Debates of Nov. 6th, 2017

Budget Implementation Act, 2017, No. 2

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Speaker, I appreciate the member's affinity for infrastructure investment. I was with her in her riding when we announced infrastructure spending at the hospital at CFB Borden. I was happy to be there with her and share some of the good news with some of her constituents, who I can assure members very much appreciated that investment in infrastructure. As the member mentioned, it is very much needed, not only in her riding but across Canada.

However, our investments in infrastructure and in the infrastructure bank, indeed any investments we make, as any Canadian does, are made with a look to getting a return on that investment. We need to look globally around the world for how we can leverage Canadian expertise and Canadian capital to get the best return on that expertise and capital. That is the benefit of investing globally. This not an either/or proposition. Of course, we will continue to invest in Canada and all the provinces of Canada, but we also need to keep investing globally to be a player in the global infrastructure world and to make sure there is a return on investment for Canadian investors, wherever they choose to invest their capital.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I thank the hon. member for his attention to SMEs.

If the government of the day paid attention, it would see that world investment is shifting toward renewable energy, not fossil fuels. Yet the current government has been chastised by both the Commissioner of the Environment and Sustainable Development and the Auditor General for not only refusing to provide the schedule for how it is going to meet its commitment to remove perverse subsidies for the fossil fuel sector, but also for the pathetically tiny shift in fossil fuel write-offs in its budget, which we are debating here today. My understanding is that it simply would move from 100% write-off to a 30% write-off, and that this will continue up to even 2021.

Could the member tell us, given his interest in SMEs, his government's schedule to finally remove the perverse subsidies, which amount to almost $6 billion a year, and of that amount, how much is reduced in this bill?

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Speaker, it is always nice to hear from the member for Edmonton Strathcona. We had an opportunity last week to sit together at the special hearing of the international trade committee when the Prime Minister of Ukraine was here. It was nice to see her there. I know that we share either Ukrainian heritage or a large Ukrainian contingent in our constituency.

As a member of Parliament, not necessarily a member of the government, I do not have any inside information on that schedule. However, it is not an either/or proposition. This government supports both the oil and gas sector and clean, green technology. I do not think we should be ashamed of that. I do not think that is something bad. I do not think we need to make enemies of certain sectors in this country as a way of pushing a different agenda. There is room in the Canadian economy and the Canadian landscape for both industries. It behooves our government, and it is actually incumbent on us, to support industries that create jobs for Canadians, and I am proud to be part of a government that chooses to do that. I hope we do it for a very long time.

[Arif Virani, Liberal, Parliamentary Secretary to the Minister of Canadian Heritage (Multiculturalism)]

Mr. Speaker, I would like to begin today by acknowledging that not only are we marking the 150th anniversary of Confederation this year, but on this very day are also celebrating the 150th anniversary of the first meeting of this very Parliament. It is an honour to speak on such an auspicious occasion.

I rise today to speak about the second budget implementation act, Bill C-63. I will address key parts of this implementation act, which I know will have a positive impact on and benefit the residents of my riding of Parkdale—High Park.

Over the last two years, I have heard from my constituents on issues that affect them and their families daily. I have heard their concerns and what they would like to see addressed by the government. I know that the positive measurers included in this proposed act will help to resolve my constituents' most pressing concerns.

Canada has the fastest growing economy in the entire G7, and as a government, we are dedicated to reinvesting the benefits of that growth back into Canada to better the lives of my constituents in Parkdale—High Park and, indeed, all Canadians. Our government will lower taxes on small businesses, offer more support to families through the Canada child benefit, enhance the working income tax benefit, and also advance indigenous reconciliation.

There have been 500,000 jobs created since 2015. Over 1.5 million low-income workers will receive support to advance their careers and provide for their families. Canada's unemployment rate has dropped from 7.1% in September 2015, just before the last federal election, down to 6.2% in September of this year. Youth unemployment figures across the country are also at historic lows. Building on this positive growth, our government is enhancing the working income tax benefit by $500 million, which will benefit 1.4 million Canadians. Additionally, to encourage entrepreneurship and innovation in our communities, we are lowering the small business tax from 11% to 9%.

This is a strong budget that will benefit people from coast to coast, including my fellow residents of Parkdale—High Park. This will be done by ensuring tax fairness, thanks to this new budget implementation act. It will put Canada's most skilled, talented, and innovative individuals at the heart of our future economy, creating more jobs both in the short term and the long term. We will also be implementing an agenda that addresses the changing nature of the economy to ensure that it will work for all Canadians.

