House of Commons Hansard #213 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was drug.
Justin Trudeau LiberalPrime Minister
Mr. Speaker, our government is proud of the Atlantic growth strategy that we established with the premiers of the Atlantic provinces to invest in growth, innovation, immigration, and opportunities for the Atlantic provinces to thrive and succeed.
After 10 long years of being ignored by the previous government, we are proud of our strong voices from Atlantic Canada that stand up every day to create good jobs and a good future for all Atlantic Canadians and all Canadians.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, today is a sad day for Canada, for Quebec, and for every one of Canada's provinces. TransCanada pulling the plug on energy east is the Liberal government's doing. By changing the rules of the game, by changing the assessment rules, the Liberal government jeopardized a major project, a $15-billion investment that would have put 3,000 people in Quebec to work during the construction phase. Who is happy about this in the meantime? Oil producers in Venezuela, Algeria, Iraq, and other countries, that is who.
Is the Prime Minister proud of this mess?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, Canadians know full well that the situation has changed since TransCanada first proposed the energy east project. Oil was $90 a barrel at the time and now it is worth half. The Conservatives were unable to get any pipeline approved. We have approved three. The conditions have changed. We continue to defend good jobs while protecting the environment at the same time, something the former Conservative government was completely incapable of doing.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, is the Prime Minister aware that the reason the conditions have changed is that he changed them? It is because of him that, today, it is much harder for business people to make plans. It is a double standard. He has made things much harder for Canadian oil, while holding the door wide open for foreign oil. Quebec has two refineries that produce and purchase $10 billion worth of foreign oil. We are giving all that money to foreign companies rather than keeping it here in Canada.
Why does the Prime Minister have so much contempt for Canadian oil?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, Canadians know full well that, for 10 years, the former Conservative government was unable to approve any pipeline projects and was unable to help the energy sector. It also did nothing for the environment or to protect the future. We, on the other hand, as a government, have been able to approve some projects and have also been able to protect the environment by setting a pan-Canadian price on carbon and making environmental protection a priority. That is what Canadians expect, and that is what we did.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, the parliamentary budget officer confirmed in his report released today that the Liberal government's health transfers, much like Stephen Harper's, are inadequate and will not meet the needs of the provinces. That is exactly what the provinces have been saying: they are going to face serious budgetary pressures because of our aging population. Until the federal government has the courage to contribute its fair share, the provinces will never have the means to improve their health care systems.
When will the Prime Minister live up to his promise to adequately fund health care?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, this government is very proud to have been able to negotiate health accords with the provinces for the next few years. We were able to make historic investments in mental health because we recognize the real needs that exist in that area. We also made historic investments in home care services to help our seniors, to help those most vulnerable. This government is very proud to have worked with the provinces to fulfill its commitments to Canadians. We will continue to provide a health care system for all Canadians across the country.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, evidence seemed to convince the parliamentary budget officer, and the PBO predicts also that seniors will become even more dependent on government services in the years to come. The amount that seniors will need from these services is projected to double. This is at a time when more than one-quarter of a million seniors already live below the poverty level. So far, Liberals have no plan to help seniors. In fact, yesterday, the Prime Minister mocked the NDP for calling for a national strategy. When will the Liberals finally get serious about lifting seniors out of poverty?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, on the contrary, I pointed out that while the NDP members were talking, we were delivering. We delivered an increase by 10% to the guaranteed income supplement for our most vulnerable seniors. That is $1,000 more in the pockets of seniors who really need it.
We are moving forward on a national housing strategy to ensure that our most vulnerable seniors will have security and stability in where they live. We have moved forward on home care with historic investments with the provinces that will make sure that we are giving our seniors the support they need. We have moved forward on a historic strengthening of the Canada pension plan that is going to ensure that our seniors of today and our seniors of tomorrow have all the support they need.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, we now know that public officials were raising major concerns about the implementation of the Phoenix payroll system. However, instead of listening to these concerns, the government gave millions of dollars to two massive corporations, which were the same companies selling Phoenix in the first place. What did we get? We got a pay system that does not pay employees.
