Evidence of meeting #42 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was provinces.

On the agenda

MPs speaking

Also speaking

Martin Godbout  President and Chief Executive Officer, Genome Canada
Bastien Gilbert  Chief Executive Officer, Regroupement des centres d'artistes autogérés du Québec, Mouvement pour les arts et les lettres
Lorraine Hébert  Executive Director, Regroupement québécois de la danse, Mouvement pour les arts et les lettres
Diane Francoeur  President, Association of Obstetricians and Gynecologists of Quebec
Christian Blouin  Director, Public Health Policy and Government Relations, Merck Frosst Canada Inc.
Trevor Hanna  Vice-President, Federal and International Affairs, Quebec Federation of University Students
Jack Robitaille  Vice-President, Union des artistes
Gilles Gagnon  President and Chief Executive Officer, Aeterna Zentaris Inc., Canada's Research-Based Pharmaceutical Companies (Rx&D)
Brigitte Nolet  Vice-President, Policy, Research and Scientific Affairs, Canada's Research-Based Pharmaceutical Companies (Rx&D)
Denis Juneau  President, Regroupement des cégeps de la région de Québec
Luc Godbout  Professor, University of Sherbrooke
Denis Patry  Président, Chambre de commerce de Québec
Pierre Langlois  Director of Government operations, Quebec Federation of Real Estate Boards
Pierre Patry  Treasurer, Confédération des syndicats nationaux
Alain Kirouac  General Director, Chambre de commerce de Québec

11:30 a.m.

Président, Chambre de commerce de Québec

Denis Patry

I did not mention it because the government has already committed to reducing it to 5%.

11:30 a.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

If you have to choose between a decrease in the GST from 6 to 5% or a tax cut, what would you choose?

11:30 a.m.

Président, Chambre de commerce de Québec

Denis Patry

If it were up to me, I would never have decreased the GST. I would simply have reduced personal income tax.

11:30 a.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Very intelligent, thank you.

11:30 a.m.

Conservative

The Chair Conservative Brian Pallister

Thank you very much.

The prerogative of the chair is to ask a question. I have just one or two.

According to the top candidate in the leadership race for a particular political party, it would be a good idea to hold another constitutional debate.

Mr. Langlois and M. Patry, what impact do you think another constitutional debate on Quebec's place in the federation would have on business?

11:30 a.m.

Director of Government operations, Quebec Federation of Real Estate Boards

Pierre Langlois

Obviously, for Quebec industry and for its economy a constitutional debate may not be the best thing at this point. Even though one day Quebec's place within or outside the federation will have to be clearly determined, I do not think that re-opening the constitutional debate would be a good thing for Quebec business.

11:35 a.m.

Conservative

The Chair Conservative Brian Pallister

Thank you.

Mr. Patry.

11:35 a.m.

Président, Chambre de commerce de Québec

Denis Patry

I think that it would be using its energy, which is being misdirected, at the wrong time. We have several other problems to deal with. I personally would address the productivity problem and the labour shortage problem before dealing with the Constitution.

11:35 a.m.

Conservative

The Chair Conservative Brian Pallister

Thank you very, gentlemen.

Mr. St-Cyr, you have four minutes.

11:35 a.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Thank you, Mr. Chairman.

My question is for Mr. Patry. It does not necessarily deal with one of the subjects in his actual brief, but rather in the Chambre de commerce de Québec.

Over the weekend, the Bloc Québécois held the forum Québec, an international forum where business people were invited to present projects supported by the Quebec City region. For instance, la Boîte à science came to present a science centre project for Quebec City; it is the only major Canadian City which does not have a science centre. A centre of excellence also made a presentation on global warming. Several projects were presented and supported mainly by the Chambre de commerce de Québec and the business community as a whole.

Yet, in the days following this event, instead of supporting these community projects, some conservative politicians focus on discrediting them as being far-fetched, pie in the sky, et cetera. There was also a project for a high speed train which the Quebec business community has been asking for a long time. These trains exist in Europe and the United States.

Why should we not have a profitable high speed train between Quebec, Montreal and New York, given our similar population density, distances and clienteles, when the United States does?

Are these Quebec City projects, as proposed during the forum, really far-fetched and not worthy of consideration, as conservative politicians from Quebec would have it? Are these not realistic projects? Instead of trying to destroy them, these people should support them and defend them in Ottawa in order to make them happen for the advancement of the Quebec City region.

11:35 a.m.

Président, Chambre de commerce de Québec

Denis Patry

That is an important question, Mr. St-Cyr. I am president of the Comité de la fiscalité et des finances publiques. The director general of the Chambre de commerce de Québec is right behind me. I do not know if it would be possible for him to respond to your question. Mr. Kirouac may be more comfortable than I am doing that.

11:35 a.m.

