Bill C-26 (Historical)

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

Part 1 of this enactment amends the Canada Pension Plan to, among other things,
(a) increase the amount of the retirement pension, as well as the survivor’s and disability pensions and the post-retirement benefit, subject to the amount of additional contributions made and the number of years over which those contributions are made;
(b) increase the maximum level of pensionable earnings by 14% as of 2025;
(c) provide for the making of additional contributions, beginning in 2019;
(d) provide for the creation of the Additional Canada Pension Plan Account and the accounting of funds in relation to it; and
(e) include the additional contributions and increased benefits in the financial review provisions of the Act and authorize the Governor in Council to make regulations in relation to those provisions.
This Part also amends the Canada Pension Plan Investment Board Act to provide for the transfer of funds between the Investment Board and the Additional Canada Pension Plan Account and to provide for the preparation of financial statements in relation to amounts managed by the Investment Board in relation to the additional contributions and increased benefits.
Part 2 makes related amendments to the Income Tax Act to increase the Working Income Tax Benefit and to provide a deduction for additional employee contributions.

Act Respecting the Federal Ombudsman for Victims of Criminal Acts

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, I am pleased to rise in the House today in support of the hon. member for Beauport—Côte-de-Beaupré—Île d'Orléans—Charlevoix and her private member's Bill C-343, an act to establish the office of the federal ombudsman for victims of criminal acts and to amend certain acts.

I am confident and hopeful all parties represented in the chamber will join me in resounding support for this bill, because it would ensure the protection, information assistance, and liaison services would remain in place for victims, much as they currently are for criminals from the office of the ombudsman for federal offenders. Having an arm's-length regulator in place for the victims of crime is the right thing to do, and I will speak specifically about the services offered by the victims ombudsman in addition to laying out the case to ensure that equivalent supports and services are accessible to victims of crime, as they currently are to offenders.

The mandate of the victims ombudsman would be to ensure that victims are informed, considered, protected, and supported. The service would offer victims of crime the opportunity to learn about their individual rights under our federal laws, learn what services are available to them, and if necessary, lodge a complaint about any federal agency in its dealings with victims of crime. In addition to this, the federal ombudsman for victims of crime would ensure that policies are made to reflect victims' needs and concerns. By being in communication with victims, the ombudsman would be able to identify the areas that may be of concern to victims or that may negatively impact victims, and when appropriate to do so, the office of the ombudsman for victims of criminal acts may make recommendations to the government.

The mandate relates exclusively to matters of federal jurisdiction and enables the ombudsman to specifically promote access by victims to existing federal programs and services for victims; address complaints of victims about compliance with the provisions of the Corrections and Conditional Release Act that apply to victims of crimes committed by offenders under federal jurisdiction; promote awareness of the needs and concerns of victims and the applicable laws that benefit victims of crime, including to promote the principles as set out in the Canadian Statement of Basic Principles of Justice for Victims of Crime with respect to matters of federal jurisdiction; and to identify and review emerging and systemic issues, including those related to the services by the Department of Justice or the Department of Public Safety and Emergency Preparedness that could negatively impact victims of crime.

I am proud of the Harper government's initiative to create the Office of the Federal Ombudsman for Victims of Crime as an independent resource for victims of crime. I was there in 2007 when the government launched this. I was very pleased with the support of people like Senator Boisvenu, who was not a senator at the time but was very interested and involved with victims of crime. I am sure that, regardless of what side of the aisle one sits on, all members would agree that this office has served an important role for all victims of crime.

At the present time, the ombudsman operates, as we heard, within the Department of Justice and therefore does not function as a completely autonomous body. This could prevent the ombudsman from conducting a formal investigation within the Department of Justice itself. Another example of this would be in a federal prosecution where a victim of crime felt that his or her voice was not afforded the adequate opportunity to be heard. This could ultimately undermine the confidence of victims towards the minister of justice and the Department of Justice. Other examples could be when a victim has not been invited by the Parole Board or the prison system to a hearing on the offender's release, when the federal crown and defence make a plea bargain without consulting the victim, or when a victim is refused the opportunity to make a statement before a sentence is given in court.

This illustrates the importance of the ombudsman to become a parliamentary officer answerable to the Parliament of Canada, because an ombudsman is a person with authority to conduct thorough, impartial, independent investigations and make recommendations to government organizations with respect to the difficulties and problems experienced in the case of victims.

Normally, an ombudsman will investigate in response to citizen complaints, but he or she can also investigate on his or her own initiative. In most cases, an ombudsman is appointed by Parliament and can issue reports and recommendations to government officials and ultimately to Parliament itself.

The same protections are offered to criminals through the correctional investigator as the ombudsman for federal offenders. If criminals are protected by their own autonomous ombudsman, it is only fitting and reasonable that victims of crime should be afforded the same rights. By the same token, it is only equitable to ensure that the ombudsman for victims of crime is equivalent to that of the position of the correctional investigator for offenders. This is in line with the Canadian Victims Bill of Rights mandate: information, protection, participation, and restitution for victims. Victims must be strongly and independently represented. This is a fundamental right that criminals have had since 1971.

At present, the federal ombudsman for victims of crime must table its annual report to the Department of Justice, meaning that if a recommendation and/or criticism is mentioned in the report that is not favourable to the Department of Justice, the minister could remove it. Such a possibility is not acceptable. It could have the effect of challenging the faith that victims of crime should have in our overall justice system. The ability to monitor, to make recommendations or necessary criticism is imperative.

I would like to highlight some of the more high profile submissions and the importance of this work.

The ombudsman submitted to the pre-inquiry design process in order to facilitate a national design process for the current national inquiry on missing and murdered indigenous women. The ombudsman also made recommendations for Bill C-26, which sought to make a number of changes to the Criminal Code and other legislation to address some issues related to sexual offences against children, including creating a new national public database containing information on high risk child sex offenders. The ombudsman has also made valuable contributions to the Canadian Victims Bill of Rights. I remember how important this was to my colleague, Peter MacKay, and the leadership he showed on this. These are just to name a number of them.

Ultimately, the mandate of the federal ombudsman for victims of crime is to inform, consider, protect, and support victims. It is the the obligation of parliamentarians to ensure that Canadians who are victims of crime can continue rely on their elected members of Parliament to ensure that they are adequately informed, that their needs are taken into consideration, that they are fully protected as citizens of Canada, and that they are fully supported by the federal government by the respective departments they represent. The only way to ensure that Canadians are fully and impartially represented is to put the ombudsman for victims of crime at arm's length from the Department of Justice.

I respectfully ask my colleagues in the House do the right thing by all Canadians and support the hon member from Beauport—Côte-de-Beaupré—Île d'Orléans—Charlevoix's bill to ensure victims are effectively and independently represented. Together, we will ensure that victims of crime in Canada will continue to be informed, considered, protected, and supported.

Resuming debate

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, the debate concerning motion No. 14 is not about having a problem with working until midnight each evening—except, obviously, on topics raised by the opposition. I agree with what the Parliamentary Secretary to the Leader of the Government in the House of Commons said in the House yesterday, that most of us are already working every day on a similar schedule.

In my previous career, I was already used to long hours. When I ran a global business, my European colleagues began calling me at 4 a.m., and my days would often stretch until midnight. This was necessary so I could meet with my employees and people in the plants and businesses in the Pacific region I was responsible for.

As the head of a North American refining and petrochemical company, I realized that maintaining customer relations and meeting deadlines to submit applications made for very long days.

The Liberal government said it wanted to make Parliament more family friendly in order to encourage women to get into politics. I support encouraging more women to get into politics, but I do not believe that many women would choose to work until midnight each evening, away from their kids.

Now, why did this government introduce such a motion, when theoretically it should oppose it?

As I have said, I am not opposed to working long hours. I said earlier today, and will say it again, Einstein was quoted as saying that the definition of insanity was repeating the same action hoping for a different result. The government has not accomplished a lot in the way of legislation. If we think about the 19 bills that have passed versus 52 in the same time frame when the Conservatives were in power, really not much has been accomplished. There is no prioritization of what is coming forward.

I want to take a moment to talk about what has already passed because it shows something important.

So far in Parliament the transparency for first nations has been removed with Bill C-1. Bill C-2 gave back to the middle class $932 a year in taxes and then Bill C-26 increased their CPP payments by $1,100 a year, with no benefit. Bill C-10 gave Air Canada a deal to get maintenance jobs out of Canada and escape a lawsuit. Bill C-14, medically assisted dying, was passed without protecting the rights of conscience. Bill C-17 addressed environmental items for Yukon. Bill C-18 was environmental change for Rouge Park in Toronto. Bill C-30 was a CETA deal that now has to be renegotiated with Brexit happening. Bill C-31 was the trade deal with Ukraine. The rest were all maintenance budget items that needed to be done. That is all we have accomplished in 18 months of the Liberal government's agenda. Everything else is lost in process, being amended in the Senate, and not coming forward.

What is the government going to achieve by making us sit every night until midnight, which, as I said, I am fully willing to do? I really do not think it is getting anywhere. Why is it not getting anywhere? Because it does not listen to the opposition's points of view.

The job of the opposition is to bring reasoned and intelligent arguments on why a government proposal is not good for Canada and to make helpful suggestions about what would make it better.

When bills are sent to committee, the committee's job is to make helpful suggestions and amendments that would make them something all Canadians could embrace. That is really what is happening. The government is not accepting amendments, not listening when the opposition talks, and again and again, when things go to the Senate, the Senate comes up with the same amendments and spends more time studying them, doing exactly the same thing that committees of the House are supposed to do. That is one problem.

Another problem is that there has to be trust when parties work together.

I am going to compare the antics that I see happening here with what I see in the business world. In the business world, people work together. People have to be able to trust one another when they make deals. They have to be able to follow up on things as they said they would.

From what I have seen, the opposition House leaders are trying to work with the government House leader but she is not keeping up her end of what she has agreed to. Every day I watch her stand in the House and misrepresent to Canadians that she just has a discussion paper, when really a motion has been rammed through PROC. I have seen her avoid answering questions that she is accountable to answer.

I would suggest that there has been a huge erosion of trust in the government House leader and sometimes that cannot be fixed in order to restore the ability to work together. The government should really consider changing up that position and coming back to a place where we can work together and trust that agreements that are made, amendments that are suggested, and motions that are brought forward are as agreed. That is really important.

There is another point that I would like to make that has not been discussed much here. I have listened to the debate on Motion No. 14 and I have heard a lot about the blame game. I hear from the Liberals that when Stephen Harper's government was in place, it did this bad thing or that bad thing, or whatever. Honestly, two-thirds of the Parliament are new. Some of us were not here in the previous Parliament. We have an opportunity to do things differently now. If we think something was previously done wrong, we have the opportunity to do it differently in the future.

When items come up in the business climate, not everything needs the same amount of time to be talked about. I have sat in the House and heard Liberal members stand up and say they support such and such a bill and I have heard Conservative members and NDP members stand up and say they do too, and then we talk about it for days.

This is not the way we should be spending our time. If the government had not squandered all of the time in that way, we would have more time and we would not have to sit late. In the same way, there are things that need to be discussed longer that cannot be rammed through, things such as the budget bill that has been combined with the infrastructure bank. When comments come forward, the government needs to lead. It needs to separate those things out so that the things that can be quickly passed get passed on. When I say passed on, I am saying that if we all agree on a bill at first reading and we do not need to change anything, then the legislation should be sent right away to the Senate. Why are we spending time doing second and third reading and committee and everything else? We need to be able to update some of the processes here.

