Plus the municipality as well.
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.
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.
2:25 p.m.
Senior Vice-President and Chief Economist, Greater Halifax Partnership
I believe in Vancouver most of the municipal contribution comes later, in policing and security and those kinds of measures. I guess I'm not on the committee, so I can't speak for them, obviously.
2:25 p.m.
Conservative
The Chair Conservative Brian Pallister
I have to cut you off there, Mr. Savage. I said one question and that's five. I don't want to be taken by the next panel as a soft touch here, so we'll continue and conclude with Madame Ablonczy.
2:25 p.m.
Conservative
Diane Ablonczy Conservative Calgary Nose Hill, AB
Being a great reader, I am interested in your dilemma on magazines.
Do you know what has motivated Canada Post to take the position they took? That's an awful big whack all of a sudden.
2:25 p.m.
Affiliated Member, Magazines Canada
It's not all of a sudden. We've seen costs double in the last eight years. This comes on top of some very significant increases that are impossible to absorb, because they're so massive.
It would appear at a fundamental level that Canada Post's new mandate is profitability. Canada Post's old mandate, which was to allow Canadians across this vast country to communicate with one another, has taken a back seat.
2:25 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you.
You're referring to a new and an old mandate. I'd just like to put a timeframe on that. When do you think that new mandate of profitability started?
2:25 p.m.
Affiliated Member, Magazines Canada
I'm not in a position to answer that. I would say when Canada Post was challenged to fix its books. I'm sorry, Mr. Chairman, I cannot put a date on that.
2:25 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you. Very good.
Thank you all for your fine presentations and your forthright responses to our questions. We appreciate your presence here very much.
I will invite the next panel to make their way forward.
We will suspend only briefly and recommence in a moment.
2:30 p.m.
Conservative
The Chair Conservative Brian Pallister
We will recommence with our second panel. Welcome, all, and thank you very much for being here.
I will invite each of the panellists to make some eye contact with me occasionally as you're doing your presentation. I do not want to cut you off at five minutes, but I am forced to. So I will give you an indication that you have one minute remaining or less, and then I'll cut you off. That's what the committee has told me I have to do. That's in order to allow the committee members to ask you questions and for you to engage in a dialogue with the committee members here today.
We are the House of Commons finance committee. As you know, we are empowered with the responsibility of preparing recommendations to the finance minister for the upcoming federal budget. We appreciate very much the information you've provided us with already. We look forward to the further information you will give us in your presentations and your responses.
We will commence with the representative from the Canadian Association of Research Libraries, Mr. William Maes. Welcome, sir, and take it away.
October 24th, 2006 / 2:30 p.m.
William Maes University Librarian, Canadian Association of Research Libraries
I would like to thank the chairperson for allowing me the opportunity to speak at the committee today. I'm particularly glad to appear, given that one of the committee's principal goals is to look at ways of making Canada more competitive. This is a goal I firmly support, and I think research libraries play a significant part in achieving this objective by the information services and resources they provide directly in support of research and innovation.
The Canadian Association of Research Libraries represents Canada's major academic research libraries, as well as public institutions such as the Library and Archives Canada and the Library of Parliament. Our members' collections form the backbone of Canada's intellectual holdings in all disciplines. Collectively, our members spend more than $500 million in new acquisitions.
Competitiveness and success are built upon a dynamic research sector, which in turn must rely upon access to information that is current and comprehensive. That's why, in 2004 alone, 40% of research activities took place in Canada's universities, which were fully supported by Canada's university research libraries.
The government has already recognized the importance of economic research by increasing funding to a number of grant councils and research programs in its budget of 2006, something that we applaud.
They are all important steps forward, but it is important also to look at other steps that need to be taken so that Canada's research institutions can best compete internationally.
I will focus on three of these today: the indirect costs of research program, the GST, and the new challenges of e-learning.
Concerning the indirect costs of research program, increases in funding to granting councils such as NSERC in the last budget ensure that Canada's strong research foundation reaches its full potential. But beyond supporting direct costs of research in Canada, we must consider their related indirect costs, particularly to Canada's research libraries. Whenever there is an increase in direct research grants, there is a corresponding increase in indirect costs. The indirect costs of research program helps offset these, especially at research libraries. Funding, for example, is used to expand access to electronic resources and journals and databases critical to all research, as well as acquiring the technologies that deliver these resources efficiently and quickly for our researchers.
