Evidence of meeting #37 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
A recording is available from Parliament.
11:45 a.m.
Executive Director, Culture Montréal
Yes, there is money from the federal level in—
11:45 a.m.
Liberal
11:45 a.m.
Executive Director, Culture Montréal
No. If we're talking about the Quartier des spectacles, we're talking about infrastructure so that's money for the construction of buildings.
The other files that I listed earlier are still upcoming. The funding has not yet been announced for the Lachine canal, Old Montreal, the Old Port of Montreal and the Bassins du Nouveau Havre. This money has to come later. We also have to continue to invest in—
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
I don't see an amount. Is there an amount for the infrastructure program that you would like to see allocated to culture?
11:45 a.m.
Executive Director, Culture Montréal
In the infrastructure program, in fact, budgets are evolving for all these projects. That was the case for the Quartier des spectacles where the federal government invested $30 million.
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
It's never clear. So we don't know if an amount should be allocated to sports, another to culture, another to roads and highways, etc. It's not clear. Sometimes, we ask for a little bit of flexibility, but other times we want it to be a little more rigid.
What's your position in this regard? Should there be a fixed percentage or amount set aside for culture in any infrastructure funds available?
11:45 a.m.
Executive Director, Culture Montréal
What's clear is that whenever infrastructure budgets are voted on, some money should be set aside for cultural infrastructure. In Montreal, investments were made in the Quartier des spectacles and revonations or refits of buildings, and there will have to be more.
However, I can't give you an exact amount right now, but we could send you this as additional information.
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
There certainly should be some in my riding, in the Saint-Michel area, with its Cité des arts du cirque. That is why I asked the question.
Mr. Hayes, obviously we're always looking at return. If you recommend that we increase the credit from 15% to 20% and the maximum from $5,000 to $20,000, what does the government get in return? Are the companies that you're going to invest in, first of all, Canadian? Are they 100% Canadian?
11:45 a.m.
President and Chief Executive Officer, GrowthWorks Atlantic Ltd., GrowthWorks Capital Ltd.
Yes, that's correct.
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Will they pay taxes? Most growth companies do not pay taxes. I would assume they pay payroll taxes. Is there a minimum?
11:45 a.m.
President and Chief Executive Officer, GrowthWorks Atlantic Ltd., GrowthWorks Capital Ltd.
Yes, absolutely, and there have been a number of independent studies that have looked at the payback. The most recent one was done just recently in British Columbia. It hasn't been published yet, but I suspect it will in the next week or so. It shows some very compelling numbers in terms of the payback on income taxes to the federal and provincial governments, payroll taxes, and in job creation. These are numbers that will stand up to scrutiny.
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
We just don't want to be financing self-operators and then be turning around. They get money and then they apply for R and D credits. That's the logic there.
11:45 a.m.
President and Chief Executive Officer, GrowthWorks Atlantic Ltd., GrowthWorks Capital Ltd.
I understand. What it's really doing is taking opportunities that have been developed through the federal government's significant investment in R and D and commercializing those ideas. Many other countries have connected the dots to that in healthy, growing economies.
11:45 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
This is to the shipbuilders. We don't have too many shipbuilders in the Montreal area, but we do have a port. What's the story about the accelerated capital cost? Isn't it something that the government has already put in place? Shouldn't you already be eligible for that? Why are you not eligible for the accelerated capital cost?
11:45 a.m.
Consultant, Chairman of the Shipbuilding Association of Canada, and Vice-Chairman (Retired), Irving Shipbuilding Inc.
A Canadian owner building in Canada is eligible for the accelerated capital cost allowance. The problem is, you cannot access, then, the structured financing facility. It's either/or.
11:50 a.m.
Consultant, Chairman of the Shipbuilding Association of Canada, and Vice-Chairman (Retired), Irving Shipbuilding Inc.
I've been told I don't speak either official language.
11:50 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Could you repeat that?
If you purchase a ship you cannot get the accelerated...? Or is it if you're the builder of a ship?
11:50 a.m.
Consultant, Chairman of the Shipbuilding Association of Canada, and Vice-Chairman (Retired), Irving Shipbuilding Inc.
The purchaser gets it.
You can get the accelerated capital cost allowance or the structured financing facility. You cannot get both.
11:50 a.m.
Liberal
11:50 a.m.
Consultant, Chairman of the Shipbuilding Association of Canada, and Vice-Chairman (Retired), Irving Shipbuilding Inc.
Government.
11:50 a.m.
President of the Shipbuilding Association of Canada, Irving Shipbuilding Inc.
Industry Canada.
11:50 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
How do they control whether you get the accelerated capital cost?
11:50 a.m.
Consultant, Chairman of the Shipbuilding Association of Canada, and Vice-Chairman (Retired), Irving Shipbuilding Inc.
It's up to the owner. You can make either/or.
11:50 a.m.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Okay, I see your point. Thank you.
The Investment Funds Institute has a couple of good points. I think you make a good point in making sure that RSPs, group RSPs, and all those vehicles are going to be fairly treated. I think you had some questions already.
Go ahead, Mr. James Rajotte.