House of Commons Hansard #384 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was elections.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, pursuant to Standing Order 36(8) I have the honour to table, in both official languages, the government's response to three petitions.
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
moved for leave to introduce Bill C-430, An Act to amend the Income Tax Act (organic farming tax credit).
Mr. Speaker, it gives me great pleasure to rise this morning to introduce my bill, an act to amend the Income Tax Act, to create an organic farming tax credit. The bill is the result of the Create Your Canada contest that was held among the high schools in my riding of Cowichan—Malahat—Langford last year, where students were invited to research and develop their ideas for legislation to change our country for the better.
I sincerely congratulate Hannah Pachet and Morgan Bottomley from Chemainus Secondary School, who are the winners of that competition and who are here in Ottawa with me today to watch their idea come to life as this bill.
Organic production is a holistic system designed to optimize the productivity and fitness of diverse communities within the agro-ecosystem, including soil organisms, plants, livestock and people. The principal goal of organic production is to develop enterprises that are sustainable and harmonious with the environment.
The bill recognizes the efforts that organic farmers put into these production systems by proposing to amend section 127 of the Income Tax Act to create a tax credit for their expenses incurred in relation to organic farming.
(Motions deemed adopted, bill read the first time and printed)
Wayne Stetski NDP Kootenay—Columbia, BC
Mr. Speaker, I am pleased to present a petition today regarding protecting the future of Gatineau Park. I know Gatineau Park is near and dear to the hearts of many people here in the chamber. If any members have not been there, they really have to go. Over 1,600 people have signed, both on an e-petition and a regular petition.
Gatineau Park is really important right across the country. It has almost 2.7 million visits a year. I am the critic for national parks, so I know how significant that number is. There are 90 endangered plants and 50 endangered animals in the park. It contributes almost $242 million to the local economy, and 4,728 full-time jobs.
However, the boundaries of the park are not protected currently. Therefore, this petition calls upon the House to amend the National Capital Act to give Gatineau Park the necessary legal protection to ensure its preservation for future generations.
I encourage everyone in the House to support the petition. Gatineau Park really deserves long-term protection.
Richard Cannings NDP South Okanagan—West Kootenay, BC
Mr. Speaker, I rise today to present two petitions from hundreds of residents of my riding in South Okanagan—West Kootenay. They both cover the same subject. The petitioners point out that animal testing is unnecessary to prove the safety of cosmetic products, and a ban on cosmetic animal testing would not impact current cosmetic products for sale in Canada. The European Union banned cosmetic animal testing in 2013.
Petitioners point out that Canadians overwhelmingly support a ban on cosmetic animal testing, so they call upon the House of Commons to support Bill S-214 and ban the sale or manufacture of animal-tested cosmetics and their ingredients in Canada.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, I ask that all questions be allowed to stand.
The Speaker Liberal Geoff Regan
I am now ready to rule on the question of privilege raised on February 8, 2019, by the hon. member for Mirabel regarding the reply to an oral question the previous day.
As members will recall, further to a point of order raised by the member for La Pointe-de-l'Île at the end of oral questions on February 7, 2019, I explained clearly the circumstances surrounding my decision to allow the Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship to answer his question, one which had been directed to the chair of the Standing Committee on Justice and Human Rights.
Nonetheless, the member for Mirabel raised the matter again, stating that, as committees of the House are not servants of the government, the parliamentary secretary breached the House's privileges.
The member also asked that the member for La Pointe-de-l'Île be granted a supplementary question.
Without revisiting my original decision—since all members know that the Speaker's decisions are not subject to appeal—the precedents supporting my decision to recognize the parliamentary secretary are well established. In a situation similar to the one before us, Speaker Milliken, in a ruling on February 8, 2008, said at page 2836 of the Debates of the House of Commons:
I do not think the question is whether anyone else is allowed to answer or not. The question for the Speaker of the House is to take a look at those who are standing to answer and choose who is going to answer.
In the case before us, since the chair of the committee did not rise immediately, I called upon the only person who was standing at that point to answer the question, which is the prerogative of the Chair.
In another ruling on November 2, 2011, which can be found at pages 2861 and 2862 of Debates, my predecessor stated:
Simply put, it is not for the Speaker to judge who possesses which information and, thus, who might be able to provide the information being sought....
Nothing in this incident should be interpreted to mean that members should not continue to direct their questions to those who are properly accountable for answering them. It is also entirely reasonable to expect that those to whom questions are directed, in this case the chair or vice-chair of a standing committee, would automatically be recognized by the Chair to respond, provided they are, of course, rising.
