Finance Committee on Oct. 4th, 2018

[The Chair, Liberal, Wayne Easter]

So we cover from coast to coast. We just don't make the third coast yet.

All right, thank you, all.

We'll start with the Banff World Media Festival and Jenn Kuzmyk.

Go ahead, Jenn.

[Jenn Kuzmyk, Executive Director, Banff World Media Festival]

Good afternoon, Mr. Chair. I am pleased to be here on behalf of the Banff World Media Festival. We are enthusiastic about the government's creative and export-focused goals, and we appreciate the opportunity to take part in these consultations for the 2019 federal budget.

Today, I'm going to share the broad strokes of our recommendations. The specifics are contained in our pre-budget submission, which has been provided to committee members.

The conclusion this week of the United States-Mexico-Canada agreement has placed the importance of trade and export at the centre of our national conversations. Secure, predictable access to international markets is vital to Canadian prosperity. Canada needs modern, secure trade frameworks such as the USMCA to ensure that exporters from all sectors can bring their products to global markets.

Canada needs to be sure that, as a nation, we are marshalling all of our strengths in smart ways to maximize the chances for Canadian success in the world. Put simply, the business opportunities are expanding everywhere. Canadian content producers and screen media businesses need to be able to do business anywhere, both at home and abroad.

That is what Banff is about. Canada's broadcasting media and cultural industries contribute $48 billion annually to the economy. They are a high-energy pipeline for innovation, middle-class jobs, exports and economic stimulus. The government has recognized this importance with the commitment to overhaul Canada's digital content regime. Moreover, it has rolled out a bold, innovative creative export strategy to give Canadian artists and creators support that is commensurate with the acknowledged high quality of their output, as well as rapidly expanding global opportunities to do business.

Banff is in a unique position to assist the federal government in the pursuit of these economic goals. Over 39 years, Banff, a not-for-profit entity, has grown into Canada's largest media B2B marketplace, connecting our domestic industry to global partners.

In addition to our annual flagship festival each June, Banff has become a year-round endeavour, with three additional events in Toronto, Los Angeles and the United Kingdom, with an online global networking platform called BanffXchange, and with an international program competition, in which more than 40 countries participate every year.

Banff has a proven record of success at bringing far-flung production partners together and getting new projects greenlighted, both at home and abroad. As we like to say, Banff brings the world to Canada. To expand on the government's recent creative export strategy announcement, it's not only abroad “where the business relationships are being built, the deals are being made, and the jobs are being created” for the creative sector.

Export success is also being generated at scale right here in Canada, through Banff. Banff delegates annually advance or sell $1.7 billion worth of deals in an environment of business-to-business interactions in Canadian culture, which results in Canadian culture being exported. This is the modern export model, and it's about doing business everywhere.

Through our diversity of voices initiative, we're providing indigenous, francophone and women professionals with the opportunity to gain essential industry access and training. In our first year, 88 emerging and established creators and producers took part in the wider program, and a select 25 took part in an intensified pitch program, where they also received individual mentorship from media leaders and private pitch and facilitated meetings with international buyers at the festival.

The benefits of this initiative are threefold: It provides essential training and access for under-represented groups; it supports the creation of new cultural media projects that represent diverse viewpoints; it has a meaningful economic impact as the impetus for new projects to be financed, produced and exported internationally.

To launch the program in 2018, we received valuable support from the Canada Media Fund, the Indigenous Screen Office, the Société de développement des entreprises culturelles, and Netflix. We believe the diversity of voices initiative has successfully proven that we can provide strong, immediate impact that gives practical, hands-on experience and business opportunities of unmatched value to participants.

It amplifies the federal government's aims to support artistic and cultural activity by francophone, indigenous, and women creators and producers. It also gives them important support in acquiring the connections they need to break into the export market, a goal that meshes with federal policies.

Banff is about redefining the concept of export competitiveness to include not only outreach abroad, but also the power to convene the global B2B marketplace right here in Canada. We are committed to working with the federal government to move Canada's creative output to a new, higher level.

However, predictability is vital to growth. Stable and adequate funding is needed to achieve these important objectives. To that end, Banff would like to make the following recommendations:

Recommendation one is to provide stable and adequate funding to support Canada's export-focused creators and cultural entrepreneurs.

Recommendation two is to ensure that the creative export strategy captures the powerful synergies of the B2B marketplace, both at home and abroad.

Recommendation three is to expand the government's partnership with Banff, with an investment of $1 million per year for three years for our diversity of voices initiative.

Thank you for the opportunity to take part in this pre-budget consultation. I now invite questions from the committee.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Jenn.

Turning to Blue Green Canada, we have Mr. Kirkpatrick and Mr. Rowlinson.

[Mark Rowlinson, President, Blue Green Canada]

Good afternoon. My name is Mark Rowlinson. I'm the president of the board of Blue Green Canada.

Thank you for having this consultation. I apologize that we don't have any written materials for the committee, but we will try to get you some in short order.

