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Minutes of Proceedings

44th Parliament, 1st Session
Meeting 53
Tuesday, May 31, 2022, 11:03 a.m. to 12:47 p.m.
Televised
Presiding
Peter Fonseca, Chair (Liberal)

• Ken McDonald for Julie Dzerowicz (Liberal)
• Greg McLean for Hon. Ed Fast (Conservative)
Library of Parliament
• Sylvain Fleury, Analyst
• Michaël Lambert-Racine, Analyst
 
House of Commons
• Tina Miller, Procedural Clerk
• Jacques Maziade, Legislative Clerk
• Émilie Thivierge, Legislative Clerk
Canada Border Services Agency
• Doug Band, Director General, Trade and Anti-dumping Programs Directorate
• Fred Gaspar, Vice-President, Commercial and Trade Branch
• Alexander Lawton, Executive Director, Trade Compliance Division
Canada Revenue Agency
• Robert Greene, Director General, Assessment, Benefit and Service Branch, Individual Returns Directorate
• Guy Lafrance, Director General, Collections Directorate, Collections and Verification Branch
Correctional Service of Canada
• Luc Bisson, Director General, Strategic Policy and Planning
• Chad Westmacott, Director General, Community Safety, Corrections and Criminal Justice Directorate, Crime Prevention Branch
Department of Citizenship and Immigration
• Julie Chassé, Director General, Financial Strategy
• Jonathan Joshi-Koop, Acting Director, Express Entry Policy
• Marcel Poirier, Director, Fees and Activity Based Costing Division
• Philip Somogyvari, Director General, Strategic Policy and Planning
Department of Employment and Social Development
• Annik Casey, Director General, Employment Insurance Benefits Processing, Benefits and Integrated Services Branch
• Steven Coté, Executive Director, Employment Insurance, Skills and Employment Branch
• Rouba Dabboussy, Director General, Benefits and Integrated Services Branch
• Saajida Deen, Director General, Employment Program Policy and Design, Skills and Employment Branch
• Deanne Field, Executive Director, Employment Insurance Benefits Processing, Benefits and Integrated Services Branch
• Cliff C. Groen, Senior Assistant Deputy Minister, Benefits and Integrated Services Branch, Service Canada
• Neal Leblanc, Acting Director, Canada Pension Plan Policy and legislation
• Matthew Lye, Senior Policy Analyst, Canada Pension Plan Disbility Directorate
• Anamika Mona Nandy, Acting Director General, Employment Insurance Policy, Skills and Employment Branch
• Lorraine Pelot, Director General, Canada Pension Plan Disability, Income Security and Social Development Branch
• Zia Proulx, Director General, Strategic Policy, Analysis and Workplace Information Directorate, Labour Program
• George Rae, Acting Executive Director, Employment Insurance Policy, Skills and Employment Branch
• Fariya Syed, Director, Employment Program Policy and Design, Skills and Employment Branch
• Kristen Underwood, Director General, Seniors and Pensions Policy Secretariat
• Kevin Wagdin, Director, Old Age Security Policy and Legislation
• Douglas Wolfe, Senior Director, Strategic Policy and Legislative Reform, Strategic Policy, Analysis and Workplace Information Directorate, Labour Program
Department of Finance
• Carlos Achadinha, Senior Director, Public Sector Bodies
• Brent Almond, Director, Indigenous Taxation Policy
• Shane Baddeley, Director, Economic Development
• Stefania Bartucci, Senior Project Leader, Financial Institutions Division, Financial Sector Policy Branch
• Maximilian Baylor, Senior Director, Saving and Investment Section, Business Income Tax Division, Tax Policy Branch
• Marie-Hélène Cantin, Senior Economist, International Trade Policy Division, International Trade and Finance
• Gervais Coulombe, Senior Director, Excise Taxation and Legislation, Sales Tax Division, Tax Policy Branch
• Galen Countryman, Director General, Federal-Provincial Relations and Social Policy Branch
• Darren D'Sa, Advisor, Tax Policy
• Manuel Dussault, Senior Director, Framework Policy, Financial Institutions Division, Financial Sector Policy Branch
• Jean-François Girard, Senior Director, Markets Policy, Financial Stability and Capital Market
• Jack Glick, Senior Advisor, Sales Tax Division
• Michelle Gouchie, Director, Federal-Provincial Taxation
