Bill C-59

Fall Economic Statement Implementation Act, 2023

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) limiting the deductibility of net interest and financing expenses by certain corporations and trusts, consistent with certain Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations;
(b) implementing hybrid mismatch rules consistent with the Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations regarding cross-border tax avoidance structures that exploit differences in the income tax laws of two or more countries to produce “deduction/non-inclusion mismatches”;
(c) allowing expenditures incurred in the exploration and development of all lithium to qualify as Canadian exploration expenses and Canadian development expenses;
(d) ensuring that only genuine intergenerational business transfers are excluded from the anti-surplus stripping rule in section 84.1 of the Income Tax Act ;
(e) denying the dividend received deduction for dividends received by Canadian financial institutions on certain shares that are held as mark-to-market property;
(f) increasing the rate of the rural supplement for Climate Action Incentive payments (CAIP) from 10% to 20% for the 2023 and subsequent taxation years as well as referencing the 2016 census data for the purposes of the CAIP rural supplement eligibility for the 2023 and 2024 taxation years;
(g) providing a refundable investment tax credit to qualifying businesses for eligible carbon capture, utilization and storage equipment;
(h) providing a refundable investment tax credit to qualifying businesses for eligible clean technology equipment;
(i) introducing, under certain circumstances, labour requirements in relation to the new refundable investment tax credits for eligible carbon capture, utilization and storage equipment as well as eligible clean technology equipment;
(j) removing the requirement that credit unions derive no more than 10% of their revenue from sources other than certain specified sources;
(k) permitting a qualifying family member to acquire rights as successor of a holder of a Registered Disability Savings Plan following the death of that plan’s last remaining holder who was also a qualifying family member;
(l) implementing consequential changes of a technical nature to facilitate the operation of the existing rules for First Home Savings Accounts;
(m) introducing a tax of 2% on the net value of equity repurchases by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange;
(n) exempting certain fees from the refundable tax applicable to contributions under retirement compensation arrangements;
(o) introducing a technical amendment to the provision that authorizes the sharing of taxpayer information for the purposes of the Canadian Dental Care Plan;
(p) implementing a number of amendments to the general anti-avoidance rule (GAAR) as well as introducing a new penalty applicable to transactions subject to the GAAR and extending the normal reassessment period for the GAAR by three years in certain circumstances;
(q) facilitating the creation of employee ownership trusts;
(r) introducing specific anti-avoidance rules in relation to corporations referred to as substantive CCPCs; and
(s) extending the phase-out by three years, and expanding the eligible activities, in relation to the reduced tax rates for certain zero-emission technology manufacturers.
It also makes related and consequential amendments to the Excise Tax Act and the Excise Act, 2001 .
Part 2 enacts the Digital Services Tax Act and its regulations. That Act provides for the implementation of an annual tax of 3% on certain types of digital services revenue earned by businesses that meet certain revenue thresholds. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.
Part 3 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that an interest in a corporation that does not have its capital divided into shares is treated as a financial instrument for GST/HST purposes;
(b) ensuring that interest and dividend income from a closely related partnership is not included in the determination of whether a person is a de minimis financial institution for GST/HST purposes;
(c) ensuring that an election related to supplies made within a closely related group of persons that includes a financial institution may not be revoked on a retroactive basis without the permission of the Minister of National Revenue;
(d) making technical amendments to an election that allows electing members of a closely related group to treat certain supplies made between them as having been made for nil consideration;
(e) ensuring that certain supplies between the members of a closely related group are not inadvertently taxed under the imported taxable supply rules that apply to financial institutions;
(f) raising the income threshold for the requirement to file an information return by certain financial institutions;
(g) allowing up to seven years to assess the net tax adjustments owing by certain financial institutions in respect of the imported taxable supply rules;
(h) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by psychotherapists and counselling therapists;
(i) providing relief in relation to the GST/HST treatment of payment card clearing services;
(j) allowing the joint venture election to be made in respect of the operation of a pipeline, rail terminal or truck terminal that is used for the transportation of oil, natural gas or related products;
(k) raising the input tax credit (ITC) documentation thresholds from $30 to $100 and from $150 to $500 and allowing billing agents to be treated as intermediaries for the purposes of the ITC information rules; and
(l) extending the 100% GST rebate in respect of new purpose-built rental housing to certain cooperative housing corporations.
It also implements an excise tax measure by creating a joint election mechanism to specify who is eligible to claim a rebate of excise tax for goods purchased by provinces for their own use.
Part 4 implements certain excise measures by
(a) allowing vaping product licensees to import packaged vaping products for stamping by the licensee and entry into the Canadian duty-paid market as of January 1, 2024;
(b) permitting all cannabis licensees to elect to remit excise duties on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2023;
(c) amending the marking requirements for vaping products to ensure that the volume of the vaping substance is marked on the package;
(d) requiring that a person importing vaping products must be at least 18 years old; and
(e) introducing administrative penalties for certain infractions related to the vaping taxation framework.
Part 5 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 5 amends Subdivision A of Division 16 of Part 6 of the Budget Implementation Act, 2018, No. 1 to clarify the scope of certain non-financial activities in which federal ‚financial institutions may engage and to remove certain discrepancies between the English and French versions of that Act.
Subdivision B of Division 1 of Part 5 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to, among other things, permit federal financial institutions governed by those Acts to hold certain meetings by virtual means without having to obtain a court order and to permit voting during those meetings by virtual means.
