Debates of Jan. 31st, 2022

Question No.94—

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

Mr. Speaker, with regard to (a), in Canada, consumer price inflation is calculated using the consumer price index, or CPI, which measures the price level for a representative basket of goods and services purchased at the consumer level. This basket of goods and services includes consumer prices for items ranging from groceries to operating a vehicle and taking public transportation. Increases in total inflation means a higher cost of living for consumers. This, in turn, reduces the purchasing power of households, which can lead to reduced real consumer spending and ultimately lower economic activity more broadly.

The Government of Canada does not estimate the effects of CPI inflation on trucking costs, nor are there CPI data specifically on trucking costs. Moreover, trucking costs are more likely to be linked to commercial or producer prices, as opposed to retail or consumer prices, on which the CPI data are based.

With regard to (b), the Government of Canada does not have estimates of the impact of trucking costs on projections of consumer prices. As noted above, CPI data on trucking costs are not available. Of note, many other costs influence food prices, including agriculture prices, manufacturing and processing costs, and distribution costs for modes of transportation beyond trucking.

According to the Economic and Fiscal Update 2021, which was released by the Department of Finance Canada on December 14, 2021, private sector economists expect total CPI inflation to be 3.3% in 2021 and 3.1% in 2022. By 2023, inflation is expected to return to within the 1% to 3% inflation control range of the Bank of Canada and to have essentially returned to the 2% inflation target by 2024.

Question No.96—

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

With regard to government analysis on the impact of the Bank of Canada's low inflation target on the New Brunswick economy: (a) has the government done any projections on the impact of maintaining the low inflation target on New Brunswick's economy, and, if so, what are the results of such projections, broken down by economic indicator; and (b) has the government done any projections on the impact of abandoning the low inflation target on New Brunswick's economy, and, if so, what are the results of such projections, broken down by economic indicator?

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

Mr. Speaker, policy-makers and the general public readily acknowledge that the best contribution of the Bank of Canada to the well-being of the country is to achieve a low and stable rate of inflation. The government reiterated the importance of price stability in its recent renewal of the monetary policy framework with the Bank of Canada, as it is clear that abandoning the low inflation regime would be detrimental to the economy of New Brunswick, just as it would be detrimental to the economy of any other Canadian province or territory.

Admittedly, as a result of COVID-related supply disruptions, inflation is currently higher than what we were accustomed to over the last decade. This is true in Canada and in many other countries around the globe. This is a matter of concern to the Bank of Canada and the government. However, most market observers around the world view the factors keeping inflation elevated to be temporary. As a result, the Bank of Canada expects inflation to ease back and to reach its 2% target by late 2022. The bank and the government remain committed to low and stable inflation and are taking actions to ensure that the temporary forces pushing up prices do not become embedded in ongoing inflation.

Question No.102—

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

With regard to government analysis on the impact of the Bank of Canada's low inflation target on the Saskatchewan economy: (a) has the government done any projections on the impact of maintaining the low inflation target on Saskatchewan's economy, and, if so, what are the results of such projections, broken down by economic indicator; and (b) has the government done any projections on the impact of abandoning the low inflation target on Saskatchewan's economy, and, if so, what are the results of such projections, broken down by economic indicator?

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

Mr. Speaker, policy-makers and the general public readily acknowledge that the best contribution of the Bank of Canada to the well-being of the country is to achieve a low and stable rate of inflation. The government reiterated the importance of price stability in its recent renewal of the monetary policy framework with the Bank of Canada, as it is clear that abandoning the low-inflation regime would be detrimental to the economy of Saskatchewan, just as it would be detrimental to the economy of any other Canadian province or yerritory.

Admittedly, as a result of COVID-related supply disruptions, inflation is currently higher than what we were accustomed to over the last decade. This is true in Canada and in many other countries around the globe. This is a matter of concern to the Bank of Canada and the government. However, most market observers around the world view the factors keeping inflation elevated to be temporary. As a result, the Bank of Canada expects inflation to ease back and to reach its 2% target by late 2022. The bank and the government remain committed to low and stable inflation and are taking actions to ensure that the temporary forces pushing up prices do not become embedded in ongoing inflation.

