Moved third reading of Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures.

He said: Honourable senators, I rise today to speak at third reading of Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures. I endeavoured to keep this speech shorter than the one I gave at second reading, for the sake of all of you, and for me. Unlike previously advertised on Friday morning, this will not be a 45-minute speech. I’m sorry, though, to have kept you all waiting for part two.

Colleagues, my intention last time was to explain, simply, why I believed Bill C-97 deserved consideration and support and why I still believe this budget implementation act is a good one. This time around, I intend to explain why I believe you should all vote in its favour and pass it, as it is, without amendment. I also want to ensure I carefully respond to the questions I received at second reading to which I was unable to provide answers at the time. This is my first June as a senator, so it’s my first experience here seeing so many competing priorities in terms of government legislation. It has indeed been interesting to see so much lively debate.

Honourable senators, at second reading, I spoke about our fiscal health, bolstered by our low debt-to-GDP ratio and high employment numbers. I also spoke in defence of deficit spending and the need for it to support economic growth. I suggested there are ways both to stimulate economic growth and pay down the deficit. It is not a binary issue.

As I said last Monday, whether you are a proponent of deficit spending or balanced budgets, the fact is that Canada’s economy is strong and healthy.

Bill C-97 seeks to introduce measures and amend existing ones to grow the economy further in a number of ways. I outlined some of the highlights at second reading. I won’t go over them again. Don’t worry.

As I said a week ago, this is a strong budget. That is something I say with confidence and not just as the sponsor. I also say it as a Canadian, one concerned with how our domestic policies impact all of us lucky enough to call this country home and how these policies are viewed outside our borders. Like it or not, it does matter what our partners in other nations think of us. That is why I am so proud of the strength of our economy and our low debt-to-GDP ratio. As I said at second reading, our partners around the world have taken notice and envy it. We do not get to such a positive point, though, without spending money to support economic growth.

That is one of the points on which the bill’s critic, Senator Marshall, and I differed in our respective versions of the story. We both discussed the promise made by the current government in 2015 to run modest deficits and balance the budget by the end of its mandate. However, I would not characterize that not happening as the government abandoning its promise. No government, not Liberal, not Conservatives, not a potential future NDP government, can grow the economy and single-mindedly pursue, at the same time, balanced budgets.

As I explained, governments of all stripes have tried in the past with little success. That is not to say that I am a proponent of out-of-control spending, but I don’t think that’s what’s happening. When debt is accrued responsibly through measured, smart decisions, it is an investment in our future and of those who follow us. In summary, deficits do not foretell the coming of the apocalypse.

Our colleague, Senator Marshall, referenced money laundering in her speech. We all know of the report from May out of British Columbia about the staggering amount of laundered money that seeped into the economy of that province last year — more than $7 billion, in fact. Worse still, that places British Columbia fourth, behind Alberta, Ontario, and the Prairie provinces. The report that uncovered the depth of the problem was prepared by British Columbia’s Expert Panel on Money Laundering, which was chaired by Professor Maureen Maloney. Evidently, money laundering is a national concern.

The report estimated that, in 2018, $40 billion worth of proceeds of crime seeped into the Canadian economy.

Colleagues, we can surely all agree that, so far, Canada’s laws haven’t gone far enough in tackling what is a critical issue.

Senator Wetston and Senator Downe have been especially strong in this chamber on the subject and on the corresponding matter of beneficial ownership. In recognition of the very real impact dirty money has on Canadians — for example, increased house prices — Bill C-97 seeks to strengthen Canada’s anti-money-laundering rules. The suite of amendments includes changes to the Canada Business Corporations Act, the Criminal Code, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and the Seized Property Management Act.

These amendments, once Bill C-97 passes, will improve timely access to beneficial ownership information; add “recklessness” to the offence of money laundering, which would have the effect of criminally punishing people who, knowing the money might be illegal, moved money on others’ behalf despite the potential criminal nature of doing so; add the Competition Bureau and Revenu Québec to the list of entities entitled to financial intelligence information from the Financial Transactions and Reports Analysis Centre of Canada, FINTRAC; broaden access to specialized asset-management services and increase transparency in administrative monetary penalty procedures and clarify confidentiality of proceedings. That last point, covered by clause 111 of Bill C-97, will ensure that any regulated entity found to have committed an infraction under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act will be named publicly, as will their financial penalty, by FINTRAC.