Division 2 of Part 5 amends the Canada Labour Code to, among other things, provide a leave of absence of three days in the event of a pregnancy loss and modify certain provisions related to bereavement leave.
Division 3 of Part 5 enacts the Canada Water Agency Act . That Act establishes the Canada Water Agency, whose role is to assist the Minister of the Environment in exercising or performing that Minister’s powers, duties and functions in relation to fresh water. The Division also makes consequential amendments to other Acts.
Division 4 of Part 5 amends the Tobacco and Vaping Products Act to, among other things,
(a) authorize the making of regulations respecting fees or charges to be paid by tobacco and vaping product manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of that Act;
(b) provide for related administration and enforcement measures; and
(c) require information relating to the fees or charges to be made available to the public.
Division 5 of Part 5 amends the Canadian Payments Act to, among other things, provide that additional persons are entitled to be members of the Canadian Payments Association and clarify the composition of that Association’s Stakeholder Advisory Council.
Division 6 of Part 5 amends the Competition Act to, among other things,
(a) modernize the merger review regime, including by modifying certain notification rules, clarifying that Act’s application to labour markets, allowing the Competition Tribunal to consider the effect of changes in market share and the likelihood of coordination between competitors following a merger, extending the limitation period for mergers that were not the subject of a notification to the Commissioner of Competition and placing a temporary restraint on the completion of certain mergers until the Tribunal has disposed of any application for an interim order;
(b) improve the effectiveness of the provisions that address anti-competitive conduct, including by allowing the Commissioner to review the effects of past agreements and arrangements, ensuring that an order related to a refusal to deal may address a refusal to supply a means of diagnosis or repair and ensuring that representations of a product’s benefits for protecting or restoring the environment must be supported by adequate and proper tests and that representations of a business or business activity for protecting or restoring the environment must be supported by adequate and proper substantiation;
(c) strengthen the enforcement framework, including by creating new remedial orders, such as administrative monetary penalties, with respect to those collaborations that harm competition, by creating a civilly enforceable procedure to address non-compliance with certain provisions of that Act and by broadening the classes of persons who may bring private cases before the Tribunal and providing for the availability of monetary payments as a remedy in those cases; and
(d) provide for new procedures, such as the certification of agreements or arrangements related to protecting the environment and a remedial process for reprisal actions.
The Division also amends the Competition Tribunal Act to prevent the Competition Tribunal from awarding costs against His Majesty in right of Canada, except in specified circumstances.
Finally, the Division makes a consequential amendment to one other Act.
Division 7 of Part 5 amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude from their application prescribed public post-secondary educational institutions.
Subdivision A of Division 8 of Part 5 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) provide that, if a person or entity referred to in section 5 of that Act has reasonable grounds to suspect possible sanctions evasion, the relevant information is reported to the Financial Transactions and Reports Analysis Centre of Canada;
(b) add reporting requirements for persons and entities providing certain services in respect of private automatic banking machines;
(c) require declarations respecting money laundering, the financing of terrorist activities and sanctions evasion to be made in relation to the importation and exportation of goods; and
(d) authorize the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to the Department of the Environment and the Department of Fisheries and Oceans, subject to certain conditions.
It also amends the Budget Implementation Act, 2023, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and makes consequential amendments to other Acts and a regulation.
Subdivision B of Division 8 of Part 5 amends the Criminal Code to, among other things,
(a) in certain circumstances, provide that a court may infer the knowledge or belief or recklessness required in relation to the offence of laundering proceeds of crime and specify that it is not necessary for the prosecutor to prove that the accused knew, believed they knew or was reckless as to the specific nature of the designated offence;
(b) remove, in the context of the special warrants and restraint order in relation to proceeds of crime, the requirement for the Attorney General to give an undertaking, as well as permit a judge to attach conditions to a special warrant for search and seizure of property that is proceeds of crime; and
(c) modify certain provisions relating to the production order for financial data to include elements specific to accounts associated with digital assets.
It also makes consequential amendments to the Seized Property Management Act and the Forfeited Property Sharing Regulations .
Division 9 of Part 5 retroactively amends section 42 of the Federal-Provincial Fiscal Arrangements Act to specify the payments about which information must be published on a Government of Canada website, as well as the information that must be published.
Division 10 of Part 5 amends the Public Sector Pension Investment Board Act to increase the number of directors in the Public Sector Pension Investment Board, as well as to provide for consultation with the portion of the National Joint Council of the Public Service of Canada that represents employees when certain candidates are included on the list for proposed appointment as directors.
Division 11 of Part 5 enacts the Department of Housing, Infrastructure and Communities Act , which establishes the Department of Housing, Infrastructure and Communities, confers on the Minister of Infrastructure and Communities various responsibilities relating to public infrastructure and confers on the Minister of Housing various responsibilities relating to housing and the reduction and prevention of homelessness. The Division also makes consequential amendments to other Acts and repeals the Canada Strategic Infrastructure Fund Act .
Division 12 of Part 5 amends the Employment Insurance Act to, among other things, create a benefit of 15 weeks for claimants who are carrying out responsibilities related to
(a) the placement with the claimant of one or more children for the purpose of adoption; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
The Division also amends the Canada Labour Code to create a leave of absence of up to 16 weeks for an employee to carry out such responsibilities.