• Lindsay Gwyer, Director General, Legislation, Tax Legislation Division, Tax Policy Branch
• Émilie Horrocks-Denis, Senior Policy Analyst, Intergovernmental Tax Policy, Evaluation and Research
• Robert Ives, Senior Advisor, Sales Tax Division, Tax Policy Branch
• Phil King, Director General, Sales Tax Division, Tax Policy Branch
• Blaine Langdon, Director, Charities, Personal Income Tax Division, Tax Policy Branch
• Tracy Laufer, Senior Advisor, Financial Institutions Division
• Pierre Leblanc, Director General, Personal Income Tax Division, Tax Policy Branch
• Mark Maxson, Director, Employment and Education, Personal Income Tax Division, Tax Policy Branch
• Trevor McGowan, Director General, Tax Legislation Division, Tax Policy Branch
• Pierre Mercille, Director General, Sales Tax Legislation, Sales Tax Division, Tax Policy Branch
• Nicolas Moreau, Director General, Funds Management Division, Financial Sector Policy Branch
• Amanda Riddell, Director, Real Property and Financial Institutions, Sales Tax Division, Tax Policy Branch
• Jenna Robbins, Senior Director, Strategic Planning and Policy, Business Income Tax Division, Tax Policy Branch
• Oliver Rogerson, Director, Resources, Environment and Special Projects, Business Income Tax Division, Tax Policy Branch
• Barbara Russell, Director, Financial Institutions Division
• Robert Sample, Director General, Financial Stability and Capital Markets Division, Financial Sector Policy Branch
• Gregory Smart, Expert Advisor, Sales Tax Division, Tax Policy Branch
• Lesley Taylor, Senior Director, Social Tax Policy
• David Turner, Senior Advisor, Sales Tax Division
• Roch Vézina, Senior Tax Policy Analyst, Indigenous Taxation Policy
• Ling Wang, Senior Director, Financial Programs and Strategy, Financial Services Division, Financial Sector Policy Branch
• Scott Winter, Senior Director, Trade Rules, International Trade Policy Division, International Trade and Finance Branch
• Kathleen Wrye, Director, Pensions Policy
• James Wu, Senior Director, Debt Management, Funds Management Division, Financial Sector Policy Branch
Department of Foreign Affairs, Trade and Development
• Matina Karvellas, Deputy Executive Director and General Counsel, Legal Services
• Lynn McDonald, Director General, International Economic Policy
Department of Indigenous Services
• Curtis Bergeron, Acting Director, Regional Operations, Indigenous Services
• Rebecca Blake, Manager, Regional Operations
• Douglas Fairbairn, Senior Counsel, Crown-Indigenous Relations and Northern Affairs
Department of Industry
• Patrick Blanar, Director, Copywright and Trademark Policy Directorate
• Erin Campbell, Director, Marketplace Framework Policy Branch, Patent Policy Directorate
• Ian Disend, Expert Advisor, Policy, Research and Analysis
• Shazmin Kanji, Senior Director, International Affairs
• Jennifer Miller, Director General, Marketplace Framework Policy Branch
• Martin Simard, Senior Director, Corporate, Insolvency and Competition Policy, Marketplace Framework Policy Branch
• Jason Wood, Executive Director, Space Exploration Policy
Department of Justice
• Erin Cassidy, Counsel, Criminal Law Policy Section
• Anna Dekker, Acting Director and General Counsel, Judicial Affairs Section
• Nathalie Hébert, Manager and Senior Counsel, Criminal Law Policy Section
• Melissa Moor, Counsel, Judicial Affairs Section, Public Law and Legislative Services Sector
• Lee-Yong Tan, Legal Counsel, Legal Services
Office of the Superintendent of Financial Institutions
• Stéphane Fournier, Senior Manager, Legislative Policy, Interpretations and Compliance Unit, Regulatory Affairs Division
• Joanne Lucas, Manager, Legislative Policy, Interpretations and Compliance, Regulatory Affairs Division
Privy Council Office
• Timothea Gibb, Director of Operations, Legislation and House Planning
Treasury Board Secretariat
• Lucas Cherkewski, Policy Analyst
• Leanne Labelle, Head of Plaftorm Growth
• John Millons, Director of Policy
Pursuant to the order of reference of Tuesday, May 10, 2022, the committee resumed consideration of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022, and other measures.

