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

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“The government's programs are not working. Twice as many Canadians use food banks now compared to five years ago. In my riding, people who used to donate to a food bank now have to use it themselves.”
Official Hansard

Madam Speaker, it is because these programs are not working. That is the problem. If they were working, we would know. The result of these programs is that there are now twice as many Canadians turning to food banks as there were five years ago. Just last week, I spoke in the House about the situation in Louis-Saint-Laurent—Akiawenhrahk and about Amélie et Frédérick, a food bank on Bastien Boulevard in the Neufchâtel area. Today, people are going to food banks for help, whereas five years ago, those same people were going there to donate. All of the wonderful programs that the Liberals have announced, and that they keep reminding us about with numbers like 1,883 people in this or that riding, are not working. If they were working, we would know.

Claude DeBellefeuille, Vallée-du-Haut-Saint-Laurent

Bloc Québécois
“Many seniors in my riding say it is unfair that people aged 65 to 74 get less support than those 75 and older. My bill would end this difference and give them the same help. I want to know if the member will support my bill and help seniors get their buying power back.”
Official Hansard

Madam Speaker, I always enjoy listening to my colleague from Louis-Saint-Laurent—Akiawenhrahk. I think that he is eloquent and experienced. At the end of his speech, he asked a good question: Does anyone feel they are better off? In my riding, 22% of the population is seniors 65 and over. Every time I go out in my riding, they talk to me about how unfair it is that seniors 65 to 74 are treated differently from those 75 and over. My bill, Bill C-261, will fix that injustice and stop the discrimination between the two groups of seniors. Can the member for Louis-Saint-Laurent—Akiawenhrahk tell me whether he will support Bill C‑261 and, more importantly, whether he thinks that seniors deserve to regain their purchasing power?

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“The government divided seniors into two groups based on their age. A government should unite Canadians, not treat some seniors as second-class.”
Official Hansard

Madam Speaker, one of the most disrespectful things that Mr. Trudeau’s government did was to divide seniors, and this has not been challenged by the current Prime Minister’s government. I have always believed that the first duty of any government, and particularly of its leader, is to unite Canadians. In this case, not only did the government fail to unite them, but it actually divided them. It drew a distinction between younger seniors and older seniors. I could never have imagined a government acting in such a clumsy, insulting and divisive way. The government members should visit private retirement residences and nursing homes and talk to the seniors who built the wealth that Canada enjoys today. They should tell them to their faces that some of them are first-class seniors and others are second-class seniors. No one is happy about that.

Carol Anstey, Long Range Mountains

Conservative
“I want my colleague to say more about our plan to cut gas and diesel taxes. Taxing diesel makes everything cost more, not just fuel at the pump.”
Official Hansard

Madam Speaker, I want to thank my colleague for his excellent speech. I always love to listen to him in this House. One of the things he talked about in his speech was our Conservative plan to cut all taxes on gas and diesel. I wonder if he would like to take the opportunity, particularly with respect to diesel, to expand on why that means more to Canadians, not just with respect to what they pay at the pump, but the overall cost of goods, and why that is so important to Canadians and the cost of living crisis we have right now.

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“The government should cut all taxes on gas and diesel. The Bank of Canada says high transportation costs will keep inflation at 3.5% for a full year.”
Official Hansard

Madam Speaker, I want to pay all of my respects to my colleague from Newfoundland and Labrador. She is one of the key players we have on this side of the House, I would say even in the House itself, since the last election. The point is, yes, it is important to cut all taxes on gas and diesel. The Governor of the Bank of Canada published a report a few days ago highlighting the fact that, unfortunately, there will be a rise in inflation by 3.5% for a full year. What is that based on? Principally, it is because of the cost of transportation. By the way, when we talk about transportation right now, we are talking about gas and diesel. That is why we urge the government to follow our recommendation and cancel those kinds of taxes.

