I'm sorry...?
Evidence of meeting #22 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investment.
Evidence of meeting #22 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investment.
2:45 p.m.
National Aboriginal Student's Representative, Canadian Federation of Students, National Aboriginal Caucus
I said what use is a plumber when you don't have running water in your community? There's the argument then that there's a need for plumbers everywhere, but we want to encourage aboriginal youth to be able to go back to their communities so they can improve and end the cycle of poverty that currently exists.
2:45 p.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
No disrespect, Mr. Smoke, but I disagree with you in relation to that. I think the opportunities for aboriginals and my family in northern Alberta and across Canada are in the trades. And with respect, I think the opportunities they have for them are tremendous. What I believe your group should be doing, and most aboriginal groups, is to encourage the youth of this country to get trades. There are so many opportunities--less education and better money.
Frankly, I think the biggest problem with aboriginal communities in the country, and, as I say, I'm related to many in Alberta, is self-pride. Once they get a trade, once they get out of the community for a period of time, get some training, come back into the community and work, I think they'd do much better.
That's just my opinion, and of course that's just an opinion.
My final very short question is in relation to mobile payment. I have a car wash in northern Alberta, and no matter what happens, nobody can use an Interac card. To pay for a car wash, they have to walk into a booth. Is that what you're talking about, about mobile payments? Or what are you talking about in particular?
2:45 p.m.
President and Chief Executive Officer, Retail Council of Canada
Mobile payments is using your cellphone or going on the Internet with your cellphone and doing a purchase, so having an app that allows you to do that with a wallet, an electronic wallet, or just scanning it.
2:50 p.m.
Conservative
2:50 p.m.
Conservative
2:50 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
You just blew all my questions right out of the water.
Mr. Smoke, megwetch.
I have to say that hearing Mr. Jean talk about the problems facing aboriginal youths when they've cut $10,000 out of the program is just absolutely amazing and discouraging to hear. I won't even go any further, because frankly I'm quite annoyed.
Ms. Kremmidas, did I hear you correctly when you said that Canada's tax rate is the lowest in the G-7?
2:50 p.m.
Chief Economist, Canadian Chamber of Commerce
Canada's marginal effective tax rate is the lowest in the G-7. That marginal effective tax rate is the general corporate income tax rate, as well as other taxes that businesses pay, minus the deductions they get, like a capital--
2:50 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
What we hear from our friends across the way quite regularly is about increasing taxes. One of the things we have said is that the next corporate tax breaks should be stopped. They shouldn't go forward.
If that were the case, if they simply don't cause the next tax break, then the effective rate would still be the same, the best in the G-7. Would that be correct?
2:50 p.m.
Chief Economist, Canadian Chamber of Commerce
We know that the U.K. is moving aggressively in terms of cutting corporate income taxes. In fact, if you look at just the general corporate income tax rate—
2:50 p.m.
NDP
2:50 p.m.
Chief Economist, Canadian Chamber of Commerce
If the U.K. moves ahead, Canada will be the second-best in terms of having the lowest tax rate.
2:50 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
Second-best in the G-7 isn't bad, in my opinion.
I don't mean to pick at what you've said, but we've had Mr. Joy talk about a transit strategy, and our critic Olivia Chow has been pressing the government on this. The point I'm making is that all of this clearly requires investment going forward.
What we're saying is that at this particular point in history, we have one of the lowest interest rates any place will ever see in our lifetimes. We need research and development. We need strategies, and a transit strategy is one of them. If we are already in this position in the G-7—if that's factual, and I assume it is—then why in the world is this not the best time for Canada to invest in its infrastructure?
Mr. Joy, would you like to address that?
2:50 p.m.
Vice-President, Policy and Government Relations, Toronto Board of Trade
Obviously we are looking, in the balance of all things, to see an increase and longer-term commitment to infrastructure. But there is a balance, and we recognize that. We don't want to suggest otherwise.
Certainly I think some of the tax issues are related to productivity issues. The flip side of increasingly attractive tax rates is that we haven't yet seen the level of productivity improvements. It's coming in the right direction, but if we lose sight of that element, I think we will do ourselves some disservice.
2:50 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
Part of what we need to do to get the productivity is to train our workforce appropriately. Mr. Smoke will tell you about the young people who are looking for work. We saw and heard this in the Yukon, as well. They're crying for people to be educated and trained.
If I have any time left, I'll give it to Mr. Julian.
2:50 p.m.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Thank you very much, Mr. Marston.
I want to come back to Mr. Adler's question around the trade agreement.
We've had concerns about the trade template that exists currently. In most of the cases where trade agreements have been signed, exports to those markets have actually gone down. In other words, we've signed the agreement and then Canada exports less to those markets than prior to the signing of the agreement.
We also have very serious concerns from the IMF's World Economic Outlook about our current account deficit. In fact, Canada will be among the worst in the industrialized world—worse than Spain, Italy, France, economies that are currently considered somewhat shaky. Canada is worse than all of them in our current account balance. The deficit is that high and that strong.
There's obviously something not working with our export strategy. We tend to be exporting raw materials rather than value-added production. I'm wondering if the Canadian Chamber of Commerce has an opinion on what has clearly been a serious problem with Canada's exports.
2:50 p.m.
Chief Economist, Canadian Chamber of Commerce
First, in terms of the current account deficit, we need to remember that the current account deficit is not just about trade. It's not just a trade deficit. There are other things in there. For example, bilateral travel is in there, investment is in there—foreign direct investment. All of that is in there to come up with the current account deficit.
It is true that Canada is one of the largest commodity-oriented exporters in the G-7; one-third of our exports are commodity-oriented. In and of itself, that is not a bad thing, and it's not a bad thing because we are exporting to Asia, where demand for commodities is phenomenal. In order to tap into that fast-growing Asian market, the fact that we export a lot of commodities has served Canada extremely well.
2:55 p.m.
Chief Economist, Canadian Chamber of Commerce
In terms of trade in general, trade has escalated beyond belief because of the Canada-U.S. Free Trade Agreement, the NAFTA agreement. It takes time.
If you look at Europe, for example, 10 years ago 25% of our exports went to Europe, and now 10% are going to Europe. There is a benefit to free trade agreements. It takes some time for companies to gear up and to diversify their trade, but there's no question about it, free trade agreements in existence today have resulted in an increase in exports.
2:55 p.m.
Conservative
The Chair Conservative James Rajotte
I'm sorry to cut off time; it's just that we do have to move along to other members.
I'll just gently remind colleagues that if they have a really big question they could they ask it at the beginning of their session.
Ms. McLeod, please.
2:55 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you, Chair.
I'm going to try to get in three quick questions, so if we could have fairly short answers, I might be able to do it.
My first focus is on the Toronto Board of Trade. We've talked about how we've invested significant dollars in infrastructure in the last few years through the stimulus program, and the Building Canada fund. As you are aware, in budget 2011 we committed to working with the provinces, territories, and other stakeholders to develop a new, ongoing plan for public infrastructure that extends beyond the expiry. So that really is a commitment that's going to be meeting your needs. Is that accurate?