Bill C-86 (Historical)

Budget Implementation Act, 2018, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Part 1 implements certain income tax and related measures by
(a) introducing rules intended to provide greater certainty with respect to various tax consequences arising from certain foreign divisive reorganizations;
(b) ensuring that the existing cross-border anti-surplus stripping rule cannot be circumvented through transactions involving the use of partnerships or trusts;
(c) introducing rules to prevent misuse of the foreign accrual property income regime through the use of tracking interests involving foreign affiliates;
(d) ensuring consistency between the trading or dealing in indebtedness rules and the investment business rules within the foreign accrual property income regime;
(e) ensuring that the at-risk rules apply appropriately at each level of a tiered partnership structure;
(f) providing that the Minister of Public Safety and Emergency Preparedness can determine international operational missions for the purpose of the deduction available for income earned by members of the Canadian Forces or police officers on such missions;
(g) amending the synthetic equity arrangement rules and securities lending arrangement rules to prevent the artificial generation of losses through the use of equity-based financial instruments;
(h) ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada Child Benefit;
(i) ensuring that an individual who is eligible to receive the Canada Workers Benefit can receive the benefit without having to claim it;
(j) introducing a refundable tax credit for the purposes of the climate action incentive;
(k) providing allocation rules for losses applied against Part IV taxes;
(l) preventing the creation of artificial losses on shares held as mark-to-market property by financial institutions;
(m) revising the rules relating to the non-partisan political activities of charities;
(n) ensuring that a taxpayer is subject to a three-year extended reassessment period in respect of any income, loss or other amount arising in connection with a foreign affiliate of the taxpayer;
(o) providing the Canada Revenue Agency with an extended reassessment period of an additional three years, to the extent that the reassessment relates to the adjustment of a loss carryback for transactions involving a taxpayer and non-resident non-arm’s length persons;
(p) extending the reassessment period of a taxpayer by the period of time during which a requirement for information or compliance order is contested;
(q) requiring that information returns in respect of a taxpayer’s foreign affiliates be filed within 10 months after the end of the taxpayer’s taxation year;
(r) enabling the disclosure of taxpayer and other confidential tax information to Canada’s bilateral mutual legal assistance treaty partners for the purposes of non-tax criminal investigations and prosecutions of certain serious crimes; and
(s) providing a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan.
Part 1 also amends the Mutual Legal Assistance in Criminal Matters Act to, among other things, define the term “agreement” as applying, among other things, to tax information exchange agreements and tax treaties to which Canada is a party, and provide for orders to produce financial information for the purposes of investigation and prosecution of certain offences set out in subsection 462.‍48(1.‍1) of the Criminal Code. The enactment also amends paragraph 462.‍48(2)‍(c) of the Criminal Code to provide that information may also be gathered under Part IX of the Excise Tax Act and under the Excise Act, 2001.
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) replacing the requirement that GST/HST be collected on a sale of carbon emission allowances with a requirement that the purchaser self-assess that GST/HST;
(b) extending the assessment period for group registered education savings plan trusts that make a special relieving election in respect of their past HST liability;
(c)  introducing GST/HST rules in respect of investment limited partnerships;
(d) clarifying the intended tax policy of excluding books that are sold by a public service body from the GST/HST rebate for printed books;
(e) introducing amendments similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested; and
(f)  introducing amendments similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes.
Part 3 implements certain excise measures by
(a) broadening the refund regime in respect of excise tax on diesel fuel to allow a vendor to apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity, if certain conditions are met;
(b) introducing an anti-avoidance excise measure relating to the taxation of cannabis in respect of the rules establishing the value of a cannabis product on which an ad valorem duty is calculated;
(c)  introducing amendments to the Air Travellers Security Charge Act and the Excise Act, 2001 that are similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested;
(d) introducing amendments to the Excise Act, 2001 that are similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes; and
(e) making housekeeping amendments to the Excise Act, 2001 in order to ensure consistency between the English and French version of the legislation.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Customs Tariff in order to simplify it and reduce the administrative burden for Canadian businesses and the Government of Canada by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also clarify existing tariff provisions and make other technical amendments.
Division 2 of Part 4 amends the Canada Pension Plan to modify the calculation of the amount to be attributed for a year in which a contributor is a family allowance recipient and their first or second additional contributory period begins or ends.
Subdivision A of Division 3 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,
(a) establish thresholds below which the acquisition of control of certain entities, or the acquisition or increase of a substantial investment in them, does not require the approval of the Superintendent of Financial Institutions;