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

Liberal
“The previous Conservative government raised the retirement age from 65 to 67, and we reversed that change. Also, a 75-year-old senior has different medical and life needs than a 65-year-old.”
Official Hansard

Mr. Speaker, I know my friend was not around when Stephen Harper increased the age of retirement from 65 to 67. However, we did reverse that change, which is important. I am sure he would agree that there is a difference between a senior who is 75 versus 65 with respect to medical and so many—

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“I remember when our government raised the retirement age from 65 to 67. Prime Minister Harper was just following advice from Bill Morneau, who later became Justin Trudeau's finance minister.”
Official Hansard

Mr. Speaker, yes, I remember pretty well the increase from age 65 to age 67. By the way, Prime Minister Harper at the time just followed the observations of Bill Morneau, who became, after that, the finance minister under Justin Trudeau—

Judy A. Sgro, Humber River—Black Creek

Liberal
“I want the House to pass this budget bill. It gives low-income Canadians more money for groceries and automatically files taxes for people who need help getting their benefits. It also signs eligible children up for education savings automatically.”
  • A repeated line

    “The government announced the new Canada groceries and essentials benefit to put more money back in Canadians' pockets.”

    Said 7 times by 7 members since May 26.

    Every time it was said
Official Hansard

Mr. Speaker, I do enjoy listening to my colleagues speaking in the House. It is my pleasure to take part in today’s debate on Bill C-31, the budget 2025 implementation act, no. 2. As we all know, budget 2026 is only a few days away. While we will all find out the details of the next federal budget in due course, I feel confident saying it would build upon our plan to create a stronger and more resilient Canadian economy, a plan that, in many ways, was first shaped via budget 2025. In budget 2025, our government laid out a clear plan to build a stronger Canada, and since then, we have been moving quickly to turn that plan into action. We are building the infrastructure, the homes and the industries that will grow our economy and create lasting prosperity. We are empowering Canadians with better careers and a more affordable life. We are protecting our communities, our borders and the way of life we value so deeply. Bill C-31 would build on this momentum by introducing measures to make life more affordable and to build a fairer, more integrated and more self-reliant economy, one that creates lasting value for Canadians and stays resilient to the global shocks we are experiencing now. Most importantly, it would ensure that government support reaches the people who need it most. I would like to take a moment to speak to several key measures in this important legislation that demonstrate our government’s commitment to fairness, economic resilience and opportunity for Canadians at every stage of their life. Our government knows that Canada is strongest when we look after one another and ensure that everyone has a fair chance to succeed, especially the people in Humber River—Black Creek. That is why we are taking action to make everyday life more affordable. In January, the government announced the new Canada groceries and essentials benefit to put more money back into Canadians’ pockets. The benefit is helping more than 12 million low- and modest-income Canadians afford everyday essentials. It replaces the existing GST credit while providing more generous support. First, we increased it by 25% for five years, starting in July 2026. Second, we added a one-time payment for this year, equivalent to a 50% increase in the current benefit. Together these enhancements will provide substantial support to the people most affected by rising food prices, especially in my riding. For example, a person living alone who is eligible for the GST credit could previously receive a maximum of $543 for 2026-27. With the June 2026 one-time payment and the 25% increase for 2026-27 combined, that person will receive approximately $950 in total. For a couple with two children, total support will increase from $1,086 to $1,890. These increases will make a meaningful difference for households facing higher food costs. The benefit is also indexed to inflation, ensuring that payments will rise each year with the cost of living. We are taking these steps because helping Canadians afford everyday essentials is the right thing to do. The Canadian groceries and essentials benefit is part of a broader package of measures to ease grocery cost pressures all across Canada. Canada’s first-ever national food security strategy will address food insecurity, support producers and strengthen supply chains to help lower prices for Canadians. The strategy also includes a $1-billion investment fund through Farm Credit Canada and a $150-million food security fund to help Canadian businesses grow, produce and process more food in Canada. A further $750 million will go to expand year-round Canadian fruit and vegetable production. These measures will address the root causes of food insecurity by strengthening domestic food production and improving access to affordable, nutritious food. However, the government is aware that millions of lower-income Canadians do not file their income taxes, either because they do not have the resources to do so or because their income is too low to owe taxes. My office hosts income tax clinics every year, and we have three weeks of people steadily coming in. If people are not filing their taxes, they miss out on the benefits often. It causes some Canadians to miss out on the Canada groceries and essentials benefit, the Canada child benefit and the Canada workers benefit. These are all benefits they are entitled to, but they must file their income tax return in the spring of the year in order to receive them. That is why Bill C-31 proposes to allow the CRA to file a tax return on behalf of certain eligible individuals with lower incomes and with simple tax situations who do not owe tax and do not file their own taxes. This measure would ensure that support reaches the people who need it most. When Canadians keep more of the money they earn, they can better support their family, invest in their community and build the future they want. Similarly, the government recognizes the importance of creating opportunities through education. Bill C-31 proposes to implement consequential changes to the tax rules that apply to registered education savings plans to support the implementation of automatic enrolment in the Canada learning bond. The Canada learning bond provides direct federal contributions to help children from low- and modest-income families build savings for post-secondary education. Too many eligible families miss out, not because they choose to but because of administrative and awareness barriers. Automatic enrolment was introduced because it removes those barriers. By automatically enrolling eligible children, we ensure that support reaches the people it is intended to help, early in life when it can make the greatest difference, when they are ready to go to post-secondary education. Finally, today’s legislation would improve access to justice by making it easier and less costly for taxpayers to resolve disputes through the Tax Court of Canada’s informal procedure, while providing tools to address unlicensed and misleading insolvency practices. In closing, Bill C-31 reflects our government’s focus on fairness, modernization and resilience. Together, these measures would advance a single vision for the Canadian economy, one rooted in confidence in Canadians and the belief that generational investments today will build lasting prosperity for tomorrow. Our plan is clear: build one strong Canadian economy, invest boldly in nation-building infrastructure, put more money back in Canadians’ pockets and protect our country’s sovereignty and future. The budget 2025 implementation act, no. 2, is more than legislation. It would deliver on our commitment to remove paperwork that prevents vulnerable Canadians from receiving the money they are owed. This is our moment to build Canada strong, and every measure in the bill would move us toward that goal. Canadians expect and deserve absolutely nothing less.