This legislation allocates $400 million for the venture capital catalyst initiative. This will directly benefit start-ups, entrepreneurs, and small businesses in Parkdale—High Park and right around the country. It is the small business owners, like those in the neighbourhoods of my riding, like the Junction, Swansea Village, and Parkdale itself, and Bloor west village that not only stimulate our economy but also support the families living in our very community.

In the last couple of years, it has been a pleasure to engage in conversations time and time again with small business owners in Parkdale—High Park, who make up the fabric of the fantastic neighbourhoods where we live, and shop, and raise our families. I also held a town hall with small business owners at the end of September. I listened carefully to their concerns and relayed those concerns back to cabinet and the minister.

Our government has responded. As a result of this important feedback, we are determined to limit any changes in the tax treatment of passive income to 3% of Canadian businesses who hold more than $1 million in their corporate accounts. We have also decided not to move forward with measures relating to the conversion of income into capital gains.

I know that many of my constituents work long hours, and sometimes maintain more than one job to advance their careers and to support themselves and their families. Therefore, I will address the working income tax benefit, because this zones in on so many millions around this country, the hard-working Canadians, whether they live alone, with families, or are supporting seniors. In fact, the working income tax benefit is particularly zoned in on those living alone, who are now, according to the most recent census, the most common type of household in the entire country. For those people, it will alleviate the stress of managing the cost of housing and living expenses throughout a given month. For a single person balancing escalating costs, it will ease the transition back into the workforce. It will also reduce income inequality and help to reduce poverty in this country.

In addition to assisting working Canadians, we are acting on our priority of supporting communities' most vulnerable people: children and families in need of additional resources. We are doing so through this budget implementation act by enhancing the Canada child benefit. Once we heard from families across the country, our government took measures to cut taxes on Canada's middle class, as well as to introduce the Canada child benefit, a much-warranted change that creates tax-free benefits targeted to help those who need it the most.

The new Canada child benefit has already been tremendously successful. In fact, it informs a lot of the economic growth I referenced in the first part of my remarks. As the result of this very program, nine out of 10 families already benefit from the CCB, and 300,000 children have been lifted out of poverty as compared to the year 2014-15. The impact of these measures cannot be underestimated. This impact is being felt by families who contribute to our communities and local economy by investing back into communities with things like piano lessons at High Park Music, swimming lessons at the Parkdale Community Recreation Centre, or simply by purchasing healthier food for one's kids at the various farmers markets in my riding.

As a result of the enhancements to the Canada child benefit, in 2017-18, more than 1.2 million will have benefited in the province of Ontario, my home province, and they will continue to receive additional support. Why? Because our government has made a commitment to further strengthening the Canada child benefit to make sure it keeps pace with the cost of living. Starting next July, two full years ahead of schedule, the tax-free Canada child benefit amounts for families with two children will go up by approximately $200. It does not stop there. The following year, those families will see about $500 more.

One of the major concerns I have heard in conversations with many of the parents and families living in my riding of Parkdale—High Park is the cost of raising a family. In order to effectively address this, we are allocating more support for families, through the CCB, to help meet the numerous ongoing costs of raising a family. As the father of two young boys, I understand what it means to raise a family. I have also heard from countless people in my riding about those challenges. We are working in a targeted way to address the needs of those people in my community and in communities around this country who need the help the most.

The stats are quite overwhelming. In my riding alone, 10,290 children benefited from the Canada child benefit in July. The average payment that month was $510 per family, for a total of $3.255 million distributed to families in the riding of Parkdale—High Park. In addition to the benefits received by my neighbours through the new and enhanced programs I mentioned, this budget implementation act also includes measures that would entrench and fortify our commitment as a government and nation to reconciliation with indigenous persons.

As Canadians, we must continue to take a critical look at our past as we contemplate the future of our relationship with indigenous persons. It is vital for all of us to establish a spirit of reconciliation so that Canada's next 150 years leave a positive legacy. I am honoured, distinctly in my role as Parliamentary Secretary to the Minister of Heritage, to be working with the Minister of Heritage on advancing our government's efforts to preserve, restore, and revitalize indigenous languages. This goes beyond the celebration of our collective history. It is an opportunity to begin to correct the impact of harmful government policies like the colonial legacy of the residential school system has had on indigenous communities.