I am not about just criticizing without providing recommendations for how I think we could make this better. Here are my recommendations, which I think the government could use to change some of the things that it is doing and which would result in getting legislation passed through in a better way.

When it comes to the rules of the House, I see an opportunity to modernize those rules but a change would need to honour the tradition of Parliament and have all-party consensus or at least the consensus of a majority of members to change things, because those things influence our democracy and they are important. Doing some of those things would, as the suggestions I have made about passing things we all agree on and everything else, clear the legislative agenda in a way that would move things forward more positively.

I also would reiterate that you have to have someone working with the opposition leaders who can be trusted, and I think that trust is broken.

The other point I would make is about amendments that are brought forward and are agreed to by the opposition members. It is not often that the NDP and the Conservatives play on the same team and sing from the same song sheet. That does not usually happen but lately it has happened a lot. When that happens, it should be a signal to government that this is an amendment that Canadians want to see.

The government needs to say what it is going to do and then it needs to own up to it. Some of the credibility loss that has happened has happened because the government said it was going to do something and then it did not. The government maintained it was going to be open and transparent and then facts have been hidden or things have not been well represented. The government said it was going to be accountable but then every day when we stand up and ask questions we get the shell game. It does not answer our questions, and this would not be acceptable in the business world.

These are some of the things that would help to get the legislative agenda flowing through. As a member of the opposition, I want to see the right things happen for Canada and I am willing to work with the government to see that happen.

Message from the Senate

[The Deputy Speaker, Bruce Stanton]

I have the honour to inform the House that when the House did attend His Excellency the Governor General in the Senate chamber, His Excellency was pleased to give, in Her Majesty's name, the royal assent to the following bills:

C-2, An Act to amend the Income Tax Act—Chapter 11, 2016.

C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act—Chapter 14, 2016.

C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures—Chapter 12, 2016.

C-35, An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2017—Chapter 10, 2016.

S-4, An Act to implement a Convention and an Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and to amend an Act in respect of a similar Agreement—Chapter 13, 2016.

It being 4:53 p.m., the House stands adjourned until Monday, January 30, 2017 at 11 a.m., pursuant to Standing Orders 28(2) and 24(1).

(The House adjourned at 4:57 p.m.)

[The Deputy Speaker, Bruce Stanton]

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed the following bill: Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, without amendment.

Income Tax Act

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, I want to thank my colleagues who support the bill and who have spoken so well to the merits of it.

This legislation would help all seniors today by removing a punishing withdrawal structure that would harm the retirement savings of Canadians. Before I reiterate the specific benefits of the bill, I want to thank the member for Cowichan—Malahat—Langford, who spoke in favour of the bill during the first hour of debate. He said that he strongly encouraged support of the bill at second reading so we could at least bring it to committee, further study it, and hear from expert witnesses.

I also want to address comments made by the Parliamentary Secretary to the Minister of Finance and the Parliamentary Secretary to the Leader of the Government in the House of Commons, who both spoke in opposition to the bill in the first hour. Neither of them pointed out specific potential harms of this bill, but rather launched into lengthy platitudes about how great the government was for forcing the CPP expansion. Their argument is meaningless because supporting Bill C-26 and supporting Bill C-301 are not not mutually exclusive. The government members can support both bills without one impacting the other. I look at the member for Cowichan—Malahat—Langford for this example. He doing both, and he has not exactly burst into flames because of it.

The Parliamentary Secretary to the Minister of Finance elaborated on the benefits of the previous Conservative government's sensible lowering of the RRIF withdrawal rates in 2015. I congratulate him on this non-partisan behaviour and encourage him to continue to do this by supporting Bill C-301, which is the logical extension of the 2015 reduction.

In supporting the 2015 reduction, the member acknowledges that RRIF rates are out of touch with the changing realities of life expectancy and savings investments. Because government will never react enough to minimize the harms to seniors caught in the middle, the logical next step is to eliminate these rules entirely and stop punishing seniors for daring to have savings. I hope the member realizes his inconsistent logic in supporting the 2015 reduction but opposing this extension, and reconsiders his position.

He next made misleading arguments on tax deferral by implying that this legislation would allow Canadians to avoid taxes entirely. This is false and he is wrong. The government would get what it is owed. The only difference is that with Bill C-301, seniors would decide when it was best to withdraw their savings and be taxed. Government is not going anywhere and neither, by extension, is the tax man. Government can wait, especially if it means our seniors are better off.

The member then doubled down on his flawed tax-exemption argument, but it was also an irrelevant point. He said that the bill could motivate seniors to press for tax exemptions, which would be contrary to the basic principles of our fiscal policy. I am not certain what the member was trying to get at. I wonder if he is seriously basing his opposition around the idea that just maybe in the future some people might push for better tax treatment. I wonder what is next? Maybe the government needs to take money from seniors because some might spend it on beer and popcorn.

His last argument is just as nonsensical. He said that this bill would create major intergenerational disparity, and we heard that earlier today as well, because older seniors had been forced to withdraw their savings already. I am very much unclear on what the member is thinking. I think he may misunderstand the parliamentary system entirely. I just want to clarify for him that every law that we change affects Canadians unevenly.

The Liberals' own prized CPP tax hike would not benefit anyone for about 40 years, yet would raise taxes on several generations that would see zero benefit. Adding over $100 billion in debt for later generations to pay would do the same. His government is going to create the largest intergenerational disparity in Canadian history, but the Liberals argue against Bill C-301. I wish I could peek into the member's mind for a brief moment so I could witness the logic backflips he does to reconcile the support for the CPP tax hike and off-loading debt for future generations, but then opposes this sensible legislation because of intergenerational concerns.

Last, the parliamentary secretary to the government House leader said that he could not recall anyone from his constituency contacting him regarding RRIF withdrawals, that it was not a substantive point. It is probably because the member never asked. However, I asked, and CARP asked. We heard overwhelmingly that the bill was needed and wanted.

The bill would address real harms. Canadians are living longer, their investments are earning less, and the RRIF withdrawal structure is depleting the savings of our seniors at an unsustainable rate. These forced withdrawals negatively affect seniors in many ways, and disproportionately hurt low-income seniors. Forced withdrawals count as income, which needlessly triggers clawbacks of OAS, GIS, and needed provincial benefits. This matters for low-income seniors who rely on OAS and GIS for their daily expenses, but need to continue saving their RRIF for expected later-in-life expenses such as long-term care or care for their disabled children.

This bill is broadly supported. The Canadian Association of Retired Persons supports the bill because it would return financial control over savings back to seniors. It would not cost taxpayers a dime. According to the C.D. Howe Institute, it would probably benefit the treasury, not cost the half a billion dollars as made up by the other side.

This bill is badly needed. There is only one solution, and that is to eliminate the mandatory withdrawal and stop punishing seniors for saving. Let us allow Canadians to manage their retirement as they see fit. Enact this broadly supported and sound legislation. Let us send it to committee so Canadians can have their say.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, I want to thank the member for Edmonton West for bringing this private member's bill forward. Many times the member and I do not see eye to eye, but I certainly have a lot of respect for him, and I enjoy listening to him.

It is my pleasure to rise today to speak to the private member's bill, Bill C-301, an act to amend the Income Tax Act and to make a related amendment to another act, which will affect registered retirement income funds, otherwise known as RRIFs.

The NDP is supporting the bill at second reading because we feel it deserves to be sent to committee for further study. The issue of mandatory minimum withdrawal requirements is an important issue for retirees trying to maintain an adequate income in their retirement.

It is our view that a detailed examination of the rules regarding RRIFs is necessary to help ensure that seniors are not outliving their savings. Retirement insecurity is reaching a crisis level in Canada, as many Canadians do not have adequate savings to maintain their lifestyle upon retirement. Any measures that will make it easier for seniors to maintain an adequate income must be looked at.

Much more needs to be done to help our seniors live with the dignity they deserve. The high cost of housing and drugs, the clawback of the GIS, and the indexing of pensions are just a few immediate issues. The government also needs to keep its promise to introduce a new seniors price index to make sure that old age security and the guaranteed income supplement keep up with rising costs.

Of more immediate concern is that the government must immediately fix the flaw in its new plan for enhanced CPP benefits. I am sure that members have heard the discussion about the mistake that the government made in Bill C-26 and how the exclusion of dropout provisions in the bill would have a negative impact on those who take time to raise children, especially women, and on those living with a disability. The government will have its chance next week at the finance ministers meeting to fix its mistake. We will all be watching.

This private member's bill will remove the mandatory minimum withdrawal requirements from registered retirement income funds and will change the retirement income fund definition. Registered retirement income funds, known as RRIFs, can be thought of as an extension of a person's registered retirements savings plan, or RRSP. An RRSP is used to help people save for retirement, while a RRIF is used to withdraw income during retirement. RRIFs are similar to RRSPs in several respects. Each allows for tax-deferred growth, offers several investment options, and is government regulated.

A major difference between an RRSP and a RRIF is that with an RRSP, a person can make annual contributions as long as they have earned income and have contribution room available. Withdrawals are optional and will be taxed. With a RRIF, contributions are not allowed, and a person must make minimum mandatory withdrawals each year. RRIF rules and withdrawal rates were introduced in 1978, and then increased in 1992.

In 2015, the Conservative finance minister lowered the mandatory registered retirement income fund withdrawal amount to 5.27% from the previous 7.38%. Also, previous to 2007, the age limit for converting an RRSP was 69. The 2007 budget changed the age to 71, in order to strengthen incentives for older Canadians to work and save. When RRIF rules came into effect, lifespans and time spent in retirement were much shorter than they are today. RRIF holders now face the considerable likelihood of running out of money in late stages of retirement.

The NDP has long been in support of lowering these rates. In 2015, the NDP pension critic John Rafferty introduced Motion No. 595. It read:

That, in the opinion of the House, the government should review the Registered Retirement Income Fund mandatory minimum withdrawal thresholds and amend them to ensure they do not unduly force seniors to exhaust their savings too quickly.

The problem with the RRIF withdrawal schedule is that people are living longer, and if the schedule is followed then it is very likely that an account holder will run out of savings by age 92. At that point, the person who had saved diligently throughout their life will see their quality of life decline at a delicate time, through no fault of their own.

There are also concerns that RRIF rules can cause clawbacks on people's benefits from OAS and/or GIS. We know that people are living longer, and this fact will have an impact on seniors and on their ability to have enough money to see them through their retirement. In this context, it is interesting to look at some facts about today's seniors.

The probability today of a 71-year-old female reaching age 94 has almost doubled compared to 1992, from 13% to 24%. The probability of a 71-year-old male reaching that age has more than tripled, from 4% to 14%. There are 265,000 Canadians who are 90-plus years of age today. With the baby boom generation reaching these ages, the number of people living beyond 90 is expected to rise dramatically. By 2021, there are projected to be 355,000 Canadians aged 90-plus, including 80,000 people over the age of 95.

Most Canadians do not have alternatives to private savings for retirements besides CPP, OAS, and GIS. When RRIF rules were first put into place in the 1970s, Canadian households saved about 15% of income. By 2011, the household savings rate plummeted by a factor of five, to just above 3% of income. Canadians between the ages of 65 and 69 today hold only an average of $40,000 in RRSPs, which is a very modest amount. In 2011, workers aged 55 years and over accounted for 18% of total employment, compared to 15% in the 2006 census. This was the result of an aging baby boomer generation and increased participation of older workers in the labour force. Mandatory minimum RRIF withdrawals are becoming irrelevant as women and men are living at least twice as long, and staying in the labour force longer.