(b) allow financial institutions to invest in the Canadian business growth fund; and
(c) ensure that customers can provide consent electronically to receive electronic documents.
It also corrects a reference to the Insurance Companies Act in the Budget Implementation Act, 2018, No. 1.
Subdivision B of Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,
(a) make technical amendments to clarify the method of calculating insured deposits, to remove outdated references, to repeal certain provisions not yet in force and to clarify that withdrawals made following the amalgamation of two or more member institutions or the continuance as a federal credit union will be considered to be made from pre-existing deposits and that the separation of accounts following the amalgamation is limited to a period of two years;
(b) exclude amounts borrowed by the Canada Deposit Insurance Corporation under paragraph 60.‍2(2)‍(c) of the Financial Administration Act from the calculation of the Corporation’s total principal indebtedness; and
(c) clarify that the liquidator of a member institution of the Canada Deposit Insurance Corporation must not apply the law of set-off or compensation to a claim related to insured deposits.
It also repeals two sections of the Financial System Review Act.
Subdivision C of Division 3 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, clarify that providing legally privileged information to the Superintendent of Financial Institutions does not constitute a waiver of the privilege.
Division 4 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to remove the right of persons to decide not to proceed further with importing or exporting currency or monetary instruments that are required to be reported.
Division 5 of Part 4 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act to, among other things, allow for the application, within the offshore area, of the provincial greenhouse gas pricing regime and to confer powers and impose duties and functions on the Canada–Newfoundland and Labrador Offshore Petroleum Board for the application of that regime. It also amends the Greenhouse Gas Pollution Pricing Act to provide that the provincial regime does not apply if the offshore area is mentioned in Part 2 of Schedule 1 to that Act. Finally, it amends the Offshore Health and Safety Act to postpone the repeal of certain regulations.
Division 6 of Part 4 amends the Canada Business Corporations Act to set out criteria for identifying individuals with significant control over a corporation. The Division also sets out a requirement for a corporation that meets certain criteria to keep a register of individuals with significant control and requirements respecting the information to be recorded in it. Finally, the Division includes applicable offences and punishments.
Subdivision A of Division 7 of Part 4 amends the Patent Act in order to
(a) provide a regulation-making authority for the establishment of requirements for written demands relating to patents;
(b) specify that an act committed for the purpose of experimentation relating to the subject matter of a patent is not an infringement of the patent and that licencing commitments that bind the owner of a standard-essential patent or the holder of a certificate of supplementary protection that sets out such a patent bind any subsequent owners or holders;
(c) expand the rights of a person in respect of a claim in a patent who meets the requirements to be considered a prior user;
(d) ensure that patent prosecution histories may be admissible into evidence for certain purposes;
(e) clarify when a late fee must be paid in respect of divisional applications as well as when the confidentiality period begins in the case where a request for priority is deemed never to have been made.
Subdivision B of Division 7 of Part 4 amends the Trade-marks Act to, among other things,
(a) add bad faith as a ground of opposition to the registration of a trade-mark and for the invalidation of a trade-mark registration;
(b) prevent the owner of a registered trade-mark from obtaining relief for acts done contrary to section 19, 20 or 22 of that Act during the first three years after the trade-mark is registered unless the trade-mark was in use in Canada during that period or special circumstances exist that excuse the absence of use;
(c) clarify that the prohibitions in subparagraph 9(1)‍(n)‍(iii) and section 11 of that Act do not apply with respect to a badge, crest, emblem or mark that was the subject of a public notice of adoption and use as an official mark if the entity that made the request for the public notice is not a public authority or no longer exists; and
(d) modernize the conduct of various proceedings before the Registrar of Trade-marks, including by providing the Registrar with additional powers in such proceedings.
It also makes certain housekeeping amendments to provisions of the Trade-marks Act that are enacted by the Economic Action Plan 2014 Act, No. 1 and the Combating Counterfeit Products Act.
Subdivision C of Division 7 of Part 4 amends the Copyright Act in order to specify that certain information is not permitted to be included within a notice under the notice and notice regime and to provide for a regulation-making power to prohibit further types of information from being included within such a notice.
Subdivision D of Division 7 of Part 4 enacts the College of Patent Agents and Trade-mark Agents Act. That Act establishes the College of Patent Agents and Trade-mark Agents, which is to be responsible for the regulation of patent agents and trade-mark agents in the public interest. That Act, among other things,
(a) requires that individuals obtain a licence in order to act as patent agents or trade-mark agents and that licensees comply with a code of professional conduct;
(b) authorizes the College’s Investigations Committee to receive complaints and conduct investigations into whether a licensee has committed professional misconduct or was incompetent;
