Finance Committee on Oct. 21st, 2009

[The Chair, Conservative, James Rajotte]

We do have a document from you, actually.

[Wayne Samuelson]

God love them.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

We'll now go to the Canadian Business Press, please.

[Bruce Creighton, Director, Canadian Business Press]

Good afternoon, and thank you for the opportunity to appear before the committee. My name is Bruce Creighton. While my day job is president of the Business Information Group, I'm here today in my capacity as director of the Canadian Business Press.

It has been said that for every industry, profession, or business in Canada there is a specialty publication aimed directly at keeping its participants informed about their businesses, about what's new and interesting to them, and what trends they can expect in their respective fields. However, since this type of business media is so carefully targeted to specialized audiences, many people are simply unaware of its existence or of how broad the industry really is.

Doctors, lawyers, teachers, construction companies, oil workers, grocers, benefits professionals, dentists, pharmacists, welders, pilots, hard goods retailers, and automobile dealers all have their own publication geared to their particular needs.

The Canadian Business Press is the industry association for Canada’s 740 business, professional, and farm publications. In fact, the Business Information Group's parent company, Glacier, is the largest publisher of farm publications in the country. Industry publications known as business to business, or B2B, represent 27% of all magazine titles in this country, 25% of the sector's revenues and expenses, and 29% of the industry's full- and part-time employment.

Many of you would be familiar with our members' titles, which include: Canadian Consulting Engineer, Journal of the Canadian Dental Association, Oilweek, and Québec habitation.

In early 2009 the Honourable James Moore, Minister of Canadian Heritage and Official Languages, announced the creation of the Canada periodical fund. The announcement, which stemmed from a budget 2009 commitment, is set to provide Canada’s magazines and community newspapers with a total of $75.5 million to support their publications. The Canadian Business Press strongly endorses the objectives of this program and thanks the minister for his foresight in this matter.

Our industry is in a time of transition: increased foreign competition, transformation to digital media, new business models, and a bruising recession impacting readers and advertisers alike. Any reductions in government support will no doubt push many magazine titles out of business.

Unfortunately, the funding formula of past programs, the Canada magazine fund and the publishers assistance program, and the one initially proposed for the Canadian periodical fund fail to fully appreciate the cultural and economic significance of B2B publications. The formula favours broad-based readership rather than narrow vertical market publications like those of the Business Press.

Our publications require extremely high penetration rates because of our business model. B2B periodicals have always received a lower portion of the funds designed to support the magazine industry, a portion of which the Canadian Business Press finds unjust. My company, the Business Information Group, is faced with challenges stemming from existing programs and regulations. I cannot, for instance, insert an upstart publication that we're trying to get off the ground to cover a new vertical market into an existing publication and still receive funding from the publications assistance program. This stifles growth and in many cases leaves an industry seeking information unserved.

While I applaud the Government of Canada for revisiting the eligibility criteria for the Canadian periodical fund and hope that many of the aforementioned issues will be addressed, I hope this presentation has demonstrated that B2B publications have different needs from their consumer peers. Therefore, to enhance the viability of this industry, the Canadian Business Press recommendations to the House of Commons Standing Committee on Finance are the following.

One, the Government of Canada should expand the eligibility of the Canadian periodical fund to recognize the uniqueness of business publishers. Secondly, the federal government, under a separate program, should increase funding for the business publishing sector to assist the industry through this period of transition.

With that, I thank you for your time. I look forward to any questions you might have.

[The Chair, Conservative, James Rajotte]

Thank you very much, Mr. Creighton.

We'll now finish with the Ontario Municipal Social Services Association.

[Etan Diamond, Manager, Policy and Research, Ontario Municipal Social Services Association]

Thank you.

My name is Etan Diamond. I am the manager of policy and research from OMSSA. I am here replacing Kira Heineck, the executive director, who had a personal emergency this morning.

The Ontario Municipal Social Services Association represents the municipal services to managers of Ontario, which administer local human social services throughout our province. Our association promotes policy development and program delivery in the areas of economic security, employment support, social housing, homelessness prevention, and children's services.

In 2009 the federal government invested in Canada’s physical infrastructure by providing funds for roads, bridges, buildings, and houses. In 2010 OMSSA believes that the federal government must now invest in Canada's people: the people who drive on those roads, who cross those bridges, who work in those buildings, and who live in those houses. This commitment to Canada’s human infrastructure will have the triple benefit of stimulating the economy, reducing poverty, and fostering healthy families and communities.

I am pleased to turn the microphone over to Janet Menard, the commissioner of human services in Peel region and a member of our board, to talk more specifically about our recommendations.

[Janet Menard, Board Member, Commissioner of Human Services for the Regional Municipality of Peel, Ontario Municipal Social Services Association]

Thank you, Etan.

As you know, 2009 has not been kind to many Canadian families. Plant closures, factory layoffs, and fluctuating markets have removed much of the economic security that Canadian families deserve, and our members are seeing the results first-hand on a daily basis. Compounding the problem, federal supports such as employment insurance have failed to provide a sufficient safety net for the victims of Canada’s economic restructuring. We believe that the federal government must step in and reinforce that safety net with direct and immediate improvements to our nation’s employment insurance program. By improving EI through changes to eligibility requirements, the federal government can lift those Canadian families who are in danger of slipping into poverty because of unemployment. Such EI improvements will help keep these families on a more secure financial footing and will accelerate our country's economic turnaround.

