Sitting 126 — June 1, 2026

The sitting was dominated by debate on Bill C-31, the second budget implementation act for the 2025 budget, and by a sustained Conservative attack on the government over new Statistics Canada data showing Canada’s economy had contracted for two consecutive quarters, which the opposition called a recession. The central political argument was whether Canada’s economic performance was uniquely poor among G7 nations or a consequence of the U.S. tariff war and global headwinds. The government also moved time allocation to limit further debate on the bill.

The government moved a time allocation motion on Bill C-31, limiting second-reading debate to one further sitting day. The minister argued the bill was needed to accelerate defence investment, housing and clean-energy projects, and that the opposition had already had weeks to read the 330-page text. Conservatives and the Bloc Québécois objected that the bill contained 16 divisions amending dozens of statutes, that a requested technical briefing from Finance officials had been delayed for three weeks, and that only about three hours of debate had been held. The Bloc member for Mirabel also noted that the Speaker had ruled that part 4, division 17 of the bill (air travel complaints) was not sufficiently connected to the budget and would be subject to a separate vote, but that the Speaker could not refer it to a different committee. The time allocation motion was later adopted.

During debate on Bill C-31 itself, Conservatives argued the bill did nothing to lower grocery prices, reduce housing costs or make streets safer, and that it created a new Defence Investment Agency with sweeping ministerial powers to sole-source contracts, buy shares in corporations and spend up to $1 billion without independent oversight. The government replied that the agency would streamline procurement, help meet NATO spending targets and support Canadian industry, citing investments in shipbuilding, aerospace and critical minerals. The Bloc Québécois criticized the bill for expanding subsidies to oil and gas, allowing hydrogen produced from methane to be classified as clean, and weakening pesticide oversight. The Green Party leader warned that changes to the Pest Control Products Act in both Bill C-30 and Bill C-31 would allow cabinet to override a minister’s decision to ban a dangerous pesticide and would remove mandatory 15-year re-evaluations. The NDP did not speak during the main debate but had earlier presented petitions.

Oral Questions was dominated by a single theme: the new GDP data showing Canada’s economy had shrunk for two consecutive quarters. The Conservative leader and a dozen of his MPs asked repeatedly why Canada was the only G7 country in a recession, citing 112,000 jobs lost in the first quarter, rising mortgage delinquencies, record food-bank use and the highest household debt in the G7. Government ministers answered that Canada was the economy most integrated with the United States and was facing an unjustified trade war, that non-U.S. exports were growing, that foreign direct investment remained strong, and that measures such as the groceries and essentials benefit, the suspension of the fuel excise tax and investments in defence and infrastructure were supporting Canadians. The Bloc Québécois pressed the environment minister for data showing how the government could still meet its climate targets after cancelling the carbon tax, approving new pipelines and scrapping the oil-and-gas emissions cap; the minister cited strengthened methane regulations and investments in clean electricity. The NDP asked about a police co-operation MOU with China, and the foreign affairs minister said Canada had raised human rights and transnational repression concerns with Beijing.