Evidence of meeting #41 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was halifax.

On the agenda

MPs speaking

Also speaking

Stella Lord  Co-Chair, Canadian Research Institute for the Advancement of Women, Consortium of Women's Organizations of Nova Scotia
Jim Gourlay  Affiliated Member, Magazines Canada
Robert McKelvie  Chairman, Canadian Restaurant and Foodservices Association
Jan Westcott  President and Chief Executive Officer, Spirits Canada / Association of Canadian Distillers
Suzanne Bona  Representative, Nova Scotia Home Builders' Association
Alex Arseneau  Executive Director, New Brunswick Non-Profit Housing Association
Fred Morley  Senior Vice-President and Chief Economist, Greater Halifax Partnership
Jody Dallaire  Coordinator, New Brunswick Child Care Coalition
William Maes  University Librarian, Canadian Association of Research Libraries
Carolyn Earle  Co-chair, Face of Poverty Consultation
Nick Busing  President and Chief Executive Officer, Association of Faculties of Medicine of Canada
Jamie Ferguson  Chief Executive Officer, Sport Nova Scotia
Ross Creber  President, Direct Sellers Association of Canada
Riley Pye  Vice-President, Administration, J.D. Irving, Ltd.
Dan English  Chief Administrative Officer, Halifax Regional Municipality

3:45 p.m.

Chief Executive Officer, Sport Nova Scotia

Jamie Ferguson

It's both. That would include volunteers as well.

3:45 p.m.

Liberal

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

Would we be paying the athletes as well?

3:45 p.m.

Chief Executive Officer, Sport Nova Scotia

Jamie Ferguson

I think good strides have been made in terms of Canada's athletes. I think the most pressing issue we have here right now is participation.

3:45 p.m.

Conservative

The Chair Conservative Brian Pallister

Mr. Pacetti, your time is up.

We will continue with Mr. Del Mastro.

3:45 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you, Mr. Chair. I appreciate the opportunity.

Thank you, everybody, for your presentations today.

I wanted to start with Dr. Busing.

One of the things we heard yesterday is something I really am passionate about. It is training people to become doctors and medical professionals from rural parts of the country, because we do have a real deficit. In my riding we're only an hour and 20 minutes outside Toronto, but we have 22,000 people without a family doctor.

Can you talk a little bit about how we might encourage a little bit more participation from rural residents?

October 24th, 2006 / 3:45 p.m.

President and Chief Executive Officer, Association of Faculties of Medicine of Canada

Dr. Nick Busing

I personally, from my background as a family physician, share your perspective, and so does the association. What we're doing in medical school education is one of the direct ways of impacting on it, and most of the expansion in medical schools that I've alluded to is in distant campuses.

In British Columbia we now have a four-year training campus in Prince George. The University of Sherbrooke has a campus in Moncton. The evidence from the literature is that you are more likely to retain people from the environment in which you train them, so there is a definite move to train more in the communities. That's one very concrete example to address this very particular issue.

3:45 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you.

We're currently spending about 1.3% of the health budget on health research. Personally, I feel that we're on the cusp of some major breakthroughs, and one of the ways to limit how much we're going to spend on health care—a lot of people have made the argument that we're running toward a brick wall with the increases in the health care budget—and to really cap it is to invest in research and make people healthier.

How much should we be investing in health research?

3:45 p.m.

President and Chief Executive Officer, Association of Faculties of Medicine of Canada

Dr. Nick Busing

One quick fact, and then I'll give you a number. If you look at CIHR's funding compared with that of NIH, which is more or less a similar organization in the United States, and you adjust for population, CIHR has approximately one-third the funding that NIH has, adjusted for population.

We would support the proposal that's been brought forward by a number of organizations, that we need a minimum of $300 million in addition to the current funding for the CIHR.

3:45 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you. I appreciate that.

Mr. Pye, you spoke about CCA and the half-year rule. Personally, I agree with you that CCA is an area we can definitely look at for attracting greater investment that provides for stronger economies and more well-paying jobs.

On the half-year rule, as it's currently constituted, are you arguing for a full year's depreciation in the first year?

3:50 p.m.

Vice-President, Administration, J.D. Irving, Ltd.

3:50 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Just so that it's on the record, you might want to comment.

CCA is often misunderstood, quite frankly. People think you are giving tax dollars to corporations, but in reality you attract investment on which you later collect tax dollars, and once that asset is fully depreciated there is no write-off. Is that correct?

3:50 p.m.

