Raj Grewal

[The Budget, March 23rd, 2017]

Mr. Speaker, let us look at the facts. Our government is not going to take any lessons from the Conservative Party of Canada on the economy. The Conservative Party had 10 years in government, and what did it have? Let us look at the facts. It had the lowest job growth under any prime minister who served for 10 years. It had the lowest economic growth of any prime minister who served for 10 years.

Let us see what our government has done. We have created 220,000 jobs, mostly full-time jobs, in the last six months. We have decreased unemployment from 7.1% to 6.6%, and it has continued to decline. Our investments are working. We reduced taxes on the middle class. We increased taxes on the wealthiest one per cent of Canadians.

I encourage the member opposite and the entire party to look at the facts and to go and knock on doors, because our investments in the middle class are working and are making the lives of Canadians better.

[The Budget, March 23rd, 2017]

Mr. Speaker, it is an honour to rise in this House to speak to the government's second budget, entitled “Building the Middle Class”.

My constituents elected me to serve as part of a government that will help the middle class and those working hard to join it. To be able to represent these priorities of the residents of Brampton East in this House is a privilege.

I am lucky to be a member of the Standing Committee on Finance, which has kept me quite busy thus far. Recently the finance committee concluded a study on tax fairness for all Canadians. It studied tax evasion and tax avoidance. The committee's report contains 14 recommendation for the government on topics such as conducting a review of the voluntary disclosures program and requiring all tax advisers to register their tax products with the CRA.

I am proud to share that in response to the finance committee's recommendations, the government affirmed its support for all 14 recommendations. Additionally, the government shared the work that has already been done or is currently being undertaken to ensure all Canadians pay their fair share of taxes to our great nation.

Paying our fair share of taxes is an essential part of financing measures that enhance all Canadians' quality of life. When certain individuals and companies find ways to cheat the system, it is the middle class that usually picks up the tab. That is totally unacceptable and counterproductive to our country's goals. That is why making the tax system more fair is an ongoing priority of our government.

In support of this objective, budget 2017 proposes to invest additional resources to combat tax evasion and aggressive tax avoidance. Budget 2017 also proposes legislative changes to the tax rules. These changes would close tax loopholes that result in unfair tax advantages for some at the expense of others, invest additional resources to crack down on tax evasion and combat tax avoidance, make existing tax relief for individuals and families more effective and acceptable, eliminate ineffective and inefficient tax measures, and provide greater consistency in the operation of tax rules.

Going forward, we will continue to eliminate poorly targeted and inefficient tax measures and make our tax system more fair and efficient. The government is committed to taking these steps because we know and understand that fairness is essential to ensuring Canadians have confidence in their tax system.

Last year in budget 2016, our government committed to undertake a wide-ranging review of increasingly complex tax expenditures that now exist. This review of federal tax expenditures has highlighted a number of issues regarding tax planning strategies using private corporations, which can result in high-income individuals getting unfair tax advantages. A variety of tax reduction strategies are available to these individuals that are not available to other Canadians. An example of such a strategy is the use of private corporations to reduce taxes through sprinkling income to family members.

Budget 2017 sends a strong signal that the government is taking action to ensure that high-income individuals cannot use strategies involving private corporations to gain unfair tax advantages. The government will release a paper in the coming months setting out the nature of these issues as well as proposed policy responses. In addressing these issues, the government will ensure that corporations that contribute to job creation and economic growth by actively investing in their businesses continue to benefit from a highly competitive tax regime.

A fair tax system requires constant attention. Ongoing legislative adjustments are needed to ensure that rules are functioning as intended, and they do not result in some taxpayers paying less than their fair share, for example, through complicated tax planning arrangements.

To ensure the tax system operates as fairly and effectively as possible moving forward, the government will continue to study, identify, and address tax loopholes and tax planning schemes. Tax evasion and avoidance is unfair to the vast majority of Canadian individuals and businesses that play by the rules.

The measures in budget 2017 will build on previous investments to support the Canada Revenue Agency in its continued efforts to crack down on tax evasion and tax avoidance. To do this, the CRA is increasing its verification activities, hiring additional auditors and specialists with a focus on the underground economy, developing robust business intelligence infrastructure and risk assessment systems, and improving the quality of investigative work that targets criminal tax evaders.

Budget 2017 will invest an additional $523 million over five years to support these efforts. As CRA has a proven track record of meeting expectations from targeted tax compliance, budget 2017 accounts for the expected additional revenue of $2.5 billion over five years from these measures that crack down on tax evasion and combat tax avoidance.

We know that in a globalized world it is not enough to simply concentrate our efforts here at home. We need to have an international focus as well. To this end, Canada is part of a coordinated international effort to address what is known as base erosion and profit sharing or BEPS. BEPS refers to tax planning arrangements used by multinational enterprises to unfairly minimize their taxes. Canada has implemented, or is in the process of implementing, agreed international standards under the BEPS project.

