Francis Drouin

[Budget Implementation Act, 2017, No. 2, November 6th, 2017]

Mr. Speaker, I would put it to my colleague that we gave power back to the members of Parliament. In his province of Quebec, it is the role of Canada Economic Development for Quebec Regions, and in mine, FedDev is still the one investing. No one has lost their voice. In fact, I made several announcements aimed at helping several businesses in my province. We do not need a minister. All members have a voice in cabinet. They have only to speak to the Minister of Innovation, Science and Economic Development. I am certain that he would be most attentive to Quebec's concerns.

[Budget Implementation Act, 2017, No. 2, November 6th, 2017]

Mr. Speaker, I am happy to rise in the House to discuss Bill C-63, which arises from the budget, of course. On March 22 the Minister of Finance introduced his second budget, which basically seeks to create growth for the middle class and those who work hard to join it.

The idea is very simple: when we lend a helping hand to our fellow citizens in need, the whole society benefits. Lowering the income tax rate for the middle class was the first thing we did when we came to Ottawa. That was a tax cut for 9 million Canadians.

The official opposition party, who supposedly is the champion of taxpayers, voted against that initiative. Today we can perhaps see why: the Conservatives voted against that initiative possibly because we also raised the income tax rate on the wealthy.

The second measure we put in place to ensure more inclusive growth in Canada was the Canada child benefit. Again, the principle is very simple: those who need it more will get more help, and those who need it less will get less help. The previous approach from the Conservatives was to send cheques to millionaires. No matter one's revenue, everyone got the same cheque. To add insult to injury, they made it taxable. In Conservative la-la land, the principle of equity simply does not exist.

Under our plan, almost 18,000 children benefited from the Canada child benefit in Glengarry—Prescott—Russell, which is my riding. Families received an average payment of $510, which is non-taxable. The Canada child benefit directly impacts families and local businesses in Glengarry—Prescott—Russell.

The official opposition likes to talk the talk on defending the taxpayer, but when it comes to walking the walk, well, they voted against our plan and in favour of a plan that would tax families, which they still defend to this day. I would like to see them quote that particular impact in the Fraser report.

The question is on whether this plan is working. The answer is yes. The unemployment rate in eastern Ontario in September 2015 was 8.7%. Today, it is almost 2% lower, at 6.8%. The economy in Canada has added more than 500,000 jobs in less than two years. We have the lowest unemployment rate since 2008, and our economy is growing faster than any of the G7 countries.

This year, GDP growth will be 3.7%. This better-than-expected rate of growth means that the government will be able to index the Canada child benefit two years ahead of our original plan. That will mean an increase of $560 a year for a mother with two children who earns $35,000. We know that this will directly contribute to our country's economic growth. We are not the ones saying that. It is the Governor of the Bank of Canada.

What is more, we are enhancing the working income tax benefit by $500 million as of 2019. That is another measure that will have a significant impact on workers in my region. We are able to implement these measures because of our strong economic growth, and we are doing so while ensuring that the debt-to-GDP ratio continues to drop.

I would like to take a few moments to talk about the reason why we decided to carefully invest rather than make cuts. We cannot talk about deficits without mentioning the infrastructure deficit in Canada. None of the mayors in my riding are asking the government to cut infrastructure programs. This year, for the first time ever, the community of Maxville will finally have access to water thanks to a federal investment of $15 million. That is going to make a real difference in the lives of Maxville residents.

What is more, there has been talk about expanding Highway 17/174 for 40 years. With the announcement of light rail, $50 million will be allocated to build the interchange at the intersection of Highway 174 and Trim Road. This will have a direct impact on people who commute to Ottawa and on those who will be travelling to Trim station to take the train. More work remains to be done, but this is a step in the right direction.

I could name other infrastructure projects in Glengarry—Prescott—Russell, but the point is that there is tremendous need for our communities. As I have said before, not a single mayor is asking me to cut funding towards infrastructure.

What is the legacy we want to leave to our children and our children's children? We could balance the budget at all cost and kick the can down the road for major repairs to infrastructure, or we could own up to our responsibilities and reduce the infrastructure deficit so that our children and our children's children can benefit down the road. I choose the latter approach, because it is the responsible approach. If we have a leaky roof, we cannot simply balance the family budget in the hopes that the leaky roof will go away. We must take responsibility.

We are doing this because although the Conservatives supposedly balanced the budget during their 10 years in office, they did so by ducking their responsibilities towards our municipalities. “Too bad, so sad” was their refrain as they told our municipalities that their citizens would have to wait for clean drinking water and that fixed-income seniors, the most vulnerable members of our society, would have to wait for social housing. However, the fact that we have an aging population did not come out of nowhere. We need to make sure that the decisions we make today have an impact on tomorrow.

That is why I am proud that we are investing $11.9 billion in social housing. These investments will help seniors, single mothers, and women in domestic violence situations. We know that one of the barriers women face in trying to leave an abusive relationship is a lack of housing. Incidentally, I would like to thank the Centre Novas, which continues to advocate for the most vulnerable women in Glengarry—Prescott—Russell.

