We'll go to Ms. Glover, please.
Evidence of meeting #88 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rate.
A video is available from Parliament.
Evidence of meeting #88 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rate.
A video is available from Parliament.
November 5th, 2012 / 3:45 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Here is a quick question following along the same lines as Mr. Jean.
I think we have something on the order of 536,000 small businesses in the country. Do you have the number of businesses that took advantage of this measure the last time it was offered?
3:45 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
From 2011, the data indicates that about 533,000 employers benefited from the credit.
3:45 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Wow. That's 533,000 small business employers who were able to take advantage of this so that they could create 533,000 jobs at a minimum. You're saying that's how many businesses took part, but we're not sure how many of them had one or two positions or more.
3:45 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
Yes, and there are part-time employees. It's just the increase over their year before.
3:45 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
That's amazing; it's awesome. I see no downside to this.
Do you know how much money they were able to keep in their coffers as a result of this advantage provided by the Conservative government?
3:45 p.m.
Director, CPP/EI Rulings Division, Canada Revenue Agency
I believe the number was about $204 million.
3:50 p.m.
Conservative
3:50 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Could I please have some clarification about the mechanism? Let's take a hypothetical situation. Let's imagine that a business is hiring about 15 people for a period of six to eight months and it subsequently lays them off, dismisses them or ends their contract. In that case, would the business still be eligible for the tax credit?
3:50 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
Yes, as long as the business meets the eligibility criteria, meaning that it makes contributions of less than $10,000 and there is an increase in those contributions from one year to another.
3:50 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
So there is no way of knowing whether the jobs created through this mechanism are permanent or temporary, meaning more than one year or less than eight months.
3:50 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
The measure aims to simplify administration. This is done through the Canada Revenue Agency. These are aggregate amounts, meaning the contribution levels, the subtraction of one compared with the other and the allocation of a credit.
3:50 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Although the measure is worthwhile, since it makes it possible to hire new people, there is absolutely no way of knowing how many jobs have been created using this measure.
3:50 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
We do not have information on that.
3:50 p.m.
NDP
Hoang Mai NDP Brossard—La Prairie, QC
Still, you have figures. There have been studies on the regions or places where this has had more of an impact. Do you have data in that regard?
3:50 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
I don't think we have specific data in that respect but, given that the credit is applied automatically, it is really where the small businesses are located. So the distribution would be the same in terms of small businesses in Canada.
3:50 p.m.
Conservative
The Chair Conservative James Rajotte
Okay.
I want to thank our officials for being here.
I want to thank in particular a number of you who commented on the pre-budget consultations, which are ongoing right now at this committee. I appreciate the fact that you referred to the consultations of this committee as leading into a budget and then a budget implementation act. In fact, it was CFIB's number one recommendation in the 2011 budget consultation.
I appreciate this, as the chair. Thank you so much for being with us and responding to our questions.
We will bring the next set of officials forward, and we will move to division 17 of part 4. This is dealing with the Canada Mortgage and Housing Corporation Act.
We'll welcome Ms. Pearse back to the committee.
Welcome back. Do you want to give us a very brief synopsis? It seems to be a very straightforward change.
3:50 p.m.
Jane Pearse Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Yes, that's right.
I think my synopsis is actually longer than the amendment in the act. You'll have to forgive me for that.
This amendment repeals a paragraph within a subsection of the Canada Mortgage and Housing Corporation Act that stipulates that No person shall be appointed or continue as President or as a director from outside the federal public administration if that person...(c) has reached the age of seventy years
This change, to repeal an age limit on the president and directors, is consistent with changes made to other acts in 2011. These include changes to the Canadian Human Rights Act to prohibit federally regulated employers from setting a mandatory retirement age, and to the Auditor General Act repealing provisions stipulating that the Auditor General must cease to hold office upon reaching 65 years of age.
Likewise, there have been changes to crown corporations such as Canada Post and the Business Development Bank as well as the Bank of Canada to remove or amend age limits.
3:50 p.m.
Conservative
The Chair Conservative James Rajotte
Okay. Thank you for that synopsis.
Are there questions?
Go ahead, Monsieur Caron.
3:50 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you, Mr. Chair.
Why was there previously an age limit?
3:50 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Why—