As I said earlier, the NDP intends to support this bill at second reading, as we feel it should be sent to a committee where the issues of RRIF withdrawal and income security for seniors can be properly studied. I am disappointed to hear that our Liberal colleagues will not be supporting the bill and are not in favour of this issue getting further study. However, then again, maybe I should not be surprised. The Liberals have made some progress on the issue of retirement insecurity with their modest increases in the GIS and their modest increases in benefits in the enhanced CPP proposal. That being said, the government has also launched a tax on some Canadian pensioners. Its failure to include dropout provisions in the enhanced CPP is certainly an attack on women and those living with disabilities.

We also have Bill C-27, which is clearly an attack on every worker and retiree who has invested in a defined benefit pension plan. It is a policy on which the former Conservative government did consultations and eventually decided not to move forward with it. Now it looks like the Liberal government is going to finish the work that the Conservatives started. The current government's plans are inconsistent and confusing. The strategy for dealing with the retirement income crisis is uneven, inadequate, and at the end of the day will be ineffective. Canadian seniors will be hurt as a result.

I urge all members to support this bill, so we can refer it to a committee where we can study how to better help Canadian seniors live with the security and dignity they deserve.

Budget Implementation Act, 2016, No. 2

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, I once again have the great pleasure of rising to talk about how successful the Liberal 2016 budget has been, along with Bill C-29 to implement it. It is a budget that plans for the future, invests where investments are needed, helps our seniors, returns science and innovation to its rightful place, lays the groundwork for our youth, and addresses the priorities of our regions.

At 19,694 square kilometres, my riding, Laurentides—Labelle, is the 46th largest riding in Canada. Our smallest municipality has 41 permanent residents; our largest has about 13,000. My home town of Sainte-Lucie-des-Laurentides, where I still live, is the median of our 43 municipalities with 1,024 residents.

Our communities are aging. In 2011, the average age was 49.5. This year's census data will be released shortly, and I can only imagine that the average age will be over 50, so this budget and the initiatives that will affect our region are important.

In this bill, we are making it easy for senior couples no longer able to live together to receive greater old age security benefits. We are helping seniors in the short term, and we are planning for future issues involving seniors through the changes we have already rolled out for a significant 10% increase to the guaranteed income supplement for single seniors; through lowering the eligibility age for old age security from 67 to 65; and also through Bill C-26 on the future of the CPP.

We have been here for only a year and we did all that. The three budgets remaining in this mandate can only be even better.

Speaking of the future, I want to take this opportunity to talk about our innovation agenda. Our budget puts billions of dollars into social, transport, and green infrastructure. Our investments in scientific research are finally back on, after years of having a creationist minister of science. We understand the importance of research, of science, and of being truly progressive. Progressive comes from progress. Progress is a forward or onward movement. Moving forward is what we do.

While the official opposition objects to even the most basic progress, when even the notion of switching to digital clocks in this chamber was pooh-poohed by the Conservatives when we had a debate on Standing Order 51, the rest of society moves ever forward.

Mr. Speaker, 2016 marks the 25th anniversary of Linux, the open source operating system started by Linus Torvalds and developed into a world powerhouse by tens if not hundreds of thousands of contributors from all walks of life and all corners of the globe.

I have been involved in the Linux and open source community for most of that time, mainly through the open and free technology community SourceForge and its predecessor organizations, Software in the Public Interest and the Debian community. It symbolizes to me what a community can do when it works together. Indeed, DebConf17 will take place next year in Montreal, and it is an excellent and concrete example of what that looks like.

We in rural Canada are still trying to figure out how to reduce packet loss on our TCP-over-smoke signal Internet connectivity and our UDP-over-carrier pigeon cell phone service. The rest of the world is not waiting.

Amazon, Google, and Facebook built their empires on Linux. Linux now runs 498 of the world's 500 fastest supercomputers, only one of which is in Canada. Even Microsoft recently finally joined the Linux Foundation this fall.

I believe it is very important to understand the lessons of the open source community.

In 25 years, Linux went from a university student's hobby to the software backbone of the Internet. Many people became very wealthy because of it, with it, and through it, yet all the while, the software, the product, was free for anyone and everyone to use, to modify, to take apart, and to understand.

While some people refuse to use a web browser other than Internet Explorer because its proprietary nature is seen as the only possible avenue to being secure, I see it as the other way around. Open source software, with its peer-reviewed scientific approach to development, tends to be the most secure option available. Getting open source logic into government can only see innovation improve.

With our innovation agenda, the options are there, but to get there, we need communications infrastructure. That we only have one of the world's top 500 supercomputers, and that it is 196 on the list, speaks to the need for infrastructure and investment in innovation. After a decade of the previous government dismissing science as an inconvenience, unhelpful facts in the way of an ideological agenda, the government we have today clearly believes in researching and preparing our way into the future.

In rural Canada, as I mentioned, Internet is our big file. Of the 43 municipalities I mentioned earlier, all 43 see the lack of proper, competitive, high speed Internet as among the top priorities. Without it, our average age will continue heading north. When our average age reaches retirement age, the social structure of our region will necessarily change.

To address this, we need to address the issues that are keeping youth away.

When I asked high school seniors who among them will stay in the region after they graduate, it was rare to hear one of them say yes.

When I ask them why they leave, the answers are always the same. They say that there is no post-secondary education, that there is not a lot of public transit, that the regional service covers 35 municipalities with a couple of retired school buses, and that there is substandard Internet and cellular service. Without these, not much is going on. When newcomers see that their cellphones do not work, they do not think about buying a house in our region, moving there or making their lives there.

Internet access is only through slow and unreliable satellite service or by telephone. Surely members can remember that noise old modems used to make. Unfortunately, it is still the case for many of our residents. For the luckiest, it is a blurry image at the end of a Skype call with their grandchildren.

Our budget is beginning to tackle these problems. We are investing $500 million in digital infrastructure to help bridge this technical gap. The lack of internet means fewer young people, less immigration and fewer opportunities for those who stay.

In investing a half a billion dollars in digital infrastructure to begin with, we are creating opportunities for those who stay and some appeal for newcomers. We are also helping to keep young people in the region.

The bill also aims to improve the lives of our seniors and to even out the average age of our regions over the long term. It is a budget that plans for the future, that invests where investment is needed, that helps our seniors, that reinstates science and innovation to their rightful place, that paves the way for our young people, and that examines the priorities of our regions. I am proud to support it.

What I am most proud of in this budget is the Canada child benefit. It helps thousands of people in the country. Over 300,000 people will find more money in their pockets.

When I tour my riding, people will often stop me and say they have never been interested in politics, but they really appreciate what we have done for families.

Last Friday evening, someone told me that she became a single parent just before the change in policy, and that it has helped her directly. It also provides concrete assistance to the region’s youth and families. I am proud of everything we have done. We have be proud of this budget. I am proud to support it.

Report Stage

[David Lametti, Liberal, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, it is an honour to speak in the House this afternoon on something that really is a centrepiece of our government's policy moving forward: the budget. The budget is important to Canadians in so many ways, but, in particular, because it represents a strong and courageous change in direction from policies that the previous government undertook that would have the impact of making my children and grandchildren and everybody else's children and grandchildren across the country a whole lot weaker for many years.

We plan to invest over $180 billion in infrastructure over the next 11 years. So many of these expenses will directly touch upon my riding, such as social housing. The previous government, over the past 10 years, completely abandoned its responsibility in the area of social housing. I am privileged to sit in the House next to the member for Spadina—Fort York, who greatly inspired our platform and, therefore, greatly inspired the budget as it now stands. I really would like to pay homage to him.

He has an urban riding in Toronto, which is much like my urban riding in Montreal, and the housing needs are glaring, in particular, because of the federal government's abandonment of its responsibility 10 years ago. We need better social housing, we need to renew co-op agreements, which are very important in my riding. We need to have the money available for those co-op agreements to be renewed, and for those co-operative housing arrangements to reinvest in their own infrastructure, such that the buildings do not become dilapidated and continue to be vibrant communities moving forward.

My riding straddles the end of the city and the beginning of the suburbs, and there is the question of affordable housing as well. We need to be flexible to allow homeowners to repair their own homes and for landlords to repair their rental properties, particularly at the lower end of the rental scale, such that tenants will have a good stock of affordable housing. The fact that we have had the courage to say we will run deficits in order to improve our stock of social housing and infrastructure generally, I think, is an important change of direction.

There is also money in infrastructure for social innovation and technological innovation, two things that are very dear to my heart. I taught intellectual property for many years and have had to follow, for professional reasons, quite happily, I might add, the whole digital revolution. The world has changed immensely since I started teaching intellectual property in 1998. It has been unbelievable and the possibilities created for both economic advancement and the reshaping of society through the digital revolution are breathtaking.

I have, and I hope to have, social innovation projects accepted for my riding, as well as trying to bring some of the fruits of the digital revolution into my riding to create good middle-class jobs, but also to allow people to live closer to where they work and allow the community to thrive in that manner. It is a new generation where people do not necessarily want to commute for a long time in order to get to work. I hope I have the ideal riding for that possibility. By investing in infrastructure, particularly in these kinds of digital areas, we might be able to create those possibilities.

My riding is also blessed with two jewels, the St. Lawrence River and the Lachine Canal, both of which could profit greatly from investment in green infrastructure. The Lachine Canal is, for many reasons, so historically important in the history of Canada, in the development that occurred along that canal. Now we need to re-deploy the Lachine Canal as a recreational space. That requires infrastructure spending not just on the canal itself, such as the walls of the canal, and its development into a 12-month-a-year recreational facility, but also for decontamination.

All the lands in the southwest of Montreal are effectively contaminated because of their industrial history. Moving forward on any kind of project, whether around the Lachine Canal or whether a social housing project in Verdun or in Ville-Émard, we need to be thinking about funds for decontamination in order to make our infrastructure projects work.

Let me open with the following, because we are talking about the environment, and it is something that I feel needs to be said in the House as regards the price on carbon. People who speak out against a price on carbon seem to think they have a right to pollute. It used to be treated in the economics literature as an externality, something a property owner or business owner did not have to think about. It was external to his or her thinking. However, that kind of analysis is completely wrong. No one has the right to pollute. No one has the right not to consider these externalities of their own business activities. It is their responsibility precisely to consider the environmental impact of everything they do. It is part of the responsibility of being a property owner. It is part of the responsibility of being a business owner. I spent the better part of 20 years as a property theorist arguing just that. Therefore, it is not unjust to price carbon. In fact, it is equitable and just, and it is righting a historic wrong, whether in terms of analytical thinking or in terms of justice itself.

One of the most courageous things we are doing in this budget is the idea of an infrastructure bank. This is precisely in recognition of the fact that some of our infrastructure needs are so great that we need to turn to pools of investment capital in Canada and throughout the world to realize these kinds of projects.

There is a project currently being conceived in Montreal for a high-speed rail. Funding for that would come from Quebec's massive investment from the Caisse de dépôt et placement du Québec. This is the kind of project that the investment bank would target. They are projects that have some income stream that an investment fund or pension fund might want to invest in over the long term, with a stable and steady rate of return for its investors.

Why not tap into this? It makes possible all sorts of projects that will help my children and grandchildren move around the city of Montreal, should they choose to stay there, or anyone else. It really takes courage. We envisaged this in our platform, it was in our campaign booklet, and we are bringing this to reality. It is going to be fantastic.

Finally, I need to speak about the families in my riding, both the young and the old.

The Canada child benefit will help many families who live in my riding who are struggling to make ends meet. This non-taxable benefit, which is much more generous than the previous benefit, will certainly be an advantage over what we previously had, a miscellaneous mumbo-jumbo of tax credits and whatnot that was far less generous than our single, clear program.