Accordingly, the Chair does not find this to be a prima facie question of privilege.
I thank all honourable members for their attention.
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Bill Blair
moved that Bill S-6, An Act to implement the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, be read the second time and referred to a committee.
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Jennifer O'Connell Parliamentary Secretary to the Minister of Finance (Youth Economic Opportunity), Lib.
Mr. Speaker, I am pleased to rise in the House to speak to this important piece of legislation that will help to advance the government's tax fairness agenda.
The legislation we are bringing forward has a single objective: addressing tax evasion and aggressive tax avoidance schemes in order to ensure that the tax system operates as fairly and effectively as possible. My colleagues in the House would agree that this is absolutely essential. It is about making sure that all Canadians pay their fair share.
Ensuring tax fairness demands engagement on many fronts. That is why Canada continues to expand and update its network of tax treaties and tax information exchange agreements. Canada has an extensive network of income tax treaties, with 93 comprehensive tax treaties currently in force. Worldwide, the OECD estimates that there are currently over 3,000 tax treaties in place.
Tax treaties are fundamental to trade and investment by eliminating double taxation. They provide the certainty needed to support open and advanced economies. They also permit the exchange of information needed to prevent international tax evasion.
Bilateral double tax conventions are used to eliminate tax barriers to trade and investment between two countries. They achieve their purpose in a number of ways.
First, they provide greater certainty to taxpayers regarding their potential liability to tax in the foreign jurisdiction. Second, they allocate taxing rights between the two jurisdictions and provide for the elimination of double taxation. Third, they reduce the risk of burdensome taxation due to high withholding taxes. Fourth, they ensure that taxpayers will not be subject to discriminatory taxation in the foreign jurisdiction. Fifth, tax treaties authorize the exchange of tax information to prevent tax avoidance and tax evasion. Finally, tax treaties provide a mechanism for jurisdictions to resolve tax disputes.
These are all important goals, and they are goals we can achieve with today's legislation. By updating the tax dimensions of our relations with Madagascar, we can strengthen trade and investment between our two countries.
It is important to the government and to all Canadians that we deliver the programs and services that Canadians need while keeping taxes low for small businesses and middle-class families.
When our government took office over three years ago, we made a commitment to invest in growth while upholding the principle of fairness for all taxpayers.
A fair tax system is key to ensuring that the benefits of a growing economy are felt by more and more people, with good, well-paying jobs for the middle class and everyone working hard to join it.
Let me remind my colleagues that one of the government's first actions was to cut taxes for the middle class and raise them for the wealthiest 1%, an action that directly benefited some nine million Canadians.
After moving forward with a middle-class tax cut, we then took action to replace the previous system of child benefits with the Canada child benefit, or the CCB. Compared to the old system of benefits, the CCB is simpler, more generous, and better targeted to those who need it most. It is also entirely tax-free. Today, nine out of 10 Canadian families are better off thanks to the Canada child benefit. It has helped to lift more than 520,000 people out of poverty, including about 300,000 children.
On average, families benefiting from the CCB are receiving $6,800 this year. That amount will help them afford the things they need for their families. It will help put healthy food on the table, pay for lessons and sports activities, and buy clothes and school supplies. The CCB is particularly helpful for families led by single parents. These families are often led by single mothers, and tend to have lower total income.
However, our government's commitment to supporting the middle class and those working hard to join it is also about helping the small businesses that families and communities depend on. That is why the government is supporting small businesses in Canada by reducing the federal small business tax rate.
We cut the small business tax rate twice. Specifically, the rate was reduced from 10.5% to 10% as of 2018 and to 9% as of last January. For the average small business, this will mean an additional $1,600 per year that they can use to reinvest in their business and create jobs. With these two small business tax rate deductions, the combined federal-provincial-territorial average tax rate for small businesses is now 12.2%. This is by far the lowest in the G7 and fourth-lowest among countries in the OECD.
Tax fairness has been and will continue to be a cornerstone of our government's promise to Canadians to strengthen and grow the middle class and grow the economy now and over the long term. In each of our past three budgets, our government has taken legislative actions on both international and domestic fronts to enhance the integrity of Canada's tax system and to give Canadians greater confidence that the system is fair for everyone.
An important focus of our efforts has been cracking down on tax evasion and tax avoidance, which create serious financial costs for the government and all taxpayers. Since budget 2016, the government has boosted the Canada Revenue Agency's capacity to crack down on tax evasion and combat tax avoidance. Investments made over the last two years have enabled the CRA to better target persons who pose the highest risk of tax avoidance and evasion and to be more effective in fighting tax avoidance and evasion. Those efforts are showing concrete results for Canadians.