This includes recently enacted legislation which requires large multinational enterprises to provide information about the international distribution of their activities. This information will enable tax authorities to better assess tax avoidance risks. We will continue to work with our international partners to ensure a coherent and consistent response in fighting tax avoidance through BEPS.

Over the past year, we have worked to build a fairer tax system that benefits the middle class. Our review of tax measures identified opportunities that make existing tax measures more effective, equitable, and accessible to all Canadians. Specifically, budget 2017 proposes to simplify and improve existing tax measures for caregivers, persons with disabilities, and students.

Right now, Canadians who are caring for loved ones face a caregiver credit system that is complex and difficult for families to navigate, so we have simplified it by introducing the Canada caregiver credit. This new non-refundable credit will provide greater support to those who need it the most and will apply to caregivers whether or not they live with the family member who is receiving the care. This measure will provide $310 million in additional tax relief over the 2016-17 to 2021-22 period and will support families struggling to take care of loved ones.

Canada is a country founded on the belief that with hard work comes success and that with success comes a responsibility to help others. Canadians share the understanding that success as a nation is only as great as the success of our most vulnerable. They know that challenging the barriers that persist is a necessary part of moving our country forward.

Budget 2017 takes the next step in the government's long-term economic plan, understanding that in the face of unprecedented change, a confident Canadian middle class will always be the beating heart of our country and the engine of our economy.

[Business of Supply, March 21st, 2017]

Mr. Speaker, my colleague across the aisle started his question by talking about tax fairness. Our government is extremely committed to tax fairness. The finance committee, of which I am a proud member, did a study on tax fairness and made 14 recommendations that were tabled in the House. I am pleased to announce that the government accepted all 14 recommendations to ensure that Canadians pay their fair share of taxes.

When it comes to the Canada infrastructure bank, it will make sure that we make smart and wise decisions to ensure that not only are we leveraging private investment to build public transit and infrastructure projects across this country but also that these projects are creating good, well-paying middle-class jobs. That is a commitment our government has had from day one.

The member opposite and the entire NDP caucus keep talking about working-class Canadians. They keep using the rhetoric that they used in their campaign, but when the time came to vote in favour of a middle-class tax cut, they voted against it. I would like to ask them a question. How can they tell their constituents, when we on this side are helping the middle class by increasing support for families, that they voted against it? They should be ashamed of themselves.

[Business of Supply, March 21st, 2017]

Mr. Speaker, I want to make it clear that my reference to the LRT was used as an example of something that was funded through public and private infrastructure. I did not speak about the fact that it was ready to go completed. Attention to detail is something members opposite should pay particular attention to.

I also have a soft spot in my heart when it comes to Alberta, because I was born in Alberta. I have a lot of pride in that province.

I will say that we will take no lessons from the party opposite on job creation or economic growth. For 10 years, it had the worst record when it came to job creation and economic growth. It had low economic growth for 10 years. What has our government been doing? In the last six months, we have created 220,000 jobs. We have decreased unemployment. We have decreased taxes for the middle class, a middle-class tax cut the party opposite voted against. Why? It is because it wanted to reduce taxes for rich Canadians. Our government made a commitment to raise taxes on the wealthiest 1%. That is exactly what we have done. That is exactly what we are going to do in tomorrow's budget. We are going to keep fighting for the middle class. I encourage my colleagues on the other side of this House to support us.

[Business of Supply, March 21st, 2017]

Mr. Speaker, I will be splitting my time with the member for Rivière-des-Mille-Îles.

It is always a pleasure to rise in this House regarding the Government of Canada's ambitious plan to make smart investments that will create jobs, grow our economy, and provide more opportunities for the middle class and those working hard to join it.

Over the past year, the government has put in place a plan to grow the economy in a way that works for the middle class and those working hard to join it. Our government has raised taxes on the wealthiest 1% so that we could reduce taxes for the middle class. We have introduced a new Canada child benefit that gives more money to nine out of 10 Canadian families and lifts 300,000 children out of poverty. We have strengthened the Canada pension plan to help Canadians have a more secure and safe and dignified retirement, which they deserve.

We are supporting strong communities by using innovative solutions to help meet pressing infrastructure needs. We are investing in infrastructure that creates good, well-paying jobs that help the middle class grow and prosper.

By making it easier to move people and products, well-planned infrastructure can deliver sustained economic growth for years to come. We put in place an ambitious long-term infrastructure plan that will invest more than $180 billion in federal funding over 12 years. This plan focuses on five key areas: public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities.

