Bill C-46

An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act

This enactment amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories. It also amends the Income Tax Act to provide an additional payment of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit equal to double the amount of the regular January 2023 payment.

Budget Implementation Act, 2023, No. 1

[Mario Simard, Bloc, Jonquière, QC]

Madam Speaker, in a momentary fit of enthusiasm and sincere affection, I forgot myself.

As I was saying, the Prime Minister has come forward with the bare minimum. Let us go back to that bare minimum. According to the NDP, the minimum was $4.6 billion. The NDP therefore wants there to be more than $4.6 billion. In my opinion, the NDP surely wants the $2 billion dollars that was in Bill C‑46 to also be included in Bill C‑47. That is my interpretation.

I will continue to read the quote: “The Prime Minister has come forward with the bare minimum—a deal that won't do nearly enough to recruit, retain and respect frontline workers, does not address the conditions in long-term care”.

I think it is clear that the leader of the NDP has the same objectives as us and that he wants the health care system to be better funded.

I will read a third statement by the leader of the NDP, who said, “Increasing the Canada Health Transfer is a start—but this is not enough to rebuild our public health care system.” Again, the leader of the NDP finds that the government is a bit stingy when it comes to funding health care.

In my opinion, $2 billion is not enough, but $4 billion might be enough. I have a feeling that my colleagues in the NDP are thinking the same thing. The $2-billion question, therefore, is this: Will the representatives from the NDP support us for better health care funding?

Based on everything the leader of the NDP has said, I get the feeling they will. Will they instead support the government and deny us a more robust health care system?

I would like to quickly address something else. It is the issue of energy and the environment. In Bill C‑47, $21 billion will be used for greenwashing oil companies and for funding madness, namely small modular nuclear reactors that will allow the oil and gas industry to use less gas in its processes. Essentially, nuclear energy, energy that is anything but clean, will be used to produce more gas.

That is a total aberration that everyone is against. It is all the more a total aberration because there is no country, to my knowledge, that considers nuclear energy to be clean energy, except Canada. It is well known that nuclear energy costs 10 times more than solar or wind energy. It is also well known that research has shown that every country that has wanted to go the route of nuclear energy in their fight against climate change in the past 25 years has clearly failed. It is known that the federal government's strategy is doomed to fail, and there are funds for that in Bill C‑47. That is another aberration.

I will conclude my comments by reaching out to my colleagues in the NDP, because I am a man of good faith, so we can demand that the government adequately fund the health care system.

[Mario Simard, Bloc, Jonquière, QC]

Madam Speaker, I fully understand, but sometimes when we get excited we forget the most basic parliamentary rules.

I am pleased to speak to Bill C-47 today. At first, I thought that, as natural resources critic, I would focus my comments on energy but, as luck would have it, I will be able to speak on another one of my favourite issues, health transfers. Members will understand why.

I have risen many times in the House to speak about an issue that is plaguing Canadian federalism, and that is the fiscal imbalance. The fiscal imbalance could probably have been resolved in Bill C‑47. I will explain why. In fact, I hope that it will be resolved in Bill C-47 by a stroke of luck.

Before rising, I spoke with my favourite colleagues, the members for Drummond and Lac-Saint-Jean, to find out what they thought about health. The member for Lac-Saint-Jean, with his usual edgy wit, told us that, when it comes to health, the Leader of the Conservative Party makes Scrooge look like a spendthrift. Basically, we know that the Conservative Leader now wants to maintain health funding at $4.6 billion, as proposed by the Liberals, against the wishes of all the provinces, which want $28 million in funding. That is the silliness of the member for Lac-Saint-Jean, but I want to bring up something that happened on Wednesday, April 19.

At that time, the House had voted unanimously in favour of Bill C-46. That bill included $2 billion in health transfers to the provinces. For us, it was not enough. However, we later found that the $2 billion was in Bill C-47. That was very interesting, because a total of $4 billion would be going to the provinces instead of the initial $2 billion. I think that is very good news. It should be very good news for all government ministers, including the Minister of Revenue, but unfortunately, the member for Winnipeg-North put a damper on the good news. He can always be counted on to put a damper on good news. On April 21, he told us in a statement that he would be removing the most interesting part of Bill C-47, the part saying that there would be an additional $2 billion.

