Bill C-368

An Act to amend the Food and Drugs Act (natural health products)

This enactment amends the Food and Drugs Act to provide that natural health products are not therapeutic products within the meaning of that Act and therefore not subject to the same monitoring regime as other drugs.

Food and Drugs Act

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Speaker, I am pleased to speak to Bill C-368, an act to amend the Food and Drugs Act, natural health products.

In a time when we are seeing more businesses close than open each month and when business insolvencies are skyrocketing, the last thing we need to be doing as Parliamentarians is putting higher costs and more red tape onto the backs of small business owners in the natural health sector.

I have heard from small business owners across Canada that the government has turned its back on them. They simply cannot keep up with the higher costs and burdensome red tape that the Liberals, with the support of the NDP, keep piling on them. According to Statistics Canada, more businesses closed than opened in December, and this is the fifth time in six months that this was the case.

On January 1, the government increased payroll taxes. In February, insolvencies rose 58.1% year over year, according to the superintendent of bankruptcy. In March, the senior deputy governor of the Bank of Canada called the lack of productivity in Canada's economy an emergency. On April 1, the government hiked the carbon tax by 23% and, just last week, the Canadian Federation of Independent Business reported a drastic decline in both short-term and long-term business competence, with both dropping by 5.4 points in their monthly business barometer.

What does all of that have to do with natural health products? Last spring, the NDP-Liberal government passed Bill C-47, which allowed Health Canada to regulate natural health products in the same way as therapeutic synthetic drugs.

Canadians depend on natural health products, which include vitamins, protein powders, probiotics and even fluoride-free toothpastes. Members can think of the young guy in the gym taking a supplement or the mom who uses eastern medicine and frequents the local Chinese herbal medicine shop. Those are the people Health Canada is going after.

As a British Columbian, I would be remiss if I did not mention that, at the same time the government is trying to prevent our teenagers from getting the supplement powder they want, it has legalized possession of fentanyl, which led to record deaths from illicit substances the very same year, over an argument about stigmatization in British Columbia.

After nine years, Canadians can see clearly that there is no common sense in the approach that the government is taking for natural health products. The changes made will reduce choice, increase costs for consumers and drive businesses, investment and product development out of Canada.

What is exactly changing for natural health products? First, Health Canada is implementing new regulations that treat natural health products the same as over-the-counter synthetic drugs, placing significant red tape on the small- and medium-sized businesses that produce and sell these products. This will result in fewer options for Canadians, pushing consumers to foreign online retailers, where consumers may have no idea where the product came from or what, in fact, is in it. Second, Health Canada is introducing new fees on licensing, manufacturing, labelling, importing and packaging that could cost a business more than $100,000. I looked up cost of those fees before my speech tonight. There is a licensing fee of over $20,000, a site amendment fee of close to $5,000, a class III product license application of up to $58,000 and a product license amendment of up to $23,000.

I have spoken to owners of health food and supplement stores in my riding and across Canada. They are terrified about what these changes will mean for their businesses and their customers. These new fees and regulations will mean fewer products at higher prices on their store shelves, potentially depriving consumers of the benefits they rely on for their health and well-being. For many stores, these changes could mean they close entirely.

Mike Bjørndal is a buddy of mine. We went to high school together. He left a stable job. He started a small business with a few other partners in the natural health food supplement industry. Mike told me directly that if these changes go through, they are moving their shop to America, reducing their taxes paid in Canada and shutting their doors. That is the consequence of what Health Canada is doing right now.

Then, there is the Vanderwall family. Mrs. Vanderwall runs a side business of supplements, which adds a little to her husband's income, just to get by with their seven kids. They rely on the current regulatory framework to pay their monthly bills.

The natural health product industry continues to introduce new ideas and improve products. However, higher licensing fees would discourage companies from investing in research and development, meaning fewer new products being developed or manufactured here in Canada. Natural health products play a crucial role in addressing unique health concerns that conventional medicine may not adequately address. Higher fees would invariably lead to fewer options, and consumers would be forced to turn to pharmaceutical alternatives or products that are not made in Canada.

