Budget 2025 Implementation Act, No. 2

Bill C-31, Budget 2025 Implementation Act, No. 2 · Report stage · 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)

14 statements

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

Liberal
“The member's speech was not accurate. Our Prime Minister met the 2% military spending target in his first six months, and military applications are the highest they have been in 30 years. The Crown corporation the member talked about will add accountability, efficiency, and transparency. He needs to rethink his position.”
Official Hansard

Mr. Speaker, that speech failed to meet reality, quite frankly. It was off on so many points, and I wish I had the time to legitimately critique the member’s comments. The member started off by talking about credentials. I will compare the credentials of our Prime Minister to the credentials of the leader of the Conservative Party any day, as Canadians did in the last federal election. Then he went on to talk about our men and women in the forces. Is he serious? The Prime Minister, in his first six months, achieved the 2% target. We have seen more people putting in applications to be members of the forces this last year than in the last 30 years. In many ways, we are moving forward. The Crown corporation he was referring to would ensure more accountability, more efficiency and more transparency. The member needs to get outside of the Conservative—

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

Liberal
“Our budget comes out tomorrow. It will keep helping people afford life, supporting our military, and building a stronger economy. This bill is a good example of what the government can do to help. I want to know if the opposition member thinks the government should do anything to help the economy, or just do nothing.”
Official Hansard

Mr. Speaker, we have one more sleep until the November budget. It is coming up tomorrow, and I believe Canadians will see a continuation of what the Prime Minister and every member of the Liberal caucus have been pushing forward: dealing first-hand with affordability, supporting the Canadian Forces and building a stronger and healthier Canadian economy, one that works for all Canadians. Bill C-31 is a good example of the types of things the government can do. Does the member believe there is anything the government can do to support the Canadian economy outside of stepping aside and doing nothing?

Michael Coteau, Scarborough—Woburn

Liberal
“I support this budget bill. It removes barriers and gives all Canadians, no matter where they grow up, a fair chance to succeed.”
Official Hansard

