Mr. Speaker, it is an honour to rise to speak to Bill C-15, the budget implementation act, and what it means for my constituents in West Vancouver—Sunshine Coast—Sea to Sky Country.
First, I want to say a few things about budget 2025, a plan to build Canada strong. It comes at a time when Canada's economy is being deeply impacted by American tariffs. It is estimated that these tariffs are going to shave about $50 billion off our GDP, which works out to about $1,300 per Canadian. With this budget, we are focused on protecting the sectors that are most impacted by U.S. tariffs, including forestry, which is so important to my province of British Columbia. The demographic that is most impacted right now is young people, and this budget has investments that are going to create 175,000 jobs for young people.
This is a budget that is designed to spend less on government so Canadians can invest more. This will be done by reducing spending on government by about $60 billion over five years to create the fiscal room to get investment in Canada from both the public and private sectors. The measures in this budget are geared to driving $1 trillion in investment over five years to build the infrastructure we need as a country to diversify our trade internally, building on our work to eliminate interprovincial trade barriers, and externally, leveraging the 50-plus free trade agreements we have around the world.
The budget has key investments, like $13 billion for Build Canada Homes so we have an agency to build affordable housing at scale using prefabricated and modular designs; $51 billion in spending for public infrastructure, with a focus on housing-enabling infrastructure; $6 billion in new trade infrastructure for things like ports; and an additional $10 billion for the Canada Infrastructure Bank so we are able to make important investments like, for instance, building out the pan-Canadian grid, which includes the investment that was announced last week for the north coast transmission line. Importantly, the budget makes buy Canada the default for any government project to ensure that Canadians and Canadian companies are going to benefit from it.
In order to implement the budget, Bill C-15 changes a few dozen laws, and I want to use the remainder of my speech to discuss several of the key measures in this mix.
First, Bill C-15 would get rid of a handful of populist measures that may have sounded good, but in practice were hurting our communities. Division 2 of part 3 would amend the Underused Housing Tax Act to end the underused housing tax in respect of 2025 and future years. The UHT has been in effect for three years and has the noble goal of taxing property owned by non-Canadians that is not being used productively and not being put into the long-term rental pool. To see houses empty during a housing crisis rightly causes Canadians to be angry.
This measure is having an unintended impact on communities like Whistler, where the municipality has zoned certain areas to be short-term rentals and has required them to be that way by covenant. In fact, the municipality has sought foreign direct investment to build up the accommodation capacity to welcome visitors. The end effect is that we are taxing the investors we sought for an objective that could never be achieved.
After several years of lobbying to get an exemption for this, including getting a recommendation from the Standing Committee on Finance, these measures have now been repealed. I want to say a special thanks to Barrett Fisher, Dave Brown, Louise Walker and so many others for making this a possibility. In the end, it was found that administering the program actually costs more than the revenue that it was bringing in. Thousands of Canadians were being caught in a filing requirement despite never being the target. By repealing it in its entirety, this is no longer going to be an issue.
Second, Division 3 of part 3 would amend the Select Luxury Items Tax Act to end the luxury tax in respect of aircraft and boats. The luxury tax was brought in to put an additional tax on boats, planes and cars. Again, this sounds like a good idea, because why would we not want to tax luxury goods for the rich? It was clear from the beginning that this tax was going to be a disaster, and to no one's surprise, that is exactly what it turned out to be.
Just as in other jurisdictions that tried this, people decided to purchase other items that were not subject to the tax, like an additional home; delayed the purchase of items; or just bought them from another jurisdiction. The end result was a huge amount of lost government revenue and a loss of jobs in Canada. This very much hit home in my riding given the number of individuals involved in the boat construction industry.
It also hit the tourism industry, because we are seeing less investment in the purchases of new vessels for such things as whale watching tours, water taxis and others. Since the budget announced that this would be removed, we have seen hundreds of millions of dollars in new investments that have been promised and companies, such as those in the aerospace sector, promising about 600 new jobs that are directly tied to this change.
Budget 2025 creates and extends a number of measures that would drive productivity growth in our economy, such as the removal of the ones I just mentioned, through incentivizing private sector investment.
I want to mention just a few. By making some changes to the Income Tax Act and income tax regulations, we are bringing in what is called a productivity superdeduction. This temporary measure would allow businesses to immediately write off investments in such things as machinery, equipment, vehicles, digital systems and other productivity-enhancing technology at an accelerated rate. This is incredibly important right now because we are seeing lower investment in capital and equipment per worker in our economy than we are seeing south of the border, in the U.S. Especially with the tariff-induced uncertainty, we need to do all we can to drive investment in improving our productivity.
Locally, in West Vancouver—Sunshine Coast—Sea to Sky Country, we rely on small and mid-size businesses that depend on modern equipment. We are seeing that things like this can help support more snowcats and groomers for the tourism sector, more heavy machinery for the construction sector or more equipment for the clean-tech sector, which is a fast-growing sector in my riding.
Further to that point, the budget makes changes to the SR&ED tax credits to provide tax incentives for companies doing research and development. I have heard how important this program is from constituents, and how those investments have helped many early stage companies, including in Squamish's clean-tech hub, to get off the ground. The changes in the budget implementation act would expand the eligibility for what these credits can go to, as well as the total amount.
In the remainder of my speech, I would like to touch on an area in which I believe the government missed the mark, and that is with the proposed changes to the greenwashing provisions. Last year, through amendments that were brought forward and passed through the finance committee and that, in fact, were passed unanimously in the House, we expanded the false and misleading advertising provisions of the Competition Act to cover the environmental claims that businesses make with respect to their operations in their entirety.
These changes now require such companies to be able to substantiate these claims using one of the many internationally recognized methodologies that are out there. These changes were prompted in part by some things we are seeing in our society, such as bus ads in which we see advertising saying that, somehow, liquid natural gas will reduce greenhouse gas emissions. When this change to the law came into effect last June, we saw an immediate impact. We saw a number of companies putting disclaimers on their advertising. We saw other companies, such as the Pathways Alliance, taking down all of their communications, including such claims as that they are working to achieve net zero.
In the budget implementation act, division 43 of part 5 amends these changes to remove the requirement that this substantiation be done in accordance with an internationally recognized methodology. It also removes the third party private right of action at the tribunal. I think both moves are a mistake, but especially the latter.
While clearer guidance from the Competition Bureau on the acceptable methodologies would have been helpful, there are countless methodologies out there, such as ISO, ISSB, the GHG protocol and many others. If this measure is removed, it really puts the onus on government to finally finalize the long-promised sustainable finance measures, such as mandatory climate plans for companies and other climate-related reporting for businesses. Thankfully, the budget commits to moving forward in this.
The latter is the most concerning. In recent years, we have given the Competition Bureau significant new responsibilities and tools to tackle them with. The Minister of Industry's recent statement that we will be hawkish on competition further speaks to this, but with all of these new responsibilities, the commissioner does not have the ability to enforce all of them. That is why the third party private right of action is key. Things can take years to go through this process, and they are very opaque. The private cause of action already has a high bar to meet to utilize it, including that it needs to be in the public interest. Litigants cannot get judgments, and they can have costs awarded against them.
With that, I think it should be removed.
