The Hon. the Speaker: Order. Senator Simons has the floor.

Please continue.

Hon. Yonah Martin (Deputy Leader of the Opposition): Government leader, in March, the Canadian Federation of Independent Business, or CFIB, released a report entitled Fueling Unfairness: Carbon Pricing and Small Businesses. This report estimates that small businesses pay close to half of the carbon tax revenue collected by the Trudeau government. However, only 0.17% of all carbon tax revenues were returned to small businesses between the 2019-20 and 2022-23 fiscal years. Clearly, the Prime Minister’s carbon tax is not worth the cost to our entrepreneurs.

Leader, why did your government use the carbon tax funding set aside for small business to pay for the rebates announced last week? Why won’t you just axe the tax to help small businesses across Canada that are struggling to survive?

Hon. Colin Deacon: My question is for the Government Representative in the Senate, Senator Gold.

Open banking is about giving consumers and businesses control over their financial data so they can use it for their personal benefit rather than the bank monopolizing its use for its commercial benefit. Inaction is preventing Canadians from securing more affordable, innovative financial services.

In its 2021 election platform, this government committed to implementing open banking by early 2023. Despite Finance Canada having run highly inclusive and transparent consultative processes to develop an implementation plan, no action has been taken. Consequently, Canada continues to fall behind its global peers, who are making their financial sector work harder to create opportunities and reduce costs for their citizens.

Senator Gold, why is the government faltering on its promise to implement open banking at a time of rising costs for Canadians? What is the current timeline?

Thank you.

Hon. Marty Klyne: Senator Gold, my question is with respect to Bill C-18 — the Online News Act — and northern communities. In August, Catherine Tait, President and CEO of CBC/Radio-Canada, wrote to Meta asking Meta to consider that many people living in remote northern communities in Canada depend on getting news on Facebook. This was during the wildfires that forced the evacuation of Yellowknife.

She wrote:

Given the emergency conditions, we are calling on you to exempt people in these communities from Meta’s current blockage of news accounts in Canada so that they are able to share critical news on those accounts, including evacuation order information.

Senator Gold, what actions have the federal government taken or planned to ensure that everyone living in remote northern communities can be informed of risks normally shared on the news via Facebook?

Hon. Marc Gold (Government Representative in the Senate): Thank you for the question and for the analysis of Supreme Court jurisprudence. What the government announced applies across Canada, and therefore does not concern the test as you described it, although this is not the main thrust of my response.

The main thrust of my response is that the adjustments made to the plan to fight climate change are still being reviewed, in light of the circumstances, including their impact on the people who are required to pay costs that are not necessarily the same as in other areas. That’s my response.

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. We all know that in an emergency, every second counts. Canadians rightly expect that they be informed as quickly as possible when there is an imminent threat to their safety. We’ve seen too many tragic examples of lives lost when that is not the case. It’s not only in northern and rural environments, regrettably.

Public alerting to risk is a shared responsibility across all levels of government. The Government of Canada is working closely with its provincial and territorial partners through the National Public Alerting System, or NPAS. I have been assured that the work is ongoing to further strengthen this alerting system. The work is active and ongoing, and it is designed to ensure that it continues to meet regional needs and keep Canadians informed and therefore safe.

Hon. Yonah Martin (Deputy Leader of the Opposition): The Prime Minister’s two carbon taxes, the alcohol escalator tax, increased payroll taxes and red tape, skyrocketing rent and interest rates and small business owners being accused of being tax cheats — this is the legacy of eight years of the Trudeau government when it comes to small business.

Leader, will your government bring forward a common sense plan to help our entrepreneurs, control your spending and set a time frame to balance the budget as the CFIB has asked?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. You cannot fight climate change — an existential threat to our planet, community, children and well-being — without a suite of measures, which includes putting a price on pollution.

Small businesses are the lifeblood of our economy. This government has been there to help them through the pandemic. There’s still help available in terms of the deferral of repayment of the benefits that kept them afloat during the pandemic, and the government will continue to consider measures to assist those whose economic entrepreneurial wherewithal provides jobs, security and a future for all Canadians.

Hon. Marc Gold (Government Representative in the Senate): Thank you for raising and championing the issue, as you have done admirably in this chamber and beyond. I do not know what the timeline is nor do I have an explanation for why legislation has not yet been introduced. I will certainly take your concerns back to the minister and communicate those concerns.

Modernizing our approach is an important objective, and one that I know is being considered and pursued. I will certainly make every effort to understand further and communicate those concerns to the minister.

Senator C. Deacon: Thank you, Senator Gold. I hope you do communicate as well that there is risk in inaction that goes well beyond risk in action at this point in time. Consultations have been extensive. The government should be proud of the work they have done, so I would ask that you do communicate that as well.

Thank you.

Hon. Claude Carignan: My question is for the Leader of the Government. Leader, in its March 2021 ruling on the constitutionality of the Greenhouse Gas Pollution Pricing Act, the Supreme Court indicated that one of the reasons why the federal government is able to impose minimum national standards on greenhouse gas pricing is as follows, and I quote:

 . . . the failure to include one or more provinces or localities in a legislative scheme would jeopardize the successful operation of the scheme in other parts of the country.

