That is all.
Mr. Del Mastro.
Evidence of meeting #22 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was women.
A recording is available from Parliament.
Evidence of meeting #22 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was women.
A recording is available from Parliament.
September 26th, 2006 / 12:55 p.m.
Conservative
Dean Del Mastro Conservative Peterborough, ON
Thank you, Mr. Chair.
Ms. Swift, I read through your brief with great interest. I'm kind of surprised. Are you telling me your members wouldn't prefer more lavish ad hoc programs complete with big cheques and photo ops?
12:55 p.m.
President and Chief Executive Officer, Canadian Federation of Independent Business
Yes, I'm telling you they would not. As a matter of fact, we've done considerable research over the years, and we've found that our members consistently, in all parts of the country, in all sectors of the economy, oppose grants. They realize grants are generally a path to disaster. They end up taxing everybody and benefiting very few.
12:55 p.m.
Conservative
Dean Del Mastro Conservative Peterborough, ON
Thank you. I thought that's what you meant.
Mr. Paton, I read through your brief with great interest as well. We have had a number of groups specifically come forward with recommendations to further reduce corporate taxes. In fact, we are moving towards the elimination of corporate surtaxes and so on.
Can you talk to me about the importance of these moves as we look to attract foreign investment and become more economically viable in the future?
12:55 p.m.
President and Chief Executive Officer, Canadian Chemical Producers Association
Sure.
One of the principles in the last budget was that we need to be competitive with the United States. I would start with that principle. The last budget announced a reduction in the corporate tax rate to 19% over a number of years, which we see as a positive move, plus the capital tax and surtax changes. All those are good steps forward.
But look at, for example, the United States. When you get to capital investment, the average plant we build is $225 million, and under our capital cost allowance the writeoff period for a plant in Canada is about 10 to 11 years. It's about five years in the United States. So if you start adding up those numbers, $225 million being written off in five years as opposed to 10 or 11 years, that's a lot of money. When you're looking at Canada as the investment location for the North American market--because more and more we're just serving the North American market--you're starting out with a huge cost disadvantage just on your ability to reduce that capital. You add to that energy costs, dollar issues, and maybe a few other regulatory issues, and you end up with some significant disadvantages.
On an equal playing field we tend to lose in our industry to the United States because they're bigger--a bigger market, bigger concentrations. You need to get either equal to or better than the U.S., especially in capital investment.
12:55 p.m.
Conservative
Dean Del Mastro Conservative Peterborough, ON
Thank you.
I appreciate your answer. Lower taxes will make us more competitive and more of an investment. I thank you for that answer.
Ms. Biales, I'm going to play devil's advocate with you for one moment. The baby boomers are going to retire as the wealthiest generation in Canada's history. Canada's debt was built largely on investment in the baby boomers.
Why should we give you a tax break, you selfish boomers?
12:55 p.m.
Vice-President, Canadian Association of Retired Teachers
Well, the selfish boomers can look after themselves, but I'm referring to the people who did not have that opportunity. As I mentioned in my brief, for people who started teaching in 1961, when I did, if you married, you lost your permanent contract. If you became pregnant you lost your job. Therefore, I'm talking about those seniors who were disadvantaged a while back. I'm not talking about the baby boomers, because they're the ones I referenced, for whom there will be very little differential between their pensions.
12:55 p.m.
Conservative
The Chair Conservative Brian Pallister
Mr. Del Mastro, she's talking about my mother.
I remind committee members we will reconvene at 3:30 this afternoon. As well, tomorrow, because of the pending vote, we will compress our two panels into an hour each. I look forward to having you all back.
To this panel, thank you very much. They were very stimulating presentations. We appreciate your time and your presence here very much.
Thank you again.
We are adjourned.