When the future Prime Minister announced this in Montreal at the Olympic stadium, it was pointed out that the 70,000 seats in that stadium matched how many kids in Quebec would be raised out of poverty by this measure. I am proud to be part of that.

Finally, for the seniors in my riding, reducing the age for eligibility for benefits to 65, increasing the old age supplement, in addition to what we are doing in Bill C-26 on the CPP, means that our benefits for seniors are going to give them a dignified retirement. It will help, in particular, those who are really struggling, and believe me, I met many of them at the door.

There are measures in here to help veterans. There are measures in here as far as employment insurance goes. It would take another two or three days to recite these, but I am happy to conclude at this point by saying that this is a courageous budget. “Courage” is the word that characterizes it. We have had the courage to come forward to take these measures, put them in place for our kids and our grandkids, and I am proud to be part of it.

Business of the House

[Candice Bergen, Conservative, Portage—Lisgar, MB]

Mr. Speaker, we certainly do hope there will be a withdrawal of that comment.

Before I ask the usual question, I would like to ask the House leader if she would consider being more generous with allocating time for debate of Bill C-29, the budget implementation bill, than she was with Bill C-26, which she well knows was allocated the minimum amount of time possible. Worth noting is that the House leader's predecessor committed five sitting days to the same stages of the budget implementation bill on this watch. Since she was appointed—

Poverty Reduction Act

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, I am proud to rise today in support of Bill C-245, sponsored by my colleague, the member for Saint-Hyacinthe—Bagot, which would establish a national poverty reduction strategy.

Poverty is, sadly, still very much a growing problem in Canada. Since the unanimous motion by Ed Broadbent in 1989 to eradicate poverty in Canada by the year 2000, very little has been done by successive Liberal and Conservative governments to actually reach this goal.

In the intervening years since 1989, Canada has been proud of its position as the ”best” and “second-best” country in the world in which to live, according to various United Nations measurements. However, Canadians living in poverty, including an alarming number of children, are no better off than they were in 1989.

How can this be in a country as blessed as Canada, with natural resources, a skilled and educated workforce? How can we tolerate a situation where our neighbours are struggling to find shelter, put food on the table, and take care of their families?

In my office is a poster that say, “All it takes is political will”. That poster was created to commemorate Ed Broadbent's motion in 1989, which every member of Parliament voted to support. Yet here we are in 2016 and very little has changed. We obviously did not have the political will. Our governments have failed to make poverty reduction a priority.

Poverty reduction is a complex and challenging issue, but we must not let that paralyze us. Too much time has already been wasted by hand-wringing and repetitive consultations that do not produce any discernible improvements for people living in poverty.

Bill C-245 offers a turnkey proposal that the federal government can readily adopt and implement. It calls for the creation of an officer for the commissioner for poverty reduction, as well as a national council for the elimination of poverty and social exclusion.

These are concrete steps that would focus efforts in poverty reduction in a way that is measurable, accountable, and cumulative. Governments have often said that we cannot afford to do any number of things that would reduce poverty. On the contrary, we cannot afford to not do anything.

I would like to give credit where credit is due. The government has put in place the Canada child benefit and increased the guaranteed income supplement by 10%. Unfortunately, these measures, by themselves, are not sufficient to eradicate poverty in Canada in any meaningful way. The Liberals' Bill C-26, which is supposed to increase retirement security for all Canadians by improving the Canada pension plan, actually omits some of the most vulnerable from the enhancement: women who take time out to have kids and people living with disabilities. Whether this omission was an oversight or deliberate, the Liberals have refused to fix the bill, thereby doing absolutely nothing for two of the most vulnerable groups in society.

I come from the great riding of Saskatoon West, a diverse riding that, unfortunately, is no stranger to poverty, and there is a very high cost to poverty. In Saskatchewan, Poverty Costs, a coalition of community-based organizations, calculated that the economic cost of poverty in Saskatchewan was $3.8 billion a year.

Of course, the costs of poverty go beyond the dollars and cents spent on maintaining Canada's social safety net. The lost opportunity costs and the consequences of growing inequality among our residents impact all of us. In addition, poverty costs Saskatchewan $420 million a year in heightened health care service usage. Poverty also causes us to spend between $50 million and $120 million a year more than we would otherwise spend on our criminal justice system.

The same report also found that one in 10 of our population lacked the income needed to afford basic necessities. For a parent working full-time, minimum wage pays just over $20,000 per year. That is almost $15,000 below the poverty line for a family of four. Poverty affects us unequally and the numbers are shocking: 17% of Canadian children live in poverty, 33% of immigrant children, and 64% of first nations children.

Some of Saskatchewan's population, including women, children, newcomers, indigenous peoples, people living with disabilities, and those in rural areas are at greater risk of living in poverty and face systemic barriers that impede their efforts to rise above the poverty line.

Health disparities due to poverty are a direct result of substandard living conditions, inadequate access to nutritious food, and increased stress associated with making ends meet. The stresses of living in poverty can also be deadly.

In Saskatoon, low-income adults were 4.5 times more likely to experience suicidal thoughts and 15 times more likely to attempt suicide.

In Saskatchewan, and across the country, costs of living are rising, but wages and salaries are not necessarily keeping pace.

In 2012, Saskatchewan had the second-highest inflation rate in the country, and yet, still had the second-lowest minimum wage.

The good news is that, overall, there is an increased public understanding about the social determinants of health, and growing support for addressing the underlying causes of poor health. Some 94% of Saskatchewan residents support reducing poverty, with 89% supporting a provincial approach to poverty reduction in Saskatchewan.

Therefore, we had high hopes in Saskatchewan when the provincial government adopted a poverty reduction strategy in 2014. Unfortunately, the Saskatchewan Party has now backed away from this priority, at a time when it is needed most.

The evidence shows that working to reduce poverty in the first place costs less than paying to respond to the effects of poverty later. If we needed proof that poverty is growing instead of decreasing, we just have to look at last week's headlines.

According to HungerCount 2016, a comprehensive report on hunger and food bank use in Canada, Saskatchewan has seen one of the largest increases in the number of people accessing a food bank since last year. The percentage of children using food banks is highest in Saskatchewan. It represents 45% of everyone served.

Steve Compton, the CEO of the Regina Food Bank, added that a job is no guarantee against food bank use. Nearly one in six households helped in Canada are working, yet still need a food bank to make ends meet. A lot of this has to do with the fact that low-wage and precarious jobs with no benefits are the only job growth our economy is seeing. It is no wonder that Canadians continue to rely on food banks, and yet, the finance minister has said that we should all just get used to job churn.

The Liberal government needs to acknowledge that poverty is growing, and use the levers it has to encourage stable, long-term jobs, instead of shrugging its shoulders. A $15 federal minimum wage would be a good start.

I am very proud to say that in my riding, four progressive employers have already committed to paying their employees a living wage. A living wage makes a huge difference for families and individuals and their communities. A truly progressive government would understand this and act accordingly.

Last week, Campaign 2000 released its annual report card on child and family poverty. It is heartbreakingly sad that an organization whose goal it was to eradicate child poverty by the year 2000 is not only still in existence today but that they are farther than ever from their stated goaI. After decades of advocacy for children and families in poverty, Campaign 2000 is still calling on the federal government to create a national anti-poverty plan.

Its 2016 national report card, “A Road Map to Eradicate Child and Family Poverty”, provides the latest statistics on child and family poverty in Canada, and clear recommendations for federal government action and leadership to end child and family poverty.

Bill C-245 can be the first step. It has already been studied at committee, and the Minister of Families, Children, and Social Development has acknowledged it is an excellent bill.

The Liberals have stated many times in the House, and at various committees, that the federal government has a role to play in reducing poverty in Canada, and that Canada needs a long-term, collaborative strategy to combat poverty.

Safe and affordable housing, affordable child care, accessible health services, a living wage, and a basic income for everyone are all important factors that contribute to the well-being of all Canadians.

It is my hope this excellent bill will be passed without delay, and it will be part of a truly comprehensive and collaborative strategy that will finally tackle all the different factors that contribute to poverty in this country.

Government Response to Petitions

[Candice Bergen, Conservative, Portage—Lisgar, MB]

Mr. Speaker, I rise on a point of order to challenge our moving to the orders of the day this early in routine proceedings, a procedure that seems to be used habitually by the government when it is poised to close debate on important issues.

In this case, the government has already limited debate on the third reading stage of Bill C-26, which is scheduled today. One day is the minimum number of days that can be allotted under the Standing Orders, and the government House leader chose as that one day, the shortest day in our calendar. I will not take up more of the House's time on that point before I get back to my procedural intervention, but I do want to say one thing. The House expected more than a minimal effort from this so-called new tone government House leader and we are very disappointed.

Back in the spring, the government moved and adopted motions to proceed to the orders of the day four Wednesdays in a row, skipping over all rubrics of routine proceedings. That was done on April 20, May 4, May 11, and May 18. Most recently, the Parliamentary Secretary to the Leader of the Government in the House of Commons moved such a motion on Thursday, November 17, and today the government is proposing to do it again for the sixth time.

I would argue that the government House leader is continuing where her predecessor left off in misusing this procedure. I refer to a Speaker's ruling on April 14, 1987. In his ruling on a similar matter, the Speaker stated:

Routine Proceedings are an essential part of House business and if they are not protected the interests of the House and the public it serves are likely to suffer severely.

He referred to a ruling of November 24, 1986, in which a motion having the effect of superseding a number of items under routine proceedings was inappropriate and excessive and was disallowed. However, the circumstances on April 14, 1987, were dramatically different and the Speaker allowed the government to move its motion.

I will compare those circumstances to today's circumstances and let you, Mr. Speaker, and the House draw its own conclusions. The Speaker observed that the opposition was significantly obstructing the progress of Bill C-22. He noted that seven divisions took place prior to the introduction of the bill, most of them resulting from the moving of dilatory motions under routine proceedings. Fourteen more divisions, with most of them again resulting from the moving of dilatory motions during routine proceedings, took place before the bill reached second reading on December 8, 1986. The bill was referred to committee and reported back to the House on March 16, 1987, after 24 meetings and 82 hours of debate. Numerous amendments were proposed at report stage and the House debated those amendments for four days.

On April 7, the minister of Consumer and Corporate Affairs gave notice of time allocation. Unlike the opposition in 1987, we have negotiated openly and honestly with the government. Since this Parliament began, only two dilatory motions have been moved by the opposition. In contrast, five such motions have been advanced by the government. Today will be the sixth. The Speaker in 1987 noted that in the British House of Commons, the Speaker has the power to refuse a dilatory motion if he believes it to be an abuse of the rules of the House. He also noted that the Speaker is empowered to allow them if he believes they are justified.

In comparing Bill C-22 in 1987 and any bill the Liberal government has proposed to the House in this Parliament, the opposition has not given the current government justification to proceed in this manner. The scale of obstruction in 1987 was extreme according to any standard, and only under those circumstances was the government permitted to move its motion. The government should not be allowed to routinely skip over all rubrics during routine proceedings without just cause.

As Speaker Fraser pointed out, routine proceedings are an essential part of House business and they should be protected as a vital component that serves the interests of the House and the public. There is no moral ground or rational reason here for the government to proceed in this manner. Speaker Fraser, in his 1987 ruling, added:

It is essential to our democratic system that controversial issues should be debated at reasonable length so that every reasonable opportunity shall be available to hear the arguments pro and con and that reasonable delaying tactics should be permissible to enable opponents of a measure to enlist public support for their point of view.