Previously, the indirect costs of research program covered about 25% of the overall cost of research grants to universities. New investments in the last budget have raised that figure to 26%, but for Canada to be internationally competitive, we need to reach 40% coverage.
On the GST, presently university libraries receive a full rebate on the GST they pay on printed books and on subscriptions to most print magazines and periodicals. This means the budget goes further, resulting in more and new materials on the shelves. Nowadays, however, scholarly materials overwhelmingly are being delivered in an electronic format, to the point that now in fact we spend more on electronic journals and resources than we do on print. However, such materials are not eligible for the GST rebate. There is no apparent justification for this. An electronic journal varies only from the print edition in medium, and the funds freed up by rebating electronic materials can and should be used to purchase other materials. Here, a minor change in definition can have a major effect.
On e-learning, as Canada moves towards a knowledge-based e-economy, electronic or e-learning will become more and more important to serve the needs of learning communities. E-learning is a critical component in Canada's overall capability to sustain economic development and foster a cohesive civil society. It provides the ability to access and deliver high-quality educational materials, anywhere, at any time. Beyond the university, it helps Canada's scattered population upgrade professional and trade qualifications, as well as focus on lifelong learning.
A national e-learning strategy should be a natural Canadian priority. That's why we're pleased to be working with the Canadian Council on Learning to develop one. One of Canada's strategic goals should be to compete internationally with countries that are implementing strong national plans in this area.
I have two important closing notes that will be of interest to parliamentarians. First, CARL members are spearheading an exciting new project, called the Alouette Canada open digitization initiative, which brings together libraries, archives, museums, and other interested communities to present our cultural heritage, documents, and artifacts online to our citizens and to the world. Most importantly, Alouette Canada provides for ensuring access to that heritage. This is a project that will impact your constituents and is worthy of public support.
Secondly, I would be remiss if I did not highlight Mr. Lunn's recent decision to keep producing printed topographical maps and to keep the Canada Map Office open. This decision will mean that Canadians can continue to have access to printed maps that are critical for safety in so many traditional Canadian pursuits, such as hiking, canoeing, boating, and tourism.
2:35 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you, Mr. Maes.
We'll continue now with the Face of Poverty Consultation. Ms. Carolyn Earle is with us. Welcome. Over to you.
2:35 p.m.
Carolyn Earle Co-chair, Face of Poverty Consultation
Thank you.
I appreciate this opportunity to put forward some of our ideas.
The Face of Poverty Consultation is a group of representatives from various communities in the Halifax regional municipality who have been working together for some four years doing advocacy and education around poverty issues that are causing so much suffering in our community and our country. People knocking on doors and asking for help are familiar to all of us. Canada is one of the richest countries in the world, and it ranks 18th among 23 industrialized countries in terms of child poverty. Approximately 112,000 Canadians died in three wars and peacekeeping missions. Now, ten times that number, over one million children, are engaged in a war on poverty here in Canada. Over 1.7 million Canadians live in substandard or unaffordable housing, and at least 14,000 Canadians are homeless. If nothing else, these are very shocking statistics, and they represent people who live right here in Canada.
A fundamental tenet of each of the face groups represented in the Face of Poverty Consultation is “love thy neighbour”. One of the ways we do this is to attempt to ensure that all our neighbours have shelter, food, income, health services, access to education, and employment--the very things we desire for ourselves. In our years of study and experience together, we have recognized again and again that persons living in poverty do not have these basic necessities.
Poverty goes far beyond the lack of daily needs. It forecloses choices and options that many take for granted. It deprives people of experiences that contribute to meaning and human development. We have only to look at recent situations in France, Australia, and in some communities here in Canada to realize the damage that poverty can do to a society. It is our contention that something needs to be done about poverty, right now.
The United Nations Covenant on Economic, Social, and Cultural Rights states that all citizens have a right to adequate shelter, food, income, health, and employment. Canada is a signatory to this and other UN documents of a like nature. We know that in May of this year, a United Nations report expressed concern about the high poverty rates in Canada. It recommended that Canada take all possible measures, to the maximum of available resources, to ensure the enjoyment of economic, social, and cultural rights for all. In fact, it did say that issues of hunger and homelessness should be termed a “national emergency”.