(c) authorizes the College’s Discipline Committee to impose disciplinary measures if it decides that a licensee has committed professional misconduct or was incompetent; and
(d) creates new offences of claiming to be a patent agent or trade-mark agent and unauthorized representation before the Patent Office or the Office of the Registrar of Trade-marks.
That Subdivision also makes consequential amendments to certain Acts.
Subdivision E of Division 7 of Part 4 amends the Bankruptcy and Insolvency Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of in an insolvency proceeding or when the agreement relating to such property rights is disclaimed or resiliated in such a proceeding. It also amends the Companies’ Creditors Arrangement Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of.
Subdivision F of Division 7 of Part 4 amends the Access to Information Act and the Privacy Act to provide that the head of a government institution may refuse to disclose, under either of those Acts, information that is subject to the privilege set out in section 16.‍1 of the Patent Act or section 51.‍13 of the Trade-marks Act. It makes a related amendment to the Pest Control Products Act.
Subdivision G of Division 7 of Part 4 amends the National Research Council Act to clarify that the National Research Council of Canada has the authority to dispose of all forms of intellectual property that it develops, including future rights to such property and to provide the Council with the authority to dispose of real, personal, movable and immovable property, complementing the current provision in the Act that allows it to acquire such property.
Subdivision H of Division 7 of Part 4 amends the Copyright Act in order to modernize the legislative framework relating to the Copyright Board so as to improve the timeliness and clarity of its proceedings and decision-making processes. More specifically, it repeals spent provisions and
(a) codifies the Board’s mandate and establishes decision-making criteria;
(b) establishes new timelines in respect of Board matters, including earlier filing dates for proposed tariffs and longer effective periods for approved tariffs, and empowers the Governor in Council to make additional timelines by regulation;
(c) formalizes case management of Board proceedings;
(d) reduces the number of matters that must be considered by the Board;
(e) streamlines procedural steps across different tariff contexts, maintaining differences between them only where necessary;
(f) amends relevant enforcement provisions, including the availability of statutory damages for certain parties in respect of Board-set royalty rates and enforcement of Board-set terms and conditions; and
(g) modernizes existing language and structure for greater clarity and consistency.
Division 8 of Part 4 amends the Employment Insurance Act to, among other things, increase the maximum number of weeks for which parental benefits may be paid if these benefits are divided between claimants. It also amends the Canada Labour Code to, among other things, increase the aggregate amount of leave that may be taken by employees under sections 206.‍1 and 206.‍2 if that leave is divided between employees.
Division 9 of Part 4 enacts the Canadian Gender Budgeting Act in order to state the Government’s policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.
Division 10 of Part 4 amends the Bank Act to strengthen provisions that apply to a bank or an authorized foreign bank in relation to the protection of customers and the public. It implements enhancements in the areas of corporate governance, responsible business conduct, disclosure and transparency, and redress. It also amends the Financial Consumer Agency of Canada Act to strengthen the mandate of the Financial Consumer Agency of Canada and grant additional powers to that Agency.
Division 11 of Part 4 amends the First Nations Land Management Act to give effect to amendments to the Framework Agreement on First Nation Land Management respecting, among other things, procedures for obtaining community approval of a land code, the lands to which a land code may apply, the addition of lands to First Nation land by order of the Minister and the transfer of capital moneys.
Division 12 of Part 4 amends the First Nations Fiscal Management Act to, among other things,
(a) enable more Aboriginal organizations and First Nations to benefit from the provisions of the Act in order to strengthen their financial management systems and give them access to long-term financing;
(b) address certain administrative issues identified by the bodies established under the Act; and
(c) provide another option for First Nations to access moneys held by Her Majesty for their use and benefit.
Division 13 of Part 4 amends the Export and Import Permits Act to give the Minister of Foreign Affairs the authority to issue an import allocation for goods that are included on the Import Control List under subsection 5(6) of that Act.
Division 14 of Part 4 enacts the Pay Equity Act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new Act requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan within set time frames so as to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed is of equal value. The new Act provides for the powers, duties and functions of a Pay Equity Commissioner, which include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that Act. The new Act also requires the Pay Equity Commissioner to report annually to Parliament on the administration and enforcement of the new Act.
Division 14 also amends the Parliamentary Employment and Staff Relations Act to provide for the application of the Pay Equity Act to parliamentary employers with certain adaptations and without limiting the powers, privileges and immunities of the Senate, the House of Commons and the members of those Houses.
It also makes the Minister of Labour responsible for the administration of the Federal Contractors Program for Pay Equity.