If EI improvements offer the most immediate benefits, our recommendation to expand investments in affordable housing and homelessness prevention focuses on mid-term outcomes. OMSSA appreciates the current government’s investment to make affordable housing available to more Canadians. The infusion of funds into social housing and other housing programs has been welcomed by our communities across this country. And I can assure you, we're making the very best use of those dollars. But it is not enough, and the planned withdrawal of federal funds, starting in 2011, is a huge cause for concern.

Furthermore, affordable housing is more than bricks and mortar. Being able to afford a place to live is not as meaningful when a person has no access to sustainable employment, child care, good schools, recreational opportunities, and mental health and other services. Therefore, OMSSA recommends that the government expand its housing investment to allow for the development of human infrastructure, not just houses themselves but the human and social services that turn a house into a home and a neighbourhood into a community. For example, sustainable programs for mental health or addiction counselling can make a difference in preventing homelessness and can help the government’s bottom line.

But the benefits don't stop there. In Toronto, for example, the Streets to Homes program reduced demand for public services by moving homeless people into more permanent shelter. Emergency room use declined by 40% and police-facilitated detox admissions fell by 75%.

Finally, our third recommendation brings with it the greatest long-term rewards: investing in the children of Canada. OMSSA agrees with the federal government's position that parents are in the best position to decide on and make choices for the care of their children. If parents can choose safe nurturing environments for their young children to play and learn, then our families, our communities, and our society will become stronger. Yet in 2010, Ontario’s children and families will have their choices limited because of the withdrawal of federal support for the early learning and child care system. Almost 9,000 child care spaces are at risk, at a cost of $63.5 million federal dollars, leaving Ontario’s parents with 9,000 fewer choices for their children’s healthy development.

OMSSA strongly recommends that the government recommit to our children’s future by investing in a true system of early learning and child care services. In this way, the federal government can take a leadership role in providing parents with real choices for quality early learning for their children. A recommitment to the children of Ontario makes good economic sense as well. Modern economic realities mean that most parents are in the workforce. Being able to choose a quality early learning system means they can confidently enter and remain in the workforce, knowing that their children are being cared for in a safe and stimulating environment.

[Etan Diamond]

Thank you, Janet.

In conclusion, I want to note that the government's own research through Infrastructure Canada confirmed that investment in social infrastructure contributes to the economic vitality and competitiveness of Canadian cities. OMSSA agrees that such investments can revitalize our economy. By improving employment insurance, the federal government can let parents focus on getting back to work rather than on getting food on the table. By investing in services to support housing and prevent homelessness, the government can help people turn their streets into liveable communities rather than being forced to live on the street. By recommitting to early learning opportunities, the government can help our children look forward to a prosperous future.

In short, smart investment in a strong human infrastructure leads directly to healthier and stronger communities. It is time to invest in the people of Canada. This is a strategy that makes sense.

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

We will start members' questions with Mr. McCallum, please.

[John McCallum, Liberal, Markham—Unionville, ON]

Thank you, Mr. Chair.

Thanks to all of you for being with us this afternoon.

I'd like to start with Mr. Molyneaux and the police officers.

The government, in its election campaign of 2008, committed to 2,500 officers?

[Larry Molyneaux]

It was in 2006.

[John McCallum, Liberal, Markham—Unionville, ON]

It was 2006? Okay.

And when you hire a new police officer, it's probably for 20, 25, or 30 years. Are you telling me that funding is only for five?

[Larry Molyneaux]

That's correct.

[John McCallum, Liberal, Markham—Unionville, ON]

So how is the town or the municipality supposed to do that when they're only getting the money for five and they have to be thinking in terms of 20 or 25 years?

[Larry Molyneaux]

That's the very issue we have concerns with. That's why a lot of the municipalities didn't take advantage of this program. As for the ones that did take advantage of the program, after five years there is no more funding, so it will have to be funded by municipal coffers.

[John McCallum, Liberal, Markham—Unionville, ON]

Okay. If you leave that issue to one side, the funding so far is sufficient to hire how many if it were fully taken up?

[Larry Molyneaux]

Well, $400 million was given from the federal government. For 2,500 officers, we add that up to be $250 million per year, but only $400 million was given for all of Canada.

[John McCallum, Liberal, Markham—Unionville, ON]

That is $400 million over how many years?

[Larry Molyneaux]

It's over five years.

[John McCallum, Liberal, Markham—Unionville, ON]

So they've given you $80 million a year and you say that the amount you need is what?

[Larry Molyneaux]

We would need $250 million a year.

[John McCallum, Liberal, Markham—Unionville, ON]

So they've given you less than a third of what you need and for only five years instead of permanently.

[Larry Molyneaux]

That's correct.

[John McCallum, Liberal, Markham—Unionville, ON]

That helps me understand this. Thank you.

Mr. Samuelson, we in the Liberal Party are very interested in pensions. We're having an all-day round table on Monday in Ottawa to consider many ideas, including the ones you've presented. I'd like to ask you about your idea of doubling the benefits under the CPP from 25% to 50%. I have two questions. I'll put the two questions as one.

First of all, does that mean you double the premiums immediately? Second, someone my age wouldn't get much unless I was subsidized by the younger generation, so does your plan involve younger people subsidizing older people or is it subsidy-free?

[Wayne Samuelson]

Thanks for the question.

Let me deal with the first question. First of all...no, let me deal with the second question, because I'm really concerned about you. I think what we're saying is--