I referenced the alarming statistics on business insolvencies earlier, and these changes are only going to make things worse in an industry that generates billions of dollars in economic growth in Canada. Given all that, I am very proud to stand and support the member for Red Deer—Lacombe's bill, Bill C-368, to repeal specifically sections 500 to 504 of Bill C-47 and to restore the status quo on natural health product regulations. As he mentioned in his speech, under the current rules, the government can already have a stop-sale order provision. It has seizure provisions and inspection provisions, and it already pre-authorizes the products on Canadian store shelves.

Health Canada's 2019 summary report, “Adverse reactions, medical device incidents and health product recalls in Canada”, highlighted that of the 96,000-plus adverse reactions filed, only 3.8% were related to the natural health sector. We know that these products are safe and that existing regulations are sufficient.

Since last spring, my office, like the member for Richmond Hill's, has heard from literally thousands of people who are concerned about what the government is doing and about the increase in red tape it is suggesting through these regulations. Instead of saying that we need these regulations because of the growth in the industry, I would point out that his constituents, like mine, are simply scared of more government overreach that is going to impact their economic well-being and the viability of their businesses.

No matter where one goes in Canada, on every main street, in practically every single shopping mall in our country, we are going to have a natural health or supplement-style store. These stores provide valuable products that keep Canadians healthy and that improve our mental and physical well-being. The last thing we should be doing right now is attacking those very businesses that millions of Canadians rely upon.

With that, I implore everyone in this chamber to support this legislation and to stand behind our small businesses and our wealth creators who provide real and adequate services for Canadians under the existing regulations.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Madam Speaker, I said earlier, in thanking the member of Parliament for Red Deer—Lacombe, that we support this legislation. We support Bill C-368 for a number of reasons.

I want to start by saying that, as are over 70% of Canadians, I am a consumer of natural health products. I use those products, as 70% of the population does. This includes vitamins and minerals, herbal remedies, homeopathic medicines and probiotics. Many Canadians use traditional medicines, such as traditional Chinese medicines or indigenous medicines, as well. There are a wide variety of products on the market.

As has already been stated, the reality is that we have a very robust natural health product sector that is carefully regulated in a way that ensures that the products are of good quality. That is why, when we look at the natural health product sector, we see so many Canadians consuming them and, at the same time, we see no side effects or downsides to the consumption of those products.

It is because the products are effective. If they are not, we stop using them. I have tried a number of products over the years. Some work really well; others, not so much. As consumers, we have that ability to distinguish and make sure we are choosing products that are appropriate for us.

This is not the pharmaceutical sector. These are not prescriptions that are given out. I have a family doctor who is very good at sometimes suggesting products that are not part of a prescription, but simply a suggestion. He has turned out to be right every single time about the kind of products we can take.

As an example, there is magnesium, which is a vitamin product. My friend from Red Deer—Lacombe mentioned it earlier as well. Some of us are on flights back and forth across the country, travelling 5,000 kilometres twice a week, every month. My colleague from North Island—Powell River is in the same situation. We are going around this planet every month in terms of the amount of time we spend on airplanes, getting back to our constituency to ensure that we are serving our constituents and then coming to Ottawa to do the important work we do here.

The reality is that, when we are doing this, we are in a cramped space. We need to ensure we take magnesium if we want to avoid leg cramps. My doctor was the one who suggested it, and ever since then, I have made sure that I take the appropriate product. It makes sense. I know you agree, Madam Speaker, even though you do not have as far to go when you go back to your constituents.

There is a wide range of products that are available and that make a difference. For consumers who find that their products just are not up to speed, they can change, try another product or simply decide they are not going to use something anymore.

What is already a flourishing and effective sector was diminished by the government incorporating into Bill C-47, an omnibus legislation, these clauses that simply put natural health products in a completely different situation. They are heavily regulated with costs, which a number of speakers have already indicated were absolutely inappropriate. Ever since I have been here, and certainly for years before that, the NDP caucus has decried omnibus legislation.

We saw this under the former Harper Conservative government. We see this under the current Liberal government. There are massive budget implementation acts that are 700 or 800 pages. Incorporated within them are really what I call poison pills. Certain clauses are put in there that ultimately serve as changes in legislation. However, then we can see they have regulations that are not part of Parliament's purview or the government's purview, and they can actually have detrimental impacts.