Blue Green Canada unites Canada's largest private sector labour unions and its most influential environmental and civil society organizations to identify ways in which today's environmental challenges can create and maintain quality jobs to build a stronger, fairer economy. Our guiding principle is that Canadians should not have to choose between addressing climate change and a strong economy. Unfortunately, an increasing part of our national conversation.... We see that this issue has become increasingly divisive at many levels of government and in parts of Canada.

The focus of my short remarks today will be on two areas where I think the federal government should look seriously at addressing this issue through the budget: first, the need for Canada to commit to and ensure a just transition for workers and communities impacted by climate action, beginning with those impacted by the phase-out of coal-fired power generation; and second, the Government of Canada should commit to considering the environment when making purchasing and infrastructure funding decisions and choose to buy clean and buy Canadian.

On the issue of just transition, in our view, the Government of Canada cannot afford to ignore the wide-ranging impacts of its action on climate change on the economy and the working people. For the economy and the environment to truly go hand in hand, government must acknowledge workers' concerns and anxieties that reducing GHG emissions will negatively affect the livelihoods of some Canadians and hurt some economies.

We cannot replace stable, good-paying jobs with precarious, low-wage work and leave workers and communities behind if we are to successfully transition to a low-carbon economy. For those most affected, taking action on climate change is simply not worth it if it means risking the well-being of their families and communities. Therefore, it is of the utmost importance that the Government of Canada, working closely with the provinces, communities, employers, unions and workers, put in place measures that would help workers and communities successfully navigate through the transition to a low-carbon economy. The government must provide supports—a bridge—to what is next as we transition in this economy.

Budget 2018 provided $35 million over five years in funding to support skills development and economic diversification activities to help workers in the west and Atlantic Canada transition to a low-carbon economy, but we're here to say that much more is going to be needed over the coming years. We're going to need to build capacities in communities for economic development. We're going to need to fund community-led projects and transition plans. We're going to need to establish a package of supports for workers, as well as local transition centres. Before we even do any of those things, we need to establish an inventory of all the workers who are going to be affected by the transition to a low-carbon economy.

What is done in Canada to support a just transition to a low-carbon economy will have far-reaching consequences beyond the workers, families and communities directly affected. Other countries are going to be looking at Canada as an example of how to put people at the centre of progressive climate policy. Frankly, if we don't start to address the issues that are of concern to the tens of thousands of workers in this country whose lives are directly connected to fossil fuels and high-carbon industries, this issue is simply going to become more and more divisive in our national conversation.

The second area that I want to highlight quickly for the committee is the need to consider the environment when making purchases on infrastructure spending. Through procurement and infrastructure spending, Canada has an opportunity to leverage its strength in clean technology, particularly in the transportation sector. The government can meet its goals of reducing emissions while maintaining and strengthening Canada's economic competitiveness.

To ensure that the government receives true value for money over the long term, including avoiding the burgeoning costs of climate change on infrastructure, Canada should incorporate life-cycle assessment into procurement policies and infrastructure spending programs. This would enable a full cost-benefit analysis across the life of a product or an asset, and provide a measure of the impacts directly attributable to the functioning of the product, asset or system throughout its life.

Those are just the two highlight points that we wanted to emphasize in our brief remarks to the committee. We look forward to any questions or discussions you may have.

As I said, we'll be following up with a further written submission as part of this consultation process.

Thank you very much for your time.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Mark.

Turning to the Canadian Institute for Military and Veteran Health Research, we have Mr. Pedlar, Scientific Director; and Ms. Bélanger, Associate Scientific Director.

[Dr. David Pedlar, Scientific Director, Canadian Institute for Military and Veteran Health Research]

Thank you very much, Mr. Chair and members of the committee, for the opportunity to talk to you today about the extraordinary work of the Canadian Institute for Military and Veteran Health Research.

Prior to joining CIMVHR, I worked as a clinician, and then served as the national director of research at Veterans Affairs Canada. I've been a two-time Fulbright scholar, and I have proudly dedicated my entire career to advancing the well-being of Canada's veterans.

Since 2012, the Canadian Institute for Military and Veteran Health Research, also know as CIMVHR, has filled the void in Canada's military, veteran, and family health research by creating an innovative, independent, arm's-length academic research institute. We've built a thriving national academic research capacity that bridges across the academy, government, industry and philanthropy. Furthermore, CIMVHR has a long list of accomplishments and impacts.

A key to our success is a close and collaborative relationship with the Department of National Defence, the Canadian Armed Forces, and Veterans Affairs Canada. Since 2014, we have received core funding from Health Canada to develop new knowledge translation strategies and products. However, this non-renewable Health Canada contribution is set to end in one year.

Since its inception at Queen's University and the Royal Military College, our organization has grown in leaps and bounds. Our network now includes 43 universities across Canada, up to 1,700 researchers, seven fellows, 10 global affiliates, six government advisers, three philanthropic supporters and four industry partners.

We exist because we serve a population with its own particular health risks, experience and needs. Research has demonstrated that Canadian Armed Forces veterans experience two to five times the prevalence of chronic mental and physical health conditions, including PTSD and chronic pain. Furthermore, suicide among veterans is higher when compared to the general population. Keep in mind that veterans are also changing. Today's veterans can be young, in their twenties. Younger male veterans are much more likely to report a difficult transition to civilian life, and they are at almost 2.5 times greater risk of suicide.