Recognizing this, the budget implementation act would invest $90 million over the next three years to support indigenous languages and culture. That includes $69 million in new funding to support things like language classes and culture camps, developing learning materials, and recording indigenous languages through the aboriginal languages initiative. Funding would also support the use of technology to preserve oral histories and the creation of other interactive educational materials. These investments would build tangibly on our government's commitment to working with indigenous persons to co-develop, in the spirit of true reconciliation, an indigenous languages legislation that would help to preserve, protect, revitalize, and promote indigenous languages in this country.

We are investing, as a government, based on the positive gains that have come as a result of Canada's fastest economic growth in nearly a decade, by enhancing the measures that support our small businesses, families, and hard-working people, and furthering our commitment to reconciliation. I urge all members of this House to vote in support of this bill to advance these important initiatives.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I too feel very honoured to be standing to speak on the 150th anniversary of the first sitting of this place, and it is important that we are talking about the budget implementation act.

The one thing that is not clear to me as of yet is this Chinese infrastructure bank, where we are spending half a billion dollars. I know the communications adviser for the minister suggested that it is going to create jobs here at home. I am not sure what fantasyland that is from, where spending half a billion dollars in China building infrastructure is going to create jobs here at home for the middle class.

I would appreciate hearing a strong rationale, in terms of why the investment of half a billion dollars of taxpayers' dollars is going to help the middle class here at home and create jobs.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Mr. Speaker, the short answer is that by improving our relationships with foreign nations, including diversifying our trade and investment portfolios, we are stimulating the economy here at home. Our commitment to infrastructure is unprecedented. Our commitment to infrastructure investments is unprecedented. What we are doing with the Asian infrastructure bank is indifferent in terms of what we are investing here. We are working toward building the economy by promoting infrastructure development. That includes developing greater ties with diverse partners around the planet, including the Asian side of the equation.

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, I have been calling attention, along with colleagues from the other side, to a particular part of the budget implementation act around the unpaid leave for victims of domestic violence. I would like the member to comment on perhaps an unintended consequence of an unpaid leave for domestic violence. Many people will not be able to access an unpaid leave in a situation of domestic violence, because often victims are controlled economically by the abusive partner at home. Therefore, coming home with a paycheque that is less than it was before and then having to explain to an abusive partner why it is not the same amount, I think my colleague would understand how that would be a huge barrier to victims accessing this leave. I wonder if the member would agree that it needs to be a paid leave for this instance.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Mr. Speaker, I thank the member opposite for the intervention, because it highlights an extremely important issue. We have heard time and again about the importance of leave in the context of the domestic violence situation and gender violence in this country and around the planet. Our government takes this issue very seriously, in terms of ensuring there is flexibility in terms of arrangements, that people are empowered and not unempowered, and that people do not fear reprisals to accessing leave. It is something that needs to be studied and examined by our government. I would hope that this kind of important intervention gets studied closely at committee when the budget bill is being evaluated.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I want to pick up on one thing that the member mentioned at the beginning, and that was the change in the economy in Canada, in particular being the fastest growing economy in the G7. This speaks directly to the budgets that have been presented by this government and what this government has been doing over the past two years. I wonder if the member would like to elaborate on that point.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Mr. Speaker, in my brief response, I would say that it is demonstrating that the notion of investing in an economy to stimulate it has proven to be a successful formula. That is exactly what the head of the IMF said when she came here, that she hoped the Canadian experiment would go viral around the planet. The fact that we are doubling five of the G7 nations and are 40% larger in terms of economic growth than our American neighbours demonstrates that when we took the courage of conviction and campaigned upon a platform to invest in an economy, we did just that. It can be proven to work, and it can be proven as a winning formula that helps us succeed in terms of building the growth that we all desperately want. That is not a partisan issue. Creating jobs and boosting the Canadian economy is something we all share. How we are going about doing it is something we are responding to in terms of what Canadians told us. We believe strongly in that conviction, and we will continue to do so.

[The Deputy Speaker, Conservative, Bruce Stanton]

Before we resume debate, for the benefit of all hon. members, we have passed the five hours of debate on the motion before the House since the first round of speeches on the motion. Accordingly, all of the interventions from this point on will be limited to 10-minute speeches, followed by five minutes of questions and comments.