This was the case with Bill C-47. This was tried before with Bill C-51 under the Harper Conservative government.

The government tried to, very heavily and inappropriately, apply additional regulations to natural health products. That was pushed back on, but with Bill C-47, as omnibus legislation that led to the regulatory changes, we are in the situation that we find ourselves in now, and that has to change. That is why we are supportive of Bill C-368.

What it would do is provide for the kinds of hearings at the committee stage that would allow us to really determine the full extent of how the existing sector is regulated effectively and how detrimental these changes are, both those suggested in Bill C-51 a few years ago and those currently in Bill C-47, to the industry itself, which is a Canadian success story, as well as the impact on consumers who are using these vitamins, probiotics and homeopathic medicines effectively and potentially finding it more difficult to access these natural health products because of the actions of Health Canada and the actions of the government.

As such, it makes good sense to take Bill C-368, to put it in place, to have those hearings, and then to determine what is appropriate. It is very clear that those regulatory changes were absolutely excessive and have had a profound negative impact.

What we are saying is that the government, through Bill C‑47, is taking action with Health Canada without holding consultations and without conducting an impact study or a management fee study. As my colleague mentioned, this means that small businesses that market natural health products are now subject to a regulatory framework that is far better suited to the pharmaceutical industry.

The pharmaceutical industry is the most profitable industry in North America. It makes huge profits, which is why the NDP is pushing for pharmacare. In countries with pharmacare, pharmaceutical companies have been forced to lower their prices. The case of New Zealand, where the price of some pharmaceuticals has dropped by 90%, is often cited.

These pharmaceutical companies are extremely powerful. It makes no sense to establish a regulatory framework that puts small businesses, which are safely selling a whole line of products to smaller markets, on the same footing as big transnational pharmaceutical companies that are raking in huge profits. That is why the government's approach was inappropriate. It was inappropriate to include this small provision in omnibus legislation that is several hundred pages long. The consequences of this regulatory change are unclear, which has led to the outcome before us today.

It is clear to the NDP that this bill is important, because it was unacceptable for that provision to be included in an omnibus bill. It was unacceptable for the former Harper government to do that, and it is unacceptable for today's Liberal government to do the same.

Thanks to the bill introduced by my colleague from Red Deer—Lacombe, we have the opportunity to correct the mistake that was made and to really look at this provision's impact on the natural health product industry. We have the opportunity to determine the financial impact and the impact on consumers. We have the opportunity to see the full impact of the decision that was made last year to include this provision in an omnibus bill. The NDP has been very clear in this regard: We support the bill and we look forward to the important discussions that will take place in committee.

[Luc Thériault, Bloc, Montcalm, QC]

Madam Speaker, I will begin my speech this evening with two images. The first is that the cure is worse than the disease. The second is that we should not use a bazooka to kill a fly, but rather the appropriate tool, in other words, a fly swatter.

The government is being sneaky about it; that is the worst part. That is the story behind Bill C‑368. The government introduced this provision under the radar, in an annex to budget 2023, in Bill C‑47. From day one we have always made a distinction between natural health products and drugs, and rightly so. In the drug industry, in the pharmaceutical industry, people may have to bear the recovery costs, but they have 20-year patents. They are able to break even. What is more, there are no taxes on drugs.

The government makes a lot of money in taxes on natural health products so it can afford to pay for an inspection service that will guarantee the effectiveness and safety of natural health products. When we met in September, everyone agreed that consumers deserve to have effective products that are safe. Health Canada has to do its job in that respect.

What did the Auditor General's report reveal? First, in my opinion, there was a minor methodological problem. Rather than proceeding randomly, products, places and companies were targeted where problems were known to exist. Obviously, if problems are already known to exist, the audit will reveal a high percentage of problems.

There are approximately 91,000 natural health products. Of that number, 75 were analyzed in a targeted way, leading to the conclusion that Health Canada has not been doing its job to ensure product safety since 2014. That is what was found after checking the sampled products. Health Canada was caught with its pants down, so to speak. It played tough, tried to assert its credibility and brought out the big guns.

