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.
10:50 a.m.
Professor, Richard Ivey School of Business, As an Individual
A little bit.
My larger concern is the fact that tariffs are going up on thousands and thousands of items, increasing prices for Canadian consumers. Certainly, this isn't helping those red tape issues.
10:50 a.m.
NDP
Peggy Nash NDP Parkdale—High Park, ON
It has been suggested that the point of increasing these tariffs is to help Canada in trade negotiations.
Are we in trade negotiations with 72 countries? Do you know that? Do you think this is an effective mechanism for helping Canada's bargaining stance in trade negotiations?
10:50 a.m.
Professor, Richard Ivey School of Business, As an Individual
It's very strange, because the countries that we're in trade negotiations with, such as those in the EU, aren't affected by this plan, and countries that are affected, such as China and Brazil, we're not in trade negotiations with. If you imagine a Venn diagram, that little overlap in the centre is very small. This may change in the future, but as it stands right now, this is affecting a number of countries that we're simply not negotiating with.
10:50 a.m.
Conservative
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you, Mr. Chair.
Mr. Cunningham, I come from a health care background, and I sat on the health committee as we looked at single-flavoured tobacco and some legislation around those cherry-flavoured cigarettes that were single-sold. Certainly, I think everyone recognizes the need for a multi-pronged approach in tackling this issue.
You have a number of examples. Can you talk to me a little about what impact the changes in pricing will have on the shelf pricing?
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
Yes. It's about $5 per 100 grams, so it depends on the size of the container. The price is made up of provincial taxes, federal tobacco taxes, and the manufacturer/wholesaler/retailer price. So there is an increase. It's not going to double the price, but it's certainly very beneficial.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Okay.
You talked earlier about the research clearly indicating that as the price goes up, it impacts usage. Have you done any detailed, sophisticated analysis of this change and what the potential health impacts might be in terms of decreasing usage, or is the analysis not quite that detailed?
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
We have some very good examples from Newfoundland and Alberta, which have taken similar measures with respect to the roll-your-own loophole. That tax increase was followed by increased revenue and a big decrease in the roll-your-own category. We know that every 1% decrease in smoking has an enormous public health impact, so every bit makes a difference. We have some solid Canadian examples as well.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Thank you.
I certainly know there have been challenges with contraband, and price increases have sometimes created a bit of a challenge there. Do these products tend to include a lot of contraband, or is it more the cigarettes coming over that are already rolled? Could you share with us anything in terms of contraband and these sorts of products?
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
The good news is that even the tobacco industry admits there have been significant decreases in contraband. According to their figures, it's almost been cut in half between 2008 and 2010, with some indications of further decreases since then. There are some examples of this, in terms of contraband. But there has been a reduction, and further government measures, including those that are currently before Parliament, will have a further impact.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
That's great.
Overall, what will be the impact on how many Canadians a year will die from smoking or cancer caused by smoking?
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
Every year 37,000 Canadians die from cancer, lung disease, heart disease, and stroke. It remains a leading preventable cause of disease and death, so this will have an impact. We're certainly very appreciative of the support for this.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Yes, of course. The numbers are the most important thing, but obviously there are also huge impacts in terms of the cost to the health care system.
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
There's more than $4 billion a year in direct health care costs. If you look at indirect measures, absenteeism and lost productivity and fires, it's $17 billion a year in direct/indirect economic costs. So there's a huge burden on society, and that's why it's essential that these efforts continue.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Those costs you're citing are directly related to smoking—
10:55 a.m.
Conservative
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
The most recent cost estimate for smoking-caused disease each year in Canada is $4.4 billion, largely paid by provincial governments. With the indirect economic costs as well, the total then becomes $17 billion.
10:55 a.m.
Conservative
10:55 a.m.
Senior Policy Analyst, Canadian Cancer Society
I know you want these figures given your previous work on the health committee and your own professional background. We're down to 17% of Canadians who smoke. That's still five million Canadians. In 1965, it was 50%, but an enormous amount of work still remains to be done.
10:55 a.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
That's great.
Mr. Savoie, could you talk a little about the anticipated impact on your organization of the first-time donor's super credit, and the important work you do?
10:55 a.m.
President and Chief Executive Officer, Multiple Sclerosis Society of Canada
Obviously, we welcome the super credit. I'll just take the MS Bike Tour, which takes place in communities across the country. The average participant is a young parent in their thirties. They're athletic. Some of them are in the early phases of the disease, and they'll do a bike ride on a weekend. They solicit friends and colleagues. This is the way in which people first attach to giving and volunteering and participating in the life of charities, and fund the work we do. Donations give us 97% of our revenue. With this measure, our focus will be on young Canadians in particular, and that's where we're very hopeful.
