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

1:45 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much.

We'll now move to our question and answer period.

I'm just going to ask the committee something. We could go with eight minutes for each individual. I suggest that we do four and four and do two rounds and keep it snappy. All right? Let's do that.

Go ahead, Mr. Pacetti.

1:45 p.m.

Liberal

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

Thank you, Mr. Chair.

I want to welcome the witnesses. Most of you come from Montreal. This is the first time that my level of French will be below that of the other panellists because, thus far, there hasn't been a lot of French.

I'd like to start with Mr. Ouellet. I spoke with a representative of your association about the appreciation of the Canadian dollar. Does that affect you?

1:45 p.m.

President Elect, Canadian Medical Association

Dr. Robert Ouellet

Mr. Chair, the rise in the dollar doesn't affect us very much. At the moment, medical equipment is like cars: prices haven't fallen because they're mainly in U.S. dollars. If the value of the U.S. dollar declines, that will change the price of equipment.

However, the effect of that increase is felt perhaps when we want to repatriate doctors who were living in the United States and to whom we offer Canadian dollars. That was a less interesting proposition in terms of salaries. Given the decline in value of the dollar, it's becoming even more competitive here. It's more difficult in that regard.

1:45 p.m.

Liberal

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

Mr. Boucher, you said that your industry was facing global competition.

Do we export cement?

1:45 p.m.

President and Chief Executive Officer, Cement Association of Canada

Pierre Boucher

Canada exports cement. We are one of the only countries in the world that exports cement.

1:45 p.m.

Liberal

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

We'll fill a boat and send it to China.

1:45 p.m.

President and Chief Executive Officer, Cement Association of Canada

Pierre Boucher

No. We'll fill a boat and send it to the United States instead. The United States is a net importer of cement. Some 2.4 billion tonnes of cement are produced around the world every year, including 1.2 billion in China. The United States produces approximately 125 million and needs 140 million. Canada produces 15 million and needs 10 million. It is one of the only countries that produces more than it needs, which is very favourable.

However, cement is currently arriving in the Port of Quebec from Thailand, and Chinese cement is entering ports in British Columbia.

1:50 p.m.

Liberal

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

Thank you, that's what I wanted to know.

Mr. Brady, Quebec has one of the lowest education levels in the country, but it also has a very low enrolment level. I don't believe you talked about that phenomenon in your presentation.

Is there something we could do?

1:50 p.m.

President, Quebec Federation of University Students

Jean-Patrick Brady

That's an excellent question. What is important to know above all is that the Quebec university system is much younger than that of the rest of North America. For example, Quebec's regional university system is very recent.

In the regions, we see that 70% of students are first generation students. So they're the first ones in their families to go to university. The lag in the graduation rate is being offset. The best way to do that is obviously to maintain a developed Quebec system, and adequate funding is necessary in order to do that. We have to promote access to education. In our opinion, the lowest possible tuition fees, combined with a good loans and bursaries system, are absolutely desirable.

1:50 p.m.

Liberal

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

That's why I'm asking you the question: to date, that hasn't helped. Why not increase tuition fees and find other ways to encourage students to enroll?

Tuition fees don't have any impact on accessibility. However, infrastructures, those of Quebec universities in particular, are starting to suffer the consequences of inadequate investment.

1:50 p.m.

President, Quebec Federation of University Students

Jean-Patrick Brady

As regards access to education and tuition fees, that's always a research topic. A recent study by the Government of Quebec shows that there is a very strong connection between rising tuition fees and education accessibility. In that context, as I mentioned, you definitely have to have—

1:50 p.m.

Liberal

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

I'm not sure about that.

Thank you, Mr. Chair.

1:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much.

Monsieur St-Cyr, four minutes.

December 7th, 2007 / 1:50 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Mr. Pineau, in one of the many surreal debates we sometimes have in Ottawa, the existence of the Quebec film industry was discussed. The government recognizes the Quebec nation, but it doesn't recognize the existence of Quebec's film industry.

Do you think the Quebec film industry exists?

1:50 p.m.

National Director, Canadian Conference of the Arts

Alain Pineau

I think so. Films are produced by Quebeckers and are screened for Quebeckers, who watch them.

1:50 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

All right. In the area of cultural diplomacy, the Department of Foreign Affairs has significantly cut our foreign cultural representation.

Do you think that has an impact on the cultural community?

1:50 p.m.

National Director, Canadian Conference of the Arts

Alain Pineau

Yes. Moreover, a one-day conference was held on the issue here in Montreal 15 days ago. Not only did we talk about those cuts, which is one thing, but we also addressed the topic of cultural diplomacy. The proceedings of that conference will be published. We already intend to share them with the members of the Standing Committee on Canadian Heritage, but we will be pleased to share them with you as well.

1:50 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Thank you very much.

Mr. Brady, I congratulate you on your brief, in which you recall, in particular, that the fiscal imbalance must be corrected by reinvesting $4.9 billion in the next budget to restore postsecondary education transfers to the levels where they stood before they were significantly cut by the Liberal government in 1995. You emphasized that those transfers must be made on an unconditional basis. That's very brave, given the government we have in Quebec City. That said, it's up to us in Quebec to make do with that government.

However, I'd like you to tell us about tax credits. Your colleagues from certain Canadian associations and federations say that tax credits for tuition fees and education are not helpful to students because, most of the time, they don't pay any tax. It's after their education, when they don't need that money, that they could use them. They suggested that these credits be simply abolished and that they be used to finance accessibility directly by transferring them, for example, to the provinces or by putting bursary programs in place.

Do you agree on that measure?

1:50 p.m.

President, Quebec Federation of University Students

Jean-Patrick Brady

That option can be considered. It must be understood that, in some cases, tax credits are given to parents who fund their children's education. That's why you have to be careful before you take direct action on that. But that can be argued. Obviously, the purpose is still to preserve access to education.

1:55 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Thank you very much.

Mr. Ouellet, your second recommendation is that high-calorie, low-nutrition foods be taxed in order to eliminate obesity. I think that idea is brilliant. However, we heard the presentation by Ms. Bilodeau, who will perhaps be less in agreement.

How can we implement that? What do we do if fruit and chocolate are mixed in the same container?

1:55 p.m.

President Elect, Canadian Medical Association

Dr. Robert Ouellet

You're asking me technical questions that they find hard to answer when they involve only fruit. It may not be easy to apply, but the principle is not to tax foods such as fruit, which she referred to, but rather foods that are harmful to health, particularly that of our teenagers and children. How will that be done exactly? I don't believe the Canadian Medical Association has all the answers, but the principle is important.

1:55 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Would you go so far as to say that, in a restaurant, apart from a particular fat or sodium content, one product should be taxed more than a product with lower content?

1:55 p.m.

President Elect, Canadian Medical Association

Dr. Robert Ouellet

Once again, we're sort of getting back into cooking—

1:55 p.m.

Conservative

The Chair Conservative Rob Merrifield

I'm sorry, it's a great line of questioning, but we'll get into it again, I'm sure.

I believe it's Monsieur—

1:55 p.m.

Conservative

Luc Harvey Conservative Louis-Hébert, QC

Mr. Mulcair, no?