With the new system, we are able to review international electronic fund transfers over $10,000 entering or leaving the country. This adds up to more than one million transactions each month. Reviewing these transfers helps us do a better risk assessment for unfair tax avoidance by persons and businesses.
Over the last two fiscal years, our government reviewed all electronic fund transfers between Canada and eight jurisdictions or financial institutions of concern. This amounted to 187,000 transactions, worth a total of more than $177 billion. Working closely with partners in Canada and around the world, we now have more than 1,000 offshore taxpayer audits under way, and more than 50 criminal investigations with links to offshore transactions.
Our government is also pursuing third parties who promote tax avoidance schemes. In the last fiscal year alone, it has imposed roughly $48 million in civil penalties on these third parties.
This year, we are also gaining better access to information on Canadians' overseas bank accounts, as we've put in place the common reporting standard. With this new system, Canada and more than 100 other countries will be exchanging financial account information to help us identify when Canadians are avoiding taxes by hiding money in offshore accounts.
We have also expanded our specialist audit teams, which focus on high-net-worth individuals. About 250 auditors are now checking to see that high-income earners and high-net-worth individuals are paying their fair share.
Another important means of ensuring tax fairness is knowing clearly who owns what. That's why the government is working with our provincial and territorial counterparts to ensure that Canadian authorities know who owns which corporations in this country.
We are also working to better harmonize requirements for corporate ownership records across our jurisdictions. This information will help Canadian authorities take appropriate legal action when people are hiding criminal activities behind corporate vehicles. In this way, we will be rooting out international tax evasion and avoidance, money laundering and other criminal activities.
I would like to note one further way that the government is acting to prevent misuse of our tax system. Canada is part of the OECD-G20 project to address the inappropriate shifting of profit offshore and other international planning by corporations and some wealthy individuals to avoid tax. That project is known as the “Base Erosion and Profit Shifting” project, or BEPS for short. The OECD's work on BEPS identified a number of instances in which the terms of current tax treaties could give rise to potential abuse. To address those concerns, it has recommended changes to the design of tax treaties that countries could use to close loopholes in their treaties with each other.
However, given the large number of treaties in existence and the long time it would take to renegotiate each of these treaties bilaterally, a new approach was developed to implement these changes more quickly. The result of this effort is the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting, also known as the multilateral instrument or MLI.
Based on the work of the OECD's BEPS project, this convention was developed and negotiated by more than 100 countries and jurisdictions, including Canada. The MLI would enable jurisdictions that become parties to it to change their bilateral tax treaties quickly to incorporate the OECD's BEPS provisions. It would also help the international tax system function better and provide greater certainty for Canadian taxpayers by improving dispute resolution under Canada's tax treaties. As it committed to in budget 2018, the government has tabled legislation in the House to enact the MLI into Canadian law.
This government is ensuring that Canada is known to the world as an outstanding place to invest and do business. We do this because Canada's economic success rests not only on the hard work of Canadians, but also on strong trade relationships and foreign direct investment.
Together, Canadians have built a country offering a distinctly attractive set of assets. Today our key strengths include the most educated workforce among the OECD countries and a highly competitive corporate income tax system, one of the most competitive in the G7. Also, no other country demands fewer days to start a new business, and Canada is the only G7 country holding trade agreements with every other G7 member. We have done this through the Canada-United States-Mexico Agreement, the Canada-European Union Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The tax treaty with Madagascar that we are now considering is in keeping with our approach to strengthening our international ties and co-operation.
By cracking down on international tax evasion, we are building on the tremendous advantages that Canada enjoys. We are also ensuring that the government has the money needed to deliver programs that help the middle class and people working hard to join it and that Canada remains positioned as an attractive place to work, invest and do business.
As I have made clear today, we have already made tremendous progress toward a stronger Canada, but as I also noted, tax fairness is a complex goal needing engagement on many fronts. That is why we will continue to address tax evasion and aggressive tax avoidance schemes to ensure that the tax system operates as fairly and effectively as possible. The legislation we have introduced today represents an important step toward meeting this goal. I encourage all honourable members to support this legislation.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, let me begin by acknowledging and thanking my colleague, the Parliamentary Secretary to the Minister of Finance. I have often enjoyed serving and crossing swords with her at the finance committee. I imagine we will have the pleasure of debating many economic issues over the next few weeks and months, and obviously during the election campaign.