Moving forward, we also see increased numbers in equity-seeking groups, both in the military personnel and in veterans, particularly women and indigenous peoples.

There were 43,000 military personnel who served in a decade-long operation in Afghanistan. One in five of those who served in Afghanistan and other missions will suffer from mental health issues. CIMVHR's aim is to improve these statistics. We will work collaboratively to create the best evidence-based practices.

Thanks to the work of CIMVHR researchers, we know that the care of military personnel will require a commitment across the entire life course. In fact, veterans come forward 50 years or more after military service to seek care for health conditions attributable to military service.

We also know that transition from military service to civilian life is a challenge for most, but it is a high risk for others. Military and veterans' families are also an integral component to their overall well-being. This highly skilled and resilient population has its own unique challenges, including lack of access to critical services and chronic spousal underemployment. CIMVHR must continue to advance work to support this unique population.

Our military personnel make a unique commitment to Canada. They agree to what we refer to as “an unlimited liability”. That means they're ready to sacrifice their lives for Canada. As a country, we must stand beside them. We must deliver programs and policies based on the best evidence possible, and that means bringing the best and brightest researchers to the table to help address these challenges. Our military members and their families have earned this.

Through Canada's defence policy, the government has committed to a total health and wellness strategy, which takes a people-centred approach. CIMVHR will ensure that Canada's best researchers will support this transformative defence policy.

We are also in partnership with industry as a leader in identifying the ITB, the industrial and technological benefits program, as a promising opportunity to advance military and veteran health research. We are doing work in that area, on projects using that program.

However, we recommend that the government consider strengthening the alignment between the new defence policy, which is people-centred, and the industrial credits program, which tends to be more hardware-centred in terms of the programs that it operates. We're seeking a stronger alignment across the new defence policy and the industrial and technological benefits program.

In closing, military personnel face a full spectrum of military operations, from humanitarian assistance and disaster relief to peacekeeping and combat. It is imperative that Canada maintain a permanent arm's-length research capacity to safeguard the well-being of this unique population.

With the government's support, CIMVHR researchers will continue to have an impact on Canada's socio-economic landscape while improving the health and well-being of Canadian military members.

Thank you very much for this opportunity to be here today. I look forward to answering questions.

There were two asks here: to replace the Health Canada contribution arrangement, which is non-renewable, with a $25-million contribution over 10 years, and to focus on a realignment of the industrial and technological benefits program with the new defence policy.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you, David.

We'll now hear from the Canadian Life and Health Insurance Association.

Mr. Mizzen, go ahead.

[Brent Mizzen, Assistant Vice-President, Underwriting and Policy, Canadian Life and Health Insurance Association]

Thank you, Mr. Chair and members of the committee. I'm Brent Mizzen, assistant vice-president of underwriting and policy at the Canadian Life and Health Insurance Association, or CLHIA. Thank you for the opportunity to come here today and speak with you as you work toward concluding your work on the upcoming federal budget.

CLHIA is a voluntary association with members accounting for 99% of the life and health insurance business in Canada. The life and health insurance industry is a significant player in terms of its economic and social contribution in Canada. It protects almost 29 million Canadians and makes more $92 billion a year in benefit payments to residents in Canada. Of that, 90% goes to living policyholders in the form of annuity, disability, supplementary health or other benefits. The remaining 10% goes to beneficiaries as death claims. In addition, the industry has $860 billion invested in Canada's economy. In total, 101 life and health insurance providers are licensed to operate in Canada.

In our submission, which committee members will have, we touch on a number of issues. Today in my remarks, I will stick to two of those issues in particular. The first one is pharmacare and supporting a healthy workforce. The second one is enhancing retirement income security.

Let me begin with pharmacare. Canada's life and health insurers believe that all Canadians should be able to access affordable prescription drugs. Today, life and health insurers provide 25 million Canadians with access to a wide variety of prescription drugs and other health supports—vision care, dental, and mental health support among others. That's done through extended health care plans. These benefits are highly valued by Canadians and by employers, and the market is working well.

We are supportive of the work being done through the federal government's advisory council on the implementation of pharmacare. The work of the advisory council is important to improve the current system so that it works better for all Canadians. As a key player in the system, the industry also recognizes that there are real problems and that the time has come to take meaningful steps to make improvements for the benefit of Canadians. We had the opportunity to meet with the advisory council last week. Our views were submitted to the advisory council on how reform can be undertaken to improve access to and affordability of prescription drugs in Canada. I would also note that our submission is publicly available on our website, should you wish to view it in greater detail.

I'll highlight the key elements of our submission to the advisory council. The industry believes there must be three key elements that any reform of the prescription drug system must embody.

First, protecting health and enhancing existing benefit plans to provide more coverage and choice for Canadians, compared with public coverage, is important. We know that over 90% of Canadians support helping those who need it but don't want their private plans negatively impacted.

