Francesco Sorbara

[Budget Implementation Act, 2021, No. 1, May 6th, 2021]

Madam Speaker, I will be splitting my time with my good friend and colleague, the member of Parliament for Davenport.

It is a pleasure to speak on Bill C-30, an act to implement certain provisions of budget 2021. As I stated during the budget debate, we as a government will continue to have the backs of Canadian workers and businesses as we continue the fight against COVID-19, but we will also take the next steps to position our economy for ongoing recovery and economic growth.

Simply, our ongoing focus is to strengthen Canada's middle class and help those who are working hard to join it. That has been our goal since Canadians, in the fall of 2015, entrusted us with moving Canada forward. As we fast forward to today, that is what we are laser focused on doing as a government. Strengthening a growing middle class, for me, equals a more inclusive and fair society.

It is a pleasure to represent the entrepreneurial and hard-working residents of Vaughan—Woodbridge. I wish to take a moment to encourage all residents who are eligible to receive a vaccine, to please make an appointment as soon as possible. My riding is home to a number of hot spots, and we need to ensure that all of our families and friends are safe and that life can get back to normal quickly. That can only occur through vaccinations.

I describe the budget as ambitious in attempting to answer the challenges we face not only today, but also tomorrow. Bill C-30 begins to implement this ambitious blueprint to build a resilient and more inclusive Canada.

In 2015, we promised Canadians that we would reduce taxes for millions of middle-class Canadians and raise them for the top 1%, and that is exactly what we did. In 2019, we again promised Canadians we would reduce their taxes by raising the amount of income they could earn without paying federal taxes. Bill C-30 implements that promise.

Bill C-30 will raise the basic personal exemption amount from $12,298 to $13,220 for the 2020 taxation year and, once fully implemented, to $15,000 for the 2023 taxation period. This tax reduction means that hard-working Canadians, including those in my riding of Vaughan—Woodbridge, will see savings at the onset of $2.9 billion. Once fully implemented, it will result in $5.6 billion in lower taxes for 2023-2024 and thereafter.

It is estimated that hard-working individuals will save just under $300 per year, while middle-class Canadian families, on average, will save $600 per year. That is $600 for middle-class families to spend on groceries, kids' after-school sports or arts programs, or to put away as savings for their kids' education.

The increase is estimated to result in an additional 700,000 Canadians, including seniors and young people starting their careers, who will pay no federal tax at all. Just as important is that approximately 40,000 more Canadians will be lifted out of poverty by this measure. That is real progress and that is smart policy. That is how to build a stronger middle class and help those working hard to join the middle class.

Millions of hard-working Canadians will benefit from this tax reduction and hundreds of thousands will be lifted from the tax rolls. It is great to see that the implementation of the basic personal exemption increase will be done. It is an idea that I have long championed and one I put forth in the 2019 platform.

Bill C-30 will extend the current support programs through to September, and will continue to assist Canadian workers and businesses that remain impacted by COVID-19. The CEWS and the Canada emergency rent subsidy are programs that I know literally hundreds of businesses in my riding have used, and continue to use during this difficult third wave of the pandemic. Budget 2021 provides certainty and clarity to Canadian businesses on both of these key support programs. The city of Vaughan is home to over 12,000 small and medium-sized businesses and they know that our government continues to have their backs during COVID-19.

Our goal must not only be to recover the jobs lost because of the pandemic, but to once again create good, middle-class jobs for Canadians. Bill C-30 spurs job creation with a new Canada recovery hiring program that incentivizes the hiring of new workers as we emerge from the pandemic. To build a fairer and more inclusive economy that works for all Canadians, we need to ensure that our tax system is fair and inherently progressive, and that loopholes, unfair tax evasions and tax advantages are prudently closed.

In Bill C-30, our government will move forward to implement measures that will limit the benefit of employee stock option deductions for employees of large and well-established corporations. Stock options are valuable and important incentives for newly funded firms, such as tech firms or start-ups, to pay their employees as they grow the business while cash flow, or as it should be referred to free cash flow, is very low. I know how important entrepreneurs are, and how they create jobs and take on risk, and they should be rewarded. However, for well-established firms the tax advantages offered by stock options should be limited. I advocated for this differential treatment of stock options. It is a large measure for tax fairness, which I am very glad to see in Bill C-30.

In line with our allies such as France, Italy and the United Kingdom, we will move forward with the implementation of a digital tax. Bill C-30 proposes implementing a digital services tax, at a rate of 3%, on revenue from digital services that rely on data and content contributions from Canadian users. The measure would apply to large businesses with gross revenues of 750 million euros or more. It would come into effect by January 1, 2022, and is anticipated to raise approximately $3.4 billion.

