Canadian Heritage Committee on May 30th, 2019

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

You're non-partisan.

[Daniel Bernhard]

That's correct.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Could you provide the committee with the list of elected federal officials whom you have lobbied over the past four years?

[Daniel Bernhard]

That's a matter of public record. It's all in the lobby registry. We don't need to, but we do.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Could you provide it to the committee?

[Daniel Bernhard]

Sure. We can.

[Jim Thompson]

Yes. Our audited financial statements are online as well.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

I'd ask the clerk to circulate that to the committee members once it's received.

[The Chair, Liberal, Julie Dabrusin]

Yes, it will be circulated once it's given to us.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Thank you, Madam Chair.

[The Chair, Liberal, Julie Dabrusin]

Mr. Nantel, you have the floor for seven minutes.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Thank you, Madam Chair.

Gentlemen, thank you very much for being here.

I have been fighting for eight years for the issues you have just raised. I have been using the same arguments as you, but certainly not as effectively. Congratulations. It is really good to hear.

Frankly, the NDP often fights alone on these issues. Earlier, you actually said that the opposition parties must take a stand. What did you mean by that, especially in light of the questions my colleagues have just asked you?

[Daniel Bernhard]

Some parties have not taken a position. You are right, the leader of the NDP announced twice, last August and again a few weeks ago, that he supported a series of policies, including closing the tax gap in section 19 of the Income Tax Act. So there is a degree of support on the NDP side. We are pleased to see that some parties are convinced of how important these issues are.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

I'm glad to hear you say that. For some time now, I have had the feeling that there is a sort of apathy towards all-powerful lobbies. As I'm saying these words, I realize that they are very predictable, because we are used to reading them.

We grovel before companies like Google and Facebook that do business here without paying taxes. They control more and more things. However, it is incredible that Canada hosted the meeting earlier this week.

Some countries are taking the bull by the horns in terms of legislation. I often refer to France, probably because of my bias as a French-speaking Quebecker. That country has sought a percentage not only of profits, but also of economic activities. This simply means that the companies are present, with local content and contributions.

How do you explain the fact that Canada is doing absolutely nothing? The Conservative government did nothing for 10 years. When the Liberals were elected in 2015, they said it was an absolute priority, but four years later, they still have done nothing.

[Daniel Bernhard]

I can't explain why exactly. However, I can say that the signs are promising. For example, the Government of Quebec, which tends to be middle-of-the-road, has passed legislation to collect sales tax from foreign digital service providers, such as Netflix. Even here, at home, we have examples of actions that the government can take.

I would like to add that applying tax laws and rules equitably is not a matter of ideology or politics. A number of political theories are based on these principles, including those of the Conservative Party, the Liberal Party and the NDP. Those principles are outside the realm of politics, in a sense.

I hope all parties can agree on these issues. They have the opportunity to take advantage of the very strong public support. It is up to the parties to seize this opportunity.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

I personally had two areas of concern when I arrived in Ottawa eight years ago: the fight against climate change and the defence of cultural industries. There are many parallels to be drawn between the two. In both cases, we can say that no one can be against motherhood and apple pie. Of course, we want to preserve our planet. Of course, we want to ensure our presence on the screens. However, in both cases, it seems that the government does not want to take the necessary measures.

In terms of web giants, the first thing to do is to ensure that, if a transaction takes place in Canada, the GST is applied. However, every time we ask the Minister of Finance a question, he gives us the runaround, tells us that it is complicated and assures us that he is meeting with the representatives of these multinationals in the G7 and G20.

As you pointed out, the Conservatives' way of thinking is that everyone must pay their taxes, and that's a given. We expect that rigidity from them. We can imagine that the Liberals want to maintain the services that go with those taxes.

How can this attitude be explained, if not by a short-sighted view of the election? In other words, they do not want to increase Canadians' bills by 50¢, even though Netflix has increased its rate by 33% this year.

[Daniel Bernhard]

They have increased it twice.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

How can we explain that? Is this a case of a short-sighted view because of the election?

[Daniel Bernhard]

These companies are not charities. They therefore charge the highest price they think they can get. This includes taxes.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Of course.

[Daniel Bernhard]

I have left economic theory behind in the past, but I agree with you that all parties, Conservatives, Liberals and New Democrats, have the opportunity to adopt this policy. It makes sense and can help us to fund public services.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Hasn't the Netflix tax issue been blown out of proportion? It has become a sort of phenomenon. As soon as we talk about a tax or increase, everyone is in a state of shock. However, this is actually perfectly normal. After all, I pay GST on my summer tires.

[Daniel Bernhard]

People are opposed to the Netflix tax; no one has ever proposed it.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Yes, there is no such thing.

[Daniel Bernhard]

People are opposed to it. So it's political.