Debates of Jan. 30th, 2023

Question No.1000—

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

Mr. Speaker, the 2021-22 public accounts include a net profit of $2.8 billion for the Bank of Canada. This amount is reflected in the line “Other Revenues—Enterprise Crown corporations and other government business enterprises” on the consolidated statement of operations and accumulated deficit on page 57 of volume I of the Public Accounts of Canada 2022, and includes the $1-billion constructive loss on the bank’s 2021-22 purchases of Government of Canada bonds discussed on page 16 of volume I.

Bank of Canada Governor Tiff Macklem stated at the House of Commons Standing Committee on Finance on November 23, 2022, “After a period of above-average income, our net interest income is now turning negative. Following a period of losses, the Bank of Canada will return to positive net earnings. The size and duration of the losses will ultimately depend on a number of factors, which include, in particular, the path for interest rates, the evolution of the economy and the balance sheet. The losses do not affect our ability to conduct monetary policy. I would also stress that our policy decisions are driven by our price and financial stability mandates. We don't make policy to maximize our income…. I want to stress that whatever solution is chosen, it's not going to affect how we run monetary policy. As a central bank, we are a going concern. We have liquidity. We will continue to run monetary policy guided by our mandate. We do not run monetary policy to maximize our income. Low inflation is a public good. We run monetary policy to deliver low, stable inflation.”

The senior deputy governor of the bank, Carolyn Rogers, stated the following during the same hearing: “Yes, as the governor said, we actually expect that the bank will show negative equity in the coming months. This isn't a problem that's unique to the Bank of Canada. All of our peer central banks in G7 countries are experiencing the same thing.”

The Bank of Canada’s most recent financial report was published on November 29, 2022, and can be found at https://www.bankofcanada.ca/2022/11/quarterly-financial-report-third-quarter-2022/. The bank’s 2022 annual report is expected to be published in spring 2023.

Question No.1001—

[Doug Shipley, Conservative, Barrie—Springwater—Oro-Medonte, ON]

With regard to foreign corporations claiming the Scientific Research and Experimental Development (SR&ED) tax credits, broken down by year for the last three years: (a) what is the total number of foreign companies which have claimed SR&ED tax credits; (b) what is the total value of the credits claimed; and (c) what is the breakdown of (a) and (b) by country where the company was headquartered?

[Diane Lebouthillier, Liberal, Minister of National Revenue]

Mr. Speaker, with respect to the question above, what follows is the response from the CRA as of November 21, 2022, which is the date of the question.

In order for an entity to qualify for scientific research and experimental development, or SR and ED, investment tax credits, it must file a T2 corporation income tax return with the CRA, and the SR and ED work being claimed must be undertaken in Canada by or on behalf of the entity. Please note that a Canadian subsidiary of a foreign parent entity, or a foreign entity with a Canadian branch, performing eligible SR and ED work in Canada can deduct eligible expenditures and claim the SR and ED tax credits on them to reduce taxes payable.

With respect to parts (a), (b) and (c), the SR and ED program does not isolate the requested information for foreign-controlled corporations filing SR and ED investment tax credit claims. Therefore, the requested information cannot be provided in the manner requested.

Question No.1008—

[John Brassard, Conservative, Barrie—Innisfil, ON]

With regard to COVID-19 vaccines, including boosters, purchased by the government for delivery in 2023: (a) how many doses did the government procure for an expected delivery in 2023; and (b) of the doses in (a), how many does the government project will be (i) administered to Canadians, (ii) donated to foreign countries, (iii) discarded?

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

Mr. Speaker, with respect to part (a), through its existing COVID-19 advance purchase agreements, or APAs, Canada has access to up to 93.5 million mRNA doses in 2023. This includes 30 million doses of Pfizer-BioNTech’s Comirnaty vaccine and 18.5 million doses of Moderna’s Spikevax vaccine, with options to access up to an additional 45 million mRNA doses should urgent or emergent needs arise. Canada’s APAs provide flexibility to obtain the latest formulations from suppliers, including bivalent, infant and pediatric vaccines. In addition, Canada has access to a number of non-mRNA doses. Together, these doses will ensure the COVID-19 vaccine needs of all Canadians will continue to be met.

As the COVID-19 pandemic continues to evolve, the Government of Canada is working in close collaboration with provinces and territories to better understand their 2023 vaccine supply needs. The government is also actively working with suppliers to manage supply and schedule deliveries to ensure the most optimal product availability.