We will continue to provide tools and resources to the CRA as it combats tax evasion to ensure everyone pays their fair share.

Our government continues to strengthen the disability tax credit and related programs used by Canadians with special abilities. Bill C-30 proposes to remove the time limit for a registered disability savings plan to remain registered after the cessation of a beneficiary's eligibility for the disability tax credit, and to modify rent and bond repayment obligations. This again fulfills a promise of our government to the disability community. As noted in budget 2021, an expansion of the disability tax credit would take place to provide further support and expansion to the number of disabled Canadians eligible for the DTC.

Bill C-30 implements our budget promise with a major expansion to the Canada workers benefit of nearly $9 billion over six years and $1.7 billion annually. Approximately one million additional hard-working Canadians will benefit, and 100,000 are estimated to be lifted out of poverty with a strengthened CWB. We have a moral obligation to ensure that work allows individuals to live in dignity. We know how important the dignity of work is, but we need to ensure that individuals who are working hard are not falling behind. I have long favoured the Canada workers benefit as an effective income support measure. Along with prior enhancements to the program, namely in budget 2018, approximately three million Canadians will now benefit from this program. The CWB's effectiveness was strengthened with automatic enrolment for the non-refundable credit via the Canada Revenue Agency, which ensures all Canadians who are entitled to the credit will receive it.

In conjunction with the CWB increase, it is great to see that the minimum wage for federally regulated workers will be set at $15 per hour and adjusted upward annually on the basis of the consumer price index in Canada.

Bill C-30 implements a number of measures for seniors and students, both of whom we know have been impacted by COVID-19 in different ways. For students, Bill C-30 amends the Canada Student Loans Act and also the Canada Student Financial Assistance Act. These amendments will provide students with approximately $3 billion in relief. In addition, no students will have to begin repaying their loans until they earn $40,000 per year. Combined, these measures will support an additional 121,000 students.

I wish to end by discussing our seniors, including my parents Rocco and Vincenza. These people built our country. They sacrificed, worked hard and built the strong foundations we now rely on. We know that our seniors, including my parents, helped build our country and sacrificed so much. Their fiscal prudence, work ethic and ingenuity continue to inspire me today.

We will fulfill our promise to raise old age security by 10% for seniors 75 years of age and older effective June 2022. This measure will benefit 3.3 million seniors, and is a $12 billion investment in our seniors over the next five years.

[Taxation, April 30th, 2021]

Mr. Speaker, our government understands that this tax season is stressful for Canadians, and we will continue to be there for them every step of the way.

In February, we announced that the recipients of emergency recovery benefits would be eligible for interest relief if they filed their 2020 income tax returns. The CRA also has strong taxpayer relief provisions in place, which allow taxpayers to be relieved of penalties and interest if these were incurred for reasons beyond their control. These measures will ensure that Canadians who need help this tax season will receive it.

[Taxation, April 30th, 2021]

Mr. Speaker, our government understands that this tax season is stressful for Canadians, and we will continue to be there for them every step of the way.

An update to the Canada.ca website temporarily disabled the website's web links necessary to access CRA portals. Let me be clear. At no point was CRA's IT infrastructure seriously compromised, and the glitch was very brief. The situation is now resolved, and Canadians can access those services, which have been restored.

[Port of Montreal Operations Act, 2021, April 28th, 2021]

Madam Speaker, the two parties have been in negotiations for, I believe, over two years, or 30 months to be exact. They have been unable to reach an agreement, with very little movement shown in progress. It is imperative that the government take action when it is needed. This is something that measures that bar with respect to the Canadian economy.

We cannot allow a supply chain to be break down. We have already seen shipping companies reroute their containers to other ports. That has a negative impact for the workforce in Montreal, for workers in Canada, and it is also a negative impact for businesses with respect to our supply chain. We need to maintain that certainty. We want to work and encourage the parties to reach a new collective agreement. This will be a step in that process for them to reach a new collective agreement using a mediator/arbitrator to enter the negotiations at that level.

[Port of Montreal Operations Act, 2021, April 28th, 2021]

Madam Speaker, I would disagree with much of what the hon. member has said.

This process allows for a neutral mediation arbitrator to be appointed. Actually, if the parties could agree, the individual would be appointed by them on their joint agreement or by the minister if that is not possible. There is an arbitration process involved and many opportunities with respect to labour proceedings have occurred. Strike is not the only process to exercise an individual or worker's right.

There is an aspect of the importance of ports in Canada, which is really an essential service. They are vital for our economy and supply chains. We understand how important supply chains are across this world. The pandemic has re-emphasized that situation, and we must ensure that Canadians and Canadian businesses can continue to operate and not be disrupted in this manner.