Reports and studies from other sources, as diverse as the Toronto Dominion Bank, the National Council of Welfare, and the national child poverty report card, come to the same conclusions.
People are poor. People do not have enough money. This was one of the first comments made by a young mother we spoke to in a family resource centre. If people cannot earn enough money for themselves, then they are dependent upon others to help them with the necessities of life. Governments are agents who can make changes in this situation. Churches and other community agencies have supplied band-aids for citizens, when what is required is bold innovation by governments. We believe it is a human right to be free of poverty. Polls consistently indicate that Canadians value their safety net and that they want to help their fellow citizens to have a good life.
Politicians have often told us that they need to hear from citizens before they try to bring about changes to the system. Volunteers from all walks of life, old and young, give countless hours of their time, energy, money, and goods to help those in need. This seems to indicate that citizens do support any and all efforts to balance the inequalities in our society.
We are not asking for a shrinking of the federal government. We are asking for better government, government with accountability to and for all its citizens. We are asking for cooperation and negotiation among the various levels of government.
More specifically, we find ourselves able to support the recommendations made by the Citizens for Public Justice. They are calling for a poverty reduction strategy for Canada that would include, among other things, raising the child tax benefits—
2:40 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you, Madam Earle.
We will move on now to Nick Busing, here on behalf of the Association of Faculties of Medicine of Canada. Welcome, sir.
2:40 p.m.
Dr. Nick Busing President and Chief Executive Officer, Association of Faculties of Medicine of Canada
Thank you, Mr. Chair, ladies and gentlemen. I'm Nick Busing, president and CEO of the Association of Faculties of Medicine of Canada.
My association, AFMC, represents the 17 faculties of medicine in Canada. We have a tripartite mission: undertaking health research to improve the lives of Canadians, educating future physicians of Canada, and providing clinical care in all settings, with a focus on the tertiary and quaternary environment.
Today I wish to focus on health research and on health human resources that are required for our mission and for the country. We can measure our prosperity and our competitiveness by looking at the research and developments taking place in Canada. The benefits of health research are seen across the country, in direct impacts upon the health of all Canadians, in identifying system-wide improvements to the delivery of health care, in creating economic benefits to the training of knowledge workers, and in providing widespread employment opportunities. The benefits of health research accrue over time and can only occur in an environment of sustained and long-term investments.
In recent years we in Canada have made impressive gains. We are equipping our major research institutions for the future through the CFI program, in partnership with the provincial governments. We have recruited and retained an impressive array of Canada research chairs to take advantage of our array of investments in infrastructure. In fact, many recruited from abroad are helping to reverse the brain drain. Now our tri-council funding agencies have the ongoing responsibility to provide the operating grants to enable our researchers to fully capitalize on the outstanding facilities Canadians have provided to enable research across the spectrum of health care issues.
We're now in the interesting position where from a research perspective our place in the competitive global economy has improved, yet to both sustain this competitive position and improve upon it, we need to address the disparity between the facilities and researchers and the funds essential to their daily operations.
Canadians do not spend up to a decade investing in research, then flatline the operational funding base and expect to take full advantage of the opportunities created. If we are to address the number one concern of Canadians—an improved and sustainable health care system—AFMC along with other major health research partners have identified the need for increased funding to all tri-council agencies, with an emphasis on funding for CIHR as the number one issue for success in maintaining our competitive edge.
Today we are recommending that the federal government commit to a substantial increase in funding to CIHR to maximize and build on our gains to date and to allow Canada to become even more competitive in our global environment.
The second area we wish to address is that of health human resources. Data is mounting that we are short of nurses, physicians, and other health care workers. Yes, we can make system changes, such as working inter-professionally, extending hours of access to MRIs, changing scopes of practice, modifying payment practices, and introducing new models of practice—and so on. However, these reforms still require health care workers, and we do not have enough.
I'm sure you all know the statistics regarding physicians: we rank 21st among OECD countries; the average physician is about 49 years of age; there has been a 20% increase in the proportion of physicians in their fifties. Surveys show millions of Canadians are without a family doctor. The problem is not only with the number of health care providers, such as physicians. The problem starts with the lack of a coordinated national mechanism to understand the type and numbers of providers we need, in the face of all the system changes I have just referenced.
