Finance Committee on Sept. 15th, 2009

[Manny Jules]

Let me give you the example of Nisga'a. Nisga'a is the only first nation in the country that has this ability right now. They're going forward with a vote to privatize individual holdings at the end of October, on October 30. It comprises less than one two-thousandths of the entire land holdings that the Nisga'a have.

In the majority of cases, you're going to find that this will not be a significant portion of the reserve. There will be lands set aside for different uses, whether they be, in my particular case in Kamloops, rangeland uses, forestry uses, or the like. The individual community would choose which subdivisions would be made available for privatization.

My view is that if this doesn't happen, first nations will never, ever be able to catch up to the housing needs that are present in the communities right now. This would give a real governmental role for the first nations to be able to govern their own lands without interference from anyone else.

[Martha Hall Findlay, Liberal, Willowdale, ON]

Thank you.

Just to follow that through, then, in order for the market to work and in order for people to get mortgages from the banks, if there is a default, the normal circumstance is that the bank would then take title and be in a position to sell it to whomever. If the market were truly able to work, it would be open to the bank to then turn and sell it to whomever.

[Manny Jules]

Exactly, yes, that's right.

[Martha Hall Findlay, Liberal, Willowdale, ON]

Okay.

[Manny Jules]

You know, one of the things that Canadians hold dear to their hearts is individual private property. There's no way we want to jeopardize that.

As a matter of fact, we are establishing, through an agreement I have with Thompson Rivers University, various training programs through the institute called the Tulo Centre of Indigenous Economics. They will help facilitate that. There obviously is going to be risk, but at the same time, we're going to be tempering that through proper education.

Also, just to drive this home, I mentioned and quoted Hernando de Soto. My tax commission has a memorandum of understanding with the Institute for Liberty and Democracy, which is based in Peru. We're working together on the same objectives in Peru, working with the indigenous populations to promote private property regimes in the country of Peru, and he is advocating the same here for first nations.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Ms. Hall Findlay.

Thank you to all the witnesses for your presentations and your responses to our questions here today. We'd obviously like to continue the discussion, but we do have another panel right away. We want to thank you for your appearance here today.

We will ask the second panel to come forward as quickly as possible.

We'll suspend for a minute or so.

[The Chair, Conservative, James Rajotte]

I call to order the second part of our 39th meeting. We have another six witnesses and are continuing our discussions in these pre-budget meetings.

In order of appearance, we have, first of all, the Canadian Airports Council. Second is Orchestras Canada. Third is the Canadian Labour Congress. Fourth is Polytechnics Canada. Fifth is the Canadian Chamber of Commerce. Last, we have the Multiple Sclerosis Society of Canada.

In that order, I'll ask each of you to present for a maximum of five minutes in order to allow some time for questions from members.

Mr. Facette, please, when you're ready.

[Jim Facette, President and Chief Executive Officer, Canadian Airports Council]

Good morning, Mr. Chair.

Good morning, everyone. Thank you for giving me the opportunity to present our point of view on your debate and perhaps provide input for your recommendations to the Minister of Finance.

Mr. Chairman and committee members, you should have available to you our full submission to this committee. It addresses three areas that we believe go to this government's jobs and competitiveness agenda. The elimination of airport rent, the creation of true foreign trade zones, and the need to reduce the regulatory burden will all create more jobs and make our airports in Canada more competitive with those of our neighbours in the United States and elsewhere in the world.

In the next few minutes, for the purposes of keeping this brief, I will touch on airport rent and foreign trade zones.

First, on airport rent, for all the benefits and positive elements of Canada's unique airport management model, the payment of rent to the federal government by airport authorities remains the single largest impediment to our members' growth. This is why the Canadian Airports Council recommendation to this committee is that your report to the Minister of Finance include a recommendation that airport rent be eliminated.

Airports in the U.S. not only do not pay rent, but they also do not pay municipal property taxes, and they benefit from federal and municipal funds to cover their infrastructure needs. Our members compete with airports in the U.S., and indeed with airports around the world, in securing service from air carriers from all over the world. Airlines today have many options open to them when it comes to deciding which markets warrant their attention. If an airport in Canada is more expensive to service than a similarly sized market elsewhere, the Canadian airport is at a competitive disadvantage.

