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)

31 statements

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

Liberal
“Conservatives always make personal attacks against people in government. We will stay focused on helping Canadians and making Canada strong instead.”
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Official Hansard

Mr. Speaker, this is one of the things that really have not changed since the last election. In fact, this has been there for a long time. Even when I was in opposition, the Conservative twist always seems to be to attack the personalities through personal character assassinations. We often hear that today and have heard it in the past. It is a consistent issue for the Conservative Party. I say to my friends opposite that, as much as they like to attack the character of individuals such as the people who sit on the government benches, our benches will continue to focus on Canadians and on building Canada strong.

Bruce Fanjoy, Carleton

Liberal
“I want the member to tell the House what job opportunities exist for young people in the trades.”
Official Hansard

Mr. Speaker, building Canada strong for all creates an extraordinary opportunity in the trades. Can the hon. member please inform the House of the opportunities that exist for young people in the trades?

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

Liberal
“We support skilled trades across the country. We give about $5,000 to people who finish their training. This will help train up to 100,000 new workers to build Canada.”
Official Hansard

Mr. Speaker, I really welcome that question. Unfortunately, because of time constraints, I was not able to bring that into my comments. We have a fabulous program for the Red Seals. The Red Seal program is literally dozens of skilled trades that are recognized across our nation, and we have made a commitment to support Red Seal certificates. It is about $5,000 for people who actually complete the program. We are talking about anywhere from 80,000 to 100,000 new Red Seal skilled workers. That is tangible. It is real. That is what is going to help build Canada well into the future. It is investing in young people. It is investing in the skills of the future that we need in order to continue that building.

Terry Beech, Burnaby North—Seymour

Liberal

Linked statement

“Our programs for dental care, child care, and school food help people in my riding. We have more than doubled military spending. Oil production and profits are also at record highs. I want to hear the member's ideas on any of these three topics.”
Official Hansard

Mr. Speaker, as we all know, our friend does not get enough time to talk in the chamber, so I have arranged for a literal “choose your own adventure” question, remarking both on his speech and also on his previous answers. On affordability, I know for a fact how much dental care, child care and the national school food program have helped constituents in my riding of Burnaby North—Seymour. On defence, the member talked about how we went from less than 1% in the Harper days to more than 2%, but he did not talk about how the economy has grown, so it sounds like we doubled the spending, but we more than doubled it. With regard to the Conservatives’ saying that we are antidevelopment, we are actually at a stage where there is record bitumen production in Alberta, record royalties and record corporate profit. On any of those three areas that the member would like to talk about, I would like to hear his ideas.

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

Liberal
“I support our national health care system. The federal government must work with the provinces to protect and grow it. Canadians should be able to get the same good health care no matter where they live.”
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Official Hansard

Mr. Speaker, my colleague and friend has actually articulated exceptionally well, within a very short time allocation, some very important issues. If there is something I would like to just re-amplify, something I am very passionate about, it is Canada’s national health program. I believe it is a part of our identity. It helps identify who we are as Canadians. I am very proud of the fact that this is an area in which we continue to work and to look at ways we could potentially not only preserve but grow. I want to be a part of a government that sees the value of a national health care system. At the end of the day, it is about working with provinces, trying to get a higher sense of co-operation so we have a universal health care system based on the five fundamental principles of health care, enacted here in Ottawa. So that it does not matter where people choose to live in Canada, and I believe in the mobility of Canadians to go wherever they like in Canada, it is important that we have a health care system that is similar in all regions.

Garnett Genuis, Sherwood Park—Fort Saskatchewan

Conservative
“Young people cannot find jobs, and homes cost too much. This makes it hard for them to start families. The government is also cutting funding for students in job training programs. I want the government to bring that money back.”
Official Hansard

Mr. Speaker, as we talk about the situation of the economy, one thing I often hear from young people is about how difficult it is right now for young people to start out in life. Youth unemployment is extremely high, at 14.3%, and we have very low workforce participation as well. Homes are extremely expensive. All these challenges make it more difficult for young people to start out, to start a family and to start to have children. We see this showing up in the numbers. People are having far fewer kids than they tell pollsters they want to have, because of these pressures. Meanwhile, the Liberal government is cutting funding for students attending vocational programs. Will the government reverse its removal of grants to students studying in vocational programs?

