Debates of Oct. 16th, 2017

Ethics

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I want to reassure the member that the finance minister has always worked with the Ethics Commissioner, in full transparency, to make sure that he is in full compliance with the rules and the recommendations of the Ethics Commissioner. That is what Canadians expect. That is what we will keep doing.

Pensions

[Karine Trudel, NDP, Jonquière, QC]

Mr. Speaker, on Friday, Sears received approval to liquidate its assets. Because our bankruptcy laws are inadequate, our workers and retirees will be the biggest losers. They could lose their pensions and their benefits.

It is absolutely ridiculous that the Liberals are letting the big CEOs off the hook at the expense of workers and retirees, who sometimes struggle to make ends meet.

When will the Liberals join the NDP in making workers and retirees preferred creditors?

[Navdeep Bains, Liberal, Minister of Innovation]

Mr. Speaker, we are always concerned about the impact on employees and their families.

That is why we are monitoring the situation very closely. We understand that this is very difficult for many regions, for many of the workers and their employees, as well with Sears Canada. That is why we are closely looking at the situation that is before the courts. We cannot comment on any of the specific matters that are before the courts, but we are also looking at what benefits we can provide. We will continue to engage and work with the workers and their families in the different communities across the country.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Well, they can start by taking action.

Mr. Speaker, last Friday, Sears Canada received court authorization to liquidate its assets. Because of our inadequate bankruptcy laws, shareholders and managers like Edward Lampert will end up even richer than before, while workers and pensioners will lose jobs, benefits, and some part of their pensions. The worst part is that it is legal. It is scandalous that the Liberals continue to place the interests of wealthy and well-connected insiders above the well-being of working Canadians and retirees. When will the Liberals join the NDP to make workers and pensioners the first priority?

[Navdeep Bains, Liberal, Minister of Innovation]

Mr. Speaker, I can understand and appreciate that this is a very difficult time for the workers and their families in many communities across the country. I understand that the current Sears Canada pension fund assets are held in trust and, as such, must be used solely for the benefit of pensioners. It is completely protected from the claims of other creditors. The unfunded pension portion will have a claim, and the proceeds of those claims of liquidation will be a priority for the pensioners as well. We will continue to monitor the situation. We are going to work with the workers, we are going to work with their families, and we are going to work with the different communities.

Ethics

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, the Minister of Finance is always forgetting things. He forgot his keys. He forgot his villa in France. He forgot even the corporation he holds that villa inside of. He forgot the $30 million of shares in Morneau Shepell, and he forgot to put that into a blind trust. He forgot today to tax any of his own family fortune.

Why is it that the only thing that the minister does not forget is his wallet?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, the Minister of Finance has always worked closely and openly with the Conflict of Interest and Ethics Commissioner to ensure that all rules are followed.

The opposition member wants to hijack the debate and play political games. However, on this side of the House, we are focusing on Canadians. That is why today we are cutting the small business tax rate, which will stimulate growth.

The economy has been growing since we took power. We have created 437,000 jobs. The Conservatives cannot claim to have such a good record.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, in his very first budget, the finance minister cancelled the small business tax cut, breaking a Liberal platform promise. Now they expect us to pat them on the back for unbreaking their promise. It is kind of like his Morneau Shepell subsidiary that he keeps in Barbados, a tax haven for which he is responsible for overseeing a review.

Are any of the measures he is proposing today planning to impose taxes on Morneau Shepell's assets in Barbados?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, we have always been clear with Canadians about our intention to lower taxes for small and medium-sized businesses. We made that promise during the election campaign because we recognize how important SMEs are. We will always support middle-class entrepreneurs.

We have also always said that we want to improve the fairness of certain aspects of our tax system. That is exactly what we are doing after having consulted Canadians across the country in order to be sure that we are doing things right.

[Maxime Bernier, Conservative, Beauce, QC]

Mr. Speaker, during the Liberal leadership race, the Prime Minister promised Canadians new, stricter standards of ethical behaviour that would ensure that the fortune he received from his father in stocks and bonds would be placed in a blind trust.

We now know, however, that the Minister of Finance never bothered to comply with that standard. He is not complying with the code of ethics or the law.

When will the Minister of Finance show some respect for Canadians and comply with the code of ethics?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, the Minister of Finance has been working with the Conflict of Interest and Ethics Commissioner from the beginning to make sure that he is in full compliance with her recommendations. That is what Canadians expect, that is exactly what the minister is doing, and we are proud of that.

[Maxime Bernier, Conservative, Beauce, QC]

Mr. Speaker, with a blind trust, one normally has no say or control over the management of their own fortune.

Today we learned that the Minister of Finance, while managing the country's finances, can also see to his own fortune and make it grow. We know that his fortune is not in a blind trust.

Why did the Minister of Finance introduce a tax rule today that does nothing to ensure that Morneau Shepell pays taxes in compliance with the law?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I can assure the member that the Minister of Finance has always worked closely with the Conflict of Interest and Ethics Commissioner in full transparency and followed her recommendations regarding a blind trust.