The Bloc Québécois will clearly oppose that amendment. Indeed, in our opinion, the fiscal imbalance must be resolved. We will talk more about that. Our recent experience with the pandemic showed us that our health care system is struggling. That $2 billion would be very useful.

Now comes the million-dollar question, as the expression goes. Except it is even worse in this case, because it is the $2-billion question. What is the NDP leader going to do? Will he support the government in cutting $2 billion from health transfers? The government has a coalition with the NDP right now, so I think the NDP has the opportunity to make a difference by not supporting the government in its plans to cut those $2 billion.

As I said earlier, we know that the provinces were asking for $28 billion, and they got only $4.6 billion. We know that the government refuses to fund 35% of health care costs, but the NDP could make all the difference.

To put things into perspective, I will share what the leader of the NDP said very recently. On December 12, the leader of the NDP said that his party was prepared to withdraw from the supply and confidence agreement it had signed with the Liberals if there was no federal action to resolve the health care crisis affecting Canadian children. That is what the NDP leader said on December 12. He went on to say that this was a decision he was not taking lightly and that it was time to keep the pressure on, because the goal of the New Democrats was to save lives.

The NDP can always be counted on when it comes to saving lives.

Saving our health care system is about helping workers and helping children. I wonder if the NDP today still wants to save lives. Does it still want to save our health care system and children? It has the opportunity to do so. All it has to do is refuse to allow the removal of the much-touted $2 billion from Bill C-47.

In February of this year, the same situation arose when an NDP opposition day was specifically about health care. Its strategy was a bit questionable, in my view. They tried to put the onus on the provinces by saying that there could be funding for health care as long as the money was not used for private services, as long as the private sector was not involved. Health falls under provincial jurisdiction. I would describe myself as a progressive. I do not agree with allowing the private sector to play a bigger role in health care, but the crux of the problem remains the same. The crux of the problem is funding.

On February 7, 2023, the NDP leader said, “After spending the last two and a half years stalling any progress to improve health care, Justin Trudeau has come forward with the bare minimum”—

[Arielle Kayabaga, Liberal, London West, ON]

Madam Speaker, I am very pleased to join the debate on Bill C‑47 and highlight our government's efforts to support the middle class, build a strong and prosperous economy, and help Canadians cope with the rising cost of living.

The 2023 budget tabled last month by the Deputy Prime Minister and Minister of Finance proposes, for one, targeted inflation relief for 11 million Canadians and families. That is what I would like to talk about today.

This targeted relief is both necessary and appropriate. Since 2015, the government has been committed to helping those who need it most, and that has not changed. On the one hand, Canada's recovery from the recession caused by COVID‑19 has been remarkable. There are 865,000 more Canadians in the workforce now than there were before the pandemic, and the unemployment rate is near its record low. Inflation also continues to drop.

On the other hand, there are challenges that remain. For example, inflation is still too high. Canadian families are feeling the effects every time they go grocery shopping. Rising prices for basic necessities are a concern for many Canadians.

In the 2023 budget, we propose new, targeted inflation relief for the Canadians hardest hit by rising food prices. Thanks to this grocery rebate, 11 million low- and modest-income Canadians and families will receive financial assistance. These 11 million Canadians include people in my riding of London West.

In concrete terms, this represents up to $467 for couples with children and up to $234 for single people without children. It represents an extra $225 on average for seniors. This assistance will be provided through goods and services tax credits. The reimbursement will be paid by the Canada Revenue Agency as a one-time payment shortly after Bill C‑47 passes.

I am therefore happy to see that our grocery rebate is advancing well at the legislative level, Bill C‑46 now being before the Senate after having been adopted by the House on April 19.

That represents a $2.5-billion investment for the treasury. It is indeed an investment that will strengthen Canada's social safety net and improve the quality of life of millions of Canadians, without boosting inflation. It would be unreasonable to send a cheque to every Canadian, since that would only make things more difficult for the Bank of Canada, and things would remain more expensive longer for all Canadians.

