Evidence of meeting #122 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was countries.
A video is available from Parliament.
11:15 a.m.
Professor, Richard Ivey School of Business, As an Individual
After the merger, I took out a membership in the Conservative Party of Canada. I went to the first leadership convention and I voted for Mr. Tony Clement. Unfortunately, he did not win. I left the party shortly afterwards.
I was in the Green Party for a while and I held a number of roles, including riding president of London North Centre. I left the Greens a number of years ago and am no longer affiliated with them.
11:15 a.m.
Conservative
Mark Adler Conservative York Centre, ON
In 2007 you wrote in an article, in which you said, “Together we can help defeat the Conservatives”. That was when you were with the Green Party?
11:15 a.m.
Conservative
Mark Adler Conservative York Centre, ON
Okay.
The accelerated capital cost allowance: Mr. Laws, you're with the—
Did I miss something humorous?
11:15 a.m.
A voice
No.
11:15 a.m.
Conservative
11:15 a.m.
Conservative
Mark Adler Conservative York Centre, ON
Mr. Laws, the accelerated capital cost allowance, you would like to see that permanent?
11:15 a.m.
Executive Director, Canadian Meat Council
Yes, absolutely. The reason, as I think another witness prior to me said, is that it takes about five years to fully commission the project. So if these particular items were even allowed to be reclassified, or whatever way in which it would be done, that would be very helpful for our industry. Especially with the strong Canadian dollar, it is an opportunity for our members to purchase equipment and to invest. It's certainly a challenge finding enough labour to work in the facilities. If they can buy new equipment and write it off more quickly, they can afford to do so. It really does help the Canadian meat industry to remain competitive.
11:20 a.m.
Conservative
Mark Adler Conservative York Centre, ON
We heard earlier about the 60% writedown in the U.S., the double-declining writedown.
In your opinion, how do we compare to what the U.S. is offering? Does the ACCA in essence create a level playing field for us on the international scene?
11:20 a.m.
Executive Director, Canadian Meat Council
That's a good question. I don't have that answer. But certainly, the accelerated capital cost allowance really does help our members to purchase new capital equipment.
11:20 a.m.
Conservative
11:20 a.m.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
Thank you very much, Mr. Chair.
Mr. Moffatt, it's too bad you are being criticized for your opinions. I hope that my colleagues will not hold against you the fact that you have been a member of the Progressive Conservative Party and the Conservative Party. Let's move on to another topic.
When we had before us the Bank of Canada Governor, Mark Carney, one of my colleagues, Randy Hoback, said that the decision to impose certain tariffs should have been made 20 years ago. He was clearly focusing on China, as is the government doing when it comes to the general preferential tariff.
When we look at China's track record, we must acknowledge that the country has taken some fairly extraordinary measures to establish its current position within the global economy. It has been using some very questionable methods, which sometimes border on dumping.
Could you comment on that very late adjustment in China's case?
11:20 a.m.
Professor, Richard Ivey School of Business, As an Individual
It is a little surprising, so I fully agreed with the government when they said that the GPT is out of date and needs to be updated—absolutely. It probably needed to be updated 10 or 20 years ago, and for whatever reason.... I was in high school, so I don't know why it wasn't updated, but it was not.
11:20 a.m.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
As for the general preferential tariff, I would like to discuss another topic—the regressive aspect, economically speaking, of those tariff increases.
Let's take the example I have already used in committee and in the House. When I was a boy, my geometry kit was made in Canada. That's a good example. Today, I think it's impossible to find such a kit made in Canada.
Mostly low-income households will be hit hard by those tariff increases. Clearly, this is a matter of proportion.
Do you want to comment on the regressive aspect of those tariff increases?
11:20 a.m.
Professor, Richard Ivey School of Business, As an Individual
Absolutely.
Consider a coffee maker. A low-income household is probably going to buy an entry-level coffee maker that is built in China. Somebody who makes six or seven figures a year is probably going to buy an expensive espresso machine built in Switzerland that is not affected by these changes. So these changes are really focused at low-end, sort of plastic goods, which are more likely to be purchased by low-income households.
So absolutely, there is a regressive element to this.
11:20 a.m.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
Thank you for the information. I am especially sensitive to that.
Before I was elected in 2010, my gross salary was only about $30,000. Of course, my situation has changed radically, and I am now less affected by those kinds of increases.
Do you think we can expect additional impacts, imbalances and other economic consequences to arise?
11:20 a.m.
Professor, Richard Ivey School of Business, As an Individual
The regressive issue is a large one. What I worry about—and again, this is coming from southwestern Ontario, from seeing the job losses in our area—is a weakened retail sector. At the end of the day somebody is going to end up paying these taxes, and Canadian consumers are increasingly deciding to go across the border.
Are tariffs the only issue? No, I agree with Mr. Adler on the Canadian dollar, and there are a number of reasons why people cross the border. But this is just one thing pushing at the margin that's going to get more and more people shopping in Port Huron instead of in Sarnia.
11:25 a.m.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
We have discussed cross-border trade and the reversal of the situation. That objective fact is fairly significant.
I totally understand the comments of my colleague Mark Adler, who was explaining that the Americans used to suffer the consequences. However, that's not really a reason for us to stand idly by.
What do you think should be done to try to address this issue?
11:25 a.m.
Professor, Richard Ivey School of Business, As an Individual
Absolutely. We need to do whatever we can to help the retail sector here. So the idea that we can just hope that these tariffs are somehow going to get absorbed by the retailer and not be passed along to the consumers and not affect cross-border shopping, I think, is unrealistic.
11:25 a.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Mr. Moffatt, you are a popular gentleman today. I am curious if you are still part-time at the Richard Ivey School of Business.
11:25 a.m.
Professor, Richard Ivey School of Business, As an Individual
Yes I am.
11:25 a.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Are you still an assistant professor at that school?
11:25 a.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
And you're still dodge ball's answer to Gordie Howe?