Finally, it makes related and consequential amendments to certain Acts and repeals the section of the Budget Implementation Act, 2009 that enacts the Public Sector Equitable Compensation Act.
Subdivision A of Division 15 of Part 4 amends the Canada Labour Code to, among other things,
(a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment;
(b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay;
(c) prohibit differences in rate of wages based on the employment status of employees;
(d) address continuity of employment issues when a work, undertaking or business becomes federally regulated or in cases of contract retendering; and
(e) update group and individual termination provisions by increasing the minimum notice of termination.
Subdivision B of Division 15 of Part 4 amends the Canada Labour Code to allow the Minister of Labour to designate a Head of Compliance and Enforcement who will exercise most of the powers and perform most of the duties and functions that are related to the administration and enforcement of Parts II, III and IV of the Code.
Division 16 of Part 4 amends the Wage Earner Protection Program Act to, among other things, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act and create additional requirements related to Her Majesty in right of Canada’s right of subrogation in respect of payments made under the Act.
Division 17 of Part 4 amends the Bretton Woods and Related Agreements Act, the European Bank for Reconstruction and Development Agreement Act and the Official Development Assistance Accountability Act to harmonize the periods within which the reports under those Acts must be laid before Parliament in order to better communicate Canada’s international development efforts. It also repeals the definition of “official development assistance” in the Official Development Assistance Accountability Act and confers the power to define this expression by regulation.
Division 17 also enacts the International Financial Assistance Act, which provides the Minister of Foreign Affairs and the Minister for International Development with powers, duties and functions to support the delivery of a sovereign loans program, an international assistance innovation program and a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions.
Division 18 of Part 4 enacts the Department for Women and Gender Equality Act which, among other things, establishes the Department for Women and Gender Equality to assist the Minister responsible for that department in exercising or performing the Minister’s powers, duties and functions that extend to and include all matters relating to women and gender equality, including the advancement of equality in respect of sex, sexual orientation, or gender identity or expression and the promotion of a greater understanding of the intersection of sex and gender with other identity factors. It also contains transitional provisions. Finally, Division 18 makes consequential amendments to other Acts.
Division 19 of Part 4 enacts the Addition of Lands to Reserves and Reserve Creation Act which authorizes a Minister, designated by the Governor in Council, to set apart lands as reserves for the use and benefit of First Nations. The Division also repeals Part 2 of the Manitoba Claim Settlements Implementation Act and the Claim Settlements (Alberta and Saskatchewan) Implementation Act.
Division 20 of Part 4 amends section 715.‍42 of the Criminal Code to require the publication of any decision not to publish a remediation agreement or order related to that agreement and of any decision related to the review of such a decision, to specify that the court may make the first decision subject to a condition, including one related to the duration of non-publication, and to allow anyone to request a review of that decision.
Division 21 of Part 4 enacts the Poverty Reduction Act, which sets out two targets for poverty reduction in Canada.
Division 22 of Part 4 amends the Canada Shipping Act, 2001 to, among other things,
(a) authorize the Governor in Council to make regulations respecting the protection of the marine environment from the impacts of navigation and shipping activities;
(b) authorize the Minister of Transport to
(i) make an interim order to mitigate risks to marine safety or to the marine environment, and
(ii) exempt any person or vessel from the application of any provision of that Act or the regulations if doing so would allow the undertaking of research and development that may enhance marine safety or environmental protection;
(c) increase the maximum amount of an administrative penalty that the Governor in Council may fix by regulation;
(d) authorize the Minister of Fisheries and Oceans, pollution response officers and accompanying persons to enter private property in the case of a discharge of oil from a vessel or oil handling facility; and
(e) double the administration monetary penalties for certain violations.
Division 23 of Part 4 amends the Marine Liability Act to modernize the Ship-source Oil Pollution Fund, including, among other things,
(a) removing the Fund’s per-occurrence limit of liability;
(b) in the event that the Fund is depleted, authorizing the temporary transfer to the Fund of funds from the Consolidated Revenue Fund;
(c) modernizing the Fund’s levy so that the Fund is replenished by receivers and exporters of oil;
(d) ensuring that the Fund’s liability for claims for economic losses caused by oil pollution aligns with international conventions;
(e) providing that the Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of preventive measures when the occurrence for which those costs and expenses were incurred has not yet created a grave and imminent threat of causing oil pollution damage;
(f) authorizing the provision of up-front emergency funding out of the Fund to the Minister of Fisheries and Oceans for significant oil pollution incidents;
(g) creating an expedited, simplified process for small claims to the Fund; and
(h) providing for administrative monetary penalties for contraventions of specified or designated provisions under that Act.