I want to mention at the outset that our party, the official opposition, supports this bill. We support any and all measures to help combat tax evasion and ensure greater flexibility to facilitate trade between Canada and countries around the world. We will have another chance to talk about that later.
I would like to point something out, however. The bill was introduced, yes, and while we recognize this is an important bill, a number of important aspects could not be debated properly here in the House.
For example, let us not forget Bill C-74, which was more than 800 pages long. Technically that bill would implement the budget passed by the House of Commons. However, there were clauses slipped into that omnibus bill, clauses 715.3 to 715.37, that were on everything but the budget. We call that an omnibus bill with clauses slipped in for the purpose of passing something without properly debating it in the House of Commons.
Bill C-74 and the clauses I mentioned included content on the remediation agreements, the very topic at the heart of the Liberal government scandal involving SNC-Lavalin.
If the government had acted as swiftly on Bill S-6 as it did on the very important issue of remediation agreements, things might be different—but they are not.
I have a very simple question for the parliamentary secretary: does she believe that Bill C-74 could have been split to allow for a fair and equitable debate on the issue of remediation agreements, as we are currently doing with the Canada-Madagascar tax agreement?
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Parliamentary Secretary to the Minister of Finance (Youth Economic Opportunity), Lib.
Mr. Speaker, I thank my hon. colleague for his work on the finance committee with me.
There are a couple of items in there that the House should note.
One is the fact that the remediation agreements and those consultations started under the Harper Conservatives, so it is a little rich for the Conservatives now to be suggesting that they were in some way rushed through Parliament when in fact they were the ones who started the consultations and they were the ones who wanted to move forward with this legislation, which, by the way, is similar to legislation that a number of other countries have. By no means should the Conservatives suggest that this was legislation that started with us. In fact, it started under the Harper Conservatives.
In addition to that, I was on the finance committee during the budget implementation act, and in fact there were opportunities. Other committees were invited to hold hearings on portions of that legislation and refer back to the finance committee if they had recommendations or suggestions. Unfortunately, some committees decided not to take the chair up on that offer. That does not mean that the committee did not hold significant consultations and hearings.
Frankly, the Conservatives are just not interested in moving forward on initiatives and plans that are going to help the middle class and Canadians. The Conservatives want to stall at all costs, but we are moving forward to ensure Canadians are better off and that our economy is growing.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I thank my colleague for her speech. I am always happy to debate with her.
I would like to come back to Bill S-6, which is before us today.
Bill C-82, which is currently being examined by the Standing Committee on Finance, would renew all tax conventions, if the two countries come to an agreement that, according to the government, is renewed and improved.
We have before us a new tax convention with Madagascar. I have a very specific question about this bill. I would like to know whether the convention with Madagascar uses the same renewed and improved text that is set out in Bill C-82 and whether the government is trying to incorporate it and renew it with all of the other partners with whom we have tax conventions.
Are we in the process of passing a bill that contains the old version or the new version of the conventions?
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Parliamentary Secretary to the Minister of Finance (Youth Economic Opportunity), Lib.
Mr. Speaker, I know my hon. colleague is passionate about dealing with tax avoidance and tax evasion, and I have enjoyed working with him as well.
In regard to the technical question on the renewal, I will have to get back to the member opposite to make sure I do not misrepresent in this House, but I will ask that specific question on the renewal.
When it comes to this legislation, we are working to make sure that all pieces of legislation moving forward on tax evasion and tax avoidance are in keeping with international standards. Again, as I said in my speech, Canada wants to ensure that we continue to be a place that attracts foreign direct investments while protecting Canadians and ensuring that everybody is paying their fair share. These are the principles that we move forward with and that will guide us in all of this work.
I will get back to the member opposite in regard to the renewal question.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I thank my colleague for endeavouring to give the House a straight answer. I believe that this is a fundamental issue related to today's debate.
The other question that I would like to ask is whether the government is prepared to continuously monitor tax conventions.
I will come back to the debate on Bill C-82. The one thing the government and its officials have admitted is that tax treaty abuse does occur. Bill C-82 is before us so we can renew and improve tax conventions.
The question I have for my colleague concerns the conventions in general. I would like to know if the government is engaging in any monitoring or some sort of control of conventions to ensure that, over time, countries with which Canada has double taxation conventions do not become tax havens. Naturally, we hope they are not, but we need to ensure that, over time, they do not become countries with low rates of taxation.
