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House Hansard - 80

44th Parl. 1st Sess.
June 2, 2022 10:00AM
Context: House Hansard - 80 - Jun/2/22
Mr. Sébastien Lemire (Abitibi—Témiscamingue, BQ)
  • Jun/2/22 3:16:16 p.m.
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Mr. Speaker, there have been consultations among the parties, and I believe you will find unanimous consent for the following motion: That the House call Hockey Canada before the Standing Committee on Canadian Heritage to shed light on its involvement in a case of alleged sexual assaults committed in 2018.
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Context: House Hansard - 80 - Jun/2/22
Mr. Sébastien Lemire (Abitibi—Témiscamingue, BQ)
Mr. Speaker, I am pleased to rise to participate in this debate on Bill C-240. This bill will affect an important industry in Quebec, specifically non-profit organizations, or NPOs, and charities that we have all worked with as citizens and in our work as members. We are all well aware of the important contribution they make to our communities. I commend the enormous amount of work that these organisations do every day in conditions that are not always easy. I thank them for it. I want to take a moment to commend the leadership of the team at Le Passage de l'Aurore hospice. It is important for every RCM in our region to have this kind of end-of-life facility. Charities receive significant support, totalling nearly $4 billion annually, through the tax system. Canada's tax incentives for charities are among the most generous in the world. Can we do even more in this area to help that sector thrive? I believe we can. I also believe that piecemeal measures, which are often simplistic solutions, are no substitute for serious policy reform. In any case, it is high time that we prioritized the problems faced by NPOs and charities. Tonight we will essentially debate a measure to exempt donations involving private shares and real estate from capital gains tax. Let us review the history of this tax measure. Since 2006, the government has introduced a number of measures to boost charitable giving and cut red tape for the charitable sector. The House of Commons Standing Committee on Finance also studied the taxation of charities and NPOs, and this measure was among the recommendations in its February 11, 2013, report. This would benefit charities of all types, from hospitals, universities and cultural groups to the vast network of United Way–funded social service agencies across Quebec. The measure was first introduced by the government in the 2015 budget. At that time, it was described as a way to unlock more private wealth for the public good. However, the exemption of donations involving private shares and real estate from capital gains tax was never implemented, as the Liberal members opposed it. In 2019, the Special Senate Committee on the Charitable Sector concluded that the measure proposed in Bill C‑240 was positive overall and recommended that it be adopted. Did the pandemic finally manage to convince us that this sector of our economy is fragile and that action is urgently required? There continues to be an urgent need to increase the financial resources of charities and NPOs. It is vital that we examine the real needs of charitable organizations and NPOs. My criticism of this bill is that it once again avoids finding a comprehensive solution that would provide these organizations with greater predictability in the longer term. It does not address all the problems to identify potential solutions. At first glance, I do not see any serious problems with this new provision. However, I want to stress that better social policies and an adequate response to the problems of an aging population must be implemented in conjunction with the modernization of our tax system for charities. Social inequalities exist, and the government's declining contribution to health care has a lot to do with that. The Bloc Québécois wants the government to increase the main provincial transfer so the provinces can make long-term plans for providing services to their people. This is just basic respect for the Canada Health Act. Let us look at the changes proposed in the bill. Simply put, it would change the Income Tax Act to provide the same tax treatment as for donations of shares. Like other members of the House who commented on the consequences, I think we can look to the Parliamentary Budget Officer's numbers. That should not be far from the truth. We have a report here from the PBO stating that donations of real estate and private corporation shares could rise from $2.9 billion to $3.9 billion, an increase of $981 million. I encourage my colleagues to look at part two of the Department of Finance's 2021 report on federal tax expenditures, and more specifically the table on page 33, which shows how much it costs the government for each of its existing measures for charities and non-profits. I have a lot of questions that the finance committee could look into when studying the bill. The Parliamentary Budget Officer's budget model does not give any indication of how effective this measure is. Are these new donations? Will this measure encourage more people to donate private corporation shares or real property? Would this simply add a benefit for donations that the organization would have received either way? From a tax fairness perspective, tax credits for charitable donations are meant to recognize the public value of charities and to encourage donations. These tax credits are designed to encourage more donations, not to financially incentivize certain taxpayers to structure their affairs in a manner that minimizes their tax liability. I think it is particularly important to ensure that this does not become an excuse for the government to shirk its social responsibilities. We must not lose sight of technological change. That is hard for someone to do when they cannot afford it. My colleague from Joliette gave us his perspective on what we have heard from charities, as he has met with representatives from that sector of the economy. As part of my role in the Bloc Québécois, what I have been hearing in my meetings is that the resources for organizations are limited, and that this is hindering the adoption of digital technologies, including software, hardware and data. As well, organizations are not always able to hire or train the required staff. However, not‑for‑profit organizations are key partners in the delivery of services to ensure the health and well‑being of our community. Without access to critical technology such as computers, teleconferencing platforms, or a stable broadband connection, the ability of organizations to reach and serve their communities remains limited. This reality was laid bare by the pandemic and restrictions on the ability to deliver programs in person. When it comes to the day-to-day needs of charities, they will need to be able to gain access to new technologies to help them with their work and to keep up with the demands that come with the digital age. In closing, with the COVID‑19 pandemic, I would say that charities, especially those providing vital services to vulnerable individuals and communities, began expressing more directly what they needed from governments to survive and continue their work. Non-profit organizations have played a critical role during the COVID‑19 pandemic, but many are experiencing financial losses and facing increased demand for services. They need help to be able to continue providing critical programs and services. Once again, we too often see the government disengaging from its mandates. In many cases, when we talk about people's needs, especially in the charitable sector, it should be the government's responsibility to provide the services that people need. Instead, they have to turn to a sector that often has fewer resources. In the end, it is the people in the various communities who suffer. I therefore encourage everyone to be generous, because that is a win-win for everyone in our society.
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