This goal is within reach, because we have chosen the path of investment and growth. Our track record on growth is good, the best in the G7, but we need to keep the momentum going.

The more our companies prosper, the better it is for our economy. In order to spur that growth, we are investing $400 million over three years in a venture capital catalyst initiative that will help young businesses scale up to the next level. With leveraged funds from the private sector, we could be looking at a $1.5 billion injection into our economy.

We will also honour our promise to our small businesses to lower taxes to 9%, down from 10.5%, by 2019. This will leave more money in the pockets of our entrepreneurs, so they can in turn invest it in their businesses.

In closing, Bill C-63 to implement certain provisions of the budget supports the growth of the middle class and helps those working hard to join it. The tax cut for the middle class, the Canada child benefit, the improvement of the Canada pension plan, the investments in our sewer systems and social housing, the tax cut for small and medium-sized businesses, the working income tax benefit, the improvement of the guaranteed income supplement—all of these measures help the middle class and those working hard to join it. Strengthening this class will benefit society as a whole, and I am proud to support this bill.

[National Francophone Immigration Week, October 30th, 2017]

Mr. Speaker, this week we are celebrating the fifth annual National Francophone Immigration Week. Immigration is crucial to the vitality of francophone communities like mine. I want to acknowledge the exceptional work of the Assemblée de la francophonie de l'Ontario, the Association canadienne française de l'Alberta, and the Réseau de soutien à l'immigration francophone de l'Est de l'Ontario. The work they do is essential.

I am proud to be part of a government that takes this issue seriously. Our government is committed to supporting and enhancing the vitality of francophone minority communities, notably by increasing the number of francophone immigrants in these communities. We have also renewed the mobilité francophone program to encourage highly qualified francophone workers to come to our communities.

We will continue to rely on organizations such as the Assemblée de la francophonie de l'Ontario for practical solutions for achieving our objective.

To all francophone newcomers, welcome home.

[Business of Supply, October 5th, 2017]

Mr. Speaker, I would like to thank my colleague from Thérèse-De Blainville for his excellent speech.

In politics, we must walk the talk. In the last election, the NDP talked about investing in health and creating a national pharmacare program, and also balancing the budget. That is all well and good. However, I went outside and money is still not growing on trees.

I would like to ask my colleague what our government has done to date in order to reduce the cost of patients' medications.

[Business of Supply, October 3rd, 2017]

Mr. Speaker, I have extended the consultation period. I have reached out to local chapters of the Ontario Federation of Agriculture. I have reached out to dairy farmers. I have held sessions with chambers of commerce. I have called back everyone who has called me at the office. I have listened to their concerns and I have voiced them to the Minister of Finance. It is a simple process. Anyone can do it in 75 days.

[Business of Supply, October 3rd, 2017]

Mr. Speaker, I thank my colleague for the question. I personally made a number of calls, I spoke with several farmers, and I shared their concerns with the Minister of Finance.

Endlessly extending the consultation period would create uncertainty in the market. The Minister of Finance was clear when he said that it was a consultation period and that this was not a final bill. Once the final bill is introduced in the House, that will give our farmers more certainty.

Although the consultation period ended on October 2, I had plenty of time to share with the Minister of Finance all the concerns and proposals I heard from the farmers I talked to.

[Business of Supply, October 3rd, 2017]

Mr. Speaker, if those on the other side would only listen, some people right now are waiting on our government to come out with our proposed tax changes. Waiting will not help them. They need assurance and they need certainty. That is why I do not support the motion of the Conservative Party.

[Business of Supply, October 3rd, 2017]

Mr. Speaker, if my hon. colleague had listened to the first part of the comment, I said that extending the consultation period to January 31 would only prolong uncertainty in the market. The last thing entrepreneurs need is uncertainty in the market. There are people right now—

[Business of Supply, October 3rd, 2017]

Mr. Speaker, I will be sharing my time with the hon. member for Don Valley East.

I want to begin by saying that I fully support the business owners and farmers of Glengarry—Prescott—Russell. I grew up with a father who sacrificed hours and hours working on his business when I was young. He had two restaurants and was involved in municipal politics. Spending time with him meant going to the restaurant early in the morning or going to the office. I personally experienced the family sacrifices a father or mother must make for their business. That is why I wanted to speak to the motion we are debating today.

Today, I will explain what we are trying to accomplish and why I will not support the motion.

We know farmers are key to our economy, which is why we want to make sure we get this right, particularly when it comes to the new generation of farmers and agricultural entrepreneurs.

The government will not change benefits in the tax system that are intended to help family businesses grow, create jobs, and innovate. Farmers do so much for Canada. They deliver high-quality food to Canadians and our international customers, provide jobs in rural communities, and boost Canada's economy, while working to safeguard our natural resources.

As I am sure my honourable colleagues know, farming is a 24-hour, 7-day a week business. It is a physically demanding, time-consuming job. It is commendable.

Supporting farmers is a priority for the government and for me, personally. We know that one of the greatest returns on investments we can make is helping the next generation enter agriculture as their career of choice.

As the industry grows, so does the need for additional talented, energetic and well-educated young people. The government is committed to helping this new generation obtain the skills and support it needs to help young people move into good-paying jobs, including many opportunities in Canada's agriculture sector.