Meanwhile, for many of our members' airports near the border with the U.S., the competitive nature of air service is even more obvious. A prime example is the 1.7 million Canadian travellers each year who travel through Buffalo Niagara International Airport. That is one-third of Buffalo's five million passengers. As a result of so many Canadians, the airport is in fact expanding its infrastructure.

This is happening because U.S. airports enjoy a cost advantage. According to the World Economic Forum, Canada ranks seventh in the world in terms of tourism and competitiveness, but due to factors such as rent, taxation levels, and the excise tax on aviation fuel, Canada is ranked 110th out of 124 countries in terms of price competitiveness.

If airport rent is eliminated, then, what will happen? A recent study conducted by the Canadian Airports Council estimates that the elimination of rent would result in 590,000 new air travellers a year, who will pump an additional $304 million in spending into the economy. Total new employment generated would be about 5,330 person-years and total economic output would be $710 million a year. When combined with the tremendous economic spinoffs from the elimination of rent, as outlined earlier, we contend that this move would be a valuable direct investment in Canada’s aviation and tourism sectors.

Mr. Chairman, my second and final point this morning is on foreign trade zones.

As the federal government continues its efforts to improve Canadian industrial competitiveness through trade liberalization, which we fully support, we also seek your support for a program that has enjoyed success abroad but has yet to be developed in Canada, and that is true foreign trade zones. The Canadian Airports Council, the Canadian Chamber of Commerce, and the Canadian Manufacturers and Exporters are united in our support for this initiative.

A key component in the prosperity of global trading hubs is their proximity to foreign trade zones. Most, if not all, have foreign trade zones nearby. By lowering barriers to trade, these zones are designed to help countries improve their relative competitiveness as hubs of trade and transportation. Accordingly, the concept has grown quickly and has enjoyed economic success throughout the world.

Free/foreign trade zones are facilities where goods from outside a country can be stored or processed duty- and tax-free prior to (a) shipment to another country or (b) import via normal custom process into the domestic economy. Foreign trade zones have proven to be powerful economic generators providing a number of advantages to their users, firms involved in international trade.

The CAC requests that this committee recommend to the Minister of Finance that this government take whatever measures are necessary for the creation of true foreign trade zones in Canada.

Mr. Chair and committee members, I will end my oral presentation here. Thank you very much for the opportunity this morning.

[The Chair, Conservative, James Rajotte]

Thank you for your presentation.

Second, we'll go to Ms. Carleton, please.

[Katherine Carleton, Executive Director, Orchestras Canada]

My name is Katherine Carleton. I'm executive director of Orchestras Canada/Orchestres Canada. We are a national membership organization with a membership of approximately 200 orchestras, ranging from grassroots, amateur, and youth orchestras to our largest professional ensembles. We have member orchestras in communities large and small in every Canadian province.

We are all well aware of the challenges the Government of Canada faces, both in managing current commitments and in making strategic investments in Canada's future. We are honoured and pleased to take part in this pre-budget consultation process.

I know your time is limited. I also know you've studied the brief that we submitted, and you have many more witnesses to hear from. Accordingly, I will endeavour to make my points quickly.

I want to start with a word of thanks. Canadian orchestras sincerely appreciate the significant and consistent investments made in arts and culture by the Government of Canada and the recognition that we are part of an important $46 billion cultural sector responsible for 3.8% of Canada's total real gross domestic product in 2007. Specifically, we are grateful for a one-time $50 million increase to the Canada Council for the Arts announced in May 2006, a permanent $30 million increase to the Canada Council announced in July 2007, and a recent five-year renewal of several critical Canadian Heritage funding programs listed in our brief. We are grateful for these investments. They are important and they have helped many significant things happen.