For years now, organizations have recommended a pan-Canadian planning process for HHR, with adequate funding. Recent sector studies and the Canadian Medical Forum have supported this.
If we really want to make system changes in how and where we deliver care, we need to understand far better the role and function of all health care providers and create a flexible, inter-professional workforce. It requires data collection, analysis, research, comparative study, forecasting, and recommendations. It would be a modest investment that could launch this essential planning tool for Canada, and we ask you to invest in it.
Thank you.
2:45 p.m.
Conservative
The Chair Conservative Brian Pallister
Very good, sir. Thank you for your presentation.
We continue now with the Sport Nova Scotia representative, CEO Jamie Ferguson. Wecome to the committee.
2:45 p.m.
Jamie Ferguson Chief Executive Officer, Sport Nova Scotia
Thank you, Mr. Chair. Thank you for the opportunity to take part.
As a point of information for the committee, in addition to my role at Sport Nova Scotia, I am also the chair of the Canadian Council of Provincial and Territorial Sport Federations.
I would like to speak very briefly about Sport Nova Scotia and then discuss a couple of Canadian sport issues prior to presenting three recommendations that we think will be critical for sport in our country.
Sport Nova Scotia is a federated organization made up of over 60 provincial sport organizations and more than 170,000 registered members across the province. As the numbers show, sport affects a large segment of our province's population. This situation is true not just for Nova Scotia, but across the entire country. In fact, we know that 55% of Canadians take part in sport in some capacity.
In addition, sport represents approximately 2% of jobs in Canada and 1.2% of the GDP. One of the reasons so many Canadians are involved is because of the broad benefits that sport delivers. In Nova Scotia the range of these benefits can be illustrated by the partnerships that Sport Nova Scotia has developed.
In government alone, we've worked with the federal Department of Justice and with Human Resources and Skills Development Canada. At the provincial level we've worked with the Department of Health Promotion and Protection and the Department of Community Services to deliver programs.
The most commonly cited benefit for sport is, of course, health. We often hear of the many health benefits that are provided, including decreasing the risk of heart disease, stroke, colon cancer, and type 2 diabetes. However, it is important that we realize the broader role that sport plays in our society. When we consider statistics that tell us that active children perform better in school and active people are less likely to suffer from mental illness, it becomes obvious that sport has the ability to cut across many different spectrums.
Given the scope of our work at Sport Nova Scotia as a provincial federation, I think it is fair to ask what the relevance of the federal budget is to us. We think we'll show that it has a very significant impact; we think that impact will grow over the coming years. That's why we made the effort to be here today.
In recent years federal, provincial, and territorial ministers approved the Canadian sport policy and the long-term athlete development model. Both are geared towards improving the quality and delivery of sport programs at every level for all Canadians. Most recently, the road to excellence program has also been launched.
The significant point for all these programs is the large role that provincial and territorial sport organizations will be asked to play in order to make these programs successful. A large segment of the Canadian sport policy is enhancing participation, which is geared to help us meet our goal of a 10% increase in sport participation; the long-term athlete development model also includes significant participation and recreation components. In addition, the new road to excellence program specifically cites the key role of provincial and territorial sport federations across Canada.
The tie-in from these programs to the federal budget will determine whether Canada will be successful in achieving these goals. Currently the provincial and territorial sport organizations that will be asked to deliver much of these programs face real human and financial resource challenges. Nova Scotia is an example. Only 28 of 65 different provincial sport organizations have even part-time staff.
With that challenge in mind, we have three recommendations that we consider conditions for success in order to see Canada reach our participation goals. First, we'd like to see the implementation of the promise to spend 1% of the health budget on sport and physical activity, most importantly with specific collaborative measures to ensure that provincial and territorial sport organizations are resourced properly to allow the programs I've mentioned already to work.
Second, we believe an infrastructure strategy and fund for sport and physical activity need to be developed. Canada currently faces an estimated $14 billion sport and recreation infrastructure deficit, and we will not achieve our goals if we don't address it.
Finally, we would like to see strong support for Halifax's Commonwealth Games bid as a mechanism to address the large infrastructure deficit in Atlantic Canada compared to the rest of the country.
