No, I think this is unique.
Evidence of meeting #35 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A recording is available from Parliament.
Evidence of meeting #35 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A recording is available from Parliament.
9:35 a.m.
Liberal
Paul Szabo Liberal Mississauga South, ON
All right, fair enough.
I want to move on to the Sarnia Lambton Chamber of Commerce, who made a large number of recommendations. On two points, certainly on the taxes and duties side, and more specifically the GST limit, I don't think you're going to get much disagreement that the $30,000 threshold is long overdue for changes up to maybe something close to $100,000, the cost of the administration.
As far as a question goes, I'd like you to address the employment insurance reform. The way the system works now under the changed regime, this has to be a self-sustaining fund. And to the extent that there is a deficit, the government has to fund that and it will be charged to the deficit for the year. I'm not sure why you thought the details of balancing it over a ten-year period.... There seems to be some specificity here in the number of hours for qualifying. This is a very sensitive area, and there is a mechanism established. Do you have a problem with the mechanism that has just been established by the government?
9:40 a.m.
President, Sarnia Lambton Chamber of Commerce
Well, I think the changes that were supported in the last couple of weeks by the government are good, and it didn't raise the rates quite as drastically as was possible.
The recovery of the program one year after a big deficit is perhaps going to be too much of a tax burden--because that's what these premiums really are, a tax burden on payroll--for business to support and continue to employ people. The suggestion is thrown forward that there be a longer-term cycle in order to recover from a big change that has obviously been causing.... The recession has caused a lot more draw on the program in the last year or 18 months. To try to recover that in a one-year period is too drastic.
9:40 a.m.
Liberal
Paul Szabo Liberal Mississauga South, ON
Okay.
And finally for Mr. Mwanzia, on interprovincial trade. Thank you for bringing it up. You had one recommendation. You put some focus on it and I think it's important.
Take the rest of the time to tell us why we need to address this, not only with regard to the wine industry but the need for enhancing interprovincial trade.
9:40 a.m.
Policy Coordinator, St. Catharines - Thorold Chamber of Commerce
Certainly. There are multiple elements to interprovincial trade barriers. From the perspective of the Niagara community, the B.C. wine community, and the emerging markets out there, it's important that this become one of the key steps forward as far as interprovincial trade barriers go. There is direct correlative data that can be associated with this singular change. Looking across the border at our friends in the United States, with their striking down their interstate barriers related to the wine industry, they saw a 31% increase in trade.
9:40 a.m.
Bloc
Daniel Paillé Bloc Hochelaga, QC
Good morning.
Ms. Pearson, I do hope you have nothing against tax experts, because they are of great help to philanthropic organizations.
There was an issue that was raised a few weeks ago with other stakeholders. This is not something you raised, but it concerns the proposal by the Government of Canada to impose a compensation cap on people working within foundations. Foundations that would employ, directly or indirectly, executives earning $250,000 and more would not be authorized to issue tax receipts.
Is that something of interest to you? Have many of your organizations spoken to you about that?
9:40 a.m.
President, Philanthropic Foundations Canada
Yes, absolutely. That is a very important issue, and I can assure you that the chair of our board signed the letter prepared by Imagine Canada and sent to Mr. Duceppe, as well as to the other federal party leaders.
We are opposed to the bill's proposal to limit executives' remuneration. It is important to say, however, that we are all for transparency. Community organizations that receive public funds must be transparent and provide their donors with the requisite wage information.
That said, I think that it must be left up to the boards of directors of those organizations to decide how to compensate their executives, especially their team leaders.
October 19th, 2010 / 9:45 a.m.
Conservative
9:45 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
Yes, the member opposite has been calling it a Conservative.... It's a Liberal private member's bill, not a Conservative bill. He said it last time and he said it again today. I just want to make it clear that it's a Liberal private member's bill that's recommending the cap, not a government bill.
Thank you.
9:45 a.m.
Conservative
The Chair Conservative James Rajotte
It's not a point of order, but you've made your point.
Monsieur Paillé, continue.
9:45 a.m.
Bloc
Daniel Paillé Bloc Hochelaga, QC
We can then talk about the Liberal-Conservative coalition, but let's leave it at that.
9:45 a.m.
Some voices
Oh, oh!
9:45 a.m.
Bloc
Daniel Paillé Bloc Hochelaga, QC
If Mr. Wallace could allow us to come back to more serious matters...
Madam, you indicate on pages 2 and 3 that the Department of Finance has imposed a complex and costly administrative obligation on you.
Further down, in the same document, we read that, too often, grassroots efforts are hobbled by red tape, and you end by stating that capital accumulation is discouraged by the federal regulators.
There are three of your recommendations on page 4 that call for clarifying CRA guidance and reviewing the CRA's position on investments.
At the end of the day, would you not agree that the bloody problems that you face—I apologize—are due to the fact that the Canada Revenue Agency is trying to track some of the things that you could do, rather than help you do your work?
9:45 a.m.
President, Philanthropic Foundations Canada
Indeed, that was well put. I understand that the agency does not prepare the policies. It is—
9:45 a.m.
President, Philanthropic Foundations Canada
That is correct. Basically, it is up to the Minister of Finance... We have asked the minister to review the regulatory structure and rationale, particularly with regard to foundations, but also charities. The problem is that, in the 21st century, we should not be maintaining such a clear demarcation between the business and charity sectors.
There are social enterprises with both business and community organization components. Foundations simply cannot finance those enterprises.
9:45 a.m.
President, Philanthropic Foundations Canada
No. He had a guarded response. He said that he might consider that at some point in time. This does not appear to be one of the government's priorities.
9:45 a.m.
Bloc
Daniel Paillé Bloc Hochelaga, QC
I am sure that his parliamentary secretary will be much more gracious in his response.