Government Orders

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)

107 statements

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“I want to change this bill by removing four sections from it.”
Official Hansard

moved: Motion No. 2 That Bill C-31 be amended by deleting Clause 282. Motion No. 3 That Bill C-31 be amended by deleting Clause 283. Motion No. 4 That Bill C-31 be amended by deleting Clause 284. Motion No. 5 That Bill C-31 be amended by deleting Clause 285.

Sébastien Lemire, Abitibi—Témiscamingue

Bloc Québécois
“I want to change this bill by removing two of its parts.”
Official Hansard

moved: Motion No. 6 That Bill C-31 be amended by deleting Clause 339. Motion No. 7 That Bill C-31 be amended by deleting Clause 340.

Christine Normandin, Saint-Jean

Bloc Québécois
“I want to change this bill by removing several sections from it.”
Official Hansard

moved: Motion No. 8 That Bill C-31 be amended by deleting Clause 341. Motion No. 9 That Bill C-31 be amended by deleting Clause 342. Motion No. 10 That Bill C-31 be amended by deleting Clause 343. Motion No. 11 That Bill C-31 be amended by deleting Clause 344. Motion No. 12 That Bill C-31 be amended by deleting Clause 345. Motion No. 13 That Bill C-31 be amended by deleting Clause 346. Motion No. 14 That Bill C-31 be amended by deleting Clause 347. Motion No. 15 That Bill C-31 be amended by deleting Clause 348. Motion No. 16 That Bill C-31 be amended by deleting Clause 349. Motion No. 17 That Bill C-31 be amended by deleting Clause 350. Motion No. 18 That Bill C-31 be amended by deleting Clause 351. Motion No. 19 That Bill C-31 be amended by deleting Clause 352. Motion No. 20 That Bill C-31 be amended by deleting Clause 353. Motion No. 21 That Bill C-31 be amended by deleting Clause 353.1. Motion No. 22 That Bill C-31 be amended by deleting Clause 354. Motion No. 23 That Bill C-31 be amended by deleting Clause 355. Motion No. 24 That Bill C-31 be amended by deleting Clause 356. Motion No. 25 That Bill C-31 be amended by deleting Clause 357. Motion No. 26 That Bill C-31 be amended by deleting Clause 358. Motion No. 27 That Bill C-31 be amended by deleting Clause 359. Motion No. 28 That Bill C-31 be amended by deleting Clause 360. Motion No. 29 That Bill C-31 be amended by deleting Clause 361. Motion No. 30 That Bill C-31 be amended by deleting Clause 362. Motion No. 31 That Bill C-31 be amended by deleting Clause 363. Motion No. 32 That Bill C-31 be amended by deleting Clause 364.

James Bezan, Selkirk—Interlake—Eastman

Conservative
“The Liberals took a full year to bring this budget bill forward. Part of this bill sets up the Defence Investment Agency, but another bill would cancel that and turn the agency into a Crown corporation instead. That will just reduce oversight and give more power to the prime minister's friend who runs it. The agency has delivered announcements instead of actual military equipment. I want the section creating this agency removed from the bill, and I want the government to properly equip our armed forces.”
Official Hansard