The second is providing drug coverage for everyone so that all Canadians can access and afford the prescriptions they need. To achieve this, we believe government should establish a list of the medicines that everyone will be covered for. Whether they have a workplace plan or are covered by a government program, the list of drugs would be based on scientific evidence and include expensive drugs and drugs for rare disorders.

Third, ensuring affordability for consumers and taxpayers is critical. Any reform should spend scarce government resources carefully and avoid creating any large tax impacts for Canadians. This is all the more important given the challenging tax competitiveness environment faced in Canada today. Building off the current mix, a private-public pharmacare model would minimize the overall fiscal impact to government and address the issues, which is what I believe we are all trying to achieve. Regardless of the approach, it is important that governments work collaboratively with private insurers to meet the objectives of ensuring that everyone has access to needed medications and to address the relatively high costs faced by Canadians.

With respect to drug prices, I'd like to make two key points. First, we are fully supportive of the changes the federal government has proposed to the Patented Medicine Prices Review Board, or PMPRB. Canada clearly has amongst the highest prices for medicines in the developed world. We believe there is room to bring these down.

The reforms to the PMPRB would reduce list prices in Canada, which would result in immediate savings to the vast majority of employers across Canada.

We also want to work with governments to leverage the full buying power of the Canadian market to negotiate lower drug prices. To do this, we recommend that private insurers be included in the pan-Canadian pharmaceutical alliance, otherwise known as the pCPA, so that we can negotiate even better prices for Canadians, and, importantly, so that all Canadians pay the same price for the new medications.

I now turn to the second issue, enhancing retirement income security. Secure, adequate income for life is becoming less common for Canadian retirees. Old age security and the expanding Canada and Quebec pension plans provide some income security, but there has been a shift from defined benefit plans to defined contribution plans—RRSPs, RRIFs, PRPPs, TFSAs—all of which place greater onus on individuals to make sure they have sustainable retirement income. This is particularly in the context of uncertainty about how long each individual should expect to live.

As a society, Canadians are getting older. In 2016, seniors aged 85 and older made up 2.2% of the population. By 2031, this is expected to reach 4%. Further, by 2051, this will increase to 5.7%. This rapid increase in the number of seniors aged 85 and older and the uncertainty of life expectancy put Canadians at risk of outliving their savings. Seniors' frequent response to this has been to reduce expenditures, which impacts quality of life. New measures are needed, in our view, to help Canadians attain guaranteed retirement income security and preserve their quality of life throughout retirement.

By pooling the risks associated with uncertain life expectancy, longevity insurance can play a valuable role in ensuring that Canadians have long-term retirement income security. More needs to be done to ensure a robust market for these solutions in the Canadian market. For example, we'd highlight a few things, in particular allocating a portion of private savings within registered plans to provide life annuities starting at advanced ages, 85 and over. This would allow Canadians to better manage their assets and provide a guaranteed income for life.

As well, with the recognition that many Canadians intend to use TFSAs to supplement retirement income, the liquidity requirement that prevents the holding of life annuities within TFSAs should be waived, at least for Canadians aged 60 and over. Finally, allowing the periodic purchase of life annuities by registered plans in the years before retirement, and allowing the income from those annuities to be deferred until after retirement, would allow individuals to mitigate investment risk.

At the individual level, longevity insurance removes the worry about outliving one's retirement savings. At the macroeconomic level, it ensures that the growing number of Canadian seniors can continue to support economic growth, stimulating efficient investment and employment.

In closing, I want to thank the committee members for their time today and for the opportunity to be here to share our views. I'd be pleased to answer any questions you may have.

[The Chair, Liberal, Wayne Easter]

Thank you, Brent.

We now turn to Environmental Defence Canada, with Mr. DeRochie.

[Patrick DeRochie, Climate and Energy Program Manager, Environmental Defence Canada]

Thank you, Mr. Chair and MPs on this committee, for the opportunity to provide some ideas and recommendations for budget 2019.

My name is Patrick DeRochie. I am climate and energy program manager for Environmental Defence Canada. We work to defend clean water, a safe climate and healthy communities. My comments today will focus on recommendations from our plastics, toxics, and climate and energy program areas.

Regarding climate change, energy and clean growth, my recommendations will focus on how to best position Canada to capitalize on the massive economic opportunity arising from the global shift to a low-carbon economy.

Last month's report from the Global Commission on the Economy and Climate found that global efforts to accelerate climate action represent a $26-trillion opportunity. Canada can't afford to fall behind in this clean-growth opportunity.

Environmental Defence's recommendations include fulfilling the government's long-standing commitments to stop subsidizing fossil fuels in Canada, starting with the disclosure of all federal direct spending and the value of all annual tax deductions claimed for the exploration and production of oil and gas, and legislating a timeline for the phase-out of these fiscal supports.

In particular, the federal government can save upwards of $9 billion by ending its push to build the Trans Mountain expansion pipeline. The Prime Minister himself acknowledged that the project would be dead without public dollars to prop it up. The government should not be in the business of buying and building a fatally flawed oil sands export pipeline that nobody in the private sector wanted, and that cannot be reconciled with indigenous rights and Canada's international and domestic climate commitments.