Budget Implementation Act, 2018 No. 2

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, they can recalculate the debt any way they want, but when the country is in the hole, we are in the hole, and new taxes are not going to dig us out of it.

Getting back to Christopher, he calls five times, talks to five different people, gets five different answers to his questions, and my office has a dozen of those child benefit horror stories.

Also, this omnibus budget is the wrong place to remove the responsibility of the Minister of National Defence for determining the compensation of members of the Canadian Forces who participate in operational missions internationally. This is a dishonest way to cut the pay of soldiers doing the most dangerous tasks. The Minister of National Defence should be ashamed that he allowed this to happen. The Minister dropped the ball when the issue of danger pay for soldiers was raised previously. However, once all the facts about his role in the Admiral Norman affair are made public, the member for Vancouver South will not be minister much longer anyway.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, the member talked about the Conservatives caring about a clean environment and low taxes. I got an email from Mark Bottomley from Lasqueti Island, where he has spent time cleaning up styrofoam and plastic from our beaches. He said that “I have decided that cleaning up the ocean is one of the most important things I can do in this time when I am overwhelmed by the degradation of the natural world.”

Of course, we owe Mark, and Canadians like Mark who are selfless and cleaning up our beaches, a ton of gratitude. However, we know that the cost is significant to our environment, the shellfish industry and to the salmon ingesting plastics. We know that in this 850-page omnibus bill and its 5,000 clauses, there is no funding to back up the Liberal government's ocean plastic charter, and no resources to help people like Mark.

Could the member speak about the resources we need and how she could fund those resources to help volunteers and good Canadians like Mark and coastal people from coast to coast to coast to help deal with this important problem?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, my colleague raises a very important point.

We should be taking the garbage out of our lakes and rivers and not putting it there in the first place. Take Montreal with the billions of gallons of raw sewage it has put right in there. That is pollution. It is not carbon dioxide.

Real pollution, like my colleague described, is blue algae. We have it in the Ottawa River, and now maybe the Minister of Environment will pay attention because it is also in the Rideau Canal right down her alley. However, we are suffering from this blue-green algae all around. That is pollution. It is right in front of us and it is affecting health as well as the economy.

I want to go back to the Minister of National Defence, the temporary one, because the responsibility for Canadian women and men in the Canadian Forces should not be parcelled out to another department just because the current minister is not up to the job.

Bill C-86 is a disaster and tax-weary Canadians look forward to a change in government.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, it is a great pleasure to rise today to speak on Bill C-86, which implements into legislation a number of provisions that were laid out in budget 2018.

Today, I will be splitting my time with my hon. colleague and friend from Saint Boniface—Saint Vital.

When I speak to this bill, I would like to focus my thoughts on the hard-working middle-class families in my riding of Vaughan—Woodbridge, who, like Canadians from coast to coast to coast, know that our government is working for them to build a stronger economy and a healthier environment, not only for today but also for generations to come to ensure that our children, much like my children, will have a prosperous future and confidence knowing that our government made the right decisions for their future.

I also wish to salute the entrepreneurs in the city of Vaughan, who run over 12,000 small and medium enterprises. They know they have a strong advocate in me as their MP and in our government to ensure they have the tools to compete and succeed both domestically and globally.

Our government is committed to building a strong middle class and helping those working hard to join it. We know the results to date and are very proud of our record: a record low unemployment rate; over 500,000 or 600,000 new jobs created in the last three years, the majority of which are full time; and, amazingly, over 500,000 job vacancies in Canada. A majority of the jobs that have been created in this great country have been from the private sector, another thing we should be proud of.

There are many elements in Bill C-86 that I could speak to, everything from the pay equity act to the Canadian gender budgeting act to the wage earner protection program to the enactment of a department for women and gender equality act, which, as a father of two young daughters, I am very proud of. It would establish a department for women and gender equality to assist the minister in ensuring that we as a society and a government advance equality with respect to sex and sexual orientation. There are even amendments to the Bank Act to strengthen provisions that apply to a bank in relation to the protection of customers and the public. Canadians expect and deserve the strongest consumer protection standards when dealing with their financial institutions and we will deliver on that.

However, I wish to focus my time this afternoon primarily on one aspect of Bill C-86, which for me represents our government's commitment to building a more prosperous country and that would ensure that all Canadians benefit from economic growth and a more inclusive and fair society.

Division 21 of part 4 of Bill C-86 enacts the poverty reduction act, which sets out for the first time in our country's history targets for poverty reduction in Canada from coast to coast to coast. The poverty reduction targets our government has put forward are ambitious and realistic, and are lifting and will lift hundreds of thousands of Canadians out of poverty from coast to coast to coast. Our government aspires to achieve a poverty reduction target of 20% below the poverty level in 2015 by 2020, and 50% below by 2030. These targets are not just numbers, because behind them are the stories of hard-working Canadians from all walks of life and all parts of this great country. Canadians are ambitious and steadfast. They expect nothing less from their government. When we look at the measures behind the poverty reduction act we can not only be proud of the work we have done as a government but, more importantly, also of the work we have done as a country.

The pillars of our poverty reduction strategy are based on the following: dignity to lift Canadians out of poverty by ensuring that basic needs are met; opportunity and inclusion to help Canadians join the middle class by promoting full participation in society and equality of opportunity; and resilience and security to support the middle class by protecting Canadians from falling into poverty.

How do we achieve these targets? Let me list the measures that our government has put in place: the transformational Canada child benefit; a 10% increase in the guaranteed income supplement; the Canada workers benefit; and the profound national housing strategy, a $40 billion plan over 10 years, that will see housing needs reduced or eliminated for over half a million Canadians across this country. In my riding of Vaughan—Woodbridge, we will see more than 150 units of affordable housing built in 2019.

Moreover, investments in public transit under the PTIF 1 and now PTIF 2 will deliver sustained secure funding for public transit across Canada.

