On the Order:

Resuming debate on the motion of the Honourable Senator Downe, seconded by the Honourable Senator Black, for the third reading of Bill C-42, An Act to amend the Canada Business Corporations Act and to make consequential and related amendments to other Acts.

(Pursuant to the order adopted by the Senate on December 7, 2021, to receive a Minister of the Crown, the Honourable Bill Blair, P.C., M.P., Minister of National Defence, appeared before honourable senators during Question Period.)

Senator Carignan: Minister, the situation is even more embarrassing because a Wall Street Journal editorial referred to Canada as a “military free-rider in NATO” owing to its pathetic investments in defence.

Minister, you are the minister of the armed forces, but some wags are even referring to you as the “minister of the unarmed forces” because of the pathetic investments in our national defence. In addition to improving the efficiency of the procurement system, will you increase the defence budget?

[English]

We have, for example, made a commitment of $38.6 billion to NORAD modernization. That’s a lot of money, senator. It’s important that it be spent well, but we’ve made that commitment. We’ve also made contracts for the fighter jets —

Senator Batters: Minister Blair, the commitment by the Government of Canada to the Snowbirds is imperative. The Snowbirds are the excellent public face of the Canadian military and serve as a major recruitment tool at this time of declining membership in the Canadian Forces. Current Snowbird 2 Captain Caitlyn Clapp started dreaming of becoming a Snowbird pilot at age 12, when she saw this magnificent team perform, led by Commanding Officer Maryse Carmichael, the Snowbirds’ first female pilot. With media reports stating that your government intends to cut the National Defence budget by $1 billion, will you commit today that Canada’s beloved Snowbirds will never be sacrificed on the chopping block?

I will tell you that what I’m not looking at with respect to the Treasury Board request for us to look at professional services, consulting and —

On the Order:

Resuming debate on the motion of the Honourable Senator Gold, P.C., seconded by the Honourable Senator LaBoucane-Benson, for the third reading of Bill C-48, An Act to amend the Criminal Code (bail reform), as amended.

Hon. Robert Black: Honourable senators, I rise to highlight that today marks the one hundred and tenth anniversary of 4-H in Canada and Global 4-H Day. It’s also Show Your 4-H Colours Day, their biggest annual event in this country. Every November, the 4-H community comes together to celebrate their accomplishments and the positive impact that they have had, not only in Canada, but around the world. This month-long campaign is a testament to the incredible contributions 4-H youth are making in their communities and the transformation that the 4‑H program is fostering by producing responsible, compassionate and engaged young people.

I can’t help but reflect on my own journey of more than 50 years with this incredible organization and program. I’m a proud alumnus, a former staff member at both the provincial and national levels, and even had the privilege of serving as the president of the Canadian 4-H Council. Moreover, I’m honoured to have been recognized as an honorary lifetime member of 4-H Canada. It is with profound gratitude that I declare that 4-H is the cornerstone upon which my life’s trajectory was set, ultimately leading me to the position I hold here in the Senate of Canada.

The impact of 4-H on young Canadians cannot be overstated. For over a century, it has provided youth with unique opportunities to learn essential life skills that go beyond traditional education. Through hands-on projects, leadership development and community engagement, 4-H empowers our youth to become active and responsible citizens. It instills values of hard work, dedication and the importance of giving back to the community. As we look to the future, the significance of organizations like 4-H in shaping responsible and caring leaders becomes even more evident.

Our world is facing an array of complex challenges, and the leadership and problem-solving skills instilled by 4-H are exactly what our society needs. The resilience, compassion and commitment fostered within the 4-H community are qualities that are essential to addressing issues such as environmental sustainability, social justice and economic development.

Show Your 4-H Colours Day is not merely an event; it’s a celebration of positive effects created by 4-H in our communities, an acknowledgement of the hard work and dedication of countless young Canadians who have committed themselves to making a difference — and a reminder of the potential that lies within each young mind.

I want to express my heartfelt gratitude to 4-H Canada for the profound influence it has had on my life and countless others. Colleagues, please join me in taking a moment to recognize and celebrate the transformative power of 4-H, and the promising potential it holds for our nation, with the 4-H pledge:

I pledge

My head to clearer thinking,

My heart to greater loyalty,

My hands to larger service,

My health to better living,

For my club, my community, my country, and my world.

