Bryan May

[National Defence, June 10th, 2022]

Mr. Speaker, we are assuring Canadian security in contributing to global security. That is why our government has not only been increasing spending by 70% between 2017 and 2026, following a decade of Conservative cuts—

[Amyotrophic Lateral Sclerosis, June 3rd, 2022]

Madam Speaker, in 2015, the House first recognized June as ALS Awareness Month, a time to support Canadians who battle against this fatal neurological disease and honour their resilience and their strength. ALS affects about 3,000 Canadians and has no known causes. It strikes fast and has a life-altering impact on those affected and their families. Throughout June, the ALS Society of Canada is running educational and fundraising activities to help those living with ALS and support research as we work to find a cure.

I would like to wish two incredibly strong constituents of my riding of Cambridge, Graham Braun and Dennis McIntyre, best wishes as they, along with their families, battle ALS. I extend my support to all those suffering from this horrible disease.

We will find a cure.

[Income Tax Act, June 2nd, 2022]

Mr. Speaker, I appreciate the opportunity to take part in today's second reading debate on private member's bill, Bill C-240. As we know, the bill would provide an exemption from capital gains tax in respect of donations to charities resulting from certain arm's-length dispositions of real estate or private corporation shares.

At the onset, I would like to make it clear that I support the intent of the bill, which is to say that I support and encourage the making of charitable donations. However, the bill is problematic in how it aims to achieve this.

First and foremost among my concerns is that the proposed measure in the bill is regressive. This means that it would primarily benefit a particularly small class of high-income individuals rather than encouraging charitable giving by the broader public. More specifically, it would disproportionately benefit those who are holding private corporation shares or real estate other than a principal residence, which is to say, higher-income Canadians. That makes the bill unfair and puts it at odds with our government's goal of cutting taxes for the middle class while raising them on the top 1%.

For example, we have increased support for families and low-income workers through programs such as the Canada child benefit and the Canada workers benefit, which have helped lift over one million Canadians out of poverty since 2015, including 435,000 children. We have also increased the guaranteed income supplement top-up benefit for low-income single seniors and enhanced the GIS earnings exemption, and we are increasing old age security for Canadians aged 75 and older in July 2022.

We will continue to examine ways to improve the tax and benefit system to ensure that it is well targeted and fair. However, providing a tax break that disproportionately benefits the wealthy is not in keeping with this approach. What is more, the measure is poorly targeted at achieving the bill's goal of supporting charitable donations. The proposed measure could in fact result in a windfall gain to donors without actually increasing the amount of their charitable giving to charities. That is because donors could simply substitute their existing cash donations to charities with donations of private corporation shares and real estate in order to receive greater tax benefits.

Considering the significant flaws in this proposed legislation, it is important to bear in mind that the Government of Canada's tax support for charitable donations is already recognized as being among the most generous in the world. The primary mechanisms for delivering this tax support are the charitable donation tax credit for individuals and the charitable donation tax deduction for corporations.

For the 2019 tax year, individuals are estimated to have claimed over $11 billion in such donations through this provision, with federal tax assistance on these donations amounting to approximately $3 billion. At the same time, corporations are estimated to have donated $3.1 billion through this provision, with federal tax assistance of approximately $655 million.

In terms of the charitable donation tax credit for individuals, the tax assistance received through the CDTC more than offsets any paid tax on the income used to finance the donation for the vast majority of individuals who donate more than $200 a year. The CDTC provides a 15% credit on the first $200 of annual donations, and for most donors, the CDTC provides tax assistance at 29% on the portion of donations over $200. What is more, donors with incomes subject to the 33% marginal rate can also claim a 33% credit on the portion of donations exceeding $200 made from this income.

In addition to this federal tax assistance, all provinces and territories have charitable donation tax credits, with the average provincial credit being approximately 17%. In fact, total combined federal-provincial tax assistance averaged out to be around 46% on donations above $200 in 2019. For donors with taxable income in excess of the highest rate, tax assistance on donations would be around 50% in most provinces and as high as 54% in Nova Scotia and Alberta.

Moreover, the government already offers special incentives to encourage donations of important assets such as publicly listed securities, ecologically sensitive land and certified cultural property through an exemption from capital gains tax for most such donations.

