Thank you, Mr. Chairman, for the invitation to present to the committee.
Good morning, honourable members. My name is Ian Moore. I'm a past chairman of the Recreation Vehicle Dealers Association of Canada, RVDA. It's my pleasure to be here today to discuss our recommendations to support the federal government in its efforts to increase productivity and competitiveness in the Canadian economy.
Here's a little background on our association for those of you who are unfamiliar with the RVDA. We are a national volunteer federation of provincial and regional associations that have united to form a professional trade association for all the businesses involved in the recreation vehicle industry. The RVDA of Canada has 640 members from coast to coast and has been representing our industry's needs for over 30 years.
RVing is an iconic form of Canadian tourism. In 2016, one in five campers in North America reported an RV as their primary use of accommodation for camping. The popularity of RV camping for new campers has grown from 18% to 26% over the past year. Not only is RVing an important component of Canadian tourism, but RVing also has a considerable impact on the economy. The manufacturing, purchasing, servicing, and use of RVs contributes billions, both directly and indirectly, to the Canadian economy each year. In 2011 the total economic activity associated with the industry was $14.5 billion. RV dealers are small business owners who help the Canadian tourism industry and foster economic growth, particularly in rural and northern communities. In every region of the country, tourism creates jobs and opportunities for Canada's middle class.
I'm here today to ask that the federal government consider three of our recommendations that would not only help the tourism industry but would also help the federal government in increasing business productivity and helping small business owners who are the backbone of our economy.
First, to increase productivity, Canadians need to access the labour market, skills development, and training opportunities. We recommend increased support for skilled workers in the RV industry. There are currently only two programs in Canada that offer RV service technician apprenticeship training, in Kelowna, British Columbia, and Calgary, Alberta. Both programs provide Red Seal designation that is accepted nationwide. The existing programs reach full enrolment each year and often hold waiting lists for an additional several dozen prospective students.
Due to the geographic constraints of these existing programs, we recommend that the Government of Canada create an apprenticeship travel grant that could be used by those who are required to travel in order to undertake an apprenticeship training program. This grant should be targeted toward those enrolled in programs that are not offered in their city, town, or province. This grant should be a taxable cash grant of $2,000 to $4,000 per person per year in order to provide support for such items as travel costs, lodging, and care arrangements for families.
Second, the Government of Canada should provide targeted and dedicated investment in the camping and RV infrastructure in Canadian national parks. Investing in camping and RV infrastructure would play a critical role in overall contributions of the tourism industry to future economic development and prosperity. There are more than 4,231 campgrounds operated across Canada, each offering a unique experience for Canadians and international visitors. As campground services continue to rise in demand, critical infrastructure needs, such as sizing requirements to accommodate large RVs and access to appropriate electrical outlets and waste disposal facilities, remain unfunded.
Upgrades in infrastructure are essential if we want to be able to ensure the future of this industry and make it more accessible to all Canadians. We recommend that the federal government provide targeted and dedicated investment in camping and RV infrastructure in Canada's national parks. Investing in the infrastructure will play a critical role in the overall contributions of the tourism industry to future economic development and prosperity.
Finally, with the review of Canada's tax planning using private corporations, we would like to make our voice heard in this process. As it stands, the RVDA takes issue with the current proposal as outlined. RV dealers are family-run, small business owners who are able to make a living by working many more hours than the average salaried employee. If these proposed changes go through, these family-run businesses will no longer have the capacity to ensure the longevity of their operations, let alone build up their communities.
As small business owners, our RV dealers must be able to save a portion of their annual profits and keep them inside their corporations to plan for future capital expenditures and set aside funds to account for seasonal fluctuations and the leaner years. In the RV industry, there is significant revenue fluctuation between seasons that can leave businesses suffering for many months of the year.
RV dealers also need to plan for their own retirement, which they fully fund out of pocket without the same assistance a salaried employee at a larger company might have access to. When this money is eventually withdrawn, it will be subject to very high personal tax rates. However, applying the same high personal rates, well in excess of 50%, to returns on personal savings while still in the corporation will have a severely negative impact on small business owners and their ability to save and invest for the future of their businesses.
We hope that our arguments are heard, and I am very thankful for your time and attention today. I would be happy to take any questions you might have.
Thank you.