Is the government carefully and continually checking that those countries that Canada has agreements with do not become tax havens and that taxpayers cannot abuse these conventions?
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Parliamentary Secretary to the Minister of Finance (Youth Economic Opportunity), Lib.
Mr. Speaker, the hon. member raises an excellent point. That is why I am happy the government is moving forward with the MLI. The real way to deal with tax evasion, tax avoidance and the various treaties is with a global initiative. That is why the OECD and the G20 are coming together to create a body and a set of standards that we can use collectively. This is a complex issue on which we need international partners.
This is precisely why I am glad we are moving forward in that way. We can look at and review best practices and standards and move forward in a way that is effective not only in Canada but globally to ensure that Canadians and citizens around the world are treated fairly and that countries do no create tax havens to avoid paying their fair share.
This work will continue. I look forward to the interventions of the member opposite on this. I know he cares deeply about this issue.
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Winnipeg North Manitoba
Liberal
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, I know my colleague has been very passionate, as has the Prime Minister, about Canada's middle class. She has made reference to the issue of trade and how important it is to Canada.
Could the member provide her thoughts on how trade could build Canada's economy, thereby supporting our middle class?
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Parliamentary Secretary to the Minister of Finance (Youth Economic Opportunity), Lib.
Mr. Speaker, Canadians know how important trade is to our economy. That is why I mentioned the fact that we were the only G7 nation to have trade agreements with all G7 partners. Canada relies on that and Canadians expect. It allows us to share our innovation and ideas around the world, as well as to provide good-quality goods to consumers and to grow our economy.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, I am very pleased to rise on behalf of the official opposition at this stage of Bill S-6.
As I mentioned earlier, I want to assure members right off the bat that the official opposition supports this bill, the spirit of the bill and the measures it proposes, and we understand that there is still a lot of work to be done to combat tax evasion. We believe that this bill is a step in the right direction.
First, I want to give some background about what we are talking about. Bill S-6 is a Senate bill that seeks to facilitate work and trade between Canada and Madagascar by cracking down on tax evasion and eliminating some of the problems that could be created by differences in administration in Madagascar and Canada and the taxation principles underlying trade relations between the two countries.
This bill contains measures to eliminate double taxation, which is good for international trade. The bill also contains measures to eliminate discriminatory taxes. The field needs to be as open as possible to facilitate trade. Every country has its own measures, which is fair. However, some tax measures can undermine things more than others. The bill would therefore eliminate discriminatory taxes. It counters tax evasion. We will be able to talk about this later, but tax havens obviously warrant closer scrutiny, and this is not an issue that can be solved with a snap of the fingers. It takes time, co-operation and the support of some 180 countries on this planet. This is not a problem that can be fixed overnight, but we must do everything we can to fix it, and this bill is a step forward.
Furthermore, this bill would create mechanisms in the unfortunate event of a challenge on either side. These mechanisms will help find a way forward for finding a way forward with trade agreements.
Lastly, this bill will enable different administrations to share information when an investigation is required, for a company or individual, either in Madagascar or in Canada.
In essence, there are five measures in this bill: eliminating double taxation, countering tax evasion, eliminating discriminatory taxes, allowing for information sharing, and creating mechanisms to settle disputes.
We agree with these principles. We also agree that this should become Canada's 93rd treaty with other trade partners to simplify the tax system and boost trade. This is not a free trade deal per se, but it will allow for better agreements and greater flexibility. Madagascar may not be the best-known country in the world, or indeed among Canadians. It is an island in the Indian Ocean off the eastern coast of Africa. It is actually quite a big country. The island is about 1,500 kilometres long and 800 kilometres wide. Fifteen hundred kilometres is like the distance from the Alberta Rockies to the Ontario border, spanning the provinces of Alberta, Saskatchewan and Manitoba. That should give everyone a rough idea of the size of this country, which has a population of 25 million.
History tells us that Canada and Madagascar share similar roots, because Madagascar is a francophone country. We both belong to the Francophonie. We know that the Francophonie summit was held there a few years ago and that Madagascar was a French colony that gained independence in 1960 when a wave of decolonization swept through British and French societies around the globe. The decolonization movement reached Madagascar in the 1960s.
We should also know that Canada and Madagascar have had a trading relationship for years, particularly in the mining sector. A Canadian company has set up shop there, so to speak, to operate one of Madagascar's biggest mines. Furthermore, trade between Canada and Madagascar hovers around $100 million or $115 million.