When the exemption from a capital gains tax is included, the total tax relief provided on such donations can be as high as 81% when provincial incentives are added. The charitable donation tax credit can generally be claimed up to 75% of the donor's net income in a year. Unused donations can be carried forward for up to five years, or up to 10 years in the case of ecologically sensitive land.

Unfortunately, Bill C-240 may actually undermine the effectiveness of the tax incentives provided under the ecological gift program. That is because currently the only type of real estate donation that is eligible for the full capital gains exemption is ecologically sensitive land that has been certified as such by Environment Canada and donated to certain qualified recipients to ensure conservation.

Under the proposed measure, this targeting of support to donations of ecologically sensitive land would be blown wide open. That is because under this proposal, donations of the proceeds of the disposition of real estate to any charity would receive the same tax assistance, and this could introduce a perverse incentive for potential donors to simply sell their land to a third party, like a real estate developer, and donate the proceeds to any charity thus avoiding the ecogift certification and valuation process. In short, it could result in a donor getting the same tax benefit from turning ecologically sensitive land into a parking lot as they would get from donating it to an entity that would preserve and protect it.

The measure is also expected to be costly. In February 2021, the Parliamentary Budget Officer estimated that the cost of this measure to the federal government would be approximately $778 million over five years. That is a lot of money to dedicate largely to wealthy Canadians at a time when we are working to rebuild from the impact of the COVID-19 pandemic.

Supporting Bill C-240 would almost certainly increase the pressure on government to also provide special exemptions for donations of other types of property, such as virtual currency or cash gifts made after tax income.

Such tax changes would ideally be undertaken through the budget process, which enables the government to fully consider trade offs, balance priorities and undertake new fiscal commitments only to the extent that they are affordable. A private member's bill like Bill C-240 does not afford us that scope.

These serious shortcomings must be weighed against the generous and effective incentives for charitable giving that are already in place to encourage people to donate more to charities across Canada by reducing the after-tax cost of giving. Having done so, our government simply cannot lend its support to this private member's bill.

I am thankful for the opportunity to make that and my position clear on this issue.

[Committees of the House, June 1st, 2022]

Madam Speaker, I hope I speak for all of us in the House when I say that this concurrence debate sends a very strong message to Vladimir Putin. It also sends a message to our NATO allies that they need to continue to have conversations in their houses and their parliaments that recognize the importance of getting this done.

I will go back to the fact that in the face of Russian aggression we stand united with our allies, our partners, in the defence of freedom for democracy and the right of people to determine their own futures. If not now, when would we try to band together like this? I recognize there has been criticism of NATO in the past, maybe of it being divided, but if we think of ourselves as an open hand, Vladimir Putin has accomplished making us into a fist.

We are committed. We are together. We need to move forward as quickly as possible.

[Committees of the House, June 1st, 2022]

Madam Speaker, the short answer is absolutely. There is support throughout not just our caucus but I imagine throughout the House to move forward on this as quickly as possible.

If I could just take a moment here, I want to thank the member opposite and ask him to thank his family for their service. The commitment in that family sounds quite impressive.

It is that commitment that we are talking about here today. It is about recognizing the need to focus on getting this done, getting it done right and getting it done quickly.

[Committees of the House, June 1st, 2022]

Madam Speaker, Sweden and Finland will undoubtedly be assets to this alliance. We know this. We encourage our allies, all of our allies, including Turkey, to promptly support their membership. We are moving quickly. I would point out that the fact we are speaking here today on this to move the process through as quickly as possible is proof of that. There is no time to waste. We know that this is usually a very lengthy process. Speeding up this process as much as we possibly can, as quickly as we can, is what we want to do here today.

[Committees of the House, June 1st, 2022]

Madam Speaker, Canada has long held the position that, in times of uncertainty, discord and doubt, our international relationships are more important than ever.

For over 70 years, the NATO alliance has afforded member states the opportunity to work together on our largest shared defence and security challenges, both on the battlefield and in the boardroom. Its impact and influence can be felt here in North America, across Europe and beyond.

We know how important this alliance is to our safety and global stability, so we, of course, welcome any changes that will make it stronger and safer, including the admission of Sweden and Finland into the alliance. As the Prime Minister recently noted, both countries have long-standing ties to NATO, making important contributions to NATO exercises and operations. We also closely align in our values, on the importance of peace, territorial integrity and upholding the rules-based international order.

