Debates of May 26th, 2021

Finance—Main Estimates, 2021-22

[The Deputy Chair, NDP, Carol Hughes]

I want to remind the member that it is not polite to interrupt and jump in while the minister or somebody else has the floor. This was also dealt with during question period today with another member.

The hon. member for Mission—Matsqui—Fraser Canyon is rising on a point of order.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Chair, I am sorry. I think that might have been a delay.

[The Deputy Chair, NDP, Carol Hughes]

I appreciate the hon. member for saying that, but I would have preferred an apology instead, as it was not a delay when the hon. minister had the floor.

The hon. member for Kingston and the Islands.

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

Madam Chair, I am thankful for the opportunity to stand today to participate in this committee of the whole debate and, most importantly, for the opportunity to highlight our government's proposed investments, which will help us deliver and build back a better, fairer and more prosperous future by investing in Canada's green transition and more green jobs. Today I will speak for eight to nine minutes, and then I have some questions for the Minister of Middle Class Prosperity and Associate Minister of Finance.

As outlined in budget 2021, job growth means green growth. It is about leaving behind a healthy planet with clean water and clean air for our children and their children. It is about addressing the current climate crisis, and it is about securing jobs today and creating the careers of the future. Our recent budget sets out a plan to reduce greenhouse gas emissions by 36% from 2005 levels by 2030 and puts us on a path to achieve net-zero emissions by 2050. It proposes funding to achieve our 25% land and marine conservation targets by 2025. Since the release of budget 2021, the Prime Minister has announced that Canada will increase its emissions reduction target by 40% to 45% below 2005 levels by 2030.

By making targeted investments in transformational technologies, we can ensure that Canada benefits from the next wave of global investment and growth. Investing now in areas such as clean fuels and carbon capture will foster well-paying, middle-class jobs now and for many years to come. Canada can and will foster jobs and sustainable growth by building on what we already do so well. The resource and manufacturing sectors that are Canada's traditional economic pillars, including energy, mining, agriculture, forestry, steel, aluminum, automobiles and aerospace, will be the foundation for our plans to continue toward a more sustainable and green economy.

That is why we proposed a historic investment of $5 billion over seven years in the net-zero accelerator on top of the $3 billion we already committed in December for this program. This funding will help even more companies invest to reduce their greenhouse gas emissions while growing their businesses, and will help build and secure Canada's clean industrial advantage by decarbonizing large emitters, transforming key sectors and accelerating the adoption of clean technologies across the economy that are needed to meet our goal of net zero by 2050. This investment will help cut our pollution, spur clean technology innovations, attract major investments, create middle-class jobs and foster the development of key supply chains to ensure that Canadian industries and workers can use their low-carbon advantage to compete and win.

Tackling climate change and achieving net-zero emissions also require Canadians and Canadian industries to reduce the release of harmful greenhouse gases into the atmosphere in every way possible. Carbon capture, use and storage, also known as CCUS, is an important tool for reducing emissions in sectors that emit the most. This tool uses cutting-edge technologies to capture carbon dioxide emissions from fuel combustion and industrial processes, or directly from the air. The captured carbon can then be stored deep underground or used to create new, innovative products. CCUS is the only technology currently available that can produce negative emissions.

Budget 2021 proposes to introduce an investment tax credit for capital invested in these projects, with the goal of reducing CO2 emissions by at least 15 megatonnes annually. We also know that investments are needed to support research and development activities that will lead to technological breakthroughs, reduce costs and ensure that Canada remains at the forefront of the global market for oil.

That is why budget 2021 proposes to provide $319 million in funding to Natural Resources Canada to support research and development activities in carbon capture, use and storage technologies to improve their commercial viability. Together, these proposed actions related to the CCUS will help Canada achieve our carbon reduction emissions goals and position Canada as a leader in the provision of cleaner energy and innovative new technologies around the world.

Canadians are well aware that climate action starts at home, and home energy retrofits can have a big impact on emissions reductions. Whether people replace drafty windows, improve insulation to keep their houses warm in the winter and cool in the summer or install heat pumps, retrofits will help Canadians make their homes more energy efficient and can also help to better protect their homes from climate risks. These retrofits also make our homes more comfortable, reduce our energy bills and create good middle-class jobs, especially for skilled workers and tradespeople. They can also help spur clean growth by developing an industry for energy efficient retrofits, including the development of a Canadian supply chain for high-efficiency home renovation products.