As legislators, we have always wanted to ensure that there is a balance when it comes to natural health products and access to those products, in order to guarantee free choice for consumers while also ensuring that when Health Canada approves products, it does its job after the fact and inspects those products. From 2004 to 2014, 53 recommendations were made. In September, when we heard from Health Canada representatives and the chief scientist, we realized that the answers were not credible.

I asked whether an impact study had been done on the industry, on small and medium-sized businesses, concerning the recovery costs required. I was told that it was based on Treasury Board guidelines. I imagine that the Treasury Board's main interest is getting its money's worth. What kind of service is it going to provide when, after all this time, and with all the taxes generated by the industry, it has not even been able to ensure an audit or any inspections throughout its mandate?

There are a few problems today. I asked the chief scientist how many adverse reactions there had been to natural health products in 17 years. I asked her to provide the numbers. We have yet to get an answer to that question. I also asked her what the numbers were for adverse reactions to pharmaceutical products. She replied that she had some numbers, but she still has not provided those either.

We know very well that, even though they are approved by Health Canada, pharmaceuticals can still sometimes have very serious side effects. However, that is no reason to discredit the entire industry. We are just doing our job and making sure that we do it properly. Contrary to what people might think and what the government tried to have us believe, the shell game that I am talking about, the one in Bill C‑47, happened in June, when we were voting on the March 2023 budget. Now we are getting letters and the public is starting to find out about this.

As legislators, we do not have any say over the regulations. We vote on laws. Regulations are then drafted on how the legislation should be applied. The problem is that we need Bill C‑368 to be sent to committee so that we can do our job as parliamentarians and look into the regulation that was brought in under which natural health products are now considered therapeutic products under Vanessa's Law.

It is very clear that we would not be where we are today if the government had been a little more transparent, if it had carried out the consultations it needed to and if it had worked with everyone to find some common ground to ensure that no harm would come to an industry that Quebeckers and Canadians have the right to have access to by choice. Natural health products are not forced on anyone through a prescription. No one is forced to buy them. When people choose to buy them, it is because, in a way, they have educated themselves.

It is true that they can pose risks, and it is also true that people have to follow their pharmacist's instructions. There are interactions, true. However, these interactions are between drugs prescribed by a doctor versus a pharmaceutical product that I am going to buy. We are not trying to trivialize anything, but just because there are a few bad apples in one industry does not mean that the entire industry should be discredited. That would undermine small and medium-sized businesses, which want to sell safe products. Their main motivation is people's health.

We would not be here if there had been a bit more transparency and if the people who came to testify in September had the courage to point this out to us. When they were told that their cost-recovery model was modelled on the pharmaceutical industry, they did not say one word, as if we would not figure out Bill C‑47's sleight of hand at some point. They took the entire model from the pharmaceutical industry and transposed it to the natural health products industry without allowing us to debate it. That is why there were two meetings on this. It was to get information about the problem.

There have been no more consultations so far. That is why we are going to vote in favour of Bill C‑368. We want to ensure that the legislator, who never has access to the regulations and can never review them through legislation, brings this to committee. There we will be able to work on it and find a balance regarding the government's claims that 88% of the 91,000 natural health products are deficient and have misleading labelling. This is a serious methodological bias that does not reflect reality, because in 2015, a randomized study showed that more than 90% of products were fully compliant. What happened in the meantime, then?

Maybe if the people at Health Canada did their job and carried out inspections, and maybe if they sent people their criteria, guidelines and information about where they want people to focus so that, during production, they can be certain that the product is okay, we would not be here today. The Bloc Québécois will indeed vote in favour of the bill.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, I am honoured to speak before the House today to discuss an issue of paramount importance to the health and safety of Canadians, which is the safety and the availability of natural health products, also known as NHPs.

In order to make the natural health products market safer for consumers and support Canadians in making informed choices, last year our government expanded Vanessa's Law to include NHPs. Doing this allows the government to act when serious health and safety risks are identified, such as the ability to require a recall if products are unsafe. Our number one priority is to keep Canadians healthy and safe. Bill C-368 would remove the government's ability to ensure the safety and the efficacy of these crucial health products. Passing this bill would mean that the government could mandate the recall of a tube of lipstick or a head of lettuce, but not a contaminated supplement. That is why the government will be opposing this bill.