Madam Speaker, it is a pleasure to be able to rise this morning to talk about the report stage of Bill C-31, part 2. For everyone watching out there, Bill C-31, part 2, is the budget implementation act from last year. We are talking about 12 months ago when this budget was actually presented to the House. We are only now dealing with it because the Liberals continue to drag their feet. This is not a priority for them in bringing this forward. They can sit there and heckle all they want, but if the truth be told, Bill C-31 was brought into this House six months ago and we are only getting to report stage now. The Liberals have control of the legislative agenda. If this was a priority for the government, the Liberals would not be here talking about the budget implementation act for budget 2025 when we are just about to hear about budget 2026 later this week. This is just bizarre for the financial planning for our country. The government holds it at such a low priority that we are dealing with legislation that is over 12 months old. We are at the end. We have to keep in mind that the fiscal year for the Government of Canada is April 1 to March 31. The fiscal year ending March 31, 2026, is what this budget actually deals with. We are dealing with a part of a budget that was already passed and dealt with six months ago, so it is just bizarre that here we are, more than six months after the fiscal year has ended, talking about the budget implementation act at report stage. I am going to target most of my comments around division 16 in the budget implementation act, which establishes the Defence Investment Agency. It is completely contrary to what the Liberals are now doing through Bill C-40, which makes the Defence Investment Agency a Crown corporation. As colleagues know, the Conservatives have always supported the Canadian Armed Forces. We have supported our sailors, our soldiers and our aviators with the equipment and support that they have needed, going back since the world wars. What we have witnessed after 11 years of these Liberals is that the Canadian Armed Forces was neglected during that entire time. The way that they have tried to pad the numbers and do creative accounting, which I will dig into as we go forward, really does talk about how the government is all about being performative. If we look at the Defence Investment Agency, which has been operating now for over a year as a part of PSPC, it is all announcements and no deliveries. It is all flash and smoke with no actual fire. We have not seen any kinetic equipment being delivered into the hands of the Canadian Armed Forces since it stood up the Defence Investment Agency. We do not know why the government moved from Bill C-31 and establishing the Defence Investment Agency as a stand-alone agency under Bill C-31 to where now it needs to have Bill C-40 to establish the Defence Investment Agency as a Crown corporation. What has happened in the last six months since this bill was tabled in the House in May earlier this year? I can tell colleagues that this really does come down to Doug Guzman, who is the CEO of the Defence Investment Agency, and a BFF of the Prime Minister. They both worked at Goldman Sachs. They are both investment bankers. Here is an individual who has had little to no experience in national defence or defence procurement and is now the CEO. He was frustrated having to deal with the bureaucracy and frustrated with not having the power he enjoyed in the private sector. He was not happy with the checks and balances, and how the Defence Investment Agency had to go through the Treasury Board and cabinet to get approvals for purchases. He threatened to rage-quit. All of a sudden those stories came out and all of a sudden we got a new bill before the House called Bill C-40. I think it is important to note that clause 47 of Bill C-40 says that if Bill C-31 passes before Bill C-40 does, which is now at the defence committee, division 16 of Bill C-31 will be deleted. It will be repealed even if it is brought into force by the government through the Governor General. If Bill C-31 and Bill C-40 pass, Bill C-40 being dealt with at committee now and having its first meeting on it on Thursday, unless the Liberals continue to slowly drag Bill C-31 through the legislative process, division 16 will be repealed. Why we are still dealing with Bill C-31 and division 16 is beyond me. I do not know why the government would not have been proactive on this and just removed division 16 from Bill C-31 on its own. It had a chance to do it at committee and now at report stage, and, of course, it has not done that. We have one concern about Bill C-40. As I mentioned, the CEO and the Secretary of State for Defence Procurement are not happy about dealing with the checks and balances that exist within our parliamentary process. The way the government is supposed to act and protect the taxpayer to ensure that the dollars are being spent wisely is that all industry and competitors are allowed to bid on projects and to procure from all the players in Canada and around the world the equipment that we need to defend Canada and work with our allies. Bill C-40 would bring more power to a single minister responsible for the Defence Investment Agency, power that can be transferred to the CEO of the Defence Investment Agency, whom we assume would be Doug Guzman, which would increase the risk of more political interference and, because it is a Crown corporation, make it less transparent and less accountable to us as parliamentarians. We have a fiduciary duty and responsibility to the taxpayers of Canada. Yes, we want to buy more equipment for the Canadian Armed Forces. We have to as we live in a dangerous world, but we also need to ensure that we are protecting taxpayers. We have to make sure that we are getting the right equipment, and that means we have to listen to the Canadian Armed Forces. The Liberal government procured equipment that has not been in the best interests of the Canadian Armed Forces. I am talking about the Kingfisher CC-295s, which were sole-sourced by the Liberals before they had the Defence Investment Agency. Because they kind of fumbled along in the replacement of our search and rescue fixed-wing aircraft in B.C. and across the country, they ended up buying a plane through a sole-source agreement that is not fit for purpose. That plane is still not certified as operational. Not all the planes have been delivered, even though this contract goes back several years, and the Canadian Armed Forces is making do with our old equipment, including some of our old Hercules, to get the job done to protect Canadians when we have to do search and rescue operations. The other one is the GlobalEye. The Defence Investment Agency in May of this year at CANSEC advised the Prime Minister, when he was speaking at CANSEC, to go ahead and purchase the GlobalEye without having a competition. We have three options. All three of them do not necessarily meet the operational shortfalls of the Canadian Armed Forces, but we should have run a competition to see what was in the best interest of industry, Canadian jobs and making sure we have the right platform for the Canadian Armed Forces to do the job it does. Again, there was political interference in sole-sourcing a product that is not necessarily useful to protecting Canada. We are also seeing political interference from the government on buying F-35s. It is reviewing it and reviewing it. We just learned last week it is putting a pause on buying Black Hawk helicopters for our special operations forces. Every time it does this, it makes Canada less safe. The Liberals like to talk a good game on national defence, but at the end of the day, they have not delivered. They have done creative accounting to come up with the numbers to meet the NATO target. Their actual expenditure is based upon the Library of Parliament. It was only at 1.05% in the last year under Justin Trudeau. When we look at the last three years of Trudeau, we see that he cut the defence operation budget by $2.7 billion and we know that the government today, despite saying it was spending more on national defence, is actually cutting the operational budget by 10%. That reduces our readiness. That equals over $2.9 billion out of the budget of the Canadian Armed Forces. That has to stop. We need to make sure we properly equip, train and increase the readiness of our forces.