The federal government must also play a role in supporting climate action in provinces that are not in compliance with the pan-Canadian framework. We would urge the government to link some of the revenues collected by the federal government pricing backstop to programs that reduce greenhouse gas emissions. Here in Ontario, we will see that revenue amounts to $2 billion next year, in 2019, rising to $5 billion in 2022.

There are a couple of things in particular that we would like to see that money spent on. One is the renewal of a residential home energy rebate program, through NRCan, that issues rebate cheques for home energy efficiency retrofits, including solar panels, home batteries, high-efficiency furnaces, heat pumps, insulation and other measures to reduce energy use.

Second is partnering directly with municipalities that are taking action on climate change, including support for cycling infrastructure, mass public transit, microtransit projects, electrifying municipal bus and truck fleets, district energy systems, and energy retrofits from municipal buildings, schools and social housing.

The federal government must also enhance regulatory certainty and attract investment in large energy and industrial projects by fine-tuning and passing Bill C-69. The legislation has had notable improvements over the 2012 omnibus bill that gutted Canada's environmental laws. Bill C-69 strikes a balance between economic developments and environmental protection that helps restore public trust in the project review process.

Some of the $1 billion announced in last year's budget should begin implementing this legislation, increasing scientific capacity across federal departments and enabling greater indigenous and public participation.

In the area of reducing plastic pollution and developing a circular economy, although Canada has made international investments and commitments to reduce microplastics and marine debris in the Great Lakes and our oceans, it has not matched the efforts of the European Union or other jurisdictions through investment in infrastructure, research, extended producer responsibility programs, or modernized waste management programs and policies that support a movement towards a circular economy. Now is the time for a national waste reduction strategy that harmonizes performance standards, measurement protocols and definitions from coast to coast to coast.

To accelerate the efforts to create a national plastics and waste strategy, Environmental Defence recommends that the government provide new five-year funding of $86 million per year to Environment and Climate Change Canada in collaboration with other federal agencies and levels of government. That includes $1 million per year for policy development, including on extended producer responsibility; $50 million per year in research that supports innovative product design and increases knowledge and understanding of the impacts that plastics have on the environment and human health; and $35 million per year in modernized waste diversion infrastructure to support the developments of a circular economy.

In the area of toxic pollution, Environmental Defence recommends that budget 2019 tackles exposure of Canadians to toxic chemicals and harmful pesticides and the presence of these toxics in the environment. Providing sufficient resources to regulatory departments to meet the current legislative requirements under the Canadian Environmental Protection Act and the Pest Control Products Act for managing toxic chemicals and addressing the risks of pesticides is necessary to ensuring the protection of Canadians' health, our communities and the environment.

We recommend that the upcoming budget renew funding for Canada's chemical management plan to ensure ongoing chemical assessments, research, monitoring and actions to protect people from toxics, and to provide funding to Environment and Climate Change Canada and Health Canada to implement needed legislative changes to modernize the Canadian Environmental Protection Act, the country's two-decades old toxics law. Specifically nearly half of the regulations under the law have received little to no enforcement activity, underscoring the need to increase the resources of relevant departments to better enforce pollution prevention regulation. Finally, we recommend providing funding for Health Canada to fulfill its obligations under the country's pesticide law to assess risks and enhance compliance enforcement. Funding is also needed to upgrade monitoring by reviving and expanding a national pesticide monitoring framework.

Finally, as Canada's leading environmental action organization, Environmental Defence Canada recommends changes in budget 2019 to free charities to fully participate in an equal playing field in public policy development in Canada. Specifically, that means amending the Income Tax Act, as promised, to remove prohibitions on public policy involvement by charities, clarifying and renewing CRA direction on partisan political activity to ensure that clear definitions of direct and indirect partisan activity are developed and applied, and undertaking consultations with the charitable sector to address overall sector modernization and development of a modern, enabling and encouraging legal framework for the charities sector.

I'd be happy to take your questions. I really appreciate your having me before you to speak today. I would note that I am a subject matter expert on our climate, energy and clean growth priorities, but less so on our plastics and toxics priorities. I'll do my best to answer those questions, but I'll pass them along to my colleagues in Toronto if I'm unable to myself.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you, Patrick.

We turn now to Goldcorp Inc., and John Mullally, Vice-President of Corporate Affairs and Energy.

Welcome, John.

[John Mullally, Vice-President, Corporate Affairs and Energy, Goldcorp Inc.]

Thanks very much, Mr. Chair. Thank you to the committee for a chance to share a few words about Goldcorp's perspective, specifically on Canadian competitiveness.

For those of you who don't know, Goldcorp is headquartered in Vancouver. We employ close to 15,000 people globally, including 4,000 in Canada. We have a total of eight mines and operations in Ontario, Quebec and the Yukon, as well as operating in Argentina and Mexico.