Resuming debate, the hon. member for Kamloops—Thompson—Cariboo.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, it is unfortunate that I did not get under the wire for my 20 minutes, but I will try to keep my comments confined to 10.

I am pleased to speak to the budget implementation act, but I would like to create a bit of context before I get into a couple of details contained within it. In the 2015 election campaign, the Liberals made specific promises to Canadians. They promised that they would have tiny deficits of $10 billion a year and that they would get back to balanced budgets during their time in office. They also indicated that dollars would be spent predominantly on infrastructure in the provinces and territories.

The first thing we have to recognize is that everything they have done since, in terms of the budget and budget implementation acts, has violated their promise to Canadians. The Liberals made a promise about what they were going to do with respect to deficits and how they were going to spend Canadians' money. That was an important promise, and it is shameful that they are breaking that promise.

The Liberals are breaking their promise at a time when it is not necessary. I will acknowledge that had the economy been struggling, they might have had to provide a bit of stimulus. However, they took office with a surplus budget and a growing economy. The Liberals are quite proud to say that the economy is going well, so why do they need to spend all of this extra money? That is an important place to start.

There are three areas that the government directly controls. It controls the creation of an environment that would be positive for jobs, opportunity, and growth. It controls bringing money into its coffers through our tax system, and it obviously controls how to spend that money. I would suggest that these three functions need to be carefully aligned. In this budget, which deals predominantly with the expenditure side of things, the government is completely out of alignment with the other three features. We need an environment that is going to create success. We need a fair tax system, and we need to have a reasonable spending plan.

I would like to touch briefly on tax generation. Not only do the Liberals want this $20 billion deficit with no plan for getting back to balanced budgets, but they are desperately looking for ways to get more money. The interesting thing is that they have floated out a whole bunch of ideas, but they have never done anything that would impact the personal wealth of the Prime Minister, the finance minister, or their Liberal friends who are enjoying some tax benefits that most of us do not enjoy.

The small business tax was an idea that was floated out by the Liberals. It would have hurt our small businesses in terms of how they dealt with passive income and how they would grow their companies. However, the Liberals did nothing with respect to tax avoidance schemes that are used by their wealthy friends.

The Liberals floated out the idea of taxing the health benefits of teachers who make $80,000 a year, yet they are not going to worry about shares that are held in a company like Morneau Shepell and the finance minister's introduction of legislation around pensions.

The Liberals also talked about taxing employee discounts. They realized that the accounting nightmare of charging taxes on the value of a Big Mac would be a little over the top, so they walked away from that idea very quickly.

The Liberals are denying disability tax credits to people who have diabetes. They said they would hire more nurses who would review the paperwork that has already been done by doctors and nurse practitioners. They were considering hiring nurses for the Canada Revenue Agency to review the paperwork, so they could justify their denial of disability tax credits for diabetics.

Free advice for the government would be that it perhaps should be spending those dollars for nurses on more people to look at tax havens and tax-avoidance issues. Very clearly, there is one set of rules for the Prime Minister and his friends and another set of rules for the rest of us.

I will now go to tax expenditures, the other part of the budget. I will start small and work up to some of the larger issues. Money matters. How Liberals spend hard-earned tax dollars really matters. I have some examples of how they are choosing to spend money. If people were to walk a one-kilometre circle in this area, they would see a cup, which apparently cost $2.5 million. It is some sort of structure sitting on Sparks Street. They have chosen to build a $5-million hockey rink. If people were to walk a little further, they would know that City Hall has a beautiful skating rink all year round, but Liberals chose to spend $5 million for a hockey rink that I believe is going to be open for about a month.

Just yesterday, we heard that $10 million is going to a private business to build a Club Med in Quebec. There are many in my riding who would say that if the government is going to subsidize and support the resort industry, there are many who be very happy to be at the table and receive $10 million. However, there was a reason, when Conservatives were in government, that we did not do that kind of thing. It was because we did not believe that kind of corporate handout was to the benefit of anyone.

I have to speak about something in this particular bill that I have had no reasonable explanation for. Nothing has been said by the Liberal government that gives me any comfort that this will be money well spent. That, of course, is the half a billion dollars going to the Asian Infrastructure Investment Bank. That is in division 5, part 2. The original explanation from the finance minister's communications person was that this is going to create jobs here at home and will help the middle class. What fantasy world would someone have to live in to believe that giving half a billion dollars to an Asian infrastructure bank that is building bridges and roads in Asia is going to create jobs here at home and help the middle class? I would note that if there were opportunities abroad, Canadians are not precluded from bidding on those jobs anyway. There has been no reasonable explanation for that half a billion dollars. When I was in Yellowknife not so long ago, I saw a huge need for infrastructure there.