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

Liberal

Linked statement

“Our government doubled defence spending to 2% of Canada's GDP in six months, and we gave the military overdue pay raises. The previous government spent far less for ten years. The member should apologize to our troops for giving misleading information about our record.”
Official Hansard

Madam Speaker, I am sure members would recognize the irony of that, coming from someone who used to be the parliamentary secretary for defence when the government spent 1% of Canada’s GDP toward the Canadian Forces. Within six months, this Prime Minister and this government brought it to 2% of Canada’s GDP. He can talk to members of the Canadian Forces who have received increases in pay, which were long overdue. This government has done so much more in the first 18 months than Stephen Harper ever dreamed of in the 10 years he was in government. My question to the member is, because he is so focused on this, will he apologize to members of the CAF for what some might suggest is somewhat misleading information, when this government has provided the supports for CAF that were unheard of in the last 20 years?

James Bezan, Selkirk—Interlake—Eastman

Conservative
“The government under Justin Trudeau neglected the military for ten years and failed to buy equipment. When it finally raised pay for our troops, it took the money right back through higher rent and smaller housing allowances, leaving them with less pay. The member should apologize for how the government treats our forces.”
Official Hansard

Madam Speaker, it is rich coming from the member for Winnipeg North. He knows for a fact that he sat in this chamber when we watched the government, under Justin Trudeau, continue to claw back and not make any procurement choices for the Canadian Armed Forces. We know that the wage increase for the Canadian Armed Forces was well overdue, long overdue, because the government did nothing of the sort for the 10 years under Trudeau. I can tell members that immediately after the government gave the actual increase, it clawed it back. Guys were having to pay more for rent and had their housing allowances decreased, and because of that, their actual take-home pay was less. He should apologize for the shell game and smoke and mirrors that the government continues to play with our forces.

Gord Johns, Courtenay—Alberni

NDP
“We should not be debating the old economic plan two days before the new budget. The government will not fund a local housing project in my riding for people with mental barriers just because work on it already started. The free market alone cannot fix the housing crisis without non-profit housing. People with disabilities need special support.”
Official Hansard

Madam Speaker, first, my colleague is absolutely right. Here we are debating the spring economic statement two days before the delivery of the next budget. It is completely outrageous. I will talk briefly about an organization in my riding, L’Arche Canada, which has a project called L’Arche Comox Valley. It is trying to get a project going so it can help people with mental barriers, and the government keeps denying any funding for it. The government comes up with obscene and absurd reasons why it cannot fund it, saying that it will not be able to fund it now because the project has started. This is going to be completely out of reach for people. These are people who absolutely need our help. As well, the Build Canada Homes has not supported people. Nowhere in the world has the free market solved an affordable housing crisis alone. It needs non-market housing. Does my colleague agree that people with mental barriers and disabilities need special support?

James Bezan, Selkirk—Interlake—Eastman

Conservative
“I agree that people with mental health issues and disabilities deserve government support. The Liberals have not given it to them. Their housing program has not built any homes. Fewer homes are being built, and young people cannot afford to buy one.”
Official Hansard

Madam Speaker, I agree with my colleague. There is no question that people who are dealing with mental health issues and other disabilities deserve the support of the government. Unfortunately, what we have seen under the Liberals is that none of that has happened. He talks about the Build Canada Homes program. It has not built any homes. Housing starts in this country continue to decline, and that is making it unaffordable for young Canadians to enter the housing market.