When Canadians buy a product that does not work, they go back to the store and ask for a refund. My question is simple. Where is our refund?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, we take very seriously the situation of the Phoenix pay system. That is why we are working extremely hard with the public servants and with the public sector unions across government to ensure that we deliver a pay system that works for Canadians, that pays them on time and appropriately. This is something that we continue to work on diligently, and it is something that we know Canadians expect of us.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, it is always someone else's fault.
The Liberals have never been able to explain why they rushed ahead with the implementation of the Phoenix pay system. The Liberals, not the Conservatives, went ahead with it. They gave it the green light.
Now we are learning that the government paid PricewaterhouseCoopers and IBM millions of dollars. Who was behind the bid for the Phoenix system? It was PricewaterhouseCoopers and IBM. My question is simple.
Why did the Liberals ignore the advice of their own employees who warned them about the pending fiasco?
Justin Trudeau LiberalPrime Minister
Mr. Speaker, it is unacceptable that public servants are not being paid appropriately and on time. That is why we are taking our responsibility in this matter seriously and we are working diligently to resolve this situation.
We are not making excuses. We are working very hard on this and we will continue to work with the public service and public service unions to fix the problem once and for all.
Pierre Poilievre Conservative Carleton, ON
Mr. Speaker, documents in my hand, which I have obtained, show that the finance minister's billion dollar company, Morneau Shepell, has registered its subsidiary in Barbados, which Oxfam lists as one of the 15 top tax havens in the world. Because of the Canada-Barbados tax treaty, companies pay virtually no tax at all on profits they ship back to Canada.
The finance minister's plan to target rich tax evaders goes after family farms and local businesses, but does nothing about tax havens like Barbados. Why?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is fully committed to fighting tax evasion and aggressive tax avoidance.
In our first two budgets, we invested more than $1 billion, which led to the recovery of nearly $25 billion. There have been 627 cases transferred to criminal investigation, 268 warrants, and 78 convictions.
Let me be very clear. The net is tightening. Canadians expect no less from us.
Pierre Poilievre Conservative Carleton, ON
Mr. Speaker, according to the CBC:
Part of the draw is Barbados's corporate tax rate of between one and 2.5 per cent. And once that modest amount is paid, thanks to the 1980 tax treaty any leftover profits earned at a subsidiary based or linked to there can be brought back to Canada tax-free.
When the finance minister launched his crusade to target tax cheats, he only went after plumbers and pizza shop owners and farmers, but did nothing about this Barbados loophole. Why?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, as I just said, our government is fully committed to combatting tax evasion and aggressive tax avoidance. It has invested $1 billion over the past two years, which is more than the Conservatives on the other side of the aisle managed to do in 10 years.
We are getting the job done. We are on track to recover $25 billion, not to mention the cases transferred to criminal investigation, the search warrants, and the convictions. As I said, the net is tightening. We will continue our work.
Pierre Poilievre Conservative Carleton, ON
Mr. Speaker, she should talk to the finance minister about that because his billion dollar family business has a certificate of registration in Barbados, yet the very day the minister rolled out his tax increase on local businesses, he was asked about the Barbados treaty and said, “But we're not going to throw the baby out with the bathwater.”
Why did he forget to mention that the baby in question was a Morneau Shepell subsidiary?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is firmly committed to combatting tax evasion. The $1 billion we have invested over the past two years has allowed us to hire 100 additional—
The Speaker Liberal Geoff Regan
Order. I have to remind members that when they make a lot of noise when it is not their turn to speak, they could be taking a question away from a colleague.
The hon. Minister of National Revenue is speaking.
Diane Lebouthillier Liberal Gaspésie—Les-Îles-de-la-Madeleine, QC
Mr. Speaker, our government is fully committed to combatting tax evasion and aggressive tax avoidance. Our actions over the past two years make that abundantly clear. We have invested the historic amount of $1 billion, which has allowed us to hire 100 additional staff and examine four jurisdictions per year. As I said, the net is tightening.
Pierre Poilievre Conservative Carleton, ON
Mr. Speaker, the question was not whether they are spending more money on tax collectors. The question was with regard to the treaty with Barbados—
Pierre Poilievre Conservative Carleton, ON
—when the finance minister said that he would not do any deal, that he would not be involved in any matter—
