:
Madam Speaker, I am thankful for this opportunity to speak about the government-wide main estimates for 2021-22.
[Translation]
As members know, on February 25, the hon. tabled, on behalf of the , the annual departmental plans and the main estimates, 2021-22.
[English]
These main estimates have been studied and last week the put forward the motion that the main estimates, less the amounts voted in the interim supply, be approved by this House. Today, I would like to explain why this is so important and the steps the government has taken to ensure transparency and accountability in government spending.
As Canadians continue to fight COVID‑19 and its devastating impacts, the main estimates set out the government's requests for the financing needed to fund its ongoing operations in the year ahead.
[Translation]
As we all know, when the COVID‑19 pandemic hit, it plunged our country into our worst recession since the Great Depression. Tens of thousands of businesses closed down, and jobs and incomes were lost all across the country. The hardest hit were seniors, women, young people, racialized communities, low-income workers and small businesses, especially in the tourism and hospitality industry.
The pandemic took the lives of too many Canadians.
[English]
An essential part of Canada's fight against COVID‑19 has been the unprecedented support made available to Canadians and Canadian businesses by the government. We knew Canadians needed a lifeline to get through the COVID‑19 storm, so we launched programs to help our citizens, like the Canada emergency response benefit, the Canada emergency student benefit, the Canada emergency wage subsidy and targeted support for regions, economic sectors and not-for-profit organizations. This approach has worked, but the storm is not over. Canadians continue to need the government's ongoing support as businesses reopen and the economy is repaired and built back better for everyone. The funds requested in these main estimates will help the government do just that.
[Translation]
Government organizations are seeking funds to continue delivering already approved programs and services and to make investments to support Canadians during the pandemic and create the right conditions for a successful economic recovery. The funds requested reflect our ongoing commitment to investing in Canada's pandemic response, from economic support for individuals and businesses to paying for vaccines, enhancing support for mental health tools, virtual health care and more.
The main estimates provide information about the $342.2 billion in proposed expenditures for 123 organizations. That amount can be broken down into $141.9 billion for voted expenditures and $200.3 billion for statutory expenditures.
Statutory expenditures have already been authorized in existing legislation, such as the COVID‑19 Emergency Response Act and the Canada Recovery Benefits Act, so they are presented in the budget for information only.
[English]
In March, roughly $59 billion of the $141.9 billion in voted expenditures was approved to cover the requirements of organizations for the first three months of the fiscal year, including to continue the government's key operations, and for COVID‑19 response measures and emergency reports.
Of the total $342.2 billion being requested in the main estimates, just over $22 billion is related to the COVID‑19 pandemic response, split almost evenly between voted and statutory expenditures. This includes just over $10 billion for the Canada recovery benefit, the Canada recovery sickness benefit and the Canada recovery caregiving benefit.
Other significant changes in statutory spending from last year's main estimates include updates to major transfer payments, such as elderly benefits, the Canada health transfer and an increased climate action incentive payment published in the fall economic statement 2020.
Let me now focus on some of the larger organizations in these estimates. There are six organizations seeking more than $5 billion each in voted budgetary expenditures.
[Translation]
One of these is the Public Health Agency of Canada, which is asking Parliament for authorization to spend $8.7 billion. PHAC will use the money to continue its important work helping Canadians deal with the pandemic by investing in COVID‑19 vaccines, therapeutic products, medical equipment and PPE, as well as closing gaps in biomanufacturing.
PHAC is also responsible for maintaining quarantine facilities funded by the federal government, strengthening its border and health travel program and helping municipalities offer safe voluntary isolation sites to prevent the virus from spreading further.
Although the main estimates reflect government spending in response to the COVID‑19 pandemic, they also demonstrate ongoing support for other priorities that are crucial to Canadians' interests, such as national security and defence.
[English]
The Department of National Defence is presenting $22.8 billion in voted expenditures in the 2021-22 main estimates, which include investments in the “Strong, Secure, Engaged” defence policy, as well as important funding for equipment upgrades.
There is also the Department of Indigenous Services, which is seeking $13.4 billion. Included for Indigenous Services Canada in the estimates is a proposed net increase of $508.6 million to improve access to safe, clean drinking water in first nations communities. In addition, proposed spending includes increases of $122.6 million for supportive care in indigenous communities and $104.7 million for education programs at the elementary, secondary and post-secondary levels.
The fourth organization I will highlight is the Treasury Board of Canada Secretariat, which is seeking $7 billion through these main estimates.
[Translation]
These planned expenditures include a number of votes that are centrally managed by Treasury Board ministers and total nearly $3.7 billion. The funds are allocated to federal organizations and facilitate the Treasury Board's roles as employer, management board and budget office of the government. Just over $3 billion is also set aside for its responsibilities as an employer.
These expenditures will be used to make payments under the public service pension, benefits and insurance plans, including the employer's contribution to health, income maintenance and life insurance premiums.
Finally, the main estimates of the Treasury Board Secretariat also include a net increase of $27 million for program spending. The main objective of this increase is to improve diversity and inclusion in the public service and to ensure that the Canadian Digital Service can continue to provide critical digital products and services related to the COVID-19 pandemic.
[English]
Another important priority for the government is international development and diplomacy. Through the proposed funding of the $6.3 billion in these estimates, Global Affairs Canada will continue to implement Canada's feminist foreign policy and support actions to reduce poverty and fragility in developing countries. Global Affairs Canada will also work with global partners to promote trade and continue to strengthen its consular program.
Hon. colleagues, Canadians also care about how we treat our veterans and how we want the government to honour their service. These men and women are the veterans who served to protect the very rights and freedoms we enjoy today. With the proposed funding in these estimates of $6.2 billion, Veterans Affairs Canada will continue to deliver important services and ensure benefit programs continue to meet the needs of our veterans.
[Translation]
I would like to mention a couple of other organizations that provide essential services to Canadians: the Canada Border Services Agency, or CBSA, and the Canada Mortgage and Housing Corporation. The CBSA provides border services that support national security policies and facilitates the flow of people and goods across the border. To do this, it is requesting just over $1.8 billion.
The Canada Mortgage and Housing Corporation helps Canadians meet their housing needs. For example, it works with the provinces and territories, first nations, as well as the private and non-profit sectors to improve access to affordable housing. It is requesting approximately $3.3 billion to carry out its activities.
[English]
We would also like to assure Canadians that their government is committed to the principles of openness, transparency and accountability, especially in times of rapid change. Let me turn to that now, beginning with the overall estimates process, of which these main estimates are a part.
In our system of Parliament, the estimates are crucial to ensuring transparency and accountability in the government’s use of public money. The main estimates, supplementary estimates, departmental plans and departmental results reports, in conjunction with the public accounts, all help parliamentarians scrutinize government spending. I cannot overstate how important this information is to the functioning of our system of government. In fact, accountability is predicated on parliamentarians knowing how public funds are being spent, so that they can hold the government to account for its actions.
[Translation]
The government fully recognizes its responsibility and its commitment to accountability to Canadians through the members of Parliament who represent them. This commitment has taken on a special significance since the outbreak of the COVID‑19 pandemic and the emergency measures taken by the government.
Due to the unprecedented levels of spending in response to the pandemic, the government provided Parliament information that went beyond what is normally presented. For example, in the spring of 2020, the began submitting to the Standing Committee on Finance a biweekly report on statutory spending in response to the pandemic. As for the estimates, we are providing side reports, with a detailed list of statutory authorities and an online annex on estimated pandemic-related expenditures.
[English]
There is also a complete breakdown of these planned expenditures by standard object, such as personnel, professional services, transfer payments and more. This information on planned spending on the COVID-19 response, along with estimated expenditures, is also publicly available on GC InfoBase, an easy-to-use online tool, and through the open government portal. By developing these datasets and digital tools, we are demonstrating our commitment to providing parliamentarians and Canadians with more information on where public funds are going and how they are being spent. To close the loop on expenditure reporting for the fiscal year, the government will also report on actual expenditures and results in the public accounts and departmental results reports in the fall.
Hon. colleagues, the government is committed to being open and transparent with Canadians and their representatives, particularly during this pandemic. We have introduced special measures to help our citizens, businesses and communities from all regions during these challenging times. Many of these measures were passed in Parliament through emergency legislation and continue to help Canadians through the crisis. Again, the full disclosure of all these is paramount for the government.
[Translation]
I should also mention part III of the main estimates, the departmental plans and the departmental results reports, which work together and have been part of the government's efforts to improve accountability to Parliament for the last 25 years.
In recent years, the government has tabled the main estimates and the departmental plans at about the same time.
The departmental plans show how each department plans to achieve results and provide further details on the resources requested in the main estimates. They also establish a link between program performance, expected results, commitments set out in the ministers' mandate letters, and government priorities. Departmental plans are organized according to core responsibilities and expected results, which are the baseline against which organizations monitor and report on their end-of-year performance.
[English]
That reporting and tracking is done through the department's subsequent departmental results reports, which are tabled in Parliament after the end of the fiscal year, at around the same time as the public accounts. All this detailed information is available on GC InfoBase, as well as departmental web sites. These reporting mechanisms ensure parliamentarians and Canadians can easily track our priorities and plan spending to see how we are achieving results.
I have gone into some detail describing the monies requested through these main estimates, why it is important and how we are ensuring transparency and accountability with respect to government spending, but let me come back to the key point. The story of the main estimates 2021-22 is more than just a story about numbers and expenditure management. It is a story about Canadians looking after each other.