Under the first phase of this plan, budget 2016 invested more than $10 billion toward public transit and social and green infrastructure projects. We wasted no time in rolling it out and have made considerable progress. This includes investments toward nearly 550 public transit projects that will make it easier for Canadians to get to work on time and will ensure that public transportation is there when Canadians need it the most; more than 700 projects under the clean water and wastewater fund that will improve access to clean drinking water and will reduce pollution in our lakes and rivers; and 1,000 projects to retrofit and renovate social housing to repair more than 48,000 social housing units. These projects are already making a difference in communities across our country.

To maximize the benefits of infrastructure investments and to ensure that more money flows into infrastructure, the Government of Canada is committed to finding new and innovative ways to fund infrastructure and mobilize private capital. As part of our fall economic statement, we announced the creation of a Canada infrastructure bank. We have consulted broadly with experts on the creation of the bank and will continue to work with our partners to ensure that the bank meets their needs and the needs of all Canadians.

Canada has a very mature market when it comes to infrastructure projects, and partnerships between the public and private sectors have always been a key to the success of infrastructure. Many key pieces of infrastructure, including the Edmonton light rail transit system, were financed in part by the private sector.

In terms of moving the yardstick even further, we believe that there is an opportunity for the federal government to crowd in private sector investment in infrastructure through loans, loan guarantees, and equity participation. The bank will do just that.

The bank will also create more options and opportunities for provinces, territories, and municipalities across the country to undertake transformative infrastructure projects. The bank will invest $35 billion in new projects across Canada, projects such as major public transit in our largest cities, energy transmission corridors, major corridor projects, and more. Of the $35 billion planned to capitalize the bank, $15 billion will be sourced from the announced funding for public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities. This $15 billion is less than 8% of the total commitment of infrastructure funds under our long-term plan.

In addition, $20 billion in capital will be available to the Canada infrastructure bank for investments that will result in the bank holding assets in the form of equity or debt. This $20 billion will therefore not result in a fiscal impact on the government.

The bank will serve as a single federal government point of contact for the private sector and will employ private sector experts to enable the government to invest effectively with private capital. The bank's funds will be over and above the commitment this government has made to double infrastructure funding. Most important, it will offer our funding partners a new way to help meet pressing infrastructure needs. By using private capital to build those new projects, public money will be freed up to build more public infrastructure.

The bank will be a centre of excellence in infrastructure investment by the private sector. It will provide advice to project proponents to allow for better planning and procurement decisions. The vast majority of the infrastructure funding will still be delivered through traditional financial contributions through bilateral agreements or national programs. As such, many infrastructure projects will not need the bank.

I want to be clear. We will not impose the bank on any of our partners, but we will work with willing partners who think this can offer them additional value. The bank is just another tool in our tool kit that our partners can use to invest in the infrastructure they need.

The Government of Canada remains committed to building a fairer, more inclusive country that reflects the priorities of Canadians. We want to put an ambitious plan in place to grow the economy and to build healthier and more livable communities. We are already taking unprecedented action to invest in Canada, our communities, and Canadians. With these smart investments and a commitment to fairness, the government will ensure that Canada's best days are ahead.

[National Security and Intelligence Committee of Parliamentarians Act, March 20th, 2017]

Mr. Speaker, the bill clearly states that the minister will have the prerogative to ensure that national security is still maintained, which is an important piece of the bill. It also states that after the national security risk has passed, the committee has the opportunity to revisit the minister's decision.

Again, Bill C-22 and this new committee will have the balance that we are trying to achieve, which is ensuring we are keeping Canadians safe while at the same time protecting the rights and freedoms we cherish so much.

[National Security and Intelligence Committee of Parliamentarians Act, March 20th, 2017]

Mr. Speaker, Bill C-22 and the government's commitment to setting up this committee, which is independent of government, is extremely important, especially if we look at the current security landscape in the world we live in today.

Canadians expect their government to ensure they are protected. The first job of any government is to protect its citizens. The committee will be able to do that. It will ensure that Canadians are safe and secure, while at the same time protecting their rights and freedoms.

I look forward to the committee being set up. I look forward to parliamentarians of all political parties serving on it and ensuring they carry out their mandate to protect Canadians.

[National Security and Intelligence Committee of Parliamentarians Act, March 20th, 2017]

Mr. Speaker, I want to thank the hon. member for making the analogy to a jar of olives. As I know, he is an afficionado of olives. On our recent trip to Israel, we learned a lot about them.

However, getting to the member's question, I want to reiterate that our government is making an historic commitment to Canadians to fulfill an election promise. However, it is not just our commitment. Other governments have tried to set up this committee, which we have needed for quite some time now, to ensure there is independent oversight over our security and intelligence. Just like our allies in the Five Eyes, every other country already has this committee. We are setting one up to ensure we protect Canadians. At the same time, we are ensuring that our rights and freedoms, which as Canadians we cherish so much, are protected.

