Debates of Sept. 20th, 2017

Taxation

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, what we know with our current system is that it does encourage wealthy Canadians to incorporate so they can have a lower tax rate than middle-class Canadians. What we also know is it is important to continue to listen to Canadians to make sure that as we put these measures in place, they will continue to be incentivized to make investments in their businesses.

We want to achieve that at the same time as making sure our system is fair. We know those two goals can both be achieved, and that is why we are out listening to Canadians, to make sure we actually achieve them.

Foreign Affairs

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Mr. Speaker, we heard some serious allegations about Saudi Arabia using Canadian-made weapons against civilians.

The Minister of Foreign Affairs launched an investigation and promised that she would take action if it was confirmed. However, later, the Saudi ambassador to Canada himself confirmed the allegations.

When can we expect the results from the minister's investigation, and what actions will she take now that the allegations have been confirmed by the Saudis themselves?

[Matt DeCourcey, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, the member should know that we are absolutely committed to the defence of human rights at home and abroad. We deplore human rights abuses everywhere around the world. Canada expects the end-user of any and all exports to abide by the end-use terms in issued export permits.

The minister has asked for a review of the situation and officials have been actively seeking further information on the allegations.

I can confirm that no new export permits have been issued for vehicles to Saudi Arabia. We have expressed our concern to the Kingdom of Saudi Arabia and its security operations that they respect international human rights law.

Public Safety

[Matthew Dubé, NDP, Beloeil—Chambly, QC]

Mr. Speaker, speaking of all talk and no action, the Minister of Finance did not include a single penny in his budget for correcting the mistakes on the no-fly list.

Fifty or so Liberal MPs, including ministers, wrote to the Minister of Finance to ask him to correct the situation. Families have to cancel trips because their children's names are on the list and business people are facing delays on their business trips.

Will the government finally keep its promise and implement and fully fund a proper redress system for the no-fly list and, once and for all, end this victimization of children and business people?

[Ralph Goodale, Liberal, Minister of Public Safety and Emergency Preparedness]

Mr. Speaker, the design flaws in the no-fly program stretch back many years. It was designed in a way which required people who were inadvertently red-flagged to present themselves at the counter to be cleared manually. That is a very bad system. We are determined to fix it. I would point out for the hon. gentleman that in Bill C-59 he will find the beginning of the legislative changes that are necessary to fix it.

International Trade

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Mr. Speaker, my riding of New Brunswick Southwest is home to some of the largest exporters of seafood in Canada, including lobster, scallops, salmon, herring, sardines, and so much more.

I know so many of the businesses are excited about the opportunities with CETA. Could the Minister of International Trade please update the House on what CETA will mean for the businesses and the implementation process?

[François-Philippe Champagne, Liberal, Minister of International Trade]

Mr. Speaker, that is the question all Canadians have been waiting for.

Tomorrow the free trade agreement between Canada and Europe will come into force. It will open a market of 510 million consumers for businesses across Canada.

I invite all members of this House to make a difference in the lives of farmers, fishermen, businesses, and small businesses, and use the agreement. This is a great day for Canada. I invite all members to join in that.

Taxation

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, yesterday I had an opportunity to chat with Terry, a grain farmer from my riding after his conversation with the Minister of Finance about Liberal tax changes. The minister said nothing to alleviate Terry's concerns for his livelihood. These changes mean that Terry's retirement is in jeopardy.

Why is the Minister of Finance forcing Terry, an independent grain farmer from Nipawin, Saskatchewan to pay a 73% tax that not even millionaire owners of Morneau Shepell will have to pay? How is that fair?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, across the country, we want to make sure that our tax system is fair.

We know that they do not want a system that encourages just the wealthiest to incorporate, to have a private company so that they can actually pay a lower rate of tax than middle-class Canadians.

I was pleased to speak to Terry, as I will be pleased to speak to Canadians who will come on our teleconference later this week, in order to hear their questions and ensure that we are listening to what these changes will mean for them.

Our goal, again, is tax fairness. We want to make sure that people like Terry and others can continue to invest. Those two goals, we believe, can be met together.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, Darrel and Kathy hope to have their son, Jackson take over the family farm some day. They told me how their rainy day fund saved them when their combine broke in the middle of harvest. The Minister of Finance's tax grab would have made that impossible. Meanwhile, multi-million dollar companies traded on the stock market are exempt.

Why is the Minister of Finance forcing Darrel and Kathy to pay a 73% tax that not even the millionaire owners of Morneau Shepell have to pay? How is that fair?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, a tax system that favours the wealthy over the middle class is not one that we see as fair. We want to make sure, as we move forward to have a fairer tax system, that it really does continue to enable farm families, fishers, and people across the country to be successful. We are listening to people across the country to make sure that there are not unintended consequences.

Clearly, what we are after is making sure that the wealthiest Canadians do not have an advantage to have a lower tax rate than middle-class Canadians. We will continue with those goals while we listen to farmers and people across the country about their—

[The Speaker, Liberal, Geoff Regan]

The hon. member for Banff—Airdrie.

[Blake Richards, Conservative, Banff—Airdrie, AB]

Mr. Speaker, the Liberal tax changes will affect hard-working Canadians like Allison and her husband, who, despite the downturn in Alberta, have gotten up, dusted themselves off, and started again. Allison's husband lost his job, and she was a stay-at-home mom of four kids, who substitute taught, but then she suffered a stroke and could not work. Despite all of this, they carried on and started a small business.