Fall Economic Statement Implementation Act, 2023

[Randall Garrison, NDP, Esquimalt—Saanich—Sooke, BC]

Mr. Speaker, this is a difficult moment for me, not because I had to find a new seat near the exit, not because it took me two tries to get to Ottawa because of the fog and not because I come from an Irish family of criers, but because it is really a moving moment for me.

I want to thank the member for LaSalle—Émard—Verdun for the friendship we have developed in the House. He has a great record of accomplishment, about which he spoke, but I want to point out something someone asked me on the plane last night, and that was how I could go to work in such a negative place. My response was that, unfortunately, all people see is question period, which is theatre, where people have other agendas they are pursuing, but they do not see the hard work that goes on behind the scenes, the co-operation and the friendships that are built. I really meant that, and the member for LaSalle—Émard—Verdun is a great example of this.

I made a quick list, because I had 15-minutes notice that I had this opportunity, on the number of things he and I worked on together and his willingness to take action to ensure we improved the justice system in Canada, in particular for indigenous people and the work he did on Bill C-5 to reduce mandatory minimums, which fall very hard on the most marginalized in our society.

He mentioned the conversion therapy ban. His work with the leader of the Conservatives and all parties meant we were able to pass that ban unanimously, something which I remain very proud of the House for doing.

He worked on Bill C-40, with which we are not quite finished, on the miscarriages of justice commission. Again, miscarriages of justice fall very hard on the most marginalized, particularly indigenous women. My pledge to him is that I will work as hard as I can to get that done, hopefully by the end of this month. We only have a couple of days, but I think we can get that done.

He also helped shepherd medical assistance in dying legislation through the House when I was initially the NDP critic. This was the most difficult issue in my 13 years here because of the very strong feelings on all sides of the issue. The minister always demonstrated his ability to listen, to be empathetic and to try to find solutions that would keep us all together on this very important issue about reducing suffering at the end of life, not just for the person but for the families of people who need that assistance at the end.

One last one is that I approached the minister about the publication ban on survivors of sexual assault and how many of them felt stifled by the publication ban. He asked what we could do to fix it. Eventually he agreed to add the ability to lift the publication ban in Bill S-12, and it came to the House. This was an example of how, when I approached him with an idea and a problem, he always looked for solutions and a way to bring us all together.

I know he will continue to contribute to Canada once he leaves the House, though I am not sure in exactly what way or if he is sure in exactly what way. He is one of the finest members of Parliament I have ever had the privilege to work with, and I thank him for his contributions here.

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

Mr. Speaker, it is with some emotion that I rise to pay homage to the hon. member for LaSalle—Émard—Verdun, for whom we have tremendous respect and esteem.

I vividly remember when he was appointed minister. I had to make a few comments at the time. In fact I was reviewing the appointments that had been made. A journalist asked me what I thought about Mr. Lametti’s appointment as justice minister. I think I can use his name. I am a member of the official opposition, and I have to be loyal to my position, so I was trying to find something a bit harsh to say. However, I began reading the minister’s resumé and I saw that he was a renowned jurist, a university professor cited by others across the country, and someone who was extensively involved in the justice system in Canada. I really had to say something negative, so I asked why the Prime Minister had not appointed him sooner. I said he should have been appointed sooner.

