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Budget Implementation Bill, 2022, No. 1

Second Reading--Debate

June 14, 2022


Hon. Lucie Moncion [ + ]

As I said, the pleasure will last longer.

I will go back to the improvements to the bill.

Part 1 of Bill C-19 expands the eligibility criteria for impairment in mental functions as well as the essential therapy category of the Disability Tax Credit. This is something I said just before we stopped, so I’m just repeating this portion before I move on.

An amendment adopted unanimously makes it so that those who are diagnosed with Type 1 diabetes automatically would qualify for the Canada disability benefit. This is a great improvement to the bill, and I’m grateful it was supported by all parties in the House of Commons.

Next is the taxation of wine. Listening to the concerns of stakeholders, the other place adopted an amendment that would ensure that honey, wine and ciders are exempt from the excise tax and that the repeal of the excise tax exemption applies after June 29, 2022.

The next amendment concerns a measure in Part 1 that would allow registered charities to enter into charitable partnerships with organizations that are not qualified donees. That measure is a direct response to Bill S-216, the effective and accountable charities act, which is another piece of legislation sponsored by our colleague Senator Omidvar. To truly respect the intent of this bill and put an end to the direction and control regime, an amendment that was unanimously adopted removes the reference to the prescribed conditions and deletes the section entitled “qualifying disbursement.” These amendments, although very technical, were of paramount concern to the stakeholders who appeared before the Finance Committee of the House of Commons.

Now we’re going to look at the Senate’s contribution to the bill.

I would like to take this opportunity to acknowledge the Senate’s accomplishments and some of our colleagues’ interventions on Bill C-19. I am proud that the work of the upper chamber and that of my colleagues is a source of inspiration for government bills. It is not a first, but this budget bill contains many measures that were developed primarily by senators.

As I mentioned, I am thinking in particular of Senator Omidvar’s two bills, Bill S-216, the Effective and Accountable Charities Act, and Bill S-217, the Frozen Assets Repurposing Act.

I would also like to highlight the proposed amendments to the Parliament of Canada Act, which demonstrate the government’s commitment to supporting a transition to a more independent and less partisan Senate.

Also, the budget implementation act corrects a drafting error in the Old Age Security Act that was raised during our discussions on Bill C-12. Senator Quinn and our Canadian Senators Group colleagues played an important role in making this happen. The amendment makes it clear that the one-time payment made in August 2021 to seniors aged 75 and older is exempt from the Guaranteed Income Supplement income test.

Lastly, the amendments to the Competition Act are implementing the work of our dearly esteemed and former colleague Senator Wetston. I note that the last amendment to the Competition Act occurred in 2009, and it was part of Bill C-10, that year’s Budget Implementation Act. In the context of the ever-evolving advancements in technology, more particularly the emergence of digital platforms, in October 2021, Senator Wetston invited Canadians to participate in a consultation in the attempt to find a path forward for a competition law in Canada.

Based on these consultations, Senator Wetston tried to identify potential amendments to the law based on areas of substantial consensus.

Division 15 of Part 5 is greatly inspired by his work, and I am grateful that his important legacy is being recognized by this government.

The proposed amendments are also the product of an ongoing policy dialogue with stakeholders in the Competition Bureau and, in part, informed by the testimonies made by stakeholders in the Standing Committee on Industry and Technology.

The Competition Act plays an essential role in protecting consumers and promoting fair, dynamic markets. As I said, the act has not been modified in any significant way since 2009, which gives us reason to wonder how well suited it is to today’s economy.

That is why the government decided on a two-stage approach to modernizing it. The targeted amendments proposed in Bill C-19 are the first stage and will enable Canada to align itself with international best practices and produce immediate, tangible benefits for consumers and businesses. The government will then conduct a review that will lead to further reforms and even more transformative change.

For consumers, a competitive market means more choice at lower prices. That’s why the government wants to make more practices subject to Competition Bureau review, which will discourage anti-competitive and deceptive practices. The amendments clarify practices that harm consumers, such as drip pricing.

For workers, a competitive market stimulates the economy and creates well-paid jobs. When employers have to compete on salary and working conditions, workers benefit. These amendments will explicitly criminalize agreements between employers.

As for businesses, they benefit from free and fair competition that allows innovation and drive to flourish. Bill C-19 fosters such an environment by improving access to justice for businesses through the Competition Tribunal for abuse of dominance cases and by expanding the bureau’s powers and the scope of activities subject to review through additional proportionate penalties.

In general, the government’s proposed amendments will enhance the Competition Bureau’s investigative powers, criminalize wage fixing and related agreements, increase maximum fines and administrative monetary penalties, clarify that incomplete price disclosure is a false or misleading representation, expand the definition of business practices that may constitute abuse of dominance, allow private access to the Competition Tribunal to remedy an abuse of dominance, and improve the effectiveness of merger notification requirements and other provisions.

Even with a budget implementation bill, our work can make a difference. I would like to thank all the senators who contributed to its development.

In closing, honourable senators, these are just a few of the important measures included in Bill C-19. They will help implement many of the commitments that the government made in Budget 2022 to grow Canada’s economy and make life more affordable for Canadians.

I hope my honourable colleagues will join me in supporting this bill.

Thank you for your attention.

Would the senator agree to answer a question?

Senator Moncion [ + ]

Yes.

Bill C-19 would provide $750 million in funding for public transit and housing. Do you have some idea of how the money will be divided between the two?

As far as housing is concerned, there is an unbelievable shortage in every category, but especially for single people and families. Was this bill drafted with the intention of addressing this issue and, more specifically, the intention of providing larger homes for families and smaller homes for seniors?

My past profession brings me to clarify something. I would like the Hansard to be corrected to reflect that it was the Union des municipalités du Québec that wrote us a letter, not the Fédération québécoise des municipalités.

Senator Moncion [ + ]

Thank you for the question. As for the $750 million in funding, the first condition attached to this transfer to the provinces is that the funding has to be matched. In other words, the provinces also have to chip in $750 million.

The division between public transit and housing will be made based on the financial losses associated with public transit, with the remainder going to housing. We expect that the bulk of the money will go toward housing.

There is also a responsibility at the municipal level, as municipalities are being asked to work with local stakeholders, the provincial government and the federal government to address demand for affordable housing in the different categories that you mentioned. I will correct the acronyms of the different groups in the speech. Thank you for your question.

Municipalities are very important because they initiate the projects, especially social housing projects, with community housing associations. With CMHC, there used to be a municipal contribution of 20% to 25%. In recent years, and we will see the impact of all of this, the municipalities’ participation has increased and is now above 45%. That’s why they aren’t building housing anymore. Do you think that the municipalities’ financial participation will be brought back down to 25%?

Senator Moncion [ + ]

Thank you for the question. I can check, Senator Forest. What I can tell you is that that information was not in the bill, but your question could be put to the government for clarification. I am certain that someone from my office is listening and could potentially provide you with an answer.

The Hon. the Speaker [ + ]

Honourable senators, it is now six o’clock. Pursuant to rule 3-3(1), I’m obliged to leave the chair until eight o’clock unless there is leave that the sitting continue. If you wish the sitting to be suspended, please say “suspend.”

The Hon. the Speaker [ + ]

I hear a “suspend.” The sitting is suspended until 8 p.m.

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