There is also the Canada workers benefit, which in budget 2018 provided a tax benefit that will put more money in the pockets of low-income Canadians. In fact, it is estimated that over 70,000 Canadians will be raised out of poverty, and over two million Canadians will receive assistance, from the CWB. Someone making $15,000 a year will receive $500 more from the CWB in 2019 than in 2018.

In Bill C-86, our government will enact changes that will ensure that an individual who is eligible to receive the Canada workers benefit can receive the benefit without having to claim it. Enrolment will be automatic. No Canadian will be left behind by our government, and the automatic enrolment mechanism that we have included in Bill C-86 is one further step to ensure this.

In achieving our poverty reduction targets, we also need to consider the transformational social program that we introduced, the Canada child benefit. We are delivering it to families who need it, not millionaires but hard-working, middle-class families across this country. In my riding alone, it equates to about $5 million a month, helping over 17,000 children and 9,000 families, with an average payment of over $500. That is real change that is working for Canadians from coast to coast to coast. That is real change that is benefiting middle-class families from coast to coast to coast.

We also indexed the CCB two years ahead of schedule, which will mean hundreds of extra dollars for families to help them pay for their kids' sports activities, to save for their education or buy clothes for the upcoming winter. It is estimated that the CCB will lift nearly 300,000 children out of poverty.

For our most vulnerable seniors, our government has raised the guaranteed income supplement by 10%. Promise made; promise kept. In my riding of Vaughan—Woodbridge, over 2,000 seniors received, on average, over $800 extra per annum. That is real change, helping real Canadians, our most vulnerable seniors. Furthermore, we came to an agreement on the CPP, the Canada pension plan. We enhanced and strengthened it for future generations.

There are other measures that we have instituted, but I would like to talk briefly in my remaining time about two measures in Bill C-86. One deals with the Canada Labour Code. For many of us who follow labour relations, there was an element in labour relations dealing with contract flipping or contract re-tendering. It was one of these things that was really unfair to the middle class, unfair to hard-working workers. We have addressed that.

It is contained in division 15 of part 4 of this bill. Our government will address continuity of employment issues when a work, undertaking or business becomes federally regulated, or in case of contract re-tendering. This is important, as there are instances where employees obtain a new employer through a contract tendering process, and then face much lower wages for exactly the same job.

Anyone who follows what happened at the airport in Toronto knows that this happens to many workers there, where they will be employed by an employer, making $20 an hour, and a contract re-tendering will come up and they will have to go to a new employer who imposes a much lower wage rate. It is unfair. We have addressed it. The legislation is in line with that in other jurisdictions, including the U.K. and Australia.

I will not read the pertinent section of the bill, but I encourage my colleagues from all parties to do so. It is groundbreaking, and it will ensure that we help all middle-class Canadians, all hard-working Canadians, including those workers who face a contract re-tendering.

In Bill C-86 and prior budgets, we have also addressed the issue of tax fairness and tax avoidance. Our government has invested approximately $1 billion in the Canada Revenue Agency. This morning there was an article in one of our national newspapers applauding our government for taking the concrete measures that are in Bill C-86, when looking at the issues of tax fairness and tax avoidance. We have a prosperous economy, Canadians are working at record levels, and we have the highest labour force participation rate for women in our country's history, but we must ensure that all individuals and organizations pay their fair share, including large corporations and wealthier Canadians.

We are preventing banks from creating artificial losses. We are enhancing tax reporting requirements for trust funds. We are strengthening rules for limited partnerships. We are cracking down on tax-free corporate distributions. We are also increasing ownership transparency.

It has been a pleasure to speak on Bill C-86. There are a number of great measures in this budget implementation act. I did not even touch on the pay equity bill, which will be transformational for millions of folks in this country. It will reduce the gap between what men and women are paid, which we must do. It is the right thing to do. It is the fair thing to do. It is the thing to do for my two daughters, who are at school today, for their futures. I am proud of our government that has acted on so many fronts.

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, I share the member's interest in pay equity. However, I would ask him to comment on the very unusual fact that the budget implementation bill contains a whole range of provisions unrelated to the budget in what the Liberals used to relish calling an omnibus bill. In fact, the deputy House leader of the Liberal Party used to call these types of bills an assault on democracy. Now their omnibus bills are larger and more comprehensive and complex than ever before in Canadian history.

Beyond some of the elements of the budget and budget implementation, is he uncomfortable with the fact that Liberals ran for office, saying they would not have such omnibus bills and now seem to relish introducing them?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, when I knock on doors in my riding, the issues residents are talking about are having a good future for their children, having good jobs for themselves, being able to spend time with their families and ensuring we are doing the right things for the economy and the environment. Whether it is our record-low unemployment or climate change, which the hon. member and his party are completely ignoring, which is unfortunate, we are doing the right things for Canadians. We are doing the rights things for middle-class Canadians and those working very hard to join it.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, I know my friend is originally from the north coast of British Columbia, so he will understand this issue.