Leader, by delaying the application of the carbon tax on fuel oil, the Trudeau government obviously decided to favour the Atlantic provinces, where that type of heating is still common. The foundation on which the carbon pricing system is based is starting to crumble. According to the Supreme Court’s criteria, the reason why the federal government has authority in this area is to impose standards on all the provinces.

Senator Gold, is this another nail in the coffin of the carbon tax?

Hon. Marc Gold (Government Representative in the Senate): It’s the position of this government that the measures they have taken, are taking and will be taking are balanced, proportionate and prudent to guide this economy forward.

[Translation]

Hon. Marc Gold (Government Representative in the Senate): Thank you for the question. Canada’s position is the same on the ground, under the circumstances, as the United States and the European Union. Neither the United States, nor Canada, nor anyone who understands the history or even the charter of Hamas are calling for a ceasefire because, as the Prime Minister explained, there is no point—not for those in the Gaza Strip and not for the innocent civilians, whether they are Israeli or Palestinian.

As I have mentioned in this chamber, Canada is in favour of the establishment of an air bridge to ensure that humanitarian aid is delivered to the citizens and residents of Gaza. This position is consistent with that of our democratic allies.

The Hon. the Speaker: Senator Gold, your response.

Hon. Mary Coyle: My question is for the Government Representative in the Senate.

Last week, the Standing Senate Committee on Foreign Affairs and International Trade held meetings about the situation in Afghanistan. I asked witnesses about Bill C-41, which is the legislation we passed back in June that amends anti-terrorist financing offences in the Criminal Code to facilitate the delivery of much-needed international assistance in geographic areas controlled by terrorist groups, such as the Taliban in Afghanistan. I asked witnesses if they’re seeing any increased flow of aid as a result of the passage of the bill.

Usama Khan, Chief Executive Officer of Islamic Relief Canada, indicated that the implementation of the bill is not moving fast enough. He said that for the application and the understanding of exactly what Bill C-41 looks like, and for the process of the authorization regime, some of those details haven’t been fleshed out yet. According to some aid agencies, the status quo is still the status quo. There’s no clarity on what’s allowed.

Senator Gold, how does the government respond to the request from aid agencies for clarity?

Hon. Marc Gold (Government Representative in the Senate): I’m not going to comment on the branding and taglines that are clearly — I’ve got one minute to answer your question, and you asked a whole bunch of questions.

The government has no intentions of axing the tax. It will continue to take into consideration measures that are appropriate to address the significant and important issues of combatting climate change, while also providing relief to Canadians and supporting our economy going forward.

Hon. Leo Housakos: Senator Gold, Justin Trudeau and the Liberal-NDP coalition finally flip-flopped on their cornerstone public policy: the carbon tax. Of course, the Prime Minister didn’t flip-flop on the carbon tax because he finally understood what future prime minister Pierre Poilievre has been talking about for years, which is that a carbon tax causes inflation, raises the cost of living and pummels poor, working-class and middle‑class Canadians — no, not at all. He flip-flopped because he saw plummeting polling numbers for the Liberal Party of Canada and desperate Liberal MPs from Atlantic Canada.

The question is this: Why just for Atlantic Canada?

Second, if Justin Trudeau has finally understood that he and his carbon tax are just not worth the cost, why isn’t he now planning to axe the tax from coast to coast to coast in order to give relief to all segments of the economy and all sectors of the population?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question, and thank you for underlining — as if the world doesn’t have enough tragedies — that which has befallen the people of Afghanistan, not only recently, but also, frankly, for much of our adult lives.

I don’t have the information to answer your question with any confidence, senator, but it is an important question. I will certainly bring those questions to the attention of the minister in the hope that I’ll understand better.

Hon. Julie Miville-Dechêne: Senator Gold, the ground invasion by the Israeli forces in northern Gaza started on Friday, in response to the horrible attack by Hamas on Israeli territory. Thousands of Gazan children and adults have lost their lives. No one is sure exactly how many.

The United States is starting to speak up with their Israeli allies, focusing on the need to protect civilians. Canada has remained more passive and is not calling for a ceasefire. What will it take to get to that point?

In the meantime, are some Canadian experts right to believe that Canada is giving Israel carte blanche?

Hon. Pierre J. Dalphond: Honourable colleagues, I rise to express the importance of Bill C-42 as a powerful invitation to provinces and territories to follow suit and put in place similar transparency regimes with respect to beneficial ownership.

Many of you may not know, but in a previous life, I was a corporate law partner in a national law firm. This bill is, thus, of great interest to me and brings back many memories. Today, I would like to bring your attention to the Quebec legislation as a model that each province and territory should consider.

As was pointed out at second reading by both the sponsor and the critic of the bill, as well as today at third reading by the sponsor — I thank them for their excellent remarks — this bill will apply to about 500,000 corporations; that is, those that are incorporated under the Canada Business Corporations Act, or CBCA.