Vice-President, Administration, J.D. Irving, Ltd.

Riley Pye

That's absolutely correct. The CCA is simply a percentage of the asset that's applied against income over time. The issue we have is that the extension on some of it is over extremely long periods of time, using declining balance methods that don't permanently write off an asset for up to 100 years, in some cases.

If you take a manufacturing plant, today the building that goes around a manufacturing plant is depreciated at the same rate as a downtown office tower, even though obviously that building has no other purpose than to be a manufacturing plant. And it's a 4% declining balance, which actually doesn't depreciate most of the building until after about 68 years. It's an extremely long period of time and doesn't even reflect current accounting standards.

3:50 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you.

3:50 p.m.

Conservative

The Chair Conservative Brian Pallister

We'll go to Mr. Wallace now.

3:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Thank you, Mr. Chairman.

Thank you for coming.

I have one question for Ms. Earle. You may or may not have thought about it.

One thing I've heard from seniors in my riding of Burlington in Ontario—and the poverty issue tends to be with seniors, to be frank with you, or at least the ones who are coming to see me—is that they're often getting clawed back if they find a part-time job, or a job of some sort.

Has your organization thought about your position on clawbacks and whether you would be encouraging us to review that issue?

I've also heard, even today, at 5.4% unemployment.... I know it's not the whole issue for poverty, but employment is part of it.

I'd like to know what your comments or your organization's comments are on what you feel about clawbacks for those who are on social assistance.

3:50 p.m.

Co-chair, Face of Poverty Consultation

Carolyn Earle

We wouldn't be strongly in favour of clawbacks.

Our practical experience here in Nova Scotia is where the question is whether the child tax benefit is clawed back or not. It's not helpful to people who are living in poverty to have clawbacks, no.

3:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Does your organization see it as part of the solution that some people be able to earn some money and still continue to collect social insurance until they get back on their feet, so to speak? Have you thought about that at all?

3:50 p.m.

Co-chair, Face of Poverty Consultation

Carolyn Earle

Yes, we would encourage people to be able to earn some money, because after all, this is the way they're going to be able to work themselves out of the poverty situation. The clawback should be one they can work with. Nobody wants to work and then have everything they've earned clawed back, certainly not.

3:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

I appreciate that.

Mr. Maes, in your report you say about 38% of research is done at the university level. I don't know whether that's somewhat correct. That means the majority is done by the private sector, then, or other organizations.

Is that an accurate statement, or does part of this include government that's not included in the 38%?

3:50 p.m.

University Librarian, Canadian Association of Research Libraries

William Maes

I'm not certain. Dr. Busing might be able to answer that better than I. I think part of it does not include government, I'm pretty sure, in some of the research that's done there.

3:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

My NDP friend asked the question about the eight years that we've allowed pharmaceuticals to keep their intellectual property before they have to share it with everybody else, so that they can make money on it.

Do you not agree there's a fair amount of research done at mainline pharmaceutical companies for health care reasons? Mr. Busing, you can answer that question; I don't know if it was asked to you or not.

3:50 p.m.

President and Chief Executive Officer, Association of Faculties of Medicine of Canada

Dr. Nick Busing

I agree there's a fair amount. In fact going back to the original questions, if you look at where research is done, the private sector in Canada does relatively less research when compared to many other jurisdictions, and there is larger support from our government. So I would argue for both, under those circumstances. Clearly we need more government support through CIHR and others, but we don't have the most robust private sector research either.

3:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Do you understand why that would be? Do you have any answers for me as to why?

3:50 p.m.

Conservative

The Chair Conservative Brian Pallister

Mr. Wallace, you'll have to cut it off at that point and conclude our questions with Mr. Savage now.

3:50 p.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Thank you, Chair.

I appreciate the opportunity to have the last question here in Halifax. We've had a very busy day, a good day, and some very good presentations.

As we say farewell to Nova Scotia and head off to Quebec for tomorrow, I want to specifically mention the 2014 Commonwealth Games. We had international visitors come in last week to check out Halifax as a spot. I think the reviews were all very positive.

There has been some issue about the Commonwealth Games and financing. In my view, we have to have confidence in the team we have in place: Fred MacGillivray, Scott Logan, and representatives of government.

I have a lot of faith that this would be very good for Nova Scotia, because I think the infrastructure that's left behind can be good for sport in Nova Scotia. I wonder, Jamie, or maybe Dan, if you could talk very briefly about the infrastructure and why this is good for Nova Scotia.