44th Parl. 1st Sess.
May 7, 2024 10:00AM
Mr. Speaker, it is a great privilege to lend my voice today in support of Bill C-69, the budget implementation act, 2024. This budget is about what kind of country we want to live in and what kind of country we want to build together.
For generations, Canada has been a place where everyone could secure a better future for themselves and their children, and where a growing economy created opportunities for everyone to succeed. However, to ensure every Canadian succeeds in the 21st century, we know that we must grow our economy to make it more innovative, productive and sustainable. We must build an economy where every Canadian can reach their full potential, where every entrepreneur has the tools needed to grow their business and where hard work pays off.
Building the economy of the future is about creating jobs in the knowledge economy, in manufacturing, in mining and forestry, in the trades, in clean energy and across the economy in all regions of the country. To do this, our government's economic plan is investing in the technologies, incentives and supports critical to increasing productivity, fostering innovation and attracting more private investment to Canada. This is how we will build an economy that unlocks new pathways for every generation to earn their fair share. Bill C-69 is a crucial step in opening up these new pathways.
Bill C-69 takes us forward on the understanding that, in the 21st century, a competitive economy is a clean economy. There is no greater proof than the 2.4 trillion dollars' worth of investment made around the world last year alone in the transition to net-zero economies. Experts say we are at a global inflection point, with clean energy investments surpassing investments in conventional energy, with the cost of renewable technology dropping significantly, including wind, solar and heat pumps, as technology advancements are made and deployed at scale, and with companies that outperform their peers in decarbonizing more competitive and yielding higher returns for stakeholders.
As the big anchor investment decisions around the globe are being made to secure the global supply chains for the emerging clean economy, we need to ensure Canada is best positioned to compete and lead the way by seizing the massive opportunities to attract investment and generate economic growth that will bring decades of prosperity. That is why our government is putting Canada at the forefront of the global race to attract investment and seize the opportunities of the clean economy with a net-zero economic plan that will invest over $160 billion to maintain and extend our lead in this global race.
The cornerstone of our plan is an unprecedented suite of major economic investment tax credits, which will help attract investment through $93 billion in incentives by the year 2034-35. That includes carbon capture, utilization and storage, the clean technology investment tax credit, the clean hydrogen investment tax credit, the clean technology manufacturing investment tax credit, clean electricity and, added in budget 2024, an EV supply chain investment tax credit. These investment tax credits will provide businesses and other investors with the certainty they need to invest and build here in Canada. They are already attracting major job-creating projects, ensuring we remain globally competitive.
For example, just a couple of weeks ago, I attended the announcement in Alliston, Ontario, where Honda made the largest investment in Canadian automotive history, investing over $15 billion. This is a huge vote of confidence in our economy. Out of all the countries in the world, Honda chose Canada to build its comprehensive, end-to-end EV supply chain, which will mean thousands of good-paying jobs for decades to come. The federal investment tax credits were essential in remaining competitive and securing that generational investment. From new clean electricity projects that will provide clean and affordable energy to Canadian homes and businesses to carbon capture projects that will decarbonize heavy industry, our major economic investment tax credits are moving Canada forward on its track to achieve a net-zero economy by 2050.
In November 2023, our government introduced Bill C-59 to deliver the first two investment tax credits and provide businesses with the certainty they need to make investment decisions in Canada today. That bill also included labour requirements to ensure workers are paid prevailing union wages and apprentices have opportunities to gain experience and succeed in the workforce.
With Bill C-69, the budget implementation act, 2024, we would be making two more of these major economic investment tax credits a reality to attract more private investment, create more well-paying jobs and grow the economy.
First, it would implement the 30% clean technology manufacturing investment tax credit, which would be available as of January 1, 2024. This is a refundable investment tax credit for clean technology manufacturing and processing, and extraction and processing of key critical minerals equal to 30% of the capital cost of eligible property associated with eligible activities.
Investments by corporations in certain depreciable property that is used for eligible activities would qualify for the credit. Eligible property would generally include machinery and equipment used in manufacturing, processing or critical mineral extraction, as well as related control systems.