During question period, the parties have 30 to 35 seconds to argue their point of view. This certainly can be a rough and even brutal experience. However, I always had intelligent, articulate, reasonable and reasoned conversations with the justice minister. We know that we are worlds apart on many issues, but we have always had tremendous respect for one another. I would like to thank him for his attention when I was consulted about certain appointments. He always acted with honour and dignity.

Regarding what he said about his family, I would like to point out that such is the case for millions of Canadians. I, too, am the son of immigrants. My mother was born in Italy. I, too, have felt the personal responsibility to continue what my parents started by choosing this country and being chosen by this country. The minister, whose family did not have much education, arrived here and had a brilliant academic career. He served the university and he served Canada in the highest possible positions for a jurist. He has honoured his family.

In closing, I will tell members what I often tell my friend the member for Québec, who is himself a seasoned academic with executive experience. I hope that he will continue his teaching career to share his experience as an academic and executive with hundreds and thousands of students.

I wish Mr. Lametti all the best in his future endeavours.

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, I would like to speak to my friend, amico mio, over there.

There are so many things I would like to say to a colleague who has served with such distinction. I heard the minister thank us all, but on behalf of my colleagues here today, I think it is our turn to express our gratitude.

I am going to make a prediction: He will go down in history as a great minister of justice and attorney general of Canada—not necessarily because of all his achievements in the House, but because he is, above all, a caring man, a man of conviction, a strong leader. I think all Canadians will end up admiring him. The country already appreciates him, but, as the years go by, people will see how much he has marked the history of Canada as minister of justice. He will be one of the ministers who paved the way toward reconciliation.

Without revealing any secrets, I can say I have seen him in action.

When he was talking about moments, I was thinking about how many moments I would say that he had been crucial for the future of this nation. When we talk about dreams, I can imagine the young students around the country looking to someone like him with his great intellect. All of my colleagues have recognized that. However, I am sure that today, and also in the future, he will make our young generation dream of public service, dream of what is possible, dream of following their convictions, dream of being who they are and dream of making changes. That is who the former minister of justice is.

We will remember him for kindness. I have known a lot of people in this place, and I think all my colleagues would agree, but kindness is something that, although he attributes that kindness and says we need more kindness, he has embodied since the day I met my friend.

I think about getting things done. I do not know if there will be many ministers of justice in the history of the country who will have a record of having so many bills approved in the House, bills that have changed the nature of our country, for which we should all be proud.

One thing I will say is that I have yet to meet someone who has the same type of deep respect for the institution that we serve. He has achieved a lot of things in his life and he will achieve much more in the future. We have talked about his future career. Trust me, the opportunities and possibilities are endless; he just has to pick one.

He will be remembered for his respect for the institution and his service to the nation. This country owes a lot to my dear friend. I think future generations will look up to him as a leader, and I think we all will miss him very much. Grazie, amico mio.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Mr. Speaker, I would like to join my voice to that of my colleagues who have thanked our colleague from LaSalle—Émard—Verdun for his exceptional work in the House of Commons since he arrived eight years ago. We were both elected to the House at the same time, in 2015.

At the time, I thought I would be the one appointed minister of justice. Unfortunately, that did not happen. I engaged many times with the ministers of justice who followed. I too must say that the member from LaSalle—Émard—Verdun did excellent work as minister of justice. Of course, we did not always agree.

There was some talk about dreams earlier. I tried to convince the member that Canada would be much happier with a respectful neighbour, a wonderful, independent Quebec that would work with him on many fronts, but the member from LaSalle—Émard—Verdun never conceded on that point—and he certainly did not agree with me when I spoke to him about judicial appointments that I felt were overdue. These were not disputes, just minor differences of opinion.

What struck me most about the member for LaSalle—Émard—Verdun is that his respectfulness never faltered, despite any differences of opinion we may have had. His words were always measured and kind. The member for LaSalle—Émard—Verdun is someone I consider a “gentleman”; there are a few of them here. I truly enjoyed my discussions with him about all aspects of our work, whether about matters we agreed on—and there were many—or the few issues where our opinions diverged.

I can only congratulate the Fasken law firm for persuading the member for LaSalle—Émard—Verdun to join them. It is a distinguished firm.

I was listening to my colleague just now who asked why the Prime Minister had not appointed him Minister of Justice sooner. Personally, I wonder why the Prime Minister was unable to hold on to him.

[The Deputy Speaker, Conservative, Chris d'Entremont]

The hon. member for Saanich—Gulf Islands also wishes to speak.