Clearly, the 1987 case involving Bill C-22 demonstrated unreasonable delaying tactics. This House has never seen such delaying tactics, and the government has never experienced this sort of sideshow from the opposition. The government's problems are self-inflicted and are not due to the opposition. The government has had the privilege of working with a generally co-operative opposition in this Parliament and has frittered away that goodwill. It has foolishly squandered it through its mismanagement of the House, mean-spirited tactics, and its minimalist efforts to make Parliament work.

While the government house leader was marketed as new, we now discover that we did not get “new and improved”.

Mr. Speaker, I ask that you consider my arguments and not allow the government to move its motion to proceed to the orders of the day until it has at least demonstrated that an unreasonable obstruction has taken place.

Bill C-26--Time Allocation Motion

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Speaker, I appreciate the question. It is an important one.

We know that we have things we need to do on behalf of Canadians. We came into office with a promise to improve the lives of middle-class Canadians and to improve the lives of those people who want to get into the middle class.

We know that the legislation we are putting forward in Bill C-26 is very important for the long-term health of our country. We cannot move forward on the things we need to move forward on if we do not have a way to manage effectively what we can put forward to Canadians.

Time allocation is the only tool that exists for government to advance legislation when a stalemate exists. We have a duty to ensure that we move forward our legislation.

We have provided eight days of debate so far on this measure. It is completely disingenuous to claim that we have not provided sufficient time for debate on this measure. We believe that it is important for Canadians, and we are looking forward to having a better outcome for Canadians in the future as a result of this measure.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I am going to raise a larger concern. We went through ten years, and I know my friends on the Conservative benches may object to my reminding us, when we had a government that did many things the new government promised would not be repeated, including the use of time allocation repeatedly, but also in other areas of public policy.

The changes that were promised are not the changes we are seeing. It seems that 10 years of one style of policy gets us acclimatized to a certain amount of loss of democracy. I had hoped we were hitting the reset button and that we would not see the use of time allocation as frequently in this place.

Between 1914 and 1945, time allocation and shutting down debate was used seven times. While nine times in one year does not seem like a lot, when the previous government used it 100 times in one session of Parliament, the 41st Parliament, it is still against the essence of democracy in this place to shut down debate.

It is true, as the Minister of Finance says, that many parties have had a chance to weigh in on this debate. Members of Parliament in positions such as mine, in parties that are not recognized, those with fewer than 12 members, have not had the opportunity.

There are many questions to be asked about Bill C-26. The bigger question is whether the bar the new government set is to do better than the previous government or to do as well as it promised to do.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Speaker, as I mentioned, including today we have had eight days of debate on Bill C-26 at second reading. Again, this has allowed nearly 70 members of Parliament to participate in debate. This represents very significant percentages of both the Conservative members opposite and the New Democratic Party members opposite.

We have been very clear. The government is committed to improving retirement outcomes for Canadians, all Canadians. We are looking to introduce this measure because we know that it will improve the lives of Canadians in the future. It will be an improvement for all Canadians who are able to save in the Canada pension plan. We know that it will bring forth a better outcome in the future.

[Murray Rankin, NDP, Victoria, BC]

Madam Speaker, it is the ninth time that the government brings in guillotine motions like time allocation. It is the third time in a week and a half that it has done this. So much for sunny ways.

The government is well aware of the problems with Bill C-26, a well-intentioned reform bill to fix the Canada pension plan. New Democrats have made many constructive comments, including the fact that this bill discriminates against women, primarily, who take time out to have children, and against people who have disabilities of various sorts.

How is this time allocation motion possibly consistent with the respectful procedures that the government promised in this place and that the Prime Minister was committed to addressing? How does this square with those promises?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, my question is this: What is the hurry? We know that Bill C-26 is not going to have any benefit for anybody for 40 years. We know that it certainly will have a bad effect in terms of reducing GDP, killing jobs, and potentially hurting small businesses for the next 30 years. Understanding that it would do nothing to help Canadians today who are struggling in retirement and nothing good would come from it for at least 40 years, why is the government in such a hurry to take money out of the pockets of hard-working Canadians and small businesses?

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, time allocation is the only tool that exists for a government to advance legislation when a stalemate exists. We have a duty to move forward all legislation, including important financial legislation, to make sure we move forward on the agenda that we have for Canadians.

I would like to just respond to some numbers. Including today, we have had eight days of debate on Bill C-26 at second reading. On Bill C-26, this has allowed nearly 70 members of Parliament, including nearly 40 Conservatives, to participate in debate so far. This represents nearly one half of the Conservative caucus.

Our government is committed to helping Canadians to achieve their goal of a safe, secure, and dignified retirement. We know that Bill C-26 would move forward that agenda in a way that would make a difference for all Canadians across this country. We are moving forward in a way that allows us to do what we know is right for Canadians.

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, I move:

That in relation to Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, not more than one further sitting day shall be allotted to the consideration of the report stage and one sitting day shall be allotted to the third reading stage of the said bill; and

That fifteen minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration of the report stage and on the day allotted to the third reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.

Canada Business Corporations Act

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, a number of Conservatives have stood up and made reference to the legislative workload. We can talk about Bill C-2, the middle-class tax cut; Bill C-26, a negotiated agreement where we have seen significant agreement across the country among different provinces and territories; and things like medical assistance in dying.

Right now we are debating Bill C-25, a bill for which the Conservative Party wants to assume the credit, saying that it is, in essence, a Conservative bill. If it is a Conservative bill and we are trying to move things along, why would the Conservatives not allow it to continue through the process?

Pensions

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, for two weeks now, the NDP has been asking the Liberals to fix their flawed CPP expansion bill, Bill C-26.

After refusing to address it last night, Liberal MPs once again prevented us from fixing it.

The Liberals also refused to answer why the dropout provisions were not included in the first place. Did the minister not realize the impact this would have on women and people living with disabilities?

If the Liberal government truly recognizes this problem, then why is it forcing through a flawed bill?

Business of the House

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, this afternoon we will continue second reading debate of Bill C-18, the Rouge National Urban Park legislation. The other bills on the agenda for today and tomorrow will be Bill C-25, the business framework legislation, and Bill C-30 regarding CETA. It is my hope that we can complete second reading debate on all these important bills by tomorrow afternoon if at all possible.

Next week, we will commence debate at report stage and third reading of Bill C-26 concerning the Canada pension plan. We will call this bill on Monday, Tuesday, and Wednesday.

Finally, next Thursday, December 1 shall be the last allotted day for this supply cycle.

Pensions

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I rise today to express my profound disappointment with the Liberal government's unwillingness to fix its CPP enhancement legislation, Bill C-26, so that Canadians are not punished for being on a CPP disability pension or for taking time off to raise a child.

For reasons that are not entirely clear, so-called dropout provisions have not been included in Bill C-26. NDP amendments to fix this oversight were rejected by the government yesterday. These dropout provisions have been part of CPP since 1976. Essentially, the government is stacking on a layer, or tranche, to expand benefits. Women and people living with disabilities are going to be penalized because this new tranche will not have the same dropout provisions as the existing one.

These provisions have been excluded from the legislation, but we must not give up on other measures in the very near future to fix this injustice.

The minister must commit today to undertake due diligence and consult with each province and territory—

Finance

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I have the honour to present, in both official languages, the seventh report of the Standing Committee on Finance in relation to Bill C-26, an act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act.

The committee has studied the bill and has decided to report the bill back to the House without amendment.

Pensions

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, 10 times I stood in the House last week and asked if the government would fix its flawed CPP legislation, Bill C-26. Ten times I received non-answers.

Today, I will be introducing my amendment at committee to fix this Liberal flaw that would have serious consequences on the well-being of Canadian women and people living with disabilities.

I have a very simple question for the minister. Will he fix the flaw in the bill by supporting my amendment, yes or no?

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, this afternoon, we will continue our debate at second reading of Bill C-26 on the Canada pension plan.

Tomorrow, we will resume debate on Bill C-16 on gender identity. If time permits, we will also examine Bill C-25, the business framework bill.

On Monday, I will call Bill C-30, the CETA implementation legislation, for consideration at second reading. The bill will be on the agenda for Monday, Tuesday, and Wednesday. It is my hope that this bill will be referred to committee on Wednesday evening.

On Thursday, we will consider second reading of Bill C-23 respecting pre-clearance.

Next Friday, I will call Bill C-18, the Rouge national park legislation, for second reading debate.

Bill C-26—Time Allocation Motion

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, my colleagues have ably discussed many of the issues around time allocation. I want to ask a question specifically on Bill C-26.

Many people, when they put money aside privately, are not just saving for their retirement, but for interim priorities. They are maybe saving for an education, and then after realizing the value of that education, start to save for a new home, and then realize the value of that home to help them save for retirement. But the government, by restricting the eligible investments people can make in tax-free savings accounts, and by taking more money away from them and saving for them on their behalf, robs people of the ability to use their savings for interim projects, things like education, buying a home, and investing in a business.

Is this not another reason why we are much better off empowering people to save for their own futures, as well as long-term projects? Are we not better off doing it that way than by having a government-knows-best approach?

[Terry Duguid, Liberal, Parliamentary Secretary to the Minister of Families]

Mr. Speaker, I think we can all agree that Bill C-26 is important legislation. I think we can also all agree on the facts that nine out of 10 provincial governments are supporting this legislation. I wish the hon. opposition House leader was in the House to hear this—

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I rise to pick up on the point of the hon. opposition House leader. When these debates about time allocation take place, the questions and responses are directed to the substance of the bill, in this case Bill C-26. However, the real issue lies beneath the surface, and it is the deteriorating relationship between the larger parties in this place, which unfortunately bleeds into and contaminates other important work in committees and so on.

The tone and the unwillingness to collaborate I have rarely found to be the fault of only one party. Rather, it generally reflects a lack of co-operation on the part of all parties. Therefore, my question is not really a question to the government. It is a plea to all the House leaders in this place, whether that be the member for Victoria or the opposition party and government House leaders. With all due respect, please do a reset.

Whatever has gone wrong in their relationship, they should go out, find a bar somewhere, have a scotch, and figure it out.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, here we go again. For the second time this week, the Liberal government has invoked time allocation. It is not as bad, I concede, as it was under the Harper government, where over 100 times it resorted to it. However, the sledgehammer of time allocation is simply not the only tool available. There are other tools. Whatever happened to the co-operative, collaborative approach promised by the Prime Minister?

Here is what the Parliamentary Secretary to the Leader of the Government in the House of Commons said not that long ago:

The government, by once again relying on a time allocation motion to get its agenda passed, speaks of incompetence. It speaks of a genuine lack of respect for parliamentary procedure and ultimately for Canadians.

This bill with which we are seized, Bill C-26, despite the excellent work of my colleague, the member for Hamilton Mountain, is deeply flawed in discriminating against women and disabled people.

Why are we rushing a flawed bill through by imposing time allocation?

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

moved:

That, in relation to Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, not more than one further sitting day shall be allotted to the consideration at second reading stage of the bill;

and

That, 15 minutes before the expiry of the time provided for government orders on the day allotted to the consideration at second reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this order, and, in turn, every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively, without further debate or amendment.

Income Tax Act

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, I want to congratulate the member for Edmonton West for bringing the bill forward. I am sad to hear from the parliamentary secretary that the government will be opposing the bill. When we look at the three pillars that Canada's retirement system is based on, we know that workplace pensions are really the pillar that is suffering. Therefore, the government has to look at the other two. They are the ones where the government can have a real influence.

To the government's credit, it is bringing in Bill C-26, and it has made some amendments to the guaranteed income supplement, which deals with that third pillar of personal savings. If we allow seniors, especially in this unstable retirement environment, more freedom to choose how and when they withdraw their retirement savings, that is all the better for them.