Mr. Speaker, it is a pleasure to speak today. There are many reasons why MPs decide to run for office and are here today. We have different pathways and different motivations, things that have happened to us in our life that have led us here to the House of Commons. I have said this many times: I believe that every single member of the House has the intention to build a better country, a better Canada. I have never moved away from that. Some of our decisions come from so many different things. Our pathway in life and our trajectory can change based on just one simple incident. It could be anything that happens to us that brings us here. I remember when I was about 19 years old, standing in front of the House of Commons and saying to myself that one day I would like to be in the House of Commons as a member of Parliament to speak on behalf of my community. I was from a neighbourhood called Flemingdon Park, a small neighbourhood in Toronto. It is one of the suburbs. It was a neighbourhood that was very challenging. There was poverty, youth incarceration, youth violence, and youth gun violence that caused murder. It was a really challenging place to grow up for many people. A lot of people felt disconnected from the element of change. However, at 15 years old, something happened to me that was remarkable. There was a pool outside my apartment building. The pool had several buildings around it. It was full, and it was the end of winter. There was a hole in the fence, and kids were playing on the ice. I was afraid that some kid was going to fall through, so I told the superintendent that someone was going to get hurt. No one listened to me. Then I spoke to the manager a week later. No one listened to me. Then I picked up the phone and called the member of the provincial parliament, who was a Conservative, I have to say. Within one hour, the MPP fixed the hole in the fence. I was shocked. How could a 15-year-old just pick up the phone after a week of trying, and have that fence fixed? It changed my whole perspective on how we get things done. I was just amazed. I was very interested in politics because of that experience I went through. That simple experience sparked an interest in me. Over time, it became a passion. In my neighbourhood, often people felt like they were discounted, pushed aside and not listened to. That phone call gave me a completely different understanding of how we could actually help people. In my neighbourhood, there were so many young, talented people. I saw intelligence, creativity, ambition and potential. I went to elementary school with many of these young people. By the time we ended up in high school, or even junior high school, we started to see people go off on different pathways. There were a lot of young people I knew in my neighbourhood who were incarcerated. I was once interviewed when I was a school board trustee, and I said that I knew more young people from my neighbourhood, my community, who had been murdered than had gone off to university. People did not believe that, but it was the absolute truth. These were not statistics to me. They were people I grew up with. It always created a sense of sadness in me. I decided when I was a kid, after I saw that change with respect to the swimming pool and after I made these observations, that one day I would grow up to make changes to balance the playing field, open up opportunities and make things a bit more fair. I thought about going off to university. The next-door neighbour told me that I should really try. He had been a teacher in the Caribbean. He gave me the $50 to apply to go to university. I got in and got involved in politics. I did not know a single person involved in politics. I went to the public library. I decided that I was a Liberal, based on all the different information I read about multiculturalism, the creation of these great national programs, and the change in immigration policies that allowed my family to come to this country. I read about Louis St. Laurent’s bringing forward old age security in 1952, and about the Canada pension plan by a Liberal government in 1966 and the guaranteed income supplement in 1967. The philosophy of the Liberal Party really aligned with the observations that I experienced in my life. I went to the Liberal headquarters and I asked if I could volunteer. They opened the door, and I got involved. This brings me to this budget debate. When I look at a federal budget, it is not just the numbers I see. It is the opportunity that presents itself for Canadians. The decisions that families in Scarborough and the rest of the country have to make based on finances are tough decisions, and people are looking for ways to remove barriers in order to provide more opportunities. We have been able to create new national programs over the last decade, such as $10-a-day child care, the Canada child benefit, the dental plan, the pharmacare plan and the disability benefit. These are pieces that really resonated with me, to add to those national plans I talked about. It made me feel as though the principles behind what we were doing as a government, these good Canadian values, were aligned with the whole point of what equity and inclusion are. When I see parents struggling to afford child care, someone with a disability struggling, a child arriving at school hungry or a person who cannot get a certain prescription, I see that building these types of programs is about equity. It is about removing barriers so people have the opportunity to reach their full potential without encountering those types of barriers that are so challenging. Inclusion means ensuring that everyone has the opportunity to participate fully in our communities, workplaces and our country. It means that a parent has a better chance of accepting a job offer, because they can get to work because there are affordable opportunities for child care. My entire life in politics has been about taking items such as a budget and looking for ways to make sure opportunities are there for Canadians. I often think about being 19 years old, standing in front of the House of Commons, looking at this institution and imagining that one day I could serve as a member of Parliament. I think about being 15 years old and figuring out that someone could pick up the phone, engage with their representative and get some change done. I think about the young people I grew up with and their missed opportunities. Those experiences shaped my entire perspective on what public service meant. They taught me that a person’s circumstance should never define their potential. It taught me that the government can actually make a meaningful difference in the lives of people. Governments can create opportunity for people who might otherwise be left behind. The experiences reinforce my beliefs that a person’s income, disability or postal code should never determine or limit their future, and that is what equity and inclusion mean to me. This is where the opportunities come through a budget. I believe that a budget should be about seeing more than just a financial commitment or trajectory. I see an opportunity to build a country where more people have a chance to succeed, where families have the support they need, where children can realize their potential and where no one is left behind because of the circumstances they were born into. This is the Canada I believe in, and this is what has brought me here today. I believe that this budget would provide an opportunity to remove barriers, set people up for success and allow people to reach their full potential. That is why I am a Liberal, that is why I support this budget, and that is why I support the government.

Michael Coteau, Scarborough—Woburn

Liberal
“Questions about the environment are important. No government in Canadian history has done more to protect the environment than ours. A budget must balance many priorities, and that is why I support this bill.”
Official Hansard

Mr. Speaker, any question that is about the environment and protecting the spaces around us is a very valid question with a very valid point. If we look at the history of the Liberal Party and the Liberal government with respect to their commitment to the environment, we will not find another political party or government in the history of this country that has done more to protect and embrace the Canadian environment. A budget is really about finding a balance. This budget is about many things, and that is why I support it.

Ben Carr, Winnipeg South Centre

Liberal
“I used to work in public education. I want the member to explain how this budget process can be used to teach people in his riding.”
Official Hansard

Mr. Speaker, I really enjoyed my colleague’s speech. As I have talked about many times in the House, I spent well over a decade in the public education system, so his reference to young people was one I appreciated. I am wondering if the member can offer some commentary further to what he gave in his remarks a moment ago about how the budget process and this exercise we undertake here in Parliament can be used as an educational tool for those he represents in his riding.

