Sitting 123 — May 27, 2026

The sitting was dominated by debate on the second budget implementation bill, Bill C-31, and an opposition motion to cancel federal taxes on gas and diesel. The central political argument pitted Conservative accusations of reckless Liberal spending and inflation against government claims of building the economy through major project announcements and social programs.

The opposition motion on gas and diesel taxes, debated as a supply day item, would have cancelled all federal taxes on those fuels and the Clean Fuel Standard. Conservatives argued it would save a family of four $1,200 per year and provide real relief from 28% gas price inflation. The government opposed it, arguing it had already cut the consumer carbon tax by 18¢ per litre and the excise tax by 10¢ per litre, and that the Conservative plan would blow a hole in the fiscal framework. The motion was defeated on a recorded vote.

Bill C-31, the Budget 2025 Implementation Act, No. 2, was debated at second reading. The 330-page bill implements budget measures including the creation of a Defence Investment Agency, amendments to the Canada Transportation Act to clear air travel complaint backlogs, and changes to the Excise Tax Act. Conservatives opposed the bill as the "costliest budget outside of COVID," arguing it adds layers of bureaucracy to defence procurement and does nothing to address affordability. The Bloc Québécois raised a point of order arguing that division 17 on air passenger complaints should be voted on separately because it is unrelated to the budget, but the government argued it was announced in budget documents. The NDP focused criticism on the government's use of section 107 of the Canada Labour Code to end strikes. The member for Laurier—Sainte-Marie delivered a farewell speech announcing his resignation later this summer, receiving tributes from all parties for his environmental work.

Oral Questions followed three main themes. Conservatives hammered the government on affordability, citing April inflation figures showing gas up 28%, food up 3.8%, and rent up 3.6%, and demanding the government support their motion to remove all fuel taxes. The government replied by pointing to its cuts to the carbon tax and excise tax on gas, and listing major project announcements including a $30-billion LNG deal with Europe and a Saab-Bombardier surveillance aircraft partnership creating 3,000 jobs. A second theme was immigration and public safety, with Conservatives alleging that 74,000 failed asylum claimants still receive health benefits and that the government has lost track of 28,000 of them; the minister replied that asylum claims are down 59% and that Bill C-12 will save $400 million annually. A third theme was the government's climate record, with the Bloc Québécois accusing the government of "climate betrayal" by scrapping the carbon tax and emissions caps; the environment minister insisted the government is "united" in fighting climate change through electrification and nature protection.