We all know how hard the pandemic has hit Canadians and their families. It has been a matter of life and death for some, financial hardship for many and protecting our loved ones for us all. That is why the government acted quickly over the past year to provide financial help for individuals, businesses and the health care system.
[Translation]
A good number of these measures are ongoing in 2021.
These measures placed real pressure on many departments, which must continue to provide these emergency measures in addition to their core programs and services.
As parliamentarians, our work consists in ensuring that government organizations have the financial resources required to do the work that Canadians expect of them. Departments must have the financial capacity to continue protecting Canadians, and the funding proposed in these estimates will let them do that this upcoming fiscal year.
In closing, in the upcoming year, we will face ongoing and new challenges. The main estimates attest to the government's commitment to address these challenges while continuing to work on other national priorities.
[English]
It has been a long journey, and if COVID-19 has taught us anything, it is that we are in this together.
I would like to close my remarks by thanking my hon. colleagues on all sides of the House for their ongoing collaboration as we work together to help Canadians during these difficult times. As we finish the fight against COVID-19 and rebuild a resilient, economic recovery that creates jobs and growth for our people, I know that the government can count on members' support.
:
Madam Speaker, I will be splitting my time with the member for .
I mentioned in my question earlier that the reason we are here today is to discuss the estimates, specifically as they relate to transport. My message here today is about the overwhelming incompetence of the government regarding transport. The estimates here today are just a symptom of that. There have been so many instances in which the government has not delivered on the file of transport.
Regarding airlines, for months the airline sector waited for a plan from the government. I have gone through the timeline before and will attempt to go through it briefly today. On March 18, 2020, the international border closed. On March 21, Porter Airlines suspended operations. On March 23, Sunwing Airlines suspended operations. There was no plan from the government.
On April 1, Air Transat concluded repatriation operations. On April 18, Air Transat suspended flights. On April 20, Air Canada concluded repatriation operations. There was still no plan. On June 30, Air Canada announced it was discontinuing services to 30 regional routes and closed eight stations. On July 17, WestJet concluded its repatriation operations. On July 23, Air Transat restored operations. On June 24, WestJet laid off 3,333 employees through restructuring. There was still no plan.
On July 31, Air Canada posted $1.7 billion in quarterly losses. On August 14, the Government of Canada introduced flight plans. On September 1, Nav Canada increased fees by 29.5%. There was still no plan. On September 23, Air Canada announced a COVID-19 testing pilot project at Toronto Pearson Airport. On October 1, Air Canada ordered approved rapid tests. There was still no plan. On October 14, WestJet suspended routes to Atlantic Canada. On November 2, the Calgary Airport quarantine and testing projects began. There was still no plan. On November 6, Sunwing Airlines restored operations briefly, but there was still no plan.
We have seen this continue through the fall, the winter and now the spring with no plan from the government. However, promises were made. Promises were made by the Liberals on March 10, 2020. When asked what the government could do to help airlines, the said, “What we’re looking at is how can we mitigate the impacts while making sure that we can have, still, a strong summer season, and that we can really bounce back.” We did not see anything.
On March 19, 2020, then finance minister Bill Morneau said, “We will be refining what we’ve done, we will be thinking about next steps. We are working hard with the airline sector.” Still, there was no plan. On March 20, the 's government promised a plan to help the industry that would follow an $82 billion aid package that was announced earlier that week, yet still nothing happened.
For months we heard empty promises from the government. Devastating actions were occurring in the airline sector, yet there was no plan. Finally, when we saw not even plans, but deals with specific airlines begin to emerge as brought forward previously in the House by the member for , we found out the government was incapable of creating deals without taking care that there would be no executive compensation.
When I demanded a plan for the airline sector in the House several times over, I made my demands clear: support for regional routes, protection of workers and, most importantly, making sure that taxpayer funds were not used for executive bonuses. However, Air Canada, with which an agreement was negotiated, was awarded $10 million to give bonuses to executives, and the government was incapable of excluding this when it made its plan.
I wish I could say this was the only incident of government incompetence when it comes to executive bonuses. We found out, not a week later, that Nav Canada handed out $7 million in executive bonuses after laying off 700 workers and increasing airport fees by 30%.
I wish the incompetence stopped there, but it did not, and I can see why the did not show his face in the House today.
I currently have five letters outstanding to the . The first one is on a pleasure craft operating competency program. Changes were going to be made in the operation of pleasure craft, which was bringing stress and strain to tourist and boating operations all across the country. There was no response from the Minister of Transport on this letter. Regarding electronic logging devices, on which we have seen legislation come into place, a letter has been sent to him, and there has been no response from him.
On ballast water regulations, which are having a major effect on shipping, which is—
:
Madam Speaker, it is a pleasure for me to rise today and take this opportunity to share my thoughts on the recently tabled transportation estimates. These estimates, which are based upon budget 2021, have failed to present the needed road map and economic recovery plan that would lead us out of this pandemic in a timely manner. Not surprisingly, these estimates are just as disappointing as the budget itself.
Transportation is a critical component to our travel and tourism industry. Without the important role played by the transportation sector, Canadians and international visitors alike would be unable to experience the amazing sights, culture, landscapes, attractions and history that Canada has to offer. While a great number of provinces and territories are getting closer to a reopening of their economies, with plans in place, the federal government's lack of preparedness in its own jurisdiction poses a major obstacle in accelerating our economic reopening progress as a nation.
Let us take the Canadian cruise ship industry for example. Last February, the banned cruise ship activity in Canada for a full year, without even considering whether health conditions could improve faster to allow the industry to resume earlier and salvage part of the late summer or early fall season this year. Instead, it was a blanket ban for a full year. Meanwhile, the Americans took this issue with an approach much different and far more optimistic. They could restart their American industry much sooner and responsibly before Canada's cruise ban ends in February 2022.
Consequently, our neighbours to the south have recently introduced legislation to allow American cruise ships to bypass Canadian ports on the west coast during voyages between Seattle and Alaska. As a result, Canada's west coast cruise industry is at risk of losing its spot in this marketplace. There is a real fear that these proposed changes could one day become permanent, which would have a devastating impact on Canadian coastline economies. Thousands of jobs in the tourism and maritime service industry rely on the safe operation of cruise ships between Canada and the United States.
As the American cruise ship industry begins to resume safe operations and with Canadian industry making it clear that a plan is urgently needed to save its 2022 season, there is still no safe restart strategy for cruise ships in Canada. We can blame the federal Liberals and their indifference and naivety for the unnecessary turmoil and economic loss.
Another example of the federal government's lack of preparedness can be found in its transportation consideration at our international land border crossings. There are four major international bridge crossings in my Niagara Falls riding alone. These include the Peace Bridge in Fort Erie, the Rainbow Bridge and Whirlpool Bridge in Niagara Falls, and the Queenston and Lewiston Bridge in Niagara-on-the-Lake. Before COVID, all four bridges were critical in facilitating travellers and trade in a timely manner. However, since COVID, all four bridges have struggled greatly without emergency financial assistance from our federal government.
When the American federal government stepped up to support the bridge authorities on its side of the Niagara River, financial aid from our federal government was nowhere in sight. I have written to the minister about this issue and still no action has been taken. One would imagine that CBSA officers who are front line, outward facing and essential workers would be prioritized by the federal government, their employer, to get vaccinated earlier. Instead, vaccines only began to arrive in Niagara for CBSA officers a few weeks ago, and this only happened after I asked the minister responsible about this in question period. It should not be this hard.
Another border challenge involving transportation is quickly coming and it will be here before we know it. In my discussions with local bridge authorities, there is a major concern about how the logistics of reopening these bridges and testing travellers will work from a border management perspective. What is to be avoided from their perspective is a plan that will result in border delays so long and dreadful that it may deter U.S. travellers from coming into Canada altogether. That is why we have been asking for months now for the government to present a safe and responsible federal reopening plan. When will this be announced?
As I have said many times in the House, COVID-19 hit our travel and tourism industry first, it hit it the hardest and it will take this industry the longest time to recover. These estimates are tone deaf to the fact that we are still fighting this pandemic nearly 15 months after it started. In addition to lacking any coordinated effort of sense of a recovery plan, there is scant to no mention of sector specific support measures for those hardest hit in our transportation sector.
Let us take motor coach buses for example. This industry has been a key component for connecting Canadians and visitors in rural and remote areas to the larger urban centres and beyond. However, COVID has been relentless against this sector.
It is no coincidence that on May 13, in the midst of a severe third wave of this pandemic, Greyhound Canada announced it was permanently cutting all bus routes across the country and shutting down its intercity bus operations after nearly a century of service.
An article in BNN Bloomberg reads, “The decision is a blow to rural and remote areas that rely on a patchwork of private intercity bus companies for transportation.”
Many Canadians, including the most vulnerable, live in rural or remote regions that depend heavily on these bus services to travel large distances between smaller towns and urban areas. As Greyhound continues to operate in the United States, it is difficult not to place the blame squarely on the dire economic situation in Canada that we face because of the 's third wave.
The operators of Double Deck Tours, a local business in my riding, have also written to me. It is Niagara Falls' oldest tour company and it provides fully guided tours of the attractions, events and sights of Niagara Falls and Niagara-on-the-Lake. They write:
Given the impacts of COVID’s third wave on our economy and the absence of a coordinated border reopening plan, we are facing the possibility of having to rely exclusively on limited local business and a summer with ongoing restrictions. This will significantly reduce our recovery trajectory and our ability to replace these subsidies with revenues. The limited opportunity presented by a restricted summer will not be sufficient for businesses to accrue the liquidity required to make it to summer 2022, our next peak travel period.