Question No.114—

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

With regard to government litigation related to non-compliance of contractual obligations, which has been commenced or has been ongoing since January 1, 2020, related to contracts signed by the government: (a) how many contracts are the subject of litigation; and (b) what are the details of each contract involved in the litigation, including the (i) date, (ii) description of the goods or services, including the volume, (iii) final amount, (iv) vendor, (v) country of the vendor, (vi) litigation court?

[Gary Anandasangaree, Liberal, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Mr. Speaker, the Department of Justice undertook an extensive preliminary search in order to determine the number of litigation files and quantity of information that could fall within the scope of the question, as well as the amount of time that would be required to prepare a comprehensive response. It was concluded that producing and validating a comprehensive response to this question would require that hundreds of files be reviewed manually and that relevant information, if any, be extracted on a case-by-case basis, which is not possible in the time allotted and could lead to the disclosure of incomplete and misleading information.

Question No.116—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

With regard to the Fraser Salmon Collaborative Management Agreement: (a) have any environmental assessments been done on how this agreement has impacted BC salmon stocks since the agreement became effective in July 2019, and, if so, what are the details, including the date the assessments were conducted and the findings; (b) what negative impacts have been found by government studies or assessments related to the agreement and what specific actions has the government taken to reduce or reverse these negative impacts, if any; and (c) does the agreement usurp any Department of Fisheries and Oceans regulations related to the salmon stock and, if so, which regulations?

[Mike Kelloway, Liberal, Parliamentary Secretary to the Minister of Fisheries]

Mr. Speaker, the Fraser Salmon Collaborative Management Agreement, the “agreement”, was signed in July 2019 by the Minister of Fisheries, Oceans and the Canadian Coast Guard, DFO, and the president of the Fraser Salmon Management Council, FSMC, on behalf of 76 signatory first nations from the Fraser River watershed. The agreement was the result of over three years of negotiations and over a decade of foundational work by DFO and first nations, and provides a framework for the co-management of Fraser River salmon between DFO and the FSMC.

The agreement creates, promotes and supports government-to-government, nation-to-nation structures for collaboration, governance, management and conservation of Fraser River salmon. The agreement provides a framework for tier-2 decision-making by DFO and the FSMC via the Fraser Salmon Management Board, FSMB.

The FSMB has been meeting monthly since January 2020 to develop the FSMB’s annual work plan, which is the key document that guides the work of the parties and implementation of the agreement in an incremental manner. The FSMB’s inaugural annual work plan for the 2021-22 fiscal year was approved in March 2021, and the parties have been working to advance shared priorities identified in the annual work plan since then.

Since DFO and the FSMC entered into the agreement, there have been no environmental assessments on British Columbia, B.C., salmon stocks with the specific goal of assessing any impacts of the agreement on B.C. salmon stocks. While there have been no assessments specific to the potential impacts of the agreement, DFO does carry out a wide variety of scientific activities to monitor and assess B.C. salmon stocks on an ongoing basis. These activities include monitoring abundance, harvest rates, ocean survival and other aspects of these salmon populations.

The agreement is clear that existing authorities of the minister and first nations are not fettered. Sub-section 2.1(b) of the agreement states that the agreement is intended to “support the collaborative exercise by DFO and the Member Nations of their respective decision making authorities, responsibilities, laws and jurisdictions as they relate to Fraser Salmon.” Further, sub-section 2.2(a), item (v), states that the parties agree that the agreement “does not oblige the Parties, including the Minister, the FSMC and the Member Nations, to act in a manner inconsistent with their legislative or regulatory jurisdictions or authorities, or their laws, customs and traditions.” Therefore, no DFO regulations related to salmon stocks are usurped.

Question No.117—

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

With regard to the Enbridge Line 5 pipeline and the government’s invocation of the 1977 treaty: (a) what timeline has been conveyed by the United States to Canada regarding when (i) the federal case will be heard, (ii) a final decision is expected; and (b) what is the timeline for any parallel action that the government is taking with regards to negotiations with the United States to ensure that Michigan’s attempt to shut down the pipeline is unsuccessful?

