Finance Committee on Oct. 31st, 2011

[Mark Adler, Conservative, York Centre, ON]

Yes, I know.

Ms. Wallace, you're looking neglected, so I'm going to ask a question to you.

The 905 area is growing by leaps and bounds, so it's a question for the city of Toronto. The government's pursuit of a low-tax plan to create jobs and strengthen the economy, how has that helped your members? Would you suggest we take the route of what the opposition is calling for, in terms of increasing taxes, and how will it affect your members?

[Lynne Wallace]

Maybe I should have remained neglected.

I believe that lowering taxes does create incentives for small and mid-size business. We primarily speak for the small and mid-size business community, and I think there's no question they are the engine that can generate the greatest number of jobs for the future.

Incentives that we can create for R and D investment, and the creation of lower-tax and tax-break types of incentives will unquestionably impact on small and mid-size businesses in a positive way.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Adler.

Mr. Mai, go ahead, please.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

I'll follow up with Ms. Wallace.

We, on this side, have been suggesting a reduction in the small-business tax rather than reducing corporate taxes for big companies that are more profitable. That's one thing we've been doing on this side, simply for your information.

Mr. Mills, in terms of cost regarding climate change in Canada, it has been estimated at $2 billion for 2010. From this side again, we feel the government has not been addressing the issue, almost not at all, and what we're looking for is to have a bit more leadership.

I see that one of your recommendations is to establish a Canadian policy forum to engage business and government leaders in identifying weather and climate challenges. How does Canada compare with other countries on that issue?

[John Mills]

Thank you very much for the question.

I actually don't have specific information about how we compare with other countries, but I can give you some historical information and what I think is needed, going forward.

Canada, on the climate change and atmospheric science side, has always had a leading role internationally, and I think we have lost some of that over the past number of years. However, we still have a robust science community out there that is eager and willing to continue to get engaged.

Right now, one of the issues we're facing is a significant university community with post-doctorates or what have you, who are now having to look for jobs outside of Canada because we don't have the money to support them in Canadian universities.

The proposal we're making would maintain those skilled knowledge workers in Canada.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Thank you very much.

Mr. Laskowski, we've been telling the government that we need to invest in infrastructure. I know it's not a part of your recommendation, but being from the south shore of Montreal and having the Champlain Bridge there, we know that in terms of aging infrastructure the Federation of Canadian Municipalities has been talking about $130 billion in connection with infrastructure deficit, and we've talked about the loss of $2.1 billion per year for the Montreal region in terms of loss of productivity.

I'm sure that affects your industry, so can you tell us whether or not we should address the issue of aging infrastructure and if that would help your members?

[Stephen Laskowski]

First of all, we're obviously supportive of the bridge improvements in Montreal.

With regard to aging infrastructure, I think aging infrastructure is an issue worldwide, so one of the things our alliance has done is provide all levels of government with a list of strategic infrastructure. We're not going to be able to fix everything in one fell swoop, so one of the things we're asking governments to do when looking at infrastructure projects is to try to de-politicize the process, if possible, and take a look at the economic benefits of building a road, perhaps, to somewhere up north because it makes a good ribbon-cutting ceremony, versus pushing the money over to trade routes for economic reasons. And that's always been a difficult issue for road spending, because it's twofold.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Thank you.

I don't have a lot of time, so I'll simply make a comment regarding investing in festivals and major events. I'm from the region of Montreal, so I know it's very important, and I think we should invest in that and I think additional funding would be required.

Thank you very much.

[The Chair, Conservative, James Rajotte]

Okay, we'll leave that as a comment.

Mr. Van Kesteren, please.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Thank you, Chair.

Thank you all for appearing this morning.

Mr. Laskowski, I read your brief again. That's quite an impressive industry you represent. I think we oftentimes neglect to realize just how important trucking is.

You're faced with a lot of challenges. One, the border issue, has been noted by two of our panellists. I crossed one of the borders in Sarnia with your organization back in the winter of 2007 or 2008. It was quite an experience. I'm glad to hear that there has been improvement. When I drive through the border, and I drive through the border at Windsor often, I can see that we've managed to eliminate a lot of that. There are still a lot of problems.

One of the trucking industry issues you referred to was the enviroTruck. We've pretty much lost our manufacturing in this country. I know that a number of unions have suggested that if you don't build them here, you shouldn't be able to drive them. What would it do to your trucking industry if we had that type of policy in place?

[Stephen Laskowski]

Well, there would be no trucks. One or two trailer manufacturers are left in Canada, but the trucking industry has moved either south of the border or south of that border. It has been removed.

We are the largest mode of transportation for freight. That's a lot of equipment and a lot of opportunity. So one of the things we're saying is that it's the aftermarket devices, the devices on that equipment, and the engines that go into them that can be recouped by our country through a strategic plan.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

The industry has done an excellent job. You were required to reduce sulphates and pollutants in the air. I think we don't acknowledge that enough and give you and the industry enough credit for that. I always think back in terms of gallons. I think a truck years ago would get six to eight miles to the gallon. That obviously is a very important benchmark, because you lose your competitive edge.

I'm glad that you brought up the enviroTruck and the importance of the industries that surround it. We need to get you up to Ottawa with that enviroTruck so we can show it.