Pressure is mounting on this issue. Earlier this week, the Canadian press reported that Canadian business leaders were demanding a plan from Ottawa to reopen our borders and our economy now. Perrin Beatty, the chief executive officer of the Canadian Chamber of Commerce, is quoted as calling Canada an outlier in failing to provide a fully fledged reopening plan that includes vaccination rates and other criteria.
What are the Liberals waiting for? We need them to coordinate and co-operate among themselves with industry, with business leaders and with our international partners to come up with a safe and responsible reopening plan so we can get life back to normal as quickly as possible. Canadian businesses and industries are eagerly seeking clarity and certainty from their federal government. Instead, it is becoming more clear by the day that the federal leadership, in this regard, is sorely absent.
Transportation, travel and tourism are among some of the hardest-hit sectors of our economy. It is going to take some time for them to recover. In fact, many businesses in these sectors are in survival mode, while they watch other parts of our economy reopen more quickly. The reality is that travel and tourism will not restart overnight. While 2019 was a record year for many Canadian tourism businesses, the Tourism Industry Association of Canada estimates it could take until at least 2025 before 2019 levels are achieved again. The Indigenous Tourism Association of Canada fears it could lose nearly 30 years of economic progress in its sector if more emergency financial support is not provided soon by the federal government.
Before this pandemic, Canada's travel and tourism industry was the country's fifth-largest sector, responsible for $105 billion in revenue, or 2.3% of GDP. It employed one in 10 Canadians, or 10% of Canadian jobs, and had 225,000 small and medium-sized businesses across Canada. It is terrible to see how much economic damage, loss, suffering and setback have been caused by this prolonged 15-month pandemic. It is even more terrible to know that our federal government, whose key responsibility is to protect its citizens and Canadian interests, was not ready to protect us at the start, and 15 long months later, it remains unprepared to provide a clear plan forward on safely and responsibly reopening our economy and our borders.
It should never be lost on any Canadian that the Liberal government prorogued Parliament last summer in the midst of a national pandemic health crisis. Let that resonate for a moment; think about it. Canadians deserve so much better, and Canada's Conservatives are ready and prepared to deliver the governance and leadership they so badly deserve.
:
Madam Speaker, I want to begin by saying that I will be sharing my time with the hon. member for , whom I affectionately refer to as my favourite MP.
On June 9, the House adopted Motion No. 69, which was moved by my colleague from . The motion presents six concrete measures to help the government take more effective action against tax evasion and tax avoidance.
This evening, I would like to remind the House of those six measures. I expect the government to take action. I would also like to remind the House that our role as legislators involves guiding the government on such motions. Since the motion was adopted, I expect concrete action to be taken. I expect the government to follow through on this.
The first measure is as follows:
amend the Income Tax Act and the Income Tax Regulations to ensure that income that Canadian corporations repatriate from their subsidiaries in tax havens ceases to be exempt from tax in Canada;
Here, the motion calls for subsection 5907(1) of the income tax regulations to be repealed.
I would note that this subsection, which was adopted behind closed doors, allows Canadian corporations to repatriate money tax-free from their subsidiaries in one of the 23 tax havens with which Canada has a tax information exchange agreement.
This measure would change things so that any income repatriated by a Canadian corporation would be taxed. There is no need for a bill to do that. The motion was adopted in the House, and the order was sent to the government. All the minister had to do was delete it from the income tax regulations, thereby revolutionizing the fight against tax evasion and tax avoidance. That is what we are asking the government to do. We are in a pandemic, and spending levels are higher than ever. The motion proposes measures that will enable to government to bring in more revenue and increase tax fairness.
The second measure is as follows:
review the concept of permanent establishment so that income reported by shell companies created abroad by Canadian taxpayers for tax purposes is taxed in Canada;
When a company registers a subsidiary or a billionaire establishes a trust abroad, that subsidiary or trust is considered a foreign national, independent from the Canadian citizen or company that created it, and its income becomes non-taxable.
In taxation jargon, these subsidiaries or trusts are referred to as permanent establishments, in other words, they have a taxable fixed place of business independent of their owner. In many cases, they are shell companies with no real activity. There is no justification for treating them differently from any other bank account and exempting the income they generate from tax.
The Standing Committee on Finance is looking into shell companies set up on the Isle of Man by KPMG. Things need to change. The motion adopted by the House contains a measure to do that. We expect the government to take action with a view to collecting additional revenue in order to offset the additional expenses arising from the pandemic.
The third measure is as follows:
require banks and other federally regulated financial institutions to disclose, in their annual reports, a list of their foreign subsidiaries and the amount of tax they would have been subject to had their income been reported in Canada;
This may surprise many people, but for years banks were required to include that in their annual reports. It used to be released and that requirement needs to be reinstated. Here, the House is calling on the government to require the banks to be transparent again. It would just take a simple directive from the Superintendent of Financial Institutions. The government can send this notification and this very simple measure could be applied very quickly because it does not require any international negotiations or any legislative or regulatory change.
In 2019, the six Bay Street banks made a record profit of $46 billion. That is a 50% increase over five years. In 2020, despite the pandemic, they made $41 billion in profits. Their profits rise, but they pay less tax because they report their most profitable activities in tax havens, where their assets keep growing.
Until the door to the use of tax havens is closed shut, consumers could at least be able to choose their financial institution in an informed manner, and taxpayers would be able to judge whether the banks deserve government assistance.
Some of the measures the government announced in its latest budget are consistent with the fourth measure, which reads as follows:
review the tax regime applicable to digital multinationals, whose operations do not depend on having a physical presence, to tax them based on where they conduct business rather than where they reside;
We see this in rich countries. There are two pieces of good news in this budget. First, the government will finally start collecting the GST on services sold by digital multinationals as of July 1, so two weeks from now. This tax change was included in the notice of ways and means that the House voted on.
It is hard to understand why Ottawa waited so long, when Quebec has been doing it for two years and it is going great, but as they say, better late than never.
Also, still on the topic of this measure, the budget announces the government's plan to tax multinational Internet companies on their activities at a rate of 3% of their sales in Canada beginning on January 1, 2022. This commitment might be merely hot air, however, since there is talk of a possible implementation after the likely date of the next election. There is speculation that it will be called in mid-August, if the polls remain comfortable for the party in power, but still, this commitment is good news. It will be really good when it happens.
During the last election campaign, which was not so long ago, the Bloc Québécois proposed such a measure and the use of the revenue generated to compensate the victims of web giants, the creators. We are talking about the artists and the media who do not receive copyright fees from the web giants that use their content. The government is not going that far, but is instead reporting this GAFAM tax in the consolidated revenue fund. Nevertheless, we applaud this measure. It is a good start.
The fifth measure is as follows:
work toward establishing a global registry of actual beneficiaries of shell companies to more effectively combat tax evasion;
This is an extremely important measure. This needs to happen. Experts told the committee that the problem was that the information was not accessible; we cannot see the information. The fifth measure adopted by the House changes that. In many cases, tax havens are opaque, and it is impossible to know who truly benefits from the companies and trusts that are set up. Often, we only know the name of the trustee that manages them or the legal or accounting firm that created them, but not the name of the person hiding behind them. Such a setup is a real boon for fraudsters who can hide their money with complete impunity.
This type of registry already exists in Luxembourg, but it is accessible only to financial institutions. These institutions do their own audits, but this type of registry must be made available to governments or tax agencies. Tax evasion and avoidance has gone on too long. We do not know who is hiding behind these companies. I am calling on the government to implement the fifth measure.
The sixth and final measure is a very important one:
use the global financial crisis caused by the pandemic to launch a strong offensive at the Organisation for Economic Co-operation and Development against tax havens with the aim of eradicating them.
As members know, in response to the 2008-09 financial crisis, the OECD has been working hard to combat the use of tax havens. It was then that countries started to seriously go after tax havens within the OECD by launching a broad multilateral instrument on international taxation and tax base recovery called the framework on base erosion and profit shifting, better known as BEPS. Some progress has been made since the initiative was launched, but not much.
We are facing a global economic crisis, as countries took on record amounts of debt in an effort to provide income support and stabilize the economy. These efforts are absolutely warranted when they are well done and well used. However, this crisis is a reason to emphasize that everyone needs to pay their fair share and implement, once and for all, the recommendations proposed by the OECD. This is extremely important. It is a matter of justice and tax fairness.
In conclusion, I remind members that less than two weeks ago the House adopted a motion setting out these six actions. We are calling on the government to move forward. These are good solutions, and the current pandemic is the right time to implement them.
:
Mr. Speaker, even though I always run out of time, I will allow myself the luxury of taking a few seconds to extend a personal greeting to you. I will take advantage of the fact that I am delivering a speech in your presence to say that, during the brief time that we have worked together, you have been very pleasant and very efficient. I really enjoy your creative way with the French language.
Now to the matter at hand. I really have a lot to say about the main estimates and the supplementary estimates. I will try to be efficient.
First of all, we need to talk about how this money is being spent. We need to talk about how this money comes in from across the country and is being taken out of the hands of levels of government that are closer to the people. Case in point, health transfers to Quebec and the provinces. I simply cannot rise in the House to talk about expenditures and budgets without talking about that injustice. The provinces are unanimous in their demand for $28 billion, but that is not in the budget. The federal share has to go up to 35%. That is essential.