Thank you.

Hon. Sharon Burey: Dear colleagues, I rise today to highlight problems that are affecting millions of Canadians and to draw your attention to the fact that October was Learning Disabilities, Dyslexia and Attention Deficit Hyperactivity Disorder, or ADHD, Awareness Month.

[English]

My remarks will focus on the cost to Canadian society and highlighting a few recent efforts to improve children’s literacy across Canada.

Although attention deficit hyperactivity disorder, or ADHD, and learning disabilities such as dyslexia — which are often seen together — are highly heritable, we know that racialized and marginalized individuals and those facing social adversity experience poorer outcomes. Education is a social determinant of health and economic outcomes, so if we as a country are serious about decreasing health care costs, increasing productivity and improving lifelong health, this issue requires our full attention. In fact, according to the Centre for ADHD Awareness, Canada, ADHD is estimated to cost Canadian society $7 billion annually.

Frontier College, a national charitable literacy organization, reported in 2021 that:

Studies have consistently shown that improving the literacy of a country’s workforce increases both GDP and productivity. In fact, literacy scores are a better predictor of long-term growth of OECD countries than educational attainment. Increasing the literacy skills in the workforce by an average of 1% would, over time, lead to a 3% increase in GDP, or $54 billion per year, every year, and a 5% increase in productivity.

In 2019, the Ontario Human Rights Commission undertook a public inquiry entitled Right to Read. The Ministry of Education adopted most of its substantial recommendations, and science‑based, evidence-based, structured literacy is now part of the language curriculum in all Ontario schools.

A 2023 Saskatchewan Human Rights Commission report entitled Equitable Education for Students with Reading Disabilities points to provincial reading scores that indicate 25% of all students and a staggering 45% of students identifying as First Nations, Métis and Inuit were not meeting provincial standards for reading. In closing, colleagues, it is hoped that this report will lead to systemwide changes to the literacy and language curriculum in Saskatchewan schools. Our children and families are depending on us. Thank you.

[Translation]

The Hon. the Speaker: Pursuant to the order adopted by the Senate on December 7, 2021, Question Period will begin at 2:30 p.m.

Hon. Senators: Hear, hear.

[Translation]

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, I give notice that, at the next sitting of the Senate, I will move:

That, when the Senate next adjourns after the adoption of this motion, it do stand adjourned until Tuesday, November 7, 2023, at 2 p.m.

Hon. Victor Oh: Honourable senators, I rise today to speak at third reading of Bill C-42, An Act to amend the Canada Business Corporations Act and to make consequential and related amendments to other Acts.

This bill aims to safeguard Canadians from the threats of money laundering and terrorist financing, discourage tax evasion and avoidance and maintain Canada’s reputation as a favourable destination for conducting business. To meet those objectives, the government is implementing a publicly accessible beneficial ownership registry of corporations governed under the Canada Business Corporations Act, or CBCA.

Experts believe that this legislation will have a substantial impact on discouraging money laundering within the country. Internationally, among anti-corruption organizations, and notably among facilitators and criminals, Canada has gained a reputation as the “snow-washing” destination of the world. Right now, according to a Canadian Security Intelligence Service 2020 report, it’s estimated that $45 billion to $113 billion is laundered annually in Canada.

Bill C-42 will dispel that perception and will deter criminals who wish to take advantage of corporations governed under the CBCA. Transnational criminal groups will need to reconsider their shareholding structures or their strategies before infiltrating Canada’s economy. We need to put an end to those who seek to exploit Canada as a haven for their criminal activities.

The publicly available beneficial ownership registry proposed in Bill C-42 aligns with the practices of the G20 and Five Eyes nations. If Canada were to pass this legislation, as indicated by experts in committee, the country would make substantial progress on the global stage regarding beneficial ownership regulation.

Similar actions have already been taken in jurisdictions around the world. Among the Five Eyes nations, the implementation of this registry would place Canada on the same level as the United Kingdom and New Zealand, both of which are establishing publicly accessible registries. Additionally, Australia is also committed to developing a publicly accessible registry. Canada’s new public registry would be on par with what our allies have developed. This would ensure interoperability.

Bill C-42 is critically necessary to make a true difference in the fight against illicit financial activities around the world. However, there are some issues to consider when implementing a system of this nature.

