Evidence of meeting #27 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
Noon
Conservative
Mike Wallace Conservative Burlington, ON
I'll give you my card and you can e-mail it to me.
Werner, I have a question for you. You got me a little confused here. I certainly understand the dollar going up and the margins being squeezed, mainly due to the dollar, but you have the inputs going up also. Why aren't they getting squeezed? Why aren't their prices lower? Why is the finished product higher but the inputs aren't also being squeezed?
I don't understand that logic.
Noon
Vice-President, B.C. Division, Canadian Manufacturers and Exporters - BC Division
Inputs more in terms of raw materials--steel, or wood, or, because of the energy, all of the plastics--are all going up. We're seeing job losses because of outsourcing. But again, it's a two-edged sword. Companies are going to international companies to source parts, components, and pieces as a way of remaining in business during this margin squeeze.
The big issue here is that the first thing companies do when they're faced with a margin squeeze is to cut new product development. They cut training, they cut new research. Those are great short-term strategies to keep your cashflow moving while you try to get the company streamlined and moved forward. If you don't do that quickly enough, and if you're not able to do that over the medium and long term, those things will kill you.
Noon
Conservative
The Chair Conservative Brian Pallister
Thank you, Mr. Wallace.
Verna, I hate to see any panellist left out, so before we conclude, perhaps you could give us some information. You alluded to the homelessness situation in Vancouver. I'm interested in knowing what statistical trends you're seeing over this last period of time in terms of the degree of homelessness in this region.
Noon
Senior Planner, Policy and Planning Department, Greater Vancouver Regional District
We did regional counts of absolute homelessness in this region in 2002 and 2005. Between those years, the count doubled. It went from 1,000 to over 2,200 persons as of March 2005.
We're seeing an increase in persons at risk of homelessness. Currently about 55,000 households in this region are considered at risk of homelessness, because they are paying more than 50% of their low incomes to housing.
Noon
Conservative
The Chair Conservative Brian Pallister
So you're attributing that mostly to rather rapid increases in rental rates and so on.
Noon
Senior Planner, Policy and Planning Department, Greater Vancouver Regional District
And to low incomes. We have incomes that are lower than the national average, and they are decreasing in this region.
Noon
Conservative
The Chair Conservative Brian Pallister
Thank you.
To all of the panellists, we have very much appreciated this very stimulating discussion. I know I speak for the committee when I thank you sincerely for your participation today. It's appreciated.
We are adjourned.