Finance Committee on Nov. 21st, 2013

[Norma Kozhaya]

We didn't really review the proposal. It is our position that those funds contribute to Quebec's economy, as we have already said.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you.

[The Chair, Conservative, James Rajotte]

Ms. Labrecque, what about you?

[Julie Labrecque]

We, too, are still considering the proposal. We're examining it very closely. We believe these investments, whether in private funds in Canada or elsewhere, benefit the economy. Tax credits for the funds should be maintained.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Caron.

We'll go to Mr. Saxton, please.

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you, Chair.

I thank our witnesses for being here today.

My first question is for Madame Labrecque,

from Regroupement des jeunes chambres de commerce du Québec.

Madame Labrecque, in your submission, you argue that the government should wipe out the budget deficit quickly and work on implementing a debt repayment plan. You sound like a natural Conservative. I appreciate that.

As you may know, our government did in fact repay $38 billion of the national debt in our first two years in government. We now have the lowest net debt to GDP in the G-7, by far.

Since the time of your submission, the government has announced steps forward on both of these issues. Our government set an ambitious debt-to-GDP target of 25% by 2021. Also, I would like you to know that in the economic and fiscal update, we're on track to balance the budget in 2015.

I'm interested in knowing how important this is for young people in Quebec and across Canada.

[Julie Labrecque]

Thank you for highlighting that aspect of our recommendations. Our recommendation addresses the short term as well as the medium term. Basically, we want to make sure that the tax and debt burdens aren't always passed on to the next generations.

We are simply trying to ensure that future generations will have access to the same pension funds and services their predecessors did. It's a good thing that the government is already setting targets and taking steps to bring down the debt, because, when all is said and done, we don't want it being passed on to the next generations. Tangible measures need to be taken in order to reduce the debt and balance the budget across every government department.

The debt should not always be passed on to the next generations. That is our objective.

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you kindly.

My next question is for Ms. Kozhaya, of the Quebec Employers Council.

In your opening remarks, you mentioned how raising the CPP at this time would be difficult for employers. Obviously, we all want to have a strong retirement plan for Canadians; however, unlike the official opposition, we don't think this is the right time to put an extra burden on employers and employees by imposing an increased premium on the CPP.

Can you please explain how it is important that we should not be doing this at this time?

[Norma Kozhaya]

Thank you for the question.

Indeed, we see them as levies on the economy. In the short term, an impact will certainly be felt. It's already clear that the economic recovery is very slow, not just in Canada, but also everywhere else, including the United States, Europe and emerging countries, which we may have relied on a bit more in the past.

Those levies will add up and deter job creation. In the long term, however, benefits could flow.

There is also a focus on encouraging savings, but is this the only way to do that? Efforts have been made in the past, including the federal government's pooled registered pension plan and Quebec's voluntary retirement savings plan. Time will tell whether those plans prove successful.

As I also said in my opening remarks, the need for retirement savings isn't generalized. A number of studies have shown that. This certainly won't help low-income earners meet their retirement needs. I don't think it is meant to help the rich either. If you examine the measures designed to help the households who may need them, you're looking at about 30% of households, not 100%. We don't need a universal solution because the need isn't universal.

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you very much.

My next question is for Martin Lavoie of Canadian Manufacturers & Exporters. It's a very quick question.

CME president and CEO Jayson Myers recently called the signing of the comprehensive economic trade agreement with the European Union “the Wayne Gretzky of trade deals”. Could you explain to us what you think about this new trade deal?

[Martin Lavoie]

Yes, we thought it wasn't good enough to call it the Maurice Richard of trade deals.

[Voices]

Oh, oh!

[Andrew Saxton, Conservative, North Vancouver, BC]

They both work.

[Martin Lavoie]

It's quite supported across the board. Across CME we applaud this deal from all sectors. That's all I can say quickly.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Saxton.

Monsieur Côté, s'il vous plaît.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Thank you, Mr. Chair.