Michael Coteau, Scarborough—Woburn

Liberal
“Education is the best investment we can make for our families and our country. I visit schools often to talk with students about this bill. I want young people to pay attention to politics and push back against bad decisions made by politicians.”
Official Hansard

Mr. Speaker, I thank the hon. member for his commitment to young people, to families and to education. There is no question that education is the best tool we can use for success and to build a strong Canadian individual and family. That is the best investment, I believe, we can make. I try every single Friday to go to at least one elementary school. Last week I was at a school, and we talked about Bill C-34 and the impact the bill would have on the school. In fact, a high school has invited me to come talk about the bill. That type of engagement, that type of consultation, is important. I always leave the classroom telling students not to let people make decisions on their behalf without their paying attention, because throughout their lifetime, there will be people in rooms such as this, at city halls and in provincial governments, who will be making decisions on their behalf, and their political literacy has to be at such a level where they can figure these things out and challenge the people who are making decisions if they are bad decisions.

Michael Coteau, Scarborough—Woburn

Liberal
“Canada has a good financial rating. Our budgets look ahead and try to balance our spending. In the end, voters will decide if they agree with our approach.”
Official Hansard

Mr. Speaker, as the member knows, Canada is in a good position when it comes to its financial rating. We have budgets, so we project what is to come, and we look for ways to balance that. Ultimately, the voters will decide who leads this country. It is our responsibility, as MPs, to hold ourselves accountable by communicating with our community and having people agree or disagree with the approach we have taken.

Steeve Lavoie, Beauport—Limoilou

Liberal
“I want the House to pass this budget bill. It helps us build big projects faster. It sets up a buy-Canadian rule for government spending, invests heavily in our military, and helps businesses sell more goods overseas. It also gives tax breaks to businesses buying new equipment and investing in clean energy.”
Official Hansard