The committee resumed its clause-by-clause study of the Bill.

By unanimous consent, Clause 131 previously carried was reconsidered.

By unanimous consent, Dan Albas moved, — That Bill C-19, in Clause 131, be amended by replacing lines 18 and 19 on page 106 with the following:

“(2) Subsection (1) comes into force on January 1, 2023.”

After debate, the question was put on the amendment of Dan Albas and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Clause 131, as amended, carried.

By unanimous consent, Clause 132 previously carried was reconsidered.

By unanimous consent, Gabriel Ste-Marie moved, — That Bill C-19, in Clause 132, be amended by replacing line 21 on page 106 with the following:

“placed by the following:

(a) produced in Canada from honey or apples and composed wholly of agricultural or plant product grown in Canada;”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was agreed to on the following recorded division:

YEAS: Dan Albas, Daniel Blaikie, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 6;

NAYS: Yvan Baker, Terry Beech, Sophie Chatel, Heath MacDonald, Ken McDonald — 5.

Dan Albas moved, — That Bill C-19, in Clause 132, be amended by replacing lines 22 and 23 on page 106 with the following:

“(2) Subsection (1) comes into force on January 1, 2023.”

After debate, the question was put on the amendment of Dan Albas and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Clause 132, as amended, carried on division.

The committee resumed clause-by-clause consideration on Clause 133 of the Bill.

The committee resumed consideration of the amendment of Dan Albas, — That Bill C-19, in Clause 133, be amended by replacing lines 1 and 2 on page 107 with the following:

“(2) Subsection (1) comes into force on January 1, 2023.”

By unanimous consent, the amendment was withdrawn.

Clause 133 carried on division.

Clause 134 carried on division.

On Clause 135,

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by replacing line 23 on page 112 with the following:

“(b) a prescribed aircraft model,”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by adding after line 28 on page 112 the following:

“(d.1) an aircraft that is intended for export,”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by replacing line 37 on page 112 with the following:

“(g) a prescribed aircraft model. (aéronef assujetti)”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by replacing line 12 on page 120 with the following:

“(b) in the case of a subject aircraft, the prescribed price threshold;

(b.1) in the case of a subject aircraft that is a prescribed aircraft model, the prescribed price threshold; and”

Debate arose thereon.

The Chair ruled the proposed amendment inadmissible because it went beyond the terms of the Ways and Means motion on which the Bill is based, as provided on page 772 of House of Commons Procedure and Practice, Third Edition.

Adam Chambers moved, — That Bill C-19, in Clause 135, be amended by adding after line 13 on page 120 the following:

“(2) On January 1st of the year next following the day on which subsection (1) comes into force and every five years after that, the price threshold set out in that subsection is to be adjusted, and rounded to the nearest $5,000, to reflect changes in the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act.”

Debate arose thereon.

At 11:51 a.m., the sitting was suspended.

At 11:56 a.m., the sitting resumed.

The committee resumed consideration of the amendment of Adam Chambers, — That Bill C-19, in Clause 135, be amended by adding after line 13 on page 120 the following:

“(2) On January 1st of the year next following the day on which subsection (1) comes into force and every five years after that, the price threshold set out in that subsection is to be adjusted, and rounded to the nearest $5,000, to reflect changes in the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act.”

The Chair ruled the proposed amendment inadmissible because it went beyond the terms of the Ways and Means motion on which the Bill is based, as provided on page 772 of House of Commons Procedure and Practice, Third Edition.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by adding after line 8 on page 121 the following:

“(xi.1) an aircraft rental service in the course of a rental business, or”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by replacing line 6 on page 122 with the following:

“following formula is greater than or equal to 0.75:”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Adam Chambers moved, — That Bill C-19, in Clause 135, be amended by adding after line 17 on page 151 the following:

“(2) In the case where other property is accepted in full or partial consideration for the supply of a subject item, the value of A and C in subsection (1) is reduced by the amount credited to the purchaser in respect of the trade-in or, if the vendor and the purchaser are not dealing with each other at arm’s length at the time the supply is made, the fair market value of the trade-in.”

After debate, the question was put on the amendment of Adam Chambers and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 135, be amended by replacing line 27 on page 214 with the following:

“(b) if the vendor has been negligent and ought to have known that”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Daniel Blaikie moved, — That Bill C-19, in Clause 135, be amended by adding after line 2 on page 257 the following:

“(2.1) Despite subsection (2), the provisions of the Select Luxury Items Tax Act, as enacted by subsection (1), that set out the tax on subject aircraft come into force on a day or days to be fixed by order of the Governor in Council.”

Debate arose thereon.

The Chair ruled the proposed amendment inadmissible because it went beyond the terms of the Ways and Means motion on which the Bill is based, as provided on page 772 of House of Commons Procedure and Practice, Third Edition.

Whereupon, Daniel Blaikie appealed the decision of the Chair.

The question: "Shall the decision of the Chair be sustained?" was put and the decision was overturned on the following recorded division:

YEAS: — 0;

NAYS: Dan Albas, Daniel Blaikie, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 6.