While the proportion of federal investment in Canadian professional orchestras made up less than 10% of their total revenues in 2007-08, it is really an important investment. It's a foundation that helps orchestras generate earned and contributed income, helps them recruit volunteers, helps them plan effectively, and helps them ensure that their offerings are accessible to Canadians. With your help, audiences are growing. We have seen a 20% increase in audiences for Canadian orchestras in the past four years alone. We are grateful for these fundamental investments in our sector. We have worked hard to maximize their impact, and we believe that the health and vitality of the sector, despite the challenges presented by the economy, speaks to the effectiveness of this investment. In short, thank you.

That being said, we know there are still unmet needs in Canadian communities and undeveloped potential in Canadian orchestras. In our brief, submitted back in August, we made three recommendations to the standing committee, and I will quickly summarize them here.

First of all, we recommend that the Government of Canada increase the annual base budget of the Canada Council for the Arts to $300 million by fiscal year 2012-13. This would represent a permanent increase of $40 million per annum in each of the next three years to the council’s current allocation, consistent with the council's already articulated strategic and operational plans. I brought along copies for each of you to study at your leisure. The increased investment will help Canadian artists and arts organizations strengthen their artistic practice, innovate in their use of technology, respond to demographic and cultural shifts in Canadian society, and develop and reach new audiences. The Canada Council for the Arts is an accountable, respected, and transparent organization. I will also note that they received a clean bill of health from the Auditor General in a special examination in the summer of 2008.

Second, we recommend that the Government of Canada consider increasing the charitable tax credit from 29% to 39% on gifts between $200 and $10,000 to help stimulate the flow of charitable gifts from middle-income Canadians. In recent years, our members have been extremely successful in increasing revenues derived from private sector sources, but there's a troubling trend that we believe must be reversed. Statistics Canada and the Canada Revenue Agency reported that only 24% of all Canadian tax filers claimed charitable donations in 2007, compared to 30% in 1990--this despite the fact that the federal government and, for the most part, provincial governments have been lowering taxes over this period, which should result in taxpayers having more to give. As well, in the 2007 Canada Survey of Giving, Volunteering and Participating, more than half of all donors indicated that they would increase their charitable giving if there were better tax credit incentives to do so. We believe this is something that would help not just orchestras but all registered Canadian charities.

Finally, we recommend that the government invest in a $25 million market access and development fund that will help connect Canadians to arts and culture and help export-ready Canadian cultural products reach the global marketplace. We believe this is an opportunity for Canada to show off its best to Canadians and to the world, and accordingly, we believe that a dedicated funding program will help to do this.

We have been encouraged by the nature of our relationship with the Government of Canada. We feel we speak from experience. Consistent, thoughtful programs of support have contributed to the community value, capacity, and stability of Canadian orchestras.

Thank you very much.

[The Chair, Conservative, James Rajotte]

Thank you for your presentation.

We'll go to the Canadian Labour Congress. Mr. Yussuff, please.

[Hassan Yussuff, Secretary-Treasurer, Canadian Labour Congress]

First of all, on behalf of the Canadian Labour Congress and its 3.2 million members, we thank the committee again for affording us the opportunity to make our presentation today.

The CLC calls on the federal government to address three key issues in the next budget: pensions, employment insurance, and of course jobs.

Our priorities are to overhaul our national pension system through a package of measures, including a doubling of the Canada Pension Plan and the introduction of a national system of pension insurance. As a first step, the budget should increase the guaranteed income supplement to a level sufficient to eliminate poverty among the elderly in Canada. The federal government should convene a summit on pensions, including provincial and territorial governments, employers, labour, and others, to develop a concrete national action plan on pension reform.

Second, improve income security for unemployed workers and help hard-hit communities by introducing a uniform national entrance requirement of 360 hours for employment insurance; raise benefits from 55% to 60% of previous earnings; and extend benefits for at least 50 weeks in all regions.

Third, launch a major, multi-year public investment program to save and create jobs; introduce support for public infrastructure development; and expand public services, energy conservation and renewable energy projects, and support for industrial restructuring.