The 2020 fall economic statement put forward a program to provide Canadians with one million free energy audits and up to 700,000 grants, valued at up to $5,000 each, to complete energy efficient retrofits for home improvements. To further help homeowners, budget 2021 proposes to provide $4.4 billion to the Canada Mortgage and Housing Corporation to help homeowners complete home retrofits through interest-free loans worth up to $40,000. Loans would be available to homeowners and landlords who undertake retrofits identified through an authorized EnerGuide energy assessment.

In combination with the grants announced in the fall economic statement, this would help eligible participants afford deeper, more costly retrofits that have the biggest impact in reducing a home's environmental footprint and energy bills. The program will also include a dedicated stream of funding to support low-income homeowners and rental properties serving low-income renters, including co-operatives and not-for-profit-owned housing. The program would be available this summer, and it is estimated that more than 200,000 households would benefit from this opportunity.

Finally, before I conclude, I would like to touch on zero-emissions technology. As more countries commit to achieving net-zero emissions by 2050, the demand for zero-emissions technology will only grow. With a highly educated and motivated workforce, Canada is well positioned to use this as an opportunity to create sustainable jobs for Canadians and continue toward a more sustainable economy.

Strengthening our manufacturing sector and creating good, well-paying jobs is key to growing a resilient, competitive middle class. That is why budget 2021 proposes a 50% reduction in the general corporate and small business income tax rates for businesses that manufacture zero-emissions technologies.

In conclusion, our government knows that we are at a pivotal moment. Just as the inventions of the steam engine and personal computer triggered transformative economic shifts, today the global economy is quickly turning green, and it is only the beginning of the sustainable future that our planet needs. It is essential for the prosperity of both current and future generations of Canadians for Canada to be at the forefront of this great transformation. Our government knows the importance of making sustainable decisions, and we will do whatever it takes to provide a greener future for all Canadians.

I will now to turn to my questions for the minister.

In addition to the COVID-19 pandemic, the climate crisis remains a significant concern for all Canadians from coast to coast. Last year we announced the Canadian net-zero emissions accountability act with a goal of net-zero emissions by the year 2050. We know that investors are putting their money into just about anything that has the word “green” attached to it, and the act will help achieve net-zero emissions. However, we must ensure that it is not a barrier to investment and is a strategic plan for competitiveness.

While some members of the House continue to debate whether climate change is real and whether we should take official positions on it, our government has a real plan to address climate change. I would therefore like to ask the minister to explain why it is important to adopt a climate lens and how it will impact the lives of Canadians in our fight to end rapid climate change. Specifically, I would like her to reference the $1.4-billion project proposed in the budget to respond to climate-related disasters.

[Mona Fortier, Liberal, Minister of Middle Class Prosperity and Associate Minister of Finance]

Madam Chair, I would like to thank my hon. colleague for his hard work in this domain.

Climate change is real. Our government has brought forward a serious plan that cuts pollution while creating jobs, middle-class growth and economic opportunity for everyone.

As my colleague said, COVID-19 has shown us that Canadians have what it takes to come together, mobilize and take action in the face of this crisis. The climate crisis is just as great a challenge. Budget 2021 builds upon the historic investments we have been making since 2015, more than $100 billion to build a cleaner, healthier economy with more good jobs for Canadians.

We have proposed $5 billion over five years for the net-zero accelerator to support and secure Canada's clean industrial advantage by investing in decarbonizing large emitters, transforming the economy and key sectors, and accelerating the adoption of clean technology across the economy. These funds will spur Canada's shift to innovate net-zero technologies and attract the large-scale investments needed to meet our goal of net-zero by 2050. It will also help Canadian firms grow and create the jobs of our low-carbon future.

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

Madam Chair, I want to turn briefly to the COVID-19 pandemic and the continued work that this government has been doing over the last year, but, more importantly, recognizing the work of the frontline workers who have literally put their lives at risk every day to protect Canadians and fight toward ending this public health crisis.

Last year, our government acted quickly to meet the needs of Canadians at a time when they needed it the most by rolling out programs with record speed. Since December, the government has continued to ramp up our vaccine rollout so that more Canadians will have access to vaccines, should they choose to get one. Obviously, we encourage all Canadians to do their part in fighting COVID-19.

Could the minister speak to Canada's COVID-19 immunization plan and how budget 2021 will ensure that all Canadians have access to vaccines?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Madam Chair, I thank my hon. colleague from Kingston and the Islands for raising this important question.

