You have one minute if you need it.
Evidence of meeting #43 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
Evidence of meeting #43 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
2:45 p.m.
Executive Director, Heritage Vancouver Society
I'd like to thank you for allowing me to speak today, and I certainly encourage you to seriously look at implementing this program.
Thank you.
2:45 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you very much for your presentation.
We'll now go to the Association of Canadian Publishers.
2:45 p.m.
Rodger Touchie President, Association of Canadian Publishers
I'm Rodger Touchie, the president of the Association of Canadian Publishers. The association is the national voice of Canada’s independent English language book publishers, who produce the vast majority of books by Canadian authors. We represent 134 Canadian-owned and -operated businesses from across the country.
The Department of Canadian Heritage, through the book publishing industry development program and the Canada Council for the Arts, has over the past 40 years invested in our industry with strategically designed and carefully managed programs. These programs increase our capacity to compete with the large multinational companies that dominate our markets and thus enable us to return the taxpayers' investment with abundant cultural and economic value.
Today the book industry is undergoing enormous change through digitization. Over the past 10 years, the Internet has transformed the book-selling process as Amazon, Chapters-Indigo, and others have created highly successful online retail operations. Now the books themselves are going electronic, driven by environmental concerns, economic factors, and the introduction of devices such as the Kindle and the Sony reader.
These changes offer enormous opportunities to Canadian-owned publishers for new markets and new business models. They also present enormous challenges. Investment in new publishing technology and human resource development must be part of Canada's strategy for the development of a knowledge economy.
Last Tuesday we came here, and we appreciate the opportunity to do so. Our primary contacts and presentations to government do go to Canadian Heritage, so I am pleased to quote from a press release from the office of the Honourable James Moore:
The Honourable James Moore, Minister of Canadian Heritage and Official Languages, today announced renewed funding for the Canadian book industry totalling $39.5 million per year over the next five years. The renewed investment will help publishers and other book industry stakeholders to weather the current economic slowdown.
This is very, very welcome news for a whole bunch of people I know, for our association, and for members of the French language association, with whom we tend to partner when we make presentations. The emphasis of the new moneys is to go to assisting with the transition of our industry from traditional book production to the world of digital. It's also designed to reduce the administrative burden for our industry.
I just wanted to say today that having dealt with Canadian Heritage over the last decade, and having interfaced with the people who run the programs, I've found them an outstanding group of people to work with. They are efficient in what they do, they're competent, and they listen.
I would also like to thank Minister Moore for being accessible, for listening to our presentations, and for responding to our needs.
Thank you.
2:50 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you very much for your presentation.
We will go to questions from members, starting with Mr. McCallum.
You have seven minutes.
2:50 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
Thank you.
Welcome to all, and thank you for joining us this afternoon.
I'd like to start with the astronomy people and the Pacific Community Resources Society. One thing you have in common is that you both say that money to support your groups will rapidly transform itself into employment and jobs, unlike the infrastructure money we've been hearing about.
But first of all, to either Ian Mass or John Coward, I agree with you that when youth unemployment is at record levels, the problem becomes more urgent, and, if anything, you ought to get more money rather than less. Is it my understanding that the funding for this is due to lapse in 2010, so that not only are you not getting money but you may get less money? Is that right, or have I missed something?
2:50 p.m.
Executive Director, Pacific Community Resources Society
No. To our knowledge, the money won't lapse in 2010, but it's been static for the last three years, so it hasn't really responded, especially for this program, the Skills Link program, which really works at employment for at-risk youth. Those are the kids who, if it's a positive economic climate, are the last hired at the best of times, and they're certainly the first fired. Their unemployment rate is at least double the national average for youth employment. So by keeping that funding static despite the ups and downs of the economy, essentially those kids are falling deeper and deeper into that hole. They're the ones who aren't going to get out of that hole and who will be a draw on Canada for the rest of their lives.
2:50 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
Thank you. I thought you made a very powerful presentation, so thank you for that.
My next question is to either Mr. Nelson or Mr. Hickson.
I wish you all the best of luck, but this government has revealed a somewhat negative attitude towards science and research funding. I wouldn't be terribly hopeful. They tend to prefer populist initiatives, using instant gratification, whereas your kind of project provides the payoff in the medium term. I support it. We are on the record as strongly favouring more funding for innovation in research and science, because that's where the jobs of tomorrow are going to come from.
If we look at your project, specifically at the $160 million, is that justified on the grounds of some sort of public good argument for researchers, for universities, or is it a subsidy for a profit-making private sector company? The case for it, I think, depends a little bit on who actually gets the money and how it's justified from a public policy point of view. I wasn't quite clear on that from your presentation.
2:50 p.m.
Co-Chair, Industry, Coalition for Canadian Astronomy
I didn't delve into the details, but I can give very good details on that. Not only am I co-chair representing industry, but I own the company that has built more than half the telescopes in the world in the last 30 years--in Canada.
We've never made a dime on any telescopes, so you can kind of put that one aside, but what it's done is it has made this company the best in the world in mechanical and structural engineering. It's that skill set that we've applied in other industries. We've grown to be a leader in the amusement ride industry, for instance.