This leaves me a couple of minutes to talk about creating an environment for success. The north is a great example. It created a moratorium on oil and gas drilling and decided to turn significant areas into parks. The premier of the Northwest Territories said that southerners want all of the north to be their park. Southerners are taking away their dreams and hopes, and creating a nightmare for them. They are putting a carbon tax on them and they are going to be not only the most impacted by climate change, but the ones most impacted by a carbon tax, with nothing to support the impact that is going to have. They are taking away jobs and opportunities, imposing additional costs, and destroying a community.

In conclusion, I suggest that the budget implementation act is a follow-through on broken promises from an election campaign. It would go after law-abiding small businesses to grab dollars wherever the Liberals can and create an increasingly negative climate for investment. Although there may be a couple of measures that are reasonable and supportable, the BIA 2 would simply continue a very flawed fundamental approach by the government to the finances of our nation.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, the reality of the situation is that Canada's economy is growing the fastest of the G7 countries. This government has made serious choices investing in people, investing in children, and investing in infrastructure and programs. The result of what this government is doing that we have seen over the last number of years is an improvement. Our economy is stronger than it ever was during the time of the Conservatives.

My question for the member is very simple. Is she as excited as I am that Canada's economy is number one, in terms of growth, in the G7?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, what I talked about was having a government that sets a structure for success. If the Liberals want to suggest that things that happened two years ago were to blame for it, then I think they had better also give us credit for what happened two years ago, because we saw this country through the global recession, we created many free trade agreements, we got rid of red tape, and we moved things forward in a positive way. Certainly, they can thank us for that, as they are enjoying that benefit. However, what I did indicate was that I am really worried that what they are doing and how they are spending money will take us right back to where we started from and put us in a very difficult position.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, earlier when responding to a question, the member mentioned division 2 of the Asian Infrastructure Investment Bank agreement act that is being created through this BIA. We know from experience that previous governments have refused to join this. There is a Japanese-led Asian Development Bank, Japan being an ally, that we would like to collaborate with. For the half billion dollars that the government is putting into this, we get a 1% share of the votes, which is barely anything. Now we learned that last year, in 2016, this infrastructure bank, led by the Chinese government, is actually financing two pipeline projects, one in Azerbaijan and one in Bangladesh.

I would like to hear the member speak about this cognitive dissonance we see from that side of the House, where the Liberals would actively impede the success of the Canadian energy industry here in Canada, putting a lot of energy families out of work, while supporting the middle class in Asian countries.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, my colleague has just expressed things perfectly with respect to this infrastructure bank and what it is doing. However, for the people who might be listening on this 150th anniversary, this is not about Canada's responsibility with respect to foreign aid, as we all believe we need to step up to the plate when there are tragedies in other countries. This is about Canada investing almost half a billion dollars overseas. Other than making us feel good and making us part of this global community, there has not been one good rationale why the Liberals would not follow the recommendations of the Canadian Human Rights Tribunal and provide support for our first nations children, yet they are happy to put half a billion dollars into something that will not benefit Canadians.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I note that the current government is using the same line that was used by the previous government, which is that Canada is leading the growth among the G7 countries. Unfortunately, I have heard some recent economic data that suggests to me that the economy may not be doing as strongly as the government would like to portray. The GDP actually shrunk in August, and we are on track to maybe end the year with a more modest GDP growth of around 2%.

My question has to do with what the member would like to see the current government do in order to create a stronger production base in Canada for value-added production. I know that we rely a lot on our natural resources in this country, but what would she suggest the government do to try to get more value-added production and create those better jobs here in Canada?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, my colleague brought up a very important point. Although we have had some reasonable and strong economic growth, there are number of flags out there that we need to pay attention to. I met with the Prospectors & Developers Association of Canada, and mining exploration in this country is way down. We have a softwood lumber agreement. Not only is value added important, but let us get the softwood lumber agreement fixed. There was an opportunity when the Prime Minister was meeting in the U.S. shortly after his election when he had the willingness to solve this problem. He failed and we need to get that fixed. That will certainly impact British Columbia, and provinces all across Canada.