Canada buys roughly $100 million in goods and services from Madagascar and in return Madagascar spends roughly $20 million buying in Canada. For the record, that represents 0.001% of our volume of trade with our biggest partner, our friends and neighbours, the U.S. Yes, that is significant. We recognize that, but we should still maintain some degree of perspective in terms of Canada's trade with Madagascar and our trade with the U.S.
The thing about this bill that we need to discuss is the issue of tax evasion. I addressed it briefly earlier. Tax evasion is an ongoing challenge facing every country in the world. Yes, we must make an effort. We certainly did when we were in government, and efforts to combat global tax evasion must continue. That is why the 180 or so countries on this planet cannot work in isolation in that regard. Everyone must join forces, work together and share the knowledge, efforts, energy and potential talent of each country and each country's experts in order to combat the scourge of tax evasion.
Canada is making an effort. With Bill S-6, we have a treaty that will help us move in that direction. That is largely why we support this bill. It is important to always be alert and always keep in mind that tax evasion is a blight on our planet that must be tackled in a serious and rigorous manner. However, no one can do it alone. Major countries need to join forces, and tax havens, the smaller countries that unfortunately serve as tax shelters for some people, need to do their part to combat this situation. We completely agree with the principle that everyone must pay their taxes fully and legitimately. Everyone must pay them, and no one should be able to resort to tax havens, for when they do, Canadians do not get value for their money.
I am very concerned about this bill. We agree that this situation should be debated in the context of a truly independent bill. How many issues are never properly debated here in the House of Commons? This is a problem.
A year ago, the government tabled Bill C-74, an omnibus bill that is almost 800 pages long. Ostensibly, the bill implements budget measures, which is fine because that is how things work. However, scattered throughout the 800-page bill are measures that have absolutely nothing to do with the budget tabled by the Minister of Finance.
Need I remind the House that the Liberal Party was elected nearly three and a half years ago? I would say it was a sad day, but democracy is what it is, and we respect the choice Canadians made. Those people were elected on the strength of a clear promise.
I have here the Liberal Party's platform, which was called “Real Change: A New Plan for a Strong Middle Class”. The title sure sounds good. On page 30, under “Prorogation and omnibus bills”, it says:
We will not resort to legislative tricks to avoid scrutiny.
How interesting. That is exactly what is going on with Bill C-74.
[The former Prime Minister of Canada] Stephen Harper has used prorogation to avoid difficult political circumstances. We will not.
That is the Liberal Party of Canada saying that.
Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating his proposals.
That is exactly what is going on with Bill C-74. Here is the end of the paragraph:
We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.
That is the Liberal Party promise.
Bill C-74 flies in the face of the party's promise. This reversal should certainly not come as a surprise. I remind members that in their document the Liberals said that they would run three small deficits in the first three years and would then balance the budget in 2019. In reality, the three small deficits they promised were three times higher than projected. The budget that was supposed to be balanced will be presented soon, as the Minister of Finance announced yesterday, but we know that it will not be balanced. There will be a deficit in the neighbourhood of $20 billion or more.
In that same document, the Liberals also spoke about electoral reform. Did that happen? No. This is the very essence of the Liberal Party's privilege. It was elected on its promises, but it did not keep its word. On October 19, 2015, Canadians elected the Liberal Party. I respect democracy, but as they say, the people's will is not foolish, but the people can be fooled. This is exactly what is happening here.
Bill C-74 is supposed to implement budget measures, but dozens of items that have nothing to do with the budget were slipped into the bill, in particular clauses 715.3, 715.31, 715.32, 715.33, 715.34, 715.35, 715.36 and 715.37. This is no small matter. These clauses are found in the section “Remediation Agreements”. I do not have the time to read all of them. They directly address the problem that the government and, unfortunately, Canadians are grappling with today, and have to do with the special agreements that the government can enter into with corporations that, sadly, have failed to fulfill their responsibilities and find themselves in court on fraud charges.
That is exactly the crux of the SNC-Lavalin scandal, which broke two weeks ago. Every day new situations arise that are an embarrassment for the government. The problem is that they are not only an embarrassment for the government but also for Canadians, who want answers.
I would like to remind members that these clauses were inserted into an 800-page bill. Earlier, the parliamentary secretary said that we could have discussed it in committee. Quite frankly, how would he expect us to directly address this issue if we have to study an 800-page bill. Today, we are spending many hours, and rightfully so, studying Bill S-6 on trade and tax agreements between Canada and Madagascar. However, we did not have the time to appropriately debate a matter that has embarrassed the Government of Canada and, consequently, Canada and Canadians.
