it goes in a vicious cycle that leads to the need to keep raising taxes, credit downgrades, further loss of investor confidence beyond what this budget has already caused, more job losses, and the inevitable deep cuts to things like health care and defence spending that Canadians suffered from when Paul Martin was finance minister.

The non-partisan parliamentary budget officer observed that this is the least transparent budget, certainly when compared to Conservative budgets or even previous Paul Martin budgets.

An example of that lack of transparency is the bank recapitalization bail-in scheme, proposed in division 5, part 4, of Bill C-15, which is page 223 of the budget document. It has seniors, among others, worried. It allows the government to convert a bank's eligible long-term debt into common shares in order to recapitalize the bank. In addition to being concerned about bank deposits, any retirement savings that included the bank shares would be exposed as well.

Canadians entrust their savings to the chartered banks with the expectation of being able to access those savings when they need their money. I know that the people in my riding do not expect their savings to be redirected into common stock when a bank is in trouble. Canadians may use banks for long-term savings or to park money temporarily in what they thought was a safe place, for example, when they sell their home or a family business.

The Liberal government is scaring seniors about the safety of bank deposits. The question has to be asked.

A preliminary proposal was made by former finance minister James Flaherty regarding the charter bank solvency rules. However, under our previous Conservative government's plan, bank deposits were protected from seizure. In addition to financing the federal spending spree, Canada's banks are holding billions of dollars in debts from the oil sands. The depressed price of oil has already caused tens of thousands of Canadians to lose their jobs. Internationally, there are at least five countries with oil-depressed economies that are teetering on insolvency.

Another example of the lack of transparency referred to by the non-partisan parliamentary budget officer is the decision of the federal government to cover up the costs to Canadian taxpayers of the Ontario “greed” energy act. The greed energy act was brought in by the disgraced former government of Dalton McGuinty, and continues to drive electricity prices in the province of Ontario higher and higher. One of the consequences of that piece of misguided extremist-driven policy is the energy poverty that is now a fact of life in the province of Ontario.

It is important to point out to Canadian taxpayers that part 1 of Bill C-15 implements certain income tax measures proposed in the March 22, 2016, budget by exempting from taxable income amounts received as rate assistance under the Ontario electricity support program. The Ontario electricity support program was brought in as an indirect tax levied on all electricity consumers to provide rate assistance for people who cannot afford to pay their electricity bills. Of all the issues that I am contacted on, the cost of electricity in Ontario draws the most complaints. We call this the Liberal policy of “heat or eat” in Ontario. Federal taxpayers are expected to pick up the costs of this budget tax measure.

What I predicted before the last election is now happening, as we can see in Bill C-15. I predicted that Canadian taxpayers would end up with part of the bill for Ontario's policy disasters. That was predictable because the same policy advisers in Queen's Park, who wrote the greed energy act and fled Toronto, are now hiding in Ottawa as the most senior advisers of the federal Liberal Party. The cozy relationship between the Prime Minister and the Ontario premier is bad for all taxpayers, just as I warned Canadians before the last election.

Nowhere in the federal budget do we see a line for the cost of defending the greed energy act in an international court. Canadians should be shocked to learn that because Canada is being sued under the international trade rules for the activities of the Ontario Liberal Party and international trade is a federal responsibility, Canadians could be forced to pay almost a billion dollars in claims. Because of the lack of transparency in this budget, it is not being disclosed how much the budget must be increased to pay for the other hare-brained green energy schemes that do nothing to protect the environment and cost Canadians jobs.

[William Amos, Liberal, Pontiac, QC]

Mr. Speaker, it is sometimes challenging to listen to such hyperbole, with all due respect, moving from attacks against the Ontario government, which have little merit or place in the House.

Let us set that aside for the time being and focus specifically on the issue of gold. The member suggested that the government is somehow engaging in inappropriate practices by selling off gold assets. It seems to me a reasonable thing to do, advised by many financial experts who suggest that diversifying the investment reserves of different currencies is a good plan.