With respect to part (b)(i), immunization is a shared responsibility among federal, provincial and territorial governments. The provinces and territories administer vaccines within their jurisdictions, which includes all policy and program decision-making, design and implementation required to determine which public programs to offer, which vaccines to buy, where to administer vaccines, and priority populations and eligibility criteria for vaccination.

The Public Health Agency of Canada supports provinces and territories in delivering their immunization programs in many ways, including by bulk purchasing vaccines for all jurisdictions; conducting vaccine confidence research, policy and programming; managing vaccine coverage, effectiveness and safety surveillance; facilitating immunization research; enhancing domestic manufacturing capacity; and supporting the delivery of the vaccine injury support program.

As of December 8, 2022, 94,981,582 doses of COVID-19 vaccines have been administered in Canada since December 14, 2020.

With respect to part (b)(ii), the Government of Canada recognizes the importance of a global response to the COVID-19 pandemic and supports efforts to promote global access to vaccines. In 2023, Canada will continue to work closely with its key partners to identify doses surplus to Canada’s domestic needs and ensure these doses are made available for donation. This involves actively coordinating with provinces and territories to manage domestic vaccine supply, forecast demand and track product shelf life. This also includes working closely with Global Affairs Canada and Public Services and Procurement Canada, or PSPC, to ensure that surplus doses held in federal, provincial and manufacturer inventories can be offered for international donation in a timely manner.

Lastly, with respect to part (b)(iii), as vaccination campaigns are ongoing, Canada is unable to determine at this time how many vaccines will be disposed of in 2023 due to expiration. We continue to work with provinces, territories and federal partners on demand planning and forecasting based on evolving scientific evidence and the National Advisory Committee on Immunization’s recommendations to determine supply requirements for future campaigns. Additionally, we are working closely with PSPC and vaccine suppliers to ensure that delivery schedules meet the needs of Canadians and to monitor vaccine shelf life and expiry date extensions to maximize the use of doses delivered in Canada. The Government of Canada continues to urge Canadians to stay up to date on their COVID-19 vaccines.

Question No.1009—

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

With regard to the economic modelling conducted by the Department of Finance for proposed government programs, since January 1, 2021: (a) for which government programs did the department conduct an economic modelling; (b) what are the details of how each economic modelling was done; and (c) what were the results or the findings of the economic modelling, broken down by program?

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

Mr. Speaker, the Department of Finance regularly undertakes economic modelling and analysis of policy and program proposals in order to support its advice to the Minister of Finance and cabinet. The department conducts this analysis using a wide variety of analytical modelling techniques reflecting international best practices and current academic standards. However, all economic models are subject to uncertainty, and generating precise estimates of the effects of specific policies poses considerable challenges.

In processing parliamentary returns, the Department of Finance applies the Privacy Act and the principles set out in the Access to Information Act. As a result, the Department of Finance does not regularly publish internally modelled economic impact assessments for specific program proposals. However, in budget 2021, the department released estimates of short-term impacts on gross domestic product and employment from the combined investments made in the 2020 fall economic statement, the enhanced climate plan and budget 2021. For examples of broader economic research and modelling performed by the Department of Finance, please consult the annual “Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations”, which can be found at the following website: https://publications.gc.ca/collections/collection_2022/fin/F1-47-2022-eng.pdf.

Question No.1013—

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

With regard to the government’s spectrum licensing, broken down by designated tier: (a) how many spectrum licenses are currently unused; (b) how many license holders have (i) failed to meet the deployment requirement, (ii) deployed less than 50 percent of their spectrum license; (iii) deployed less than 75 percent of their spectrum license, (iv) deployed less than 100 percent of their spectrum license; (c) what is the breakdown of each response in (a) and (b), by spectrum license (i) for mobile broadband services in the 700 MHz band, (ii) in the millimetre wave bands 26, 28 and 38 GHz, (iii) in the 3800 MHz band, (iv) in the 3500 MHz band, (v) in the 600 MHz band, (vi) for residual spectrum licences in the 700 MHz, (vii) 2500 MHz, 2300 MHz and PCS-G Block, (viii) for residual spectrum licences in the 700 MHz and AWS-3 bands, (ix) for broadband radio services in the 2500-2690 MHz band, (x) for advanced wireless services in the bands 1755-1780 MHz and 2155-2180 MHz (AWS-3); and (d) for each instance in (a) through (c), what is the name of the company that holds the license?