Unfortunately, that is typical of this government, which says one thing and then does the opposite. When it comes time to get to the bottom of things, the Liberals trip on their own shoelaces, which results in what we have been seeing for the past two weeks. It has been a real comedy of errors on the part of the government, which is incapable of telling Canadians the truth about the Liberal SNC-Lavalin scandal. What is more, the government is preventing the former attorney general from giving clear and specific explanations.
Day after day, we have been asking the Prime Minister very simple questions. On September 17, 2018, he met with the former attorney general. Yesterday, in the House, the Leader of the Opposition asked the Prime Minister more than a dozen times what was said at that meeting and who asked for the meeting to discuss what has now become the Liberal SNC-Lavalin scandal. The Prime Minister never gave a clear answer to the very simple question of who asked for the September 17 meeting. The same goes for the other very important meeting in the Liberal SNC-Lavalin scandal, the meeting that took place on December 5, 2018, at the Château Laurier, between the former attorney general and the Prime Minister's former principal secretary, Gerald Butts.
Once again, yesterday, the leader of the official opposition asked the Prime Minister a very simple question: who asked for the meeting between the Prime Minister's top adviser and the former attorney general?
The Prime Minister did not give anything remotely resembling an answer, even though it was a very simple question. Which one of them requested the meeting? He was not even able to answer that. Canadians want answers. They have the right to know what happened.
Canadians deserve clear and simple answers to clear and simple questions on this issue. The Liberal SNC-Lavalin scandal is totally unacceptable to Canadians.
What we have noticed is that we are debating this bill in the House for many hours today, which is fine. I agree we have to debate Bill S-6, with respect to taxation between Canada and Madagascar. This is an important issue and we have to take the time to address it. On the other hand, why did the government dodge its responsibility to address the specific issues we find in proposed sections 715.32 to 715.37 of Bill C-74, an omnibus bill of more than 800 pages? Those sections in the bill addressed the specific issue that we have today with the Liberal SNC-Lavalin scandal.
This is the trademark of the Liberals. They say one thing during their electoral campaign and do the exact reverse during their mandate. Do members remember that they had clearly indicated in their platform that they would never table omnibus bills containing other issues that do not address the main omnibus bill, which is the budget implementation bill?
Unfortunately, they failed to do what they had promised Canadians, just as they failed to bring about the electoral reform they promised in their electoral campaign. Everybody knows they failed to budget the Canadian economy properly. During their campaign, they said there would be three small deficits in the first three years to invest in infrastructure and then a zero deficit in 2019. This is not the situation. During the last three years, the current government has tabled three huge deficit budgets. That is the reality of the situation. It is three times more than was expected and what they promised.
Also, 2019 was supposed to be a zero-deficit year. That is not the case. We are talking about at least $20 billion of deficit. The government has failed its responsibility and nobody in the government knows when the budget will balance, or I should say, when the budget will balance itself. That was the famous economic theory of the Right Hon. Prime Minister of Canada, who is the only person in the world to table that economic theory, which is absolutely stupid. However, this is the Liberal trademark.
Talking about deficits, let me remind members that, during the election, the Liberals said they would run small deficits because they wanted to invest in infrastructure. Let me remind hon. colleagues that the plan was to invest $180 billion in infrastructure over the next 10 years, starting in 2015. Only 10% of that amount has been invested in infrastructure. Therefore, the huge deficits were not for infrastructure but for the daily business of the government, which was not elected to do that.
I want to reiterate that our party supports Bill S-6, but unfortunately, although we are spending plenty of time debating the omnibus Bill C-74, which is perfectly normal, there are other very important elements that the government snuck in and that should have been debated. If they had been, maybe the Liberal SNC-Lavalin scandal we are facing today would not have happened.
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Winnipeg North Manitoba
Liberal
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, I appreciate very much the member opposite's support of the legislation being debated. In part of his speech, he talked at length about commitments and promises. It is really important we recognize that the government has fulfilled many promises. There is always room for us to do better, and we have a Prime Minister who is committed to doing that.
The most significant commitment that this Prime Minister and government gave was to improve the standards for Canada's middle class, and we have been very much focused on Canada's middle class. Even when the opposition has been focusing its attention on personal attacks on the Prime Minister, we have continued to stay focused on Canada's middle class and those aspiring to become a part of it.
We see this in our policy decisions and legislation such as Bill S-6, as well as tax treaties. We have been expanding the whole area on international trade, which adds to our economy and gives strength to Canada's middle class. That was a solemn commitment given to Canadians in the last election, and one that we fulfill, day in and day out, through very progressive measures such as tax cuts to the middle class, increases to the Canada child benefit and the GIS, as well as so many other things.