It is clear that Europe and the entire world is under threat from Vladimir Putin's reckless and unprovoked war in Ukraine. This war is not just an attack on a smaller democratic neighbour. It is a very real threat to our rules-based international order, and the biggest threat since the end of the Cold War. It is also symptomatic of the resurgence of a great power competition, and the return of authoritarian states vying for influence and control through military might. These geopolitical shifts have reinforced just how important it is for all of us to work together to stand united against those who seek to redraw maps and rewrite history to suit their own needs.

In the face of these threats, the work we do as part of the NATO alliance is more important than ever. This includes the military support that Canada provides on land, sea and in the air to NATO missions in Europe and around the world. Our largest contribution is through Operation Reassurance, supporting assurance and deterrence measures in central and eastern Europe, letting our allies know that we will be there for them in good times and bad, and standing together against those who would seek to undermine our alliance or member states' security and sovereignty.

As part of this mission, we have almost 700 Canadian soldiers leading NATO's enhanced forward presence battle group in Latvia. Canadian military personnel stand shoulder-to-shoulder with soldiers from 10 NATO countries, demonstrating the strength of our alliance and protecting stability in the region.

Canada has played an important role in Latvia for five years, and we have recently expanded our efforts by deploying a battery of M777 artillery guns with forward observers and an electronic warfare troop. As part of our sea component of Operation Reassurance, we also have HMCS Montreal and HMCS Halifax deployed to Standing NATO Maritime Group One. In the air, we have a CP-140 Aurora long range patrol aircraft, and two CC-130 transport aircraft operating in the Euro-Atlantic area, and we look forward to resuming our enhanced air policing mission in Romania later this year. We also have 3,400 CAF members standing by for the NATO Response Force, should their support be required.

Our support for global peace and stability does not stop at NATO's borders. Since February 2022, we have committed hundreds of millions of dollars in military aid to Ukraine, including anti-tank weapons, rockets, M777 howitzers, drone cameras, 155 millimetre ammunition, rifles, armoured utility vehicles, satellite imagery and communications equipment. Some of this aid has already been delivered, and we are working hard to provide the rest as quickly as possible.

I am pleased to say that some of the military aid delivered comes from the $500 million that our government announced in the last federal budget. This is the case for the 20,000 rounds of 155 millimetre artillery that the Minister of National Defence recently announced, at the cost of $98 million, which will be crucial in Ukraine's fight to defend its eastern territory.

Prior to the war, we also helped train over 33,000 members of the Ukrainian security force through Operation Unifier, learning valuable skills from one another and supporting Ukrainian efforts to become stronger and better prepared to respond to Russia's aggression.

While Ukraine's success in holding back Russia is entirely its own, I know many CAF members are proud to have worked alongside those who are now on the front lines fighting for their freedom. We are all inspired by their bravery and their dedication. As I mentioned earlier, Finland and Sweden have long-standing ties to NATO and are among the alliance's most active partners. They are two of the six countries under the partnership interoperability initiative, which includes Ukraine and which makes particularly significant contributions to NATO.

Both countries field strong and capable militaries, whose soldiers have fought alongside ours in Afghanistan, Bosnia and Herzegovina, Kosovo, and Libya. Other armed forces have worked extensively together on training, including NATO missions in Iraq. Our ties run even deeper. As Arctic nations, our long-standing co-operation has contributed to peace and stability in the Arctic. For these reasons and more, Canada unreservedly and enthusiastically supports Finland and Sweden's decision to pursue NATO membership.

In Ukraine, across Europe and around the globe, Canada supports our allies and partners, both on and off the battlefield. As we move forward, we will continue standing with them in the name of global peace and stability.

We know, as our biggest defence and security threats evolve, so too must the alliance evolve. To support these efforts and to keep peace with our allies, Canada is making new investments in defence, here at home, in North America and across the globe. In budget 2022, we announced a new investment package for defence worth $8 billion, as well as our plans to update Canada's defence policy, to become more responsive to the current defence and security environment.

Through these efforts, we will ensure that our people have the modern fit-for-purpose equipment they need when they deploy. We will also keep supporting NATO's diplomatic efforts, including welcoming Sweden and Finland into the alliance. We know we are stronger and more capable of tackling our biggest defence and security challenges when we work together with our like-minded allies and partners. Canada was one of the original founding members of NATO when the organization came into existence in 1949, and we remain just as dedicated to its success and to global peace and stability today.