[Rob Oliphant, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, the following reflects a consolidated response approved on behalf of Global Affairs Canada ministers. With respect to part (a), there are currently two “federal cases” in the U.S. federal District Court for Western Michigan in relation to Line 5. The litigants in both cases are Enbridge and the State of Michigan, not the United States Government, nor the Government of Canada. Therefore, Canada is not in a position to comment on timelines regarding when these cases will be heard or when final decisions are expected to be handed down by the presiding judge.

With respect to part (b), on October 4, 2021, in response to the State of Michigan’s November 2020 order to shut down Line 5 in the Straits of Mackinac, Canada invoked article IX(1), the negotiation clause of the dispute settlement mechanism of the 1977 Canada-U.S. Transit Pipelines treaty. Invoking dispute settlement triggers formal negotiations under the treaty with the U.S. We have consistently supported the continued, safe operation of Line 5, and raised it with the U.S. government at every level. Line 5 represents a critical part of Canada’s energy infrastructure and economy.

Question No.119—

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

With regard to requests from First Nations, Metis and Inuit communities for the identification of undocumented and unmarked burial sites, mass graves, cemeteries, or individual remains at former Indian Residential Schools since November 1, 2015, broken down by year and category of request: (a) how many requests for funding have been made; (b) how many requests in (a) were provided for the funding requested; (c) how many requests in (a) were partially funded; (d) how many requests in (a) were denied funding; (e) what is the total amount of funds dedicated to these requests that have not yet been met; (f) what is the average number of days for processing applications in (a); and (g) broken down by date and attendees, with which Nations, communities, or their representatives, have the ministers of Crown-Indigenous Relations and Indigenous Services consulted?

[Jaime Battiste, Liberal, Parliamentary Secretary to the Minister of Crown-Indigenous Relations]

Mr. Speaker, insofar as Crown-Indigenous Relations and Northern Affairs Canada is concerned, the response is as follows: Thousands of children were sent to residential schools and never returned home to their families and communities. The families were often provided with little to no information on the circumstances of their loved ones who had gone missing or had died, or the location of their burial. The loss of children who attended residential schools is unthinkable and we must ensure that all Canadians know how this terrible policy is affecting families and communities today.

Canada remains committed to supporting survivors, their families and communities through their healing journeys and is supporting communities by providing funding to create a historic record of children who died at residential schools, locate their final resting places, and commemorate and memorialize these lost loved ones.

On August 10, 2021, the Government of Canada announced additional funding to enhance support for indigenous peoples and communities as they continue to respond to and heal from the intergenerational trauma of residential schools. Approximately $320 million in additional support was dedicated to indigenous-led, survivor-centric and culturally informed initiatives and investments to help indigenous communities respond to and heal from the ongoing impacts of residential schools.

Of this funding, $83 million supplements existing investments for community-led processes to research and locate burial sites as well as to commemorate and memorialize the children who died at residential schools. These resources are in addition to the funding provided in budget 2019, bringing the Government of Canada's commitment to support this important work to $116.8 million.

Within the time frame selected, 73 funding requests were received to conduct work at 99 Indian residential school locations. To date, 21 requests have been approved, valued at just over $36 million, which cover work at 19 Indian residential school locations. Seven applications are close to final funding decisions, while 43 applications are still undergoing review or refinements in collaboration with indigenous communities and organizations.

In August 2021, the program initiated service standards for acknowledging new applications, at 24 hours; for application triage, at 24 hours; and for establishing an initial contact, at 48 hours after acknowledgement. These service standards are being consistently achieved. However, the average timeline to refine and finalize an application can vary greatly depending on the complexity of the proposal. Some projects cover a single site, while others target an entire province or territory. In addition, currently 25 applications have overlapping field investigation requests.

Indigenous communities wishing to accomplish work at an Indian residential school site or engagement within their community will be supported by Canada. Through their funding resource requests, communities outline their anticipated financial needs and priorities. Departmental officials review activities and expenses to ensure they are eligible under the existing authorities. Departmental officials, working with their colleagues from other departments, provide a whole-of-government approach to supporting communities in advancing this work and to leveraging the programs and funding authorities at our disposal. The applicants’ identified readiness to undertake this important work also determines when funds are to be dispensed.

