Remarks by the Deputy Prime Minister highlighting the government’s legislative accomplishments for Canadians over the spring parliamentary sitting

June 19, 2024 - Ottawa, Ontario

Good afternoon.

With Parliament rising for the summer soon, today is an important opportunity to highlight the work our government is doing to deliver fairness for every generation.

This work includes two important pieces of legislation that we expect will receive Parliamentary approval in the coming days.

The first is the Budget Implementation Act, which would put into effect many key measures from this year’s budget.

These measures include a plan to help make homes more affordable—by helping Millennial and Gen Z Canadians afford a home with more tax-free ways to save for that first down payment.

We’re also putting more homes back on the market by cracking down on short-term rentals and by banning foreign buyers of Canadian homes.

We’re making life cost less and we’re strengthening Canada’s social safety net for every generation—from expanding the Canada Student Loan Forgiveness Program to health care and social services workers who work in rural and remote communities, to launching a National School Food Program, to making switching internet and phone plans easier and more affordable.

We’re also increasing investment and productivity by delivering two major investment tax credits for Clean Hydrogen and Clean Technology Manufacturing. These new tax credits will attract more private investment, create more good-paying jobs, and grow the economy.

The second piece of legislation I would like to highlight is the Fall Economic Statement Implementation Act. This includes important measures such as removing the GST on new purpose-built rental housing for eligible co-operative housing projects—something we are glad to put in place. It 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. 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.

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

Passing both the Fall Economic Statement Implementation Act and the Budget Implementation Act will therefore enshrine four major investment tax credits into law and give certainty to businesses that want to create good-paying jobs and bring more investment to Canada. This is a real milestone in our economic plan. I cannot underscore how significant these four investment tax credits will be in setting the Canadian economy up for success in the long term.

I am really glad we finally will have these four pillars of our economic plan passed into law so businesses can 100 per cent rely on them.

These tax credits are going to create more good jobs for Canadians. They will attract more investment to Canada. And they will place Canada at the forefront of the global race to seize the opportunities of today and tomorrow. 

Passing these tax credits into law this month is a milestone for Canada and for our economic growth plan.

All of these measures are based on a foundation of fiscal responsibility.

Earlier this month, the Bank of Canada lowered interest rates—making Canada the first G7 country to do so. Another milestone.

Interest rates are coming down because inflation is falling. Inflation fell to 2.7 per cent in April, down from 2.9 per cent in March.

That’s four months in a row that inflation has been within the Bank of Canada’s target range. That is good news for all of us.

In fact, inflation has fallen to its lowest level in three years, and wage growth has now outpaced inflation for 15 months in a row.

Last week, the International Monetary Fund released its annual Article IV review of the Canadian economy. In the review, the IMF commended Canada’s strong fiscal credibility and economic resilience. Specifically, the IMF commended our government for adhering to the fiscal guideposts we introduced in the 2023 Fall Economic Statement, which complement our government’s fiscal anchor to reduce the debt-to-GDP ratio over the medium term. We met all of those markers in the 2024 budget.

The IMF also recognized that the Canadian economy appears to have achieved a soft landing, avoiding a recession and the heartbreaking unemployment that many had thought was inevitable. 

This is a powerful endorsement of Canada’s economy. It shows that our economic plan is fiscally responsible. And that really matters, because it means that we can afford to make the investments and create the good jobs Canadians need.

Finally, we recently tabled—and passed—a motion to improve tax fairness for all Canadians and to implement the changes the budget proposed to capital gains taxation.

As a result of these changes, a small number of well-off Canadians will pay a little more tax on the profit they make when they sell a successful investment.

That revenue will be used to finance investments that will help all Canadians, especially younger generations.

It will help fund the measures I just highlighted and make life cost less for Canadians.

We are getting laws passed and we are doing it because we know that Canadians are counting on us.

Thank you.