This is an especially important change. We cannot underestimate the power of “naming and shaming” when it comes to ensuring companies follow the rules. In that spirit, just last week, the Financial Services Committee of the United States House of Representatives passed the Corporate Transparency Act. While it still must make its way through the rest of the legislative process, the Corporate Transparency Act is intended to require companies to publicly disclose their true beneficial owners to FinCEN, the United States Treasury Department’s Financial Crimes Enforcement Network. Corporations would need to disclose those names as soon as the company is established and would also need to provide FinCEN annually with updated lists of beneficial owners to ensure the public registry is accurate. The intention is to make it much more difficult for criminals and other bad actors to launder their ill-gotten gains through anonymous shell companies.

It is my hope that Parliament will soon look at implementing similar legislation in Canada.

To further combat the far-reaching problem of money laundering here at home, the government very recently committed new funding for the RCMP. Minister of Finance Bill Morneau and Minister of Border Security and Organized Crime Bill Blair announced on Thursday that the RCMP will receive $10 million for improved technology that will help the RCMP with its investigations.

British Columbia’s own Finance Minister, Carole James, welcomed the announcement but stressed that there needs to be more of a focus on enforcement.

On Bill C-97 more generally, Senator Marshall told us a great deal about witnesses at the pre-study committees who did not support various provisions. You may be surprised to learn that there actually were some witnesses who liked what they saw in Bill C-97; many, in fact.

I do agree with Senator Marshall that the meeting on May 30 of our Standing Senate Committee on National Finance regarding zero-emission vehicles was certainly interesting. Our colleague pointed out that, when asked about their own vehicles, the witnesses supportive of the bill’s provisions all indicated that they do not personally own electric cars.

Honourable senators, neither do I, but I am certainly in favour of the relevant measures. I just wanted to make it clear that these witnesses all cited their individual lack of access to charging stations as their reason for not owning an electric vehicle. That speaks to the need to expand, nationally, the network of charging stations — beyond the large urban centres — not to a lack of support for zero-emission vehicles. That is a big challenge, of course, in a large country.

That need is addressed in Bill C-97, which will expand tax support for charging stations. Senator Marshall said that the meeting had “sparked” — that was your word, Senator Marshall — her interest in having an electric vehicle. Perhaps she and I can go car shopping together.

On the subject of our Standing Senate Committee on National Finance, I want to reiterate what I said at second reading: that I very genuinely thank every one of my fellow members for their thoughtful comments and participation during the pre-study of this bill. This goes, too, for our clause-by-clause consideration of the bill last Wednesday. As the sponsor of this bill, I am particularly pleased that it passed committee stage without amendment. While our chair, Senator Mockler, reported on Thursday that the National Finance Committee did not amend the bill, we did include observations on support for Canadian journalism and regulatory modernization.

Our chair, Senator Mockler, reported on Thursday that we included observations endorsed by a majority of committee members — not by all but by a majority. I appreciated the frank, open and respectful discussion we had about these observations, and I want to say that I support them wholeheartedly.

With regard to journalism, we all know the particular attention the relevant provisions in the budget implementation act have received. I outlined some of those concerns in my second reading speech, especially as they relate to the fear of reduced press freedom. Our committee’s dominant concern is that while witnesses expressed satisfaction with the amount of money promised by the government — $595 million over five years — it is still too little, too late and may arrive too slowly to save publications struggling now. Without increasing the total aid envelope — and, of course, the Senate has no authority to do this — our committee urges the government to make changes to the program structure. There has been much talk from all corners over how best to achieve the same goal: saving our dying print media industry.

We all agree, regardless of how we do it, that journalism is vital to the very foundation of our democracy. We can debate and debate all we want as parliamentarians, but without a strong press to report to the people on our deliberations every day on the matters that impact them, there is no point in any of us being here.

The strength and integrity of our democratic system relies on journalists being properly equipped to do their jobs. And that is just as important a job whether it is for a major publication with national reach or a small paper headquartered in a rural area.

The latter is, in fact, even more crucial. I recently had the opportunity to read this year’s winner of the Dalton Camp Award for best essay, by a young man named Samuel Piccolo. The essay is called “A Sleepless Year in a Sleepy Town.” I thank my colleague, Senator Marty Deacon, for bringing it to my attention and encourage all of you to read it.