Since the current global and Canadian recession began last October, almost 500,000 full-time jobs have been lost as a result of the manufacturing and forestry sector crisis. Canada faces an acute social and poverty crisis as hundreds of thousands of workers who are unemployed through no fault of their own begin to exhaust their EI benefits. The crisis has also had a devastating impact on retirement savings and pensions of millions of Canadians.

On the issue of pensions, the crisis has exposed major faults in the heart of our pension system. Our public pensions--old age security, OAS, the guaranteed income supplement, GIS, plus the Canada Pension Plan, CPP--provide a secure income in retirement, but the maximum value of pensions falls well short of replacing the 50% to 70% of pre-retirement income needed to maintain living standards.

Meanwhile, the private part of our pension system is in deep trouble. Only about one in five workers in the private sector now belongs to an employer pension plan. RRSPs were sold as the solution to our pension woes, but the average older worker approaching retirement today has saved enough to buy a monthly pension of only about $250 per month. A disturbing number of vulnerable seniors, especially single women, still live in poverty.

The labour movement believes that Canadians should not fend for themselves in retirement. We call for a national summit of governments, employers, labour, and others to discuss and bring forward a concrete plan to rebuild and reform our pension system. Our priorities for change are a major shift from private to public pensions and greater security for members of existing employer pension plans. The changes we propose will benefit all workers and provide greater security while making our overall pension system better fit the needs of a changing economy.

We call for the doubling of benefits under the Canada Pension Plan from 25% to 50%. We call for an immediate increase in the guaranteed income supplement to eliminate poverty among the elderly. The guarantee should provide for pension benefits to a proposed maximum of $2,500 per month through a system funded by contributions from pension plan sponsors.

On the question of employment insurance, EI is a critically important program for Canadian workers, especially at a time of nearly double-digit unemployment. Laid-off workers need adequate benefits to support themselves and their families. Improving EI is an efficient form of economic stimulus that can help maintain hard-hit communities and economies. Our EI program leaves far too many Canadians, especially women and lower-wage insecure workers, out in the cold.

We call for a uniform entrance requirement of 360 hours of work across the country so that more workers are qualified if they are laid off.

[The Chair, Conservative, James Rajotte]

Mr. Yussuff, you have about 30 seconds left.

[Hassan Yussuff]

I understand.

We also call for longer benefits of at least 50 weeks in all regions so that fewer unemployed workers exhaust a claim.

Very quickly on the question of jobs, to deal with the still worsening jobs crisis, the CLC calls for the federal government to launch, in partnership with the provinces and cities, a major multi-year public investment program that would create jobs now, promote our environmental goals, and build a new green infrastructure for the future. A comprehensive plan would cover roads, sewers, and basic municipal infrastructure; health and educational facilities; mass transit; passenger rail; affordable housing; energy conservation through building retrofits; and renewable energy.

Let me conclude on the last point. Canada has a very low level of public debt. Borrowing costs for the federal government are and will remain very low, and many public investments yield high rates of return in terms of public benefits and growth in private sector productivity. Households are saving rather than spending, private sector investment is very depressed, and a strong global recovery is a distant prospect. Now is the time for the federal government to lead the way into an economic recovery.

Thank you so much.

[The Chair, Conservative, James Rajotte]

Thank you.

We'll go next to Mr. Davies, please.

[John Davies, Chair of the Board of Directors, Polytechnics Canada]

Mr. Chair and members of the committee, thank you very much for this opportunity to address you this morning.

I'm chair of Polytechnics Canada. Joining me this morning is our CEO, Nobina Robinson. In my other day job, I'm president of Humber Institute of Technology in Toronto. Those of you flying in and out of Pearson on final approach to the north runway will see me down on the north side of the plane about 50 feet above you. We're just right there by Pearson airport.

Polytechnics Canada is a growing national association of some of the largest colleges and institutes of technology in the country. We are degree-granting, research-intensive, and industry-responsive post-secondary institutions. We are united in our conviction that a polytechnic education is essential for Canada's transition economy.

Our nine members have grown well beyond the traditional concept of a community college. Polytechnic institutions provide a broad range of applied professional, technical, and vocational programs. Our programs are employer driven and lead to high-quality jobs. We are committed to providing efficient and effective pathways to higher levels of credentials for our learners in order to bolster their contribution to the knowledge economy.