I am aware that some members of the opposition may be supporting this bill. We look forward to it going to committee, if that is the case, to further cover the points I am about to cover. My remarks today will delve into the vital role that NHPs play in the lives of Canadians, the current landscape of NHPs and the need for greater oversight of NHPs to guarantee public safety.

Before proceeding further, I must highlight the exceptional engagement from the community of Richmond Hill on this matter. Our office has received over 1,200 communications, including emails, petitions, phone calls and pamphlets from constituents who are deeply concerned about the regulation and the safety of NHPs.

Since 2020, I have also met with the Canadian Health Food Association, which represents many NHP small business owners in my riding. One of those businesses is Platinum Naturals, whose team I met with this past February to hear their important feedback and their concern with respect to the impacts of the NHP regulations on their business. This overwhelming response from my constituents underscores a national discourse on the necessity of a regulatory framework that ensures the safety of NHPs and that supports small businesses operating in the industry, as well as respects the autonomy of Canadians in their health management practices.

As I delve into the implications of Bill C-368, I want to first focus on the vital role NHPs play in the lives of Canadians, followed by the current landscape of NHPs and, lastly, the need for greater oversight to guarantee public safety.

NHPs, which include vitamins, minerals, herbal remedies and daily-use products like toothpaste and sunscreen, are part of our integral health care practices. Their popularity is undeniable, with the number of authorized products in Canada skyrocketing from around 50,000 in 2004 to over 200,000 today. This demand underscores the critical importance of ensuring these products are not only effective, but also safe for Canadian families.

It is fundamental to understand that although NHPs are lower risk, they are not without risk, especially if products are contaminated, advertised in a misleading manner or used improperly. As much as NHPs offer potential health benefits, the risks associated with substandard or improperly labelled NHPs underscore the need for appropriate oversight.

I will now highlight the previous and the current legislative landscape of NHPs.

In Canada, NHPs are regulated under the Food and Drug Act, and specifically under the natural health products regulations established in 2004. A pivotal moment in Canadian legislative history was the enactment of the Protecting Canadians from Unsafe Drugs Act, also known as Vanessa's Law, in 2014. This introduced improvements in Health Canada's ability to collect post-market safety information on drugs and medical devices and to take appropriate actions, such as issuing a mandatory recall when a serious risk to health care is identified. However, NHPs were not yet incorporated under the scope of this law. As a result, for close to a decade, Health Canada's ability to take action on NHPs when health and safety issues occur has been limited.

This lack of equivalent safety power for NHPs has compelled Health Canada to depend on voluntary intervention by industry, which has not consistently worked in the past, to protect Canadians against real health and safety risks.

A significant shift in NHP regulations was marked by the adoption of Bill C-47 in 2023, which incorporated NHPs under the scope of Vanessa's Law. This empowered Health Canada with enhanced authorities to better protect consumer safety, such as by recalling unsafe products from the market and mandating label changes where serious harm to health is identified. This goes into my third point, which is the pertinent need for greater oversight of NHPs.

Between 2021 and 2022, Health Canada conducted inspections to assess the regulatory compliance of 36 NHP manufacturers and importers. All of the inspections identified compliance issues ranging in severity, with 15 of the 36 sites reporting issues serious enough to be considered non-compliance. Between 2021 and 2023 alone, there were also 100 voluntary recalls of licensed NHPs due to safety concerns, including contamination risks and the presence of harmful substances. These figures are not mere statistics. They represent potential harm to Canadian families and highlight the need to have stronger tools available to protect consumers from serious health and safety risks.

With all that said, it is important to consider the crucial need for oversight of NHPs as we consider the implications of Bill C-368, which could significantly alter the government's ability to regulate the safety and efficacy of these important products. As the NHP market has grown significantly over the years in Canada and continues to grow, we continue to support access to a safe NHP marketplace for Canadians to maintain and improve their health. The extension of Vanessa's Law to NHPs underscores this commitment.