Mr. Speaker, it is a pleasure to speak to Bill C‑31. The bill contains a number of new measures, and it would also amend several existing laws. Changes will be made to the income tax regulations, the Excise Tax Act, the Air Travellers Security Charge Act, the Income Tax Act and the Global Minimum Tax Act, among others. Today, I want to focus more on the part that will help us build Canada strong and build it faster. As I have often said in my speeches in the House, over the past few years, we have been building less and less and, in some cases, we have been building little or nothing at all. How can we build faster? I often wonder why it is so difficult for a nation as developed, innovative and educated as Canada to build housing, energy infrastructure and other essential assets. We did it before. Just consider the St. Lawrence Seaway. Major construction work was carried out between 1954 and 1959. In barely five years, a 300-kilometre stretch of water became a navigable waterway, which developed into a navigable system connecting the St. Lawrence River to the heart of the Great Lakes, covering more than 2,000 kilometres. I will let that sink in. There is hope. Canada’s new government is building one Canadian economy through major nation-building projects that will connect our regions and create hundreds of thousands of high-paying career jobs in fields ranging from skilled trades to advanced technology. We are moving forward, protecting our sovereignty and diversifying our markets. In my region alone, the greater Quebec City area, important commitments have been made. These include the construction of six icebreakers valued at $11 billion, built by Davie. This project represents 5,000 jobs but, most of all, it represents predictability for the workers and for businesses and suppliers in the greater Quebec City area. My remarks will focus on six aspects of the bill, and I will give a few examples to help everyone grasp the scope of each measure. First, as I mentioned earlier, the bill seeks to fast-track nation-building projects in close partnership with the provinces, territories, indigenous peoples and private investors. For example, consider the creation of the Major Projects Office, which serves as a one-stop shop to speed up the approval and construction of major projects of national interest. Another example is Bill C-5, the one Canadian economy act, which serves as a legislative framework to fast-track projects of national interest, particularly in the energy, transportation and critical minerals sectors. I could also talk about the trade and energy corridors we are developing. Priority is being given to port infrastructure, including in my riding of Beauport—Limoilou, as well as to rail and energy links, to make it easier for Canadian businesses to access international markets. Second, we need to launch the first buy Canadian policy, ensuring that public funds are used to strengthen our supply chains and support local innovation. Let us look at the buy Canadian policy. This is a commitment to leverage federal procurement as a tool to support Canadian businesses, workers and suppliers. I am also thinking about how public funds are invested in infrastructure. This approach is about prioritizing Canadian steel, aluminum and other materials in federally funded projects. Third, we are currently witnessing Canada’s largest defence investment in decades. I am thinking of the launch of the defence industrial strategy to build out our defence sector and increase the competitiveness of our local suppliers. Here are some more examples. Defence spending officially reached 2% of gross domestic product on March 26. We made a concrete commitment to significantly increase investments in the Canadian Armed Forces in order to modernize its equipment and operational capacities. Our approach to defence procurement reflects our desire to strengthen Canadian businesses’ participation in military contracts and supply chains. I spoke here in the House last week about the strategic importance of Bill C-40, which will allow an investment corporation to support companies that want to contribute to the defence sector in any number of ways, whether through loans, guarantees or insurance. We are investing in and supporting the modernization of our Canadian Armed Forces while developing a stronger Canadian defence industry and creating good jobs, all with a view to strengthening our sovereignty. Fourth, we must seize new opportunities in a changing world by launching a trade diversification strategy that will double our overseas exports within a decade. For instance, take our target of doubling exports to Europe and markets other than our neighbour to the south over the next 10 years. This represents about $300 billion in new trade opportunities. Over 20 new trade agreements have been signed in the past year, opening up markets for Canadian producers and manufacturers. We are also creating the strategic exports office, which was announced this year, to support Canadian businesses in the aerospace, defence, energy and infrastructure sectors. Fifth, we must stimulate growth and innovation by lowering investment costs for Canadian businesses through a new productivity superdeduction. The benefits are estimated at more than $9 billion per year. Canada has the most favourable tax system in the G7 for new business investment. Here is a concrete example. Imagine a business that wants to invest in modernizing its production line. It wants to invest in robots to automate its assembly line. For these major purchases and equipment, the business will need cash and will need to take out loans. From now on, that business will be able to deduct its capital cost in the first year. The same goes for Brûlerie Vieux-Limoilou, where I like to get my morning coffee in my riding of Beauport—Limoilou. If this coffee roaster needs to replace a coffee machine, it will be able to write off its purchase. The important thing to understand is that this applies to both large and small businesses. As the October 2026 Monetary Policy Report states, “Rising business investment—bolstered by federal tax incentives such as the Productivity Mega Deduction—and increased adoption of artificial intelligence (AI) support production and labour productivity.” Sixth, we must support a clean economy through Canada’s new climate competitiveness strategy, which involves strengthening industrial carbon pricing, streamlining regulations and introducing tax incentives to attract investments in clean technology. Clean economy investment tax credits provide tax support for eligible investments in clean electricity, clean technology and other decarbonization activities. Fast-tracking clean energy and critical mineral projects will help to develop strategic sectors for the energy transition and improve Canada’s industrial competitiveness. Thanks to Canada’s position as a world leader in clean technology and clean energy, we will be able to create jobs while reducing industrial emissions. Through our climate competitiveness strategy, we want to make Canada a world leader in clean energy and clean technology, while attracting investments, creating jobs and reducing our emissions. The time has come to build our economy bigger and faster than ever, so that Canada can become less dependent on others, more independent and better prepared for the future.

Angelo Iacono, Alfred-Pellan

Liberal
“How does this bill help grow the economy while supporting workers and families?”
Official Hansard

Mr. Speaker, how does Bill C-31 fit in with our objective of building a stronger Canadian economy while supporting workers and households?

Steeve Lavoie, Beauport—Limoilou

Liberal
“People are worried about the cost of living. We are helping them with tax cuts, money for groceries, help for first-time home buyers, and dental care.”
Official Hansard

Mr. Speaker, we are indeed at a pivotal moment, a crucial juncture. The cost of living is a major concern for our constituents, and we must be there to help them. That is why we brought in measures such as the tax cut for more than 22 million Canadians, the Canada groceries and essentials benefit, tax incentives for young people buying their first home, and the Canadian dental care plan, which has been an incredible success. It is brought up every time I talk to people in my riding. We are here for our constituents in these difficult times.