To avoid duplication in funding for any given site, communities are encouraged to take an inclusive approach with other communities impacted by the Indian residential school location. Requests may include funding to support these collaborative approaches, coordination and participation from multiple communities. Canada continues to work with indigenous communities and organizations to provide the necessary support as quickly as possible.

Both the Minister of Crown-Indigenous Relations and the Minister of Indigenous Services as well as their offices work closely with indigenous communities or their representatives on this delicate matter. As events are unfolding at a rapid pace, any reporting of possible meetings or of the topics discussed risks providing incomplete or misleading information. However, ministerial meeting notes are made publicly available on open.canada.ca.

Question No.135—

[Tom Kmiec, Conservative, Calgary Shepard, AB]

With regard to pharmaceutical drugs, treatments and therapies authorized by Health Canada since January 1, 2020: (a) how many pharmaceutical drugs (or new drug submissions) were granted authorization; (b) what are the details of each drug in (a), including the (i) name of the drug, (ii) date of the approval, (iii) purpose of the drug, including the disease or condition treated by drug; and (c) of the pharmaceutical drugs listed in (b), how many and which ones were for treatments or therapies for rare diseases, known as orphan drugs?

[Adam van Koeverden, Liberal, Parliamentary Secretary to the Minister of Health and to the Minister of Sport]

Mr. Speaker, Health Canada is committed to openness and transparency. Information related to approved drugs, their date of approval, their approved indication, including how many and which ones were for rare diseases, is available both in annual highlights reports, available at https://www.canada.ca/en/health-canada/services/drugs-health-products/highlights-reports.html, and in databases that are updated in real time: the notice of compliance database, https://health-products.canada.ca/noc-ac/index-eng.jsp, and the drug product database, https://www.canada.ca/en/health-canada/services/drugs-health-products/drug-products/drug-product-database.html. These databases are an important part of Health Canada’s open data assets, and are listed accordingly on the Government of Canada’s open data portal, https://open.canada.ca/en/open-data.

Question No.138—

[Gary Vidal, Conservative, Desnethé—Missinippi—Churchill River, SK]

With regard to payments made to individuals through the Canada Emergency Response Benefit (CERB) or the Canada Recover Benefit (CRB), and broken down by each program: (a) how many individuals received their payments via (i) direct deposit, (ii) a paper cheque; (b) of the individuals who received their payments via a paper cheque, how many were mailed to an address outside of Canada; (c) how many of the paper cheques were counter-signed or cashed by a third party; (d) what specific action was taken by the government to ensure that money in the cheques cashed in (c) went to the intended individuals; (e) approximately how many cases of CERB or CRB fraud is the Canada Revenue Agency (CRA) aware of involving paper cheques; (f) what specific action is CRA taking to investigate the cases in (e) and recover the money; and (g) how much money has been recovered to date, as a result of the efforts outlined in (f)?

[Diane Lebouthillier, Liberal, Minister of National Revenue]

Mr. Speaker, with regard to part (a), please note that this part of the response refers to applications processed and payments issued for the Canada emergency response benefit, CERB, and the Canada recovery benefit, CRB. These numbers represent CRA CERB and CRB information.

The CERB was open to application between March 15 and September 26, 2020, and applicants could retroactively apply until December 2, 2020. As of May 2, 2021, there were 22,653,848 applications processed.

The CRB was open to application between September 27, 2020 and November 20, 2021, and applicants could retroactively apply until December 22, 2021. As of December 4, 2021, there were 29,824,974 applications processed

With regard to part (a)(i), 84% of the CERB payments were issued by direct deposit i.e., 19,029,232, and 90% of the CRB payments were issued by direct deposit, i.e., 26,842,476.

With regard to part (a)(ii), 16% of the CERB payments were issued by cheque, i.e., 3,624,615, and 10% of the CRB payments were issued by cheque, i.e., 2,982,498.