The bill is obviously not a panacea for the difficult issues facing our seniors today, but private members' bills have to be very careful. To succeed, they have to focus on one little item where they can make a real difference. It is really up to the government to do the rest. We will certainly be keeping our eye on the Liberal government to ensure it does that.

There may be some watching this debate who are unclear on the difference between RRSPs and RRIFs. We know that RRSPs give everyone the ability to save for their retirement, as long as they have contribution room available and based on their earnings. A PRIF is used as the fund people can withdraw from during their retirement. However, there are mandatory minimum withdrawals that a person must make every year.

The rules for these mandatory minimums were created back in 1978. While I acknowledge there certainly have been some modifications over the years, basically we have old rules that are not very well adapted to today's society and today's reality in which many retirees are living. Seniors are now living much longer than they were in the 1970s. Now RRIF holders face the very real likelihood that they will run out of money in the later stages of their retirement. When that pillar of personal savings is taken out, a person's quality of life can take a significant downhill turn. We certainly want to ensure, through this bill, that we address that very issue.

I venture to say that all members of Parliament in the chamber believe Canada's seniors deserve to retire in dignity and that the government should be doing everything it can within its power to make that a possibility. I strongly encourage support of the bill at second reading so we can at least bring it to committee for further study and hear from expert witnesses. We should at least do the bill that justice.

This has been a battle the New Democrats have been waging for some time now. I would like to point out for hon. members that it was in the previous Parliament that our pensions critic brought a motion before the House to review the retirement income fund mandatory minimum withdrawal threshold. That was John Rafferty, the former member of Parliament for Thunder Bay—Rainy River. His Motion No. 595 stated:

That, in the opinion of the House, the government should review the Registered Retirement Income Fund mandatory minimum withdrawal thresholds and amend them to ensure that they do not unduly force seniors to exhaust their savings too quickly.

The NDP has a history of supporting the intent of the bill. I am very happy to be offering my support of this bill at second reading. I believe this issue deserves further study.

Our party ran on support for any action that would address mandatory minimum withdrawals from RRIFs, so the ultimate aim is to ensure that seniors are not outliving their savings. We have supported this because of the very fact that if we follow the current withdrawal schedule, we will have many retirees with average savings, which are not very high, running out of money when they are in their 90s. No one in the House should support that.

If we look at the future, it basically means people who have saved diligently all their lives could have their quality of life significantly reduced later in retirement. When the income they were relying on from their personal savings suddenly dries up, because they had to follow that mandatory withdrawal schedule, suddenly they become reliant on just the government pension system. Of course, the guaranteed income supplement will respond accordingly in some way.

However, removing one of those pillars, such as personal savings, could have a very drastic influence on someone. I would argue that for a senior who has made it to the age of 90 and beyond, this is the last thing we need to do to them at that particular age. They have enough concerns when they are in their 90s, they do not have to suddenly worry about their income.

When we look at Canada's demographics, we have a real tsunami heading our way. In the next 20 years, the population of Canada's seniors is set to double. Time is of the essence. This is the time when we seriously need to be bringing forward proposals. To the government's credit, they have done some but I would argue this particular measure by the member for Edmonton West is something we could also be doing for that critical third pillar of personal savings.

We know that the probability of a woman who is now 71 living into her mid-90s has basically doubled. The same rate for men has actually tripled. We basically have 265,000 Canadians right now who are in their 90s. By 2021, just a few short years away, we are going to add another 100,000 Canadians to that number. I think that mandatory minimum RRIF withdrawals are becoming increasingly irrelevant as women and men are living much longer and working more years.

This bill does not address everything. On this side, the NDP will be working hard. We will continue to work hard to improve the lives of our seniors. We will support this bill, but we think that much more needs to be done so that workers can retire with adequate incomes. More importantly, we need to make sure that seniors have access to the services they need to maintain their quality of life.

As I go on, I want to talk a little about some of the other areas where I think seniors need considerable help. I want to give a nod to my colleague, the member for London—Fanshawe for the incredible work that she has done on behalf of seniors, on the national seniors' strategy. It is a real honour to sort of inherit the mantle of the NDP seniors' critic. It is like Isaac Newton once famously said:

If I have seen further than others, it is by standing upon the shoulders of giants.

Certainly, the member has done such incredible work, it has allowed me to build on that base.

We know that more than a quarter of a million seniors are living below the poverty line, and that without concrete action, many more are going to fall into poverty in the future. We need that national seniors' strategy that my colleague from London—Fanshawe has brought in. It will ensure that seniors have access to high-quality and affordable health care and housing, and additionally improve the financial security, quality of life, and the integration of seniors within our society. This is really such a multi-faceted issue, looking at the issues that seniors face.

We certainly want to see some measure on home care. We do not want to see the same funding proposal kept that the previous Conservative government brought in. We would urge the government to look at that escalator to make sure it does not drop down to 3%, but to keep it at the current 6%. Health care budgets are drastically affecting our provinces' ability to deliver services. Now is the time for the federal government to take real leadership on this issue, to reinstate that funding that was cut under the previous government.

We need a system of a national pharmacare plan. That is one of the greatest costs that our seniors face. We do not want our seniors to have to choose between food and proper prescription medication. We also need to have real food security. One of the fundamentals of healthy living is making sure that proper, nutritious meals are available for our seniors, as well as affordable housing.

On the pension system as a whole, while I appreciate the 10% increase to the guaranteed income supplement, it really took a fairly small number of seniors off the poverty rolls. Much more needs to be done.

In conclusion, this is also a good time to remind the government that their members need to keep the promise that was made in the March 2016 budget and introduce that seniors price index. That seniors price index needs to be introduced so that we make sure our old age security and guaranteed income supplement are keeping up with the rising costs. I certainly hope to see some news from them soon.

In conclusion, I will be voting for this bill to go to committee for further study, but we must never rest until every senior is out of poverty and can retire with dignity.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, as the member well knows, Canada's retirement system was founded on three pillars, and this bill will be of great assistance with respect to the pillar of personal savings.

I want to look at the situation of women. We know today that the probability of a 71-year-old woman reaching her nineties is much higher than it was even 20 years ago.

Shifting the conversation to Bill C-26, I realize that the Conservatives stand against this bill, but it more than likely has the votes to pass in this House. Would the member not agree that since the bill is going to pass, the government should at least amend its own bill to fix the provisions that unfairly penalize women with respect to that all-important pillar of government pensions for retirement security?

Committees of the House

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, again, infrastructure is of such critical importance for all Canadians in every region, from coast to coast to coast. We need to invest in infrastructure. This Prime Minister and this government have recognized the need for infrastructure expenditures and we have put more money into infrastructure in the history of this country. In fact, for many years I sat in opposition and saw Stephen Harper and the Conservative government do nothing in recognition of the importance of infrastructure. That is why I feel that the Conservatives, once again, made a mistake by voting against this budget.

If we want to talk about helping Canadians, let us think back to what I made reference to in my questions. This budget would make substantial increases to Canada's child benefit program. That would assist tens of thousands of children in every region of our great nation. They would be lifted out of poverty as a direct result of this budget. What happened? The official opposition voted against the budget, denying that benefit.

However, it does not end there. What about seniors, some of the most vulnerable in our society? Let us talk about single seniors who are finding it difficult and have to decide whether they buy the medications they need or food. Quite often, seniors make the decision to buy medications and go to a food bank. This Prime Minister and this government have recognized the importance of increasing the GIS for the most vulnerable seniors in our society. Once again, the Conservative Party voted against that.

I can go on. If we want to talk about vision, this is a government that demonstrates leadership with a vision and takes actions, something we did not see with the Conservative Party. Let me provide two examples, one of which we were supposed to talk about this afternoon, the Canada pension plan in this budget. If members had listened when Liberals talked about canvassing Canadians from coast to coast to coast, they would have heard that pensions were very important to them.

A historical agreement by this government demonstrates leadership. Provinces of all political stripes came on board. They recognized what Canadians see as very important, which was to increase CPP, because it is not just about today. We should be thinking about future generations also, and that is what having a vision and a plan is all about. That is something that this government and this Prime Minister brought to the table and were able to deliver in a substantial way.

In this entire country, as best I can tell, the Conservative Party is the only political entity that actually opposes investing in pension programs. In fact, if we listened to the speeches that the Conservatives made on Bill C-26, one would question whether they even believe in the CPP.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, it is a pleasure to rise and to put forward, in a very clear way, what I believe is somewhat of a tragic story by the Conservative opposition. I believe we are seeing a Conservative Party that has really lost touch with what Canadians want to see and what their expectations are of government.

Let me go further and say that it is more than just an expectation of government, but that Canadians as a whole have an expectation of the official opposition, too. What we are seeing today is disappointment in the official opposition.

One of the things that Canadians truly believe in is the Canada pension plan. They believe in its importance. We have witnessed the provinces, territories, and every region of our country recognize the importance of the CPP. Only the Conservative Party, the party that has lost touch with Canadians, does not recognize what Canadians want. That is really what Bill C-26 is all about.

It is about delivering to Canadians what Canadians have been asking for, and not just for one year but for many years. It is the type of thing that Stephen Harper—

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, we have an aggressive agenda as government. There is the cut to the middle-class tax bracket, the Canada child benefit program, and the substantial increase in the GIS for our seniors. We are lifting seniors out of poverty. We are lifting children out of poverty. We can talk about the investment in Canada's infrastructure. There are so many things in the budget and the government's mandate. We are disappointed that the member saw fit to attempt to adjourn the House.

The very bill that we hoped to debate today, Bill C-26, is a historic agreement that would see millions of Canadians benefit. My question for the member is very specific. Why does the Conservative Party attempt to adjourn debate when there is so much that Canadians want us to do?

Pensions

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, after two days of our raising the issue in the House, it is obvious that the Liberals forgot to consider the needs of women and people living with disabilities in their legislation to expand the Canada pension plan. Stakeholders and union leaders agree that Bill C-26 is flawed because of the omission of the drop-out provision for these groups. It is a simple fix. We are proposing changes and asking for the current government's support.

Instead of rushing this expansion into law, will the government take the time to fix it by accepting our proposed amendments and make this right for all Canadians?

Second Reading

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, it is a pleasure for me to join this important debate on the government's fiscal update and the fiscal policy of the government in general.

To be frank, there is a lot to sink one's teeth into in terms of objections to the government's direction. I can say, having just come back from constituency week and having spoken with constituents in my riding, that people in Alberta, but I think across the country, are being hit very hard by the policies of the government.

As I think through it and talk to business leaders, I am reminded of the fact that every single tax they pay is going up. Small businesses in my riding face a higher small business tax rate as a result of the fiscal policy of the government. They face a carbon tax, a carbon tax brought in by the provincial government but which the federal government will do everything it can to prevent any subsequent provincial government from repealing.

We have the elimination of the hiring credit for small business. Bill C-26 would raise payroll taxes that individual employees as well as small businesses would pay. There is the undoing of employment insurance reforms, which would, in the long run, force up employment insurance premiums. Of course, small businesses are facing higher business tax rates in general from the provincial government and are grappling with the minimum wage hike and other changes that are happening, and there still has been no serious effort when it comes to market access for our resources.

We have a government that is hitting businesses again and again and again. The reality is that these are the job creators in our economy. These are the people whose investments and ingenuity create jobs and opportunities for our country. I just went through the list, objectively, of things that are happening to businesses in my riding, and I have to say that I find the continuing optimism and the continuing desire of business leaders in my constituency to move forward and build truly inspiring. The government should be there to try to help them succeed, not make their job more difficult when it comes to creating jobs and opportunities.