In Canada, over the next four years we plan to invest over $2 billion in projects in the Yukon, Ontario and Quebec. We believe our business creates social and economic benefits for stakeholders at every phase of the life cycle of mining. Our domestic and international operations have been recognized for sustainable mining practices, a collaborative approach with indigenous communities and a commitment to strong corporate citizenship in the small, usually remote communities in which we are located.

In Canada, we have collaboration agreements with 26 first nations. We're very proud of that fact. We're also committed to playing a leading role in the deployment of low-carbon, clean technologies, both in mining and more generally. We recently launched our third #DisruptMining competition, designed to accelerate the pace of innovation and bring disruptive technologies to the mining industry. Entrepreneurs win a grand prize of a $1-million investment from Goldcorp.

As an example of our leadership, Goldcorp's Borden Gold project will be the first all-electric underground mine in the world. We'll replace all of our diesel mobile equipment with battery electric vehicles. This ambitious project will significantly improve the health and safety performance of the mine, reducing the environmental footprint through dramatic GHG reductions. The benefits of the all-electric site will be an example of leadership and innovation, clean technologies and health and safety in mining, for Ontario and for Canada in general.

We see three key areas to the future of mining in Canada.

The first is the need for regulatory certainty. In order to facilitate this we would propose the creation of a centre of excellence for regulatory success, which would have a mandate to oversee an agile, outcomes-driven and stringent regulatory system that aims to reduce project approval timelines, reduce duplication and improve overall efficiency.

We would also suggest that the system recognize individual situations and adapt the regulations accordingly. For example, developments with existing agreements with first nations in places where there might be disturbed lands already would be treated differently from a greenfield development.

As one of the largest employers of indigenous people, ensuring that communities are set up for success is critical to the potential of mining in Canada. The scale-up of indigenous businesses should be facilitated through increased federal indigenous business procurement, with incentives and programs to support integration into mainstream supply chains. The best practice of resource sector relationships with indigenous business could be further leveraged.

Increased support should also be available through direct contracts with third parties certified with indigenous firms. The fiscal tools available to support equity partnerships with indigenous businesses could also be leveraged. The indigenous talent pool must also be supported to participate in natural resource development.

Effective and responsive skills and training should be supported that meet the needs of both indigenous workers and those looking to hire. We believe that federal support needs to be applied to K-to-12 education in indigenous communities, and that this should be at par with the standards across all schools in Canada.

Universal broadband access across Canada is important to facilitating remote learning and upskilling opportunities in indigenous communities. Robust skills and training programs that promote apprenticeships and on-the-job learning will improve policy outcomes and create sustainable jobs.

A focus on clean technology and innovation will ensure a sustainable mining future in Canada, but industry has sometimes been unsuccessful in generating momentum on its own. Goldcorp supports the concept of a government-backed, single-point-of-contact, well-funded organization to ensure collaboration and to advance innovation and clean technology. Such a centre would allow industry to partner with innovators, universities and polytechnics to enable adoption of advanced technologies into the mainstream supply chain.

The key is that innovations to reduce water consumption, GHG emissions and waste be deployed broadly across industry so that we maintain the social licence to operate, continue to invest in Canada and create value for all Canadians.

The federal government should also ensure major financial incentives to facilitate accelerated scales and adoption of innovative technologies, such as 100% first-year capital cost allowance for new investments in innovation; tax incentives for first adoptions and companies investing in innovative start-ups; matching government grants to innovation that could have secured support for resource companies; and modernized SR and ED to enable scale-up and deployment with a focus on results.

Those are generally my recommendations. I appreciate the opportunity to share my thoughts today. Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you very much, John.

We go, then, to the Stem Cell Network and Cate Murray, Executive Director.

Go ahead, Cate.

[Cate Murray, Executive Director and Chief Operating Officer, Stem Cell Network]

Good afternoon. Thank you for inviting me to speak today. I'm Cate Murray. I'm the executive director and COO for the Stem Cell Network. The Stem Cell Network, or SCN, is the national research network of regenerative medicine researchers, and the primary funder of stem cell research in Canada. As you may know, regenerative medicine uses stem cell-based therapies and technologies to regrow, repair or replace damaged or diseased cells, organs or tissues. It holds significant potential for treating chronic disease and illness. I'd like to begin by sharing with you two stories.

A 21-year-old aspiring police officer, Jennifer Molson, was identified and diagnosed with aggressive multiple sclerosis about 15 years ago. Within five years she was unable to manage simple tasks, including cutting food and showering. The prognosis was progressive decline and early death. Her neurologist enrolled Jennifer in a clinical trial that took stem cells from her. They were purified and fortified. After extreme chemotherapy to knock out her immune system, the stem cells were returned to rebuild a new, disease-free immune system. Today, with all traces of the disease eradicated, she works, enjoys her family, downhill skis, and is a full and productive member of our society.

More recently, Tyler Rabey, a young man from Montreal, was close to death with aggressive blood cancer. All conventional chemotherapy treatments had failed for him, but Tyler had a young doctor who was fighting for him, a real champion, and this led to Tyler's being enrolled in an SCN-funded clinical trial. The trial provided him with a transplant, using stem cells that had been expanded from cord blood by using a novel technology developed by Canadian researchers. Tyler's now back at home. He's pursuing his master's degree and contemplating writing a book about his experience. For the Stem Cell Network, research is about changing lives. It's about saving lives.