Please note that the distribution by payment method is based upon the payments issued and not unique applicants.

With regard to parts (b), (c) and (d), the CRA is unable to respond in the manner requested.

With regard to part (e), the CRA is committed to ensuring that individuals receive only the benefits to which they are entitled, while protecting the integrity of the COVID-19 support program. In terms of the verification of suspicious activity, the analysis and review work is ongoing.

At this time, the CRA is continuing its work to determine the number of suspicious claims of CERB or CRB that have occurred, regardless of the method of payment used, cheques or direct deposit. Due to the sensitive and evolving nature of the work, the CRA cannot disclose the number of cases currently under investigation nor details about the different payment methods used for these benefits.

With regard to part (f), several measures have been put in place to prevent identity theft, and the CRA continues to closely monitor any activity that may be suspicious.

The CRA takes the protection of taxpayer information very seriously. In this regard, measures are in place to identify suspicious activities related to taxpayer accounts and to identify and prevent high-risk or potentially suspicious claims related to COVID-19 support programs. As soon as the CRA detects a suspicious transaction, or when it is notified of an alleged incident of identity theft, it conducts an in-depth review, and contacts the potential victims to inform them of the incident and to restore the information in their files. Where appropriate, the CRA works with the Royal Canadian Mounted Police, the Canadian Anti-Fraud Centre, financial institutions and local police to investigate the incident.

The CRA is committed to ensuring that individuals receive only the benefits to which they are entitled, while protecting the integrity of the CERB and CRB programs. As with other benefits administered by the CRA, it will take steps at a later time to verify that claimants were eligible to receive payments for any of the new COVID-related economic measures. The purpose of these reviews is to confirm that individuals are authenticated and eligible for the benefits they receive. However, the CRA does not release specific information related to its review strategies, as releasing this information could jeopardize its compliance activities and the integrity of Canada’s tax system.

With regard to part (g), the CRA’s analysis and review work in terms suspicious, eligible and ineligible benefit claims, and the amounts that must be returned to the CRA, is still ongoing.

Dealing with complex cases may require several months of review and verification. The CRA combines advanced data analytics and business intelligence gathered from many sources, including law enforcement agencies and financial institutions, to support these efforts. In some cases, the CRA asks taxpayers to provide documents and information that will need to be authenticated before they can continue with their applications. In other cases, the CRA will identify suspicious transactions and take other preventative measures before lifting account restrictions and releasing any payments.

Therefore, the CRA is unable at this time to provide the number of suspicious claims related to the COVID-19 support programs nor the amounts associated with them.

Question No.141—

[Dave MacKenzie, Conservative, Oxford, ON]

With regard to the government's purchase of supplemental F-18 aircrafts from Australia: (a) what is the total number of such aircrafts that have been purchased to date; (b) of the aircrafts in (a), how many were (i) flyable, (ii) unflyable; (c) how many of the flyable aircrafts are still currently operational; and (d) what is the total amount that has been spent to date on purchasing the aircrafts?

[Bryan May, Liberal, Parliamentary Secretary to the Minister of National Defence]

Mr. Speaker, National Defence is taking concrete steps to ensure that the Royal Canadian Air Force can protect North American airspace and continue to fulfill Canada’s NORAD and NATO commitments.

That is why the Government of Canada launched the interim fighter capability project to procure 18 F-18 Hornet fighter aircraft from Australia with the option to acquire up to seven additional non-flyable aircraft that can be used for testing, training aids or spare parts.

This project will ensure Canadian fighter jet capability is maintained as National Defence moves toward acquiring 88 advanced fighter aircraft to replace its current fleet of CF-18 Hornet aircraft.

Transfer of the Australian F-18s to Canada began with the delivery of the first aircraft on February 21, 2019, and was completed by May 2021.

Once delivered to Canada, National Defence conducts a detailed inspection of each aircraft and proceeds with the modifications and upgrades necessary to integrate the aircraft to Canada’s existing fleet of CF-18s. This work ensures that these aircraft will be available to supplement the current fleet of CF-18s until the advanced future fighter aircraft is procured.