First, the public disclosure of an individual’s information can raise concerns regarding privacy and the protection of personal security rights. I highlighted this issue as one that needed to be examined in committee during my previous speech. In fact, privacy and personal security rights were the reason a similar public registry in Europe was held to be invalid by the Court of Justice of the European Union in 2022. This highlights the implications that a public registry can have on beneficial owners’ rights and the balance between the public’s right to information and an individual’s right to privacy.

Second, interoperability on an international scale is important to detect the complex structures used by criminals. However, we need to make sure the registry is truly pan-Canadian with the inclusion of provincially and territorially incorporated corporations. If provinces and territories are not included, bad actors can incorporate under their laws and escape the proposed national registry altogether.

At this time, there seems to be no set agreement with any provinces or territories to adhere to the new system or to enable provincially or territorially incorporated corporations to transmit beneficial ownership data directly to the federal registry. Ministers Champagne and Freeland have written to their provincial and territorial counterparts urging them to take part in the system. However, I am not aware of any confirmation that the provinces or territories will do so.

Bill C-42 represents a pivotal step in ensuring the integrity of our financial system and safeguarding our nation against the misuse of corporate structures for illicit activities. With this legislation, Canada can further align itself with global standards in the fight against money laundering, tax evasion and corruption.

We will be supporting this bill at third reading. Thank you.

The Hon. the Speaker: Is it your pleasure, honourable senators, to adopt the motion?

The Hon. the Speaker: Honourable senators, the minister has arrived, and we will suspend until he is seated.

(The sitting of the Senate was suspended.)

(The sitting of the Senate was resumed.)

The Hon. the Speaker: Honourable senators, today we have with us for Question Period the Honourable Bill Blair, P.C., M.P., Minister of National Defence. On behalf of all senators, I welcome the minister.

Honourable senators, let me remind you that during Question Period with a minister the initial question is limited to 60 seconds, and the initial answer to 90 seconds, followed by one supplementary question of at most 45 seconds and an answer of 45 seconds. The reading clerk will stand 10 seconds before these times expire. Pursuant to the order adopted by the Senate, senators do not need to stand. Question Period will last 64 minutes.

[English]

The Hon. the Speaker: Honourable senators, it is now 2:30, and the Senate will proceed to Question Period. The minister has taken his seat, so we will now proceed.

Hon. Senators: Agreed.

(At 3:51 p.m., the Senate was continued until tomorrow at 2 p.m.)

The Hon. the Speaker: Is it your pleasure, honourable senators, to adopt the motion?

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, Senator Plett, for the question. Thank you also, ladies and gentlemen, for the privilege and the opportunity to come before you today.

In the aftermath of the terrible attack and the murder of innocents that took place on October 7, there was, very importantly, a reaction. I think that we have been very clear on the government’s position with respect to affirming Israel’s right to defend itself. As a result of the bombing of the hospital that took place in Gaza, there were a lot of questions and, I think, a lot of misinformation with respect to what had taken place there.

I met with my officials at the Department of National Defence and the Canadian Armed Forces, and I asked them for a close examination of the ballistics of the event and the trajectory of the ammunition. They examined both the open-source information and the classified material that was available to us. Then, I had the opportunity to brief the Prime Minister on this matter on that Saturday afternoon, and, after briefing the Prime Minister, I made a public statement.

Senator, I would respectfully disagree with your characterization. I think the Prime Minister reacted in a very understandable way to the explosion that took place at that hospital and the loss of innocent life.

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, Senator Marshall.

I would point out, senator, that I was recently appointed to this position. Although I work closely with my predecessor, Minister Anand — and I continue to work very closely with her — upon my arrival into that portfolio, I undertook a comprehensive review. I had previously seen some of the planning that had gone into the Strong, Secure, Engaged defence policy update in a different capacity — I was the chair of the security committee for cabinet. However, having gone in there, I have been working very closely with the Department of National Defence, the Treasury Board and our government in determining the right way forward. There have been some changing circumstances. There has also been extensive consultation with not just the Canadian Armed Forces, but also with industry. I have been meeting with them as well because, in many respects, the defence policy update is also industrial policy — it’s not just defence policy in my opinion — so I have been engaging with them as well.

I understand the importance of coming forward with that defence policy update. We are working on it very diligently, and I hope to have good news about that in the not-too-distant future.