What Mr. Saxton failed to mention about the deficit is that it was artificially created. We have to take a very long and pointless detour before we achieve some semblance of a balanced budget again.

I'm going to stay on the topic of the deficit.

Mr. Atkinson, the Federation of Canadian Municipalities said there was still a major shortfall in terms of infrastructure across the country. We're talking nearly $150 billion. The federal government has responsibilities and some jurisdiction in the area of infrastructure. The Parliamentary Budget Officer determined that, as far as federal funding allocated to investment programs was concerned, some $4 billion had not been spent. So the much talked about program valued at $170 billion over 10 years is partly funded by recycled money.

The federal government has not taken the necessary steps to improve infrastructure or help municipalities. Would you care to comment on that?

[Michael Atkinson, President, Canadian Construction Association]

Like the FCM, our position would be that governments plural are not doing what we need to do to ensure our critical public infrastructure supports Canada's economic growth, prosperity, etc., because custodianship of critical public infrastructure in Canada is primarily at the municipal level now. Municipalities are the front-line gatekeepers, if you will; provincial governments have an extremely important role, and the federal government has a role.

From our perspective the 10-year program was a step in the right direction, as was the seven-year building Canada plan, because for the first time in Canada we had a multi-year plan that provided some permanency, some reliability. That's so important in planning, both for municipal and provincial governments, but also for our industry that has to build this. We have taken positive steps, and when I say “we” I say all levels of government have taken positive steps to address our infrastructure deficits. There's more to do. There's more work we have to do, and we have to find a way because there is no option. It's not either/or; we must address our critical public infrastructure needs, no question.

When it comes to the dollars, what's spent, etc., what's the right number, what's the appropriate share, if you will, of responsibility among governments, the one thing I can say is that it's a co-shared responsibility. All levels of government have a role to play in dealing with this issue.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Ms. Kozhaya, in the third recommendation of the brief you submitted by email, you say that the Canada Job Grant is a bad idea, given the agreement concluded in 1998 between the provinces and the federal government. You stressed the fact that the implementation of that grant would require the federal government to create new administrative structures in order to manage the new program. Would you like to comment on that extra red tape and the addition of specific measures?

[Norma Kozhaya]

As I said, we hailed the intention to have a better matching of training to employers' needs. As it has been mentioned, the Commission des partenaires du marché du travail du Québec has done some good work. Of course, the situation is not perfect and neither are our results. There is room for improvement. However, certain structures could probably be used more effectively, even as targets and objectives are being reviewed. The federal government has shown some openness and flexibility. We want Quebec to remain in charge of the implementation, even if that means reviewing targets and objectives based on the results that best meet companies' needs.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Ms. Kozhaya, you talked about issues related to the new procedure in health care transfers. Your organization is actually pretty critical of that unilateral process.

Could you give us more details on a potential new transfer agreement and on the needs that are not being met in the provinces?

[Norma Kozhaya]

We were basically saying that we must make sure that the needs do not grow at the same pace as the economy. We also think that, over the longer term, the Canada Health Act should be reviewed, so as to give the provinces more flexibility if they deem that some of the needs need to be met differently.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Côté.

We'll go to Mr. Keddy now, please.

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

Thank you, Mr. Chairman.

Welcome to our witnesses. I have several questions.

I can't help but state at the beginning, with respect to Mr. Côté's comment on balancing the budget, that quite frankly, if your party would have had your way, our deficit would be a lot higher than it is today. Maybe I'd just set the record straight there.

I have a question for Mr. Columbus. Jayson, I'm puzzled because you're telling me there's no manufacturer of Canadian apple juice concentrate.

[Jayson Columbus]

There's no reliable source of Canadian apple juice concentrate. You may or may not be familiar with Muwin Estate Wines. It's from my home community of New Ross. They make Bulwark apple cider, which is a world award-winning cider. It's made by the Quebec and British method. It's really a lovely cider.

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

I have a barn full of green barrels for spray from when I was in the Christmas tree industry that have written on them “Canadian apple concentrate”.