Blaine Calkins, Ponoka—Didsbury

Conservative
“I want my colleague to remind the House how poorly equipped our military was in 2006, and how much the Conservative government improved it. Under Stephen Harper, the economy grew, and our yearly military spending increased by over $4 billion. Because our economy is doing so poorly now, the Liberals' military spending targets will actually mean less real money than what Harper spent.”
Official Hansard

Madam Speaker, I would like my colleague to remind the House what exactly it was that Stephen Harper inherited when he became prime minister in 2006. I remember our troops being in Afghanistan in green combat uniforms and Iltis Jeeps. By the end of that combat mission, our troops were some of the best prepared and best equipped in the world. The Liberals talk about the 1% of GDP, but the GDP grew so much when Stephen Harper was prime minister that actual defence spending grew by over $4 billion a year annually for our troops. This information can easily be searched. At the current rate of economic collapse in this country, 2% of the Liberals’ GDP is probably going to be less than 1% of what Harper did.

James Bezan, Selkirk—Interlake—Eastman

Conservative
“The previous Conservative government actually grew military spending and bought new tanks, planes, and helicopters. We did not inflate our numbers like the Liberals do by counting thousands of Coast Guard workers as military defenders.”
Official Hansard

Madam Speaker, my colleague from Ponoka is completely right. Not only were we growing the budget, we were growing the investments in the Canadian Armed Forces and making sure they had things like new LAVs, new tanks, new TAPVs, new Chinook helicopters, new Hercules aircraft and new C-17s. All that had been bought, and our actual increase in defence spending took us up to over 1.4% under the old system, where we only calculated defence spending and did not add in, as the Liberals have done, everything from the Canadian Coast Guard. We just saw a story in Blacklock’s this week that 7,378 Coast Guard employees are now national defenders, even though none of them are paramilitary or trained in the military and have told us at committee over and over again that if they came into conflict, they would leave the scene of the event.

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“I do not want this budget bill to pass. It does nothing to help Quebec's forestry and aluminum industries, even though American tariffs hit our province the hardest. It also gives more subsidies to oil companies, weakens pesticide rules, and limits oversight of government contracts.”
Official Hansard

