Evidence of meeting #82 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A video is available from Parliament.
6:10 p.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
Thank you. I've almost run out of time.
I just want to ask if you are getting some positive response. Do you feel some confidence that the government is going to respond and bring clarity to that provision?
6:15 p.m.
Director, Policy and Government Affairs and Chief Economist, Calgary Chamber of Commerce
We fully anticipate that. The indications suggest there are going to be some changes to that Investment Canada Act in the near future. We're hoping it will have the comprehensive approach we're looking for, particularly regarding definitions of net benefit and parameters around state-owned entities looking to invest in our country.
6:15 p.m.
Conservative
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you, Chair.
And thank you to the presenters.
I'm going to start with Mr. Sinclair.
Mr. Sinclair, you were talking about the accelerated capital cost allowance and the fact that it should be made permanent. I reflect back to the home renovation tax credit that we put in. Did it ever get people out there. They were renovating, and there were probably more kitchens and floors and whatever....
Is there a danger that because it's temporary it is psychologically spurring action now that might not have happened? That is my first question.
6:15 p.m.
Vice-President, Greater Kitchener Waterloo Chamber of Commerce
No, I wouldn't say so in this particular instance with the accelerated capital cost allowance for manufacturing, because regardless of how long it gets extended or whether it becomes permanent or not, it's just a situation. This is what we're hearing from our members in the manufacturing sector. They will use that money they save and invest it back into their organizations, probably in further technology and better equipment. As I've said on a number of occasions, that's key to the manufacturing sector. What we hear from the members is that they have to make these adjustments, and a lot of it is moving from the traditional forms of human production to mechanized production.
The term that's often used is “advanced manufacturing”, which is the use of robotics and very highly mechanized equipment for producing everything from auto parts to food. The position of the industry is that we have to make those investments back into the industry. That's how they would look at this money. It's a savings they are going to invest back into more technology.
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Okay. You wouldn't see it creating somewhat of a—
6:15 p.m.
Vice-President, Greater Kitchener Waterloo Chamber of Commerce
It's just rolling on through time, hopefully.
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
—laissez-faire approach to when they do the work, then.
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
If it was going to be made permanent, are you suggesting it be the exact same formula as it is right now?
6:15 p.m.
Vice-President, Greater Kitchener Waterloo Chamber of Commerce
Yes. It seems to be working. It builds that long-term security and long-term certainty. You can do that five-year, ten-year planning process if you have something like this in place. Right now it's extended every two years.
For somebody in south Kitchener who is running a manufacturing operation, if they can say in five years they will still get this, then they can build that into their planning process, particularly with respect to investment of new capital. That's a particular advantage to them. That's certainly what we're hearing from our members. If they had that certainty, they would probably invest more.
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
If the percentage changed marginally, would that make a difference?
6:15 p.m.
Vice-President, Greater Kitchener Waterloo Chamber of Commerce
It would probably not, no. Probably anything they have, any return they get from the government, anything they're not paying, they are certainly going to invest back into their operations.
6:15 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you.
Mr. Thurlow, I'm not an expert in your field. If we look back to the last number of years, we've heard about some of the things that didn't go so well with the programs. Tell me about some of the real successes in terms of how the money was spent, what we achieved, and what the long-lasting impacts are.
Can I understand a little bit better what we accomplished with—
6:15 p.m.
President, Canadian Renewable Fuels Association
Sure, and let me be clear: if it wasn't for the government's investment in the renewable fuel strategy, our association wouldn't exist. It is important, this government's investment.
The ethanol expansion program was the first step. Using the ethanol expansion program, we built out several ethanol facilities in the country. The key behind that program was ensuring that the renewable fuel standard of 5% was going to be met by domestic production, so that the value-add, which is the creation of the renewable fuel, happens here domestically, in our country.
That's what we'd like to emulate with the renewable diesel or the biodiesel standard. Over the last couple of years we haven't seen the same build-out that we've seen with ethanol. There's a confluence of reasons for that. We think what we'd like to do is just reopen that program for projects that have the money, the investors, and the proven success in the marketplace to generate this type of biodiesel so that they have a shot at this ecoEnergy funding, to help make sure that the government can meet its objective of 600 million litres.
6:20 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you.
I probably don't have enough time. I was going to ask Mr. Leach—
6:20 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
He had two recommendations at the very end, but perhaps later....
6:20 p.m.
Conservative
6:20 p.m.
NDP
Hoang Mai NDP Brossard—La Prairie, QC
Thank you, Mr. Chair.
I was really glad to hear Ms. McLeod say that the energy retrofit program was working and was creating jobs and everything, but the government actually cut that program without all the funds even being out.... It's really sad to see.
