Budget 2025 Implementation Act, No. 2

Bill C-31, Budget 2025 Implementation Act, No. 2 · Second reading · now at report stage in the House Where it stands

What Bill C-31 would do

This budget implementation bill would change federal tax laws by delivering automatic benefits to lower-income individuals and adjusting business, excise, and international minimum tax rules. It would also ban most non-compete clauses under the Canada Labour Code and establish the Defence Investment Agency for military procurement. Additionally, the bill would transfer authority over air travel complaints to the Minister of Transport and make various other administrative changes across government.

Official text (opens in a new tab)

29 statements

Lori Idlout, Nunavut

Liberal
“We must work with Indigenous peoples. They have cared for these lands for a long time, and working with them will help us build a stronger Canada.”
Official Hansard

Uqaqtittiji, I think that is why it is so important, with this speech specifically, that we continue to highlight that we need to work with indigenous partners. Indigenous partners, we know, have been stewards of these lands for generations, and working closely with them will help to make sure that we have a balanced approach to making sure that we can build Canada strong.

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

Liberal
“The member is a strong voice for Canada's north. I want her to say more about the strength and potential of the north.”
  • Question or comment in debate

    Signal 34 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

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Official Hansard

Madam Speaker, first, I must applaud the member in terms of her contributions, whether it is to the northern Prairie regional caucus and beyond or the national caucus, in regard to being that powerful advocate for the north. I very much appreciate her many contributions. The member asked a question earlier today, which amplified the strength and potential of Canada’s north. Could she provide further comments on that issue?

Lori Idlout, Nunavut

Liberal
“We must listen to Indigenous voices in Parliament. People in Nunavut know how to build a good economy while protecting the land and animals.”
Official Hansard

Uqaqtittiji, I am thankful for the wonderful opportunity to share more about the strengths of Nunavut. I mentioned, in my question, Joe, who is from the Kitikmeot region. He is a long-haul truck driver, but also, as I mentioned, he and his family have been stewards of the land for generations. For him, it is striking a balance between economic opportunities that will help with economic prosperity for Nunavummiut while keeping a balance with protecting the environment and making sure they still have access to caribou and marine mammals. These are great strengths that Inuit, in particular, have in the Arctic that I am sure are replicated in the many first nations and Métis stories, which we need to keep hearing in the House of Commons so that when we are talking about Canada, we are also lifting up indigenous peoples, given that June 1 is the first day of National Indigenous History Month.

Lori Idlout, Nunavut

Liberal
“I want transparency in our work. I support the Inuit-led wind project in Hope Bay to help protect the environment.”
Official Hansard

Uqaqtittiji, I am always going to make sure, when it comes to us doing our work as parliamentarians, that we have transparency, of course. I know, for example, that when I asked my question about protecting the environment, I talked about how important the Inuit-led wind project is in Hope Bay—

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

Liberal
“Our government is focused on investing in infrastructure and industries across the country, especially in western Canada. I want to know if the member agrees that we must keep supporting these major building projects.”
  • Question or comment in debate

    Clarity 46 of 100

    Much of this statement used imprecise wording, lacked details on timing or responsibility, or made broad claims without support.

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Official Hansard

Madam Speaker, just over the last year, after Canadians elected a new prime minister and a new government, our Prime Minister and our government have made it very clear how we want to build a stronger and healthier country. The member made a lot of references to Saskatchewan, understandably so. Coast to coast to coast, we have a government that is committed to building the infrastructure and getting the investments. When I think of the provinces out in the prairies, I think of the LNG and the pipelines. In Saskatchewan, we can talk about the copper, the mines, the potash, the canola, and so forth. We have a government that is really focused on building up western Canada. I am wondering if she could provide her thoughts in regard to just how important it is that we continue to support the major building projects that are under way.

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

Liberal
“I want the House to pass this budget bill. It gives people rebates for groceries and cuts fuel taxes by 10 cents a litre until September. It also invests in big projects like the Port of Churchill in Manitoba.”
  • Question or comment in debate

    Respect 84 of 100

    This statement targeted a person rather than their actions or views: “The member was not even born when the Port of Churchill was first being talked about”.