Madam Speaker, this week, in fact the day after tomorrow, the Minister of Finance will table the 2026-27 federal budget. I sincerely hope that the minister will heed Quebec’s requests regarding important sectors like aluminum and forestry. In Laurentides—Labelle, particularly in the northern part of the riding, the forestry sector is a major part of the economy. It is one of the three economic pillars of the Antoine-Labelle RCM. Some people in our communities are worried. I am talking specifically about wage earners who, because of the tariffs, feel that a sword of Damocles is hanging over their heads. I am also thinking about the entire business community, local merchants, and the vitality and appeal of our region. When we talk about supporting specific economic sectors, it is because they carry a significant economic weight in the region, and any hardship they face will have far-reaching repercussions throughout the broader economy. The Minister of Finance should be sensitive to this reality, given that he himself represents a region with a strong forestry sector. However, Bill C‑31 does nothing to address forestry, despite the Bloc Québécois’s offers, requests and proposals. Indeed, we made thoughtful proposals developed in consultation with key stakeholders in the sector. A year ago, in fact, we asked a number of municipal officials to come to Ottawa, including Daniel Bourdon, reeve of the Antoine-Labelle RCM and mayor of Mont-Laurier, as well as the mayor of Ferme-Neuve. They were here to support the measures we were proposing, alongside a number of softwood lumber stakeholders, including Unifor, Rémabec and Chantiers Chibougamau. The Bloc’s proposal made sense then and it still makes sense today. It would have cost the government nothing. The idea was to use the customs duties collected to help support the forestry sector. It was a win-win situation for everyone. Our proposal fell on deaf ears. Bill C-31 contains no support measures for our small and medium-sized businesses, our industrial sectors or our communities. In recent weeks, the Parliamentary Budget Officer confirmed that Quebec is the province most affected by Donald Trump’s American tariffs. I understand the concerns of my colleagues from southern Ontario who are worried that the automotive sector will be decimated by U.S. policies. I understand why people in Hamilton are worried about Stelco. However, I am equally concerned about my own region. I worry that our processing industry will go into a tailspin. I fear that well-paid workers will lose their jobs. I am afraid that Quebec’s economy, an economy that is diversified, industrial, manufacturing-based and service-oriented, is not sufficiently dependent on any single industry to be deemed worth saving. That is essentially what we are experiencing. There is a desire to save one industry and ensure that everyone benefits from it. With all due respect to the government, Quebec is more complex than that. Helping Quebec means understanding it, loving it and appreciating it. That way, Quebec will be further ahead than Quebeckers could have ever dreamed. I have no doubt that I will soon be reminded that there are more than 40 MPs in this House who are here to defend Quebec’s interests. What about when it comes to the forestry sector? What about standing up to talk about aluminum? What about fighting for our tourism sector so that it has funding to replace its infrastructure? Not only does Bill C‑31 ignore Quebec, but it also further increases oil industry subsidies. It now considers hydrogen production from methane to be a form of clean hydrogen, unlike Quebec City, which maintains that green hydrogen must be produced using renewable energy sources. Several measures in Bill C‑31 open the door to more powers for the government and less transparency, such as restricting who can file a complaint with the procurement ombud and which complaints the ombud can review. It seems that every time I rise to speak during a debate, I repeatedly ask where we are headed. It is in fact a constant pattern with the federal government. It is clearly seeking to limit transparency, dismantle safeguards, remove checks and balances, and move full steam ahead toward a specific objective while disregarding basic democratic principles. I know that talking about the procurement ombud does not make for a stirring speech. It will not bring the House to its feet, but accountability does not have to be dramatic to be essential. What we are seeing take shape in the government is deeply troubling. There is a slide toward authoritarian control, where checks and balances gradually weaken until they can be silenced altogether. It is a very subtle way of going about it. The government will never openly say that it wants to silence them. No, instead, it creates Crown corporations with mandates that raise questions. It circumvents laws and plays with words. Taken in isolation, these actions may appear technical, but when viewed as a whole, it becomes clear where the government is leading us. Bill C‑31 adopts an excessively permissive approach to public health and pesticides. I am very concerned about these changes because they could weaken oversight of pesticides. In Europe, pesticide approvals are based on scientific study and the precautionary principle. Any risks to health or the environment must be taken seriously. The economy must serve people, not the other way around. We all know that, but the government seems to be dismissing these concerns in the name of efficiency and economic interests. The government also wants to give the minister more discretionary powers. However, when important decisions are not subject to debate and parliamentary oversight, that is no mere administrative adjustment; it is a big step in the wrong direction. I am extremely concerned. Think about pressure from lobbyists. Think about the agricultural workers who could be exposed to dangerous pesticides. Think about the impact on people and what we want to leave to future generations. They keep talking about efficiency, but the question remains: Who will benefit from these changes? Our requests concerning the economic update were clear. As dictated by our guiding principles, we had to take care of our people, as should we all. I will briefly review what we requested. We proposed introducing a wage subsidy program for sectors affected by the U.S. tariffs. We proposed relaunching EI reform with a clear timetable. We have been calling for that since 2015, and we were promised it. We proposed reimbursing Quebeckers for the electoral gift, which people seem to have forgotten about, that the Liberal Party of Canada handed to people elsewhere in the country during the last election campaign under the guise of a carbon tax rebate. We proposed supporting our media through three key measures involving expenditures of $387 million over five years and generating an additional $7.2 billion in revenue over the same period. We proposed locking in a 6% health transfer escalator, which could be easily done. We proposed increasing old age security benefits for seniors aged 65 to 74. We want no more discrimination. There were other proposals as well. In the end, however, the government chose not to consult us. That is politics. However, when the government ignores us, it also ignores the 1,236,349 Quebeckers who put their trust in us on April 28, 2025. We will be there and we will stand up for our values.

Ryan Turnbull, Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)

Liberal
“The member said this bill has nothing for small and medium businesses. That is not true. The bill gives tax breaks to businesses that buy buildings for manufacturing and processing, so they can use that money to grow. This will help businesses in Quebec and in her riding. Does she support this?”
Official Hansard

Madam Speaker, I have a great deal of respect for the member from serving on committee with her, but she said something in her speech that struck me as incorrect, which was that there is nothing in Bill C-31 for small to medium-sized businesses. That was the claim she made in the House here. I know for a fact that this is not true because, obviously, I am the parliamentary secretary, and I helped get the bill through committee. The bill would extend the productivity superdeduction, which is a tax measure that offers business owners and shareholders the opportunity to receive immediate expensing, which is basically being able to deduct real estate assets that are purchased for the purposes of processing and manufacturing. That would allow new businesses that are in operations today to take some of the money they are putting away for taxes at the end of the year to buy a new piece of real estate for the purposes of processing and manufacturing. Obviously, there would be significant impacts to manufacturing and processing in Quebec, in the member’s province and riding. I think she would be supportive of that measure. Is she supportive of that measure?

