Evidence of meeting #33 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was thank.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

  • Mark McQueen  Board Director, President and Chief Executive Officer of Wellington Financial, Canada's Venture Capital and Private Equity Association
  • John Gamble  President, Association of Consulting Engineering Companies
  • Susie Grynol  Vice-President, Policy and Public Affairs, Association of Consulting Engineering Companies
  • Claude Lajeunesse  President and Chief Executive Officer, Aerospace Industries Association of Canada
  • Robert Simonds  President, Canadian Association of Fire Chiefs
  • Geoff Smith  Director, Governement Relations, Canadian Electricity Association
  • Richard Rémillard  Executive Director, Canada's Venture Capital and Private Equity Association
  • Jayson Myers  President and Chief Executive Officer, National Office, Canadian Manufacturers and Exporters
  • Michel Arnold  Executive Director, Option consommateurs
  • Anu Bose  Head, Ottawa Office, Option consommateurs
  • Vaughan Dowie  Executive Head of Public Affairs, McGill University
  • Mark Cohon  Commissioner, Canadian Football League, 100th Anniversary Grey Cup Festival
  • Chris Rudge  Chairman and Chief Executive Officer, 100th Anniversary Grey Cup Festival
  • Michael Clemons  Representative, 100th Anniversary Grey Cup Festival
  • Barbara Cameron  Associate Professor, York University, Centre for Feminist Research
  • Kathleen Lahey  Faculty of Law, Queens University, Centre for Feminist Research
  • Jean-Michel Laurin  Vice-President, Global Business Policy, Canadian Manufacturers and Exporters
  • Sandra Crocker  Assistant Vice-Principal, Research and International Affairs, McGill University

5:35 p.m.

Executive Director, Option consommateurs

Michel Arnold

We actually recommend ensuring that studies are conducted in this manner because, naturally, since the situation is becoming more and more complex, there could be a tendency to have various interpretations. We believe that the current work is done well and must continue to be so. So our recommendation is in support of the current work.

5:35 p.m.

Bloc

Daniel Paillé Hochelaga, QC

I have one minute left.

Mr. Laurin, in the graph your colleague mentioned, we can notice some sort of discrepancy between cash flow and investments. I see there is a lag between the increase in cash flow and the investment, which did not reach the same level. In order to clarify your graph, if we look at the discrepancies in 1995 and 1985, are we to believe that the same thing is happening in 2010 despite everything?

October 6th, 2010 / 5:35 p.m.

Jean-Michel Laurin Vice-President, Global Business Policy, Canadian Manufacturers and Exporters

Could you tell me which graph you are referring to?

5:35 p.m.

Bloc

Daniel Paillé Hochelaga, QC

It is the graph your colleague mentioned, the one on cash flow.

5:35 p.m.

Vice-President, Global Business Policy, Canadian Manufacturers and Exporters

Jean-Michel Laurin

It is the one at the bottom. There is always a lag between when capital is available and when the company makes an investment. So that is one of the reasons why we ask that accelerated capital cost allowances be in place for a five-year period since there is always a delay between when we do the study and make the decision to invest and when the money is actually invested. Depending on the company, this lag period can range from a few months to a few years.

5:35 p.m.

Conservative

The Chair James Rajotte

Thank you, Mr. Paillé—

5:35 p.m.

Bloc

Daniel Paillé Hochelaga, QC

Sir, I will take five seconds to say that, as MP for Hochelaga, I hope that the Grey Cup stays in Montreal.

5:35 p.m.

Conservative

The Chair James Rajotte

Merci beaucoup.

Ensuite, Mr. Wallace, please.

5:35 p.m.

Conservative

Mike Wallace Burlington, ON

Thank you, Mr. Chair.

I want to thank the folks from the Grey Cup for coming. One of the thrills of my lifetime was flipping the coin at the eastern semi-final. My Ticats lost, but other than that it was a great game. I appreciate your coming.

I'm going to move on to the manufacturing organization. I just want to make sure that I have this right, and that you're on the record, that one of your recommendations is to follow through on the commitments to reduce the federal corporate income tax rate to 15%, to combine to 25% by 2012. That is your organization's position, to follow through on those tax cuts?

Just say yes or no. I don't have a lot of time.

5:35 p.m.

President and Chief Executive Officer, National Office, Canadian Manufacturers and Exporters

Dr. Jayson Myers

Yes. It's a very important measure.

5:35 p.m.

Conservative

Mike Wallace Burlington, ON

Thank you very much.

I have a question about refundability of tax credits for investments required for regulatory compliance.

For those who don't know, refundability means that if you paid tax or not, you get your money back.

So that's (a). But (b), you say “investments required for regulatory compliance”, meaning legal requirements. For what type of investments are you looking for a refundability aspect?

5:35 p.m.

President and Chief Executive Officer, National Office, Canadian Manufacturers and Exporters

Dr. Jayson Myers

I think if you look at a particular sector or set of regulations, such as new regulations for food product safety, companies have to make investments in new monitoring systems, inspection systems, IT systems. Many of these don't necessarily have—

5:40 p.m.

Conservative

Mike Wallace Burlington, ON

But aren't they tax deductions as an investment in their companies already?

5:40 p.m.

President and Chief Executive Officer, National Office, Canadian Manufacturers and Exporters

Dr. Jayson Myers

Not if they're investments in equipment, where it's not necessarily clear that there would be a tax deduction. There would be a—

5:40 p.m.

Conservative

Mike Wallace Burlington, ON

Expenses go against revenues, do they not, in a normal business transaction?