I will also talk about old age security. How could anyone possibly sleep at night after voting for a budget that, with a deficit of nearly $400 billion, does not improve the quality of life of those who built our society? I can still hardly believe it, and every time I talk about it in the House, I get a feeling of revulsion that turns my stomach. It is outrageous, and I urge the government to act quickly on this.
Some may think no one is talking about this anymore, but we have people calling our offices and commenting on social media every day, asking us what we are doing, why they are not hearing about this issue anymore, and whether we are still discussing it. I always reply that we still are, and that is what I am doing here tonight.
Now I would like to talk about the securities regulator. In this budget implementation case we want to pull back spending. Fortunately, my favourite MP, who spoke before me, was very effective in committee and managed to reduce the funding. We must be vigilant, and I invite the members of this Parliament, especially the opposition, to be vigilant with us and block any possible return of this odious attempt to further dispossess and weaken Quebec. This is unacceptable. We cannot accept losing control of our economic institutions.
A provision in the budget implementation bill states that companies that received the Canada emergency wage subsidy may not pay bonuses to their senior executives. Someone should have mentioned that to Air Canada. Fortunately, public pressure did the job. I think measures like these are appropriate.
However, I cannot help but draw a parallel with the fact that the wage subsidy was used by almost everyone here except us. Every party in the House benefited from that subsidy, or rather abused it; I am not sure which word to use. It is a measure that we voted in favour of in good faith to help our businesses, but people will use that money for their election campaigns in the coming months. If that is not scandalous, I do not know what is. Not only do the parties need to stop receiving the subsidy, they also need to pay it back. That money does not belong to the parties.
I could speak at length about what was done during the COVID‑19 crisis, including the Canada emergency response benefit, CERB, which discouraged people from working. We rose many times in the House to have CERB help people get back to work. CERB harmed our businesses. It has left a mark and it is not over. The topic comes up every time I meet with my municipalities. This is a crazy situation knowing that we have a labour shortage. Earlier my colleague mentioned that using foreign workers was one way to overcome the labour shortage. These foreign workers are essential in many sectors.
The Department of Immigration, Refugees and Citizenship is in chaos right now. Nothing is moving. Visa processing has been suspended and businesses are not getting answers. They are calling us and are desperate. Even we have a hard time getting answers for them. It is unbelievable.
There are certain changes that could reasonably be made right now, for example to the percentage of temporary foreign workers authorized to work in the agri-food industries. This has been discussed a lot at the Standing Committee on Agriculture and Agri-Food, and the members unanimously agreed that the percentage must be doubled at least. Let us do it. Let us make it easier for these people to integrate as well. The Bloc Québécois has made some concrete proposals, such as offering three-year visas; doing fewer market impact assessments because they are not really necessary since the job market does not change that quickly; and allowing for flexibility.
I spoke about the agri-food sector, but I also want to talk about the hospitality and tourism industries. They are really struggling. Restaurants are shutting down in my riding. It is heartbreaking to see, since these institutions have been around 25, 30 or 40 years. They are so good that they put towns on the map. These establishments have put up signs saying that they do not have the staff to reopen. We need to find solutions. One way to get more workers for our businesses is to vote for smart measures that encourage people to find work. I am talking about incentives rather than disincentives.
I would be remiss if I talked about temporary foreign workers without mentioning that, on June 9, the Union des producteurs agricoles du Québec, the Association des producteurs de fraises et framboises du Québec, and the Quebec Produce Growers Association urged the Liberal government not to abandon them, but that is precisely what is happening.
Let us remember when the mandatory quarantines were established. Would anyone here have dared to say that a foreign worker need not quarantine for 14 days? No one would have. Let us remember that the Bloc Québécois has always clearly stated that quarantines are a federal responsibility. The government did not carry out its responsibilities. It downloaded them onto our farmers. Yes, farmers are capable of carrying them out. Yes, they managed this in an extraordinary way, but it was not up to them to do it, and it was especially not up to them to pay for it. Not only were they forced to manage the quarantines and to provide multiple housing units, but, in addition, they have to pay the workers when they are here, which is only right.
The government introduced a measure, namely a $1,500 support. In their letter, which I believe and hope was acknowledged, they ask that this program be maintained. Yesterday, June 16, the amount was cut in half to $750. Why? Does it cost less to quarantine now than it did two weeks ago? Is it not as necessary now as it was two weeks ago?
I am going to read the last sentence from the minister's announcement because I do not have the time to read more. “This program will be available as long as the Quarantine Act is in force and the isolation protocol is followed.” Is that not currently the case? The government and the minister must keep their word and not abandon our producers before the war on COVID‑19 is over.
On top of that, there is also the Switch Health saga. They have calculated the costs. A standard 14-day quarantine costs $1,750 per worker, but $3,000 if the worker has to quarantine at a hotel. With all the chaos caused by Switch Health, it costs $113 more per worker per additional day, and $223 more per worker per additional day if the worker is quarantining at a hotel.
What is the government telling farmers about that? The government is saying that it is sorry that it has put farmers in dire straits but that it took two months to work things out. That is unacceptable. We need to support our farmers. We need to think about the people on the ground when voting on all of these expenditures. I want to briefly mention what has been happening in the House over the past few days and invite members of this Parliament to work constructively in the few days we have left. We have a pile of fundamental bills that we need to vote on.
:
Mr. Speaker, I just want to say that I am coming to you from the traditional unceded territory of the QayQayt First Nation and the Coast Salish peoples. I thank them for this privilege.
[English]
I would like to start off by paying tribute to frontline workers, health care workers and emergency responders across the country. We have seen over the last 15 months, as our country has entered into this unparalleled health crisis, incredible bravery and incredible dedication on behalf of all those Canadians who have tried to keep us alive and well, and who continue to serve us during this pandemic.
Now, we can look, and there is a potential light at the end of the tunnel, as we start to see, slowly, the number of infections going down. We still have much work to do, there is no doubt, but we can start to envisage what kind of society we can actually build post-COVID.
I do that from my background as a financial administrator. As members know, I started out my adult working life as a factory worker and eventually was able to save up enough money to go back to school and learn about finances and financial management. I was able, fortunately, to use that in a variety of social enterprises and organizations.
The one thing I learned that is fundamental, when we talk about financial administration, is that we have to follow the money to see what the priorities of a social enterprise, business or organization are. What the priorities are is often dictated by where the flow of money goes. In this debate and this discussion around the main estimates and where we are as a country, it is fundamentally important to ask the question “Where is the money flowing to?” That is why this main estimates process and this debate tonight are so fundamentally important.
As members well know, in our corner of the House, and this dates back to the time of Tommy Douglas, within the NDP we have always believed that it is fundamentally important to make sure that those who are the wealthiest in society pay their fair share. Tommy Douglas was able to, in the first democratic socialist government in North America, actually put in place universal health care. He was able to do that because he put in place a fair tax system.
We can look at the NDP governments since that time. I am certainly not telling tales out of school. As members are well aware, the federal ministry of finance is not a hotbed of New Democrats. However, the federal ministries of finance have consistently, over the last decades, acknowledged that NDP governments have been the best in terms of balancing budgets and providing services for people. That is the same approach that we will take, one day, to provide the type of stewardship that we believe is fundamental to renewing our country, providing the supports, and building a society where everyone matters.
Let us look at where the current government stands, in terms of that flow of money. Prior to the budget, we put forward, and it should have been reflected in the estimates process, a variety of smart ideas that other countries have already incorporated as we go through this pandemic. We believe that we should be putting into place, as other countries have done, a wealth tax. We should be saying to the billionaires and the ultrarich of this country that they have to pay their fair share. They benefited from this pandemic and their wealth has increased, and now they have to give some of that back, to make sure that we all have the wherewithal to move forward.
We also proposed a pandemic profits tax, because we have seen in previous crises, like the Second World War, that putting that type of practice into place ensures that companies maintain the same profit levels but are not profiting unduly from the suffering that so many people have experienced through COVID-19.
We have also been foremost with regard to cracking down on overseas tax havens. As members know, I have spoken out about this. The member for , our national leader, the member for and the rest of the NDP caucus have been vociferous in this regard because these lose an astounding amount of taxpayers' money every year. They are the result of both Conservative actions and Liberal actions.
The Parliamentary Budget Officer pointed out two years ago that Canadians lose $25 billion every year to overseas tax havens. That $25 billion could meet an enormous amount of need. It could serve in job creation or the transition to a clean energy economy. All of those things could be accomplished, but what we see is an intricate network of tax havens that has built up over the years because of both Conservative and Liberal government decisions. The cost to Canadians is profoundly strong when we think of $25 billion a year in taxpayers' money being lost to overseas tax havens.
When we couple that $25 billion with a pandemic profits tax, which the Parliamentary Budget Officer evaluated at $8 billion, and a wealth tax, which would bring in $10 billion a year, we start to see what financial underpinnings could be put into place to actually meet the needs of Canadians across the country. We often see that there is a flow of money to the ultrarich: the wealthiest banks and billionaires in this country. At the same time, we often see that those who have the most critical needs do not even get a trickle of that financial flow.
At the beginning of this crisis, where did the government decide to flow its money? We know this now. This is no secret. In fact, the Liberal government seems to be proud of this fact. Within four days of the pandemic hitting in Canada, an astounding, unbelievable, record amount of $750 billion was made available in liquidity supports to Canada's big banks through a variety of mechanisms and federal institutions: OSFI, the CMHC and the Bank of Canada. That is $750 billion. It is unparalleled in our history and unprecedented.