We conduct research that addresses commercial needs and solves problems for employers.

Polytechnics foster industrial innovation. We are helping a range of smaller and medium-sized companies, SMEs, discover and implement new ways of doing business. We help them adapt to new technologies and we help them apply new technologies to improve their market outcomes and productivity. In doing so, we foster entrepreneurship in this country.

There is at present, unfortunately, little or no federal support for what we do in this regard. We receive little or no help for field-testing, design, and development of new manufacturing processes. Without backing for these vital activities, new discoveries through basic research cannot easily reach the global market. It's the late stage of the commercialization process that needs federal attention and, we believe, needs it now.

Industry demand for our commercialization services is increasing. Let me give you a few examples of what Polytechnics Canada members are doing to support innovation.

Algonquin College here in Ottawa is collaborating with HousAll Systems Corporation to build low-cost, safe, and healthy temporary housing solutions for victims of disasters at home and abroad. In Calgary, the Southern Alberta Institute of Technology, SAIT Polytechnic, is working with Volker-Stevin Contracting to test a portable desalination system to decontaminate settling ponds. In the Waterloo-Kitchener area, Conestoga's telecommunications research projects involve major wireless carriers in addressing everything from networks to the manufacture of electronics.

Canadians who use the Firefox web browser, which includes me, will be interested to know that many Firefox upgrades are designed in collaboration with degree students and faculty from Seneca College in Toronto's Centre for Development of Open Technology.

A researcher at BCIT has patented a device called a heavy tool support arm. It helps construction workers who need to hold heavy power tools like jackhammers in an overhead position for extended periods of time. A concrete restoration firm has now sealed a deal to sell this device.

At Humber, students from our industrial design degree program are working with SMEs to solve global problems with innovative designs. Among them are personal mobility devices for the visually impaired, unmanned aerial vehicles to assist in police operations, and temporary human waste management systems for refugee camps.

These examples of polytechnics' success--and time doesn't permit me to mention so many more--are all about improving commercialization outcomes. Any increased investment in polytechnic institutions will allow us to leverage more private sector money to create more success stories and more jobs.

Last year Ottawa provided the university sector with over $2.7 billion--and I emphasize billion--for discovery-based research. By contrast, our nine members received only $1.8 million in federal funding for applied research. In other words, for every dollar for university research, federal support for applied research in our institutions amounted to one-tenth of a cent.

Industry innovation requires more federal spending, we believe, on applied research. It's time to rethink the putting of so many of our eggs into the pure research basket.

Our recommendation for a commercialization voucher for SMEs will help these firms with product research, product testing, and quickly moving products to market. Our students will benefit from the increased demand for their research services. Technology diffusion centres that we have proposed will act as incubators in our polytechnics to provide research experience to our students, in addition to technical support, technological development, and training for the SMEs we serve.

This idea is based on the successes we've seen at Sheridan College in Ontario, at BCIT, and, notably, in Quebec at the CEGEP level, where such a network of technology diffusion centres is well established.

Finally, our request for new federal spending on improved labour market data is critically important to help our institutions achieve better outcomes, whether in applied research or job creation.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Davies.

[John Davies]

In closing, Mr. Chairman, I want to emphasize that Polytechnics Canada is not calling for increased support because of some sense of entitlement. Rather, we are seeking to advance economic development and job creation throughout Canada.

Thank you. I look forward to your questions.

[The Chair, Conservative, James Rajotte]

Thank you.

We'll go to Ms. George now, for the Chamber of Commerce, please.

[Shirley-Ann George, Senior Vice-President, Policy, Canadian Chamber of Commerce]

Thank you, Mr. Chair.

With me today is our chief economist, Tina Kremmidas.

It gives us great pleasure to come before the House of Commons Standing Committee on Finance once again to present the views of the Canadian Chamber of Commerce as you proceed in your pre-budget consultations.