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

Mr. Speaker, I thank all my colleagues and acknowledge their comments.

It really says a lot about the hon. member for LaSalle—Émard—Verdun, as a former minister of justice and a member of a cabinet, when so many of his colleagues from the opposition benches who worked with him closely rise to praise his work and thank him for his collegiality, particularly my neighbour from Esquimalt—Saanich—Sooke, who shared in so many of those victories in abolishing the horrible practices, and we have spoken of it, unanimously.

I was very moved by the words from the hon. member for Louis-Saint-Laurent, who spoke so clearly and eloquently of his appreciation for the work of a Liberal cabinet member. We could hear more of that sort of thing in this place. Maybe people should not have to resign or die before we say nice things. I am thinking of our tributes to Ed Broadbent the other day. Sorry about that; no one has died recently.

I want to say a few words from my point of view as a member of the Green Party.

I also thank the Bloc Québécois for the comments given by our colleague from Rivière-du-Nord.

I have been really touched so many times by my friend's willingness to share things in moments that were very stressful. I am not pointing out anything the rest of the members do not know. I do not represent a big caucus here. I am not my caucus's critic on justice. I have half the files. Ministers who have time to share confidential information, trusting that I can be trusted and that we can share difficult conversations, particularly during the occupation, I will always be grateful for the friendship and for the enormous privilege of sharing even a little in those conversations, those votes and those very tough decisions.

I will be clear that I wish you were not leaving. I know I have just broken a rule by speaking directly to the member. I know you, Mr. Speaker, are not leaving, but I needed to speak personally for just one nanosecond.

Be well and have a wonderful next phase of a very long career and a very long life. God bless.

[The Deputy Speaker, Conservative, Chris d'Entremont]

I would also add my little story to this. The opportunity that I had one night at the airport in Halifax was to be late for that airplane, or the airplane was late for us.

The hon. member was on the same flight as I was, and we were going to miss our connection in Montreal. I thought that, as he was from Montreal, he would be staying at his house that night, but no, because of his perseverance, because of his hard work ethic, he was on his way to Ottawa that evening as well.

I was lucky enough that my wife and I were able to jump into his ministerial car, to fit into the third row and to not listen to any of the discussions that were happening inside the car because they were still working that evening. He did get my wife and I here to Ottawa. It is something he did not have to do. He could easily have said, “Enjoy your night staying in Montreal and getting to Ottawa in the morning.” However, being the gentleman that he always is, he found the opportunity to put us in there. There might have been an exchange of a certain liquid. In this case, I think it was a moonshine that we were going to share.

On behalf of the 338 members who sit in the House of Commons, I just want to thank the hon. member for his service to Canada. We are going to miss him. Like we would say in French, “tu nous manqueras”.

He will be missing from us, and I think that is important. He has done something for Canada and for this chamber. We will always be reconnaissants for that work.

I thank hon. members and everyone who participated in the discussion this afternoon for this opportunity.

Good luck.

[Fraser Tolmie, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, I would first like to congratulate my colleague from across the floor who represents LaSalle—Émard—Verdun, and I wish him all the best in his future endeavours and all the best to his family.

Further, I will be splitting my time with the member for Fort McMurray—Cold Lake.

It is an honour to speak to Bill C-59, the government's fall economic update, 2023.

In my time as a member of Parliament, I have focused on priorities that matter to the constituents of Moose Jaw—Lake Centre—Lanigan. Sadly, those priorities are not in the government's update.

People in Saskatchewan will be disappointed but not surprised that Saskatchewan is not even mentioned in the finance minister's fiscal update, outside of a few tables in the annex, but this is something we should all expect in Saskatchewan and in the west in general. We have never been a priority for the government.

Agriculture is one of the industries, if not the largest, in my riding. Again, it is a topic that is ignored altogether in this update. Farmers are struggling. Conservatives have put forward Bill C-234 that would axe the punitive carbon tax on fuel used on farms. I have heard from farmers in my riding who are paying thousands of dollars a month on that tax. Instead of supporting this common-sense idea, the government is quadrupling that tax in April, which puts the burden of a punitive policy directly on the shoulders of the people who feed our country.

If the minister cared about lowering grocery prices for Canadians, that would be a tremendous first step. The adage, if one does not want to be questioned about what one is doing, one should look busy by walking around with a clipboard, looking important and pretending to do something, is being replaced by the minister having weekly photo ops to pretend to Canadians that he is doing something. That does not impress or fool the constituents of Moose Jaw—Lake Centre—Lanigan, where we have seen a rise in food bank usage by a whopping 39%.