In it, Mr. Piccolo describes his year as the principal reporter at The Voice of Pelham, a community paper based in the Niagara Region. He begins by saying of the publication that he doesn’t “usually read this paper” because “local rags are populated” with seemingly insignificant stories that “serious people don’t read.” He says that he believes “real news only appears in big dailies.”

He came to the realization that community papers do so much more than for what they are given credit when he learned of Town Hall’s “frosty relationship” with the paper due to its “real, critical coverage.”

And the people of Pelham appreciate the voice. They “relish this uncompromising local coverage” because, regardless of the place, as Mr. Piccolo states, “These papers make a real difference to life in town . . . .”

And this is the point, colleagues, why it is so critically important to save the print media industry, and not just in big cities. Community papers, often locally owned, are completely independent. They are the lifeblood of small towns across our country because they tell the stories of the people actually reading them.

That brings me to the next observation of our committee, on regulatory modernization. The concern here rests with another type of newspaper: the official newspaper of the Government of Canada, the Canada Gazette. As we know, it is in this publication, since 1841, where the government of the day has published:

. . . new statutes, new and proposed regulations and various government and public notices.

For 178 years, the Canada Gazette has, like all newspapers, kept Canadians informed about the decisions and deliberations of their public officials. Ultimately, the purpose of the Canada Gazette is to ensure Canadians know what actions are being taken on their behalf and to give them a voice.

The Canada Gazette is a vital element of the public consultation process which, when insufficient, does not go over well with Canadians — nor should it.

Our committee noted that witnesses expressed “dissatisfaction” in some cases regarding the extent, or lack thereof, of stakeholder consultation by the government when it came to amendments proposed in Bill C-97. I credit Senator Marshall for raising this item in committee.

Along with concerns over the Canada Gazette being shut down altogether, in our observation our committee urged the government to ensure that all regulatory changes are published in the Gazette with enough time for relevant stakeholders to study them and thus participate more meaningfully in the consultation process. It is not enough for government to consult with the public. For it to be meaningful, stakeholders must be provided the tools necessary to participate fully.

This brings me to my next point.

As we heard quite strongly from the members of the Standing Committee on Aboriginal Peoples, public consultation by the government was also a concern for them and for Indigenous groups when it came to C-97.

At second reading I spoke very much in favour of the provision to dissolve the Department of Indigenous and Northern Affairs and to formally establish the Department of Indigenous Services and the Department of Crown-Indigenous Relations and Northern Affairs. I detailed how this decision was announced and implemented almost two years ago, based on a recommendation of the Royal Commission on Aboriginal Peoples from 23 years ago. I said that these two departments have been fully functional since 2017, and thus what is in the Budget Implementation Act is not coming out of the blue. This is, however, where the problem raised by the Aboriginal Peoples Committee rests. As referenced in the Committee’s report, tabled on June 6, a letter was sent to the committee from the Ministers of Indigenous Services and Crown-Indigenous Relations, Seamus O’Regan and Carolyn Bennett respectively. The letter stated that the ministers sought the advice of Indigenous partners through more than 100 engagement sessions since February 2018.

Among the partners to which Minister O’Regan and Minister Bennett referred was the Assembly of First Nations. The AFN, the Assembly of Manitoba Chiefs and the Onion Lake Cree Nation all testified before the committee. According to the report of the committee, each group indicated that:

. . . there was a lack of meaningful consultation on the creation of the two departments and a potential third ministry.

Further, the AFN stated that:

. . . there has been insufficient time for First Nations governments and representative organizations to thoroughly review and analyze the Bill, obtain legal opinions on the matters raised, and prepare submissions.

The feeling that Indigenous peoples were not adequately consulted led the committee to recommend that Division 25 of Part 4 be removed altogether from Bill C-97 and reintroduced as a stand-alone bill.

It is clear that I do not support this recommendation. However, I do support the committee’s second recommendation that Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada:

. . . undertake additional consultations with Indigenous peoples, communities, and organizations . . . .

More than 100 engagement sessions were held, but, ultimately, it came as a surprise to Indigenous organizations that the creation of these two departments would be codified in Bill C-97.

I am confident that the government is serious about bolstering our most important relationship. I have no doubt about that, but consultation must be thorough as well as meaningful.

Finally, honourable senators, I wish to address the questions I received from senators at second reading to which I was unable, in my view, to provide what I would consider adequate answers on the spot.

Senator Patterson made thoughtful comments and asked questions regarding the subject on which I just spoke: the creation of Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada.