Does my friend acknowledge that the legislation we are debating today is yet another piece of the puzzle that ultimately builds Canada's economy through the expansion of trade, which helps Canada's middle class?
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, my colleague from Winnipeg North talked about personal attacks. I remind him that it is nothing personal. Liberals were elected on a platform that talked about small deficits. It is not a personal attack when we raise the issue that it is no longer a small deficit but a huge deficit. They were elected on a promise that 2019 would be a zero-deficit year. It is not a personal attack when I raise the fact that it is not a zero-deficit year and that they have no idea when we will get back to zero deficit. It is not personal. It is a fact.
It is a fact that before being elected, Liberals said there would be no more omnibus bills, but that is not the reality. This is exactly the issue we have with the SNC-Lavalin scandal. It is because they put something in an omnibus bill. Therefore, there are no personal attacks.
We recognize the fact that we have trade agreements with other countries. We had one with Europe, which was done when the Conservatives were in office. We worked so hard with the hon. member for Abbotsford to get a deal with the Pacific, which we achieved. Also, this is the first time in history we have a trade deal with America that is worse for Canada than it was before. That is the heritage of the Liberal government.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I want to thank my colleague for his contribution to the debate. We could also spend all day talking about the Conservative government's legacy. The Conservatives seem to have forgotten everything that happened before 2015. Even in his own speech, the member mentioned that the Conservatives took tax evasion seriously and devoted considerable efforts to fighting it, yet that is totally false.
If there is one government that was soft on tax evasion, it is the Conservatives. The Liberals are hard to beat on that score, but I have to say that the Conservatives outdid them. That goes without saying. As the minister often reminds us, the former revenue minister, Mr. Blackburn, said himself that tax evasion was not a priority under the Conservatives. I am certain that my colleague and other Conservatives are aware of this.
Could my colleague confirm whether the Conservatives are now making the fight against tax evasion a priority? What solutions would he propose? Apart from stating that it is a priority, the Conservatives need to come up with solutions, as the NDP is doing. How exactly would the Conservatives fight tax evasion? Do they have any solutions, like a total overhaul of the tax system?
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, I commend my colleague from Sherbrooke whom I respect and hold in high esteem. I appreciate his contributions to the debates here in the House and in parliamentary committees.
I did say in my remarks that tax evasion is a fight that should not be fought alone and that Canada should contribute to the effort. Did we do enough when we were in government? The NDP naturally does not think so. We believe we made an effort and took steps in the right direction.
I did mention in today's debate that we have to move in the right direction. We believe that Bill S-6 moves in the right direction, and in fact, we had taken similar steps ourselves, and if Canadians should decide to put their trust in us in eight months time, then we will continue in that direction.
Solutions are not limited to the debates we have here in the House or the measures we propose here. It is a step in the right direction, but this is a fight that needs to be taken up internationally in a joint effort by every country around the world. As long as there is a loophole in any country that leaves room for tax evasion, any effort or will to combat it is a step in the right direction. We understand that, but everyone has to do their part if we are going to get concrete, real, or tangible results in combatting tax evasion.
Jim Eglinski Conservative Yellowhead, AB
Mr. Speaker, we can come up with all the regulations we want as an individual country. Parts of Bill S-6 and Bill C-82 are about that. However, he talked about the importance of working with other governments from other countries.
Could he perhaps exemplify what he meant when he said that it was important that we work with other countries?
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, I want to pay my respects to my hon. colleague, the member for Yellowhead. In the last three and half years it has been a privilege to work with him and to know him better.
As a reminder, a few days ago he talked about his experience as an RCMP officer and having contact with first nations people. This is what MP work is all about. It is based on our own experience, talking about it and sharing it with people, to provide good legislation.
I will get back to my hon. colleague's question.
We believe that if Canada takes action to prevent tax evasion but other governments, countries or administrations do not, the miscreants and scoundrels of that world who live in Canada will be able to use the loopholes in these other countries to pay less tax. They will avoid their social responsibility and the responsibility that we all have as Canadian workers. That is what we must fight against. There needs to be more of these types of agreements. This is the case today with Bill S-6.
Are we doing enough? We can never do enough.
Are there any improvements to be made? Certainly, more than ever.
Should we sign new agreements with as many countries as possible, or even global agreements for the whole world? That is the objective we need to have.
Until then, every step is a step in the right direction.