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Official Hansard

Madam Speaker, I must say that it was interesting listening to the member opposite’s statements. At the end of the day, he has not really recognized the true value that is before the House today. What we are talking about is a budget implementation bill that is a reflection of what I believe Canadians want to see. For example, we can talk about the groceries and essentials rebate. We can talk about the excise tax benefit, which is a suspension of 10¢ a litre until September. There are all sorts of wonderful things. There are small items, but also big items. There are big items that Manitoba is benefiting from for the first time in generations. The member was not even born when the Port of Churchill was first being talked about. For the first time since then, we are talking about the Port of Churchill. I wonder if he supports that particular initiative.

Sean Casey, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence

Liberal
“We did not cut $4.2 billion from veterans. That number changed because we now pay market rates for medical cannabis. Veterans still get the same amount of cannabis. I want the member to admit this and stop trying to make people angry with false claims.”
  • Question or comment in debate

    Respect 83 of 100

    This statement targeted a person rather than their actions or views: “he knows better”.

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Official Hansard

Madam Speaker, Oxford University Press chose the word of the year in 2025. That word was “rage bait”, and that speech was exhibit A. When the member claims there has been $4.2 billion cut from the Veterans Affairs budget, he knows better. He knows that the $4.2 billion is an actuarial calculation that simply states the present value of a future obligation for medical cannabis, which is now being reimbursed to veterans at the market rate. There are no cutbacks. The same amount of cannabis is being distributed, only now the price that is being paid is the market rate. That is what is reflected in the $4 billion. Rage baiting is when one takes that and misconstrues it into something they know full well it is not. Is the member ready now to stand up and acknowledge that is in fact the case and stop the rage baiting?

Braedon Clark, Sackville—Bedford—Preston

Liberal
“I want the House to pass this bill. It sets up a new agency to buy military equipment faster and buy more of it from Canadian companies. The world is more dangerous now, and our old way of buying military gear takes too long.”
  • A repeated line

    “Rearm and reinvest in the Canadian Armed Forces.”

    Said 5 times by 5 members since June 1.