Eligible investments would cover activities that will be key to securing our future, including things like the manufacture of certain renewable energy equipment like solar, wind, water or geothermal. It would cover the manufacturing of nuclear energy equipment and electrical energy storage equipment used to provide grid-scale storage. It would cover the manufacturing of equipment for air and ground storage heat pump systems; the manufacturing of zero-emission vehicles, including the conversion of on-road vehicles; as well as the manufacturing of batteries, fuel cells, recharging systems and hydrogen refuelling stations for zero-emision vehicles, not to mention the manufacturing of equipment used to produce hydrogen from electrolysis. These are the technologies that will power our future.
Bill C-69's clean technology manufacturing investment tax credit would power the investment that is needed to build them today and build them here at home.
The bill would also make the clean hydrogen investment tax credit a reality, which would exclusively support investments in projects that produce clean hydrogen through eligible production pathways. This refundable tax credit would be available as of March 28, 2023, and could be claimed when eligible equipment becomes available for use at an applicable credit rate that is based on the carbon intensity of the hydrogen that is produced.
Eligible equipment could include, but is not limited to, the equipment required to produce hydrogen from electrolysis of water, including electrolyzers, rectifiers and other ancillary electrical equipment; water treatment and conditioning equipment; and certain equipment used for hydrogen compression and storage. Certain equipment required to produce hydrogen from natural gas or other eligible hydrocarbons, with emissions abated using carbon capture, utilization and storage, would also be eligible. Property that is required to convert clean hydrogen to clean ammonia may also be eligible for the credit, subject to certain conditions, at a credit rate of 15%.
It is important to realize that these clean economy investment tax credits work to incentivize investment and remain competitive but also do not stand alone. They are just part of the tool box that also includes legislation like the Canadian Net-Zero Emissions Accountability Act; the Canadian sustainable jobs act and amendments to CEPA, which is the Canadian Environmental Protection Act; regulations like the clean fuel regulations, the carbon pricing and oil and gas emissions cap; programs like the strategic innovation fund and many others; and the blended finance utilities that the government has launched, including the Canada growth fund and the Canada Infrastructure Bank. These all work together, and that is why we are seeing the results we are seeing.
Bill C-69's support for these investments comes at a pivotal moment when we can choose to renew and redouble our investments in the economy of the future, to build an economy that is more productive and more competitive, or risk leaving an entire generation behind.
With Bill C-69, we would not make that mistake. Our major economic investment tax credits are moving Canada forward on its track to achieve a net-zero economy by 2050. I could not be more proud of our work in this area.
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- May/7/24 4:52:18 p.m.
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Madam Speaker, it is always a pleasure to stand up on behalf of the people of Barrie—Innisfil in the House of Commons and, in this case, in particular, to discuss the budget implementation act.
If one listens to the Liberals, and I have been in the House for most of today, one would almost get the sense that Canadians have never had it so good as what they have right now.
The member for Ajax stood up before, and I recall asking him a question about Canada's productivity. We are seeing declines in productivity, investment and capital investment, other than government investment; it is at a point where our productivity is heading into developing nation status right now.
It is obvious that the ability of Canadians to have some sort of lifestyle or provide for a quality of life for themselves is clearly diminishing after nine years of the current NDP-Liberal government. There is not one day that I am in my Barrie—Innisfil office, not one phone call and not one email that is telling me that their life is better after nine years of the NDP-Liberal government. In fact, I would say that we spend most of our time, and my staff's time, in my Barrie—Innisfil office walking people in off the ledge, because they are so concerned about their economic future.
I recall that, a couple of months ago, I had a senior come into my office. Fortunately, he had a mortgage, but he had to renew it. With the new interest rates, mortgage renewal rates, the way they are, he was only going to be left with $600 at the end of the month to pay his property taxes, to pay his heat, to pay his hydro and to buy groceries. That is an indictment of nine years of failed economic policy, and it is having a severe impact on Canadians right across the country.
The budget does nothing to address that. In fact, I will subscribe to the idea that it actually makes things worse for Canadians, especially in the younger generation. In 2015, younger Canadians voted for the Prime Minister; he was talking about providing them with hope over fear and all the other things he was talking about. He said that things were going to be better for the next generation; in fact, things have gotten worse.
Young people right now do not just feel as though they have been lied to and let down. Rather, they feel as though they have been left behind after nine years of the Liberal-NDP government.
