Evidence of meeting #18 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cement.

On the agenda

MPs speaking

Also speaking

Richard Paton  President and Chief Executive Officer, Canadian Chemical Producers' Association
Alain Pineau  National Director, Canadian Conference of the Arts
Monique Bilodeau  Vice-President, Finance and Commodity Taxation, Canadian Council of Grocery Distributors
Peter Clarke  Vice-Chair, Canadian Egg Marketing Agency
Robert Ouellet  President Elect, Canadian Medical Association
Pierre Boucher  President and Chief Executive Officer, Cement Association of Canada
Jean-Patrick Brady  President, Quebec Federation of University Students
Robert Goyette  Chairman, Magazines Canada
André Bergeron  Executive Director, Association of Canadian Airport Duty Free Operators
Ron Bonnett  Second Vice-President, Canadian Federation of Agriculture
Michèle Asselin  President, Fédération des femmes du Québec
Bob Hindle  Director, Juvenile Diabetes Research Foundation
Jean-Luc Djigo  Representative, Quebec, KAIROS: Canadian Ecumenical Justice Initiatives
Pierre Morrissette  Executive Director, Regroupement économique et social du Sud-Ouest

2:10 p.m.

Vice-President, Finance and Commodity Taxation, Canadian Council of Grocery Distributors

2:10 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Goyette, if we don't ask you any questions, it's probably because we agree with your demands.

However, I'd like to know whether you are familiar with Bill C-14, which was tabled in the House and which amends the Canada Post Corporation Act.

2:10 p.m.

Chairman, Magazines Canada

2:10 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Does that bill concern you? The members of my party may not support it.

2:10 p.m.

Chairman, Magazines Canada

Robert Goyette

There have been proposals in the past, but I thought that Canada Post had a monopoly in Canada.

2:10 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Will that influence your proposal?

2:10 p.m.

Chairman, Magazines Canada

Robert Goyette

I'd have to find out. I can send you the answer.

2:10 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Thank you, Mr. Goyette.

Thank you, Mr. Chair.

2:10 p.m.

Conservative

The Chair Conservative Rob Merrifield

You have a few seconds left, and Mr. Clarke has an answer for you.

2:10 p.m.

Vice-Chair, Canadian Egg Marketing Agency

Peter Clarke

I was going to give you an example. For an eradication of approximately two million birds, the cost would be roughly $12.5 million in addition to the Health of Animals cost relative to that, which would be an additional $6 million. So if it were a two-million bird eradication, that would be roughly the total I could give you as an example.

2:10 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much.

If you give it to the clerk, it will be distributed. I would appreciate that.

Mr. St-Cyr, you may have one more last shot.

2:10 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

My question is for the Canadian Council of Grocery Distributors, so for Mrs. Bilodeau.

In your first point, you talked about cut fruit and, in your second, about the difficulty in determining which products were taxable and which were not. I know the problem, being the son of a merchant. My parents had a convenience store.

Have you considered the possibility that that responsibility belongs to the supplier of the product? The supplier could consult the Canada Revenue Agency and obtain the certificate proving that its product is taxable or not. In that way, the decision would be made once, and the supplier would inform all retailers whether its product is taxable or not taxable. Wouldn't that be simpler?

2:15 p.m.

Vice-President, Finance and Commodity Taxation, Canadian Council of Grocery Distributors

Monique Bilodeau

In an ideal world, the answer should come from the manufacturers. However, the act is much more specific concerning them. If they neglect or fail to charge the tax, they have a right to go back, even six months later, and charge grocery retailers.

So if a retailer relies on the manufacturer's invoice and is charged the tax six months later, that's a problem right off the bat.

2:15 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

You would have to be sure that the manufacturer had taken the necessary steps with the agency.

2:15 p.m.

Vice-President, Finance and Commodity Taxation, Canadian Council of Grocery Distributors

2:15 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

There would have to be a letter, a certificate or something like that. Perhaps that's an option to consider.

Mr. Clarke, I'd like to address compensation policies regarding a potential outbreak of bird flu. I'm neither for nor against, at least for the moment. I haven't formed a fixed opinion on the subject and I'm trying to see what the situation is.

What is the responsibility of a poultry producer who sells eggs in that situation? You say in your brief that compensation should be taken out of public taxes since it's a public issue concerning everyone and that, consequently, everyone should pay the cost of it. Sometimes we on the committee get the impression that businesses want to individualize profits. When it's profitable, the profits go to individuals, who want to pay as little tax as possible and rely as little as possible on the community. However, when costs are involved, they consider that the community is responsible for paying through its taxes.

What is your responsibility for the potential environmental consequences of your operation?

2:15 p.m.

Vice-Chair, Canadian Egg Marketing Agency

Peter Clarke

Do you mean with regard to an avian influenza?

2:15 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

That's an example, indeed.

2:15 p.m.

Vice-Chair, Canadian Egg Marketing Agency

Peter Clarke

There are obviously repercussions for industry. But we as an industry are always doing things to the best of our ability to make sure we don't have disease outbreaks.

When we have an avian influenza opportunity that shows itself in Canada, it's devastating to our industry. We need assistance in place in case we have to remove our birds entirely, either from a farm or on a mass basis. This is truly devastating to us, because the industry not only loses the birds but loses the opportunity income from the output from those birds.

We're doing all kinds of things on the farm always to make sure we don't have disease issues. We are part and parcel of that program. But when there's a complete disaster, it's over and above what an individual can handle on his or her own.

2:15 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much. The time is gone.

We'll move to Mr. Harvey.

2:15 p.m.

Conservative

Luc Harvey Conservative Louis-Hébert, QC

My question is for Mr. Boucher, but it could also be for other persons. Do you have any labour problems? Do you have trouble finding qualified persons? Do you have trouble keeping your labour force? Are there things that—

2:15 p.m.

President and Chief Executive Officer, Cement Association of Canada

Pierre Boucher

No, not at all, our labour force is skilled and does a very good job. There are no problems of that kind. Labour in the cement industry is very stable. It is specialized and loyal to the industry as a whole.

However, we are concerned about the competitiveness of cement companies in Canada. Will we be able to keep the jobs of this labour force? That's our challenge. I'm appearing before the Standing Committee on Finance, but we also have to comply with environmental policies and ensure competitiveness. That's what we're talking about today. The government is asking us to accelerate our capitalization and the renewal of our cement technologies. Appropriate tax measures must enable us to do that, rather than do it elsewhere.

2:15 p.m.

Conservative

Luc Harvey Conservative Louis-Hébert, QC

I have a question for Mr. Clarke. If tomorrow morning we had a vaccine for bird flu, virus H5N1, who should pay for it?

2:15 p.m.

Vice-Chair, Canadian Egg Marketing Agency

Peter Clarke

If it's in the interest of the public good, which it would be in the case of a vaccine for avian influenza, it would be an opportunity that could be shared federally, provincially, and with the producers

2:15 p.m.

Conservative

Luc Harvey Conservative Louis-Hébert, QC

Don't you think that farmers could vaccinate their chickens, and if the vaccine cost 5¢, they would only have to add 5¢ when they sold their chickens?