As you know, the Canadian Chamber of Commerce is the largest, most influential advocate for business in Canada. Our network is firmly rooted in main street in virtually every community in the country, representing 175,000 businesses of all sizes, in all sectors, and in all regions.

On behalf of our members, we are pleased to have provided you with a copy of our submission on July 15.

As we come out of this recession, how Canada positions itself through this next budget is crucial. Your report has never been more important.

We're going to keep our comments very short so that there is time for dialogue.

I'd like to turn to my colleague Tina Kremmidas to make a few opening remarks before the discussions begin.

[Tina Kremmidas, Chief Economist, Canadian Chamber of Commerce]

Thank you, Mr. Chair.

Good morning, members of the committee.

Canada's economy appears to be moving away from one of the most difficult and challenging setbacks in our lifetime. While the recession may technically be over, the road to recovery is expected to be gradual and long, with economic uncertainty and market volatility remaining high, especially in the short to medium term.

In light of this, it is imperative that the government continue with its ongoing efforts to implement the announced stimulus measures promptly and effectively. Concerted effort is needed by all levels of government to ensure that committed funds get out the door. Restoring and maintaining confidence, growth, and jobs should remain the government's top priority.

Second, we must chart a path back to fiscal discipline. Big government deficits are back federally and provincially. Rising debt and interest burdens will reduce our ability to act in areas that are crucial to long-term competitiveness--in particular, tackling high marginal personal income tax rates, meeting the challenges posed by an aging population, and investing in education and skills training. I'm sure you would agree that we cannot run deficits indefinitely without eroding our competitive standing, our productivity, and our future prosperity.

The one point we would like to stress today is that in order to build confidence in the future, the government must present Canadians with a viable plan on how it will balance its books and avoid structural deficits. Repairing federal finances will not be achieved overnight. It will require significant program restraint and a fresh look at programs, such as the employment insurance program, to ensure that they are designed to maximize long-term growth and minimize labour market distortions.

We must commit to dedicating surpluses, once balanced budgets are achieved, to repay deficits accumulated since fiscal 2008-09 so that the federal debt does not rise further.

Finally, we must avoid raising taxes, a move that would weaken our global competitiveness.

Besides doing whatever we can to mitigate the severity of the downturn and to speed recovery, the government must ensure that Canada's economy remains internationally competitive over the long term. It must focus on building a skilled and competitive workforce, eliminating internal barriers to trade and mobility; creating new market opportunities for Canadian companies; implementing the competition policy review panel's recommendations with respect to the Investment Canada Act; establishing a Canadian strategy that reconciles our need for secure and affordable energy with our desire for a clean and healthy environment; eliminating overlapping regulations; ensuring the coordinated and timely maintenance and development of our border resources to meet the commercial and security needs of the Canada-U.S. relationship and to make Canada a competitive gateway for North America; developing and implementing an objective-based national transportation strategy that embodies a North American vision; and championing a strong intellectual property rights regime. It is imperative that the government not lose sight of these long-term issues.

Preserving the public's trust in the sustainability of public finances is essential. This is why it's imperative that you ensure that we take the needed measures to avoid structural deficits. It is also essential that we implement smart policies that promote work, savings, and investment; encourage entrepreneurship; stimulate technological progress; boost productivity and economic growth; and enhance our long-term competitiveness. While we keep an eye on reviving the economy, we must focus on the long term and implement policies with an eye on the future.

We wish the House of Commons finance committee every success as it conducts pre-budget consultations.

Thank you for your attention. We would be pleased to answer any questions you may have.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentations.

We'll go now to Ms. Groetzinger.

Am I pronouncing your name correctly?

[Deanna Groetzinger, Vice-President, Government Relations and Policy, Multiple Sclerosis Society of Canada]

Perfect. Thank you very much, and thank you for inviting the Multiple Sclerosis Society to present today. We are pleased to provide input on behalf of Canadians affected by multiple sclerosis.

First a little about MS. It is an often progressive and disabling disease of the brain and spinal cord. MS has a profound impact on the ability of people to earn a living. Most people with MS are diagnosed between the ages of 15 and 40, just when they are finishing school, starting careers, and beginning families. Over time, up to 80% of people with MS can no longer work. Sometimes this is because the disability becomes so severe, but at other times it's because of a lack of understanding and accommodation by employers.