[Port of Montreal Operations Act, 2021, April 28th, 2021]

Madam Speaker, collective bargaining and collective bargaining negotiations are obviously a pillar of the country, a pillar of democracy for that matter, and this legislation is only used in exceptional circumstances. However, I would also like to add that the worst thing I would hate to see is for shipping companies to choose the Port of Long Beach or Port Newark to bring their products into North America, and then have them rerouted via rail into Canada if that is the case. I would hate to see jobs lost and our reputation for certainty for businesses. We saw it when the Suez Canal was blocked.

Ships go throughout the world and bring products everywhere, including to Canada. We must provide certainty to those shipping companies, we must provide certainty to the workers and we must provide certainty to our businesses.

[Port of Montreal Operations Act, 2021, April 28th, 2021]

Madam Speaker, it is a pleasure to see all my hon. colleagues this evening during the very important debate. I would like to inform the House I will be splitting my time with my hon. colleague and friend, the member of Parliament for Alfred-Pellan.

The government is aware of the serious harm and potentially long-lasting effects to the Canadian economy being caused by the ongoing work stoppage at the Port of Montreal. It is also aware that the work stoppage is jeopardizing the economic recovery from the COVID-19 pandemic and its associated lockdowns. We know that Canadians need the parties to find a resolution as quickly as possible. Nothing about the collective bargaining between CUPE Local 375 and the MEA, the Maritime Employers Association, has been quick.

The parties have been negotiating the renewal of their collective agreement for approximately 30 months now. During this time, they have engaged in protracted litigation to determine which activities needed to be maintained in the event of a work stoppage, held over 100 bargaining sessions supported by federal mediators and had multiple work stoppages.

Despite this long history and the ongoing work stoppage at the Port of Montreal, the parties have been unable to resolve their differences and conclude very importantly a new collective agreement. That is why the government is left with no other choice but to introduce legislation that will end the ongoing work stoppage and prevent further disruptions, resolve all matters that are in dispute between the parties, and establish a new collective agreement.

The government does not take this decision lightly, but we must act in the best interest of Canadians and Canadian businesses. The Port of Montreal is the second-largest container port in Canada. Every year, it handles over 1.6 million 20-foot equivalent units and 35 million tonnes of cargo, representing approximately $40 billion in goods. It is part of the critical economic infrastructure upon which Canadians and Canadian businesses rely.

What does all this mean for Canadians and Canadian businesses? I will explain. Even before the strike action began, there was a decrease in container volumes at the port worth $30 million per week for the month of March 2021, as compared to the prior year. The partial work stoppage reduced port capacity by approximately 30%, representing lost cargo volumes worth an estimated $90 million per week. The situation has deteriorated into a full work stoppage, which is now impeding the flow of approximately $270 million per week in cargo through the port.

In addition, there are significant risks that this work stoppage will deepen the reputational harm caused by the strikes in the summer of 2020 and create ongoing uncertainty. Even before this latest work stoppage began on April 13, we saw several companies diverting their cargo from the Port of Montreal. According to Sophie Roux, vice-president at the Montreal Port Authority, several Quebec and Ontario companies, such as Olymel, Resolute Forest Products, Société des Alcools du Québec and Dollarama, started using new routes to import or export their goods and containers back in February as the end of the truce neared. Temporary diversions could easily become permanent ones, which would result in long-lasting negative effects on the port and the integrated transportation system around it.

In March, the Shipping Federation of Canada voiced its concerns that once logistics chains are reorganized around other hubs, including those in the United States, it will be difficult to reestablish arrangements through the port. The federation believes that a port strike would have dire, long-lasting consequences.

In the wake of the parties each giving 72 hours notice for job action, the Canadian Manufacturers and Exporters expressed serious apprehension with the looming work stoppage. In its press release issued on April 12, the organization stated, “The uncertainty caused by this labour dispute has had financial impacts on Canadian manufacturers and exporters, and the partial strike risks hurting the sector even more.” It also noted that this work stoppage, “will further impact an already fragile manufacturing supply chain, particularly in Quebec and Ontario.” It continued that, “As governments are investing billions of dollars to restart the economy, it doesn't make any sense to allow a slowdown of operations at the Port of Montreal.”

As the stoppage continues, many sectors of the economy that depend on cargo transitioning through the port will find it difficult to function. I ask members to consider, for example, the Forest Products Association of Canada. Exporters face serious delays and increased costs to move products through other busy ports. They also indicate that it took that portion of the supply chain three months to recover from that strike.

It is reasonable to expect similar impacts this time. Prior to the beginning of this work stoppage, stakeholders in the forestry industry indicated that another work stoppage in the port would present the same significant challenges and costs for the forest industry.

