Finance Committee on Oct. 5th, 2011

[Audrey Azoulay]

There are indeed some very positive initiatives being undertaken right now to open up some economic space and establish trade agreements with Europe, India and others. Obviously, we support all of those endeavours and we offer our full cooperation. In fact, we have no choice: our economy and our businesses absolutely have to enter the international arena. It involves more than just trade agreements, but it does start there. Does that answer your question?

[The Chair, Conservative, James Rajotte]

We'll go now to

Ms. Boutin-Sweet.

You have five minutes.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Good morning and thank you. I want to welcome you all. Montreal is a beautiful city. I encourage you to see as much as you can.

I was quite surprised to hear both the Conseil du patronat du Québec and the CSN say the same thing about employment insurance. Both said it was necessary to make employment insurance more accessible. And there are more and more forms of atypical employment, people who work on contract and so forth.

I would like both organizations, beginning with the Conseil du patronat du Québec, to tell us how they think it would be possible to improve access to EI.

[Norma Kozhaya]

Although we can agree with the CSN on a number of things, when it comes to access, we don't necessarily share the same vision. We believe in the importance of improving access to training under the EI system. For instance, Manufacturiers et Exportateurs du Québec suggested tax credits or an EI contribution exemption for employers that offer training. Training is essential, in our view. Investment in technology is fine, but it needs to go hand in hand with an investment in training.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Forgive me for interrupting, but I was talking about the workers.

[Norma Kozhaya]

If employers provide workers with access to training, to skills recognition, and if that training and those skills benefit the company, employers will offer workers more. It will enhance a worker's mobility if, for some reason, the employer has to lay people off. Being well-trained and having their new-found skills recognized will help them find another job. That is how I see workers benefiting from this measure.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Thank you.

Mr. Patry.

[Pierre Patry]

First off, it is important to keep in mind that as a result of successive EI reforms, today, less than half of all unemployed workers are entitled to receive employment insurance. In addition to those reforms, the labour market has changed. You mentioned atypical workers and the fact that fewer and fewer people can access EI.

We believe the eligibility thresholds need to be reviewed: if the number of hours changed to 360, EI benefits would be more accessible. Get rid of the qualifying period, which unfairly penalizes people—going two weeks without pay is no small feat. Raise the replacement rate from 50% to 60% and create a program to help older workers.

A large number of people in the manufacturing sector have lost their jobs. When someone older than 55 loses their job, it is incredibly tough for them to upgrade their skills, especially if they didn't get adequate training to start with. So we need to build a bridge to provide these workers with a decent income until they retire. Two or three years ago, research showed that similar support programs for older workers would cost the Canadian government around $200 million. That's just a drop in the bucket, and it would help these people live in dignity until they retire.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

My second question has to do with public transit in Montreal, so this is for the Société de transport de Montréal.

First, I would like to congratulate you on increasing ridership in Montreal. That just goes to show that the better services get, the more people use them. As I see it, a comprehensive plan is key.

Second, I want to discuss a plan that would be tailored to Montreal specifically. As a Montrealer, I have noticed two things. One is that cities like Vancouver have an excellent train that goes from the airport to downtown, which is not the case in Montreal. You touched on it, but could you elaborate further? The other thing I have noticed is that the east-west connections are great, even though they could stand some improvement, but the north-south connections are inadequate. Could you comment on that as well, please?

[Marvin Rotrand]

First of all, the city of Montreal adopted a transportation plan in 2008. The STM has a strategy, which the agglomeration council will be adopting as early as next month. It sets out three different scenarios. The preferred scenario is the one aimed at increasing ridership to 540 million passenger rides by 2020.

We have already begun working on certain aspects. We plan to increase our bus fleet. Right now, we have 1,680 buses, and by 2020, we want to have 2,100.

We plan to expand the metro network. The Government of Quebec has already agreed, in principle, to three expansion projects: the blue line, eastward to Pie-IX Blvd and the borough of Anjou; the yellow line on the South Shore; and the orange line, north of Côte-Vertu, to create a loop with the Laval line.

These projects represent major investments. The plan is in place. The funding has not been secured. The STM and the city are studying the part of the transportation plan that calls for the addition of a tramway and streetcars in the short term.