In this particular case, this project, we've already spent, in total, $80 million on the design. Canada's portion has been $20 million. That has been spent. So this is ready to be built. It would largely be built in Canada on the fabrication side. It will be erected in Hawaii. The site has been selected, and that's on top of Mauna Kea. It's one of the two best sites in the world.
But the actual jobs are created across Canada. Interestingly, in Canada the major benefit will be for the astronomers, ultimately, when it's built. Canada is a leader in astronomy.
We focused with this government, as you mentioned, on the job creation aspects of it, because it is very real. We think they are jobs of the future, but they are also jobs today. I'll give you a concrete example. I had 800 people working in my firm a year ago, before the recession. We're down to 400. And those are skilled trades people.
2:55 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
So is it a kind of Nortel-type or Avro Arrow-type argument--
2:55 p.m.
Co-Chair, Industry, Coalition for Canadian Astronomy
It depends which way they go. If it does not get selected, you're absolutely right.
I think there is a picture in here. That is a Canadian design, that enclosure; that telescope is uniquely Canadian. It was designed here in Vancouver. But others can build that. Mitsubishi is already, with the Japanese, trying to squeeze us out.
2:55 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
If the government put up $160 million, not only would it create some jobs today, it would also create a longer-term potential for Canada to be a leader in this sector for years, or even decades, to come. Is that a fair statement?
2:55 p.m.
Co-Chair, Industry, Coalition for Canadian Astronomy
Exactly. I'd say that's a fair statement, because that's been the case.
2:55 p.m.
Paul Hickson Co-Chair, Canadian Astronomical Society, Coalition for Canadian Astronomy
This is the leading astronomical project in the world. Canada has a leading share in it now. That won't happen unless we come up with our money.
One thing that's not in our submission is the fact that not just the telescope structure and the dome--all the steel, the design, and the structure for that--but also the key technology that makes these very large telescopes work and gives them resolution and power beyond even those in space, adaptive optics, is being developed in Canada. Canadians are already designing. We will build the adaptive-optics system for that telescope that gives it its power, but we'll lose that without the funding.
2:55 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
Thank you.
I think I have about one minute left.
With regard to recreational vehicles, this confirms what I had learned from other sources, that this $12 billion facility isn't working very well. We had the BDC president before us, and he couldn't explain it properly.
I understand that the funding is reserved for the big players, and the smaller ones don't have a chance. I'm not sure that any of this money has flowed. You do have the recreational vehicle manufacturers. I didn't quite understand how you want the program to be changed to accommodate your industry. What has to happen to make it work?
I'm not even sure it's working for the other industries. Maybe it's not working at all.
What specifically has to happen in order to accommodate your sector?
2:55 p.m.
Representative, Recreation Vehicle Dealers Association of Canada
Thank you for the question.
You're right. It isn't working today for a number of reasons, including the fact that you need triple-A rated debt. In order to entice a new lender, the loan guarantee program would probably work much the same way as EDC guarantees Canadian manufacturers for U.S. dealerships. A similar type of program up here could entice a lender if we had some kind of loan guarantee based on a percentage of their portfolio.
I have, in fact, a lender now for the RV association that is prepared to come to the table, provided there is a small guarantee from the federal government.
2:55 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
A small guarantee? Either it was a guarantee or it wasn't a guarantee.
2:55 p.m.
Representative, Recreation Vehicle Dealers Association of Canada
Well, 10% of the void, which is between $150 million and $200 million.
2:55 p.m.
Conservative
2:55 p.m.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Thank you, Mr. Chair.
Good afternoon to all the witnesses.
My first question is for Mr. Harvey, from the Certified General Accountants Association of Canada.
You made a few recommendations, the first of which is for the government to simplify the tax system. We often get that kind of request from consumers and ordinary citizens. They find it increasingly difficult to file their tax returns.
If the system was simplified, would you not lose customers? Now you are the one asking for a simpler system. Does that mean that the tax system has become too complicated even for accountants?
3 p.m.
Chair, Tax and Fiscal Advisory Group, Certified General Accountants Association of Canada
I do believe it has become too complicated for many accountants who are working across this country to serve their clients and to serve the general public. So, yes, I agree with that.
3 p.m.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
You said earlier that it was important to work with the three provinces that have not harmonized their sales tax, to help them make the transition. What are those three provinces?
3 p.m.
Chair, Tax and Fiscal Advisory Group, Certified General Accountants Association of Canada
The three provinces are Prince Edward Island, Manitoba, and Saskatchewan.
3 p.m.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
So, in your view, Quebec has harmonized its sales tax. The way we see it, it was done very early, beginning in the 1990s.
As an accountant, Mr. Harvey, you know that Quebec harmonized its sales tax. Given that you must navigate the tax system, as an association, you know that Quebec has already done it. Basically, that is what you are telling me.
3 p.m.
Chair, Tax and Fiscal Advisory Group, Certified General Accountants Association of Canada
Yes, I am making a confirmation. Luckily I work in British Columbia, and usually I'm restricted to B.C. rules and don't have to deal often with the Quebec rules. It is harmonized in Quebec in a different fashion, perhaps, than what B.C. is proposing now and some of the other provinces, but yes, I agree with you.