In missions across the globe, including in central and eastern Europe, we work alongside NATO allies and partner countries to safeguard the alliance against external threats, including those stemming from Russia's aggressive actions in Ukraine.

While we live in a defensive and security environment defined by uncertainty, I remain optimistic that the values like peace, freedom, and adherence to the rules-based international order will win out against authoritarianism, doubt and division. The addition of two like-minded countries to our alliance makes this outcome all the more likely, and we are looking forward to supporting Finland and Sweden through the accession process.

[Housing, May 30th, 2022]

Madam Speaker, affordable housing is at the top of many Canadians' minds, and we recognize this includes Canadian Armed Forces members. That is why we have committed to constructing more housing units for CAF members, and why there are services and benefits in place to assist personnel as they relocate.

In order to meet increased operational requirements for military housing, the Department of National Defence is working with stakeholders to align resources and acquire additional housing. The CAF is continually looking at ways to improve compensation, benefits, policies, practices and services so that we are compassionate and responsive to the needs of our members and their families.

People are at the core of our military. It is important that they have the support they need so that they can best defend Canadians at home and uphold peace around the globe. We are not only ensuring operational effectiveness this way, but we are also ensuring that CAF offers an appealing career path to help us retain the best and brightest personnel in service to Canada.

[Housing, May 30th, 2022]

Madam Speaker, military members and their families are our top priority and we are taking steps to ensure that they are in fact supported. We know many Canadians are deeply concerned about housing, and in many ways a life in the Canadian Armed Forces amplifies this issue.

CAF members move frequently, and when they are posted to a place where housing is more expensive, it can be extremely challenging for them and their families. This is why the Department of National Defence is improving access to housing for our members.

In 2021-22, we began allocating $40 million per year for 10 years to be invested in the DND residential housing program. Starting in 2022-23, DND has allocated an additional $15 million per year for three years. This means that in 2022-23, we will be investing $55 million in residential housing for CAF members.

This includes renovation projects to ensure the existing 11,540 housing units are functional and suitable. Some of this funding will go toward constructing new housing units at bases and wings over the next several years. In addition to improving housing access to members, the Canadian Armed Forces is offering them a number of benefits for relocation anywhere in Canada, including reimbursing legal fees and real estate fees.

If members who have to move encounter challenges selling their old houses or finding new ones, or their family needs more time to adjust, a CAF member can proceed unaccompanied to the new location and lodging will be paid for up to six months, or longer if authorized by the CAF. If the residence cannot be sold, the CAF will also cover some expenses for dual residences up to six months.

Most importantly, we are listening to our members and their families. The CAF is conducting surveys continuously during the active posting season to gather feedback on how the relocation experience can be improved.

Through budget 2022, the Department of National Defence also announced an increase of $8 billion in funding over five years for the Canadian Armed Forces on top of our planned SSE investments, and we are updating our defence policy to ensure it continues to be relevant in the evolving defence and security environment.

In February 2021, we increased military members' rates of pay to ensure alignment with the increase received by the federal public service. In addition, to ensure the post living differential allowance effectively supports CAF members and their families and addresses affordability concerns, the Department of National Defence is reviewing that policy.

We will always seek to support the people who choose to serve their country with a robust compensation and benefits framework. As part of the CAF reconstitution plan, we are making sure that we are doing everything we can to take care of our people. This involves rebuilding the CAF's effective strength, transforming defence team culture and emphasizing the physical and mental well-being of our people.

For example, through national initiatives like Seamless Canada, we are making sure CAF members and their families are not facing the challenges that come with posting out of province or territory alone. Supporting our families is central to having a strong, healthy and modern military. We are continually exploring ways to ensure CAF members and their families have what they need to live in uniform.

[Foreign Affairs, May 19th, 2022]

Mr. Speaker, we will continue our efforts so that Ukraine can win this war. That is why, very recently, the Prime Minister announced an additional $50 million in military aid, which includes 18 drone cameras, $15 million in high-resolution satellite imagery, up to $1 million in small arms and related ammunition and additional ammunition for the M777s.

Ukraine can continue counting on Canada to support its fierce resistance against this illegal war by Vladimir Putin.