Evidence of meeting #38 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

John McAvity  Executive Director and Chief Executive Officer, Canadian Museums Association
Ross Creber  President, Direct Sellers Association of Canada
Mark Jamison  Chief Executive Officer, Magazines Canada
Michael Roschlau  President and Chief Executive Officer, Canadian Urban Transit Association
Yves-Thomas Dorval  President, Quebec Employers' Council
Natalie Bull  Executive Director, Heritage Canada Foundation
Marcel Lauzière  President and Chief Executive Officer, Imagine Canada
Norma Kozhaya  Director of Research and Chief Economist, Quebec Employers' Council
Nancy Hughes Anthony  President and Chief Executive Officer, Canadian Bankers Association
Nobina Robinson  Chief executive Officer, Polytechnics Canada
Avrim Lazar  President and Chief Executive Officer, Forest Products Association of Canada
Gerrid Gust  Chair, Western Canadian Wheat Growers Association
Geoff Hewson  Vice-President, Saskatchewan, Western Canadian Wheat Growers Association
Gary Stanford  Director, Grain Growers of Canada
Gilles Patry  President and Chief Executive Officer, Canada Foundation for Innovation
Nicholas Gazzard  Executive Director, Co-operative Housing Federation of Canada
Richard Phillips  Executive Director, Grain Growers of Canada

4:50 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

No, the terms require that 90% of the fabric of the building be removed or replaced, so that level of substantial renovation almost precludes any sort of restoration project.

4:50 p.m.

Liberal

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

Are you recommending 60%? Is that what I see?

4:50 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

No, I think those are two different points.

We identified a number of barriers and disincentives that exist within the existing Income Tax Act, and while we would be interested in discussing removal of those barriers, we are proposing a new tax incentive that would encourage and attract developers and owners to historic buildings.

4:55 p.m.

Liberal

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

So you wouldn't necessarily touch the GST component and ask that it be applicable for restoring?

4:55 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

No, not necessarily.

4:55 p.m.

Liberal

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

Okay.

And the fund that you're asking for the heritage properties, who would manage it?

4:55 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

Well, it could be managed jointly between an organization like Parks Canada, the government agency, and a non-profit organization like the Heritage Canada Foundation. Our experience shows that partnership between government and a non-profit allows increased ability to attract donations in the private sector.

4:55 p.m.

Liberal

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

Has that ever been done before? Has it been done in the past?

4:55 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

No. The national cost-sharing program has existed in the past, but it's always been managed entirely by a Parks Canada agency.

4:55 p.m.

Liberal

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

Okay. How much were they given? How much did you have in the past?

October 25th, 2010 / 4:55 p.m.

Executive Director, Heritage Canada Foundation

Natalie Bull

There was $20 million made available in the 2009 budget--made available over a four-year period--but that money has now all been committed even within the first year.

4:55 p.m.

Liberal

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

Okay. Thank you.

Mr. Creber, in terms of your members, you talked quite a bit about trying to support or make sure that the EI programs assist the transition for direct sellers. But I'm wondering, in terms of tax policy, does that affect your members as well when the taxes are...? You talked about harmonization, but does that affect your sellers?

4:55 p.m.

President, Direct Sellers Association of Canada

Ross Creber

Well, as you know, the Direct Sellers Association and the federal government put together the GST honorary collection mechanism for the collection of the GST based on the full retail value of the sale of products.

4:55 p.m.

Liberal

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

So for you, the more provinces that are harmonized, the easier it is, is that it, in trying to reduce all regulatory burden?

4:55 p.m.

President, Direct Sellers Association of Canada

Ross Creber

It doesn't...well, I shouldn't say it doesn't seem to bother us. We harmonize the QST under the mechanism. We harmonized the mechanism when the maritime provinces first came on board with the 15% HST, and we've done the same thing in Ontario, and British Columbia is the same way as well.

4:55 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you.

Thank you, Mr. Pacetti.

Mrs. Block, you have a very brief round, please.

4:55 p.m.

Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Thank you very much, Mr. Chair.

My question is going to be for the Canadian Museums Association.

First I want to just acknowledge my appreciation for your comments around the need for us to strike a balance between discipline and strategic spending in critical areas and restraint in others in order to decrease the deficit.

My question is in regard to recommendation number 2, “Matching Donations ($25 million per year)”, and the last statement that says, “The matching only applies on amounts over and above what the museum normally raises.”

How did you come up with the number of $25 million, and how does that fit with the last statement in that recommendation?

4:55 p.m.

Executive Director and Chief Executive Officer, Canadian Museums Association

John McAvity

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

We based it on a program that already exists in the performing arts; that is, for orchestras, symphonies and dance companies, theatres, and so on. It is a $25 million program. It has been enormously successful. Museums are not eligible for that program. Furthermore, that program is restricted for long-term endowment building, and in this interest rate environment we feel this program would be much more beneficial to be open for matching of all sorts.

We're very confident over that figure. We think it's actually a fairly modest figure. It will lead museums to stand better on their own two feet. These are very expensive operations, even though some of them might be volunteer run, but they're very important institutions for the long-term horizon of the nation.

4:55 p.m.

Conservative

The Chair Conservative James Rajotte

You have one minute.

4:55 p.m.

Conservative

Russ Hiebert Conservative South Surrey—White Rock—Cloverdale, BC

Thank you.

Mr. McAvity, I think you mentioned that Canadian banks do or do not charge for credit card donations made to charities?

4:55 p.m.

Executive Director and Chief Executive Officer, Canadian Museums Association

John McAvity

My understanding is that all donations made by credit cards are subject to fees by banks or other processing agencies—

4:55 p.m.

Conservative

Russ Hiebert Conservative South Surrey—White Rock—Cloverdale, BC

Is that the case in other countries?

5 p.m.

Executive Director and Chief Executive Officer, Canadian Museums Association

John McAvity

To my knowledge, they are exempted from that in most other countries. In Australia that is the case, and in New Zealand, and in a number of other cases.

I think from a consumer's point of view, when you're going to give $100 to a charity of your choice, you think that all $100 is going to the charity, whereas in effect a percentage, 2%, 3%, 4%, or 5%, is actually going for the management of the transaction.

5 p.m.

Conservative

Russ Hiebert Conservative South Surrey—White Rock—Cloverdale, BC

To the bank or to the credit card company, like VISA or—

5 p.m.

Executive Director and Chief Executive Officer, Canadian Museums Association

John McAvity

That's right.