We need to understand that the worst appears to be behind us in terms of inflation, which has declined every month in the past nine months and is now holding stable at 4.3%. That being said, we know that some families are having a harder time than others, and they are the ones that need help.

Budget implementation Bill C‑47 also includes a series of measures to help Canadians face the rise in the cost of living. They include legislative amendments to crack down on predatory lending. The bill also includes several provisions to implement the new Canadian dental care plan. This will help up to nine million Canadians, and ensure that no one in Canada has to choose between dental care and paying their monthly bills.

This is in addition to other measures included in budget 2023. I am thinking in particular of collaboration with regulatory agencies, provinces and territories to reduce junk fees such as high roaming and telecommunications charges, excessive baggage fees and unfair shipping fees. I am also thinking of the implementation of a right to repair to make it easier and less costly to repair appliances and electronics than to replace them. The possibility of implementing a common charging port for telephones, tablets, cameras and laptops will also be explored.

There is also a reduction in credit card transaction fees for small businesses.

This is also in addition to measures already in place, such as the reduction of day care fees at regulated services across Canada. Six provinces and territories already provide regulated child care services at $10 per day or less, on average. The other provinces and territories are on track to do so by 2026. We have also strengthened the day care system in Quebec. In that province, we are providing more day care spaces.

These are responsible measures. All Canadians want right now is for inflation to keep declining. Canada is proud of its tradition of fiscal responsibility. It is a tradition that the government is determined to maintain. That is why budget 2023 will allow Canada to keep the lowest deficit and net debt-to-GDP ratio among the G7. Budget 2023 will slow the growth of public spending and bring it back to prepandemic levels.

In exercising fiscal restraint, we ensure that we will continue to make investments for Canadians. With targeted investments, we will help those who truly need it. There are investments in housing, because our economy is built by people and people need a roof. There are investments in labour so workers have the skills needed to find and keep good jobs. There are also investments to strengthen the immigration system so that we can welcome a record number of qualified workers and help growing businesses.

In conclusion, Bill C‑47 will help the most vulnerable Canadians cope with price increases. It will ensure that no one is left behind. This bill will make it possible to consider everyone and manage the public finances effectively.

I encourage hon. members to support this bill and help create a stronger and more prosperous future for Canada.

[Galen Countryman]

This is interesting in the sense that it's not the first time I've seen measures that have been tabled in a separate bill then forwarded into a budget implementation bill. In the past, the government just didn't move that separate bill forward through the House to seek royal assent.

What's happened here is that there's been an agreement—as I understand—to expedite the passage of Bill C-46. I think that may not have been part of the thinking or what was contemplated at the time.

It's a bit not in my realm to determine exactly how the government will proceed. The government will have an intention, I think, to come back to this committee with a plan forward as to how to address and coordinate the two bills.

[Galen Countryman]

That's a very good question.

The government decided to table a bill expeditiously for those two things that are in Bill C-46. Then, as you know, it included the very same provisions in Bill C-47. The government will have to determine, based on which one passes first, how it will adjust how each one will take effect. If Bill C-46 does get royal assent before Bill C-47, then Bill C-47 will need to be adjusted accordingly to reflect that.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Thank you very much.

I just wanted to come back to division 8. I'm frankly surprised that there aren't any coordinating amendments, given that Bill C-46 was tabled well prior to Bill C-47.

I'm wondering what the decision-making process was around not including coordinating amendments, in the event that Bill C-46 passes expeditiously.

[Galen Countryman]

Yes. The $2-billion provision is in both bills. Bill C‑46 is before the Senate now.

The intent clearly isn't to allocate this $2 billion twice. I believe the government will indicate how it intends to coordinate the two bills, under these circumstances.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Okay. We would appreciate a written answer.

Last Wednesday, the House fast-tracked Bill C‑46 after the report stage. Part of that bill includes an additional $2 billion in health funding for the provinces, with no strings attached. Now, this additional funding is also in Bill C‑47. If Bill C-47 is not amended to remove that portion, it would mean that the $2 billion in Bill C‑46 would be in addition to the $2 billion in Bill C‑47. Is that right?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you.