I firmly believe that these investments are beneficial not only for Canadian citizens but also for our financial outlook. We have mountains of evidence that show us how much retroactive health and justice measures cost. We need to shift our focus to curtailing these costs by proactively addressing the risk factors that cause them.
The measures we are recommending today are part of a solution to these problems and part of a long-term vision that ensures we give our children the chance they deserve, and that's part of making Canada a healthy, prosperous place for their children.
Thank you.
2:50 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you very much, Mr. Ferguson. We appreciate your presentation.
We'll continue with the Direct Sellers Association of Canada representative, Ross Creber. Welcome.
2:50 p.m.
Ross Creber President, Direct Sellers Association of Canada
Thank you very much.
Mr. Chairman, honourable members, on behalf of the 47 member companies of the Direct Sellers Association and 1.3 million independent sales contractors, we want to thank you for the opportunity to participate in this consultation.
The direct selling companies and the independent sales contractors market a wide variety of products and services directly to the consumer, usually in the consumer's home rather than in traditional retail establishments. The industry's combined labour force earned an estimated $966 million in income, of which $772 million was paid in bonuses and commissions to independent sales contractors, based on retail sales of $1.96 billion.
The DSA applauds the federal government's reduction of the GST as an important step in getting money back into the pockets of Canadians. We also believe that personal income tax reductions are necessary to promote economic growth, job creation, and international competitiveness. While the DSA recognizes that such cuts must be balanced by the government's spending commitments, we believe that such tax reductions should remain an important priority.
The direct selling industry is a vital part of the small business sector in Canada, investing in entrepreneurial and human capital. The direct selling industry has a tremendous capacity to create jobs, promote entrepreneurial activity among Canadians, and in the process reduce dependence on social assistance programs.
The direct selling industry provides accessible business opportunities with little or no investment, usually less than $500. It is open to all Canadians, without any restrictions with respect to gender, age, education, knowledge, or previous experience. This business opportunity is accessible to all men and women everywhere in Canada, whether they live in urban or rural communities.
Accessibility of these earnings opportunities is highlighted by the fact that close to 24% of all independent sales contractors have no more than a high school education, 49% have some post-secondary education, and 27% percent have either a graduate degree or undergraduate degree.
With 88% of the direct sellers being women operating their own small businesses on flexible hours in their homes, there is a lesser burden on the already strained child care system than there would be if these women were working in more conventional jobs with fixed hours.
The direct selling industry also offers a viable business opportunity that has an unlimited capacity to transform individuals who are dependent on social programs such as employment insurance into successful small business operators. Accordingly, the DSA recommends a partnership between itself and the government to educate and promote the direct selling business opportunity to individuals currently receiving social assistance and employment insurance.
For this partnership to work, existing EI rules must be amended, as there are currently barriers for those who are receiving such benefits. As an example, while there is now a provision that allows for a certain level of additional income to be earned from employment before social benefits are reduced, there is currently only uncertain and limited transitional relief for earnings from self-employment.
In the DSA's view, the current rules discriminate against the direct selling industry and inhibit the transition from dependency to independence, by discriminating amongst those who are serious from the outset in establishing their own direct selling businesses. While the DSA applauds the government for its reduction in the GST rate, there are a number of GST-related issues that we believe need to be addressed, namely the GST treatment of dietary supplements and natural health products—and I direct you to page 9 of our submission—and the expansion of the GST direct sellers mechanism that is set out in detail on page 8.
While the GST direct sellers mechanism is operating in a positive fashion and has been beneficial to consumers, government, and the direct selling industry since the inception of GST, it currently discriminates against the independent sales contractors of the approximately 20% to 25% of the industry that operates through independent sales agents, a group that is excluded. DSA therefore recommends that the government introduce straightforward technical amendments so that the direct sellers mechanism applies throughout the industry without discrimination.
Mr. Chairman, I have a letter that outlines specifically how this could be done and I will give it to you after.
Now I want to turn to the subject of dietary supplements and natural health products, which increasingly Canadians are using on a daily basis as part of their daily diet and health routine. The Excise Tax Act provides complete GST relief to, or makes zero-rated, food or beverages for human consumption, with the exception of snack foods and carbonated beverages. The Canada Revenue Agency, however, changed its administrative interpretation of what constitutes zero-rated foods or beverages and has indicated that most if not all dietary supplements and natural health products are to be treated as taxable.
