Remarks by the Deputy Prime Minister at the Standing Committee on Finance regarding Bill C-59, the Fall Economic Statement Implementation Act, and Main Estimates

March 21, 2024 - Ottawa, Ontario

Thank you, Mr. Chair. It is my pleasure to appear before you and Members of the committee to discuss Bill C-59, the Fall Economic Statement Implementation Act, and Main Estimates.

Before I begin, I would like to take a moment to pay tribute to the life of Brian Mulroney.

And I want to recognize one moment in particular that was really meaningful to me and to many Canadians.

In December 1991, the people of Ukraine voted overwhelmingly for independence in a national referendum. I was there as a reporter covering it. The day afterwards, Brian Mulroney, as Prime Minister of Canada, took the initiative and was the first Western leader to recognize an independent Ukraine. That was a historic act and a historic decision—and it was a great thing he did for Canada.

Since then, Canada and Ukraine have shared a deep and meaningful bond that has only grown stronger—especially today, as we stand with Ukrainians in their heroic and ongoing fight for their democracy.

Mr. Chair, on behalf of the Government of Canada, I would like to take this opportunity to extend my deepest condolences to the Mulroney family and to commemorate a truly great Canadian leader.

Bill C-59 is a key part of our economic plan that will help make life more affordable, build more homes, and create good jobs from coast to coast to coast.

I would like to start with a little bit of economic data.

Inflation in Canada fell to 2.8 per cent in February. That was down from 2.9 per cent in January and down from its peak of 8.1 per cent in 2022. Inflation has now been within the Bank of Canada’s target range for two months in a row. That is good news for all Canadians and for all Members of this committee.

And earlier this month, DBRS reaffirmed Canada’s AAA credit rating with a stable outlook. That is a powerful proof point of our government’s fiscally responsible approach.

All of this is progress. But we know that so many Canadians, especially young Canadians, are still struggling to make ends meet and to feel confident about their future.

Our economic plan will change that. And that is why I’m so glad to be here to talk about C-59 and why it is so important to pass this bill into law.

Here are some key measures in the bill that I hope Members will support.

We are removing the GST on new purpose-built rental housing for eligible co-operative housing projects. This complements the action we took in the fall to lift the GST on new purpose-built rental housing.

We are making the math work for builders by creating incentives for them to build more homes that would otherwise not move forward to construction.

We are making generational changes to competition law in Canada, and this change will help stabilize prices and provide more choice for Canadians.

We’re lifting the GST and HST on counselling and psychotherapy services so that people can receive the support and mental health care they need.

We are delivering a transformational investment tax credit for Carbon Capture, Utilization, and Storage and an investment tax credit for Clean Technology. These are the first two of our five major investment tax credits. It is absolutely urgent to pass these measures into law as soon as possible. Investors need that certainty.

And we are supporting Canadian workers by linking these investment tax credits to historic labour requirements. They will give businesses an incentive to pay a prevailing union wage and to create apprenticeship opportunities.

Passing Bill C-59 swiftly will enshrine these two major investment tax credits into law and give certainty to businesses that want to create good paying jobs and bring more investment to Canada.

Mr. Chair, Bill C-59 presents real, concrete action to address the challenges that Canadians are facing. That is why I am urging all MPs who are here to support the bill’s swift passage.

Thank you, and I am now happy to take your questions.