With regard to parts (a) and (b) (i) and (ii), Canada has purchased a total of 20 F-18 Hornet aircraft. Eighteen aircraft are deemed flyable and will be integrated into service. Two aircraft are deemed non-flyable and were purchased for spare parts to ensure the long-term capability of the fleet until a permanent fleet is fully operational.

With regard to part (c), six aircraft are currently operational. The remaining 12 are undergoing inspections and modifications in preparation to be released into service.

National Defence will continue to integrate the Australian F-18 Hornet aircraft into Royal Canadian Air Force service at regular intervals, until the final aircraft is integrated by December 2022.

With regard to part (d), the total direct cost that has been spent to date on purchasing the 20 aircraft is $127.4 million.

Question No.150—

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

With regard to government statistics on labour shortages: how many unfilled jobs are there currently in each of the job sectors identified in the North American Industry Classification System, broken down by province or territory and by region?

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, the job vacancy and wage survey, JVWS, provides comprehensive data on job vacancies by industrial sector for Canada and the provinces, territories and economic regions.

Data for Canada, the provinces and territories are released quarterly in the following publicly available table: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, job vacancies, payroll employees, job vacancy rate by industry sector, Canada, provinces and territories, quarterly, unadjusted for seasonality.

Note that because of the COVID-19 pandemic, data collection for the job vacancy and wage survey was suspended for the second and third quarters of 2020.

Detailed information is available in The Daily, job vacancies, third quarter 2021, released on December 20, 2021. Data on job vacancies from the job vacancy and wage survey for the fourth quarter of 2021 will be released on March 22, 2022.

More information about the concepts and use of data from the job vacancy and wage survey is available online in the Guide to the Job Vacancy and Wage Survey, catalogue number 75-514-G.

Question No.155—

[Martin Shields, Conservative, Bow River, AB]

With regard to the carbon emissions related to the Canadian delegation's, led by the Minister of Environment and Climate Change, travel to the United Nations Climate Change Conference (COP26) in Glasgow: (a) what is the government's estimate on the amount of carbon emissions or carbon footprint related to the delegation's (i) flights to and from the event, (ii) other emissions; (b) did the government purchase any carbon offsets related to the trip, and if so, what was the total amount spent on carbon offsets; and (c) what are the details of any carbon offset purchases related to the trip, including (i) date of purchase, (ii) amount spent, (iii) amount of carbon emissions the purchase was intended to offset, (iv) vendor?

[Steven Guilbeault, Liberal, Minister of Environment and Climate Change]

Mr. Speaker, departments and agencies that generate greenhouse gas, GHG, emissions in excess of one kilotonne per year from air travel have been required since 2019-20 to contribute annually to the greening government fund, GGF, www.canada.ca/en/treasury-board-secretariat/services/innovation/greening-government/greening-gov-fund.html. They have been charged a TBS-set fee based on the average total annual air travel emissions of that organization over the previous three years.

Question No.157—

[Leah Gazan, NDP, Winnipeg Centre, MB]

With regard to individuals who received the Canada Emergency Response Benefit (CERB) and were later deemed ineligible and have been ordered by the government to repay the benefit: (a) how many individuals are at or below the low-income after tax threshold, and of those individuals, (i) how many live in deep poverty as defined as below 40% of adjusted median income, (ii) how many will have other income benefits reduced this year based on an increased 2020 income due to receipt of the CERB; (b) what are the demographics, including the (i) family type, (ii) province or territory of residence, (iii) gender, (iv) disability, if any, (v) any other available demographic data in relation to these individuals; and (c) which federal benefits will be reduced based on increased 2020 income due to receipt of the CERB?

[Diane Lebouthillier, Liberal, Minister of National Revenue]

Mr. Speaker, the CRA has not required any individuals to repay any of the emergency or recovery benefits, and no repayment deadline has been established. Therefore, the CRA is unable to respond in the manner requested.

In cases where the CRA, through its review activities, has determined that an applicant is ineligible, the CRA contacts the applicant to advise of the decision and the eligibility criteria that were not met. The CRA also informs the applicant that if they have received a benefit payment to which they were not eligible, they will eventually need to repay the amount.