Evidence of meeting #34 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was research.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Wendy Zatylny  Vice-President, Government Affairs, Canada's Research-Based Pharmaceutical Companies (Rx & D)
Sheri Strydhorst  Executive Director, Alberta Pulse Growers Commission
Tyrone Benskin  National Vice-President, Alliance of Canadian Cinema, Television and Radio Artists
Stephen Waddell  National Executive Director, Alliance of Canadian Cinema, Television and Radio Artists
Judith Shamian  Signatory, Canadian Caregiver Coalition
Marie-France Kenny  President, Fédération des communautés francophones et acadienne du Canada
Anthony Giovinazzo  President and Chief Executive Officer, Cynapsus Therapeutics Inc., BIOTECanada
Peter Brenders  President and Chief Executive Officer, BIOTECanada
David Heurtel  Vice-President, Corporate and Public Affairs, Just for Laughs Group, Canadian Festivals Coalition
Janice Price  Chief Executive Officer, Luminato, Canadian Festivals Coalition
Richard Phillips  Representative, Alberta Pulse Growers Commission
Rob Livingston  Director, Federal Government Relations, Merck Frosst Canada Ltd., Canada's Research-Based Pharmaceutical Companies (Rx & D)
Mark Nantais  President, Canadian Vehicle Manufacturers' Association
Bonnie Patterson  President and Chief Executive Officer, Council of Ontario Universities
Elizabeth McDonald  President, Canadian Solar Industries Association
Phil Whiting  Representative, Canadian Solar Industries Association
Dawn Conway  Executive Director, Canadian Foundation for Climate and Atmospheric Sciences
Richard Gauthier  President and Chief Executive Officer, Canadian Automobile Dealers Association
Shane Devenish  Representative, Recreation Vehicle Dealers Association of Canada
Mary-Lou Donnelly  President, Canadian Teachers' Federation

6:10 p.m.

Representative, Canadian Solar Industries Association

Dr. Phil Whiting

No, no, that has been—

6:10 p.m.

Liberal

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

I haven't seen it on paper. It's good that you put it on the record. That's why I asked.

6:10 p.m.

Representative, Canadian Solar Industries Association

Dr. Phil Whiting

Yes, there are data produced by third parties to verify that.

6:10 p.m.

Liberal

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

I have another quick question, because I want to move along.

When you state that we're losing out on the whole manufacturing end of solar technology, does it really matter? It's not as if someone is going to steal our solar rays Do we have to be ahead? What is the difference there? Why do we have to be ahead on the manufacturing end?

6:10 p.m.

President, Canadian Solar Industries Association

Elizabeth McDonald

You're right, the sun will still be there, but the jobs will be in other countries. That's basically it.

6:10 p.m.

Liberal

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

That's what I want to hear. Thank you. Great.

Mr. Nantais, I have a quick question. In your brief, I guess you want to have the cake and eat it as well. You know the question that's going to come. You're asking for a tax credit, but in the end you don't want to pay tax on it. So if you have to pick one or the other, which one would it be?

6:10 p.m.

President, Canadian Vehicle Manufacturers' Association

Mark Nantais

I'm not sure I understand your question.

6:10 p.m.

Liberal

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

Well, you're asking for the reintroduction of the credit for old vehicles. You mentioned the reintroduction of a competitive, flexible investment fund...as well as investments that upgrade...the existing Canadian automotive footprint.

6:10 p.m.

President, Canadian Vehicle Manufacturers' Association

Mark Nantais

Are you referring to the ecoAuto—

6:10 p.m.

Liberal

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

You say:

Support for Canadian consumers who purchase advanced technology vehicles and when purchasing new vehicles in general which help to reduce greenhouse gases (GHG) through the elimination of the counterproductive federal taxes and fees....

etc.

So this would be extra money for your industry, would it not?

6:10 p.m.

President, Canadian Vehicle Manufacturers' Association

Mark Nantais

Well, first off, we're talking about incentives for consumers. We're also talking about what we witnessed in the United States in relation to the money incentives they're providing for manufacturers to help them design or produce vehicles to meet these very stringent standards.

6:10 p.m.

Liberal

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

So the incentives would come from the government coffers, would they not?

6:10 p.m.

President, Canadian Vehicle Manufacturers' Association

Mark Nantais

The incentives would be government incentive money. The program in the United States could be seen as a type of long-term loan agreement. The consumer issue here is one that would help consumers afford some of these more sophisticated, more costly technologies so that we can actually get more of them into the market, make them more affordable, advance that technology, and spread it across the market more quickly and more broadly.

6:10 p.m.

Liberal

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

You're also asking for corporate tax cuts, am I not...?

6:10 p.m.

President, Canadian Vehicle Manufacturers' Association

Mark Nantais

No, I think we recognized and commended the government for taking the actions they did in reference to that.

6:10 p.m.

Liberal

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

Okay. Thank you.

The other question was to Mr. Gauthier. I ran out of time, but could you perhaps clarify the equal treatment on the sale of used vehicles? You ran through it in your brief, but I'm going to ask you to run through it again.

We don't have much time, but what are the inequalities? Are they just between provinces? I understand the same thing happens between Canada and the U.S.

6:10 p.m.

President and Chief Executive Officer, Canadian Automobile Dealers Association

Richard Gauthier

Thank you very much. It's a very good question.

The inequity is that if you sell your own vehicle to Mr. Szabo--

6:10 p.m.

Liberal

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

He's too cheap to buy my vehicle. Oops, did I say that out loud?

6:10 p.m.

Voices

Oh, oh!

6:10 p.m.

President and Chief Executive Officer, Canadian Automobile Dealers Association

Richard Gauthier

--you are not required to charge GST. If, on the other hand, one of my members sells a used vehicle to Mr. Szabo, then we would have to charge GST in Ontario, that being 13%.

When GST was first introduced in the 1980s, this issue used to be addressed through a mechanism that was an input tax credit. It was later eliminated. As a result, what we now have, again using Ontario as an example, is a 13% disadvantage for dealers when selling used vehicles, compared to private sales.

In provinces that have harmonized their tax regime lately, that problem has been addressed, because private sales or sales from dealers to individuals are now taxed at the full HST rate. So we're just suggesting that this inequity be--

6:10 p.m.

Liberal

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

How would Quebec fall in there?

6:10 p.m.

President and Chief Executive Officer, Canadian Automobile Dealers Association

Richard Gauthier

Quebec still has an assessment on private sales.

6:10 p.m.

Conservative

The Chair Conservative James Rajotte

Okay. Thank you.

I'll just remind colleagues that we should always speak well of our other colleagues. You were actually complimenting his frugality, I think.

6:10 p.m.

Voices

Oh, oh!

6:10 p.m.

Conservative

The Chair Conservative James Rajotte

Order.

Mr. Carrier, you have five minutes.