If we go back to the Harper government, there were criticisms at that time because during the global financial crisis $116 billion in liquidity support was provided to the banking sector. Of course the banking sector prospered enormously from it, but $750 billion is so difficult to get our minds around. It is a vast amount of money. It is a colossal flow of an unprecedented amount of cash in liquidity supports to the banking sector.
The banks have responded accordingly. There were no conditions attached. They jacked up their service fees, as so many Canadians know. They did not reduce their interest rates to zero, as we saw in the credit union movement. Credit unions, such as Community Savings Credit Union in Vancouver, reduced their line of credit interest to zero and their credit card rates to zero because they knew Canadians were suffering. Canadians had to struggle to put food on the table, and the credit union sector in many respects responded to that, but the banking sector did not. It just kept seeing that money roll in. During the pandemic, its profits have been $60 billion so far. It is unbelievable.
I pointed out earlier that there is no pandemic profits tax and there is no wealth tax. Canada's billionaires have increased their wealth during this pandemic by an astounding $80 billion, yet there are no measures for any sort of fairness or to make sure the ultrarich pay their fair share. We can follow the money and see, with the Liberal government, that as we went through an unprecedented crisis its first and foremost thought was for the banks and billionaires of this country. This is unique in the responses of governments through crises in the past.
During the Second World War when we needed to win the battle against Nazism and fascism, the federal government put into place an excess profits tax and wealth taxes to ensure that we had the wherewithal to win the war effort. After the Second World War, we were able to build an unprecedented amount of public housing, hospitals and educational institutions across the country and to build the transportation sector. The country boomed in so many respects because the investments were there starting with a fair tax system, but not this time. There is no wealth tax, no pandemic profits tax and no cracking down on overseas tax havens.
What did the NDP do? We hear rumours that the desperately wants to call an election, and we will all be asked what we did during the pandemic.
Under the leadership of the member for , the NDP went to work immediately. We saw the huge amounts of money that were made available to the banking sector right off the bat, and we started pushing for an emergency response benefit that could lift people above the poverty line. We forced and pushed because we had seen from the best examples of other countries that we needed to put in a place a 75% wage subsidy. We pushed hard, as members know, to make that a reality.
The track record is very clear. We pushed in the House of Commons for supports for students, seniors and people with disabilities, with the big caveat that the Liberal government never put in place wholesale supports for all people with disabilities. It has now asked them to wait three years before there is any hope of support. People with disabilities will have to wait three years while banks had to wait four days in the midst of a pandemic. That is the national tragedy we see with the flow of money going to the ultrarich, the wealthiest, to make sure that banks and billionaires benefit first.
New Democrats fought those fights and won many of them over the course of the past year. I know that has made a difference. We still see suffering. We still see people lining up at food banks in unprecedented numbers. Tragically we still see people with disabilities who are barely getting by. Tragically we still see people closing, for the last time, the doors of businesses that they may have devoted their lives to building up. These are community businesses that served the public and created jobs in communities across this country, but in so many cases those small businesses have had to close their doors. Nothing could be more tragic.
As we come out of such a profound crisis, we see many people being left behind; however, the government has put forward a budget that slashes the CERB benefits even more. The CRB was slashed from $500 a week to $300 a week, which is below the poverty level. We see the government responding to the economic crisis of seniors by saying that those over 75 get a top-up on their OAS to lift them up to the poverty line, but those under 75 are out of luck with the government.
That contrasts vividly with the government paying out money through the wage subsidy to profitable companies that then paid huge executive bonuses or often paid dividends to their investors. The government says that is okay, despite the NDP's warnings from the very beginning that it had to put measures into place. It is not a problem: It will recover money elsewhere, but then it slashes the CERB benefits for people who need them the most.
What does this mean, in terms of an estimates process, and how would the NDP approach the issue of making sure we meet the needs of Canadians and respond to the crisis that so many people are living through in this country? As I have already mentioned, New Democrats would tackle it from the revenue side. We would make sure that the ultrarich pay their fair share. We would crack down on overseas tax havens. The government never introduced a single piece of legislation that adequately responded to the crisis in financing we see with the hemorrhaging of $25 billion a year to overseas tax havens.
The CRA was before the finance committee last week. The year before, I asked who had been prosecuted in the Panama papers, the Bahama papers, the Paradise papers and the Isle of Man scam. A year ago, CRA was forced to say it had never prosecuted anybody. This year I asked the same question, and the result was exactly the same. No company and no individual has ever been prosecuted. We have thousands of names of people who have been using these particular strategies to not pay taxes, yet the CRA has never had the tools in place to take them on.
New Democrats would make sure that everyone pays their fair share, that the ultrarich actually pay their fair share, that billionaires do not get off scot free and that the companies that try to take their earnings overseas have to pay income tax and corporate tax. We would make sure of that.
What would we do in the estimates? What would an NDP estimates process look like? We have already seen signs of that over the past year. We have been tabling legislation, bringing forward bills and making sure that we actually put into place the programs Canadians need.
Members will recall I tabled Bill , the Canada pharmacare act, ably supported by my colleagues for and . We brought that to a vote with the support of 100,000 Canadians who had written to their members of Parliament. Liberals and Conservatives voted that down, even though we know pharmacare is something that will make a huge difference in the quality of life for Canadians. It is estimated that 10 million Canadians cannot pay for their medication. Hundreds die every year because they cannot afford their medication. For thousands of others, families are forced to choose between putting food on the table and paying for their medication. We can end that suffering. At the same time the Parliamentary Budget Officer, that independent officer of Parliament who can tell us with such accuracy what the net impacts of policies are, has told us we would save about $4 billion overall as a people. We would be able to reduce the costs of medications, so the estimates process would include universal public pharmacare in this country.
As we saw with the member for just last night, we would be bringing in dental care for all those who do not have access to dental care. Why is that important? We heard yesterday about a person in Sioux Lookout, Ontario, who passed away because they did not have the financial ability to pay for the dental work that was vitally important for them to be able to eat. These are tragedies that are repeated so often in this country.
What else would we see in the estimates? The guaranteed livable basic income was brought to the House of Commons by the member for . We have seen how so many members of our caucus have fought for the rights of indigenous peoples. It should be a source of shame for the government that dozens of indigenous communities still do not have safe drinking water, six years after the 's promise. As the member for said in response to a question from a journalist, how would we ever accept the cities of Toronto, Vancouver or Montreal not having safe drinking water? It is simply astounding, yet we have no wealth tax or pandemic profit tax in place. We have no set of priorities that allows us to ensure that all communities in this country have safe drinking water.
We saw the incredible tragedy of the genocide in residential schools. There are first nations communities that do not have the funding to find their missing, murdered, dead and disappeared children. This has to be a national priority as part of reconciliation. It cannot simply be pretty words. We have to act, and that means ensuring that when we say “follow the money”, it is no longer the very wealthy or ultrarich who receive the vast majority of federal funds, but the people across this country, indigenous peoples, who get the supports that they need and the quality of life they deserve.
There is the issue of the right to housing. Again, it would be part of our estimates to ensure that all Canadians have roofs over their heads at night. This is not rocket science. It takes investment. Other countries have had the right to housing instilled. In a country with a climate as cold as Canada's, housing should be a fundamental right of every Canadian.
We would provide supports to peoples with disabilities, students and seniors. People have been struggling through this pandemic, yet students are still paying their student loans, seniors are being denied the increased OAS if they are under age 75 and people with disabilities are being asked to wait three years. The wants to pump $20 billion into the TMX pipeline instead of investing in clean energy that would result in hundreds of thousands of new jobs.
The estimates process with an NDP government would be different and better. We will continue to fight for a country where no one is left behind.
:
Mr. Speaker, on June 9, the member for submitted a notice of opposition regarding Vote 1, “Operating expenditures”, in the main estimates, under Department of Transport, in the amount of $741,693,237.
The notice of opposition calls on Nav Canada executives and managers to pay back $7 million in bonuses they received in the last fiscal year, supposedly during the pandemic, while the private not-for-profit organization was receiving government assistance and issuing layoff notices. To protest those bonuses, the member is suggesting that $7 million be cut from the Transport Canada budget.
Let me begin my remarks by discussing what such a cut would mean for Transport Canada's programs and, by extension, for Canadians. A $7‑million reduction to Transport Canada's main estimates funding for 2021-22 would significantly reduce its ability to deliver on its commitments. This reduction would have undesirable consequences, such as weakening the implementation of monitoring, testing, inspection and subsidy programs across all modes of transportation, including air, marine, rail and road. It would also result in reduced enforcement activities that could increase the potential risk to the safety and security of Canadians.
Furthermore, reduced surveillance of equipment, operations and facilities in the transportation industry could lead to accidents, malfunctions and loss of life. It would also have a negative impact on the department's efforts to support the economic recovery of the air sector and other transportation sectors affected by the pandemic. This reduction would set a precedent for departments to pay for organizations that operate at arm's length from the Government of Canada.
[English]
Allow me, for greater emphasis, to reiterate some of these points in English.
The impact of a $7-million reduction to Transport Canada's 2021 main estimates funding would significantly reduce its ability to deliver on its commitments. Undesirable consequences could include reduced levels of inspections across all transportation modes: air, land and marine. It could include reduced enforcement activities and reduced surveillance of the transportation industry's equipment, operations and facilities.