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

Mr. Speaker, the spectrum licence deployment requirements of Innovation, Science and Economic Development Canada, or ISED, are based on the provision of wireless services to a percentage of the population in a given service area, known as tiers, at specific times throughout the term of the licence. These graduated deployment requirements facilitate timely deployment of services across the country and include a number of milestones that must be reached during the licence term to remain compliant with the licence conditions.

Deployment requirements are established by ISED following public consultation and take input from stakeholders into account as the department pursues its objective of maximizing the economic and social benefits of this valuable and finite public resource. Deployment milestones are set up to allow licensees the opportunity to plan and deploy their networks. Licensees may put the spectrum to use as the primary licensee or through alternative arrangements, such as subordinate licensing and the transferring or subdivision of licences to secondary providers. This use by secondary providers is encouraged by ISED as it promotes the deployment of services to rural areas.

When a milestone is reached, ISED verifies that the deployment requirement has been met according to the deployment schedule. ISED’s approximately 15,000 spectrum licences are currently 100% compliant with their respective deployment conditions. If a licensee is not compliant with its deployment conditions, ISED may invoke various compliance and enforcement measures. These measures may include warnings, administrative monetary penalties, legal action, licence amendments, suspensions or other measures. However, in non-compliance cases, ISED first works with licensees to attain compliance to ensure that Canadians do not lose access to existing services that the licensee may have deployed. In the very rare instance that a licensee cannot be brought into compliance, ISED may determine that the most appropriate course of action is to not renew or even revoke the licence. Since 2015, ISED has not renewed 69 licences and has revoked three others for non-compliance.

Question No.1015—

[Michelle Ferreri, Conservative, Peterborough—Kawartha, ON]

With regard to the $938 million cost to deliver the interim dental benefits: what is the amount that will be spent on the administration of the program versus the actual payments for dental services?

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

Mr. Speaker, budget 2022 proposed funding of $5.3 billion over five years, starting in 2022-23, and $1.7 billion ongoing for a national dental care program for Canadians who earn under $90,000. The interim Canada dental benefit is the first stage of the government’s plan to improve dental care for Canadians in families with an adjusted net income of under $90,000. It is estimated that over 500,000 Canadian children could benefit from the targeted investment of $938 million. While this temporary program is in place, work is under way in parallel to develop a planned national dental care program.

While Health Canada has estimated the number of children who will benefit at 500,000, this is an estimate, and the costing includes a buffer in case the actual number of eligible parents applying is higher than anticipated.

Question No.1019—

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

With regard to the Canada Growth Fund: (a) how much funding has been released since the program's implementation; (b) which businesses and organizations will be the recipients of this funding; (c) are the recipients based in Canada; and (d) are the recipients wholly Canadian-owned and operated?

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

Mr. Speaker, with respect to part (a), no funding has been provided by the Canada growth fund, the CGF. Implementation of the first phase of the CGF is currently under way. Initial capitalization for the CGF was provided in Bill C-32.

With respect to part (b), the CGF will make investments that catalyze substantial private sector investment in Canadian businesses and projects to help transform and grow Canada’s economy at speed and scale on the path to net zero. The CGF will determine which businesses and organizations will be the recipients of this financing, and it will apply rigorous criteria to each investment it makes.

Finally, with respect to parts (c) and (d), the CGF will make investments that catalyze substantial private sector investment in Canadian businesses and projects. Among the CGF’s investment selection criteria will be long term benefits for Canada. Investments must have a reasonable chance to strengthen the development of Canadian human capital and knowledge and generate follow-on, long-term benefits for Canada beyond those realized by the specific investment. Potential long-term benefits could include activities done in Canada, the development or use of Canadian intellectual property and the creation or strengthening of Canadian value chains.

Question No.1021—

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

With regard to the Federal Economic Development Agency for Southern Ontario: (a) what stakeholders have government representatives met with since January 12, 2016; (b) on what dates were the meetings in (a) held; and (c) what was discussed at each meeting?

[Filomena Tassi, Liberal, Minister Responsible for the Federal Economic Development Agency for Southern Ontario]

Mr. Speaker, the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario, plays numerous roles in southern Ontario, including that of coinvestor, champion, convenor, collaborator, pathfinder and intelligence source. This requires officials at every level of the agency to regularly engage with numerous stakeholders through various channels. For example, representatives from FedDev Ontario engage with prospective clients and funding recipients as part of standard program delivery practices. Funding recipients for all agency programs are also reported quarterly through proactive disclosure on grants and contributions, which is published on the Open Government website. Additionally, all lobbying activity is accessible via the registry of lobbyists.

