Finance Committee on Oct. 16th, 2006

[Valerie Bell]

There is a small amount of money coming from them, and there are also a number of other small incentive groups, but the research from Health Canada that Health Canada had devoted to natural health product research specifically actually had to be absorbed into their operating budgets in the last two weeks, because they were operating on Governor General's warrants and needed that in order to keep--

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

I understand, but how is research money determined? How does the Canada Revenue Agency determine that it's a health product and they don't think it should be deductible because they prefer people taking hard drugs, or soft drugs, or drugs made by pharmaceuticals? How is that decided? If it's determined to be a health product, why would that be in question if it leads to some type of remedy?

[Valerie Bell]

We are not receiving the current funding in order to do the amount of research that needs to be done. Certainly, where there is a great dearth, or empty area, is in health care economics research into this particular area as well.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Is there a reason for that? Is there scientific proof that your products are not any better than pharmaceutical products?

[Valerie Bell]

Our research shows that our products are every bit as beneficial, if not more beneficial, and as a matter of fact--

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

I don't mean to cut you off, but time is limited. So you're not doing as good a job marketing as some of the pharmaceutical....

[Valerie Bell]

We've just put our regulations in place in the last two years. We are beginning to focus on this as a key issue for our industry in the development of innovation.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Thank you.

I have just a quick question, Mr. Van Every. I don' t want to make you feel left out. In your presentation, you were saying the horse racing industry is closing tracks. I have my own theory, but I'll let you answer. Why are they closing down?

[Michael Van Every]

It's partly because land costs got very expensive in certain cities. Secondly, the quantity of horses available to race is declining. You need a certain number of horses in order to maintain a racetrack.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

It has nothing to do with interests, with the fact that people have other things to do, or with the fact that you're one of many in the entertainment industry? Are those things not factors as well? I don't know if putting more money in the horse racing industry will solve anything.

[Michael Van Every]

What we're expecting it to do, first of all, is maintain and grow the industry. It will maintain the employment we have. More importantly, it will increase the quality of the horses being bred. This is a risky business. We see the quality improving dramatically in the United States. We see more American-bred and -owned horses racing in Canada and taking purse money out of this country. It's a shame.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Thank you, Mr. Van Every.

Mr. Yakabuski, quickly, how able are people to get insurance, when we're talking about car insurance and house insurance and home insurance? I'm not sure if there's been an increase or a decrease in people's being eligible. Do you face the same situation as that for life insurance?

[Mark Yakabuski]

I would say that over the last three years in particular, as the industry has returned to an acceptable level of profitability, affordability of insurance in Canada is improving substantially. Essentially, most small and larger businesses would have seen stable or declining rates over the past twelve months. House insurance costs, in most parts of Canada, are of the same order, and we have seen a tremendous improvement in the availability of auto insurance in a number of provinces in Canada.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Are people eligible? Are people getting car insurance?

[Mark Yakabuski]

Are more people getting car insurance?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Yes. For somebody who's had two or three claims--

[Mark Yakabuski]

Yes. In Ontario, we had a quarter of a million people who were in what's called the facility association in 2003; that's the insurer of last resort. Today, there are fewer than 30,000 cars in facility association in Ontario.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

That could be because they are no longer--

[Mark Yakabuski]

There has been a substantial improvement in availability.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

--insurable or because they've fallen off--

[Mark Yakabuski]

No, far from it. In fact, the number of cars insured in Ontario has also improved.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

That's what I want to hear.

[Mark Yakabuski]

The number of complaints that we have gotten with respect to non-availability of insurance, particularly in the province of Ontario, has plummeted over the past two and a half years, and I'd be happy to share our stats in that regard.

[The Chair, Conservative, Brian Pallister]

Thank you very much, sir.

I'll just let you know, panel, you're going to hear bells ringing and lights flashing in a moment, and that's not a fire alarm. That just means we're being called to a vote. We'll continue with two more questioners, despite those distractions.

Mr. Dykstra, you have five minutes.

[Rick Dykstra, Conservative, St. Catharines, ON]

Thank you, Mr. Chair. I thought you were actually going to say that it's because I was going to be asking the next question.