Evidence of meeting #50 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.
A recording is available from Parliament.
11:20 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
So even though you were consulted and you told the previous government that, no, you needed more money for it, actually more money was cut. Is that correct?
11:20 a.m.
President, Hotel Association of Canada
It depends on what period of time you're looking at. In fact, in the year 2002, following 9/11, the Government of Canada did in fact support additional funding for—
11:20 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
It was for those emergencies. Okay.
The next question is for Mr. Jones, and maybe Mr. Boughen.
This program is being cut because--and you've all admitted it, although maybe not Dawn--there is an issue with the efficiency of use of taxpayers' money, which we're responsible for. You have come today, at the 11th hour, as far as I'm concerned, with programs that are privately run. How fast can we get this? Why have you not done this before? Why are we hearing it today and not prior to today?
11:20 a.m.
Vice-President, Public Affairs, Tourism Industry Association of Canada
In answer to that question, the announcement of the program was on September 25. We had just put the proposal for a private sector service delivery model together. So it's with you now.
I very quickly want to make the point, and it's not unique to the current government, that tourism has not been a central focus of the industry department for a long time. The automotive and the aerospace sectors have been the main focus of that department. This industry has been lost in the reeds, and we need a renewed focus on it. It's the number one or two industry internationally, at the moment.
11:20 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
My question, though, is this. If you had had a heads-up earlier than September--two or three years ago--that things weren't great in this program, you may have been able to develop that sooner. Is that an accurate statement?
11:20 a.m.
President, Global Refund Canada Ltd.
I just want to clarify that we are a private company. We're not funded by the government. We already have a user-pay system. We already charge the tourist 20% to do it. We've been doing it since 2002, and we're just suggesting that the entire market be run that way, at no cost to the government.
11:20 a.m.
Conservative
The Chair Conservative Brian Pallister
We'll continue with, and possibly conclude with, Mr. Pacetti.
11:20 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you, Mr. Chairman.
Thank you to the witnesses. It's always interesting to have a panel, so we have different points of view. This one seems to be more or less on the same wavelength.
Before I ask my one and only question, Mr. Pollard, what do groups that come here for conventions get back? I don't think hotel and food is eligible. What would their GST rebate comprise?
11:20 a.m.
President, Hotel Association of Canada
First of all, it's not a rebate, just so I'm very clear. It's an exemption, as a go-forward. So it's not something we collect and then rebate back. For the convention touring group, that's the way it is. It's based upon 6% for the rooms, but because food is not a component of it, that part is not included.
11:20 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
So everything else related to the rooms, the rental of the convention hall—
11:20 a.m.
President, Hotel Association of Canada
It wouldn't include going to an attraction. It would be the convention hall, but it wouldn't be the component that is related to food and beverages, for example.
11:20 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
It doesn't include consumables. And the hotel rooms are exempt.
11:20 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
My question is a general question, maybe more along the lines of what Mr. Wallace just asked. If we took the $78 million in savings and put it back into the tourism industry, what would you feel? Would that suit your needs?
Perhaps we can just go around the table.
11:20 a.m.
President, Hotel Association of Canada
Certainly any investment by the Government of Canada and the Canadian Tourism Commission would be welcomed. I have no difficulty with that, whatsoever. We understand the competitiveness agenda of the government, and we want to work with them to find a solution that can benefit all of us.
11:20 a.m.
Director, Federal Government Relations, Retail Council of Canada
We would welcome additional funding for the tourism industry, but the impact of eliminating the GST rebate program would still be there. My members would not be able to use it as a marketing tool to say, when someone walks into their shops, “If you buy this item right now, you can save 6% on it”.
11:20 a.m.
Liberal
11:20 a.m.
Vice-President, Public Affairs, Tourism Industry Association of Canada
Rather than taking these decisions in isolation and doing one-off investments, if both governments had followed through on the elaboration of the national tourism strategy that Minister Rock announced in December 2003, then when it came time to decide on the kinds of investments to make or where to make cuts, we would have had a rational overall plan in which to fit those kinds of things. I'd like to see the elaboration of a national tourism strategy. I think that would help, and then we'd understand whether an investment in marketing was more appropriate than one in the VRP.
11:25 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you.
I'll ask Ms. Hardy and Mr. Fritsche.
11:25 a.m.
President, Local 90006 (PEI), Union of Taxation Employees
I just want to mention that in the years after this program came to Summerside, the tax centre employees who process the rebates forwarded suggestions to make the program better, and one of them was to market it. The marketing aspect of the program is missing. That would certainly increase the take-up on the program.
11:25 a.m.
Liberal
11:25 a.m.
Economist, Canadian Tourism Research Institute, Conference Board of Canada
To echo some of the comments of my colleagues here, the CBC would certainly appreciate more funding. It would definitely benefit the Canadian tourism industry and the economy as a whole. However, getting rid of the GST rebate program will constitute a definite competitive disadvantage for Canada that will not go away. In a market that's becoming increasingly—