Since Bill C‑208 was introduced, we have been getting calls every week from owners of farming businesses and family farms who are postponing transferring their businesses to their children so as not to be penalized from a tax perspective.

I now understand that the rules concerning these transfers do not appear in the current implementation bill, but that could be the case in the fall.

Thank you for your answer, even if it doesn't make me happy.

I am going to come back to a subject addressed earlier, the duplication of the GST credit adopted in Bill C‑46, also called the “grocery rebate”, which is better from a marketing perspective.

Assuming that Bill C‑47 is adopted by the end of the parliamentary session, how would Bill C‑46 speed up payment of this GST cheque?

[Lindsay Gwyer]

With regard to part 1 and the grocery rebate amendments, it's correct that the same amendments in this bill as are in Bill C-46. If both bills were to pass, it wouldn't double the amount of the credit. The amendments do the same thing. They would be effectively redundant.

I can't speak to part 4, but typically there are coordinating amendments in legislation that address a scenario where you have legislation in two different bills that would impact the provisions in the other bill. You have coordinating amendments that address that scenario where one passes or they both subsequently...or they both end up passing. There may be coordinating amendments that address part 4, but that would be a question to put to someone next week.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Good morning, Mr. Chair.

I would like to say hello to my colleagues and thank all the senior officials for being with us to answer our questions.

I have numerous questions. Unfortunately, in preparing them, I didn't distinguish between the parts of Bill C‑47. If any of my questions happen to relate to part 4, I apologize in advance.

In fact, I am going to start with a question about part 4, so you can pass it on to your colleagues who will answer it later, at an upcoming meeting. It concerns division 31, which makes “Charles the Third, by the Grace of God King of Canada.”

I would like your colleagues to be able to check the section of the equivalent legislation, as it was worded the last time. I imagine we go back to the era of Queen Elizabeth II and the clause was submitted to Parliament in an omnibus budget implementation bill, toward the end of the bill. I would therefore like your colleagues to prepare an answer to my question for the next meeting. I would appreciate it.

My first question concerns both part 1 and part 4. Last Wednesday, we adopted Bill C‑46 at all stages. We have therefore doubled the amount of the GST credit, which we are calling the “grocery rebate”, even though groceries are not taxable, and the $2 billion in health transfers to the provinces.

Bill C‑46 was adopted at all stages on Wednesday. Bill C‑47, which provides for the same amounts, was introduced in the House of Commons on Thursday.

If Bill C‑47 is adopted without being amended, for example by removing those parts, we are going to find ourselves with two GST credits and an additional $2 billion for the provinces.

Is that correct?

Thank you.

Seniors

[Mark Gerretsen, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate)]

Madam Speaker, the hon. member for North Island—Powell River raises the very important issue of dignity and I wholeheartedly agree with much of what she said. Seniors do deserve a dignified retirement after a lifetime of hard work. They deserve to live knowing that they have the means to pay for their housing, food and medications, to name a few. With food costs and rental costs soaring, it is hard for people to put their financial cares aside.

This is the reason why our government increased the old age security pension by 10% for seniors over the age of 75. As seniors age, they tend to have lower income and are often facing higher health-related expenses because of the onset of illness or disability. Now, thanks to the increase to the OAS, we are strengthening the financial security of 3.3 million Canadian seniors.

Because higher prices on essential goods are causing undue stress, we passed Bill C-46, the one-time grocery rebate, which will deliver targeted inflation relief for 11 million Canadians who need it the most, providing eligible seniors with an extra $234, on average.

Our new dental benefit, as the member mentioned, will help seniors get the dental care they need. That is why, in budget 2023, we proposed to provide $13 billion over five years and $4.4 billion ongoing to help nine million Canadians, including seniors, receive the dental care they need.

These new measures build on the supports that our government has already provided to seniors in the form of program changes, tax breaks and top-ups. Since 2015, we have made significant progress for seniors. To begin, we increased the GIS for nearly a million low-income single seniors. We then restored the age of eligibility from 67 to 65 for GIS and OAS pensions, which the Conservatives had planned to increase this year, if they were still in power.