As he knows, those of us on the west coast are all very concerned about the northern and southern resident killer whales. Right now, through the Species at Risk Act, the government is going through a 180-day process to identify critical habitat. If the government were really serious about helping identify critical habitat for our southern and northern resident killer whales, it would be investing money in restoration for our salmon. The government cites the $1.5 billion for the oceans protection plan, yet through the coastal restoration fund, the Somass River has seen nothing, Clayoquot has seen nothing. Our hatcheries have not had an increase in 28 years. This is an urgent situation.

While the process is proceeding, if Liberals wanted to build credibility with coastal British Columbians, especially the people in the District of Ucluelet who rely on our fishing industry, they would be investing money right now in that habitat, not just for killer whales but for the communities and the health of our fish. This could be a solution for all of us.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, the member is correct. I grew up in the riding of Skeena—Bulkley Valley, which was once held by the Liberal Party of Canada. Hopefully it again will be held by the Liberal Party of Canada.

I worked in a cannery growing up and cleaned all of the different types of salmon, including Chinook, sockeye and so forth. We want a robust fishing industry from coast to coast to coast. The reality is that many of the canneries in the town of Prince Rupert where I grew up are no longer there.

The fishing industry has changed, unfortunately. A lot of those canneries have shut down. I worked there, my mother worked there and my five aunts worked at canneries along the north coast. I am proud of my middle-class background, I am proud of the work my mom did to pay for our schooling and education, spending 12 to 14 hours a day, on her feet, cleaning fish, as did my aunts. They are hard-working Canadians.

I thank the hon. member for pointing out where I grew up. I am very proud of my background, being a working-class person and my parents being working-class union members.

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

Madam Speaker, I appreciate working with my friend on the Canada-Holy See Parliamentary Friendship Group.

He talked about poverty. Fighting poverty in our country is very important. He talked about a bill that legislates aspirations. I will confess that I do not think that legislating aspirations is that big a step forward. Could the government not have done more in moving forward with policy that would combat poverty rather than legislating aspirations?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, in light of all of the measures we put in place in the last three years, the Canada child benefit, the Canada workers benefit, a 10% increase in the guaranteed income supplement, a tax cut for nine million Canadians, a national housing strategy, when we wrap them up, those are great measures. In three years we have done more than what the Conservatives did in 10 years when they were governing, and we need to be proud of that.

Putting all of those measures together, in tandem, constitutes a national poverty reduction strategy. We are going to hit our targets. We have set our goals. Like we have done in the past, a promise made, promise kept, and we will do that with our national poverty reduction strategy.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

Budget Implementation Act, 2018, No. 2

[Dan Vandal, Liberal, Parliamentary Secretary to the Minister of Indigenous Services]

Mr. Speaker, I welcome this opportunity to participate in today's debate. I want to begin by acknowledging that we are gathered on traditional Algonquin territory.

Our government is committed to renewing the relationship with indigenous peoples based on the principles of the recognition of rights, respect, co-operation and partnership.

We are also committed to growing the middle class by creating opportunities for people that will help them join it. Everyone knows that indigenous peoples have long been faced with some of the most severe economic disadvantages in this country.

This problem has deep roots in the history of colonialism, including in strict measures written into legislation like the Indian Act. Let me give an example. Ed Metatawabin is a residential school survivor from Fort Albany First Nation who attended St. Anne's residential school and became a chief in his community. After he became chief, he started a small sawmill business so that people in his community would have work and the sense of purpose that accompanies work. However, because it was illegal under the Indian Act for him to own the land, he could not get insurance on his business, so he had to keep his business small to minimize any potential liabilities. Any investment he made was a personal risk to him and his family. A lot of Canadians do not understand this. They do not understand the daily barriers first nations people face on reserve.

Today we have an opportunity to rectify some of these measures and to unlock economic growth for indigenous peoples. We have a chance to create an environment that supports self-determination. This will not only be good for indigenous peoples, it will be good for Canada.

The National Indigenous Economic Development Board has estimated that engaging indigenous people in the economy at the same rate as non-indigenous people would boost Canada's GDP by 1.5% and create almost $28 billion in economic growth. Several others have suggested that the number is actually much higher.

Today we are seeing a wellspring of indigenous-led innovation and sound business practices. There are now over 40,000 indigenous-led small and medium-size businesses in Canada. That is why I say we need to build on these successes. Let us remove barriers to further success and self-determination. That is the objective of the new legislative measures set out in the proposed budget implementation act.

I want to clarify that these amendments are not top-down solutions. We developed them in consultation with our first nations partners and by asking for their contribution and their participation from the outset.

The Government of Canada is proposing amendments to the First Nations Fiscal Management Act that would provide greater clarity around language, streamline organizational operational issues, and expand access to the program to complement new budget 2018 funding of $50 million over five years and $11 million per year ongoing. The act is opt-in and enables first nations to implement taxation and financial management systems.

