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.
4:40 p.m.
Pensions and Disability Insurance Officer, Public Service Alliance of Canada
That's correct. It wasn't too long ago that we used to pay women differently for exactly the same work. As I say, that seems to be a direction that perhaps we're going in with respect to this in terms of young people.
4:40 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
I already have significant concerns about young people and the crippling debt they're coming out of university with now.
4:40 p.m.
Pensions and Disability Insurance Officer, Public Service Alliance of Canada
Absolutely.
4:40 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
That's really all I have on pensions.
Mr. Turnbull, I'll turn to you for a second, sir.
When you were referencing derivatives in 2008—I am far from expert on that situation—it struck me that when the catastrophe happened in the United States, there was kind of a free-wheeling attitude going on down there. They were bundling derivatives and they knew the mortgages were not good. They knew in back of all of this....
Canada did very well during that time. Was that because we weren't invested in derivatives? What was the reason?
4:45 p.m.
Special Counsel, Financial System, Bank of Canada
My understanding is that, as you suggested, the large Canadian market players did not get into the derivatives market to the extent that their European and American counterparts did. They did dabble in it but they tended to stick more to basic banking and investment vehicles.
4:45 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
In a less polite way, I think they weren't as greedy as some of their counterparts in the United States and didn't take the risk as a result.
The changes in Bill C-45, in this regard, are probably something worthwhile. It wasn't that we had such great protection before. It was that we were lucky in a lot of senses of the word. Now we do need the provisional changes that we see in there, from your perspective.
4:45 p.m.
Special Counsel, Financial System, Bank of Canada
That's right. These are changes to the financial plumbing or the financial infrastructure, to ensure that if we get into trouble in the future, with institutions going into default and this kind of contagion effect, the clearing systems that are designed to add stability to the system will hold up in these situations.
Those are really the facilities we're depending on to control risk so that these types of things don't happen in the future.
4:45 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
I'm coming back to you, sir, since you're back at the table.
The number of your members who are losing their jobs I understand is in the 40,000 range. Is that a correct figure or close?
4:45 p.m.
National Executive Vice-President, Public Service Alliance of Canada
Not quite for PSAC members. For PSAC members it's closer to 20,000.
4:45 p.m.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
Across government services I understand it's about 40,000.
Do you have any estimates about the ripple effect of that?
Every good-paying job has an effect on our economy. It's like in automobile manufacturing. They believe that for every job in automobiles there are five to seven jobs created around it.
Do you have any estimate on that figure and what that loss would be?
4:45 p.m.
National Executive Vice-President, Public Service Alliance of Canada
We know that in small town Canada it's going to have a devastating effect, for example, in places like Montague, Prince Edward Island, and St. Andrews, New Brunswick, where there's a loss of federal jobs. We engaged with the province of P.E.I. on the loss of federal jobs, with the provincial government and the municipality of Charlottetown. They are very concerned about the effect that the federal job losses will have.
Across the country we've been talking to people like coffee shop owners and bike store owners who say they're going to be out of a job because the money is going to be going out of the community.
Every federal job that's lost, especially in small town Canada, has that trickle down effect. As I said, the people in small business in those communities are going to be faced with a loss of business and, therefore, a possible loss of their own business.
4:45 p.m.
Conservative
November 6th, 2012 / 4:45 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Thank you, Mr. Chair, and welcome to the witnesses.
I'm going to start by asking about a few measures we haven't talked about that are in Bill C-45. I think it's important that we get your input on those as well.
I'll start with Mr. Lavoie. You and I have had an opportunity to talk about some of the things our government has done in the past, in the hopes of creating jobs and helping businesses. These are things like the decrease in the GST, the corporate tax decreases, limiting the EI premium to 5¢ instead of 15¢, not opting for doubling of CPP as proposed by the NDP, not going to a 45-day work year that would cost businesses. For the most part, I know that your organization was very supportive of those measures to help your businesses. I appreciate that. I see you nodding your head. Hopefully that means it is still the case.
In this bill, there are a couple of measures I haven't heard you speak to, so I would like to give you an opportunity. On the accelerated capital cost allowance for clean energy generation equipment, I'm wondering if you can tell us how that investment would help your businesses. Is it a good measure in Bill C-45?
4:45 p.m.
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
We are quite supportive of the accelerated capital cost allowance. We see it as a great tax incentive for making companies invest more in what you call productive assets, in this case clean energy assets. We think that should be applied to any kind of machinery and equipment used for manufacturing. As it relates to the SR and ED tax credit, why not for any piece of equipment used mostly for R and D purposes?
4:45 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
There's also the hiring credit for small business that's in this bill. I would be interested in knowing if that's going to help your businesses, if you think that's a good measure that we ought to continue with.
4:50 p.m.
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
Are you talking about the $1,000 rebate?
4:50 p.m.
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
In an ideal world, I think you will hear us, the CFIB and others say that we would like a freeze in the premiums. In the current context I think, as you mentioned, the 5¢ increase instead of 15¢, and 7¢ instead of 21¢ for employers, is reasonable. The CFIB will have better numbers about this. I know that for some companies that are near the $10,000, they won't have access to the rebate. I don't know how big it is, but it's mostly for small companies. I'm sure the CFIB will talk about that.
4:50 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Actually, we had officials in.
I was quite surprised to hear that 534,000 companies took advantage of the hiring credit that was in place before, and so we're extending that. It saved them about $205 million which they were able to obviously reinvest in other places: R and D, innovation, or anything else. It's up to them, but it's money saved.
As for the PRPP measures, there was a lot of discussion when the PRPP bill first went forward. Now that we're trying to finish up with the PRPPs, have your companies voiced an opinion on that? Do you have any stories to tell about whether you think that's a great measure or not?
4:50 p.m.
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
No, I don't have particular stories, but I did hear some of our members say that they were looking at that as a good alternative. Of course, I would say that the major issues we have with the pension fund are more related to pension fund insolvency issues. Some have to do with the provincial level more than the federal level, but I haven't heard anything against that measure.
4:50 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Excellent.
I might do the same thing with Madame Presseault and Mr. Cudmore, the wonderful general accountant at the end of the table, from TSGI.
Do you think the RDSP, registered disability savings plan changes that are in Bill C-45 are good measures? Are they important to families? Will these help families?
4:50 p.m.
Vice-President, Government and Regulatory Affairs, Certified General Accountants Association of Canada
We think the RDSP is excellent. We've participated in consultations leading up to the proposals included in budget 2012, and absolutely, on the surface, we think this is a very positive impact. Of course, we would like to see things go a bit further. We recommend, for example, rollover options for RSPs. Right now, our rollover options are just for RESPs. We've heard back from some of our members who serve that community very well.
As constructed now, the RDSP poses some challenges. It is inaccessible, I would say, for those individuals who become disabled at an older age in life. For example, for those who are
living with multiple sclerosis or
muscular dystrophy, it would not be helpful, but on the surface, yes, it's a good step.
4:50 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
That's good feedback. I appreciate that. We'll take that into consideration for future.
Did you have any comments about the RDSP changes? Do you think those will benefit your clients?