The agency is also able to share higher-level information on its multi-faceted approach to engaging with stakeholders. This includes regional, municipal and provincial governments; economic development organizations; industry associations; business accelerators and incubators; private sector firms; indigenous communities; post-secondary institutions; not-for-profit organizations that represent different communities; and under-represented groups.

The multi-faceted engagement approach includes a variety of outreach activities that are undertaken at the ministerial, executive, management and staff levels. For example, the minister leads round tables and bilateral meetings with community and industry representatives, and there are funding announcements and site visits to businesses and organizations that are leading FedDev Ontario-funded projects. These engagements provide deeper insight into regional priorities and community-driven initiatives, allow for the development and strengthening of partnerships at the local level and enhance awareness of and access to agency programs and services.

There are executive- and staff-led bilateral engagements with clients and prospective clients to promote agency programs and services to identify and catalyze opportunities for investment; provide feedback on proposals; notify applicants of funding decisions; monitor funded projects and conduct site visits; and serve as a single point of contact for clients, allowing for consistent support across projects.

Businesses and organizations that are interested in learning more about agency and federal programs also have access to executive- and staff-led technical briefings to promote FedDev Ontario programming and to help ensure all eligible organizations are aware of program parameters and how to apply. For example, the agency provided five technical briefings over the month of November 2022 to walk over 400 participants through the tourism relief fund and answer questions they had.

There is also FedDev Ontario’s contact centre and small business services team. These engagements by phone, by email or in person help entrepreneurs to better understand and improve access to the agency’s programming and government programming more broadly.

Additional pathfinding and convening services to a wide range of federal and provincial resources and partnerships are provided across the region. This includes referrals under Canada’s accelerated growth strategy, global skills strategy and industrial and technological benefits, or ITB, policy, among other programs and initiatives. With respect to the ITB, agency officials engage with defence contractors at conferences, bilateral meetings and site visits, with the ultimate goal of showcasing the industrial, innovative and research capabilities of southern Ontario and facilitating connections with local small and medium-sized enterprises, or SMEs.

There are executive- and staff-led bilateral engagements with community and industry leaders, including those with whom the agency does not have a funding relationship, to gather intelligence on economic growth opportunities and challenges across the region, as well as insight into the strategies and initiatives of different communities and industries. These engagements provide valuable feedback and insights that can inform agency and federal policies and programs.

There are executive- and staff-led bilateral engagements with provincial and municipal officials to foster a culture of continued information sharing and collaboration on economic growth in southern Ontario. These engagements support alignment on strategic policy and program files, inform project development, identify areas for coinvestments, and enhance services to businesses and entrepreneurs through more coordinated, informed pathfinding services.

There are executive-led round tables to gather on-the-ground intelligence from a broad cross-section of stakeholders on the challenges and opportunities facing a particular industry or community. These round tables can provide direct feedback on program efficacy, as well as facilitate information sharing and collaboration among participants. For example, in spring 2019, FedDev Ontario executives led a series of 20 round table events in urban and rural communities across southern Ontario.

Executives and staff attend events to help promote the work of the agency by participating on panels, delivering remarks and networking at conferences. These engagements provide opportunities to develop new partnerships and to gather intelligence on issues, trends and promising initiatives across the region that can inform policy and program development.

Beyond publicly available information and the high-level information provided, FedDev Ontario concluded that producing and validating a comprehensive response to this question would require a manual collection of information that is not possible in the time allotted and could lead to the disclosure of incomplete and misleading information, particularly given the high volume and complexity of engagement by the agency, as described above.

Question No.1022—

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

With regard to funding provided by the Federal Economic Development Agency for Southern Ontario to the Community Futures Development Corporations: (a) what metrics are being used to determine the funding amounts; (b) how is funding distributed amongst the 36 development corporations; and (c) what directions on the use of funds have been given to these development corporations?

[Filomena Tassi, Liberal, Minister Responsible for the Federal Economic Development Agency for Southern Ontario]

Mr. Speaker, with regard to part (a), operational funding provided by the Federal Economic Development Agency for Southern Ontario to the community futures development corporations, or CFDCs, is allocated based on a model utilizing metrics that include those attributed to the size of the service area, investment fund activity and the provision of business services, and includes specific allocations for CFDCs designated as operating in an official language minority community.