I will mention one specific thing in this fiscal update, and that is the implementation of certain regulations with respect to credit unions. There are credit unions in my constituency. The application of one-size-fits-all regulations, perhaps designed for the big banks, to every small credit union is a huge red-tape burden. Again, we have a government that is not listening, that is not paying attention to small businesses. This deals with one specific sector of the economy, credit unions, but it is another example of how the government is simply out of touch with the needs of the job creators in our economy.

Moving beyond that, I was to talk about two general points: deficit spending by the government in general and the issue of the employment insurance changes contained in this fiscal update.

The government's approach to deficit spending is, yes, to run deficits, but it is more than that. It is to undertake a policy of constant structural deficits. This is very different from the traditional arguments made for deficits. There are, I think, good arguments for running deficits in certain situations. The basis of that would be the Keynesian economic principle of counter-cyclical government spending, a government doing more spending during times of economic challenge to offset the pullback happening in the economy as a whole and then the government pulling back and running surpluses during times of economic prosperity.

The importance of this is that the government is providing that stimulus for economic activity during relatively difficult times but is still balancing its budget over the long term. It is still in a position, in the long run, to balance its budget. I think we should all accept that we have to balance the budget in the long term. We cannot constantly, over a sort of forever time horizon, spend more than we have. Eventually, the capacity to borrow will run out. There is nothing wrong with running deficits in certain situations, provided that we intend to balance the budget over the long term.

When we talk about stimulating the economy, the important thing is that it needs to be in times that are relatively less good. Of course, even during good times, there will be people who are struggling. There will be people without jobs. There will perhaps be a desire to increase growth. However, if the government always spends more than it has in good times as well as bad times, then eventually, it is going to run out.

The government talks about stimulus, but it is really abusing these arguments, because its position is not that the government can do counter-cyclical spending at certain times to stimulate the economy. Rather, its position, stated by the finance minister, is that we can just run deficits all the time. The finance minister responded to a question I asked earlier during committee of the whole about whether the government would ever balance the budget. He would not say yes to that very simple question.

If we look at what is happening in the economy, the government is constructing arguments that are entirely resistant to the evidence. If things are going well, Liberals will say it is an indication of the fact that they can spend more. When things are going poorly, they say that they need to spend more. Every situation, good or bad, every data point, in their minds, is proof that they need to constantly be spending more money. Of course, there are limits.

Although Canada has a relatively low federal debt-to-GDP ratio, our total government debt-to-GDP ratio, which includes what the Kathleen Wynne Liberals in Ontario are doing and other spending programs of provincial governments, is comparable to countries like the United States and the U.K. It is important that we look at the total debt-to-GDP ratio, because in Canada we have relatively more public services provided at the provincial level than we do federally. For the federal government to say that it has lots of room to run deficits just is not true, because it needs to look at the overall debt-to-GDP ratio.

We see in this fiscal update the government making promises to people, increasing spending, and announcing the indexing of the new child benefit program. The Liberals are just not dealing with real money, because they are making promises into the future that are not costed, and that, in the long run, they should know they will not have the capacity to do. I think it is wrong to promise people that the government is going to spend money on things it knows it does not have the capacity to. When it has this kind of policy, when it undertakes government spending and assumes that it can run deficits forever, what it leads to eventually are significant cuts. The benefit of running surpluses during relatively good times and stimulating deficits during relatively less good times is that the government is able to spend more during challenging times, whereas countries that have consistently spent more than they have find themselves during bad times also in a position where they are forced to cut spending before they go off the fiscal cliff. That is the situation of some countries in Europe. We know that this has happened. We do not want to see Canada go down this road.

Just to complete blowing a hole in this stimulus argument, if we look at government spending, it is not targeted or temporary stimulus spending. Liberals are instituting what they would like to propose as permanent new social spending. They are proposing spending that is not targeted to economic stimulus. It is permanent new promised spending, a promise they know, or should know, simply cannot be kept.

I will conclude with a few comments about employment insurance reforms. In the last government, we brought in some very sensible reforms for employment insurance. Under new rules we brought in, it was expected that individuals would be actively involved in a job search to receive benefits. That is a reasonable requirement. We worked to define suitable employment in a way that said that even if individuals could not find exactly the same job they had before, there should be a broader definition of suitable employment but also that the government should provide more help to people in terms of finding jobs. We instituted a stronger system of providing job information to people who were seeking jobs.

It is important that individuals be actively involved in a job search when they are on employment insurance, that employment insurance be a meaningful insurance system, and that it be designed to help people get back to work, not something that can be constantly relied on year after year. I think that is a sensible way of structuring the program. The government, in undoing those employment insurance reforms, is creating additional costs for small businesses as well as for individuals, because everyone has to pay into that EI fund.

Therefore, if we take away those reforms to encourage job search on the payout side of it, then we have to increase the burden on those paying into it. This has a real cost for the creation of jobs and for people who work in our country. I prefer a policy that makes it easier for people to get jobs, not one that cuts back on jobs.

This is the wrong direction for our country, and I will be voting against this.

Bill C-26—Notice of time allocation motion

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, I regret to inform the House that an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the second reading stage of Bill C-26, an act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

Budget Implementation Act, 2016, No. 2

[Sonia Sidhu, Liberal, Brampton South, ON]

Mr. Speaker, even though it is Bill C-26, it is related to the budget, so I will answer according to that.

[Sonia Sidhu, Liberal, Brampton South, ON]

Mr. Speaker, there are a lot of big expenses looming in the face of young people these days.

I am proud of the work our government has done to help kids with the repayment of student loans. That makes a real difference for students once they graduate. However, there is still significant work to be done to get young people saving for the future. It needs to be part of the system. They need to have that money going into a reliable, secure place, where it will be there for them once they need it.

Financial experts have been saying for years that financial literacy is important for young people. I would like to commend the Ontario government for making financial literacy part of the high school curriculum and congratulate the Ontario Young Liberals on their work in putting that forward.

Each year, fewer and fewer Canadians have workplace pensions to fall back on. The private sector needs to do its part to support a strong pension system as well.

Seniors receiving CPP put that money back into the economy and into the brands and businesses in their communities.

We all must do our part, public and private, to make Canada a prosperous place for everyone and make meaningful changes to the CPP that will allow Canadians to retire with more money in their pockets.

We have been talking about the baby boomers and the generational shift under way for decades. We always knew that this massive portion of the population would retire, and we knew that we would have to take action to make the system sustainable for them and their children too.

The bill addresses those on their way to retirement by doing more to ensure that they have dignity, security, and stability.

The more than one-quarter of Canadian families nearing retirement, or 1.1 million families, who are facing a drop in their standard of living will be able to retire in dignity as a result of this enhancement.

The revisions in Bill C-26 are designed to help Canadians in every step of their lives: grandparents, parents, and children.

The deal will boost how much Canadians get in their pension from one-quarter of their earnings now to fully one-third. To make sure that these changes are affordable, we will phase them in slowly over seven years, from 2019 to 2025, so that the impact is small and gradual.

When l was going door to door in Brampton South in the last election, I met many seniors. I met seniors who were concerned about themselves but more concerned about their families' futures. They wanted to know if their grandchildren would have the chance to go through life with the same security that was there for them.

That is why the bill is important to me. When we talk about evidence-based and long-term growth, I think of the effects for Canadians tomorrow and five years from now. In both these scenarios, Canadians will be better off.

At the core of our plan is investment. Investment in the future is what past generations did when they built transport corridors that moved countless goods and people every day. Investment in the future is what donors to universities and colleges have done for decades. It is about giving back so others can follow.

Investment in the future is what the government did in the post-war years after World War II in building a system that is envied around the world.

In Brampton, while most of my constituents were born in Canada, there are those of us who were not. We came to Canada with our eyes on the system of compassion and mutual support.

That is why investing in the Canada pension plan matters today more than ever. We cannot wait, as some of my colleagues across the aisle might suggest. If past generations had thought to wait and save their pennies instead of investing them in the Canada around us today, we would be less well off.

Every Canadian deserves a secure and dignified retirement after a lifetime of hard work. Through this enhancement, we have taken a powerful step to help make that happen.

This investment is in the people of Canada and the public system that makes us more equal and more united. That is why I will be voting for Bill C-26, and I encourage all my colleagues from all parties to do so as well.

[Ron Liepert, Conservative, Calgary Signal Hill, AB]

Mr. Speaker, on a point of order, I believe that we are on Bill C-29, not Bill C-26. The member is speaking on a bill that was before the House previously.

[Sonia Sidhu, Liberal, Brampton South, ON]

Mr. Speaker, I am pleased to rise today to speak about Bill C-26. In my speech, I intend to discuss how this bill is focused on the long term.

I would like to start by simply reminding the House of the stark difference in our approach. The previous government spent a decade seeing the provinces as hurdles or opponents. Negotiation was done one by one. It was negotiation through division. Our approach is different. It is collaborative.

Our Prime Minister and the cabinet of our government have been working with the provinces as partners. Earlier this year, Canada's finance ministers reached an historic agreement to make meaningful changes to the CPP. This is what a collaborative approach looks like.

First and foremost, we believe that every Canadian deserves a secure and dignified retirement after a lifetime of hard work. Today middle-class Canadians are working harder than ever, but many are worried that they will not put away enough money for retirement.

I think about my three kids, who are in their early twenties. They are all in school. They are hard-working and brilliant people. They did their homework, got good grades, and got into post-secondary education with few challenges because of their work ethic and thirst for knowledge. Even so, many of their generation and friends are in a tough place. They are not saving now, because they have to think about paying down their student debt, paying for car repairs, or saving for their first home, let alone the cost of weddings these days. There are a lot of big expenses—

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, this afternoon we will continue to debate the Conservative Party motion.

Tomorrow, we will resume debate on Bill C-26, on the Canada pension plan.

Next week, as the hon. member said, we will be working hard in our constituencies and attending Remembrance Day ceremonies on Friday to collectively stand in honour of all who have fallen in the service of Canada.

When we return on Monday, November 14, the House will then have the fifth day of second reading debate on Bill C-26, the CPP enhancement bill. On Tuesday, the House will also have the fifth day of second reading debate on Bill C-29, the second budget implementation bill.

On Wednesday, the House will consider Bill C-16, the gender identity bill, at report stage, and hopefully at third reading. On Thursday, the House will debate Bill C-25, the business framework bill, at second reading.

Budget Implementation Act, 2016, No. 2

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Mr. Speaker, it is a pleasure to rise on behalf of my constituents to talk about Bill C-29.

The first thing I note about Bill C-29, a second act to implement certain provisions of the budget tabled in Parliament, is that it is an omnibus bill. In terms of size, it is 230 pages of omnibus legislation. I remember well when the member for Beauséjour was the House leader for the Liberals and they were the third party in the House, how he used to rail against bills of this size. It did not matter what was in them; it was the fact they were omnibus bills that created so much angst.

The member for Winnipeg North made a career in the last Parliament out of railing against omnibus legislation. It was said to be dastardly thing for a government to choose to implement its budget via a budget implementation act. That is what is happening today. We are talking about an omnibus budget bill. I guess the principles and policies the Liberals had when they used to sit in the third party seats change a little when they cross over to the government side. Now they are a big fan of omnibus bills. That was the first thing I wanted to mention.

This bill is supposed to be the plan to implement the budget. The government clearly has no plan when it comes to budgeting. During the election campaign, Liberals promised there would be a $10 billion deficit that would be paid back within the mandate of a majority government. How long did it take them to abandon that promise? Was it 10 minutes?

