Evidence of meeting #89 for Finance in the 41st Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was changes.
A video is available from Parliament.
November 6th, 2012 / 4:35 p.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
No, and I'm not saying that. In fact, I'm saying the exact opposite. They're not taking money out of SR and ED. Any savings that are there are still going to be used for that program. Are you familiar with that? You're not aware of any tax cuts?
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
It's not going to be reused for SR and ED. It's going—
Conservative
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
Direct funding, what is it? I couldn't tell, I don't know.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
My understanding is that there are not going to be any cuts under the program. There might be some savings, but those savings will be redirected into direct funding for those projects.
I'm just curious. You mentioned that this is one of the most important things for the oil and gas industry. I don't know if the Government of Canada hands out $50 million a day, but right now Canada and the oil and gas industry, because of the distribution struggle we have with our networks, are losing somewhere in the neighbourhood of $50 million in direct profit per day on our oil industry. Are you familiar with that?
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
[Inaudible—Editor]
Conservative
Conservative
Conservative
Conservative
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Yes, they're getting a discount, a great deal, a $50 million a day deal, which is going to be $100 million a day in about 15 years. Are you aware of that?
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Doesn't that seem like a much more pressing issue than the SR and ED tax credit?
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
I agree, but would you not suggest that it's a much more important issue to deal with? I'm not saying that we shouldn't deal with SR and ED. I'm just suggesting that this is much higher on the priority list.
President, TSGI-Chartered Accountants
It's a very important issue, but I also think that SR and ED is very important.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
I'm not saying it's not, sir. But your organization and Mr. Lavoie's organization have been asking for simplicity and for predictability and saying that it's far too complicated. This government's set up a task force to actually recommend changes to do exactly what your organizations are asking for. Is that fair enough?
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Okay.
In fact one of the particular proposals is to move to a more simplistic method by removing the eligibility of capital from the base of eligible expenditures, which is the most complex component of it.