As we navigate this conversation, let us prioritize the safety and trust of Canadians in their health product choices and ensure that the regulatory mechanisms in place are equipped to address the complexity of the NHP industry.

I am thankful for the opportunity to voice these considerations on behalf of my constituents in Richmond Hill and Canadians everywhere who rely on NHPs for their health and well-being.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

moved that Bill C-368, An Act to amend the Food and Drugs Act (natural health products), be read the second time and referred to a committee.

Madam Speaker, it is a pleasure to rise in the House today and talk about the changes that have been made to Canada's natural health product regime by the Liberals, with the support of the NDP and the Greens, in the budget implementation act, Bill C-47. For Canadians watching at home, what is Bill C-47 and what happened? Last year at about this time, Bill C-47 was passed in the House of Commons. This is a budget implementation act. It is supposed to only change the law insofar as what the budget policy of the day is talking about. However, somebody snuck a few clauses into the bill that changed the definition of “natural health products” to be the same as that of therapeutic products, such as drugs that require a prescription and have a drug identification number. That is the problem.

The underlying problem with all that, for folks watching at home, is that the industry was not consulted at all about these particular changes. As a matter of fact, I do not remember a single member of Parliament debating that during the budget implementation act debates. I do not remember it coming up at committee. Nobody from the industry was called to the committee to testify about these issues. It was only several months after the bill had passed that people began to wake up and realize that Health Canada was proceeding with its self-care framework, because it had these new-found powers under Bill C-47.

That basically goes back to Health Canada now trying to get care and control of natural health products to the same effect that it has with therapeutics. However, if we go back to 1998, the health committee in the House of Commons issued a report with 53 recommendations. It basically said, in no uncertain terms, that natural health products are not therapeutic drugs. I will remind everybody in this House that this happened under a majority Chrétien government, so there would have been a majority of Liberals on that committee at the time. That is the conclusion they drew, and that was the template going forward.

If we fast-forward to 2014, when Vanessa's Law was passed, there was a lot of debate and discussion at that particular point in time. Again it was reaffirmed that natural health products are not therapeutic products and are exempted from Vanessa's Law. Then, if we fast-forward to 2021, the Auditor General's report came out. The Auditor General was very critical of Health Canada's ability to properly manage certain aspects of the natural health product regime, particularly when it came to looking at post-market monitoring, testing samples of the products that were on the shelves and so on.

Most importantly, in that report, the Auditor General took the strange step of actually taking 75 products. These were not random products off the shelf in Canada; these were 75 products that were deemed problematic from the beginning. The Auditor General used that for a false narrative that somehow natural health products in Canada are unsafe. I can assure everyone that this is simply not true, but Health Canada, nonetheless, is using this information to claim that it needs the powers under Vanessa's Law. What would that entail? Health Canada would now have a self-funding methodology, so it could apply massive amounts of licensing fees and product registration fees to a very small industry, when we compare it to the size of the pharmaceutical industry. According to everybody in the industry, this would likely cause a massive loss of products and a lot of chaos. The primary impact, for Canadians watching at home, is cost.

For those who do not already know, people should know that Canada is already the most regulated natural health product industry in the world. As a matter of fact, Canada's brand on natural health products is better than that of the United States, Mexico and virtually anywhere in the world. Our products, manufacturers and exporters already had in place, prior to Bill C-47, the best regulatory reputation out there. We are a growing industry in this country. The industry is growing so fast, in leaps and bounds, because of the proper regulation that existed prior to Bill C-47, whether in terms of our producers, manufacturers or distributors, as I said.

However, under the new self-care framework, Health Canada started out with these new site licences. People might not know this, but manufacturers, packagers and distributors have to have something called a site licence from Health Canada. They cannot conduct business without a site licence. This was free up until Bill C-47; with the new proposed regulations coming into force, the initial site licence fee was going to be $40,000 per year. I think it has been negotiated with the industry down to $20,000 a year.

