Evidence of meeting #47 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
10:05 a.m.
Chair, Tax Group, Canadian Manufacturers & Exporters - New Brunswick and Prince Edward Island
I guess what we're talking about is, number one, a short-term change to allow people to cash out existing credits that they already have earned and CRA has approved.
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
You have to give me examples. If we're talking SR and ED, that's one thing. If we're talking tax losses, that's another thing.
10:05 a.m.
Chair, Tax Group, Canadian Manufacturers & Exporters - New Brunswick and Prince Edward Island
No, no, in Atlantic Canada, you get a 10% investment tax credit if you buy production equipment or a building. That's an earned credit. A number of businesses that we speak to in Atlantic Canada have a lot of these credits earned as well as some approved SR and ED claim credits. The objective in the short term is to take those credits and, if the company reinvests in their business to some multiple, cash them out. That's a short-term measure to get some cash.
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
For a lot of companies, the SR and ED credits are not reimbursable. So you're talking about companies that are over the threshold?
10:05 a.m.
Chair, Tax Group, Canadian Manufacturers & Exporters - New Brunswick and Prince Edward Island
That's right, yes, over the threshold.
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay.
Mayor Stewart, we spoke this morning. There are different viewpoints on how we determine whether the stimulus money going out for infrastructure is working. I'm wondering what your take is on whether the money is getting out. Are the projects starting, or did we miss the construction season?
10:05 a.m.
President, Federation of Canadian Municipalities
Thank you for that question.
It seems to be working fairly well across the country. I guess there may be a few areas where things are moving a little more slowly, depending on the circumstances between the municipality and the province, or the province and the feds.
I know that here in Prince Edward Island, overall it has worked very well. Our municipalities have a good working relationship with the provincial government and the federal government. It's the same in Newfoundland. It's going very well there.
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
In Summerside, would you have any projects that you would have submitted under the stimulus program?
10:05 a.m.
President, Federation of Canadian Municipalities
All of our projects that we have submitted have been approved. Things have gone really well here in Summerside. But I know there are a few problems across the country.
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
So we can go and see those shovels on the ground?
10:05 a.m.
Liberal
10:05 a.m.
President, Federation of Canadian Municipalities
I think we had applied for ten, and I think they were all approved.
As I say, things have worked out well. And they've worked out well in other parts of the country as well.
10:05 a.m.
President, Federation of Canadian Municipalities
We have no complaints with the way things are going--
10:05 a.m.
Voices
Oh, oh!
10:05 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I'm going to be nice because you bought us lunch.
10:05 a.m.
Conservative
The Chair Conservative James Rajotte
Mr. Pacetti, as much as I'd like to continue this, your time is up.
10:10 a.m.
Bloc
Nicolas Dufour Bloc Repentigny, QC
Thank you very much, Mr. Chair.
Once again, my comments are directed to the New Brunswick Federation of Labour.
The situation today in New Brunswick and throughout much of Atlantic Canada is very similar to that in Eastern Quebec. In the Gaspé region, in Rimouski or in Rivière-du-Loup, we see more or less the same types of businesses, primarily ones involved in the fishery. Recently, the Conservative government announced investments of nearly $1 billion in the EI program. The government informed us that about 190,000 people belonging to a specific category of workers would be affected by this funding announcement. If I'm not mistaken, they are people who have not had any work stoppages in the past five years. This does nothing at all for the people of Eastern Quebec. Fishery workers are seasonal workers. Obviously, they were not able to work during certain periods of the year.
Do you really think that strengthening EI benefits will address the problems of fishery and forestry workers and help them in any tangible way?
10:10 a.m.
President, New Brunswick Federation of Labour
Thank you for your question.
First of all, the changes announced by the government about two weeks ago are positive ones. However, as to whether they will help fishery or forestry workers, the answer is no, they will not. The changes won't be much good for these individuals because year after year, they are unfortunately forced to rely on employment insurance. They will not receive any assistance. If you tell me that there are approximately 200,000 workers in Canada and if you were to ask me if I oppose this bill—I think that's what it's called, although I'm no expert like the members here are—, I would tell you that it's nice to want to help people, but that the bill does not go far enough.
We need to remember that employment insurance is a form of insurance. Automobile insurance is insurance to which both parties agree. I often give the example of occupational health and safety. A representative of the Canadian Council of Archives took the floor and discussed the archives. The first document signed by the federation in 1918 was aimed at insuring New Brunswick workers against workplace accidents. The employee would not take action against the employer who in return, would agree to provide guaranteed insurance. It's important to know the story. I've strayed a little from the subject at hand, but I merely wanted to say we mustn't forget that employment insurance is a form of insurance.
10:10 a.m.
Bloc
Nicolas Dufour Bloc Repentigny, QC
That's very interesting.
Mr. Plante, it looks like you want to respond to what Mr. Boudreau just said. But first, can you tell me if businesses agree with employment insurance demands?
10:10 a.m.
Chair, Tax Group, Canadian Manufacturers & Exporters - New Brunswick and Prince Edward Island
The manufacturers in Canada are of course under extreme pressure to control their costs. They're trying to survive. If what you're asking is if we would support anything that increases costs, the high-level answer is no, but the issue is more difficult than that. In order for us to survive, what we need to do is have programs and arrangements whereby we retain and train workers. Having a new plant or facility is useless without having that skilled workforce that's readily available.
We know, with the given demographics, that there are going to be a lot of retirements, a lot of people leaving the workforce. We have to make sure that the folks coming in are trained, that we're able to keep them trained and retrained, and that we're trying to retain people as we have plant downturns and shutdowns. From that point of view, yes, we do support any of those types of changes, because the labour force is critical.