Steeve Lavoie, Beauport—Limoilou

Liberal
“Canada's economic independence matters, especially with American tariffs threatening us. We are protecting it by supporting local businesses. We back the Churchill Falls power project and invested $11 billion in the Davie shipyard, which helps over 600 local suppliers.”
Official Hansard

Mr. Speaker, my colleague is right: Canada’s economic sovereignty is important. Everyone knows what is happening with our neighbours to the south when it comes to the tariffs we are facing. We are supporting our businesses. As for Quebec, my colleague knows full well how we support the Churchill Falls project, which will double electricity production. These are concrete actions. I also spoke earlier about Davie in Lévis, not far from his riding. That is an $11‑billion investment in our region. I remember that when I visited the Davie shipyard, there was talk of creating predictability for more than 600 suppliers within the region alone. When we talk about economic sovereignty, helping SMEs and making decisions about the direction we want to take our economy, that is how we do it: by supporting our local SMEs.

Steeve Lavoie, Beauport—Limoilou

Liberal
“I support creating this defence investment agency. Small businesses and banks often struggle to adapt to new military contracts. This agency will give smaller companies loans and guarantees so they can grow and help our defence sector.”
Official Hansard

Mr. Speaker, I thank my colleague for his question about the investment agency and defence. I gave a speech on this issue because it is so important. I worked in banking for 20 years helping businesses secure funding. Often, when there are new investments or new calls for tenders like these, businesses are unable to adapt. Banks also have a hard time adapting. By setting up this investment agency, which will be able to grant loans, offer insurance and provide guarantees to banks, we will help this sector grow. We are talking about companies that would like to contribute but that are unable to because they lack the liquidity, agility or time to do all that. This agency will enable SMEs to grow and contribute to the defence sector. This is where we need to step in to help the defence sector.

Angelo Iacono, Alfred-Pellan

Liberal
“This bill strengthens Canada's defence and national security. Do the Conservatives support building a Canadian defence industry that helps our military and our workers?”
Official Hansard

Mr. Speaker, I would like to ask my colleague on the opposite side a question. The bill also aims to strengthen Canada’s defence and national security capabilities. Do the Conservatives support the development of a Canadian defence industry capable of supporting our armed forces and our workers?

Dominique O'Rourke, Guelph

Liberal
“The member opposite voted against the budget, but she praised government money that protects jobs from tariffs in her own riding. I want to know if she also opposes the budget's spending on housing, infrastructure, and defence jobs.”
Official Hansard

Mr. Speaker, it was interesting this summer that I saw the member opposite post about announcements of regional tariff relief in her riding, and yet the members opposite voted against the budget, which had large liquidity supports to help businesses affected by the tariff war, the strategic response fund and the regional tariff relief that is keeping people employed. Is the member opposite also opposed to infrastructure spending, housing and helping these industries pivot to defence? Those are jobs that are important in her riding and mine.

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  1. Oral Questions Taxation 2 statements
  2. Oral Questions Taxation 4 statements
  3. Oral Questions Publics Services and Procurement 4 statements
  4. Oral Questions Finance 11 statements
  5. Oral Questions The Economy 4 statements
  6. Oral Questions Finance 6 statements
  7. Oral Questions International Trade 6 statements
  8. Oral Questions Major Projects Office 4 statements
  9. Oral Questions Emergency Management 2 statements
  10. Oral Questions Artificial Intelligence 6 statements
  11. Oral Questions Finance 2 statements
  12. Oral Questions Public Services and Procurement 2 statements
  13. Oral Questions Finance 2 statements
  14. Oral Questions National Defence 2 statements
  15. Oral Questions Housing 2 statements
  16. Oral Questions Major Projects Office 14 statements
  17. Oral Questions Public Services and Procurement 2 statements
  18. Oral Questions The Economy 4 statements
  19. Oral Questions Steel and Aluminum Industry 4 statements
  20. Private Members' Business Wartime Service Recognition Act 12 statements
  21. Government Orders Budget 2025 Implementation Act, No. 2 31 statements
  22. Government Orders Medical Assistance in Dying Safeguards Act 177 statements
  23. Adjournment Proceedings Adjournment Proceedings 4 statements
  24. Adjournment Proceedings Adjournment Proceedings 4 statements