With regard to part (b), operational funding is distributed through a contribution agreement with each of the 36 CFDCs in southern Ontario, as well as two regional associations and one provincial association.

Finally, with regard to part (c), under the program, operational funding is provided to deliver a range of small business services, to provide for the administration of repayable financing to new and existing enterprises and to support the development of strategic plans and community economic development projects to address community needs.

Question No.1026—

[Larry Maguire, Conservative, Brandon—Souris, MB]

With regard to the government’s announcement on November 14, 2022, about securing a foreign supply of children’s acetaminophen for sale at retail and in community pharmacies: (a) are there any measures in place to ensure that some of the supply will be sold in pharmacies located in small towns and other rural areas, and, if so, (i) what are those measures, (ii) how many doses are the measures expected to make available for small town and rural pharmacies; and (b) what is the breakdown of the doses expected to be available in each province or territory?

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

Mr. Speaker, Health Canada is working closely with industry and key stakeholders to mitigate the shortage of pediatric analgesics. A primary focus of this work has been to increase the supply of these products. Over 1.9 million units of ibuprofen and record levels of acetaminophen have been released into the market by domestic suppliers in November and December. To date, nearly 1.9 million units of foreign-labelled product have also been imported to supply hospitals, community pharmacies and retailers.

Health Canada is actively working with distributors and retailers to promote fair distribution of supply across Canada and to verify that product is in fact being dispensed and sold across all communities in Canada where there is a shortage. Through engagement with key stakeholders, Health Canada has confirmed that products have now reached hospitals and retail stores in urban, rural and remote communities.

Question No.1034—

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

With regard to the government's commitments on the completion of the Okanagan Rail Trail project and the federal Addition to Reserve (ATR) process for the Duck Lake Indian Reserve No. 7 (IR#7): (a) what is the status of the ATR to Duck Lake IR#7 of former CN Rail land; (b) what are the exact areas of negotiation which have (i) been resolved, (ii) not yet been resolved, to complete the ATR; (c) how many meetings or briefings have the Minister of Crown-Indigenous Relations or the Minister of Indigenous Services had regarding the Okanagan Rail Trail project or the ATR to Duck Lake IR#7 since November 1, 2021, and what are the details of each meeting or briefing, including the dates and names or titles of participants; (d) when was the last communication sent by the government to the Duck Lake IR#7 or the Okanagan Indian Band regarding the ATR and what is the summary of contents or other details about the last communication; and (e) what is the estimated timeline for the completion of the ATR?

[Vance Badawey, Liberal, Parliamentary Secretary to the Minister of Indigenous Services]

Mr. Speaker, insofar as Indigenous Services Canada, or ISC, is concerned, the response is as follows.

With respect to part (a), ISC continues to support the Okanagan Indian Band with the addition to reserve of the former Canadian National Railway corridor lands bisecting Duck Lake Indian Reserve No. 7. Canadian National Railway is currently the registered owner of the lands in fee simple, and Canada has previously provided Canadian National Railway with a draft agreement of purchase and sale to support the transfer of lands to Canada for the use and benefit of the band. Negotiations around the purchase and sale agreement are ongoing between Canadian National Railway, the Okanagan Indian Band and Canada.

With respect to part (b)(i), since the parties are in confidential negotiations on terms of land instruments such as permits under the Indian Act, it is not appropriate for the department to comment.

With respect to part (b)(ii), the Okanagan Indian Band continues to work to resolve third party interests, including property rights required by telecommunications providers, electrical transmission and distribution services, sewer utility interests and access agreements for on-reserve developments. The Okanagan Indian Band has taken the lead on these negotiations and has the support of legal and technical experts working to satisfy additions to reserve requirements. Canada has offered to support the band with its negotiations and has assisted with providing template documents.

With respect to part (c), there have been no meetings or briefings on this project with the Minister of Crown-Indigenous Relations or the Minister of Indigenous Services Canada since November 1, 2021.

With respect to part (d), the last communication between ISC and the Okanagan Indian Band regarding the addition to reserve was sent on November 15, 2022. The email communication was regarding the City of Kelowna replacement sewer permit that is currently being reviewed by the respective legal counsel of the City of Kelowna, Canada and the Okanagan Indian Band as a requirement of the additions to reserve process.