In addition, several agri-food stakeholders have indicated that the work stoppage is damaging their ability to ship containerized agricultural products and is causing harm to Canada's reputation as a reliable exporter of agricultural products. Reputation is everything. Food producers also indicated that they had rerouted their exports to other Canadian and U.S. ports prior to the beginning of the work stoppage, something we do not want to see.

As members can see, the effects are wide ranging and the overall impact would be devastating were this work stoppage to continue, particularly as we continue to navigate the impacts of the ongoing pandemic and the associated lockdowns that have dealt such a blow to the economies around the world, including Canada's.

Back-to-work legislation is a last resort and not something this government takes lightly, but we also have a responsibility, again, to Canadians and Canadian businesses across the country. We must act in the best interests of Canadians and Canadian businesses. As the parties remain unable to come to a new collective agreement, we believe this is the best course of action. Members can rest assured we will continue to support the parties through every means possible.

[Autism, April 28th, 2021]

Mr. Speaker, April is World Autism Month, and I know we are all committed to creating a kinder, more inclusive world for individuals with autism.

Events such as Autism on the Hill and the annual unveiling of the Faces of Autism banner have been unfortunately postponed, and many other events are being held virtually. Autism organizations have had to adapt, but they nonetheless remain steadfast on calling for the creation of a national autism strategy, which I fully support.

I am proud to say that budget 2021 provides funding for the creation of a national autism strategy. Consultations will include autistic Canadians, families and stakeholders, such as Autism Speaks and the Shining Through Centre for children in my riding of Vaughan—Woodbridge. This broad and inclusive engagement process will help streamline diagnoses and treatment for Canadians with autism spectrum disorder.

I encourage Vaughan—Woodbridge constituents to find out more through the Canadian Academy of Health Sciences. Together we will build a country that is truly inclusive.

[Carbon Pricing, April 27th, 2021]

Madam Speaker, as I have said already, the federal carbon pollution pricing system is about recognizing that pollution has a cost. It is about empowering Canadians and driving innovation.

Including the fuel charge in the final amount of GST-HST for a good or service aligns with the long-standing approach to ensure that taxes apply evenly across goods and services consumed in Canada.

Furthermore, returning proceeds from carbon pollution pricing helps Canadians make more environmentally sustainable consumption choices, but does not change the incentive to pollute less. In fact, in the provinces where residents receive climate action incentive payments, most households receive more in payments than the total cost they face from the federal carbon pollution pricing system.

[Carbon Pricing, April 27th, 2021]

Madam Speaker, one of the pillars of Canada's work to combat climate change is putting a price on carbon pollution.

A price on carbon provides Canadians with an incentive to make more environmentally sustainable choices and to invest in greener alternatives that create a cleaner economy and reduce greenhouse gas emissions.

The federal carbon pollution pricing system has two components: a regulatory system for large industry, known as the output-based pricing system; and a regulatory charge on fossil fuels, otherwise known as a fuel charge.

The latter applies in the province of Saskatchewan, which the member for Souris—Moose Mountain represents. Consumers do not pay the fuel charge directly to the federal government. Furthermore, the direct proceeds from the federal carbon pollution pricing system remain in the province or territory of origin. In the case of Saskatchewan, approximately 90% of direct proceeds from the fuel charge are returned to residents through climate action incentive payments.

The remaining fuel charge proceeds are used to support small businesses, schools, universities, municipalities and indigenous groups. Fuel producers and distributors are generally required to pay the fuel charge and, as a result, the price paid by consumers on goods and services would usually have the cost of the fuel charge embedded.

With respect to the GST-HST, it is calculated on the final amount charged for a good or service. The general rule that was adopted at the inception of the GST in 1991 is that this final amount includes other taxes, levies and charges that apply to the good or service, and that may be embedded in the final price. This includes the fuel charge as part of the federal carbon pollution pricing system.

This long-standing approach to calculating the GST-HST helps to maintain the broad-based nature of the tax and ensures that tax is applied evenly across goods and services consumed in Canada. It also simplifies the vendor's calculation of the amount of tax payable, since the vendor is not required to back out other taxes, levies or charges at the point of sale in order to determine the amount of GST-HST payable.

The Government of Canada has been clear that it should not be free to pollute in Canada. However, I want to strongly emphasize that the government is not keeping any direct proceeds from the federal carbon pollution pricing system. I know that all members are concerned about the state of small and medium-sized businesses in Canada right now. To truly support small businesses during this unprecedented time, I urge all members to come together to support the passage of Bill C-14 so that we can continue to provide targeted and meaningful investments to help Canadians who need them the most.