Evidence of meeting #139 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was dentists.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Paul Allison  As an Individual
Daniel Kelly  President and Chief Executive Officer, Canadian Federation of Independent Business
Amrinderbir Singh  President, Canadian Association of Public Health Dentistry
Carl Laberge  President-Chief Executive Officer, Saguenay Port Authority
Ian Lee  Associate Professor, Sprott School of Business, Carleton University, As an Individual
Keith Da Silva  Past President, Canadian Association of Public Health Dentistry

4:15 p.m.

Conservative

Jasraj Singh Hallan Conservative Calgary Forest Lawn, AB

I just wanted to make that clear.

4:15 p.m.

President and Chief Executive Officer, Canadian Federation of Independent Business

Daniel Kelly

I have no views other than those.

Our members' position—and mine—is that a strong majority of small firms advocate to get rid of the retail carbon tax.

4:15 p.m.

Conservative

Jasraj Singh Hallan Conservative Calgary Forest Lawn, AB

Thank you.

I'll turn it over to my colleague Dr. Ellis.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Thank you very much.

Dr. Allison, I'll go back to the Canadian dental care program. My colleague just mentioned that the customary fees have increased from 82% to 88%, representing 6% of the budget of perhaps $13 billion, which equates to 780 million more dollars for this botched program.

Are you aware of the concept of balanced billing?

4:15 p.m.

As an Individual

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Would you suggest that margins are quite wide open in dentistry, or are they very tight? Are costs for dentists very high these days?

4:15 p.m.

As an Individual

Dr. Paul Allison

I'm not aware of that. I don't work in dental practice.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Oh. Have you never talked to any dentists about their having difficulty paying their bills, or that their overhead might be 75% or 80% of their gross billings?

4:15 p.m.

As an Individual

Dr. Paul Allison

I have had conversations with dentists about their practice. Some of them talk about how well it's going and others talk about how difficult it is.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

I'm sorry. Are you aware of the concept of balanced billing?

4:15 p.m.

As an Individual

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

What would balanced billing be, in a few words?

4:15 p.m.

As an Individual

Dr. Paul Allison

It's when the provider asks the patient to pay the balance over the insurance or third party payment.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

If you and I were in line at the coffee shop and I bought a coffee that was $3.60 and asked you for the three dollars—or 60¢ even, if I'm being kind—that would be the same type of idea. Is that right?

4:15 p.m.

As an Individual

Dr. Paul Allison

I'm not sure I understood. I'm sorry.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Yes, of course.

That being said, some of your answers suggested that the associations were telling dentists not to sign up for this program. Can you tell the committee exactly which dental associations you spoke to that told members not to sign up?

4:15 p.m.

As an Individual

Dr. Paul Allison

I didn't say that.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Okay. Well, I think we'll have to check the record on that. It was very clear that you answered in the affirmative when my colleague suggested to you that associations were telling dentists not to sign up for this program, which I believe is categorically untrue.

That being said, the concept of balanced billing would mean that the amount not covered by the plan would have to be funded by the patient. Is that correct, sir?

4:15 p.m.

As an Individual

Dr. Paul Allison

I guess so, yes.

4:15 p.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Yes, so—

4:15 p.m.

Liberal

The Chair Liberal Peter Fonseca

MP Ellis, that's your time.

We are up to MP Weiler now, please, for four minutes.

4:15 p.m.

Liberal

Patrick Weiler Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

Thank you, Mr. Chair.

I want to thank Dr. Allison and Mr. Kelly for their testimony already.

The biggest issue I'm hearing from small businesses in my riding, particularly in Whistler, Squamish and the Sunshine Coast, is that they can't find workers because they can't find a place for their workers to live. They're very happy with the investments that are being made in housing and the launch of Canada's housing plan in this budget, which, in my opinion, makes some pretty transformational changes in the way that housing is going to be built so we can close the housing supply gap we have.

Mr. Kelly, what type of an impact do you see this having on small businesses across Canada and their ability to house workers?

4:20 p.m.

President and Chief Executive Officer, Canadian Federation of Independent Business

Daniel Kelly

I can't say that we've done a detailed study of the specific initiatives in the new round of announcements that have come forward. However, I will say that in our survey last year related to the budget implementation, the housing issues shot up as a concern on the part of employers faster than I've ever seen. Five years ago, if you had asked small business owners how concerned they were about housing issues, they would have put that quite low on their list of priorities. In the last couple of years, that has been quite high for the very reason that you're citing. Their concern is for their staff. If they can't find workers, then they don't have anyone to work in their businesses.

Finding measures to get more housing built across Canada is something that small firms definitely support. With regard to the specific measures that have been taken, I'm sorry, but I'm probably not qualified to speak to them, as I've been focused on capital gains taxation and the carbon rebate.

4:20 p.m.

Liberal

Patrick Weiler Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

That's fair. There's a lot to digest in the budget. Perhaps the next time we're able to have you at our committee, we can talk about that.

You mentioned in your opening remarks four taxes that have increased this year, including the modest increase in the excise tax on liquor. You didn't mention, at the same time, that the excise tax is being cut in half on craft brewers. I understand that about 94% of brewers in Canada are below the 15,000-hectolitre threshold under which excise taxes are going to be cut in half. I know that in my own riding, all but one of the breweries—and there are nine of them—fall under that threshold.

I'm wondering what you're hearing about the impact of this measure on those businesses.

4:20 p.m.

President and Chief Executive Officer, Canadian Federation of Independent Business

Daniel Kelly

We were thrilled when the government reduced the planned inflationary increase on liquor excise taxes, and I think the measure taken with respect to beer is a very positive one. You're absolutely right. For craft brewers, that is a big deal.

When we look at liquor taxes more broadly, though, we look at the effect not only on the brewers or the producers of the alcohol products, but also, throughout the food chain, on the restaurants, the bars and others who use and sell these products, with the markup they may have to come up with. That's why I was focusing on the broader issue of the increase in the tax rate, but the beer change was a very good one.