The other thing I'd like your industry to do, possibly, is find out where those are being created. I think you told me one time that to be competitive with the Americans, we need to really excel in this area, and we have been doing that.

We talk often about the cross-border issues with the United States. What about interprovincial borders? Are you experiencing some issues with regulations and such?

[Stephen Laskowski]

Interprovincial regulations in trucking have always been an issue. We're federally regulated, but really, most of the rules defining our weights and dimensions and how long drivers can drive are provincially regulated. That's where the rubber hits the road. Does the federal government have a role? It could have a role if it chose to. But over the last 30 to 40 years, the federal government has slowly faded into the distance with regard to bringing the hammer down with regard to harmonizing these types of rules.

The industry continues to struggle. For example, with this GHG regulation, certain types of tires that will reduce emissions anywhere from 5% to 9% will be mandated in the United States, and Ontario and Quebec will be allowed to use those tires. The other provinces won't be allowed to use these tires because of provincial regulations. That will mean that Ontario and Quebec carriers that go out of those provinces won't be allowed to use them either. That's just some insight into how our world operates and how provincial regulations that aren't harmonized interfere with productive configurations.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

I have a quick comment. I would suggest that possibly one of your recommendations be that the federal government continue to move forward with harmonization across provinces.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Van Kesteren.

We'll go to Ms. Glover, please.

[Shelly Glover, Conservative, Saint Boniface, MB]

Thank you, Mr. Chair.

I just want to thank the witnesses before we get started. I'm not going to have enough time for questions for everyone, but I will start with our festivals representative.

I just want to reassure you—I know you said during your presentation that you were hopeful that pride events will be considered—every organization that puts forward an application for funding, with this government anyway, is considered, and I'm very proud to have taken part in a number of pride events in Winnipeg. In think I've been to five as an individual and then several before that while providing security. I was partners with a gay and lesbian liaison for the Winnipeg Police Service. I intend to continue to enjoy that festival in my home town, but I want to reassure you.

I also want to ask you a question about a recently announced federal tourism strategy. I don't know if you've had an opportunity to look at the strategy. It sets out about 30 different priority areas, such as increasing awareness of Canada, which you mentioned in one of your recommendations. It also focuses on facilitating access and travel to Canada, which was another recommendation you made, and encouraging development of extraordinary tourism experiences and so on and so forth. There are about 30 priority areas.

Have you seen the strategy? Have you assessed it, and if so, what is your assessment of it?

If you haven't, I will move on to another question.

[Janice Price]

We actually have a wonderful partner in the Tourism Industry Association of Canada and its CEO, Mr. Goldstein. We have been working very closely with them, and in fact he joined us for all our meetings on the Hill last Monday.

One of the key issues we're looking at there, which I would really like to bring to the committee's attention, is that we not only are recommending that this new investment strategy allow us to create the product and the marketing to attract more visitors to Canada, but that, as the strategy points out, we have a significant tourism deficit. We have a travel deficit.

One of the other things we want to address with marquee festivals and events, as well as festivals and events throughout our communities, is that this kind of investment and the way it will enhance our product offerings actually will help us to keep Canadians at home as well.

[Shelly Glover, Conservative, Saint Boniface, MB]

I am not hearing an answer directly affiliated to the strategy itself. Is this strategy a good step forward or not?

[Janice Price]

Yes, we think it's a strong strategy, and we endorse it, and they in turn are endorsing our requests.

[Shelly Glover, Conservative, Saint Boniface, MB]

Thank you.

I'm going to move to the Vaughan Chamber of Commerce for just a moment. We have put a number of measures in the next phase of Canada's economic action plan, and I'd like your comments on them. There are things like providing renewed funding of almost $100 million over two years for research development and demonstration of clean energy and energy efficiency; expanding eligibility for the accelerated capital cost allowance for clean energy generation; and providing $8 million over two years to promote the deployment of clean energy technology in aboriginal and northern communities.

I bring that up because in your recommendations you focus very much on solar energy and the solar industry. Do you think those three measures I just mentioned will help address some of the recommendations you've just made here in committee?

[Lynne Wallace]

There's absolutely no question that continued and growing investment in innovation is going to be the driving force for the jobs of the future, and those are really our driving mandate.

Our recommendation is a little bit different from what everyone else has come forward with today, in that it is a very pragmatic and practical “let's get this under control before it gets bigger than we can control” kind of thing. That is a very real fact that we uncovered as we went through this.

[Shelly Glover, Conservative, Saint Boniface, MB]

Right, and the measures--

[Lynne Wallace]

I'm a scientist by training and by background, so I certainly would always advocate increased investment, but I also think we should leverage the coordination we can acquire between the university system and the college system in this country. There has been a very unfulfilled linkage between those two levels of education.

[Shelly Glover, Conservative, Saint Boniface, MB]

You know we also have the linkages in the next phase. Do you like that measure the government has put forward?

[Lynne Wallace]

It's a start. What's really clear is that there's a growing appetite within the provincial structures across this country to start looking at cross-credit, to start looking at continuance of education from the college system to the university system, to start looking at really using the college system to fill accreditation to certified standards so that we can have reliable expectations of deliverables, of what we get from our professionals and our technical support people.