If agriculture is not the largest employer in Moose Jaw—Lake Centre—Lanigan, then mining and its related industries are a close second. Potash has become one of Saskatchewan's prime exports. I am privileged to represent a riding that has several of the largest potash mines in the world, if not in Canada. As we all know, Canada is the world's largest producer of potash, an important fertilizer that is in huge demand globally. At a time when other large producers, mainly Russia and Belarus, are waging an illegal war in Ukraine, Canadian potash is even more important. While it is already a massive Canadian success story, it is sadly another key industry ignored by the government's fiscal update.

During this period of global instability, the world is looking to Canada for help. Time and time again, we are turning our backs on good trading opportunities with other nations in need, whether it is LNG or potash. During unstable global times, Canada has always been a nation the world can rely on to come to those in need. Time and time again, we have, as a nation, called upon our Canadian Armed Forces to answer the call. It is important work and a priority to support our armed forces and veterans.

As I hope everyone here knows, 15 Wing Moose Jaw is home to Canada's iconic Snowbirds, so the air force is an issue close to my heart. As we look around the world and see conflicts erupting everywhere, we should be investing in the Canadian Armed Forces. Instead, we are hearing top commanders say that they cannot meet basic requirements. Recently, the Department of National Defence's own report stated that the military's operational readiness is strained. It said that the military is not ready to conduct concurrent operations and is not meeting the requirements of Canada's defence policy from 2017.

I quote:

Readiness of [Canadian Armed Forces] force elements have continued to decrease over the course of the last year aggravated by decreasing number of personnel and issues with equipment and vehicles.

Adding to this, Vice-Admiral Angus Topshee, commander of the Royal Canadian Navy, has said that “the RCN faces some very serious challenges right now that could mean we fail to meet our force posture and readiness commitments in 2024 and beyond”. He added that the Harry DeWolf class, the navy’s new offshore patrol vessels, can currently only be deployed “one at a time” due to personnel shortages. Clearly, the Canadian Armed Forces is in a crisis and needs urgent investment, not vague commitments that government budgets will not affect the Canadian Armed Forces.

I have had the pleasure to serve on the veterans affairs committee since I was elected in 2021. I found it to be a tremendous committee that does some very important work that is, sadly, generally ignored by the current government. The fiscal update's sole mention of Canada's brave veterans is the statement that their benefits are indexed to inflation. Veterans on a fixed income are dependent on those benefits and, as we know, with all government payments, they are slow to reflect the inflation we are seeing now. Even if they do, the cost of many of life's necessities, namely groceries and housing, is easily outpacing the official inflation rate.

We are seeing more and more veterans turn to charities and not-for-profits to help feed themselves. It is heartwarming to see these organizations do this important work. Many are created by veterans for veterans; however, they should not be needed. Canadian heroes should never have to go to a charity to feed or house themselves because Veterans Affairs is not providing them with sufficient benefits.

The government's fall economic update falls short of the mark, and it has a negative trickle-down effect on other levels of government. There is only one taxpayer. School boards are realizing the effects of inflation. I recently received a text that the local school board is over-budget by $1 million because of the current government's inflationary spending and punitive carbon tax, which directly impact its operational and capital budgets. Next year, this school board will be another half a million dollars short, totalling $1 million in funds that local taxpayers will have to pay or find cost savings and measures.

Municipalities and police services are also being impacted. In Saskatchewan, the impact of inflation and the carbon tax is directly affecting its budgets, which are now increasing in double digits in communities in my riding, in my province and in this country.

The impacts will be negative. School budgets will be cut. Ten-dollar day care cannot help. Water, roads and other important infrastructure required to keep communities thriving will be cut, and that single taxpayer will receive less service for more dollars, which is a familiar theme with the current government. The future of our country is bleak if we continue to be held hostage by a coalition NDP-Liberal government. That is right. We are being held hostage by the government.

However, I have faith in the people of Canada to elect a Conservative government that is listening to our people. My faith in the next generation is being restored. I met Ashton, an 18-year-old university student studying accounting, and he is working at a local grocery store. His parents have traditionally been Liberal supporters, which is a rare thing in Saskatchewan. Ashton shared with me that he has overheard customers in the grocery store where he works say that this will be the first time they will need to visit the food bank in order to feed their families.

Ashton told me these stories are breaking his heart. He is a critical thinker and has made the choice to not vote Liberal in his first election and to break the family tradition. He sees that the current Liberal government is doing nothing concrete to help families struggling to feed themselves. Ashton knows that a Conservative government would axe the tax, build the homes, fix the budget and stop the crime. Let us hope, for everyone's sake, including Ashton's, that it comes sooner rather than later.