You may think that’s a lot, but it isn’t. In fact, it represents only 15% of Canadian corporations. The remaining 85% of corporations operating in Canada are legal entities incorporated under provincial or foreign legislation.

Moreover, many businesses in Canada operate through a trust, partnership, limited partnership, cooperative or joint venture, or are carried on by one or more individuals. All these businesses are regulated by provinces and territories. In fact, under our Constitution, most businesses, whether incorporated or not, are governed by provincial laws.

In order to stop money laundering and the recycling of proceeds of crime, provincial legislation providing for public access to information regarding ultimate or real beneficial ownership is urgently required across Canada.

[Translation]

Over the past 10 years, every province except Alberta has passed legislation to implement a registry of the real beneficial owners of business corporations incorporated under their respective corporations laws.

Most of these laws require business corporations to keep an internal beneficial ownership registry and to report to the relevant province’s director of corporations information about the individuals who effectively control each business corporation.

I will note that this information is not publicly available, except in British Columbia and Quebec. In British Columbia, the provincial corporations registry has been in place since October 1, 2020, for private corporations, whereas the register of individuals with significant control was implemented in mid-2019. The full registry for British Columbia will come into force in 2025.

In Quebec, a bill entitled An Act mainly to improve the transparency of enterprises was introduced on December 8, 2020. That bill was passed on June 8, 2021, and came into force seven months ago on March 31, 2023.

Paul Martel, a lawyer and leading authority on Quebec corporate law, and a personal friend, described Quebec’s new law as follows in his treatise entitled La société par actions au Québec:

The new law amends the Act Respecting the Legal Publicity of Enterprises mainly to institute new rules relating to information about the ultimate beneficiaries of corporations and to expand the role of the enterprise registrar to optimize the reliability of the information contained in the enterprise register, improve the transparency of enterprises and enable Quebec’s participation in the international movement to fight tax evasion, money laundering and corruption.

Quebec’s new regime is innovative because it does two things that are not done in most other Canadian jurisdictions. First, it applies to all businesses operating in Quebec, regardless of their constitutional jurisdiction, including federally incorporated companies. Currently, federally incorporated companies operating in Quebec have to provide and make public information about their ultimate beneficiaries. This bill will therefore not change anything for companies operating in Quebec.

In other words, the Quebec legislation applies not only to companies that are incorporated under Quebec law, but also to federal corporations and those created under legislation in another province or even a foreign state, partnerships, limited partnerships, trusts and individuals doing business in Quebec.

The definition of “ultimate beneficiary” is similar to the one found in the Canada Business Corporations Act, which we are amending today through Bill C-42. Essentially, it refers to an individual who controls or holds, even indirectly, or is the beneficiary of 25% or more of the shares of a corporation, voting rights or units of a trust or partnership, or persons who are acting as nominees for another person or a company.

The Quebec legislation also stipulates that the company is required to take the necessary steps — as opposed to reasonable means in the federal law — to identify its ultimate beneficiaries, verify their identity and update the information.

In addition, proof must be forwarded to the registrar of companies regarding the identity of directors by supplying a document from a government authority confirming the name, address and date of birth, such as a passport, driver’s licence or health card. The information provided is verified.

Then, that information is accessible to the general public. Quebec is following the example of the United Kingdom and most countries in the European Union, who make information on beneficial owners available to the public, and that includes not just business corporations, but all companies doing business in Quebec.

I want to specify, however, that the date of birth is not made public and that a person can provide a business address in addition to their home address. In such cases, only the business address will be made public.

Finally, as of March 31, 2024, the registrar of companies can provide anyone who is interested with additional information based on an individual’s name and address, as long as it does not include any information that cannot be consulted under the act, namely, the home address of a person who provided a business address or the person’s date of birth. As a result, it will be possible to find out all of the businesses that a person is connected to by checking the Quebec business registry. This measure seeks to improve transparency. The non-disclosure of personal information, such as date of birth and home address, seek to protect privacy and prevent identity theft.

[English]

In conclusion, today we adopt an important amendment to the Canada Business Corporations Act. I hope — as it was the case in the past for the introduction of an internal registry in each company about beneficial ownership — that these important changes that we are going to introduce to the Canada Business Corporations Act will also be adopted by all the provinces and territories in order to ensure public transparency regarding beneficial ownership in relation to the corporations incorporated under their laws. I also invite them to do the same for partnerships, associations and trusts, like Quebec did.

Finally, I hope the other provinces will look at Quebec as an interesting model to achieve more transparency, not only for provincially incorporated entities, but also for all the other entities that are used to conduct business in their provinces.

Thank you. Meegwetch.

(On motion of Senator Martin, debate adjourned.)

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, pursuant to the order adopted December 7, 2021, I would like to inform the Senate that Question Period with the Honourable Bill Blair, P.C., M.P., Minister of National Defence, will take place on Wednesday, November 1, 2023, at 2:30 p.m.