So all the plans are in place to improve service. We can genuinely compete with the best Europe and Asia have to offer if we get the funding we need. Nevertheless, we do only what we can afford. Right now, transit fares account for about 45% or 46% of our costs. Fares are low in Montreal, and we want to keep it that way.

While maintenance work was being done on the Jacques-Cartier bridge, public transit experts from Europe came to Montreal for a few days to take part in discussions with us. We learned that Europe has systems that are even cheaper. What it boils down to, then, are subsidies from higher levels of government.

[The Chair, Conservative, James Rajotte]

Thank you.

Mrs. Glover, please go ahead.

[Shelly Glover, Conservative, Saint Boniface, MB]

Thank you, Mr. Chair. Good morning, everyone.

I have three quick questions, but I only have five minutes. So we will go over them quickly.

I will start with a question for Ms. Azoulay. I will ask my question and give you a few minutes to think about it. The 2011 budget includes an accelerated capital cost allowance for investments in machinery and equipment.

Can you give us some specific examples of the investments made by your members as a result of this allowance? I would like you to give us some examples of investments in advanced machinery.

I would now like to ask Ms. Baxter a question.

As you know, in Budget 2011 we included some very important supports for caregivers, including—and I think it was already mentioned earlier—the family caregiver tax credit, and the elimination of the $10,000 limit on the amount of eligible medical expenses for caregivers who can claim the tax credit for those, et cetera.

As we're planning for the next budget, I'd like to know whether these are good measures or steps in the right direction?

[Sharon Baxter]

The needs of Canadian families and the caregivers who are required to take care of ill and dying Canadians are complex because families are different.

[Shelly Glover, Conservative, Saint Boniface, MB]

Ms. Baxter, I'm sorry to interrupt, but I have three questions and five minutes only.

[Sharon Baxter]

In our blueprint for action, we lay out about seven different ideas.

[Shelly Glover, Conservative, Saint Boniface, MB]

And I read them.

[Sharon Baxter]

The tax credit is a great idea, but the $300 doesn't go that far. I think we need to think about how that actually gets in the pockets of Canadians.

Also, caregivers are often aged. If you're not earning income, some of the tax benefits we've come up with are not going to benefit them. I think we need to look at a number of different initiatives; there's not one be-all and end-all measure.

I think the compassionate care benefit has been underutilized by Canadians, for a number of reasons. It was marketed poorly and it is also fairly inflexible in some areas. I think we can do it. It's a great program. I think we can do a lot better with it. I don't think it has to cost billions of dollars.

We need to look at some of that. We're on the right track, but I think we need to look at more of a basket of different types of things that will help. Not everything will help every family.

[Shelly Glover, Conservative, Saint Boniface, MB]

Thank you very much.

Madame Azoulay.

[Audrey Azoulay]

I do not have specific examples of companies that have made specific investments. We need to understand that this type of measure simply gives a little breathing room in terms of funding, investment and incentives to invest. I think that is all we really need to understand.

This was like a breath of fresh air for our members.

[Shelly Glover, Conservative, Saint Boniface, MB]

Okay. Could you send us some examples? Could you ask your members to provide the committee with the examples at a later time?

[Audrey Azoulay]

With pleasure.

[Shelly Glover, Conservative, Saint Boniface, MB]

Thank you.

My third question is for Mr. Rotrand.

I'll switch to English, as it's the first language of both of us, I believe.

As you know, our government introduced a tax measure, the public transit tax credit, for individuals.

I'm very pleased to hear that you have encouraged more ridership. I think that's great and want to congratulate you on that. Do you think this tax credit has helped to encourage that ridership? Do you think it is a good tax credit that should be kept?

[Marvin Rotrand]

We support it, Ms. Glover. It has actually had an impact. We're also urging the extension of the tax credit to all the provinces and are urging the federal government to extend that as well.

Ridership gain and ridership retention are really key to all of the transit systems in Canada. I've noted that some of the other systems in Canada are having the same financial difficulties as we are having.

Mr. Rajotte, I believe, is from Edmonton. We were out there a few years ago for a conference. Edmonton Transit System is excellent. There's a wonderful debate in Edmonton about the role of transit. I was really surprised, as Alberta is actually a leader in public transit.

[Shelly Glover, Conservative, Saint Boniface, MB]

Do you think this credit helps there as well?

[Marvin Rotrand]

Yes, it does help there.