Burton Bailey, Red Deer

Conservative
“The government has run growing deficits for years. Canadians cannot trust another huge bill full of promises. I am asking the member to admit that this bill cannot fix a decade of failures that made life too expensive.”
Official Hansard

Mr. Speaker, after years of budget deficits that keep growing under the Liberal government, Bill C-31 is another 300-page bill full of Liberal promises that Canadians cannot trust. Does the member agree that another massive bill cannot wipe away a decade of Liberal failures on affordability?

Judy A. Sgro, Humber River—Black Creek

Liberal
“I am proud of the help our government has given to Canadians over the last 26 years. Our programs, like student loans and savings help for parents, let young people in my riding go to university and build successful lives.”
Official Hansard

Mr. Speaker, I have been part of the Liberal Government of Canada for 26 years now. I am very proud of the different programs we have done and the help we have given to many Canadians, especially my constituents in Humber River—Black Creek, who have reaped the benefit of many of these things. Many of the young people I see now at York University and U of T are able to go there because of support from the government in helping their parents be able to save money, and also with student loans and so on, so they can go on to be very successful adults in their future life.

Mario Beaulieu, La Pointe-de-l'Île

Bloc Québécois
“I do not support this bill because it leaves out key needs. The government must raise health transfers by 6% each year, which is $14 billion over five years. It also needs to pay 35% of health care costs again, instead of just 22%.”
Official Hansard

Mr. Speaker, we know that Bill C‑31 fails to address many of the most urgent needs identified by the Bloc Québécois. One really important measure would be to lock in a 6% health transfer escalator, which would amount to $14 billion over five years. We will see if that is in the next budget. At present, the government has set the escalator at 5%, but if the annual increase is not prescribed, it will drop back to 3%. That would be catastrophic for the health care systems in Quebec and the provinces. We know that, over the decades, the federal share of funding has fallen from 50% to 22%. We want it to be restored to 35%.