I will go one step further. Any young person whom I talk to right now does not just feel that. Young people are despondent right now, because they do not feel as though they are going to have the same opportunities as their parents had.
They have done everything right. They have gone to university. They have gotten educated. In some cases, some of them are working three or four jobs just to get by. However, because of the economic policies of the government, they still cannot afford to come up with the down payment to buy a home.
Those who have bought a home are now facing a mortgage renewal crisis that this country has not seen in generations. Moms are being kept up at night, trying to figure out how they are going to pay for their mortgages, because mortgage rates have tripled as a result of the failed economic policies of the Liberal government.
When one listens to the Liberal government, it is almost as though Liberals do not realize that they have been in government for nine years and that they have created the mess we are in right now through failed economic policies. When one injects as much liquidity into the system and one creates as much debt and deficit as we are dealing with right now, what does one think is going to happen?
The Leader of the Opposition was predicting three or four years ago that we were going to see interest rates increase as a result. The only lever that the Bank of Canada has to curb inflation is to raise interest rates.
We have heard from former Liberal finance ministers and from former Bank of Canada governors, who keep saying the same thing: It is almost as if the Bank of Canada is pressing on the brakes while the Liberal government is pouring more fuel on the inflationary fires.
There is no greater example of that than what is within the budget: There is $40 billion in additional spending and $56.1 in interest costs, just to service the debt. The debt has been doubled by the Prime Minister; his insatiable appetite to spend is putting at risk the economic prosperity of millions of young Canadians, including my kids. That $56.1 billion is more than we spend in health care transfers to the provinces, and it is almost an equal amount to what we take in on the GST.
It was the former NDP leader, Thomas Mulcair, who said just shortly after the budget that the GST is designed to pay for many of the services Canadians rely on. Every time somebody goes out and fills up their car with gas, goes out for dinner or buys a ticket to something, they pay the GST. They pay it knowing that it is designed to go towards providing for the social safety net that Canadians rely on in this country. However, right now, almost every single penny of the GST is going toward servicing the cost of the debt accumulated by the Prime Minister and the failed NDP-Liberal experiment.
As Tom Mulcair said, “It is no longer the GST. It is the DST, the debt service tax”. He could not have been more correct.
The government is hiding behind generational fairness, but the generational mess it has created for younger Canadians is not going to be fixed by the budget. It is going to be fixed by a government that lives within its means and that focuses on the revenue side of the ledger rather than solely the expense side. By that, I mean not attacking income-producing sectors of our economy that have historically created great wealth for our nation, such as our natural resource sector and agriculture sectors. Those sectors have contributed greatly to not just providing for that social safety net but also to being able to provide for Canadians.
In the natural resource sector, we have a big role to play in providing clean Canadian energy to the rest of the world, and there is no greater example of that than when the President of Germany came to Canada, begging for LNG. Energy security is the number one issue that Europe is facing right now. He came to Canada, and our Prime Minister shooed him away as though there was no business case for that. Two weeks later, the same German president signed a $27-billion deal with Qatar, which has fewer environmental, labour and human rights standards. That $27 billion could have come to Canada to be used to improve health care, education and the quality of life of not just the next generation but also future generations to come.
We have seen an increase in housing costs. We have seen rent and house prices double. We are seeing mortgage rates that, in some cases, have tripled. Hundreds of thousands of homes are now due for mortgage renewal, and these next couple of months and the budget would do nothing to allay the fears that moms have when they go to renew their mortgage, already facing an increasing affordability crisis and a housing attainability crisis.
The last thing I want to focus on is the fact that the government has raised the carbon tax again by 23%, and that is not the end of it. We are at $80 a tonne right now, and we are heading up to $170. After the 2019 election, the government said the price would never go up past $50 a tonne. We are already past that point, and it is expected to double, which is going to increase the cost of everything, such as the necessities of life, as well as housing costs, the cost of groceries and the cost of transporting goods. Everything will become more expensive in this country, and as our productivity continues to decline, so too will the quality of life of Canadians.
I am going to vote against the budget because it would do nothing to improve the quality of life for future generations or this generation today.
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Mr. Speaker, I rise to participate in today's debate in support of Bill C-69, the budget implementation act.