Just imagine if someone has a traditional Chinese medicine establishment, or is doing Ayurvedic medicine or homeopathy, and has to get a site licence fee of $20,000 every year. Everybody, basically, in those three parts of the natural health product industry has already said that this is going to shut them down. It is a very onerous fee. There would then be a new product fee. For any new natural health product that one wanted to bring to the market, it would be upward of $4,000 to get one's natural product number. If someone buys their vitamin C, they go to the store and there is a little natural product number on it. There are about 50,000 natural products registered in Canada right now. If someone is going to bring a new product to the market, it will cost them an additional $4,000 per product. In that particular year, if one has a site licence and a new product, one is looking at $24,000 before one even gets anything coming in for revenues.

If a person is practising traditional Chinese medicine, and if somebody needs a new remedy and the practitioner needs to import some of the ingredients from China or someplace else in the world, they are going to bring those products in and be paying thousands of dollars to get a product registered in Canada. One might be in the market to sell only 10 bottles to a client that has a need for a very specific thing. This is going to basically kill traditional Chinese medicine practice in Canada. Of course, the right-to-sell licence that Health Canada is bringing in for each product will be over $300 per product, so now one is dealing with thousands of dollars every year for this industry. It is going to kill innovation. It is going to stifle growth. It is going to basically drive the innovation and product development out of Canada.

What is the impact? The industry experts are saying that up to 70% of products that are currently on our shelves in Canada with a natural product number on them, and it is very important that they have that natural product number, will be likely disappearing in the years to come when Health Canada implements the self-care framework. Three out of five manufacturers, retailers, practitioners and distributors say that they will actually have to close their doors. We are basically losing approximately 60% of the industry if Health Canada goes ahead with implementing the cost recovery fee program for the natural product industry. The job losses are direct and indirect. People may be interested to know that right now about 54,000 people in Canada are directly employed in the natural health product industry. They figure that about 66% of those jobs will be negatively impacted once the self-care framework is brought in.

One would think that the Prime Minister, being the self-professed feminist that he is, would have actually done a gender analysis on the impact of Bill C-47 when it comes to natural health products, but there was no gender-based analysis. One might be surprised to know that over 80% of the consumers of natural health products in Canada are women, as well as 90% of practitioners, such as homeopathic doctors and so on. Well over 50% of the micro-businesses are female-owned in this particular industry, and 84% of direct-to-customer sellers are women. This is very important. It is a very important industry to women in Canada, and we are going to lose these businesses.

It is too bad, because we are already, like I said, one of the safest and most well-regulated environments around the globe when it comes to natural health products. Over 80% of Canadians, according to the most recent information that we have, are users of natural health products. Of those 80%, when one asks them how satisfied they are with their natural health products, over 99% say they are very confident that the natural health products that they acquire from the shelves in Canadian stores are safe and healthy and work for them. That is true. One will find that across the country. I have been travelling across the country and can say without any hesitation whatsoever that Canadians are very concerned about losing access to the only part of their health care system that they have care and control over, which is natural health products.

For those who are interested, Deloitte has done an audit on some of the findings that Health Canada has been using. It has claimed that over 700 people over a two-year period were adversely affected by natural health products, but if someone actually digs down into the data, and it is Government of Canada data, they will find that only 32 people over three years were actually affected. Unfortunately there were three deaths, but if one takes a look at the other factors associated with those deaths, all of those people were also taking prescription drugs at the same time. There is a lot more misinformation out there right now that is attacking the industry unnecessarily.

We certainly should not be making a hasty decision in this place by bringing legislative changes in the back door like we did with Bill C-47.

I want to talk a little about consumer protection because I think this will be the argument the government will use. Members may also not know this, but if one buys products online from outside of the country, those are not necessarily regulated in the same way. In fact, I can guarantee they are not regulated in the same way they are in the Canadian marketplace. They will not have that natural product number on them.

One can buy a 90-day supply. Right now, Health Canada allows one to buy a 90-day supply. It can be shipped in with Amazon, or any number of these direct-to-customer purchasing apps or opportunities out there, and it will all be unregulated by Health Canada. They very likely will not have a natural product number on them.

These are marketed to Canadians on social media, such as Facebook, and through other types of marketing methods, and Canadians are buying them. Umary is an example. It is made in Mexico and marketed as a natural health product to seniors. Seniors are buying this product up, but it contains diclofenac, which is a prescription drug. This is the problem, not the industry within the borders of Canada.