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“The government needs to target help to specific industries, like forestry in my riding. The forestry industry needs relief from duties so it has the cash it needs to survive.”
Official Hansard

Madam Speaker, I thank my colleague because in my speech I was truly talking about small and medium-sized enterprises, SMEs. I am a small business owner, myself. The measures need to be targeted and very specific to the economic sectors we want to save. When I was talking about Quebec, I was referring to Quebec’s economic diversification. If there are measures for Laurentides—Labelle, we should help the forestry industry. What about countervailing duties for the industry, to provide it with the liquidity it needs to survive?

Tim Watchorn, Les Pays-d'en-Haut

Liberal
“Witnesses at the defence committee praised using Crown corporations to buy military supplies. Why does the member think a Crown corporation is the best way to get our military the equipment and services it needs?”
Official Hansard

Madam Speaker, my colleague mentioned Crown corporations. At the Standing Committee on National Defence, every witness we met, whether military personnel or industry representatives, praised the Crown corporation model for military procurement. Major contracts have been awarded in the Mirabel riding, whether to L3Harris or other companies. I would like to hear the member’s perspective on why using a Crown corporation is the best way to provide our military with the equipment and services they need.

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“It is very hard to hold Crown corporations accountable. The procurement ombud says having more of them makes his job harder. I want to know how we can oversee them properly if the government keeps using them.”
Official Hansard

Madam Speaker, let us be honest. As a member of the opposition, my question is, how do we hold a Crown corporation accountable? When we speak with the procurement ombud, he tells us that the more Crown corporations there are, the harder it is for him to do his job. If my colleague tells me that he supports Crown corporations and that they are more effective in meeting economic needs, and if he tells me that the ombud will be able to gather and provide us with the information we need, then it is settled.

Jeremy Patzer, Swift Current—Grasslands—Kindersley

Conservative
“The government cannot manage its own work. They brought in a second huge budget bill only a month after the first one. Despite all these pages, it does nothing to help Quebec's forestry or aluminum industries, and it does not help the country. I want to hear what the member thinks about this.”
Official Hansard

Madam Speaker, the government is incompetent at managing its affairs. We are debating here today the second budget implementation act from last year. This means we already passed a first budget implementation act, and then a month later, the Liberals had to table a second budget implementation act, which is 352 pages long. This is another omnibus bill on top of the first one they passed, yet they still did nothing, as the member pointed out, for the forestry sector in Quebec, and they did nothing to actually help the aluminum industry in Quebec. They put forward all of this big, heavy legislation, yet they are not doing anything that is actually beneficial to this country. I wonder what the member has to say about that.

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“I am worried about this big budget bill. Experts tell us that putting so many things into one bill hurts our democracy. The public does not know what is in it, and we need to look at its effects much more carefully.”
Official Hansard

Madam Speaker, I have wondered many times whether this is wilful blindness or some form of hypnosis. In all seriousness, my job is to look at all of the potential impacts. However, every person we talk to, including the procurement ombud, tells us that the current omnibus bills, particularly Bill Budget 2025 Implementation Act, No. 2, but also Bill C-39, represent a serious departure from democratic principles. Yes, we need to continue to do our work because people are not aware of what is happening. I am wondering to what extent the government sees what is coming.

Sébastien Lemire, Abitibi—Témiscamingue

Bloc Québécois
“I want the government to remove the air passenger complaint rules from this bill and write a separate bill instead. The plan lets airlines pick and pay the people who judge passenger complaints. Those judges will not be independent, and passengers will suffer.”
Official Hansard