With respect to part (e), it is difficult to estimate timelines for completion, as completion of the addition to reserve is subject to the readiness and willingness of third party interest holders to terminate or negotiate and execute federal replacement interests with the Okanagan Indian Band. This is an ISC British Columbia region priority file, and the department continues to work in collaboration with the Okanagan Indian Band to complete the addition to reserve.

Question No.1038—

[Dean Allison, Conservative, Niagara West, ON]

With regard to the statement on Twitter by the Minister of Foreign Affairs on November 28, 2022, that “Grand corruption is a threat to democracy and security”: (a) what specific actions, if any, has the (i) current Minister of Foreign Affairs, (ii) government, as a whole, taken since January 1, 2020, in order to combat corruption within the government; and (b) what assessments has the government made of the threat that corruption within the government poses to Canada’s democracy and security, and what were the dates and results of each assessment conducted since January 1, 2020?

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

Mr. Speaker, in response to parts (a) and (b), while in The Hague, Netherlands, the Minister of Foreign Affairs co-chaired the high-level round table on anti-corruption with her counterparts from Ecuador and the Netherlands. The ministers discussed efforts to advance global anti-corruption commitments, including the potential establishment of an international anti-corruption court, and committed to working together on fighting corruption to strengthen resilient democracies and promote human rights. These efforts correspond with the Minister of Foreign Affair’s mandate commitment to work with international partners to help establish an international anti-corruption court to prevent corrupt officials and authoritarian governments from impeding development that should benefit their citizens.

Global Affairs Canada, through its network of missions, along with Canada’s security and intelligence agencies, regularly assesses the threats posed to Canada’s democracy and security. Global Affairs Canada continues to support an integrated government response by monitoring and reporting on threats and wrongdoings, and provides advice to protect our democracy.

The government tables a report to Parliament on an annual basis regarding Canada’s implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the enforcement of Canada’s Corruption of Foreign Public Officials Act, or CFPOA, prepared jointly by the three ministers responsible: the Minister of Foreign Affairs, the Minister of International Trade and the Minister of Justice and Attorney General of Canada.

Question No.1040—

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

With regard to the government's plan to provide automatic advance payments on the Canada workers benefit: (a) does the government have any projections on the number of overpayments and payments made to ineligible recipients that are expected to occur following the move to the automatic advance payment system, and, if so, what are the projections, in terms of (i) dollar value, (ii) number of recipients; (b) what mechanisms, if any, are in place for those who might not qualify for future payments to opt-out of the automatic advance payments; and (c) what are the details about how the government will be recovering the overpayments or payments made to ineligible recipients?

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

Mr. Speaker, the 2022 fall economic statement proposes to automatically issue advance payments of the Canada workers benefit, or CWB, to people who qualified for the benefit in the previous year, starting in July 2023 for the 2023 taxation year. These advance payments would represent a new minimum entitlement to the program for a year based on their income in the previous year. Changes to individuals’ incomes in the year relative to the previous year would not affect their entitlement to advance payments.

Some individuals would be entitled to more support with the implementation of this minimum entitlement than they would without it. This could include cases that are due to couple formation, such as marrying someone with a higher income, for example. This may also include individuals who received minor pay increases during the year, potentially from moving into a marginally more senior role in their workplace.

Eligibility to receive advance payments during the course of a year would cease in cases where an individual is incarcerated for a period of 90 days or more; moves out of the country; or dies before the start of the benefit year. Individuals are encouraged to notify the Canada Revenue Agency promptly when any of these changes in circumstance occurs to ensure that payments cease. It is anticipated that overpayments due to payments made after one of these changes in circumstance would be rare.

If an individual were to receive advance payments that exceed the advance payments to which they are legally entitled, either due to one of the changes in circumstance noted above not being reported on a timely basis or due to a reassessment of their tax return for the previous year, any resulting overpayment would be recovered in the same manner as for other benefits based on prior-year income, such as the GST credit. In particular, the Canada Revenue Agency may keep all or a portion of any future payments due to the individual until the amount is repaid.

Overall disbursements of the Canada workers benefit to low- and middle-income Canadians will exceed $4 billion in 2023-24. These incremental entitlements are estimated to cost $750 million for the 2023-24 fiscal year. In a typical year, the Canada workers benefit supports over three million Canadians. Given the changes in employment that Canadians face, whether they are changes in the number of hours worked or in the role in which they are working, the advance payments would support up to 1.2 million additional individuals in a year.