Judy A. Sgro, Humber River—Black Creek

Liberal
“The government will present the budget this Thursday at 4 p.m. It will include needed investments, so the member should wait to hear what is in it.”
Official Hansard

Mr. Speaker, we have a budget coming up at 4 o’clock this Thursday, and there will be a lot of very exciting and much-needed investments that will be outlined through the budget process, so I encourage my colleague to look forward to Thursday at 4 p.m. to hear what our Minister of Finance and our Prime Minister deliver in that budget.

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

Liberal
“Canada has the lowest debt compared to the size of its economy of any G7 country. This means we have the room to spend money to make our country and economy stronger. I want the member to share her thoughts on why this work is so important.”
Official Hansard

Mr. Speaker, I wonder if I could get my colleague’s reflections or thoughts in regard to the fact that Canada has the lowest net debt to GDP in the G7. We have great fiscal capacity, and by using that fiscal capacity, we are able to build a stronger and healthier Canada, a Canada that works for all. I am wondering if the member could provide her perspective on why it is so important that we continue to work diligently on building that stronger economy.

Judy A. Sgro, Humber River—Black Creek

Liberal
“Our strong finances let us invest in Canadian businesses. Organic food makes up only 25 percent of the market here, and I hope the coming budget invests in growing more organic food at home so we do not have to import it.”
Official Hansard

Mr. Speaker, my hon. colleague is never absent for finding the words that need to be said in the House. I think the fact that we have that fiscal capacity is the reason we are able to invest so much money into, as an example, Farm Credit Canada. I met with the Canadian organic group this morning, and we are helping all these different businesses to be able to expand and grow. Organics take up only 25% of the market, yet there is a need for them to grow. Investments that I hope are going to be in Thursday’s budget would invest more into increasing the growth of more organics right here in Canada so we do not have to reach outside our domestic portfolio to receive the good organic food we want.

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

Liberal
“The new budget is coming out this week. Why is it important that we keep going in the same direction we have taken since the last election?”
Official Hansard

Mr. Speaker, this week is very exciting because of the fact that there will be a budget coming out. Does the member have any reflections on why it is so important that we continue on in the same stream we have been taking since the last election, when we elected a new Prime Minister?

Judy A. Sgro, Humber River—Black Creek

Liberal
“Our government is investing in Canadians and helping businesses expand. Our leaders are working to make Canada strong.”
Official Hansard

Mr. Speaker, we are investing in Canadians. We are helping businesses throughout Canada to expand and to diversify, for Canada to truly come to a level of maturity with the leadership that is being shown now through our Prime Minister, our Minister of Finance and all members of the House who are working to make Canada strong and to build strong.

Jeff Kibble, Cowichan—Malahat—Langford

Conservative
“I want the government to take the defence agency section out of this bill. The government has already written another bill with a completely different plan for the agency. This plan gives ministers too much power to spend billions and pick suppliers without bids, with almost no reporting to Parliament. The military needs real contracts and equipment, not just press releases.”
Official Hansard

