Thank you, Mr. Chair.
Thank you, of course, to our witnesses for appearing today.
Canadians who are tuning in and listening to the hearings today might get the impression that what this committee is discussing is the government's climate change policy. We're in fact talking about Bill C-311, which is the NDP's bill with respect to climate change. While we appreciate the general discussion on climate change policy, we could have been talking, for example, about the Liberals' failure to meet their minus 20% target over 1988 emissions by 2005 that was in their first red book, for example. But we're not here to talk about that. We are talking about Bill C-311.
Mr. Lloyd, I appreciate your comments with respect to the accelerated capital cost allowance, not only to inform the work this committee does but because of course we are in pre-budget discussions with respect to the upcoming budget in the new year. I assume that you've already made a presentation to that committee, but we can certainly make that a discussion as well. I will point out that it was originally a unanimous resolution by the industry committee that was supported by all parties. Unfortunately, the three opposition parties at one time or another have voted against those measures in budgets.
Going on to Bill C-311, one of the things we've heard in testimony already before this committee, which I think is very important.... It's not the government's opinion; it was an industry opinion. We had the Pew Center on Global Climate Change and Environment Northeast before this committee talking about the negative consequences of widely dissimilar targets between Canada and the United States.
Just to get us onto a page where we are comparing apples to apples, the Government of Canada's target, translated to a 1990 baseline, is roughly minus 3%. The U.S. target, depending on which one you take.... Neither target reaches minus 10%. It's a single digit over 1990. The NDP's targets are about minus 25% over 1990 levels by 2020.
Both organizations talked about serious trade problems that could arise and said that this could create political problems as well. I think one of them they mentioned was the flow of investment out of Canada and into the United States if we had a significantly more rigorous target within a cap-and-trade system than the United States.
Can you comment on what widely dissimilar targets within that kind of system would mean to your industries? Can you confirm whether that would mean a capital outflow for the purchase of credits, for example, on the U.S. side, where it might be cheaper? Can you walk us through what that will mean for your sectors?
Mr. Boag, I don't know if you want to start. Or maybe Mr. Lloyd does.