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Mr. Speaker, I am pleased to rise on the subject of Bill C-63, the budget implementation act, 2017, No. 2, today. Specifically, I am pleased to talk about the government's plan to invest in people and communities to build a stronger, healthier, better Canada.

If we were to ask Canadians, the vast majority of them would say they are very proud of our public health system. The 2017 federal budget recognizes that and includes over $37 billion in transfers to the provinces and territories under the Canada health transfer.

A prosperous country such as ours also needs a comprehensive strategy on drugs and other substances. When it comes to cannabis control, the current system is obviously not working. It does not do a good enough job of protecting Canadians' health and safety, especially not our youth. It is often easier for our children to acquire cannabis than cigarettes.

As everyone knows, our government plans to legalize and strictly regulate cannabis. This policy is necessary and has two main objectives: on the one hand, to keep marijuana out of the hands of youth, and on the other, to deprive criminals of any profits from illegal cannabis sales.

In advance of the government's plan to legalize cannabis, budget 2017 allocated several million dollars to public education programming and monitoring activities.

Taxation is one of the key factors that will play an important role in ensuring that our objectives are met. As the Prime Minister and the Minister of Finance have clearly stated, taxes must be low from the beginning, and the federal, provincial, and territorial governments must continue to work together to guarantee a coordinated approach. Co-operation is critical, and the federal government wants to engage our provincial and territorial partners in order to develop a coordinated approach to cannabis taxation.

This second budget implementation act lays the groundwork for such a partnership. It amends the Federal-Provincial Fiscal Arrangements Act to allow the Minister of Finance, on behalf of the federal government and with the consent of the Governor in Council, to enter into coordinated tax agreements with the provincial and territorial governments on cannabis taxation.

All governments must endeavour to maintain an effective level of taxation over time, one that helps balance our social and health objectives, the risks associated with the illicit market, as well as our tax priorities. All levels of government will have a significant role to play. It is important to remember that the framework for the production, sale, and distribution of cannabis for non-medical purposes will be based on the sharing of responsibilities. The federal government will be responsible for granting licences for production, cultivation, and manufacture, while the provinces and territories will be responsible for granting distribution and retail licences.

It would also be much better to have a coordinated approach on the taxation side of things. Legalizing cannabis will help the government increase tax revenues, but it is important to keep in mind that that is not the primary objective here. The primary objective of legalizing marijuana is to try to keep marijuana out of the hands of children and keep the profits out of the hands of criminals.

The best way to do that is to have a coordinated approach to taxation across the country. As the Minister of Finance said, we have to get this right and we have to work with the provinces and territories. Budget implementation act, 2017, No. 2 will implement the framework for this coordinated approach when cannabis for non-medical use becomes legal in Canada, the intention being that this occur at the latest in the first half of 2018.

As I said, taxation is one of the key factors that support the objectives of cannabis legalization, but it is not the only one. The government plans to take a number of measures to regulate non-medical cannabis. There will also need to be investment in awareness and education programs to inform Canadians, especially young Canadians, of the risks to both health and safety associated with cannabis use.

Although access to cannabis for non-medical purposes will be restricted and strictly regulated, various federal agencies will also be required to do more. Public awareness campaigns will help inform Canadians about the dangers of driving under the influence of cannabis and other drugs.

Police forces will also need new tools to better detect drug-impaired drivers. Physical inspections at companies that produce cannabis will be necessary. We heard this during the Standing Committee on Finance's cross-Canada pre-budget tour. I am very pleased to see that the fall economic statement tabled last week allocates significant funding to the development of a new framework to regulate and restrict access to cannabis.

As I just mentioned, I was pleased to see that the fall economic statement allocates significant funding to the development of new legal frameworks. Health Canada, the Royal Canadian Mounted Police, the Canada Border Services Agency, and Public Safety Canada will all receive funding to ensure that they have the resources they need to issue licenses, conduct inspections, enforce all the aspects of the cannabis bill, and conduct meaningful public awareness and outreach.

In conclusion, the government's intention is to legalize cannabis for non-medical purposes in Canada. Legalization will keep cannabis out of the hands of youth and keep profits out of the hands of criminals. To support this dual objective, coordination between governments is essential. We are committed to working with the provinces and territories. The budget implementation act, 2017, No. 2 is part of the federal government's ongoing efforts in that regard.