Alain Kirouac General Director, Chambre de commerce de Québec

With respect to the two projects that we discussed this weed-end...

11:35 a.m.

Conservative

The Chair Conservative Brian Pallister

I am sorry, sir.

Please identify yourself.

11:35 a.m.

General Director, Chambre de commerce de Québec

Alain Kirouac

My name is Alain Kirouac. I am vice-president and director general of the Chambre de commerce de Québec.

Thank you.

I will answer your question on the two projects you mentioned. The high speed rail system between Montreal and Quebec and other destinations such as New York or Windsor, and the Boîte à science. These are indeed two projects which were prioritized during the 2005 Economic Forum of the Chambre de commerce de Québec.

So, they are supported by the community. The chamber will indeed continue to support them and promote them. We will continue to lobby for them.

11:35 a.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Should I conclude that you expect to receive support from local politicians for these two projects?

11:35 a.m.

General Director, Chambre de commerce de Québec

Alain Kirouac

That is as true today as it was under the previous Canadian government. These are projects which the region supports and which it will indeed continue to promote.

11:35 a.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

I would say that it is perfectly legitimate to have local politicians advocating local projects. That is what they are paid to do. You are absolutely entitled to expect that.

11:35 a.m.

General Director, Chambre de commerce de Québec

Alain Kirouac

Thank you.

11:35 a.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

I have a question for Mr. Godbout. I would like to get back to the issue of the fiscal imbalance. We agree that over the short term there is a need for federal transfer payments to rectify the current situation.

But what would be the advantage and the need, over the medium- and long- term to have these transfers whether they be tax transfers...

11:35 a.m.

Conservative

The Chair Conservative Brian Pallister

Thank you very much, Mr. St-Cyr.

We will continue with Mr. Blaney.

Welcome, sir. You have four minutes.

11:35 a.m.

Conservative

Steven Blaney Conservative Lévis—Bellechasse, QC

Thank you very much, Mr. Chairman.

It is a pleasure for me to participate in these meetings of the Standing Committee on Finance. As a conservative member of Parliament from the Quebec city region, I feel doubly fortunate.

Twice, while listening to you, I felt as though I had been present at a historic moment, because I was there, last December, when Mr. Harper delivered a speech in which he committed to settling the fiscal imbalance within the Canadian Federation. I have also personally announced, six month prior to the Bloc Quebecois, that the conservative team from Quebec supported the Boîte à science project, the Centre d'interprétation scientifique et technologique, that we are in regular contact over and working on. We are pleased to have the support of the Bloc Quebecois for this project.

We wonder why the previous government over the last 13 years and despite opposition representations at the time failed to ensure that Quebec City would have a science centre when the 20 biggest cities in Canada have one and Quebec city is the seventh biggest in Canada.

So, yes, I am feeling though I am part of history in the making, even more so because in our most recent budget, $3.3 billion were granted by the federal government as immediate assistance to the provinces to settle the fiscal imbalance. Along with the budget, well, yes indeed, this was the first time any federal government was willing to recognize that there was a problem within the federation.

However, I would have one critical thing to say to our panel of academics, union and business representatives.

11:35 a.m.

Treasurer, Confédération des syndicats nationaux

Pierre Patry

We can take it.

11:35 a.m.

Conservative

Steven Blaney Conservative Lévis—Bellechasse, QC

You did not discuss the imbalance at the municipal level. As a member for Lévis—Bellechasse, I can tell you that municipalities are having a hard time when it comes to infrastructures, drinking water, waste water and roads. The needs are pressing. I think that these are things that should also be considered.

Mr. Patry, I think we must also consider the burden for taxpayers, which is also part of the imbalance within our society. Moreover, we have to wonder how much of the public burden individuals should shoulder.

My first concrete question is for Mr. Juneau. The Lévis-Lauzon Cegep is in my riding. You draw a relationship between restoring post-secondary education funding and productivity issues. We know there are problems, namely in the field of science and technology, in the Quebec city region.

How can increased funding of post-secondary education contribute to improving scientific training in the Quebec city region, where there is a need?

11:40 a.m.

President, Regroupement des cégeps de la région de Québec

Denis Juneau

First of all, that has to be done earlier than at the post-secondary level. In high schools, you need to have Boîtes à sciences and also all sorts of organizations which arouse an interest in science among young people. Our CEGEPs need essential equipment, specifically computer equipment.

For instance, at the Sainte-Foy CEGEP, there is a radiation-oncology program. We currently need two accelerators. We have to send our students out, after 8:00 p.m. and until midnight, to work on this equipment elsewhere, because we do not have the equipment ourselves. We need it.

11:40 a.m.

Conservative

Steven Blaney Conservative Lévis—Bellechasse, QC

All right. You need equipment for academic institutions so they can provide better training.