This has been an historic year for Canadians, and we have already administered a first dose of vaccine to just over 60% of Canadian adults. We continue to rank in the top three countries in the G20 for the number of doses administered. As the Prime Minister said yesterday, everyone who wants to be vaccinated will get their first dose by June 30.

The pandemic is the most serious global public health crisis we have ever faced. As my colleague said, we have seen the resilience of Canadians who have continued to make sacrifices for the greater good of our community. We are committed to supporting all Canadians during the recovery. That is why we have—

[The Assistant Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Kingston and the Islands for one last question.

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

Madam Chair, I will go back to the topic of our economy, its growth and, in particular, fostering greener spaces and ensuring cleaner air for both current and future generations of Canadians.

Last year, we announced a healthy environment and a healthy economy, our plan to combat the climate crisis and to help us get there. To fulfill that goal of net-zero carbon by the year 2050, we must continue to build a more sustainable approach that expands investments in clean energy technologies and accelerate growth to the forest-based bioeconomy.

Could the minister explain briefly how budget 2021 aims to promote green, sustainable economic growth in Canada while working to reduce greenhouse gas emissions and how these steps will lead to a greener future and new job opportunities for all Canadians?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Madam Chair, our government knows the importance of green economic growth, and we have a serious plan that addresses climate change and supports our environment while promoting the growth of our economy. Budget 2021 proposes an investment of $5 billion toward a green bond framework to provide investors with information on opportunities to finance Canada's work to fight climate change and protect the environment through green bonds.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, I will share my time with the member for Mégantic—L'Érable, and I will use my portion of the time to ask a series of questions.

Some new small businesses that were at the pre-revenue stage prior to the pandemic have been systematically excluded from the government's programs. This has been widely acknowledged, including by officials.

Do these estimates fix that problem, which has been faced by new businesses that were established right at the beginning of the pandemic?

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

Madam Chair, I have had exchanges with the member opposite about this issue.

When we created the emergency relief programs, our immediate objective was to support the businesses that were up and running that had no choice but to try to keep going when the pandemic hit. We absolutely understand the particular situation faced either by businesses that have been created since the pandemic or businesses that were on the verge of launching when the pandemic started.

I will finish in my next answer. I realize my time has run out.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, I only need a yes or no to the question. Do the estimates contain any provision for relief for new small businesses, yes or no?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, Bill C-30 and the budget contain a huge amount of support for all Canadian small businesses. I will start with the digital adoption program, which is going to be a huge productivity boost. There is also talk about the tax incentive—

[The Assistant Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Calgary Rocky Ridge.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, can the minister say if there is anything for businesses that have been excluded from the relief program so far? That is what I would like to know, if the minister can answer that question, please.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, the question was asking if there are measures to support new businesses. In fact, in the budget, there are so many measures to support all small businesses across the country. I spoke about the digital adoption scheme. I would like to talk about an essential tax measure that will encourage businesses to invest in themselves.

I will finish discussion of that—

[The Assistant Deputy Chair, Liberal, Alexandra Mendes]

The hon. member for Calgary Rocky Ridge.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, for a small business that does not meet the criteria of the wage subsidy or rent subsidy, is there anything that will allow these businesses to survive and pay their immediate bills?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, I will just finish by talking about this tax measure because I think it is one of the most productivity-enhancing measures in the budget.

For the next three years, businesses will be able to count, as a tax expense, up to $1.5 million of investment in themselves in each of those three years. All Canadian businesses can do that.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, I understand that businesses that spent all of their savings building a plant, restaurant or a store, and had a grand opening date in March, still do not receive eligibility for the rent subsidy or the wage subsidy.

Will they be eligible for the new hire subsidy?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, I think it absolutely makes sense that businesses that were already up and running, and that had no choice but to continue, have been the priority of our government's support measures. I think that is absolutely right.

I absolutely agree with the member opposite that we need to have continued support for all Canadian businesses into the recovery, and this budget makes unprecedented investments in small businesses that will do exactly that.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, the estimates include $81.5 million for Mitacs to administer a small business internship program. That is included in these estimates.

How was Mitacs chosen?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, Mitacs is a very reputable, long-standing Canadian government program that has done tremendous work in supporting innovation in the Canadian economy.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Chair, I certainly do not disagree, but that was not my question. I asked how it was chosen.

Maybe specifically, was there an open bid process, or by what specific criteria was Mitacs chosen?