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

Liberal
“Youth unemployment is the same today as it was in 2012, at about 14.3%. We will not cut summer jobs programs for young people, because these jobs give them skills and help them find better work.”
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Official Hansard

Mr. Speaker, the youth unemployment rate is at around 14.3% today. In 2012, when I was in opposition, it was at 14.3%. Therefore, it is roughly the same, if not the same. What I will tell the member is that we are not going to cut summer youth jobs programs, because that is one of the ways young people are gaining expertise, contacts and so much more, so they will in fact have better opportunities for employment.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“I do not support rushing this budget bill through Parliament. It is too big and tries to change too many laws at once, including defence, taxes, and air travel. These big changes need to be studied on their own. The bill also does not do enough to fix our weak economy, train workers, or lower the cost of living.”
Official Hansard

Mr. Speaker, I will be splitting my time with the hon. member for Sherwood Park—Fort Saskatchewan. The Prime Minister has spent much of the last year arguing that Canada faces a more dangerous, more competitive and less forgiving world. He is absolutely right. Trade relationships are more fragile, supply chains have become matters of national security, and energy, minerals, data, defence production and industrial capacity are no longer simply economic assets but have become instruments of sovereignty. Few serious observers would deny that Canada faces a more demanding world than the one we recognized a decade ago. The question before Parliament, however, is whether Bill C-31 reflects the seriousness of that diagnosis. A serious country must be able to build. It must be able to defend itself, educate and train its people, approve projects, mobilize capital, protect consumers and make decisions that endure beyond a single news cycle. The Prime Minister has framed this moment as one that requires ambition, discipline and state capacity. I agree with that premise. What I question is whether Bill C-31 would advance it. If the challenge is state capacity, the answer cannot simply be layers of state complexity. If the goal is economic sovereignty, the answer cannot be legislation that gestures in many directions while avoiding difficult choices. Bill C-31 is more than 330 pages long. It would amend tax law, financial law, labour law, transportation law and defence procurement law. It would touch housing finance, automatic benefit delivery, crypto asset reporting, the clean hydrogen tax credit, non-compete clauses, air passenger complaints and a defence investment agency, to name just some of the topics. Some of the measures may be worthwhile. Some deserve support. Others deserve amendment. The problem is that Parliament is being asked to evaluate them all at once. The government will argue that time is short, and it is going to pressure us to pass the bill before the summer recess. A lack of planning on its part should not be and should not necessitate an emergency for all of us. Major reforms to defence procurement deserve their own legislation and committee study, as so many of my colleagues have explained today. Lord knows, air passenger rights deserve their own scrutiny. Significant tax reforms need to be thought through. Instead, they are being bundled together in an omnibus bill that makes serious examination more difficult. We have already seen how sloppy Liberal drafting has unintended consequences through a number of other bills that have come before the House and that, we have learned, have significantly impinged upon Canadian freedom. Parliamentary scrutiny is one of the institutions that makes good government possible. A government confident in its reforms should welcome rigorous examination rather than continuously dilute it. The most revealing aspect of Bill C-31 may be what it does not contain. On April 27, the Prime Minister announced the Canada Strong fund, describing it as Canada’s first national sovereign wealth fund. It was presented as a cornerstone of economic sovereignty and nation building. Canadians were told it would help mobilize capital for strategic projects that are so desperately needed and give future generations a stake in national prosperity. A sovereign wealth fund can be a powerful instrument of public policy. It can also become an expensive political investment vehicle if its governance is weak. The difference lies in the design, and the devil, as they say, is in the details. There is no statutory framework in Bill C-31 for the Canada Strong fund, no explanation of how it will operate or how Parliament will oversee it. More than a month after its announcement, all we have is a short government backgrounder promising yet another office with yet another CEO and consultations to determine, over the next several months, what the fund will eventually become. That omission matters because it reveals a broader disconnect between the government’s rhetoric and announcements and its implementation. The same pattern applies to its skills training. The government has repeatedly argued that Canada’s future prosperity depends on building the most skilled workforce in the world, and it does. It has spoken about the training that workers need to build homes, develop critical minerals, expand advanced manufacturing and strengthen defence production. The diagnosis is correct, yet the legislative response is remarkably thin. Bill C-31 contains measures related to labour mobility and employment. Those may be useful, but they do not amount to a national skills strategy. They do not explain how Canada will train workers at the scale required, accelerate credential recognition, strengthen apprenticeship and completion rates or address the labour shortages already delaying major projects across the country. The government’s language is national. It is big, and it is ambitious. The legislative response is partial. This pattern extends to the economy more broadly. Bill C-31 contains investment incentives, tax changes and reporting requirements. Some may improve the functioning of the tax system, but none constitutes a serious productivity agenda, and productivity is the quiet crisis beneath the politics of affordability. We learned this morning that Canada has quietly slipped into a recession, with two consecutive quarters of shrinkage. If Canada produces less per worker than its competitors, wages stagnate. When wages stagnate, affordability deteriorates. Governments can soften the consequences through transfers, credits and subsidies. They can send all the cheques they want, but they cannot permanently compensate for weak productivity, and the spending has consequences at the grocery store and everywhere else in our economy as things continue to get more expensive. That is because prosperity must be created before it can be distributed. The same concern arises with the Defence Investment Agency. Canada unquestionably needs procurement reform. Our armed forces require equipment, readiness and capability. In a more dangerous world, faster procurement is not just a bureaucratic preference but a strategic necessity, yet speed is not competence. National security is not an area for weak accountability. The Defence Investment Agency may prove useful. It may not. Parliament has not yet been given sufficient evidence to determine which outcome is more likely. What is clear is that such significant reform deserves its own legislation and its own committee study. It should be examined by the defence committee with witnesses who understand defence procurement, military readiness, industry and national security. It should not be one division in a big budget bill competing for attention with tax rules, air passenger complaints and labour measures. The central question here is not whether Canada should move faster. The question is whether this structure will make us faster or merely more complicated. A ship that cannot sail does not defend sovereignty. An aircraft that cannot fly does not secure the Arctic. A procurement system that produces announcements faster than equipment does not serve the Canadian Armed Forces. State capacity is not measured by the number of institutions government creates. It is measured by the ability of its institutions to deliver. The air passenger rights provisions raise a similar concern. The current system is clearly failing Canadians. Complaint backlogs are unacceptable. Delays are excessive. Compensation is often very difficult to obtain. However, consumer protection is not achieved by announcing rights. It is achieved when ordinary people can enforce those rights without needing a lawyer, a media campaign, an MP or two years of patience. That observation applies far beyond air travel. Capability is not centralization for its own sake. It is not ministerial discretion without accountability. It is not omnibus legislation without scrutiny, and it is not the appearance of motion while standing still. The Prime Minister often speaks about resilience, sovereignty and national purpose. At a time when Canadians are carrying the burdens of housing scarcity, weak productivity, affordability pressures and global uncertainty, we should insist on something better. We should insist on competence, accountability and results.