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

Mr. Speaker, when the Conservatives talk about government expenditure, what they are talking about is where they are going to be making cuts, but they do not necessarily want to tell Canadians.

Today, the Conservative finance critic said they would cut the Canada Infrastructure Bank, as an example of what the Conservative Party would cut. The Infrastructure Bank does many projects in all the different regions of Canada. I am wondering if the member could explain why the Conservative Party has made the decision to cut the Infrastructure Bank.

While he is at it, if he does not want to give the details of that, maybe he could give us a sense of some of the other things that the Conservatives would be cutting in their hidden agenda.

[Fraser Tolmie, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, this is right up my alley as a former mayor of the City of Moose Jaw, where we attracted over $1.3 billion, going aggressively to the open market to attract business, to build a school where there would be a community surrounding it. We had no help from the Canada Infrastructure Bank. That was money that was just sitting in a bank that we could not access.

Municipalities spend thousands upon thousands of dollars on bureaucracy and red tape to try to access money that should be going directly to them.

[Laila Goodridge, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, similar to the member's riding, I have one of Canada's military bases in mine. I frequently hear about the impact of the carbon tax and how it is having a real impact on the lives of the people who put their lives on the line each and every day for us.

Could the member explain a little more about what he is hearing in Moose Jaw?

[Fraser Tolmie, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, that is a very interesting question.

The negative impacts of bad policy from the Liberal government are affecting the training hours for preparation for our pilots. That really puts us on our back foot. Our preparedness and readiness to defend our country is diminishing. This needs to be reversed, so I really appreciate my colleague for actually recognizing that. Obviously 15 Wing is very closely related with Cold Lake; a lot of our pilots go up there to finish their training and often stay there.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, happy new year to everyone. It is my first time speaking since 2024 arrived.

I would like to thank the member for his intervention. Thanks to the supply and confidence agreement between the Liberals and the NDP, we have been able to secure a great dental care program for children. I wonder what the member will be saying to his constituents about why he voted against dental care for children in his riding.

[Fraser Tolmie, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, the challenges that are facing my riding include an increase in food bank usage. People are absolutely shocked. They do not know where their spending power is going. They do not know where their money is going.

It is insidious. The carbon tax and the inflation that the Liberal government has imposed on people are a train coming at us. People are going to be renewing their mortgages and going from 2.55% up to 6%. It is going to be a big shock, and it is impacting a lot of constituents in my riding.

[Laila Goodridge, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, it is wonderful to be here today and to be able to speak to the amendment to this bill, an amendment I was very proud to second from our leader of the Conservative Party.

In fact, the Conservative leader, the hon. member for Carleton and Canada's next prime minister, delivered a really clear message to Canadians on Sunday: Axe the tax, build the homes, fix the budget, stop the crime.

I hear from Canadians regularly, from right across Fort McMurray—Cold Lake, who are struggling. What they are seeing are higher grocery prices, higher home heating costs, higher electricity costs, higher gasoline costs and higher mortgage and rental costs, and they are seeing their limited paycheques being spread thinner and thinner.

Unlike the Liberal government, the hard-working people I talk to know that there are consequences, real consequences, for spending beyond their means. They understand that budgets do not balance themselves, and they, in turn, are making sacrifices to accommodate these inflated prices. They are angry when they see the Liberal government out jet-setting and this out-of-touch Prime Minister continuing with out-of-control spending.

The fall economic statement announced $20 billion in inflationary spending, further driving up interest rates, which further makes life harder. A record two million people visited a food bank in a single month. Housing costs have doubled. Mortgage payments are 150% higher than they were before the Prime Minister took office eight years ago. Violent crime is up 39%. Tent cities exist in almost every major city and in small towns across the country. Over 50% of Canadians are less than $200 away from going broke. Canadians who are renewing their mortgages will see an increase from 2% to 6% or even higher. The IMF has warned that Canada is the most at risk in the G7 for a mortgage default crisis, and business insolvencies have increased by 37% this year.

These results of the costly new spending spree can be summed up simply: Prices are up, rents are up, debt is up, taxes are up, and Canadians I talk to every single day have told me that they want the Prime Minister's time to be up. They want to see an election today. They want to make a decision on the leadership of our country, because they know that their finances cannot afford another year of this Prime Minister.

In 2024, for the very first time, we are going to be spending more money on payments to service our debt than we will on health care, more money to finance the reckless spending than on health care. More than $50 billion is going to be spent just on the interest payments to service the debt.

I think that this is shameful, and the Canadians I talk to totally agree. They are not running up their credit cards unless they have no other option, yet the government has options. It is just choosing not to take them.