We are asking the federal government to tackle this issue in two ways. First, the MS Society asks for significant and sustained investments in health research that will lead in the future to better treatments and ultimately a cure for MS and other chronic conditions. Second, the MS Society asks for immediate changes to the Income Tax Act and employment insurance as part of the development of an overall income security strategy for people affected by MS and other disabilities and chronic diseases. These changes will help people affected by MS today.

The MS Society believes strongly that the road to a healthy future depends upon Canada living up to its potential as a leader in health research innovation. Mobilizing Science and Technology to Canada's Advantage, the science and technology strategy announced in 2007, acknowledges that world-class research excellence is Canada's standard and that talented, skilled, creative people are the most critical element of a successful national economy over the long term.

The MS Society is committed to this goal as well. We fund a $10 million research program annually, which supports the very best research projects from coast to coast and fellowships and scholarships for young scientists to attract them to the challenging world of MS research. Canadian MS researchers are acknowledged internationally for advancing knowledge about MS in children, the impact of genetics, the use of bone marrow transplantation as a potential therapy, and exploring vitamin D as a possible disease prevention strategy.

In our view, the Government of Canada needs to direct much more attention and investment to reaching the goal of world-class research excellence. In particular, there is a pressing need to focus on bolstering discovery health research. This is the kind of research that leads to the creation of fundamental knowledge that makes possible commercialization as well as improvements to the health of Canadians down the road.

In our brief we urge the government to commit Canada to be a world leader by providing significant new funding. We suggest an additional $350 million be immediately invested in health research, with at least 70% directed to the Canadian Institutes of Health Research. It is vital that this funding not be a one-off investment but that it be sustained in following years. In our brief we suggest ways that this type of investment could be measured for success in the future.

It is equally important to help people affected by MS today, so we're asking for a twofold approach. First, we're asking for a commitment to the development of an overall income strategy for people affected by MS and other chronic diseases and disabilities. This strategy should pay particular attention to the needs of people with episodic disabilities. Those are the kinds of disabilities and diseases that come and go, with unpredictable worsening and recovery. People with episodic disabilities don't fit easily into existing programs or plans and are often left without any kind of support.

As part of this commitment, we ask for some immediate changes to the Income Tax Act and employment insurance. One, we suggest that this could include allowing spouses to claim the caregiver amount. Right now they are not allowed to claim this tax credit. We believe employment insurance sickness benefits should be made more flexible to allow people with MS to work part-time and to receive partial benefits. Finally, we suggest the disability tax credit be made a refundable benefit.

The adoption of these modest but important changes would be a good first step forward toward the development of an overall income security strategy for people with disabilities. These changes would support people affected by MS in their efforts to continue to contribute to the Canadian economy and to remain part of their communities. All of our recommendations that we've mentioned today are in areas that are under federal jurisdiction and, we believe, fit well with current policy directions.

The MS Society of Canada is working very hard to end MS once and for all through increased funding of MS research, but until that day comes, quality of life is equally important to people affected by this disease. We believe our recommendations will make a meaningful difference to their quality of life.

Thank you. I look forward to hearing your questions.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

We'll start with Mr. McKay for seven minutes.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Thank you, Mr. Chair.

Thank you, witnesses.

My first question is to Mr. Yussuff. Your second proposal, which is to improve income security, has pretty well been ridiculed from coast to coast to coast by the government. I've seen parliamentary secretaries on national television describing it as a nine-week work year and not really seriously engaging in any kind of rationalization of the system. There are still 58 separate categories of qualifications. If you're a waiter working upstairs, for instance, in the Parliamentary Restaurant, if you live in Quebec it's one standard of qualification, and if you happen to live in Ottawa it's another standard of qualification. It's a system that cries out for very significant reform.

My first question to you, Mr. Yussuff, is this: given the government's attitude towards this fundamental change in unemployment, how do you expect this Parliament will respond to this request on your part?