Would the member opposite like to inform the House of the previous government's initiatives to sell off gold, which I understand to have been a standard practice?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, there is no line item on the gold sale that the current government incurred right before the budget this year. It begs the question of where we would be and how much more in debt we would be had we not sold off the gold reserves already.

However, since the reference was made to the Green Energy Act, I do want to emphasize that Canadian taxpayers are on the hook, if we look at part 1 of Bill C-15, which would implement a certain income tax measure proposed so that it would exempt the taxable income amounts received as rate assistance under the Ontario electricity support program. It is because the rates are so high that not only do Ontario electricity consumers have to pay their own bills and others' bills; now they would have to pay it through their federal income taxes as well.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, like the member for Pontiac, I was somewhat intrigued by the remarks about Canada's gold reserves and whether we should be holding them as part of our monetary base.

My question for the member would be this. Does Canada's role as a major gold producer have any bearing on how much gold it makes sense for us to hold or not hold in reserve?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, now Canada is the only G7 country that holds no official reserves. That puts us into the same category as countries with no gold reserves, such as Tonga, etc. It is incumbent upon us to be part of the higher gold reserves in terms of the G7.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, it is hardly an exaggeration to suggest that the policies of the Liberal brand in Ontario are coming to the federal level, considering the players that are involved. My question for the hon. member is this. With respect to the Green Energy Act, which, as I said in my speech earlier, has been an unmitigated disaster for Ontario, how would that play out federally if that same plan were to be enacted across this country?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, certainly plans are under way to implement the spirit of the Green Energy Act federally. Now that they have put Ontario into bankruptcy, they are looking at the national treasury.

Not only are federal taxpayers expected to subsidize this electricity-subsidy program, but also if the court case at the Hague is lost, taxpayers will be on the hook for another $1 billion, and there is not anything in this budget outlining that either. That is in addition to all the employment insurance extra premiums that employers would be on the hook for across the country because the Green Energy Act has hollowed out manufacturing in Ontario.

[Raj Grewal, Liberal, Brampton East, ON]

Mr. Speaker, it is an honour to speak in support of this government's first annual federal budget.

Just recently I was knocking on doors in my riding of Brampton East just to be accessible to the people who sent me to Ottawa. Many of my constituents expressed support for this government's investments to help middle-class Canadians succeed, investments that would not just help them today but investments that would lay the groundwork for the success of future generations of hard-working Canadians. These hard-working Canadians include our young Canadians, who are some of the best and brightest and deserve great educational opportunities and work experiences for the future.

Here at home and around the world dramatic shifts are taking place that represent both challenges to and opportunities for Canada's economy. Managing Canada's ongoing demographic shift means that we must do more to invest in young Canadians, specifically in post-secondary education, training, and innovation.

When I meet young people at community events, at the door, or at their school events, I see in them limitless potential to be the leaders of today and tomorrow, whether it be in the fields of science, law, business, the trades, or anything else they put their minds to.

I have had the opportunity to attend some of the best post-secondary institutions in this country. I have also had wonderful job experiences that helped me begin my career and prepared me for the honour of being a member of Parliament. Thus, I am a strong believer in the power of education and in training our young people to be the leaders of today and tomorrow. We must invest in this generation to ensure that we have support for our aging population and create economic growth to last generations.

Unfortunately, for far too many Canadians the rising cost of post-secondary education is making it less affordable. Fewer people are able to save for their education and those who receive financial assistance often find it difficult to repay their loans.

That is why budget 2016 proposes a package of reforms to the Canada student loans program that will make post-secondary education more affordable for students from low and middle-income families and ensure that student debt loads are more manageable. This includes a new flat rate student contribution to determine the eligibility for Canada student loans and grants. This will ensure that students are able to gain valuable work experience while not worrying about a reduction in their funding. This will also benefit adult learners who are working or have financial assets.