Madam Speaker, I cannot say I am too pleased to rise today to speak about air passengers’ rights, because this bill constitutes a step backward. There is a real problem, and that is the copious amount of complaints that are being filed. Air travel complaints are a problem because the regulations are not clear. Airlines have three types of responsibilities: situations within the airline’s control, situations within the airline’s control but required for safety, and situations outside the airline’s control. It is the situations that are within the airline’s control but not necessarily required for safety that are causing problems. For example, when an evening flight is cancelled due to unscheduled maintenance and rescheduled to the next morning, is that the airline’s fault or not? This is problematic, and seems to happen a lot in Rouyn-Noranda. Passengers might be wondering how a company that operates just one flight a day can fail to have another plane available. It is a fair question. Under the regulations, however, passengers are not entitled to a refund. In 99% of cases, a passenger will file a complaint. We have also seen other examples in the media. For instance, airlines have been known to cancel a flight in order to reassign a plane to another flight and then claim it was due to unscheduled maintenance. The problem is that unscheduled maintenance should be exceptional cases and only occur during checks carried out right before departure. We do have an arbitration system. However, consumers are telling us that they do not trust the fact that an independent arbitrator will deal with their complaint. We are talking about the reforms set out in Bill C‑31. The arbitrator would not be truly independent because they would be paid by the airlines. The government will likely say that it is going to pick arbitrators it thinks are appropriate, but the bill does not clarify this. Under clause 349 of the bill, the Minister of Transport may designate a person as a person authorized to resolve specified complaints and may impose as part of the designation any conditions that the Minister considers appropriate. Therefore, if there is indeed a desire to have competent people in this respect, there is nothing in this bill to indicate that. There is no guarantee that these people will be evaluated or how they will be evaluated. The minister would simply make a decision. We know that decisions can be biased. I met with Air Canada representatives about this issue last week. I also understand their point of view. For them, having a significant backlog of complaints is harmful to their reputation. Even though Air Canada is experiencing its own issues, they also believe it is important to deal with these cases quickly with their customers. The proposed arbitration system exists elsewhere, including in Europe. It is not a bad system. However, why did the minister not draw up a list of independent arbitrators whose qualifications could have been vetted through hearings before the Standing Committee on Transport, Infrastructure and Communities? That was a key part of the Bloc’s proposal. Why not simply remove division 17 of part 4 and have the matter reviewed by the Standing Committee on Transport, Infrastructure and Communities? The minister rejected that proposal outright. Why not allow consumers to select their arbitrator from this list? At the very least, they would feel they had some agency in the process and were part of an impartial procedure. Furthermore, to ensure their independence, arbitrators should be paid by the government rather than by the airlines themselves. At the end of each year, based on the number of complaints filed against each carrier, the government could invoice the airline for reimbursement. This would create a degree of distance between the arbitrator and the airline. This is precisely why we are proposing to remove all clauses relating to this division from the bill. It is not because arbitration is necessarily a bad idea, but because it is obviously poorly thought out. I urge the government to revisit this division and introduce a separate bill on the subject. With buy-in from consumer advocacy groups, Air Canada, other airlines and other authorities, such a bill would ensure that we have a robust complaints mechanism that would work for everyone, including carriers and passengers. This can happen if there is the political will to make it happen, and if that political will is brought to bear at the Standing Committee on Transport, Infrastructure and Communities. I would remind the House that, since April, we have been meeting in camera, bogged down in parliamentary procedure. As a new member of the committee, I am increasingly finding that its government members are completely lacking in good faith. To understand the problem I am talking about, I would point members to an excellent editorial by Stéphanie Grammond that appeared in La Presse on October 26. The title says it all: “Bowing Down to the Airline Companies”. The author discusses the complaints system overhaul. I will read a few excerpts from the article. I could read it all, because it describes the context, which is crucial. The article starts with a fairly attention-grabbing introduction:Stephen Harper, I cast thee out! For all his Liberal credentials, it is remarkable how closely [the current Prime Minister] resembles former Conservative prime minister Stephen Harper on certain issues. Obviously, I do not disagree with that assessment. Just look at the environment, labour unions or indigenous populations. Ms. Grammond goes on to say that travellers will be the ones paying the price. The federal government is getting ready to transform the air passenger complaints system, which is riddled with problems. Flights cancelled or delayed, reservations over-booked, luggage lost, and the list goes on, leaving travellers on the hook when the airline refuses to compensate them. They can file a complaint with the Canadian Transportation Agency (CTA) under the Air Passenger Protection Regulations (APPR), which came into force in Canada in 2019. Those regulations are fairly recent. They were introduced under the Liberals. However, because these regulations are “complex and ambiguous”, by Transport Canada’s own admission, they are triggering a flood of litigation. Unable to keep up with the volume of cases, the CTA is buried under a backlog of 97,000 complaints. We can all agree that there is a problem. As a result, customers have to wait two to three years before a decision is reached, which discourages people from asserting their rights. [Unfortunately] carriers are all too aware of that. They might be tempted to automatically reject compensation claims, especially since they do not have to pay any interest or penalties if the customer eventually wins their case before the CTA. We can all agree on the following. This flawed system needs to be reformed once and for all, but the solution Ottawa is proposing is not the way to go. The federal government wants to give airlines the right to choose and pay for their own private arbitrator to settle disputes with their customers. It feels like Ottawa is putting the fox in charge of the henhouse. Curiously, the federal government’s solution is modelled after a pilot project on private arbitration that Air Canada had announced back in April. Is this a case of insider trading? One has to wonder. It almost seems as if the airline industry whispered instructions into Ottawa’s ear. Too bad for the passengers! The Standing Senate Committee on Transport disagrees [with the government’s position]. It believes that carriers should not have the right to choose the private company that handles complaints filed against them. This would raise “concerns regarding independence, impartiality and conflicts of interest”, the committee stated in a report presented in early October. There are good reasons to be concerned, based on experience in the banking sector. In the 2010s, the banks had a bone to pick with the Ombudsman for Banking Services and Investments (OBSI). The Harper government allowed them to set up their own independent complaint-handling body. This controversial decision led to all sorts of problems. An investigation showed that the independent arbitrator was slower, less efficient, and less accessible to customers. Increasing the number of arbitrators made the system inconsistent. It scattered expertise and drove up costs. It also created confusion among consumers, who no longer knew who to turn to. That is what we may end up repeating if we do not remove the provisions under division 17 of part 4 of the bill. Ultimately, Ottawa reversed course in 2024 by once again centralizing complaints at the OBSI. ...Ottawa is on the wrong track with this proposal, which it deliberately buried in an omnibus bill, Bill C‑31. According to the Senate committee, which did not get the opportunity to hear from the Minister of Transport, this regrettable practice reduces parliamentary scrutiny and public debate. On that note, I want to stress that the Bloc Québécois, with my colleague from Pierre-Boucher—Les Patriotes—Verchères, has put forward solutions, but those solutions have been ignored, and that is one of the major problems. Ultimately, passengers will probably be the ones who pay the price. The Bloc Québécois believes it is important to stand up for passengers.

