Evidence of meeting #58 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was transit.
A recording is available from Parliament.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Now, as I recollect, there was a sell-off of broadband a year or two ago and there's going to be new players in the field. Does your organization represent these new players as well?
President and Chief Executive Officer, Canadian Wireless Telecommunications Association
Yes. I joined the association, as the president, about a year ago. One of my first objectives was to recruit new entrants. We now have Vidéotron, Globalive--also known as WIND--Public Mobile, and EastLink as members of the CWTA.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Will the accelerated capital cost allowance benefit the new players more or less than the current members?
President and Chief Executive Officer, Canadian Wireless Telecommunications Association
It will benefit them all.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
There was a recent study that said Canada's wireless service is slow and it's expensive. I'd be interested in your response.
President and Chief Executive Officer, Canadian Wireless Telecommunications Association
There are so many studies out there, it's important to actually compare Canadian services. When you look at 99% of Canadians today having access to the wireless service they want, that's amazing with geography like ours. There are 91% who have access to 3G networks, and in just a few months we will have at least four 3.5G networks in Canada—probably five. That's more than any other country. When you compare, our country, with our geography and dispersed population, is doing extremely well. In terms of pricing, we're not the lowest in the world, but we are among the lowest.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Well, I'll invite you to review my bill every month to see whether it's the lowest.
How much time do I have?
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I have a quick question with respect to the SD Tech Fund. You've had a fair run at this. Over a number of years there was a significant investment by the previous government, which hasn't been repealed by this government. What is your return on investment?
October 28th, 2009 / 4:20 p.m.
Vice-President, Industry and Stakeholder Relations, Sustainable Development Technology Canada
As you said, we've had a number of years where the SD Tech Fund has been investing in clean technology projects. Typically they take seven years to get to market, so we're just starting to see some of those projects coming out of our pipe.
When you look at some of the indicators, we have about 31 projects that are complete or will be completed this year or next. They have gone on to attract follow-on funding of $902 million—38% of which comes from international sources—so they've been able to mobilize significantly more capital into those companies than what SDTC has.
Vice-President, Industry and Stakeholder Relations, Sustainable Development Technology Canada
We give them a grant. We don't take equity or a return on the money.
Conservative
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Thank you, Mr. Chair.
Good day to all the witnesses.
My first question is for Mr. Thaker.
I'm having a bit of trouble understanding what the Canada Foundation for Sustainable Development Technology is all about and the link between your organization, the Standing Committee on Finance and the government.
In the section of your document titled "Who we are", you state, "The SDTC is a policy instrument of the Government[...]." I don't really get why an organization that is a policy instrument is here before the Standing Committee on Finance lobbying or at least asking the government or the Department of Finance to include in its next budget funds for a paragovernmental organization. I don't understand the request or why you are here, since you clearly state that you are a policy instrument of the government.
All of the witnesses we have heard since the prebudget consultations began have been apolitical and have legitimately defended their point of view. In your case, it strikes me as somewhat anachronistic.
Vice-President, Industry and Stakeholder Relations, Sustainable Development Technology Canada
Merci, monsieur Laforest.
I don't know in terms of all the rules of the committee...but SDTC was created as an arm's-length foundation of the government. We operate in a hybrid fashion, working like a private sector organization helping to deliver the government's policy.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
In your own definition of your foundation, you say that you are a "policy instrument". A policy instrument is someting that defends the colours of a political party or at least the current government. That seems quite unique to me.
I would like to ask another question of Mr. Masnyk of the Insurance Brokers Associaton of Canada. You are making a request in order to facilitate the transfer of businesses that have for a long time been family businesses. In many cases, a deal can be made or has the potential to be made within the family, whether it is father to son or father to daughter. You are asking for a tax deferral.
Why you say tax deferral, how long do you think businesses can avoid taxes and pay them later?
Manager, Public Affairs, Insurance Brokers Association of Canada
In my opinion, it would be until the business leaves the family's hands. As long as the business stays in the family, the tax scheme would apply. When the business leaves the family's hands, the normal tax scheme would apply.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
In other words, as long as the business stays in the family, payment of capital gains tax, avoided for some time, would not be paid.
Manager, Public Affairs, Insurance Brokers Association of Canada
That's correct.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
I'm thinking of one scenario as an example. After three generations, that could keep going. So the business would avoid paying capital gains tax if the father sold the business to his son.
Manager, Public Affairs, Insurance Brokers Association of Canada
That's exactly it, until the business leaves the family.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Thank you.
I was expecting the insurance brokers association to talk about competition with banks. Is that not one of your concerns?
Manager, Public Affairs, Insurance Brokers Association of Canada
It is one of our concerns, obviously, but it's not a budget matter. We are here simply to make a budget recommendation regarding taxes, government spending.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Excellent, thank you.
Mr. Lord, you are speaking on behalf of the Canadian Wireless Telecommunications Association. In Quebec, there was a program called "Villages branchés du Québec" in which the Government of Quebec invested funds to extend broadband networks in just about every region of Quebec. Municipalities and school boards ran the networks and offered fairly substantial grants
Was your association involved in developments like that in Quebec?