DSA seriously disputes the CRA's rationale and believes that most consumers consider such products as essential parts of their daily intake of food and beverages.
Mr. Chairman, the Direct Sellers Association and its members appreciate this opportunity to participate in the budget consultation process. As always, we are prepared to provide our support to the government to help achieve its goals.
Thank you.
2:55 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you very much, sir, for your presentation.
We'll continue with a representative from J.D. Irving, the vice-president of administration, Riley Pye. Welcome, sir.
2:55 p.m.
Riley Pye Vice-President, Administration, J.D. Irving, Ltd.
Thank you, Mr. Chairman.
We appreciate the opportunity to speak here today. Mr. Irving sends his regrets that he wasn't able to be here in person today, due to another commitment.
Canadian manufacturers, and particularly exporters, have been challenged by a high Canadian dollar, increased energy costs, and increased transportation costs. In the forest products sector, recent pulp mill, paper mill, and sawmill closures highlight the human tragedy that results when capital investment is not made and productivity is not improved to ensure ongoing competitiveness. For many years, J.D. Irving has understood the need to continually reinvest in our people and to upgrade our operations.
Global capital investment in new pulp and paper capacity illustrates the glaring gap in Canada capital projects. From 2000 to 2007, there's going to be $14 billion invested in pulp and paper in Asia, $12 billion in Europe, $7 billion in South America, and only a little over $1 billion in Canada. This is an industry that we used to dominate. Recent studies confirm that for the past seven years, North American capital spending in the pulp and paper sector has been consistently below 100% of depreciation, and today is hovering below the 50% mark. Capital investment of anything less than annual depreciation, as a minimum, puts Canada seriously behind in this very fierce global competition.
We believe that current capital cost allowance rules and rates are one of the factors that are contributing to this problem. We recommend increasing CCA rates for manufacturing and processing equipment from 30% declining balance rates to 50% on a straight-line basis. This change reflects more appropriately the economic depreciation that's caused by rapid changes in technology that are occurring in a highly competitive world market. This will improve the payback and reduces the risk associated with very large capital-intensive investments.
We also believe the CCA rate for manufacturing and processing buildings should be changed from 4%—a very low rate—to at least a 10% declining balance rate. This will better reflect the economic depreciation associated with buildings and heavy-use processes.
The renewable power production incentive should be expanded to include modernizing existing facilities. Expansion or some modifications to existing equipment and facilities should be eligible for accelerated capital cost allowances, not just new facilities. This would allow us to make changes to our existing facilities to make them more competitive and more environmentally friendly.
We believe that the government should eliminate the half-year rule for new investments. Elimination of the half-year rule is one of the things that would significantly reduce the risk and improve the payback for large capital investments. Also, the current capital cost allowance regime has a “ready for use” rule that should be abandoned and changed to one that properly reflects assets at acquisition.
One of the other areas where we see there is opportunity for changes is in the regime around taxation of productivity improvements. Under the current taxation regime, when it comes to incentive pay or variable pay for improvements in productivity, it is taxed at very high marginal tax rates. We believe there should be some non-taxable or low-taxable category of employee income for productivity bonuses, up to a maximum of $2,500 per year for employees who earn up to $50,000 a year. This will place variable compensation for productivity improvements in the same category as medical and pension benefits.
Government and employees are also facing very significant challenges when it comes to containing health costs. There are three primary preventable contributors to poor health in employees: smoking, inactivity, and excess weight. Companies like ours are willing to make investments in wellness programs that would tackle these problem areas. For every dollar invested in comprehensive prevention and health promotions programs, we're saving $3 to $8 in terms of a payback. However, the tax system is putting up roadblocks.
Every time a company today pays for a smoking-cessation program, a weight-reduction program, or a fitness club membership for employees, employees get an income tax bill. We believe the government should encourage greater participation in programs such as fitness programs or smoking-cessation or approved weight-loss programs. The government should consider employee reimbursement of these programs the same as they treat health care benefits--that is, they're not taxed in the hands of employees. We're recommending that employers fund these initiatives, not governments, but the government should get out of the way and allow it to happen.
Thank you for the opportunity to present here today.
3 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you very much, sir.
We'll conclude our presentations with the Halifax Regional Municipality. Chief Administrative Officer Dan English is with us. Welcome.