First nations are supported by three fiscal institutions operating under the act: the First Nations Tax Commission, the First Nations Finance Authority, and the First Nations Financial Management Board. These institutions build capacity among first nations and bring them together to access long-term financing, and it has been a very effective approach.

For example, the First Nations Finance Authority fifth debenture of $138 million, issued in September 2018, brought its total bond issuances to $514 million. This bond is being used by first nations across the country to invest in community infrastructure and economic development, such as the new school for Siksika Nation, a power project in Chehalis, and housing for Peter Ballantyne Cree Nation.

The new budget 2018 investments would enable the fiscal institutions to work with nearly twice as many first nations to develop their capacity and have greater access to capital. To date, 239 first nations are scheduled in the act.

Access to funding is one thing, but we can all agree that access to the land is critical for economic empowerment. The Government of Canada is proposing $143 million in budget 2018 to strengthen the First Nation Land Management regime and support 50 additional first nations in becoming signatories to the Framework Agreement on First Nations Land Management over the next five years.

As well, the proposed amendments to the First Nations Land Management Act before us today would ratify changes to the framework agreement, changes that were co-developed with first nations. These fixes address voting thresholds and other administrative improvements that will better support first nations that are signatory members to develop their own land codes, or laws, to exit section 33 land-management-related provisions of the Indian Act. That’s one-third of the Indian Act.

The fixes will also eliminate federal oversight and enable first nations to “move at the speed of business” on investment and development opportunities.

For example, Stz’uminus First Nation, which has been operating under its own land code since 2014, has been able to create Oyster Bay Development—a 65 acre, multi-million dollar site that includes a hotel and a commercial area along the TransCanada Highway—without any need for Indian Act approvals.

Another mechanism to improve the relationship between Canada and first nations and move toward enduring reconciliation is the return of land that is owed to first nations under historical treaties and specific claim settlement agreements. With additions to reserves, ATRs, first nations can also add land to an existing reserve land base or create new reserves for the use and benefit of their members for community and economic development.

The Government of Canada is proposing this legislation to streamline the ATR process, building on the benefits of legislation that is currently only available to some first nations in the prairie provinces. These changes are long overdue. They are part of a number of actions the government committed to take when it adopted a new ATR policy directive in 2016, after several years of engagement and joint work with first nation communities and organizations. The biggest proposed change is that ATRs would now be able to be approved by ministerial order rather than by Governor in Council, which would result in significantly more timely decisions.

The proposed legislation would also speed things up by letting first nations pre-designate land being added to a reserve, similar to zoning in a municipality, and begin to put in place arrangements, such as leases or permits, prior to the land being added, a vital requirement for investment opportunities. This would help create reserve lands that are ready for economic development.

ATRs support economic development opportunities, self-reliance and growth in first nation communities. For example, in September 2018, the Sioux Valley Dakota Nation added 79 acres of land to its reserve. The land is currently home to a gas bar and a convenience store, with future plans for a restaurant, a hotel, commercial space and an outdoor stage.

Collectively, these amendments regarding finances and land support reconciliation with indigenous peoples would result in greater long-term benefits for Canada. I encourage all members to support them.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Mr. Speaker, one of the things I noticed in the budget implementation act is infrastructure spending. One of the things I also noticed was that the infrastructure spending has not gone out yet. Coming from northern Alberta, when the government made the big announcement about infrastructure spending, we were definitely looking forward to having a bunch of roads re-paved or paved and roads to some of our communities built.

Could the hon. member comment on why it has taken so long to get that infrastructure money out?

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Mr. Speaker, having been a city councillor for several years and a candidate in 2015, I can say that one of the policies that was most attractive to the city I come from, Winnipeg, and I imagine many rural areas, was the enhanced infrastructure spending our government was embarking on. Across the country, we are rebuilding cities, we are rebuilding rural areas, we are investing in rural municipalities. I cannot speak precisely to the situation where the hon. member resides, which I believe is northern Alberta, but I can say without a doubt that in Manitoba, in Winnipeg, the money has definitely flowed. Roads are being rebuilt. Water systems are being rebuilt. I think that some of the happiest constituents in Canada today are mayors, city councillors and rural aldermen.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, of course we are still going through this bill as it has many different divisions. Therefore, if the member cannot answer I would certainly understand.

Under division 17 of part 4, basically in order to better communicate Canada's international development efforts, it will be repeal the definition of official development assistance in the Official Development Assistance Accountability Act and confer this power to be done through regulation. The Liberals are taking out the definition of one of the most important terms in that piece of legislation and simply allowing ministerial officials, through regulations, to then further define it. Does the member believe that puts this place, this House, in the driver's seat, or are he and his government simply deferring on such important matters as official development assistance to bureaucrats who will obfuscate and evade the proper scrutiny of this House?