The reckless spending risks a mortgage meltdown on the $900 billion of mortgages that will renew over the next three years. Personally, I am concerned about the countless people I have heard from who are currently under water on their homes. Their homes are worth less than what they owe to the bank. This is because of the government's relentless attack on Canadian energy, which has had a real impact on the home prices in many communities right across Fort McMurray—Cold Lake.

Our eco-activist environment minister has made no secret of the fact that he not only dislikes Canada's energy industry, having a socialist idea of government transitioning it to something else, but also seems to have a problem with the very concept that we have an energy industry here in Alberta. Quite frankly, there is a serious problem with having a Soviet-style transition away from Canada's energy industry.

I am proud to come from northeastern Alberta and to have grown up in Fort McMurray, seeing the major innovation that has taken place in our energy industry over decades. During this most recent Arctic vortex, just a couple of weeks ago, many energy workers were working outside. They were bundling up. They were going to work when the rest of us were very grateful just to get to stay inside. These brought temperatures across the Prairies of -50° and even lower in some areas, with the wind chill. In those temperatures, frostbite can set in in a matter of minutes, yet these energy workers bundled up so we could stay warm. That is, for the families who could afford to keep the heat on.

The Liberal government has consistently doubled down on charging the carbon tax on home heating in the Prairies, which continues to rachet up the cost of our home heating. We do not have a choice in the Prairies during an Arctic vortex or throughout the winter as to whether we can or cannot heat our homes. If a home is not heated in -50°C, the pipes will freeze. There will be additional costs, and people will die. That is the reality. Frostbite will set in in minutes, yet this government has decided to have a carve-out for Atlantic Canadians, allowing them to have a pause on the carbon tax because of plummeting polls. However, in the Prairies, where we were facing -50°C weather this winter, in those areas we continue to have to pay the carbon tax. Not only do we have to pay this punishing carbon tax, but it is set to continue to increase on April 1. That is no joke.

With plummeting polls, the Liberals are making it so that a Canadian is not a Canadian is not a Canadian. The Canadians I have had the opportunity to chat with thought that this unfair, callous and crass decision of carving out the carbon tax away from Atlantic Canadians was wrong.

Canadians are out of money, and this government is completely out of touch. Conservatives have been and will continue to stand up, clearly asking this costly coalition of the Liberal-NDP government to remove the carbon tax on everything for everyone. The government rejects this, but we continue fighting, so, in the interests of Canadians we have asked for a variety of carve-outs: eliminating the carbon tax for farmers, eliminating the carbon tax on first nations, eliminating the carbon tax on home heating and many others. However, make no mistake, a Conservative government will axe the carbon tax on everything for everyone. This is common sense. Canadians need relief, not higher taxes.

After eight years, the Liberal Prime Minister does not understand that if we tax the farmer who grows the food, the trucker who transports the food and the store that sells the food, we ultimately tax the family buying it. I have talked to moms who are having to make hard choices as to whether they put extra water in their babies' formula just so they can afford to feed their families. I talk to families who are struggling as to whether they are going to continue bundling extra sweaters onto their children, because they cannot afford to turn the temperature in their home up an extra degree or two to keep them nice and toasty.

This is why the Conservative Party introduced a very common-sense bill, Bill C-234, to axe the tax on farmers. It would have made the cost of food more affordable for everyone by saving farmers $978 million between now and 2030. It passed through the House of Commons, yet the unelected Senate gutted our common-sense bill under pressure from the PMO and the eco-activist environment minister. In fact, the same environment minister threatened to quit if there was another carve-out. The same environment minister even admitted during an environment committee meeting that he had called up to six senators to pressure them into voting to keep the tax on farmers. That is shameful. Now, all Canadians will have to pay a higher price at the grocery store.

Common sense means getting rid of the carbon tax to lower the cost of living for all Canadians. It means capping reckless spending and getting rid of waste to balance the budget and lower inflation and interest rates. Common sense means cutting tax to make hard work pay off again. This NDP-Liberal government needs to rein in spending and balance the budget so that inflation and interest rates can come down and Canadians can keep more of the money they work so hard for. They need relief.

It is clear that after eight years of waste and incompetence, the NDP-Liberal government is not worth the cost. Canada's Conservatives have provided a clear, common-sense plan to reverse course and undo the damage the Liberals have done. Only common-sense Conservatives can be trusted to axe the tax, balance the budget, bring down inflation and interest rates, and build homes, not bureaucracy, to bring lower prices to Canadians. I'll say it again: Axe the tax, build the homes, fix the budget and stop the crime.