We enhanced the Canada pension plan, and we reduced income taxes through increases to the basic personal amount. Finally, budget 2022 committed a top-up of $500 to the Canada housing benefit to help low-income renters, including seniors, with the cost of renting, and a one-time doubling of the GST credit for six months.

We are committed to making life more affordable for Canadians, and our government has the record to prove it.

Budget Implementation Act, 2023, No. 1

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

Madam Speaker, what a pleasure it is to rise today and speak about the budget implementation bill.

Today is a very special day in Parliament. Parliament is actually celebrating Vaisakhi on the Hill, so I would like to wish everyone a very happy Vaisakhi.

Vaisakhi is a very important part of the month of April, and here in Canada we celebrate Sikh heritage in the month of April. It does not matter where one goes in Canada; it is important to take a look at the importance of Canada's diversity and Sikh heritage and the contributions they have made to our communities over the years.

Last summer, I had the opportunity to travel to Abbotsford, where we have the first gurdwara, which is still standing. It is a Canadian heritage site. Whether it is in Vancouver, Winnipeg, Toronto, Montreal or out on the east coast, Sikh Heritage Month is a very important month of the year for people of Sikh faith and others who get engaged in recognizing and celebrating Sikh Heritage Month.

Earlier this month, the city hall of Winnipeg recognized Sikh heritage. Just last week, the Manitoba legislature had Turban Day inside the Manitoba legislature, and today here on Parliament Hill, as I indicated, we are celebrating Sikh Heritage Month and requesting people to put on a turban. It is with great pleasure that I put on a turban today.

I think of the importance of the khalsa and the minister providing the service. He posed a question: “What is Vaisakhi to you?”. Vaisakhi to me is very meaningful. It is about equality. It is about the khalsa. Back in 1999, I had the honour and privilege to introduce into the Manitoba legislature a recognition of the khalsa to recognize the importance of it, and just in February, I had the opportunity to travel to India. It is a beautiful country. I went to a few places, like Anandpur Sahib, where the khalsa was born, and the Golden Temple in Amritsar. I must say that at 1:30 in the morning, it is very surreal. When I was there, I could feel a spiritual presence.

The point is that, for me personally, it is all about faith and it is all about equality. It speaks volumes about Canada's diversity. When I think of Canada's diversity, I would suggest it is our diversity that is one of the greatest assets we have in society.

When we talk about the budget and think in terms of where the growth is within our budgetary measures, I believe we will find that Canada, as a trading nation, is very much dependent on world trade. When I think of world trade, I cannot help but think of some of our partners from the past and today, such as the United States, and the amount of trade that goes between our borders. I also think of the number of trade agreements we have been able to accomplish over the last seven years. I believe that as a government, we have signed off on more trade agreements with other countries than any government before us.

India is a vast, beautiful country. Many, including me, would argue it will be an economic superpower in the future. The greatest asset we have here in Canada is indeed our diversity and people, in this case of Indian heritage, being able to look at ways we can enhance trade opportunities. That applies to many other communities. When we talk about diversity, today is Sikh Heritage Month, but we have Portuguese Heritage Month and Filipino Heritage Month, which is coming up in June.

We recognize Canada's diversity, and that diversity shines through in many different ways. It is more than just heritage clothing, if I can put it that way, or traditional wares. It is very much about opportunities, and Canada is laden with opportunities, going into the future, based on trade.

Now here we are with the budget implementation bill, and one would think I would be talking a lot about the grocery rebate. I know the grocery rebate is very important. It is actually incorporated into this legislation. It is one of the ways the Government of Canada is going to be assisting Canadians through a very difficult time.

We talk about inflation, and I have made the comparison in that past when we have talked about inflation in Canada that we are doing relatively well compared to other countries in the world, whether it is the U.S.A., many of the European Union countries or those in the G20. We are actually doing quite well. However, the government recognizes that we could do better to assist the population. One of the ways we would be able to accomplish that is the grocery rebate. That would put money in pockets. The budget implementation bill is there to ensure that we are able to administer the grocery rebate.