How would these cuts impact ordinary Canadians? I will give some examples. Transport Canada recently announced the funding of $7 million in Lethbridge for the rehabilitation of runways, $5 million through the national trade corridors fund to improve the efficiency of rail logistics in Alberta's industrial heartland; $2 million to the remote air services program to British Columbia to ensure essential air services to remote communities in the province; a combined $8 million to the communities of Smithers and Terrace in the riding of Skeena—Bulkley Valley to rehabilitate airport infrastructure; and $11 million to the community of Mont-Joli in the electoral district of Avignon—La Mitis—Matane—Matapédia to rehabilitate the airport.
Which of these projects would the opposition cancel in order to recuperate the $7 million it is purporting to cut?
The cuts also negatively impact the department's efforts to support the economic recovery of the air sector, as well as other transportation sectors affected by the pandemic. It would also set a precedent for government departments to pay for organizations that are operating at arm's length from the Government of Canada.
In short, this would be a very unwise way to protest Nav Canada's financial decision, which again has nothing to do with the supply vote in front of us.
[Translation]
I would like to say a few words about Nav Canada. Nav Canada is a private, not-for-profit corporation tasked with managing Canada's air navigation services. This model was introduced for the first time in 1996 to replace the air navigation services that were previously provided by Transport Canada. All subsequent governments kept that model in place.
Nav Canada oversees air traffic in Canada through a sophisticated network of area control centres, air traffic control towers, flight service stations, maintenance centres, flight information centres and navigation aids across the country.
Its customers include airlines, business aviation and air cargo operators, air charters and air taxis, helicopter operators and general aviation pilots and owners.
Nav Canada is independent from the Government of Canada because it does not report to the Minister of Transport or Parliament. Nav Canada is not part of the 's main estimates. As a result, it is not included in Transport Canada's Vote 1 estimates of $741,693,237 for 2021-22. What is more, Nav Canada's financial statements are not included in the Government of Canada's main estimates process.
As a not-for-profit corporation, Nav Canada invests directly in its operations, people and infrastructure to keep Canada's air navigation system as safe, efficient and innovative as it can be.
Nav Canada's governance structure is composed of federal government representatives, users and unionized employees. In turn, these representatives select the members of Nav Canada's board of directors.
Now I will turn to the bonuses paid out to Nav Canada executives. Nav Canada bonuses are paid to senior executives and exempt staff, who are managers. Bonuses are usually between 5% and 20% of an employee's total compensation. They are accounted for in Nav Canada's vision, which is to pay wages equivalent to the market average.
Bonuses are normally paid to about 550 employees, but they are not distributed evenly. The average amount paid out from that $7 million would be $13,000, but the amount varies from one person to the next.
Recent media reports stated that Nav Canada was planning to issue layoff notices to 49 employees. Those notices have since been rescinded. Nav Canada chose not to publicize its senior executives' compensation because of its policies stating that disagreements with the unions are not resolved immediately.
Now I would like to talk about Nav Canada's independence from Transport Canada. Once again, there is no connection between the payment of Nav Canada bonuses and Vote 1 of the main estimates for Transport Canada in the amount of $741,693,237. Nav Canada receives no direct funding from Transport Canada and is not accountable to either the or Parliament.
Nav Canada is primarily funded by the fees it receives for managing more than 18 million square kilometres of airspace. Additional revenue is generated through technology sales and other related business activities. The company operates with a break-even business model, balancing costs and revenues by borrowing to meet cash flow requirements.
I want to make a few points about the $7 million in bonuses paid by Nav Canada while the company was receiving government assistance and issuing layoff notices. The bonuses reported in the news were paid for the first half of the company's fiscal year, from September 2019 to February 2020, before the industry suffered significant negative impacts from COVID‑19. Budget 2021 proposed requiring that publicly listed corporations repay the wage subsidy for any qualifying period after June 5, 2021. The Nav Canada bonuses were paid outside of the period set out in budget 2021.
In response to COVID‑19, Nav Canada executives agreed to significant reductions to salary and benefits, and there is no immediate plan to restore them before the airline industry recovers.
Note that salaries were reduced by 3% to 5%. Pensions were restructured and became less generous. The annual salary review for senior executives to reconsider possible raises was cancelled. The management team was also cut in half and, during that time, the company issued layoff notices to 49 employees. As I was saying earlier, these notices were rescinded.
Like other Canadian companies, the employees at Nav Canada can receive wage subsidies through the Canada emergency wage subsidy, or CEWS. Nav Canada noted that its employees had benefited from the CEWS and that the company had not received the large employer emergency financing facility, or LEEFF, nor had it received any special financing under favourable terms.
As far as the rule around the wage subsidy is concerned, budget 2021 stated that the wage subsidy should be paid back in certain cases where senior executives' compensation increased.
Budget 2021 proposes to require a publicly listed corporation to repay wage subsidy amounts received for a qualifying period that begins after June 5, 2021, in the event that its aggregate compensation for specified executives during the 2021 calendar year exceeds its aggregate compensation for specified executives during the 2019 calendar year.
For the purpose of this rule, a publicly listed corporation's specified executives will be its named executive officers whose compensation is required to be disclosed under Canadian securities law in its statement of executive compensation.
This generally includes its chief executive officer, chief financial officer, and three other most highly compensated executives. A corporation's executive compensation for a calendar year will be calculated by prorating the aggregate compensation of its specified executives for each of its taxation years that overlap with the calendar year.
The amount of the wage subsidy required to be repaid would be equal to the lesser of the following: the total of all wage subsidy amounts received in respect of active employees for qualifying periods that begin after June 5, 2021, and the amount by which the corporation's aggregate specified executives' compensation for 2021 exceeds its aggregate specified executives' compensation for 2019.
This requirement to repay would be applied at the group level and would apply to wage subsidy amounts paid to any entity in the group.
I hope that my remarks have clarified some of the questions about the bonuses paid to Nav Canada executives. I think that what should be quite clear is that the proposed $7‑million reduction to Transport Canada's operating budget is an ill-advised and irresponsible way to protest these bonuses. The funds used to pay these bonuses did not come from Transport Canada's budget.
Furthermore, the cuts would hurt Transport Canada's ability to carry out its mandate. As I mentioned earlier, this would weaken the implementation of monitoring, testing, inspection and subsidy programs across all modes of transportation. It would also result in reduced enforcement activities that could increase the potential risk to the safety and security of Canadians.
In addition, reduced surveillance of the transportation industry's equipment, operations and facilities could result in accidents, malfunctions and, of course, loss of life.
I will give the member who proposed these cuts the benefit of the doubt and assume that she did not consider some of their potential consequences.
It is very easy to fan the flames of anger about executive compensation, and in some cases, this is often completely justified. However, as legislators, we must also act responsibly when making decisions and ensure that we do not inadvertently hurt Canadians.
I urge all members to vote in favour of Vote 1, “Operating expenditures”, in the main estimates, under Department of Transport, in the amount of $741,693,237.
Transport Canada worked very hard to maintain the safety and security of our transportation system throughout the COVID-19 crisis. This work must continue, and the department needs the resources required to do that.
:
Madam Speaker, it is my pleasure tonight to rise in the House to speak to the main estimates for the Department of Transport. I note that I will be splitting my time with the member for .
Since the beginning of the current session of Parliament, it has been my pleasure to sit on the Standing Committee on Transport, Infrastructure and Communities. This committee is filled with a good group of parliamentarians working to get answers for Canadians on transport-related issues and to secure the future of transport in this country.
This past fall, we began a study to examine the impacts of COVID-19 on the aviation sector in Canada. We heard heart-wrenching stories from many witnesses about how much of their workforce had to be laid off. Many were struggling to put food on the table in cases where there were gaps in federal support.
What is interesting to note is that, while some companies were getting little to no support and could not secure a meeting with the , other companies were receiving much more support and getting meetings with the minister on a regular basis. The patchwork approach the government has been taking when it comes to getting support to Canada's aviation sector ignores all the workers in the aviation sector who have lost their jobs as a result of the government's inaction on this file. Canadians have been watching closely over the past year, and many in this sector still have not received the support they require. Hope is dying.
It is nice for aviation workers to hear from the government that help is on the way, but when is it coming? When days turn into weeks, weeks turn into months and then months turn into over a year, I can see why so many in the industry who have still not received support have lost hope. However, members should note that not all airlines are still waiting for support. Air Canada received a $5-billion package from the government in April, and shortly after, it awarded more than $10 million in bonuses to executives and managers. The Conservatives have been clear from the beginning: We must get support out the door to those who need it most, and no taxpayer money should ever be used for executive bonuses.
A couple of weeks ago, I heard from a constituent who, prior to COVID, booked a vacation for himself and his wife for their 30th anniversary. Because of travel restrictions, their vacation was put on hold and they received a travel voucher that was good for 24 months. This was all good until my constituent lost his job because of COVID and needed to access the funds that were tied up in a vacation that he and his wife never got to go on.
Many travel companies have said that passenger refunds are tied to government support. Sunwing received a temporary support package back in February and set aside money for customers, but it has not dispensed that money, as it is still in negotiations with the government regarding its full support package.
The predicament this constituent and many other Canadians in similar situations now find themselves in is that they still have no clear indications from the government about when travel restrictions will be lifted, and the end of the 24-month period for the travel voucher is coming quickly. If the government does not soon finalize the support package, customers in this situation are at risk of losing the thousands of dollars they saved for a vacation that they may never get to go on. This is just one story of how the government's inaction on this issue is costing Canadians.
