Finance Committee on Nov. 5th, 2013

[Glen Hodgson]

I agree entirely. I think you made a very logical case for investing in the port of Halifax. In fact, the Port of Halifax has recently joined our Global Commerce Centre to do research with us on the benefits to Canada of globalization, so I support the logic of your argument.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Keddy.

Mr. Jean, please, final round.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, Mr. Chair.

Thank you, everyone, for your attendance today.

I'd like to talk a little bit about free trade. I understand, in essence, that when we got into government there were about 9 free trade agreements, and today there are somewhere around 40. Is that correct? Is that your understanding?

[Ailish Campbell]

I'm more concerned with the size of the trade than the number, but yes.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I do understand, but we have about 189 countries in the world—relative economies about 200—so with 4 a year and about 25 years of Conservative governments, we're going to have free trade with the whole world. That sounds like a pretty good campaign march, based upon what you're saying trade does for us.

Would you see anything else we could do more aggressively with low-hanging fruit, for instance, other countries out there that are waiting for us to sign free trade agreements? Is there anything we could do that would, in your opinion, move the free trade agenda forward, other than what we're doing now?

[Ailish Campbell]

I'll make three quick points.

The first is that Canada was the driving force behind the World Trade Organization, which of course was founded after the Second World War. It now has over 150 members. If you're looking for a good bang for your buck, it would be in upgrading and pushing the multilateral trading system toward a reset and a reorientation.

Building on that, the Bali ministerial conference is coming up in Indonesia at the beginning of December. Our group, the Canadian Council of Chief Executives, has joined with other business organizations to support a trade facilitation agreement that would reduce customs and border procedures for all exporters, firms of all sizes. We hope the Canadian government, which has been very active in this area of trade facilitation, can really help us bring that over the line at Bali, so we can perhaps have at least one substantive outcome at the WTO over 2013-14.

Third, I would say it would be interesting to explore the Pacific Alliance. This is a group with whom we already have an extensive network of free trade agreements. Whatever hurdles are in place between Canada and joining the Pacific Alliance, I'd suggest, would be a fruitful line of inquiry.

Thank you.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you.

Do you see the trade facilitation agreement as being able to expedite trade agreements, or expedite talks for trade agreements, or move nations toward talks? How do you see it facilitating or expediting the process?

[Ailish Campbell]

One, it reduces costs; two, it builds trust; and three, it creates new opportunities. These are all good things for Canada.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

That's great. Thank you.

Are there any other comments from Glen or Peter in relation to trade generally and what this government is doing that we could do better?

[Peter Effer]

I don't have comments on trade.

[Glen Hodgson]

Maybe I'll make one comment, simply to reinforce Ailish's point about Asia-Pacific.

That's where the action is right now. I hope that as the TPP negotiations advance, we're prepared to go all the way, treat it as a serious negotiation, the chance to really get involved in the most interesting trading region in the world. If we have sacred cows and other barriers, we're prepared to put our thinking caps on and be really innovative about how we're going to be full players in that deal. I would hate to see the TPP become anything less than a big deal. I talk a lot with the New Zealand high commissioner and with Australia. They're committed to a true free trade area, and I hope Canada can be there at the table with them.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you.

[The Chair, Conservative, James Rajotte]

You have about one minute and a bit.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I'd like to ask you a question in relation to infrastructure. You mentioned that infrastructure is one of the greatest things we could do right now. A $123 billion deficit was identified in 2006. We leveraged about $45 billion of federal money in Canada's economic action plan, and then tried to triple it with the municipalities and provinces.

Did you find that effective, first of all? As well, is there anything else we could do more aggressively than what we have done in the P3 office? We assigned $2.1 billion in 2006 to the P3 office to set it up and get it going. Do you see anything we could have done better in relation to the P3 office, and generally in infrastructure, rolling it out as we did and keeping up with our payments?

[The Chair, Conservative, James Rajotte]

Give us just a brief response to that, please, Mr. Hodgson.

[Glen Hodgson]

I see the federal engagement in infrastructure as a kind of building block approach. So for P3s you get a big positive check mark.

I think it is a down payment, because the initial money is starting in FY 2015. But the federal government fundamentally has more fiscal capacity than anybody else, so I would hope that we keep trying to build partnerships with the provinces and cities to fill in the entire gap in infrastructure financing.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

With the FCM and groups like that, which we have done quite well....

[Glen Hodgson]

Absolutely, and provincial governments are finding out what their capacity is and how you can actually work with them to move the ball forward.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Great. Thank you very much.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Jean.

Mr. Effer, I stopped you, and I think you had one more point in answer to Mr. Van Kesteren. Could you state that now for us?

[Peter Effer]

The last point I was going to make was with respect to pensions related to the Canada Pension Plan and retirement funding.

Financial Executives has discussed the concept of expanding the Canada Pension Plan program to allow employees to elect to contribute more to their Canada Pension Plan. Such a program would give access to individuals across the country to expert investment advice at a low cost. It also is a program that's portable from one job to another and it is something one can invest in, in the long term.

We don't support forcing a larger corporate contribution, simply from the standpoint that it represents an additional corporate tax.

[The Chair, Conservative, James Rajotte]

Okay, thank you.

I want to thank all of our guests from our first panel for your presentations and your responses to our questions.

Thank you very much everyone.

Colleagues, we will change panels, but I am not going to suspend, because I'm hoping we can deal with the motion from Mr. Saxton and the proposed budget.

So I will thank all of our witnesses from the first panel and then we'll ask the second panel to come forward while we're debating the motion.

Are there any problems with the request for the proposed budget, colleagues? Can I have someone to move this?

It's moved by Mr. Van Kesteren.

(Motion agreed to [See Minutes of Proceedings])

Thank you.

Secondly, you all have in front of you the notice of motion by Mr. Saxton. It obviously has the proper notice.

Mr. Saxton, do you want to speak briefly to your motion?

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you, Chair.

As I said yesterday, we are trying to have three other committees look at the budget implementation act. Those three committees are justice and human rights; human resources, skills and social development; and citizenship and immigration.

We feel there are specific divisions and clauses within the budget implementation act that would be appropriately studied by these three other committees. It would also give us, on the finance committee, more time to study other divisions and clauses.

That's why this motion has been put forward. It is similar to other motions that have been put forward while studying other budget implementation acts, including BIA 1.

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Saxton.

Ms. Nash.