I remember Prime Minister Stephen Harper saying that the Liberals' position was that everyone should trust that it would be a modest, little deficit. How right he was. We are going to hear today at four o'clock just how much more than a $10 billion deficit the government has blown in less than a year. The fiscal update will show that the government is, by a magnitude of at least three times, past its initial deficit target. It misled Canadians during the election and has blown through it.

What do Liberals have to show for it? I would argue they have nothing to show for it. There is no increased growth and there are zero net new jobs. The parliamentary budget officer has confirmed that there are zero net new jobs as a result of $30 billion or so of borrowed money being spent. This was supposed to stimulate the economy and take us to untold heights. The Liberals have done nothing they promised and have blown through their deficit target, so they have no budget plan. The plan is just to borrow more money and spend it. Canadians know that debt has to be repaid, that borrowed money has to be paid back. If my generation does not repay it, it will be our children and grandchildren who get this bill, because eventually it will come due.

One of my constituents, a small businessman, has certainly seen that the Liberal government is no friend of his. He told me the government is like a teenager who has one parent who provides him with a credit card with no limit on it, and that parent is very popular, but the other parent who hands the credit card bill to the teenager and says it is his to pay back is the less popular parent. Right now, the Liberals are playing the role of the sugar daddy who hands out the cash, but what Canadians will soon realize is that the bill will be paid by them. That is clearly what is happening.

What have the Liberals done in less than a year? They borrowed $30 billion, as I said, and they have also misled small businesses. All parties agreed that the small business tax rate would be lowered from 11% to 9%. How long did it take the Liberals to break that promise? It was broken in their first budget. They broke their promise to small businesses, and I think we know why.

During the election campaign, the Prime Minister made it clear that there were an awful lot of people who were using small businesses to avoid paying their fair share of taxes. That is what the Prime Minister said about the industry that creates the most jobs in this country. He said that small business was just a tax avoidance scheme. We found out during the election campaign that he has set up some of those companies himself to avoid paying a lot of taxes, so perhaps he knew what he spoke of. However, that is not what was promised to small businesses.

I spoke earlier this month in the House about Bill C-26, a bill dealing with CPP rates. Again, that would do nothing for seniors. It would do nothing for people approaching retirement. In fact, the finance minister has admitted that it would do nothing for anyone for more than 40 years. However, what it would do is reduce the incomes of Canadian families by up to $2,200. That $2,200 is taken from the paycheques of Canadians to go into a fund they likely will never be able to access. That is in addition to the $1,100 coming out of the pockets of small businesses who are paying their portion of that tax.

So they are increasing taxes on small businesses. They are also increasing taxes on Canadians through a carbon tax.

I was honoured to be given the role of critic for natural resources. Since the government has taken office, over 100,000 energy workers have lost their jobs. What do we see from the government? We see no jobs plan. We see no lifeline to families in the energy sector. Instead, we see them being thrown an anchor, the anchor of a carbon tax.

What would that do? The member for Oshawa talked about what it would do for manufacturing.

I will tell members what it would do for the energy sector. It would put an already crippled energy sector at an even greater disadvantage vis-à-vis the people we are trading with, the U.S., which has no intention of implementing a federal carbon tax any time soon. They are our major customer.

When we moved a motion at the natural resources committee to have the Liberal members tell us what analysis they have done to show what impact the carbon tax would have on the natural resource sector, they voted against it. We know why. It is because they have not done any economic analysis of that impact. They do not care. They do not care about those 100,000 family-supporting jobs that have been lost. We have seen they do not care about that sector because they continue to layer regulatory burden after regulatory burden upon a sector that is already suffering. When there are pipelines to be approved, they do not allow for evidence-based scientific policy to take place. They layer on an extra political layer in which the minister will make the final decision, in which the cabinet will make the final decision, in which red tape is layered upon an already burdensome process. That would do nothing to protect public safety. It would simply add to the regulatory burden.

The government is fond of saying how it has cut the taxes of middle-class Canadians. It is just not true.

The average income of people in my riding is under $40,000 a year. Guess how much they receive from the income tax cuts from the Liberal Party? Zero. They receive nothing. The most vulnerable, low-income Canadians got nothing from the Liberal tax cuts, while people like members of Parliament, who make up to $150,000 a year, get the most benefit one could possibly get out of that tax cut. The Liberals have done nothing for an average family in Chilliwack—Hope with that tax cut, and anything they have done for some families, they are going to tax back with the extra carbon tax and additional payroll taxes. Canadians are not better off.

They also cancelled things like the child fitness tax credit, the child arts tax credit, and tax credits for textbooks. They said that is because they do not like to complicate the Income Tax Act. They do not like those boutique tax credits, they said, that help families, that help moms and dads put kids in sports and in dance lessons. However, what they do like are boutique tax credits for talk show hosts for Canadian shows, or for someone who needs to take a first aid course. They are all for those tax cuts. It does not seem to matter, as long it's not a family, as long as it is not people supporting their children. We do not want to support people like that. However, if people are creators of content, then they need a tax break from the Government of Canada.

Their priorities are wrong. They are not looking after Canadian families. They are looking after special interests. We have certainly seen that over the last little while, with the revelations about their fundraising practices, in which they are meeting with the well-heeled insiders they regulate, who are giving them money for access. It is not the right way to go. This is not a budget plan, and we cannot support it.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Yes, my colleague is right, Madam Speaker. I thank him.

This year, it is going to cost an extra $3.4 billion and next year it will cost an extra $4.3 billion. What a farce, to put it mildly.

All of a sudden, these people realized that they forgot to index the program, and they are shocked. They forgot one small detail, however: if the program isn't indexed, people will have less money in their pockets than they did under the Conservative government. The worst part about it is that it was not even included in their platform.

I do not want to lecture anyone, but the facts speak for themselves. When managing their personal budgets, would any executives think that their groceries would cost the same in five years as they do now? No, and I do not think so either.

Are there any Canadians who believe that there is no indexing or inflation? No, there are not, aside from these fine people who are before us today. Their management approach is hard on the Canadian economy. It is us and our children who will have to pay for this bad management. Even though we are dealing with basics, the ABC's or one plus one equals two, the Liberals forgot to index.

Thank goodness for our Senate colleague, the hon. Larry Smith. I would like to pay tribute to him. I would add that he is a Conservative senator. This is a small detail, but I do not forget details. The senator asked the parliamentary budget officer some very specific questions and, as a result, last May the parliamentary budget officer showed that the Liberals had forgotten to index the program and that, if it were indexed, it would cost twice as much, which is no laughing matter.

When the parliamentary budget officer announced that the Liberals had forgotten to index the program, the government came up with an indexing measure on the fly to ensure that this program will cost $42.4 billion in total, and that number is from the report of the parliamentary budget officer. The Liberals only made a small mistake.

I know that I cannot pull out documents here. However, if I could, members would clearly see the inflationary curve that the government forgot about and which means that Canadians will have to pay tens of thousands of dollars more.

I have listened to the fine speeches by government members who have said that they are thinking of the children and families, that they want to help the poorest among us and do this in a balanced way. No, the Liberals completely forgot about indexation and inflation and, even worse, they are going to make our grandchildren pay for that. That is the irony of the situation.

The members over there gloat about their lofty principles and say they want to help families and children. Of course they want to help the children: they want them to pay the bill when it is their turn to work. That is neither responsible nor realistic. That is not the right approach in our opinion.

That is why when we were in power, when we were implementing these programs, we were also balancing the budget. That is the realistic and responsible way to effect change.

About their tax changes, those guys make such a big deal about leaving more money in people's pockets and cutting taxes. Hang on just a second. Once again, thanks to the hon. Larry Smith, the parliamentary budget officer meticulously analyzed the new tax measures. On page 1, he says, “PBO estimates this amount to be $1.8 billion in 2016”. That is the additional amount the government has to pay. In other words, a measure that was supposed to be revenue-neutral is going to cost $1.8 billion.

They talk about how we need to think of the poorest members of society, but this does not make sense. The new tax brackets mean that there will be no impact whatsoever for people earning $45,000 or less. I would like to remind the House that the average salary in this country is $32,000, so this will change nothing for more than half of all Canadians.

Who is really going to benefit from the new Liberal tax changes? Those who earn between $140,000 and $199,999. I will acknowledge my conflict of interest up front, because I, like all members of the House of Commons, am in that tax bracket.

Where is the supposed sense of fairness and generosity towards the most vulnerable among us? It does not exist in this new change. Sixty-five per cent of Canadians will see no change. It is going to cost Canadians $1.8 billion more, and those who will benefit the most are those who earn between $140,000 and $200,000. It completely flies in the face of what they are claiming. The facts are there, and it is not the nasty Conservatives who are saying this, but the parliamentary budget officer, who was responding to a question from Senator Larry Smith. It is important to know this, and to inform and remind Canadians.

We already had an opportunity to talk about the changes the government is proposing to the Canada pension plan through Bill C-26. Basically, the reality is that the government wants to increase taxes on workers from 9.9% to 11.9%, which is a 2% increase. In concrete terms, this means $1,000 less in the pockets of each Canadian worker, and for businesses, $1,000 more that every company has to pay for each employee. Overall, it means $2,000 for every worker.

Every Canadian who gets up in the morning and goes to work will have $1,000 less, and it is going to take 40 years before it produces any results.

What is the actual impact of this measure on the economy? If we look at employment, GDP, private investment, disposable income, and private savings, all these economic indicators of real growth have been downgraded. At committee hearings, I posed questions to representatives of the Canadian Gas Association, Canadian Manufacturers & Exporters, the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, and even the C.D. Howe Institute. They all said that the proposed changes to the Canada pension plan would negatively impact the Canadian economy and that it could take at least 40 years before there would even be a semblance of balance. That is bad for the economy and it is not the way to go.

We moved forward with our proposal and created the TFSA, a savings plan. We believe that instead of picking people's pockets, the government should give people the tools they need so they can choose how to best save. That approach makes good economic sense. That is great vision. There is a difference between our visions: the Liberal government takes money from people's pockets, whereas the Conservative government lets people choose, and provides the tools so that both businesses and individuals can contribute to economic growth.

The government has totally lost control of public spending. I could be here until Monday talking about all of the mistakes it has made, but I will have to stop because I only have about three or four minutes left. Day after day, this government keeps getting caught with its hand in the cookie jar because of its out-of-control spending. Let us remember the minister who paid $7,000 for a photographer in Paris. I have jokingly said, and I will say it again this morning, that she could have followed the Prime Minister's lead when it comes to photography since he is quite adept at taking selfies and his method does not cost a cent.

Members will also recall that the Minister of Health gave her Liberal friend a contract to drive her around in a limousine. When she was caught red-handed, her friend changed the name of the company to indicate that it provided car services rather than limousine services. The minister apologized and promised to repay the costs, but she should not have to be caught to acknowledge that she made a poor decision and that she should repay the money. Members must make wise choices at all times. I could go on like this for three days, but the point that I am trying to make is that the Liberals have lost control of the public purse. They have also completely lost control of public spending. They were elected on a platform that included a $10-billion deficit, but here we are saddled with a $34-billion deficit, and the Prime Minister is saying that he does not know what is going to happen. It makes no sense.

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, I have to agree with the opposition House leader. It has been quite delightful to work together, and I hope we can continue the relationship we have created so we can be productive in this place for Canadians.

This afternoon we will continue debate on the Conservative motion. Tomorrow, we will begin second reading of Bill C-26 respecting the Canada pension plan.

We will call the bill on Monday and, hopefully, conclude debate on Tuesday. On Wednesday, we will commence debate on Bill C-25, the business framework legislation. Thursday shall be an allotted day.

Finally, I would like to thank all hon. member for the progress on legislation so far this week.