The committee resumed consideration of the amendment of Daniel Blaikie, — That Bill C-19, in Clause 135, be amended by adding after line 2 on page 257 the following:

“(2.1) Despite subsection (2), the provisions of the Select Luxury Items Tax Act, as enacted by subsection (1), that set out the tax on subject aircraft come into force on a day or days to be fixed by order of the Governor in Council.”

After debate, the question was put on the amendment of Daniel Blaikie and it was agreed to on the following recorded division:

YEAS: Dan Albas, Yvan Baker, Terry Beech, Daniel Blaikie, Adam Chambers, Sophie Chatel, Heath MacDonald, Ken McDonald, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 11;

NAYS: — 0.

Dan Albas moved, — That Bill C-19, in Clause 135, be amended by replacing lines 15 to 23 on page 257 with the following:

“subject item is entered into before the coming into force of this Act, sections 18 and 29 of that Act, as enacted by subsection (1), do not apply in respect of the sale if the sale is completed, within the meaning of that section 7, on or after the coming into force of this Act;”

After debate, the question was put on the amendment of Dan Albas and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

Clause 135, as amended, carried on the following recorded division:

YEAS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6;

NAYS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5.

By unanimous consent, Clauses 136 to 140 inclusive carried on division severally.

On new Clause 140.1,

Adam Chambers moved, — That Bill C-19 be amended by adding after line 6 on page 260 the following new clause:

“140.1 Paragraph 154(2)(a) of the Act is replaced by the following:

(a) any tax, duty or fee imposed under an Act of Parliament that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the production, importation, consumption or use of the property or service, other than tax under this Part that is payable by the recipient and tax that is payable under the Select Luxury Items Tax Act by the vendor or purchaser;”

After debate, the question was put on the amendment of Adam Chambers and it was negatived on the following recorded division:

YEAS: Dan Albas, Adam Chambers, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 5;

NAYS: Yvan Baker, Terry Beech, Daniel Blaikie, Sophie Chatel, Heath MacDonald, Ken McDonald — 6.

By unanimous consent, Clauses 141 to 173 inclusive carried on division severally.

By unanimous consent, Clauses 174 to 179 inclusive carried on division severally.

On Clause 180,

Daniel Blaikie moved, — That Bill C-19, in Clause 180, be amended by adding after line 13 on page 284 the following:

“(3) If the Minister of Finance makes a payment to a province under subsection (1), the Minister must, within three months after the day on which the payment is made, prepare a report indicating the amount of the payment and describing any terms or conditions established under subsection (2) in relation to the payment and must cause the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the report is completed.”

After debate, the question was put on the amendment of Daniel Blaikie and it was agreed to on the following recorded division:

YEAS: Dan Albas, Yvan Baker, Terry Beech, Daniel Blaikie, Adam Chambers, Sophie Chatel, Heath MacDonald, Ken McDonald, Greg McLean, Jake Stewart — 10;

NAYS: Gabriel Ste-Marie — 1.

Clause 180, as amended, carried on division.

By unanimous consent, Clauses 181 to 236 inclusive carried on division severally.

On Clause 237,

Dan Albas moved, — That Bill C-19, in Clause 237, be amended by replacing lines 3 and 4 on page 311 with the following:

“237 (1) Section 235 comes into force on January 1, 2023.”

After debate, the question was put on the amendment of Dan Albas and it was agreed to.

Clause 237, as amended, carried on division.

By unanimous consent, Clauses 238 to 298 inclusive carried on division severally.

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 299, be amended by replacing, in the French version, line 23 on page 342 with the following:

“autoriser par écrit la détention en cellule dépourvue d'installation sanitaire dans  l’at-”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was agreed to on the following recorded division:

YEAS: Dan Albas, Yvan Baker, Terry Beech, Daniel Blaikie, Adam Chambers, Sophie Chatel, Heath MacDonald, Ken McDonald, Greg McLean, Gabriel Ste-Marie, Jake Stewart — 11;

NAYS: — 0.

Clause 299, as amended, carried on division.

Clause 300 carried on division.

On Clause 301,

Gabriel Ste-Marie moved, — That Bill C-19, in Clause 301, be amended by replacing, in the French version, line 29 on page 343 with the following:

“ser par écrit la détention en cellule dépourvue d’installation sanitaire dans l’attente de”

After debate, the question was put on the amendment of Gabriel Ste-Marie and it was agreed to.

Clause 301, as amended, carried on division.

By unanimous consent, Clauses 302 to 376 inclusive carried on division severally.

On motion of Terry Beech, it was agreed, — That the committee do now adjourn.

At 12:47 p.m., the committee adjourned to the call of the Chair.



Alexandre Roger
Clerk of the committee