Budget 2016 would increase Canada student grants by 50%, from $2,000 to $3,000 per year for students from low-income families and $800 to $1,200 for students from middle-income families. Additionally, part-time students would receive $1,200 to $1,800 more per year as they aim to complete their education. This means that approximately 247,000 students from low-income families will benefit and 16,000 part-time students who work alongside school or care for their families will also benefit from the government's investments. This is a direct investment to meet the rising costs of post-secondary education. I cannot understate the impact that this will have for many ordinary young people who are looking to build brighter futures regardless of their family or personal income.

Also proposed is an increase in the loan repayment threshold to ensure that no students across the country will have to repay their Canada student loans until they are earning at least $25,000 per year. This measure will provide assistance of $131 million over five years starting in 2016-17. Finding a good job is hard for young people. We need to do better to ensure our recent graduates are not burdened by student debt until they are on their feet and earning a decent income.

Budget 2016 would also ensure our young people have the real life skills they need that can often only be gained from experience in the workforce. Our government is investing in employment opportunities for youth through the investment of an additional $165 million in 2016-17 for the youth employment strategy.

As well, we are creating an expert panel on youth employment to guide future investments in labour market programming. We are ensuring co-op placements and work-integrated learning opportunities for young Canadians through an investment of $73 million over four years, starting in 2016-17 for the post-secondary industry partnership and co-operative placement initiative. We would help young Canadians gain valuable work and life experiences through an investment of $105 million over five years to support youth services.

Additionally, there are numerous other provisions in our budget that would benefit young people. For example, by investing $3.4 billion over three years to upgrade and improve public transit systems across Canada, we would make it easier for young Canadians to get to and from work and school, and it is also more environmentally friendly.

By way of another example, with the millions we are investing in small businesses and innovation, such as through the industrial research assistance program, we will create new jobs in the future for our young Canadians to transition into.

In all, budget 2016 is a strong follow-through on the commitments that we made in last year's campaign.

We need to ensure that we invest and create the opportunities for young Canadians to succeed. The future of Canada depends on the quality and work ethic of our young Canadians. By investing in them, we are investing in a stronger and more prosperous Canada for years to come.

I ran to become a member of Parliament to ensure future generations had the same opportunity as me. As the son of a taxi cab driver and a factory worker, I got to attend some of the best schools across this nation. I got to graduate from Osgoode Hall Law School, join as an interior lawyer, be called to the Ontario Bar, and become a member of Parliament.

When I go to schools across my riding, I see the potential in young Canadians. I see that in Canada, if one works hard, one can achieve anything, and that education is the single most powerful tool to change one's circumstances and achieve one's dreams. Therefore, it is very important that in budget 2016 we are investing in young Canadians. We are investing in post-secondary education for all Canadians across this country. If one has the work ethic and the grades, financial assistance will be there to achieve one's educational dreams.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I thank the member for Brampton East for his speech. We have taken a few flights together to Toronto.

As the member mentioned, it has been a theme today of the student loan and grant provisions in the budget. However, I wonder if he can comment on the Federal Reserve Bank of New York report that was written not too long ago. July 2015 was the revised edition, and in March 2016, there was Staff Report No. 733, which studied the relationship between the federal U.S. student loan program and how it actually contributed to increasing tuition costs in the United States. The relationship it found was that the subsidized loan effect is most pronounced for the most expensive degrees offered by private institutions, two-year degrees, and vocational programs.

We are trying to help students by paying for their education, but this is the latest data coming out of the United States where they provide significant contributions through loan and grant programs. I have a U.S. master's degree, and I am familiar with how expensive it is to get a post-secondary education there.

However, for these types of programs, when we increase them, the correlation is that we increase the cost of the programs of post-secondary institutions. In this case, the Federal Reserve Bank of New York found that the relationship was mostly between expensive programs, vocational programs, and two-year programs.

Therefore, is the effect of this increase in the budget going to be that program costs in Canada might actually start going up in relation to how much they are being subsidized? I would like to hear the member's comments on this.