On the border, as I mentioned, the government has still not provided Canadians with any sort of indication as to when the border might open. The government waited far too long to close the border. Now we are nearing the end of the pandemic, and it refuses to provide Canadians with certainty as to when we will reopen it.
I would like to thank all those who work at the CBSA and have been challenged over the past year to quickly adapt to the ever-changing rules and travel restrictions thrown at them. COVID began in March 2020, and we knew very early on that COVID was entering Canada because we left our borders open and the government repeatedly failed to take meaningful action to secure them.
The spending that is occurring in the transport budget is important, and I agree that we must provide support to the industries that were hardest hit by COVID. However, with the government, we repeatedly see money being allocated in the budget and then either not getting out the door fast enough, like all of the lapsed infrastructure spending, or getting out the door and into the wrong hands, like with the WE Charity scandal and Air Canada's executive compensation package.
An area that needs support is the tourism industry. When I talk about targeted support being needed, an area that comes to mind with a shortfall is tourism.
COVID-19 has been incredibly tough on the tourism industry. I talk with many stakeholders in my riding, and a concern I hear from them is that, while the $500 million in support the government is offering is appreciated, when stretched to companies from coast to coast to coast, this support is being spread too thin. Businesses have suffered major losses through no fault of their own. The support they need should be available to continue their operations.
It is extremely important that we fully recover the tourism industry, especially in communities that rely on the industry as a significant part of their economy. A factor we need to think about in relation to tourism recovery is the transportation of people and how easy it is for tourists to get to their destinations. In many cases, taking a bus over a flight or driving can make for a more economical vacation. With the closing of Greyhound Canada, this is leaving a gap in our transportation network.
Many Canadians across Canada who live in rural or more remote regions depend on intercity bus services to travel large distances between smaller towns and urban areas. As Greyhound continues to operate in the United States, we must recognize that the decision to close down operations in Canada will have a ripple effect on our tourism industry and will result in consumers having less choice in how they reach their vacation destinations.
Our transportation sector is of vital importance for the tens of thousands of Canadians employed in the sector. These are real people who need support and must not be treated as political pawns. For nearly a year, the government has been promising them support but repeatedly failing to deliver in a meaningful way.
To conclude, my Conservative colleagues and I are calling on the government to deliver support to our aviation sector. That means restoring Canada's regional routes, ensuring passengers receive refunds, making sure travel agent commissions are not clawed back, ensuring Nav Canada maintains adequate service levels for air traffic controls and bringing forward a comprehensive travel restart plan so that Canadians are no longer left in the dark.
:
Madam Speaker, it is an honour to have the opportunity to rise in this virtual chamber to participate in tonight's debate.
I have the privilege of serving on the House of Commons Standing Committee on Transport, Infrastructure and Communities with an outstanding group of MPs from all parties. Over the course of the past several months, the committee had the opportunity to hear from many representatives from the country's air travel sector. Yesterday the committee presented to the House its report, entitled “Emerging from the Crisis: A Study of the Impact of the COVID-19 Pandemic on the Air Transport Sector”. However, the committee witnesses were unanimous in their bleak assessment of the effects of the pandemic on air travel.
Few sectors have been hit harder by the pandemic than the air travel sector. Airlines, airports, independent travel advisers, air traffic controllers and small business owners who run the souvenir shops at the airports have all experienced job losses, cutbacks and hardship. However, unlike many sectors, restarting the air travel sector will not be like turning on a light switch. The air travel sector has faced many unique challenges during the pandemic, the effects of which will be felt for years to come.
For this evening's debate, I will focus my remarks on the difficult situation in which Canada's airports find themselves.
The air travel sector cannot function without financially viable airports. After all, the airplanes have to have some place to land and some place to take off from. When most of this country's airports were privatized in the 1990s, a fee structure was established with the airlines that was based on air traffic volumes. This country's airports could rely on a steady stream of revenues as long as there was also a steady stream of commercial airline flights. All of that came to a halt in the spring of 2020 at the start of the pandemic.
In my home city of Regina, the Regina International Airport went 10 days at the beginning of the pandemic without a single commercial passenger flight. For much of the pandemic, air travel levels were down as much as 90% compared to pre-pandemic levels. This lack of air travel means a lack of revenue for this country's airports.
As a result, airports had to lay off staff and dip into cash reserves. When the cash reserves ran out, they had to go to the bank and borrow. Today, this country's airports have debt loads that they have never seen before. How will they pay off this debt? It will be by passing the cost on to consumers as air travel resumes after the pandemic.
Now, some people may shrug their shoulders and say “So what? Airport debts and debt servicing fees get passed on to air travellers; that is life.” Maybe it would not be such a big deal if Canada were a closed country that lived in isolation, but we are not.
Air travel policies of the American government are bound to affect Canada and the rest of the world as well. It is worth noting that within weeks of the start of the pandemic, the U.S. Congress passed the CARES Act to provide $10 billion in financial relief to American airports. This means that American airports have had financial certainty throughout the pandemic and have not had to go deep into debt. It means that American airports will not have the financial burden of debt and debt servicing costs to pass on to their customers.
Even before the pandemic, flying out of a Canadian airport was significantly more expensive than flying out of an American one. This is because, historically, American governments have viewed airports as an infrastructure investment, while in Canada, most airports operate on Crown land and serve as a source of revenue for the federal government through ground lease payments.
As Canadian airports take on more and more debt and pass more and more debt and debt servicing costs on to passengers, American airports become relatively less expensive by comparison. This poses a real long-term problem for Canadian airports, especially those that are located within driving distance of the U.S. border. The Bellingham airport in the state of Washington is just a short drive across the border from Vancouver. The Niagara Falls airport is on the American side of the border, just a short drive down the highway from Hamilton and St. Catharines. The airport in Plattsburgh, New York, already advertises itself as “Montréal's U.S. Airport”.
All along the Canada-U.S. border, the story is the same. American airports will become more attractive options as Canadian airports struggle to find ways to pass their crippling debt loads on to Canadian travellers. These debt loads will have a ripple effect across the air travel sector as Canadian airlines, independent travel advisers and hotels lose business across the board.
What could the government do to help this country's struggling airports? I would say one thing the air travel sector really needs right now is a safe reopening plan. The quicker we could get Canadians flying again, the quicker airline and airport revenues will rebound, and all of the harmful effects of the pandemic that I have described could be minimized.
However, the biggest challenge facing the air travel sector is a lack of customers, caused by uncertainty in the marketplace. The pandemic has thrown many sectors of the economy into chaos, including restaurants, movie theatres and clothing stores. Most businesses are primarily governed by their provincial governments, and most provincial governments have already spelled out a safe reopening plan based on vaccination levels.
For example, in my home province of Saskatchewan, in just three more days restaurants will no longer have to limit the number of customers seated at a single table, although customers will only be able to order à la carte and buffets are not allowed yet. Just think of how much easier it will be for restaurant workers and owners and their customers to plan a major dinner party when there is a clearly spelled out reopening plan for restaurants.
Now, imagine if the federal government were to do the same thing for air travel. I am sure that after well over a year of this pandemic, many Canadians would really like to start making their summer travel plans. Airlines, travel advisers, tour operators and hotels would all like to start making bookings.
What are the rules? More importantly, what will the rules be next week and next month and in the coming months as vaccination levels continue to inch upwards?
If someone who is fully vaccinated flies down to the States and then flies back, how much longer will that person still have to go through the mandatory 14-day quarantine? How much longer will that person still have to go to the quarantine hotels? What about someone who is only partially vaccinated? What about a husband and wife who are fully vaccinated but whose children are too young to receive the vaccine?
That is just for international travel. What about travelling within Canada? Are we going to see a patchwork of different rules within Canada, whereby some provinces require quarantines and others do not? Will it be easier for Canadians to fly to the United States for their summer holidays than to other provinces within Canada?
These are all very reasonable and practical questions that Canadians are starting to ask. The absence of any answers and the absence of any safe reopening plan from the federal government is putting another summer travel season in jeopardy. The loss of another summer travel season would cause undue harm, not only to this country's airports but to our airlines, independent travel advisers, air traffic controllers, tour operators and so many Canadians who depend on a properly functioning air transport sector.
I call on the government to present, as soon as possible, a safe reopening plan for air travel.
:
Madam Speaker, I am speaking from the traditional territory of the Kwanlin Dun First Nation and the Ta'an Kwach'an Council.
I want to talk about the background to the estimates and the budget, and the fall economic statement that provides the background that the budget is supporting, that the estimates will be supporting. I will talk about transportation and a number of other items.
The biggest emphasis in the budget is to finish the fight against COVID, and there is a large contribution to the provinces and territories for that. It is still not over and that is very essential. There is support for individuals and businesses to get through this economic fallout. We are on the road of recovery, but as a number of interventions have shown, in the tourism industry, for instance, there is still a lot of time before everyone is fully recovered, so we need to keep those supports going.
The third big objective is for the economy to come roaring back in a way that includes everyone, with special supports, for instance, for women and for indigenous businesses. We want the economy to come back with a green economy, which has so much potential for jobs. We want an economy that will come back in a competitive way, where we can compete internationally, that creates a lot of new jobs, particularly for youth.
