Madam Speaker, regarding the motion before us, I think that it is important to note that the Finance Minister has always worked in a very proactive and very transparent manner with the Conflict of Interest and Ethics Commissioner since he took office. He even did so before taking office. The Conflict of Interest and Ethics Commissioner’s recommendations to the finance minister were, among others, to set up a screen preventing conflicts of interest, and to make it known to the public, which he did. That was the first thing he did. I think that what is expected of all parliamentarians is to ensure that they always follow the recommendations and rules as they were designed by the Conflict of Interest and Ethics Commissioner around the general direction that was laid out for parliamentarians. That is what the finance minister did.
The minister indicated last week that he had first called the Conflict of Interest and Ethics Commissioner to ensure that she was able to conduct an in-depth review of his situation and so he could be in full compliance with her recommendations at all times. He also announced that he would go beyond her initial recommendations. He decided to place all his assets in a blind trust and to divest himself of his shares in the company in question, Morneau Shepell.
If I may, I will continue my speech, which deals with the steps the finance minister has taken and the work that he has done for all Canadians. All politically-motivated distractions aside, the Minister of Finance has done legitimate work; I believe that to be the issue here, and that is what I am talking about.
One thing that was clear following our consultations is that it is important to limit unnecessary red tape for hard-working small business owners and to recognize the importance of preserving family farms, working with Canadians to ensure that family farms can still be transferred to the next generation, and relying on a gender-based analysis of the final proposals so that any changes to the tax system promote genre equity.
As the Prime Minister confirmed, we are preparing simplified proposals aimed at limiting the ability of a small number of high-income owners of private corporations to reduce their personal income tax by sprinkling their income to family members who are not involved in the business.
It must be noted that the vast majority of private corporations will not be affected by the proposed changes to income sprinkling. Indeed, only 50,000 private family businesses split their income, according to our estimates. That is a small percentage, about 3% of Canadian-controlled private corporations.
We are making changes to eliminate tax benefits that are only available to the wealthiest individuals, who can hire sometimes very costly accountants. We have listened to small business owners, professionals, farmers and fishers, and we are acting on what we heard to avoid unexpected and unwanted consequences.
The finance minister, who heard small business owners, announced that our government would not go ahead with the implementation of measures related to the conversion of income to capital gain. During the consultation period, business owners, including many farmers and fishers, informed the government that those measures could have unexpected consequences, particularly on taxation at the time of death, and create problems when a business is transferred to the next generation.
Our government will work with family businesses, including farming and fishing enterprises, so that the transfer of a business to the next generation can be as easy and efficient as possible. We also continue to carefully review all observations received by the government.
In terms of some key accomplishments, in addition to the middle-class tax cut and the Canada child benefit I mentioned earlier, I would like to highlight some of the government's other achievements to help support middle-class Canadians.
For example, over the past two years the government prioritized the movement of people and goods by making historic investments in our infrastructure. Our government made long-term investments in our infrastructure because it believes it to be crucial to the future of our country and our economy.
That is why, in our first budget, we set aside $11.9 billion over five years to support public transit, green infrastructure, and social infrastructure.
In the 2016 fall economic statement, we announced a further $81.2 billion that will go towards critical infrastructure over a period of 11 years. These funds will support public transit, green infrastructure, social infrastructure, transportation that supports trade, Canada's rural and northern communities, and its smart cities. These are investments that will improve the way Canadians live, commute and work and will also benefit our economy.