Stem cell research was pioneered by two Canadians in the early 1960s. It truly is a Canadian science, and today the estimated global market value for regenerative medicine stands at $66 billion. It is a market that is continuing to expand and is fuelled by high-quality research, but the burden of treating chronic disease in this country is also growing, and it stands at $190 billion per year, not to mention income and productivity losses. This situation is simply not sustainable. We need innovative therapies and technologies that can address the health imperatives and the economic potential.

Regenerative medicine is an emerging Canadian industry, and with strategic investment we are well positioned to compete globally. Countries around the world are making targeted investments in this field because they understand that real benefits will result, and I hope this committee will also see its significant value.

SCN has developed a national network that has transformed stem cell research and pushed the boundaries of what was a basic research area towards translational outcomes for the clinic and marketplace. We've supported 170 world-class research groups across Canada—that's 5,000 FTEs who've engaged in SCN-funded research. We've provided 2,500 young investigators with specialized training, and I know that Stem Cell Technologies, Canada's largest biotech company, is looking to us to provide the commercialization and technical support needed for their company's competitive global advantage.

As of 2018, SCN had provided $100 million in innovative research, resulting in partner contributions of $116 million. I'm thrilled to share that our partners have committed an additional $60 million for research to be conducted over the next five years. However, this investment will be realized only if SCN is able to keep its doors open after March 31, 2019, with an investment of $70 million over the next five years.

Without stable and predictable federal support, the network will come to an end. Silos will emerge and scientific progress will be set back. As a national network, we bring researchers out of their labs and institutions to work together to push forward discoveries that will make a difference in the lives of Canadians. We follow the research and we're nimble, so we're able to support new areas of activity that catalyze important advances.

It is with our leadership that Canada's investigators are continuing to punch above their weight. A clear example of this is exemplified by an investment made by Verizon Ventures and Bayer, who together contributed $225 million U.S. to establish BlueRock Therapeutics, a global biotech company that's founded on the science of two outstanding Canadian stem cell researchers. At the time of the announcement, it was called a monster deal. With continued support and leadership by SCN, we are positioned to attract greater investment into this high potential sector.

Dr. Michael Rudnicki, our scientific director, has said that Canada is at a tipping point. Now is the time to double down and invest in regenerative medicine.

I would be pleased to take your questions.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Cate.

Last, but not least, we have our eighth panellists. We usually try to stick to six, but there was a lot of pressure to have eight today.

Welcome. From the University of Ontario Institute of Technology, we have Steven Murphy, President and Vice-Chancellor; and Susan McGovern, Vice-President.

[Dr. Steven Murphy, President and Vice-Chancellor, University of Ontario Institute of Technology]

Thank you, Mr. Chair.

Good afternoon, Chair, honourable members and legislative staff. I'm Steven Murphy, President of the University of Ontario Institute of Technology. I'm joined here today by Susan McGovern, our Vice-President of External Relations and Advancement. I'd like to thank you for the invitation and for including our proudly Oshawa-based university in these important consultations in advance of the next budget.

I'd like to start by recognizing some of the significant support we've received from the Government of Canada in recent years. First, through the post-secondary institutions strategic investment fund, we were able to complete our software informatics research centre, which is having a profound impact on our students, researchers and the private sector.

I'd also like to recognize the recent support we've received from the Federal Economic Development Agency for Southern Ontario in our ACE enhancement project. This support is allowing us to move and to integrate our moving ground plane into our ACE facility—already one of the largest and most sophisticated climatic wind tunnels on the planet—and to turn it into a facility that is truly unique worldwide. Working with our partners from industry, including Magna and Multimatic, as well as the Province of Ontario and Government of Canada, this project is a true example of academic institutions, government and industry working together to change the face of the sector.

Canadian automotive companies can now do advanced R and D here in Canada, decreasing both their time to market and their costs. This is an exciting story of repatriating Canadian automotive R and D. The fact that it's happening here in Oshawa, where manufacturing is such a core part of the history of this community, makes it even more profound. I believe this is one example of the kinds of investments that governments, along with industry, can make to ensure Canada's economic competitiveness.

I'll turn now to experiential learning. When deliberating on where you invest in the upcoming budget to ensure Canada's economic success, I urge you to prioritize investments and support in experiential learning for students and work-integrated learning. In their pre-budget submission, Universities Canada made several recommendations relating to supporting hands-on learning, which I'm happy to echo here: specifically, expanding federal work-integrated learning programs across sectors and disciplines, with particular attention to under-represented groups; increasing work-integrated learning to support employers offering meaningful work-integrated learning placements, with a focus on small and medium-sized enterprises and companies new to work-integrated learning, including the not-for-profit sector, which will need funding; leveraging existing federal programs and initiatives to reward companies participating in work-integrated learning; and renewing and enhancing the Canadian incubator and accelerator program to support applied student learning and entrepreneurship, which would include subsidies to start-ups for taking co-ops and internships.