I truly believe in Bill C-22, and I encourage the member opposite to support it.

[National Security and Intelligence Committee of Parliamentarians Act, March 20th, 2017]

Mr. Speaker, it is an honour to rise today in support of Bill C-22, an act to establish a national security and intelligence committee of parliamentarians.

After second reading consideration and committee scrutiny, we now have the opportunity to review the bill at report stage. The robust parliamentarian process has served us well. The bill has been carefully studied by members on all sides of the House. Advice has been heard from expert witnesses and the Standing Committee on Public Safety and National Security has proposed amendments.

As the legislation stands today, it will move our country toward a more accountable and effective national security system. As many have said today and prior to today, the legislation is long overdue. We have heard stakeholders call it “crucial” and affirm that it will establish a committee in Canada that is stronger than its international counterparts. It will fill a significant gap that has existed in Canada for far too long. It will enable us to achieve our twin objectives of ensuring that our national security agencies are working effectively to keep Canadians safe and that the rights and freedoms of Canadians are protected.

Creating a new national security and intelligence committee of parliamentarians honours a major commitment of the government to Canadians. The committee will be an enormously important addition to our parliamentary landscape. It will have: extraordinary access to classified information in order to closely examine intelligence and security operations; enhanced scrutiny of national security and intelligence activities; a broader mandate than counterparts in other modern democracies; the ability to set its own agenda fully independent of government; the responsibility to report annually to Canadians through Parliament; and the power to examine activities government-wide, including ongoing operations.

As the legislation stands now, the committee will meet the dual objectives we set long ago, which is to ensure our national security apparatus is working to keep Canadians safe and secure, while protecting the rights and freedoms of Canadians.

When the bill was first introduced, it proposed a stronger committee than those that existed with many of our international allies. With amendments, the scope, authorities, and access we are proposing for the committee will be broadened even further. The government has indicated that it will accept most of these amendments.

With respect to scope, for example, we agreed with the committee that the committee must be empowered to review national security and intelligence operations. As amended, that will include the operation of crown corporations. Further, as amended, if the minister determines that the examination will be against national security, his or her power to delay it will be limited to the period of time during which the operation is under way. Afterward, the committee can review the operation.

Another important amendment is whistle-blower protection that will require the committee to inform a minister and the Attorney General about any national security or intelligence activity undertaken by a department that may not comply with the law. Like my colleagues, I was pleased that this amendment was widely endorsed. I also agree that the chair of the committee should be given a vote only in the case of a tie. I also agree with many of the changes regarding access to information exemptions for the bill initially proposed.

With the recent amendments, for example, the committee will now be able to receive information about ongoing defence intelligence activities that support military operations. It will also have access to relevant information collected by the Financial Transactions and Reports Analysis Centre of Canada and to privileged information under the Investment Canada Act.

The government has also agreed to amend the legislation so that reasons must be given for any redaction. Indeed, the government has been open to reasonable amendments throughout the parliamentary process.

We have not only conducted a careful examination of this crucial legislation, but we have also benefited from many years of consideration in creating this committee and from long collaboration with our international partners. Every other member of the Five Eyes alliance, including Australia, New Zealand, the United Kingdom, and the United States, has a legislative body with access to classified information to oversee security and intelligence matters.

Canada has tried to create a committee for over a decade now. It is time we give Canadians and parliamentarians the mandate to review these activities that we all want and need. Today, we are all taking one step closer to bringing this important new body into existence. We are closer to a system in which parliamentarians are better able to hold the government to account. We are closer to ensuring that concrete actions are taken when deficiencies and problems with our security framework and operations are identified.

Having learned from some of the best practices of our allies, we are closer to a truly developing a Canadian approach to national security accountability. This is a significant step forward for Canada. The legislation before us is as bold and progressive as it is thoughtful and balanced.

I am very proud to be part of the legislature that will, hopefully, at long last, put this critical accountability mechanism in place. I thank all members and parties for their support, advice, scrutiny, and debate in creating a better bill. I encourage all colleagues to support the passage of this important legislation.

[Business of Supply, March 7th, 2017]

Madam Speaker, I thank my colleague for his passionate speech, but I have a simple question for him.

We were elected on a platform to help the middle class, and we committed to raising taxes on the wealthiest 1%. New Democrats, time and time again, speak about helping Canadians. I ask the hon. member one simple question. Why would New Democrats vote against raising taxes on the wealthiest 1% and reducing taxes for nine million Canadians who had a tax cut because of our government? That was the first piece of legislation we passed. Why do you not answer that question? Why do you not vote in favour of raising taxes on the richest Canadians and cutting taxes for the middle class?