These new Liberal tax changes will devastate that dream. Why is the Minister of Finance forcing Allison to pay a 73% tax that not even millionaire owners of Morneau Shepell will have to pay? Maybe he could try answering now. How is that fair?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, I am pleased to have the opportunity again to say that what we want is a tax system that is fair. We want a tax system that does not encourage the wealthiest to incorporate so they can have a lower tax rate than middle-class Canadians. That is what we are working towards.

We are going to listen to small business owners, to people across the country, because we want to correct the misinformation that is out there, suggesting that they will be in a worse-off situation. We want to make sure that wealthy Canadians do not have advantages not available to the middle class, while encouraging people to continue to invest in our economy, an investment that is going well as we can see with the growth in our economy right now.

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

Mr. Speaker, the Minister of Finance wants to tax the investment income of local small business owners at a rate of 73%. These Liberal tax increases will take a toll on Éric Boisvert's thriving SME, Impression Stratégique, located in Beauport. This company and many others like it could be forced to cut salaries or even lay off some employees.

Why does the Minister of Finance want Impression Stratégique to pay a 73% tax when the millionaires who own Morneau Shepell do not have to pay a cent?

How is that fair?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, we have a notion of what is fair. We do not want a system that encourages the wealthiest to incorporate so they can get a lower tax rate than the middle class. That is not fair.

The fact that members opposite believe that it is fair for the wealthiest to pay a lower tax rate than the middle class is something we do not understand. We are going to move forward with a system that encourages people to invest in business, but a system that allows all Canadians to have opportunities with a fair tax system.

Immigration, Refugees and Citizenship

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, Canadians knew that Trump's anti-immigrant policies would create a climate of fear in the U.S. In August alone, over 5,000 asylum seekers crossed into Quebec and it doubled in B.C. NGOs are left grappling with this without any additional resources. At committee, Liberal MPs have shut down debate on this issue not once, not twice, but four times.

Will the government finally agree to work with all sides of the House to develop a comprehensive and humanitarian approach to this critical situation?

[Ahmed Hussen, Liberal, Minister of Immigration]

Mr. Speaker, I am very happy that the member opposite has asked me that question because it gives me a chance to highlight some of the actions we have taken to deal with this unusual situation.

We have mobilized the government operations centre to mobilize and coordinate actions across government. We have been able to work seamlessly with the provinces of Quebec and Ontario under the federal task force. We have processed and increased the capacity of the IRCC office in Montreal, in order to be able to improve the process of asylum seekers and their claims from months to days. We have fast-tracked the processing of work permits in order to minimize their reliance on social assistance and provincial social programs.

Throughout this process it is evident that we have planning. It shows early mobilization and seamless—

[The Speaker, Liberal, Geoff Regan]

The hon. member for Hochelaga.

Indigenous Affairs

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, having14 people squeeze into a two-bedroom home with walls that are black with mould is the reality faced by too many indigenous Canadians living on reserves. If they choose to leave, they end up much more vulnerable to marginalization, discrimination, and homelessness.

We have had two years of talk from the Prime Minister. Now it is time for action.

Will the minister work in partnership with indigenous peoples to implement a focused strategy that comes with immediate funding to tackle the growing indigenous housing crisis?

[Jane Philpott, Liberal, Minister of Indigenous Services]

Mr. Speaker, I am honoured to rise in the House as Canada's very first Minister of Indigenous Services.

I heartily agree with the member opposite that for too long indigenous peoples in this country have lived in substandard conditions. That is why our government has made such significant investments and already 6,500 homes have been built or are under construction. We will continue to work with our partners in first nations, Inuit, and Métis people of this country to make sure all people have a good quality of life.

Taxation

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, farmers are right in the middle of the harvest, and the Minister of Finance wants to tax the investment income of small businesses, such as family farms, at 73%.

Éric and his two family partners, farmers from Sainte-Christine, in the riding of Shefford, will not be able to leave their farm to their six children, and the minister is putting their retirement in jeopardy.

Why is the Minister of Finance forcing Éric to pay a 73% tax rate, but will not make the millionaire owners of Morneau Shepell pay?

How can he claim that is fair?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, what we want and what all Canadians want is a system that is fair. We do not want our society to privilege the wealthy and encourage them to have a lower tax rate than the middle class. This is our goal.

We are listening to farmers across the country to make sure that there are no unintended consequences for them. That is very important. Our goal is clear. We want a fair system.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, John owns Johnny Finger Cats Welding in my riding. He is an employer in a small rural community who has fought hard to keep his business afloat despite the energy downturn. Now the Minister of Finance wants to take more money out of his pocket with these punitive tax changes. This is going to force him to lay off staff and certainly inhibit the ability for him to grow his business.

Why is the finance minister forcing John to pay a 73% tax hike when millionaire owners of companies like Morneau Shepell do not have to pay it? I would like him to tell rural Canadians how that is fair.

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, I know that rural Canadians and all Canadians want to have a system where we do not encourage the richest to incorporate so they pay a lower tax rate than middle-class Canadians. That is really important. For business owners, for people across the country who are trying to invest in their business, we encourage that activity.

At the same time, we want to make sure that we are not encouraging others to incorporate just for lower tax rates than those business owners or middle-class Canadians. That is what we are working toward. We will listen to make sure we get it right.