Experiential learning and innovation are two of our major focuses at our university. I can tell you that investing in students getting hands-on experience with employers pays off dividends and directly supports our economic competitiveness as a nation.

International mobility of students is another critical area where investment can support Canada's economic competitiveness. We need to ensure that our students have the skills that employers are looking for in an increasingly global marketplace. As outlined in the report Global Education for Canadians, “If Canada is to compete in an increasingly interconnected and fast-changing world, our next generation of leaders will need the experience and connections to operate internationally.”

Currently, only 11% of Canadian students have an international learning experience during their undergraduate degree. That is much lower than our counterparts in France, Germany, Australia and even the U.S. Investing in an international mobility strategy would be one strategy to consider. Universities Canada is proposing a “go global Canada” initiative, which I recommend you look at.

It's beneficial to have Canadian students study abroad, and it's also beneficial to have international students come to study here in Canada. The recent situation with the recall of students by the Kingdom of Saudi Arabia has highlighted an area of sectoral risk that we should all be concerned about mitigating. We recommend the development of a diversification strategy to promote Canada as a destination of choice for education, which could go hand in hand with the trade diversification strategy.

While institutions will recover in the future through recruitment efforts, there are immediate budgetary impacts this year with the sudden departure of Saudi scholarship students. For example, the direct financial impact on our university is in the order of $3 million, or approximately 2% of our tuition budget. This is a significant impact to a smaller institution such as ourselves, especially as we're looking to increase our international enrolment and to reach sector average in enhanced learning for our students.

The situation in Saudi Arabia has highlighted the challenge that's been the top of mind for Canadian institutions for many years, and that is the need for federal support to promote Canada as a destination of choice to a more diverse set of countries. For smaller institutions like ourselves, the start-up costs for reaching out into new markets for recruitment are significant. As the Government of Canada seeks to increase and diversify trade in the Asia Pacific and elsewhere, strengthening people-to-people ties through educational exchanges, study abroad, will help to build and maintain strong foundations for diplomatic and trade relationships.

With regard to research, we support the recommendation by Universities Canada that it is important to support state-of-the-art research and training by providing significant multi-year increases to the research support fund, building on the fundamental science review recommendations.

We also recommend providing additional funding for equipment and infrastructure. Technology, as we know better than most, is moving rapidly, and funding needs to respond quickly. There are still limited programs to support large equipment costs. Access to small universities is further reduced based on the current program format, guidelines and approach.

As well, we support continued investment in application-driven research through the fundamental research, along with continued investment in Canada's digital research infrastructure. Additional support for innovators, entrepreneurs, and intrapreneurs to help business start up and stay in Canada would also support Canada's economic competitiveness.

I would also like to applaud all efforts in equity, diversity and inclusion to make our professors and Canada research chairs more representative. I would urge the government to remember that gender is one very important piece in a much larger diversity conversation.

In closing, continued investments in all universities, small, medium and large, will create strong local and national economies, as universities produce rich talent and generate relevant research and innovation that leads to enhanced innovative capacity that enables economic growth and societal benefit.

In addition, investment in universities will enhance Canada's global reputation as an attractive place to invest and grow businesses.

Thank you again for the opportunity to present here today. We look forward to responding to any questions you may have.

[The Chair, Liberal, Wayne Easter]

Thank you all very much.

We've certainly covered a lot of bases, and if we said yes to all the money requested here, we would really be spending.

We'll go to the first three questioners for seven minutes. We'll probably end up going until 2:30 rather than 2:15, if that's okay.

Mr. Sorbara, you have seven minutes.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Thank you, Mr. Chair.

Welcome everyone. Those were great, quality presentations.

I will start with CLHIA.

I used this analogy the other day with regard to covering the gap on pharmacare. It's like baseball: We need to cover the gap if you're an outfielder. We have about 75% coverage in Canada or thereabouts, in terms of people having access to a program to pay for their prescription drugs.

What would be the first two steps that you would encourage the federal government to look at to cover the remaining gap?

[Brent Mizzen]

I spoke to the issue of high prices in Canada for prescription drugs.

The first issue to address, which would help with all payers and therefore with access, is first, implementation of the PMPRB reforms. Those are on their way and we are fully supportive of them.

The second one that I spoke of—

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Sorry, is that the patented medicines review?

[Brent Mizzen]

It's the Patented Medicines Prices Review Board, yes.

The second element is having the private insurers join the pCPA, the pharmaceutical alliance that currently is with governments. The reason for doing so is that it would allow all buyers to pool their full market power to negotiate lower prices, to bring prices down even further.

That was sort of one bucket.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Go ahead quickly on your second.

[Brent Mizzen]

Second, the key issue with coverage for those who don't have it is to have a minimum formulary of medicines that can be covered either through a government plan or a private plan.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

My understanding, having read about it, is that that is the situation now in Quebec. They have a mandatory formulary.

[Brent Mizzen]

That's correct. It requires that a certain level of coverage be provided to everyone, either through a government plan or through a workplace plan.