Evidence of meeting #76 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Martin Unrau  President, Canadian Cattlemen's Association
Kim McCaig  Vice-President, Chief Operating Officer, Canadian Energy Pipeline Association
Corinne Pohlmann  Vice-President, National Affairs, Canadian Federation of Independent Business
Denis St-Pierre  Chair of the Tax and Fiscal Policy Advisory Group, Certified General Accountants Association of Canada
Bonnie Dawe  Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.
Andrea Brocklebank  Research Manager, Canadian Cattlemen's Association
Daniel Bergeron  Vice-President, Strategic Data and Metropolitan Affairs, Agence métropolitaine de transport
Claude Péloquin  Vice-President, Board of Directors, Association québécoise de l'industrie touristique
Sylvain Schetagne  National Director, Chief Economist, Social and Economic Policy, Canadian Labour Congress
David Lindsay  President and Chief Executive Officer, Forest Products Association of Canada
Patrick Duguay  President, Board of Directors, Social Economy Working Group
Michel Tétreault  President and Chief Executive Officer, St. Boniface Hospital

4:45 p.m.

NDP

The Vice-Chair NDP Peggy Nash

Most certainly not.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Ms. Dawe, you're with Finning International?

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

Yes, that's correct.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Where is your office located?

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

We have many offices spread across British Columbia and Alberta. I'm located in Vancouver, but we have significant operations in the Edmonton area as well.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

I hope you mean Fort McMurray as well, don't you?

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

Absolutely. It's Fort Mac as well.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

That is the place I represent. In fact, isn't Finning the largest repair shop in the world for Caterpillar? I think it is.

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

It's definitely the largest Caterpillar dealer in the world. In terms of the size of the facility, I don't have that information.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

That's all right.

Finning International did $1.8 billion in the second quarter in revenue. You have people all over the world, and if you look online, 75 out of 85 jobs that you're looking to fill right now are in Alberta.

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

That's correct. The ability to get people up into the Fort Mac region and get them working for us is tough. It's an issue.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

It's an issue, especially when you're only paying $200,000 to $225,000 a year for people to work in heavy equipment operation. Is that fair to say?

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

Of course—

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Those are the wages you're paying.

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

In some roles, yes, it's definitely the wages, but there are lots of other issues besides wages, such as people leaving their families.

People come in from Newfoundland. They fly on planes and live in camps for—

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

I've lived there for 47 years. I know exactly what's going on there.

4:45 p.m.

Chair, Canadian Income Tax Committee, Tax Executives Institute, Inc.

Bonnie Dawe

So you know there are other—

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Most of my questions are going to be to you in relation to CEPA, Mr. McCaig.

I'm wondering about the pipeline industry. If in 2008 the pipeline industry was shut down in Canada, in your mind, what would have happened to our economy?

4:45 p.m.

Vice-President, Chief Operating Officer, Canadian Energy Pipeline Association

Kim McCaig

I don't have the exact figures, but I could give it in picture form to you.

If the pipelines were to shut down today, how would you heat your homes, turn on your lights, move your vehicles? That would be the key answer, I think.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

In fact, as you mentioned, it costs $5 billion to transport all of our oil and, I think, gas in Canada, but you're actually adding about $122 billion to the economy. In essence, you're moving $127 billion worth of product.

4:45 p.m.

Vice-President, Chief Operating Officer, Canadian Energy Pipeline Association

Kim McCaig

That's correct.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Okay. My next question is this: are the pipelines today in Canada constrained in the volume of material they can move?

4:45 p.m.

Vice-President, Chief Operating Officer, Canadian Energy Pipeline Association

Kim McCaig

Absolutely.

4:45 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

That's especially the case with oil. Is that not fair?

4:45 p.m.

Vice-President, Chief Operating Officer, Canadian Energy Pipeline Association

Kim McCaig

Absolutely. It's especially on the oil side.

The challenge is that the market's changing as well, in terms of where we're moving it and those types of things. We live in a worldwide marketplace. It's not only North America. That's why you're seeing a lot of debate and discussion around how you reach those other markets and why diversification is so important.