The good news is that, as we did not know how long it would take to get through the budget debate, we were able to build a consensus to pass Bill C-46, which would ultimately put in place the grocery rebate. Canadians can look forward to seeing not only that particular piece of legislation pass but the money being sent out.

On Friday, when I talked about one of the more recent announcements, the VW announcement, I talked about a difference, a contrast, between what the Conservatives in opposition believe and what the Government of Canada believes. Over the last number of years, we have put a great deal of effort into building the Canadian economy and supporting Canada's middle class. We have done that in a number of different monetary measures, through budgets, and legislative measures.

Let me give a good example of this that I started to talk about just last Friday. We had the announcement of what will be Canada's single largest factory, where we will be producing and manufacturing electric batteries. It is very much a thing of the future that will provide literally thousands and thousands of jobs. It will provide the opportunity for Canada to become a significant player in the manufacturing of electric batteries for automobiles.

When we look at how the Conservatives here in Ottawa are responding, we see it has not been very positive, even though Premier Doug Ford has also contributed to the plant, not only from a financial point of view but also by building part of the infrastructure that will be necessary. This factory, land-wise, will be hundreds of times the size of a football field. It is going to be gigantic in terms of its footprint in St. Thomas, Ontario. All of us will benefit from it.

The leader of the Conservative Party tweeted not that long ago and said that we do not have lithium mines and do not have batteries being developed. That seems to be the attitude of the Conservative Party, and it does not have to be the reality. The reality is changing because we have a government that has recognized the potential of the industry and the important role that the Province of Ontario in particular has played in the automobile industry. That was no doubt a huge attraction for Volkswagen. We will now see more lithium mining taking place in Canada. We now have an industry that will be able to grow, expand and provide both direct and indirect jobs in the future.

On the other hand, the contrast is that we do nothing. Had we done nothing, we would never have been able to land the Volkswagen deal, and that industry would continue to be dominated by countries like the U.S.A. and China. However, as a result of the Government of Canada recognizing that we can and should be a player, we are now going to see and reap the benefits.

Sure, there is a cost to this. However, that cost will be paid back tenfold in the next 10 years. It is worth the cost. This is an industry that will do exceptionally well, much like the aerospace industry, which we talked about last week. As I made reference to last Friday, all of us, like those in Quebec and my home province of Manitoba, benefit when a province is able to do well.

I am excited about the future because this budget implementation bill is there to support workers, to support our environment and to support consumers. It is there in a very real and tangible way. I would encourage all members to rethink their positioning and look at it as a way forward for Canada that will create middle-class jobs, the good jobs we want in our economy, and that will create opportunities and entrepreneurs well into the future.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I would like to remind you and the members of the House that Bill C-46 passed all stages on Wednesday and that Bill C-47 was introduced in the House on Thursday. Therefore, there is no need to introduce amendments.

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

Mr. Speaker, first, I would like to address the Bloc member's concern regarding the issue of Bill C-47 versus Bill C-46. The member is quite right. We need to recognize that it has been a priority of this government to provide inflation relief in the form of a grocery rebate. That is why it was incorporated into Bill C-46. It is also the government's priority to try to get hundreds of millions of dollars to the provinces with respect to health care. That was also incorporated into Bill C-46.

As the member pointed out, it is also in the budget implementation bill. This is because we could not get agreement for the quick passage of Bill C-46 through the House. We only recently got the agreement to pass it. Following this logic, the member will recall how long it can take to get a budget implementation bill through the House from the last time we had one.

As a good example of that, today, there has already been an amendment to the budget implementation bill moved by the Conservative Party. The Conservative Party is going to hold up the budget implementation bill. Recognizing the importance of getting that grocery rebate to Canadians and getting the transfers of hundreds of millions of dollars to the provinces for our health care system, the government had to come up with Bill C-46 after we got agreement that we could get it passed in the House. That is the reason for this.

I know the member appreciates the explanation. I would even encourage the member to move the amendment so we can rectify the situation once we get to the committee stage. If I could, I would be the seconder.