Senator Lankin asked me about pension reform, specifically how it relates to bankruptcy and whether the National Finance Committee studied this subject. As I said at the time, yes, the National Finance Committee did hear witnesses on May 28.

In your comments, Senator Lankin, you joked about your question involving the one subject I did not cover in my magnum opus speech. Well, I must admit that this was one National Finance Committee meeting I was unable to attend, but I did read the transcript. It is a serious subject. All of us will retire someday, of course, or again, as is the case for many of us here.

Senator, at this meeting of the National Finance Committee on the specific issue of pension security as it relates to corporate insolvency, the committee did hear concerns. The Chief Public Policy Officer of the Canadian Association for Retired Persons, Ms. Laura Tamblyn Watts, echoed what you said in your comment. Ms. Watts stated that the measures in Bill C-97, “are not adequate,” but also commended the government, “. . . for its first steps towards insolvency and pension reform.”

Perhaps the provisions in this particular budget implementation act do not go far enough, but a slower start is certainly better than no start at all. That being said, the government committed in Budget 2018 to take a whole-of-government, evidence-based approach toward addressing retirement security for Canadians. In the interest of public consultation — as we all agree, this is important — the government held nationwide consultation in late 2018 with a range of interested Canadians and received more than 4,400 replies.

As a result, Bill C-97 amends the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Canada Business Corporations Act and the Pension Benefits Standards Act, 1985. The changes to these acts ensure that insolvency proceedings are fairer and more transparent for pensioners and workers; that courts will have the power to set aside executive bonuses; that parties act in good faith to ensure pensioners and workers are treated fairly; and that support for pension research and security continues through investments in the National Pension Hub and the Global Risk Institute.

Senator Omidvar was next. She asked about remarks I made in my speech on the government committing to providing funding to support up to 40,000 student work-integrated learning opportunities per year by 2023-24. She asked whether we are essentially talking about internships. The answer is that “work-integrated learning,” as laid out in Budget 2019, includes internships, but also everything from formal co-op and mentorship programs to research projects. Basically, work-integrated learning is any opportunity in which a student gets to apply what they have learned in the classroom to real-world situations. These opportunities help young people to practically apply the theory they learned in school, and provides them with invaluable experience to help them find meaningful jobs after graduation.

Last, but not least — and she’s not here right now — Senator Martin asked about the financial implications of increased irregular migration at Canada’s border with the United States. At second reading, I said one of the goals of the changes in Bill C-97 to the Immigration and Refugee Protection Act is to deter irregular migration, especially in light of numbers that began to rise in 2017. In fact, in 2018 there was a 95 per cent increase in the number of irregular claims processed by the Immigration and Refugee Board compared to 2017.

From January to March of 2019, however, the number of people who crossed the Canada-United States border irregularly to make refugee claims dropped from 5,588 to 2,919 when compared to the same period last year.

As I said in my second reading speech, all of these people came to Canada because we are known globally as an open, welcoming and compassionate society. Still, borders and rules must be respected — both for the sake of security and the integrity of the system. To answer Senator Martin’s question: In Budget 2019, the government invested $1.18 billion to help maintain the fairness of our asylum system by processing up to 50,000 claims per year and more quickly removing those not genuinely seeking refuge.

As a final point, with regard to the comment about the Safe Third Country Agreement with the United States not being addressed in the bill, what I can say is that the agreement is one that is constantly being looked at and re-evaluated by officials on both sides of the border. The world is not the same place now that it was when the agreement was signed in 2002, nor when it came into effect in 2004.

Honourable colleagues, I promised at the beginning of my speech that this one would be shorter than the last. It’s a promise I intend to keep. I wish to finish by saying how much I appreciated and, yes, at times even enjoyed the opportunity to sponsor my first piece of legislation as a senator.

Again, I thank all of my more experienced colleagues for their support during this process, and the staff of our National Finance Committee for their hard work and dedication. I also wish to extend my sincere appreciation to the officials of the many federal departments — at least 17 — who worked so hard on the policies that underpin this legislation, to brief us and appear as witnesses. In particular, I thank the officials of the Department of Finance for their dedication.

As a former public servant myself, I have had the honour of working with Canada’s best and brightest for most of my life and I still do. I have said it before, and I will continue to do so: Our public service is the very best in the world.

I thank everyone here once again for your attention and patience. Thank you, dear colleagues.