I urge all hon. members to support this important legislation. It will help us give our children and grandchildren a stronger, better, and healthier Canada.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, my hon. colleague spent a fair bit of time speaking about the cannabis legislation and the government's attitude and contributions toward this. I want to focus a bit on education.

Up to last week, the government had committed the grand total of $9 million over five years, dedicated toward the education of our youth in advance of the cannabis legalization, which is to happen in about seven months. We heard at committee that the states of Colorado and Washington spend that amount every year, with a population one-seventh of Canada's, showing and highlighting the absolute lack of investment by the government on education. Embarrassed by that, last week the government announced that it would spend another $36 million over five years for education, but only when it was exposed in committee that it had failed so miserably in the regard.

My question for the hon. member is about tax policy. The federal government unilaterally announced a certain tax proposal at the last federal-provincial ministers conference and caught a lot of provinces by surprise. I wonder if my hon. colleague could expand on this. Could he tell members of the House what the government's policy will be toward taxation of cannabis? How much will the tax be? How much will it raise? How will it be shared with the provinces?

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Mr. Speaker, I would like to thank my hon. colleague for his question and comments. Before I answer his main question, I want to say that I reject the premises of his question about the government's intentions with respect to implementing cannabis education programs.

Certainly our goal has always been to put a program in place to deter cannabis use through education. As the date approaches and we coordinate our actions with the provinces and territories, Canadians will see more and more proof of the government's plan to launch major awareness campaigns about issues associated with cannabis use. Those campaigns will target youth in particular as well as the general public.

To get back to my colleague's main question, the reason I gave this speech and the reason these measures are in the 2017 budget implementation act No. 2 is that we want to make sure the provinces, the territories, and the federal government coordinate their actions. This is a long-term undertaking that we will accomplish together.

I would ask my hon. colleague to be a little more patient and give the provinces and territories time to negotiate with the federal government. That is how we will keep taxes as low as possible and eliminate or significantly reduce the sale of cannabis by organized crime.

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, for decades, separatist MPs in my region worked hard to prove that the federal government could not work. They worked hard to prove that the federal government was not interested in the riding. Those MPs did not actually do anything. All they did was obstruct the role of the federal government.

Since I have been here, we have managed to bring more than $100 million in extra funding to the riding, mostly through the Canada child benefit, as well as through a number of other programs. Nearly $30 million has been invested in other programs.

People are starting to see that the federal government has a role to play in the regions in Quebec.

I would like to know whether my colleague from Hull—Aylmer has had a similar experience.

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Mr. Speaker, I very much appreciate the question from my hon. colleague from Laurentides—Labelle. I can assure him that I have some good news on this and that the federal government has certainly shown leadership when it comes to investing in Quebec. The Canada child benefit is a major part of this budget. We saw in the economic statement that we are going to invest in this benefit anew.

In my riding, Hull—Aylmer, in my colleague's riding, and in every riding in Canada, this new social initiative has benefited every Canadian, especially those with children and those in need.

This is an important investment. It proves that the federal government can play an important role together with the provinces in eliminating poverty everywhere.

[Randeep Sarai, Liberal, Surrey Centre, BC]

Mr. Speaker, I am thankful for the opportunity to speak before the House regarding “A second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures.”

We would not know it from the name, but this is one of the most exciting bills being considered by Parliament this session. With the passing of this bill, my colleagues and I will be doing what we came here to do: serve our communities and our country.

Early this morning, I arrived in Ottawa on an overnight flight, after a weekend back home in my riding of Surrey Centre. My time away from the Hill gave me a chance to meet with constituents in my riding office, at community events, and over coffee. I would like to thank everyone who came out to my recent “Chai with Sarai” event.

As with every weekend, I boarded my return flight, appreciative of Surrey's diverse, hard working and altruistic population. I also left looking forward to Surrey's bright future. Everywhere I looked, I saw new businesses, new developments, and new residents. In fact, Surrey is one of the fastest-growing cities in all of Canada. That makes us one of the fastest-growing cities in the fastest-growing economy in the entire G7. Just last month, we added a whopping 35,300 new full-time jobs and $9 billion more to the government coffers due to the great economic growth resulting from an agenda of innovation and growth.

It is a good time to be a Canadian. With this budget implementation bill, we can put the benefits of Canada's growth back in the hands of the people who made it happen. We get to put money back in the hands of families.