Mr. Speaker, let me begin with a word about fog. Storms can be dangerous at sea, but fog can be just as deadly, and sometimes even worse. In a fog, one cannot see the shore and other ships. Let us explore Bill C-31, a second act to implement certain provisions of the budget, specifically division 16. At more than 330 pages, a bill this size is its own fog bank. Lost inside it is division 16, which would create the Defence Investment Agency and would rewrite the Defence Production Act. I navigated warships for many years, so let me help guide us through this fog. I speak for the sailors of CFB Esquimalt and CFB Halifax, two ports that I am very familiar with. I speak for the veterans on Vancouver Island, for the workers who build and repair our ships, for the families of Cowichan—Malahat—Langford and for all Canadians whose tax dollars pay for the defence of Canada. I want every ship to get home safely, and I want Canada’s defence procurement to be efficient and effective and meet the operational requirements Canada now faces. I served this country, and the defence of Canada matters to me as much as it does to every Canadian. Procurement is how that defence gets built. A ship that gets home safely depends on a system that gets the right equipment. I do not believe this bill would make that happen. I am worried that a bill like this is much like a ship lost in the fog without a radar, so let me describe that fog. Division 16 would put the Defence Investment Agency into law. It is the government’s second design for the agency, and while this bill has not yet passed, there is already a third design before this House, Bill C-40. There are two bills, one agency and three versions. In fog, the danger is not only the rocks but other ships. When too many vessels are in the same water, none of them is sure where the others are. There are two bills in this fog and three different designs of the same agency, all in less than a year. The government will say it is building on what came before, but it is not. These designs do not build on each other. They collide with each other. Under Bill C-31, the agency would stand alone and answer to a minister, with the secretary of state somewhere in the chain. Under Bill C-40, it would become a Crown corporation with a new associate minister on top, and who they answer to is unclear. Bill C-31 would keep Treasury Board rules and report to Parliament, and under Bill C-40, it would be exempt from many of those rules. Under Bill C-31, the minister could take over a company’s board. Under Bill C-40, the language would change, adding power and stripping accountability. Bill C-40 is bearing down on Bill C-31, and Bill C-31 has barely been afloat. Already, division 16 is obsolete. Who is in command? Bill C-40 would create a new associate minister, and the agency would do as the minister directs. Above that sits two ministers in the Prime Minister’s Office, and who reports to whom is lost in the fog. There would be too much power in one person’s hand over too much money, with almost no accountability beyond a single annual report. A government that keeps redesigning its own agencies has lost its rudder and is chasing its own tail. By trade, I was a navigating officer, so let me use a phrase every sailor knows: “standing into danger”. That is exactly what is happening here. The greater threat is not this bill but Bill C-40, which would offer even less accountability, and here is why. When the government makes a major procurement, it normally comes from a competition. Companies bid, and the best offer that meets operational requirements should win. That protects the taxpayer and fairness, and it provides the best equipment for Canada. A sole-source contract is the exception. There are times when a sole-source contract is required. Operational needs call for it, and I do not argue otherwise, but the sole-source decision must be answerable to Parliament. This bill would provide little accountability back to Parliament, and Bill C-40 would provide almost none. Bill C-40 would give the minister 13 grounds for sole-sourcing and no duty to report on any individual contract, with only one annual report for billions of dollars. Our allies do not do it this way. In the United Kingdom, an independent regulator oversees the pricing of single-source contracts. In the United States, a sole-source contract must be justified in writing and made public. Bill C-40 would ask Canadians to accept less. Both bills would let the minister exclude a company from competing on national security grounds without explaining why. Under Bill C-40, the agency would have to do as the new associate minister directs. It is “must”, not “may”. Both would allow up to $1 billion from the consolidated revenue fund, with nothing in either bill noting how often, by whom or what conditions. Normally, Parliament approves how that money is spent. That approval is how the people of Canada keep their hand on the wheel. These powers are without precedent and without meaningful accountability over some of the most expensive projects in Canada’s history. Lost in the fog without accountability and oversight, this ship will soon run aground. For procurement, it means an announcement that never becomes a contract. To be fair, some contracts have been signed by the DIA. Some of them were already under way before the agency existed and the agency has claimed them, and a few are the agency’s own. However, too often, a victory lap comes at only an announcement. Let us take the Canadian patrol submarine project as an example. In July, to much fanfare, the Prime Minister announced a preferred supplier, but quickly stated that if that did not work out, there was another preferred supplier on standby. This is an announcement lost in the fog, not a signed contract, not a decision and not a delivery. Take GlobalEye. In May, the government announced a preferred supplier for up to six aircraft. Saab confirmed that no contract has been signed. There is not a contract and not a commitment to buy. The government itself has stated that this aircraft does not meet the air force’s operational requirements. This is an announcement standing where a signed contract should be. Even the F-35 program is lost in a fog, paused twice by the Liberals. Now, 18 months into a six-month review, two aircraft have been delivered while political posturing causes delays, putting the defence of Canada at risk. This is unacceptable. The Liberals can announce an agency. They can name a chief executive. They can create a board, but until ink touches paper, nothing has been bought. Our members in uniform do not need another redesign of the Defence Investment Agency. They need a decision, a contract and a delivery date. I do not stand here only to criticize. Let me offer a way forward. One, the Liberals should remove division 16 from this bill. It is being replaced within months, and no sailor worth his salt would sail this way. They should put effort into the new bill and get that one right. Two, they should keep sole-sourcing for genuine operational needs, with written reasons published, and when they are classified, they should show them to members who are cleared to see them. Three, they should report to Parliament on every ministerial direction, and account for what Canada receives for every $1-billion draw. Four, they should put conflict of interest rules in the bill. All who advise or decide on these purchases must disclose their interests and step aside to avoid conflict. Five, they should publish the decision process, with who decides the criteria and the scores each bid receives, and set real timelines. Last, they should put the defence of Canada first. Industry and jobs are important, but when it comes to the defence and sovereignty of Canada, operational requirements must take priority. A government patting itself on the back and waving around announcements with no contract signed does nothing for the defence of Canada, putting our sovereignty at risk. These are six steps and none is partisan. These are the standards we should expect, regardless of who holds government. When I navigated warships, we transitioned from paper charts to electronic ones. The tools changed completely, but the principles never did: keep the ship safe and defend it from the enemy. With Bill C-31’s division 16 soon to be overtaken by Bill C-40, it is not only the tools that are changing, but the principles of accountability. The safe passage through the fog is not this bill, and it is not Bill C-40, which would offer even less accountability. The defence and sovereignty of Canada are a pillar of this country and the first duty of any government. Today, that pillar is lost in the fog, rudderless, and the government has shown no way out. If the government cannot find its way out of the fog, we stand ready to do the work. Our sailors, soldiers and aviators defend the sovereignty of Canada every day, and they deserve a government that does the same.