A recent informal survey by Farm Credit Canada of 33 post-secondary institutions offering agriculture and ag-related programs confirms agriculture has become a popular career option, especially over the past five years as the industry has grown.

According to Statistics Canada, in 2014, over 12,000 students across Canada were studying in agriculture or an ag-related program. This is great news. A University of Guelph study found that there are 4 job openings for every graduate of the Ontario Agricultural College. The gap has risen from 3 jobs for every graduate in 2012, despite a 30% increase in enrolment over the same period.

Sixty-seven per cent of agriculture companies and 51% of food processors or retailers said they had trouble finding qualified employees, according to the study. The University of Manitoba's School of Agriculture just graduated its largest class in more than 30 years. Similarly, the University of Guelph’s Alfred campus offers a wide range of courses aimed at training the next generation of farmers.

According to Statistics Canada’s Census of agriculture, for the first time since 1991, the number of farmers under the age of 35 increased. Agriculture has shaped our nation and contributes to the health of both Canadians and Canada's economy.

We are talking about a powerful engine of jobs, growth and trade in this country. Today, it is a $100-billion industry, employing more Canadians than any other industry in Canada.

Thanks to our innovative farmers and their commitment to delivering the highest standards of safety and quality, Canadian foods and beverages can be found on store shelves around the globe. Customers in the world’s fastest-growing market, China, can now order Canadian food products with the click of a mouse.

As we celebrate the 150th anniversary of Confederation, it is exciting to reflect on how far our agricultural industry has come. Farmers can now link their tractors to satellites in the sky, and we now have robots to milk cows. This would have seemed like science fiction in 1867.

The future is bright for this dynamic industry, with a growing global middle class looking for products our world-class farmers and food processors can deliver. To continue to succeed, however, the sector depends on continuing to attract young farmers. There are financial hurdles to overcome for many young people to take over the family farm or start their own farm business from scratch.

That is why the government, through Farm Credit Canada, has increased its support for young farmers by doubling the amount of credit available to $1 million from $500,000. As well, FCC has lowered the possible minimum down payment to 20% of the value of the loan which supports the purchase or improvement of farmland and buildings. These are key measures which will help beginning farmers overcome the considerable capital outlay required to start out in the business.

Young farmers also play a key role in the Canadian Agricultural Partnership, a federal-provincial-territorial agreement to invest $3 billion to advance our great industry over the next five years. The partnership will focus on priorities that are critical to unleashing the sector’s growth potential, including research, innovation, domestic competitiveness and trade.

The partnership will be a solid foundation for the future of our great agricultural sector. To grow our agrifood trade even further, the budget targets $75 billion a year in agricultural exports by 2025.

As the House can see, the government fully understands that it is in Canada’s best interest to encourage young people to choose a future in agriculture. The tax changes we are proposing will not raise tax rates on farm businesses. They will not affect farmers’ ability to incorporate, make investments or pay family members who work in the farm business.

Our priority is to ensure tax fairness, while avoiding unintended consequences for our hard-working farmers. This is the purpose of the consultation. I realize that there may need to amend the bill once it is introduced, but that is what consultations are for. We provide information, knowing that comments and suggestions will follow. It is not a done deal, as some people claim.

The Minister of Finance indicated that the our government’s goal was not to make it more difficult to transfer family farms. On the contrary, we want to make it easier.

I had the opportunity to speak to many accountants and tax lawyers since the beginning of the consultations. I want to thank each and every one of them who reached out to me. They agree with the government that while legal, converting dividends into capital gains is an aggressive tax strategy. Most of them do not advise their clients to do so. They also agreed that a child who was two days old should not be able to use the lifetime capital gain exemption. Again, the vast majority of entrepreneurs do not do this.

I believe the last point is important for a young generation. Under the current rules, children could use the lifetime capital exemption, which is up to $850,000, without their consent. Let us say they start a business and grow it into a success. By the time they want to retire and sell the business, if the amount of the lifetime capital exemption was all used when they were two days old, they will have to pay the full taxes on capital gains when they retire. That is wrong, and ut is not fair for a young generation.

Some accountants and tax specialists have also raised concerns, and I recognize that the proposal contains certain unwelcome measures. I also know that the Minister of Finance has been listening to and will continue to listen to people’s concerns.

What farmers and entrepreneurs need is certainty in the marketplace. Extending the consultation period would cause more delays and more uncertainty in the market. Realistically, if the Conservatives are going to blast us for launching these consultations during the summer, I do not see how extending them during the Christmas period is going to help.

Lastly, the government’s goal is to make sure the next generation of farmers has the tools, resources and support it needs to succeed.

[Business of Supply, October 3rd, 2017]

Mr. Speaker, I listened carefully to my colleague’s speech, but I heard no proposal. I imagine the Conservatives see life in black and white; there is no grey area for them.

Does the member think it is fair that a two-day old child currently has a lifetime capital gains exemption? Thus, if that child wants to start a business at 18 years of age and retire when he is old, he is not entitled to his capital gains exemption. Is that fair?