I have always been proud of our government's Canada child benefit and what it does for Surrey Centre. In fact, the benefit ensures that $800 million a year tax-free goes to families in my riding. This measure goes a long way toward ensuring Surrey families will not have to make the choice between school supplies or new skates for their children. However, in the words of our Prime Minister, “better is always possible”.

One year ago, when I spoke regarding the implementation of the 2016 budget, I was happy to note that our government would be indexing the Canada child benefit to inflation starting in 2020. This year, I am even happier to note that we will be moving forward on this measure two years ahead of schedule. Thanks to the strengthened Canada child benefit, a single parent of two making $35,000 a year will receive $560 of richly deserved non-taxable dollars the next fiscal year..

Our commitment to families goes beyond finance. Bill C-63 would also create greater flexibility in the way employees could take paid and unpaid leave. This would ensure that more workers would see an increase in family time and a healthier work-life balance. In this regard, and in all that we do, our government believes in the importance of leading by example.

This is not the only way we are making it easier to be a worker. Our newly enhanced working income tax benefit will provide $500 million to low-income workers, starting in 2019. This comes on top of the $250 million increase that has already come about through pension reform.

Many Canadians work long hours to join the middle class, and it is our duty to send support their way. Currently, the working income tax benefit benefits 1.5 million Canadians, including more than 200,000 in British Columbia. It boosts these numbers and helps more Canadians pay their rent, put food on their tables, and make the sometimes jarring transition to full-time work after a period of unemployment. It also ensures that those living alone, the new most common type of household according to the 2016 census, do not slip through the cracks. These new measures work together to ensure financial security to Canadians of all backgrounds.

This includes small business owners. We recognize that small business is the expression of middle-class Canadians' passion, hard work, and great ideas. We want to applaud entrepreneurs and employees who make our communities so dynamic. We have lowered the tax rate for small businesses by almost one-fifth, from 11% down to 9%, to ensure small-business owners have the financial environment they need to thrive.

However, one cannot talk about entrepreneurship without discussing innovation. To me, innovation means Surrey companies like Safe Software Incorporated, whose Feature Manipulation Engine software allows companies worldwide to manipulate reams of geographic data as easily as we might watch a Facebook video. It means Surrey companies like Orello Hearing Technologies, whose novel, inexpensive hearing aid is poised to disrupt the industry and dismantle the systemic barriers that face Canadians with hearing disabilities. To me, innovation is the reason I often see people's eyes light up when I mention my province of beautiful British Columbia.

This is why I am glad to see our government enacting the innovation and skills plan included in budget 2017. We have already set aside $950 million for the creation of technological superclusters. Members are likely familiar with many tech clusters already. Many of them know the reputation of places like Silicon Valley, Tel Aviv, and the Toronto–Waterloo corridor. Clusters bring industry, government, and academia together to foster great ideas and energize economies. B.C.'s own digital technology supercluster is poised to stand out as an example to the world of developing and harnessing virtual and augmented reality in ways that benefit industries from gaming to forestry.

With this budget implementation bill, we would pour an additional $400 million into our venture capital catalyst initiative and invest $600 million in green technology firms. As my Vancouver to Ottawa flight consistently reminds me, Surrey is three hours behind Ottawa when it comes to time zones. However, Bill C-63 would ensure that we are years ahead when it comes to innovation.

Surrey is home to almost half a million people. That is half a million residents hoping to see their dreams become reality. They are dreams like those of our entrepreneurs, who aim to disrupt our outdated world views and leave their mark on our society, dreams like those of our newest residents, who want to feel at home and at peace in a city or country that may still seem unfamiliar, and dreams like those we all share: to live in financial security and spend time with those we care about. By continuing to implement the 2017 budget, Bill C-63 would help make these dreams a reality, and I encourage all MPs to vote in favour of it.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, what the member conveniently left out of his speech was any reference at all to balanced budgets. Members may recall that when the Prime Minister was telling Canadians why he should be the Prime Minister of this country, he made a lot of promises, many of which he has already broken. The big one that matters to future generations is that he promised that within the term of his government, four years, he was going to return to balanced budgets, just the way the previous government always balanced its budgets and left surpluses. In fact, what the member has failed to mention is that there is nothing in this budget that would actually return government to balanced budgets so we will not be leaving future generations with a huge debt load for the spending we do today. How will the member explain to the next generation the fact that his government has broken its promise to return to balanced budgets, and in fact, has no plan to return to balanced budgets?