Health Canada, in its attempt, would do the opposite of what its intended results. It is going to drive the businesses through regulatory burden costs and overhead. Businesses are going to say they can go operate in Mexico or the United States far cheaper than they can operate in Canada. They are going to be down there in the same environment selling direct-to-customer over the border with 90-day supplies. Health Canada is going to lose care and control over the quality assurance Canadians have come to depend on. It is not good for consumers at all.

I should let people know who are watching Health Canada already has incredible powers. We are going to hear some members of Parliament stand up in this place to debate this bill and say that Health Canada has no mandatory recall when it comes to natural health products. However, I will list some of the powers one might not know Health Canada already has. It already has the ability to issue a stop sale, and it does that from time to time. A stop sale order will go out, and that means that all that product on all the shelves in all the stores in Canada has to immediately stop being sold.

Health Canada does have the power, if it chose to implement it, for personal use import at the border. If it wanted to take a look at what was coming across the border, it would be a great place for Health Canada to start looking for opportunities to keep Canadians safer. It has the ability to seize. It has seizure provisions already in the legislation and regulations, which means it can seize any product from any of the points along the line, from manufacturing through packaging through distributing at the retail stores. It already has seizure capabilities in the law and regulations.

Health Canada can revoke the site licence for any manufacturer, any packager, any labeller or any importer. It already has the power to revoke that site licence. It has the ability to mandate a label change. If there is a health concern brought up from the Canadian public, it can investigate and then can tell the manufacturer or the labeller they need to change the label to reflect some health concern or some other information. It can do that.

Health Canada can inspect any site that has a site licence. It can go automatically into a manufacturer. It can go into a producer anywhere where a site licence is required. It can go in and conduct an audit anytime it wants. It can inspect any product off the shelf. It can take it, send it to the lab and do a verification check. It approves every natural product number being sold on the shelf right now. Nothing is sold without its pre-authorized consent. As well, it can revoke a natural product number anytime it wants.

That is already an immense amount of power. It does not need more. When we hear about the mandatory recall, that is simply a red herring. Health Canada already has an immense amount of power.

When something is defined as a therapeutic drug, that also subjects them to $5-million-a-day fines. There is nobody in the natural product industry who can afford a $5-million-a-day administrative penalty fine. Health Canada would unilaterally, without an ombudsman, without any process to appeal, have the ability to basically shut this industry down at its earliest whim or convenience. It is already causing a chill in the industry. It is driving businesses away from Canada.

We need to stop this. Canadians need to call their Liberal MP, their NDP MP or their Green Party MP and tell them to change how they voted on Bill C-47. They need to get them to vote in favour of Bill C-368. Let us get this bill to committee. Let us have an actual proper consultation with the industry. If there is something that needs to be changed, we can at least have an honest conversation and Canadians can be involved in a transparent way.

Passing this bill through the back door, tucking it into a budget implementation act, is shoddy law-making and shoddy policy-making. It flies in the face of everything we have done to this point. I encourage my colleagues to vote in favour of Bill C-368.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

moved for leave to introduce Bill C-368, An Act to amend the Food and Drugs Act (natural health products).

Madam Speaker, I rise today to introduce my private member's bill, which would amend the Food and Drugs Act. This bill would reverse the changes made by the NDP-Liberal government in its omnibus budget bill, Bill C-47, earlier this year. It would return natural health products to the status quo, ensuring these products are not classified as therapeutic products, like synthetic drugs, and are therefore not subject to the same regulatory regime as other drugs.

Previously, natural health products were classified separately from pharmaceuticals due to the minimal risk they pose to their users. However, after the NDP-Liberal coalition passed Bill C-47, bureaucrats in Health Canada can now implement their self-care scheme, which, according to the Natural Health Products Protection Association, will reduce choice, increase costs for consumers and drive businesses, investment and product development out of Canada.

The existing regulations already keep Canadians safe. As such, I urge all members in this House to listen to their constituents and the overwhelming amount of correspondence they receive and vote for this bill.

After eight years, enough is enough. It is time to undo the damage done by Bill C-47, kick out the gatekeepers and save our supplements and vitamins.

(Motions deemed adopted, bill read the first time and printed)