Today, too many young Canadians feel as though the deck is stacked against them. They can get a good job and work hard, but far too often the reward of a middle-class life, a life that is secure, comfortable and prosperous, remains out of reach.
That is why we are taking action today to ensure fairness for every generation, and why we are stimulating the kind of economic growth that will allow every generation of Canadians to reach their full potential.
To ensure every Canadian succeeds in the 21st century, we must grow our economy to be more innovative and more productive. To do this, the government's economic plan is investing in the technologies, incentives and supports that are critical to increasing productivity, fostering innovation and attracting more private investments in Canada. This is how we will build an economy that unlocks new pathways for every generation to earn their fair share.
A competitive economy is a clean economy. What better proof could there be than the $2.4-trillion in net-zero investments made around the world last year? Canada is at the forefront of the global race to attract investment and seize the opportunities that come with a clean economy.
That is also why our government announced an economic plan to achieve net-zero emissions that includes investments of more than $160 billion. The plan includes an unprecedented package of investment tax credits to help attract investment with incentives totalling $93 billion by 2034-35.
In budget 2024, the government announced the next steps in its plan to attract major investment to Canada to create well-paying jobs and to develop and deploy clean energy and technology faster.
The important piece of legislation that I am here to discuss today delivers two investment tax credits: the clean hydrogen and the clean technology manufacturing investment tax credits. Passing these two tax credits into law will secure a cleaner, more prosperous future for Canadians today and tomorrow.
The clean hydrogen investment tax credit would support investments in projects that produce clean hydrogen through eligible production pathways. This refundable tax credit, which would be available as of March 28, 2023, could be claimed when eligible equipment becomes available for use, at a credit rate that is based on the carbon intensity of the hydrogen that is produced.
The clean technology manufacturing investment tax credit would be available as of January 1, 2024. This is a refundable investment tax credit equal to 30% of the cost of investments in machinery and equipment used to manufacture or process key clean technologies, and extract, process or recycle certain critical minerals essential to clean technology supply chains.
Now we are coming to one of my favourite subjects, which is the mineral exploration tax credit and critical minerals. Another piece of important legislation in this bill includes the one-year extension of the mineral exploration tax credit. The mineral exploration tax credit provides important support to junior mineral exploration companies working to unlock Canada's incredible mineral wealth, creating jobs and growing our economy. This extension is expected to provide $65 million to support mineral exploration investment.
Our country's abundant minerals and metals play a key role in the Canadian economy. Canada has the talented workforce, the infrastructure, the innovation and the environmental management capacity to develop these natural resources sustainably. As a result, Canada can create well-paying jobs that contribute to economic growth.
By investing in mining and exploration, the government, through its economic plan, is helping to promote sustainable resource development, create good jobs, grow the economy and foster indigenous economic participation.
We also plan on further advancing indigenous economic participation through the indigenous loan guarantee program. An economy that is fair for everyone is one where everyone is able to fully participate.
With budget 2024, we are taking action to ensure indigenous communities are able to share in Canada's prosperity and benefit from the new opportunities ahead. Bill C-69 would help launch the indigenous loan guarantee program, with up to $5 billion in loan guarantees to unlock the access to capital for indigenous communities, create economic opportunities and support their economic development priorities.
Under this program, successful applicants will be able to obtain loans from financial institutions at lower interest rates.
The budget also provides for an investment of $16.5 million over two years to Natural Resources Canada, including $3.5 million over two years to provide funding for capacity building in indigenous communities. This investment will help indigenous communities apply for the program and support its implementation.
Establishing the indigenous loan guarantee program is a very important step towards indigenous self-determination as well as reconciliation between Canada and indigenous peoples.
The measures I touched on today will support our efforts to attract investment, increase productivity, boost innovation and create good-paying, meaningful jobs.
We are at a pivotal moment: We can choose to renew and double down on our investment in the economy of the future, choose to develop a more productive and competitive economy, or risk leaving an entire generation behind.
Let us not take that risk. We owe it to our businesses, to our innovators and, most of all, to the upcoming generations of workers to make sure that the Canadian economy is positioned to thrive in a changing world.
I urge all members to support the speedy passage of this bill so we can implement these important measures to support Canadians. I am thankful for the opportunity to make this case today.
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