    Every time it was said
Official Hansard

Madam Speaker, the world is changing rapidly, profoundly and, in many ways, irreversibly. It is more divided, more volatile and more dangerous than at any point since the end of the Cold War. In this new reality, the assumptions that shaped decades of Canadian defence and security policy no longer apply, and the threats we face are no longer just hypothetical scenarios. At the same time, we are dealing with rapidly changing methods of warfare, driven by the proliferation of drones, artificial intelligence, space-based weapons and new technologies that are still emerging. The world has changed, and Canada must change with it. That is why our government is strengthening Canada’s sovereign capabilities and critical sectors and deepening co-operation with trusted partners. To keep us safe and secure, we are making generational investments to rebuild, rearm, and reinvest in the Canadian Armed Forces, which will have a profound impact on my home province of Nova Scotia, where 20% of Canadian Armed Forces members are stationed. With a bold new approach to defence procurement, we are transforming how we make those investments so that our military has what it needs, when it needs it, and so that Canadians benefit economically from those investments. This transformation is firmly anchored in Canada’s first-ever defence industrial strategy, which was launched this past February. It is a landmark framework that sets a long-term vision for how we can strengthen our defence capabilities while building a more resilient, innovative and competitive industrial base right here at home. At the centre of that strategy is the Defence Investment Agency. The agency plays a critical role in modernizing and accelerating defence procurement, ensuring we can deliver the right capabilities to the Canadian Armed Forces when they are needed most. At the same time, it is driving stronger investment, deeper partnerships and more meaningful engagement with the Canadian defence industry, helping to position Canadian companies to grow, innovate and contribute to both national security and economic prosperity. Let us be honest. In the past, Canada’s defence procurement system has been slow, complicated and fragmented, particularly when it comes to decision-making and accountability. We have all seen this movie too many times before, with our most critical defence procurement projects taking decades to complete in some cases. What we have in this country is a procurement system that at times struggles to respond to urgent operational needs, and this has come at a cost to the readiness of our armed forces, as well as our defence industrial base. Of course, this is not due to a lack of commitment or professionalism; rather, it is a reflection of a system that was simply not built for the dangerous environment we face today. Canadians last year elected a government that would focus on building one strong economy. In doing so, we created Canada’s first defence industrial strategy, which establishes a whole-of-government approach to transform Canada’s defence industry and procurement system. It rightly prioritizes Canadian suppliers and materials wherever possible. It invests in Canadian innovation, commercialization and export potential, and it provides industry with a more streamlined, predictable and transparent demand outlook. The goal is straightforward: to strengthen Canada’s strategic autonomy while building prosperity here at home. This strategy is going to get us there. Over the next decade, we project that we will see an increase in Canada’s defence exports by 50% and that we will raise the share, critically, of defence acquisitions awarded to Canadian firms to 70%, supporting our homegrown businesses and innovators in the defence space. The size, capability and competitiveness of Canada’s defence industry as a result will, of course, grow. That means more high-quality and high-paying jobs for Canadians, from aerospace engineers to cyber specialists and from advanced manufacturing to digital technologies. The Defence Investment Agency is the engine that will turn this strategy into reality. The DIA has a clear and focused mandate to re-equip our military faster and more effectively while leveraging defence investments to strengthen Canada’s defence industrial base and attract private capital into the sector. It is designed to accelerate procurement timelines and bring sustained leadership and accountability to the largest defence investments made in generations in this country. The agency in its current form was launched in October 2025 as a special operating agency within Public Services and Procurement Canada. In a very short time, it has already demonstrated its value, advancing major procurements such as Arctic over-the-horizon radar and the Canadian patrol submarine project, which are foundational to the defence of Canada, which, of course, has the longest coastline in the world. We know that the Defence Investment Agency, to fully deliver on its mandate, must be established as a stand-alone entity with the authorities, governance and agility required to match the scale of our government’s ambition. That has always been the plan. In our spring economic update, our government proposed $103.8 million over five years, starting in this fiscal year, and $22.3 million ongoing, to establish and operate the DIA as a stand-alone organization. Today, we debate a second act to implement certain provisions of the budget, which was tabled in Parliament on November 4 of last year, specifically on the defence and national security production and procurement act. To be clear, the legislation is not about bureaucracy. It is about capability. It is about speed. It is about aligning procurement with strategy, industry with security and investment with outcomes. This includes actively advancing initiatives aimed at reducing red tape and improving efficiency, which would ultimately reduce duplication, increase time savings and streamline processes. These initiatives would allow us to better align with our G7 and NATO partners, which, as we know, is more important than ever, as today’s global challenges, including international peace and security, global economic stability and growth, and the digital transition, require Canadians and allies to work together to find shared solutions. That is why Canada is working with G7 and NATO partners to build a new era of collaboration, one rooted in trusted partnerships, competitive economies and innovation that delivers for people and businesses. This is especially critical when it comes to the defence sector. This moment in history demands seriousness of purpose and a new approach to defence procurement, which is at the heart of our debate tonight. Since day one, our government has acted, and we are seeing results. Last fiscal year alone, Canada invested more than $63 billion in defence, the largest increase in generations. In March, Canada reached the NATO alliance’s benchmark of spending 2% of GDP on defence five years earlier than planned, and we are on a path to meet the 5% NATO target by 2035. That is imperative because when Canada invests in defence, we are investing in Canadians, our workers and our innovators, and all of our future responsibilities. The changes we propose are necessary, timely and forward-looking. They recognize that Canada’s security and economic strength are inseparable and that we must be able to act quickly and decisively in a more dangerous world. By establishing the Defence Investment Agency as a stand-alone entity, we are building a procurement system fit for today and for the future. We are backing our armed forces with the tools they need, and we are backing Canadian industry and business with opportunity and certainty, helping to ultimately establish Canada’s place in the world as a strong, reliable and capable ally. For all of these reasons, I urge all members of the House to support the Defence Investment Agency and, as a result, support a stronger, safer and more resilient Canada.

Braedon Clark, Sackville—Bedford—Preston

Liberal
“The defence industry is very important to Nova Scotia. The budget gives 63 billion dollars to it.”
Official Hansard

Madam Speaker, my colleague’s question was very brief; I thank him for that. As I said in my speech, the defence industry is so important in Nova Scotia that the budget allocates $63 billion to it.

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