People who have experienced not having a job at some point in their lives, and they have to support a family, feel a big pit in their stomachs. There are very few things that can be so scary, upsetting and devastating. Although it was a very large investment, as many people have said, a huge investment, it was very essential to keep people working through these difficult times. That was obviously a big objective and the parties co-operated in a very good way to achieve it.
Based on the questions of some members, they may not have been aware that there were 861,000 CEBA loans for over $46 billion. There were 5.3 million jobs saved with the wage subsidy of $73 billion. Our first rent assistance program saw 140,000 applications approved and 1.25 million employees were assisted with $2 billion. The second rent assistance was worth $2.5 billion and helped over 150,000 applicants.
Even with all these programs, there may have been people who fell through the cracks. As everyone knows, these programs had to be created very quickly if we were going to help people from going under. There may have been cracks that were not filled, so the regional relief and recovery fund was put into the regional development agencies across Canada, with the tremendous leadership of the . A few fell through the cracks, but that fund helped over 23,000 applicants across the country, with $1.4 billion.
Tourism is important to me, and out of those amounts of money, tourism alone had over 4,400 approvals for $392 million.
A lot of these supports were so critical to keep jobs during these unprecedented times not seen since the war. The fall economic statement added to that. For tourism, there is the HASCAP program. The RRRF I just mentioned was so needed and efficient that we had to increase money for it. Then there was the regional air transport fund, which is so important in rural Canada.
One of the most exciting things was the announcement of the new regional economic development agency for British Columbia. British Columbia is a unique area and there will be all kinds of special supports, recognizing that uniqueness, with this new agency.
Of course, that leaves the prairie regional development agency on its own with all those previous funds, which it can now enhance even more its work, over and above all the projects that went there through the RRRF already. This will be great for the Prairies, and they can lead the way for us in resource projects. Their human resources are very bright, great research done is done in the prairie areas, and all kinds of businesses can lead with exports and help the recovery in Canada.
I want to talk about some of the things that are really essential for the north. First, I am most excited about the increase in the northern residents deduction for the Territories and the northern parts of the provinces. A lot of people were not eligible for this deduction. People could only claim it if their employer put it on their T4 slip, gave them a travel allowance and then they could collect this northern residents travel reduction. However, this budget has allowed for everyone to have access that deduction. They do not need their employer to include it on their T4 slips. That will be so exciting for the economies of the north, and for the people of the north as a personal support.
Our biggest employer and hardest hit one is tourism. There is a record amount of additional funds specific to tourism in the budget, $1 billion, of which $200 million is for local festivals, cultural events, heritage celebrations, local museums and amateur sports events. In my riding, we have all those things in great numbers and, of course, they greatly contribute to employment and to our economy.
There are another $200 million for the major events in those areas, such as festivals, cultural events, heritage, local museums and amateur sports events. That does not affect my riding so much, but in the big cities of the country, that will be critical for those activities to carry on, to provide employment and to keep jobs. For decades, I think parliamentarians have underestimated the cultural sector and its importance to the creation of jobs and to moving forward our cultural ideas and thought processes.
There are also $100 million for Destination Canada. Canada has not put as much into marketing our great nation as some other countries of the world. It is something I have always advocated for, and I am so excited to see that funding for Destination Canada, again to help our tourism industry.
Then we have the $500 million tourism relief fund, once again, recognizing the tourism industry and how hard it has been hit. Our borders are open to all the other businesses. Trucks can come across. The one thing the border is not open to during the pandemic is tourism. On top of all that for tourism, is a $700 million for small business financing fund. It will not all go to tourism businesses, but again, it provides more support for small businesses to particularly help them in the green area, to be inclusive, to be competitive and to create more jobs.
In the north, our two biggest sectors are mining and tourism. In my riding, the mining sector's first request was support for hydroelectric power. We are running out of power in the north. Therefore, the budget includes $40.4 million to study and prepare potential hydroelectric projects across the north.
The Yukon government is one of the most progressive in the country with its climate change plan and reducing greenhouse gas plan, and it wanted some assistance, so the budget has included $25 million for it.
As a Conservative member mentioned earlier this evening, and I believe it was the member for , tourism will not be back right away. It will take some time, yet our rent subsidy and our wage subsidy are running out this month. Therefore, unless we get the budget implementation act passed, there is going to be a lot of difficulty in the tourism sector, both for businesses and for NGOs that need the wage subsidy and the rent subsidy, which this budget implementation act, Bill would extend into the fall.
Another item that is very important for us and that probably has not been mentioned much is the centre of excellence for critical minerals. Critical minerals are needed a lot for batteries, for one thing, so they are absolutely essential, first for the mining industry and to have a clean environment to deal with the climate change crisis. As members know, one country in particular is trying to corner the market on critical metals, and we have an agreement with the United States. It is very important for us, for various reasons, so I am very excited to see that in the budget.
In past budgets, there has not been so much for communities, but communities were hit hard by this. Their various types of support were also reduced during the pandemic. I was delighted to see a Canada community revitalization fund, something brand new. There is $500 million there so the small communities across the country can have projects that are very important to them.
There are a number of supports for seniors. During our term, we increased the GIS for the lowest-income seniors, and there are several other supports for seniors during COVID. There is a huge increase to the new horizons for seniors program, and there is an addition in the budget of 10% for seniors over 75 to add to all that, for the most needy seniors.
Then there is a very large Canada digital adoption program. As members know, we are in the 21st century, the digital economy. It is a lot of learning for me, but if we are going to keep up with the rest of the world, our businesses have to keep up, so it is great to have that fund to help businesses transform over. There are a lot of jobs for young people in there as mentors to help the businesses transfer into the digital economy.
There is also the Canada recovery hiring program. As I mentioned, one of the big objectives is to hire more people, to get people back to work. If businesses had to lay people off, reduce their hours or reduce their wages, all those things can be supplemented from June 6 to November 20 through the Canada recovery hiring program. The very flexible idea is that for each month or each eligibility period for this program and for the wage subsidy, they can pick whichever one is best for their company.
I do not have time to talk about it now, but there are a number of improvements to small-business financing. Certainly there are significant investments in first nations. People will remember back to the biggest investment in history of $5 billion, proposed by Paul Martin for the Kelowna Accord. Well, this budget has $18 billion for first nations and $4.3 billion for infrastructure, for instance.
In my career, very seldom have I seen money for social financing, for NGOs and charities, but in this budget there is $200 million for a social financing fund. To get companies ready, there is an investment of $50 million in the investment readiness fund, because the first one was so successful it was all used up. There is a very unique concept being floated of social financing bonds for those who want to invest to help the country in a socially responsible way.
As I mentioned, communities need support, and there is a community services recovery fund to help various community services and NGOs adapt and modernize, after they have been hit so hard by COVID and so many of their resources have been decimated by COVID.
There is money for domestic vaccine production, which I think everyone appreciates. There is a huge increase, another increase, in the broadband fund, and that is very important for my riding, as well as cellphone coverage. There are 100,000 people being lifted out of poverty with the increase in the Canada workers benefit. There are huge funds for training, as I said, to get people employed again, 500,000 people, of which 215,000 are youth.
I will mention something that probably no one else will mention, the polar continental shelf funding of $24 million. That is to help Arctic research.
There is also $140 million for food security.
The Liard First Nation has a great housing manufacturing project that I am supporting. On self-governing first nations housing, they have great ideas. I would also like to see support for getting off-grid, remote mines off diesel, and increases for the equipment and O&M for indigenous broadcasters, who do such wonderful work in my riding.
I really appreciate the large investments in salmon, to enhance salmon on the west coast. They come right up into my riding. Salmon are very important for indigenous culture and ceremonies, for one thing, as well as for food.
There is also the doubling of the student grant for two more years and extending the waiver of interest to 2023.
I want to talk about aviation in the north for a bit. We really appreciate the northern air support that started almost from the beginning of the pandemic. It is important to know that we need interlining with the mainline carriers. We cannot let the mainline carriers put our small, local carriers out of business. We really need the mainline carriers to interline, to have co-operative arrangements where everyone wins. Neither airline has to go half-empty. The big carriers could get new customers for their overseas routes, while the local carriers that service the north could get the flights down to Edmonton, Vancouver, the big cities that are so needed for their competitiveness.
I could talk about a lot of other things, but I do not have time now. The Conservatives brought up that what is really important for them is a plan. We have huge plans. The fall economic statement was a 168-page plan. It had all sorts of things to return the economy. Then the budget is a 740-page plan.
I will just mention some of the items in that plan to get companies back to work, over and above all the ones I have already mentioned. There is money for food security, indigenous and women entrepreneurs, an A1 strategy, artificial intelligence strategy, the Canadian Institute for Advanced Research—again, we are in the 21st century—a quantum strategy, the Canadian Photonics Fabrication Centre, business-led R and D through the colleges, Mitacs for 85,000 placements, CanCode, the net-zero accelerator to help the resource industry, the clean-growth hub, support for Measurement Canada, strategic innovation funds, IRAP expansion, which has been so important for innovation in Canada for decades, Elevated IP, the strategic intellectual property program review, the innovation superclusters, the data in the digital world, and support for the Standards Council of Canada and the Competition Bureau.
I encourage everyone to support all these items that I have mentioned, and the ones in the estimates, so that we could get Canadians back to work and businesses could keep our economy going. We would not need to continue government supports for either individuals or businesses once we get everyone back. We need to continue support for Canada and around the world. When COVID exists anywhere in the world, it is still a threat to us.
I will leave it at that. I hope we get support from all parties, which have been very co-operative and helpful during the pandemic.