Tim Watchorn, Les Pays-d'en-Haut

Liberal
“The Conservatives do not have a plan. Our plan is clear. We are investing in our industries, supporting our military, and building up this country. We are improving the port in Montreal and expanding the port in Vancouver. I want the member to tell us what he thinks of these two big port projects.”
Official Hansard

Mr. Speaker, the member opposite’s speech used the sailing analogy very well, I find, but the only fog that I see in the House is the Conservative plan, because there is no plan. Our plan is clear. We are going to build this country. We are going to invest in our industries, and we are going to make sure that our sailors and army people have what they need. The member across the way likes to talk about shipping. I would like his comments on two huge projects, one that is under way and one soon to be under way. Contrecoeur, along the port of Montreal, is being built as we speak so that shipping is even better, and on the western side of the country, the port of Vancouver is going to be expanded. What does he think of those investments?

Jeff Kibble, Cowichan—Malahat—Langford

Conservative

Linked statement

“The Liberals do not have a real plan for Canada's defence and sovereignty, only slogans. They have a majority government, and they are failing to protect this country.”
Official Hansard

Mr. Speaker, Montreal and Vancouver are not part of the Defence Investment Agency. I am not sure what the member is talking about. As far as the fog goes, the Liberals say they have a plan, but their plan is slogans. I have laid out very clearly that they are failing on the defence and sovereignty of Canada, and I also laid out some steps. I must remind the member opposite that the Liberals are in government. They have a majority. It is their job to do it, and they are presently failing.

Mario Beaulieu, La Pointe-de-l'Île

Bloc Québécois
“This bill gives the government more power and makes it less open. It limits who can complain about government purchasing and what can be investigated. What does my colleague think about this?”
Official Hansard

Mr. Speaker, Bill C‑31 contains several measures that open the door to more government power and less transparency, such as limiting who can file complaints with the procurement ombud and which complaints the ombud can review. What are my colleague’s thoughts on that?

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