Dan Albas, Okanagan Lake West—South Kelowna

Conservative
“Air passengers have to wait three years for the government to hear their complaints because there is a backlog of around 100,000 cases. The government gave the agency $75 million to speed things up, but it has failed. I am asking the member if she thinks this is a good use of tax money.”
Official Hansard

Mr. Speaker, I want to thank the member for Nanaimo—Ladysmith for standing up in this House on the very important topic of air passenger protection regulations and the government’s absolute mess of it. The member mentioned that we are in a recession and the economy is contracting. What is not contracting? It is the backlog of the CTA. It has around 97,000, perhaps even 100,000 cases in backlog. That means people are waiting three years to have someone hear their case. Instead of the government fixing the system and simplifying the rules, it provided $75 million over three years to make the CTA process faster, and by this particular provision in the bill that she mentions, it shows that it has been a complete disaster. Could the member please let us know if she thinks that this is the best use of her constituents’ money in this bill and by the government?

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“Government tribunals should make life simpler, but they are too slow and complicated. People end up needing lawyers. The government needs to clear these backlogs and solve problems faster.”
Official Hansard

Mr. Speaker, a central problem with tribunal systems, and I have had experience with them, is they are intended to make life simpler for Canadians. They are intended to be a process that is outside the court. However, as anyone who has dealt with any of these tribunals knows, people inevitably need a lawyer and inevitably need to navigate all kinds of complicated case law. If the government is serious about making life simpler for Canadians, it will clear these backlogs and provide redress in a faster, more efficient way, because the longer these cases sit in tribunal systems, the more paper they accumulate and the more complicated they get.

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

Liberal
“Our program helps up to 100,000 Canadians get certified in skilled trades. I want to know if the member supports it.”
Official Hansard

Mr. Speaker, the member referred to the labour issue and skills. The Red Seal program is going to see up to 100,000 young Canadians and others who will be able to get that Red Seal certificate through a program of this nature where we are helping. Does the member support the program?

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