I am very proud to work with a minister who has lowered taxes for nine million Canadians, who today announced a tax cut for SMEs, who has helped 900,000 low-income seniors through the guaranteed income supplement, and who has reduced child poverty by 40%. I think we can be proud of our Minister of Finance.

Taxation

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, after Netflix was allowed to bypass our tax laws, the Canada Revenue Agency issued a new interpretation that would tax employee discounts, affecting small retail businesses everywhere.

You heard right. The Minister of National Revenue would rather keep chasing after middle-class employees than the CEOs of major corporations who hide their income in tax havens. It is absolutely shameful.

How can she allow a giant like Netflix not to pay taxes, while employee discounts will be taxed?

The minister said that she was not aware. Come on. Who is in charge of the Canada Revenue Agency? Is it the minister?

When will she take responsibility on this issue?

[Sean Casey, Liberal, Parliamentary Secretary to the Minister of Canadian Heritage]

Mr. Speaker, our government has already said that it would not tax Canadians more. Our vision for a creative Canada involves investing in creators, ensuring their success, and showcasing them on the national and international stage.

Canada's arts and culture sector is a $55-billion industry that accounts for over 630,000 jobs. That is why we continue to support our creators.

International Trade

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, in this fourth round of NAFTA renegotiations, President Trump continues to speak negatively about the deal, even while sitting beside our silent Prime Minister. The Americans are clearly bargaining in bad faith, placing poison pills on the table, such as the requirement that vehicles contain at least 50% U.S. content. The automotive sector has stated that not only will this backfire, companies will simply pay the low 2.5% tariffs instead of ensuring the content is regionally sourced and jobs are secure.

When will the Liberal government present its plan to protect the future and health of Canadian jobs and our auto sector?

[Andrew Leslie, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs (Canada-U.S. Relations)]

Mr. Speaker, Canada is the biggest market for the United States, bigger than China, Japan, and the U.K. combined. We are negotiating with the most protectionist U.S. administration since the 1930s. We never said these negotiations would be easy. A modernized NAFTA remains a goal, but we cannot accept proposals that will leave the middle class in all three countries, especially Canadians, worse off.

We will always defend our national interest and stand up for Canadian values.

Taxation

[Paul Lefebvre, Liberal, Sudbury, ON]

Mr. Speaker, as you know, I own a small business and had a career in tax law.

The discussion on tax reform created many concerns for small business owners throughout the country, including myself.

Could the Parliamentary Secretary to the Minister of Finance update the House on what we are doing as a government to support small businesses to grow our economy?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I want to thank the hon. member for his tireless work on behalf of small businesses and his very constructive feedback with these proposals.

I am very proud that our government today has announced that we are lowering the corporate tax rate for small businesses to 9% by 2019. We have always been the government of growth, of inclusive prosperity, and we will always be behind small entrepreneurs. The small business tax rate was already the lowest in the G7. That is going to make our businesses more able to compete, grow, prosper, and contribute. We will always be behind small businesses.

Government Expenditures

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Mr. Speaker, the Liberals tried to cover up spending nearly a quarter million dollars on the design of their 2017 budget cover, which included $90,000 in so-called talent fees. They obviously do not have the talent of respecting taxpayer dollars. While $212,000 is not much to the owners of family fortunes and French villas, it is several years of wages for middle-class Canadians.

How can these Liberals justify sticking hard-working taxpayers with a quarter million dollar bill for nothing more than some fancy photo images on a budget cover?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, to set the record straight, the Conservatives spent twice as much every year they were in power. I rest my case.

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Mr. Speaker, only a Liberal would think $600 is more than $212,000. We know the Prime Minister loves his covers, whether it's Rolling Stone, Vanity Fair, and apparently budget covers as well. In two years, the Liberals have spent nearly $400,000 on budget cover images. Even the Minister of Finance and the Prime Minister can appreciate $400,000. That represents a down payment on a French villa or half of a Mercedes Roadster.

How can the Liberals justify sticking taxpayers with $400,000 for two years' worth of budget cover pages?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I just want to remind everyone that the previous government spent millions on flashy television advertising to promote and brand itself. They spent twice as much as we have. We have taken a much more targeted approach to our advertising and to our branding. He should look at the numbers of the previous government before standing in the House to ask a question like that.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, $200,000 for a book cover, $200,000 for the cover of the federal budget, $200,000 for a piece of paper, that is the Liberal government's trademark. This was not a gaffe or a mistake. It was an actual decision by the Liberals.

The hon. member for Louis-Hébert says that his government is working for the less fortunate. What does he have to say to them after spending $200,000 on a piece of a paper?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I would simply say to them that the previous government spent $750 million on promoting its brand when it was in power.

We are taking a much more targeted approach, one that is very responsible with taxpayers dollars. We took the exact same approach in our last two budgets, and spent half as much as the previous government spent on its budget.

I am very proud of our record.