Ryan Turnbull, Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)

Liberal
“I support this legislation because it helps air passengers. It gives the minister the power to quickly fix a backlog of about 96,000 complaints by using outside resolution firms. It also makes airlines pay compensation to waiting passengers and raises fines for airlines that break the rules.”
Official Hansard

Madam Speaker, let me start by expressing my respect for the member. Having served on committee with him for a number of years, I can say that we have always had good debates in good faith, and today is another chance to do that. I disagree strongly with the member’s statements in the House. The government is moving forward with changes to the air passenger rights regulations for the benefit of air travel passengers and is looking to resolve the backlog of complaints, which is in the order of 96,000 or 97,000 unresolved complaints. The minister would be held accountable for that. Essentially, the minister is seeking the authority to be accountable for resolving those complaints in short order by using alternative dispute resolution firms. The minister would consult on designating those firms, put in place regulations to regulate those firms and hold air carriers and airlines accountable for paying compensation to air passengers who have not been compensated and have been waiting a long time. That is exactly what the legislation tries to do. It would also increase monetary penalties.

Sébastien Lemire, Abitibi—Témiscamingue

Bloc Québécois
“I want the government to remove the airline section from this budget bill and start over. It gives the minister and the private sector too much control over airline complaints instead of an independent agency. Passengers will be the ones who suffer, and my party is ready to help fix it.”
Official Hansard

Madam Speaker, I appreciate my colleague’s skill as a debater. I like the tone he is setting for our exchanges. He wants them to be constructive. We think that being constructive in this context means deleting division 17 of part 4 and going back to the drawing board. I would like to point out that there is an advantage involved. The minister is taking away powers from the Canadian Transportation Agency and granting them to himself, but he is then transferring them to the governor in council and, ultimately, straight to the private sector. In this context, that could create a bias. There is also the notion of confidentiality. The mandatory confidentiality requirements regarding air travel complaints are being removed. The maximum administrative penalty payable by corporations for certain violations of the Canada Transportation Act or its regulations is also being increased. Ultimately, if the balance of power is upset, it is the passenger or consumer who is likely to pay the price. It is true that the problem was examined and solutions were proposed, but they are not the right solutions. That is why the government needs to go back to the drawing board. We are offering to help.

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