Evidence of meeting #208 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was payment.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Mark Schaan  Director General, Marketplace Framework Policy Branch, Innovation, Science and Economic Development Canada
Marianna Giordano  Director, Canada Pension Plan Policy and Legislation, Department of Employment and Social Development
Nathalie Martel  Director, Old Age Security Policy and Public Pension Statistics Division, Seniors and Pensions Policy Secretariat, Income Security and Social Development Branch, Department of Employment and Social Development
Deborah Elder  Senior Director, Pensions and Benefits Sector, Office of the Chief Human Resources Officer, Treasury Board Secretariat
Simon Crabtree  Executive Director, Pensions and Benefits Sector, Office of the Chief Human Resources Officer, Treasury Board Secretariat
Jeannine Ritchot  Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat
David Spicer  Vice-President, Regulatory Modernization, Innovation, Science and Economic Development Canada
David Lee  Chief Regulatory Officer, Issues Management, Health Products and Food Branch, Department of Health
Greg Loyst  Director General, Policy and Regulatory Strategies Directorate, Department of Health
Tim Krawchuk  Manager, Excise Duty Operations – Alcohol, Canada Revenue Agency
Tolga Yalkin  Director General, Consumer Product Safety Directorate, Department of Health
Sylvain Souligny  Director General, Legislative and Oversight Management, Department of Transport
Jason Flint  Director General, Policy, Communications and Regulatory Affairs Directorate, Department of Health
Cindy Evans  Director General, Centre for Biosecurity, Public Health Agency of Canada
Sara Wiebe  Director General, Air Policy, Department of Transport
Keith Jones  Acting Director, International Marine Policy, Department of Transport
Katherine Richer  Senior counsel, Immigration, Refugee and Citizenship Canada Legal services, Department of Justice
Cynthia Leach  Director, Housing Finance, Capital Markets Division, Financial Sector Policy Branch, Department of Finance
Robert Sample  Director General, Capital Markets Division, Financial Sector Policy Branch, Department of Finance
David LeDrew  Senior Advisor and Economist, Department of Finance
Michel Tremblay  Senior Vice President, Policy, Research and Public Affairs, Canada Mortgage and Housing Corporation
Karen Hall  Director General, Social Policy Directorate, Strategic and Service Policy Branch, Department of Employment and Social Development
Hugues Vaillancourt  Senior Director, Social Development Policy Division, Social Policy Directorate, Strategic and Service Policy Branch, Department of Employment and Social Development
Elizabeth Douglas  Director General, Service Delivery and Program Management, Department of Veterans Affairs
Atiq Rahman  Director General, Canada Student Loans Program, Learning Branch, Department of Employment and Social Development
Michael Nadler  Acting Chief Executive Officer, Parks Canada Agency
Kevin McNamee  Director, Protected Areas Establishment Branch, Parks Canada Agency
Crawford Kilpatrick  Director General, Strategic Sourcing Sector, Department of Public Works and Government Services
Shawn Gardner  Senior Director, Real Property Service Management Contract Division, Department of Public Works and Government Services
Christopher Meszaros  Senior Counsel, Department of Justice

3:55 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

I want to know how frequently the Government of Canada stops making its contributions as a result of the current 10% limit.

3:55 p.m.

Executive Director, Pensions and Benefits Sector, Office of the Chief Human Resources Officer, Treasury Board Secretariat

Simon Crabtree

We haven't limited the federal government's contributions to date. For example, Public Services and Procurement Canada currently has a 106% surplus. So we're talking about 6%. We've never seen a case in which employer contributions had to be limited. In view of what we've recently observed in the markets, we anticipate that may eventually occur.

What would happen, if we hit that limit, effectively would be that the government would be forced to take a contribution holiday. If we didn't change the limit and left it at 10%, the government would have to cease making contributions immediately until it came back below the 10% limit. Given the market volatility, we want to ensure that there's an additional comfort or buffer zone to allow this not to be forced to happen.

4 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

So it's not in order to react to something that's already occurred but rather to anticipate something that might occur.

4 p.m.

Liberal

The Chair Liberal Wayne Easter

Are there any further questions on this division?

Okay, thank you, Mr. Crabtree and Ms. Elder.

We will call up the officials for regulatory modernization, part 4, division 9, subdivisions A, B, C, D, E, F, G, H, I, J....

We have Ms. Ritchot, executive director, regulatory policy and co-operation directorate, Treasury Board Secretariat.

The floor is yours.

May 6th, 2019 / 4 p.m.

Jeannine Ritchot Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Thank you very much, Mr. Chair.

As you can see, I'm accompanied by a number of colleagues who'll be helping me during the presentation.

I'm going to provide a brief overview of the initiative we'll be discussing today. In its fall 2018 economic statement, the government committed to introducing an annual regulatory amendments bill. That bill starts this year, in 2019.

The purpose of the bill is to modernize regulatory requirements to better reflect the realities of the new digital economy, to relieve the administrative burden of regulation in Canada and to lower barriers to investment and innovation in this country. To that end, it is necessary at times to amend the act. This bill will allow us to amend several at a time.

The first bill will be presenting changes to 12 acts across a variety of sectors. In a moment my colleagues will start to outline some of those sectors. These changes will help to cut costs to both regulated parties and to regulators in a bid to make regulation more efficient. Many of the changes will respond to long-standing irritants that have been raised by business to regulators and many of the changes will also support a more innovative, flexible and agile regulatory framework. This is one of multiple initiatives that the Treasury Board Secretariat is pursuing on behalf of the government to support a regulatory competitiveness and innovation agenda.

I'm now going to turn to my colleagues to go through the individual changes to the acts. I believe we're starting with a repeat performance.

4 p.m.

Liberal

The Chair Liberal Wayne Easter

Before we go to Mark, I don't know if anyone else has any questions basically on the process, but I certainly do.

On regulatory modernization, Jeannine, I know it crosses all sectors and all departments, but what kinds of consultations actually take place with stakeholders? I've heard from some who don't believe they were consulted, but there are a lot of stakeholders in every field. What's the process by which Treasury Board decides what areas of regulation they're going to propose changes to? I agree entirely with the principle because I believe from a policy perspective.... Certainly at the finance committee we've been out there trying to find ways to make industry more competitive, and then we see some regulations—and I'll be honest with you—going in that probably makes us less competitive. It's a tough area.

How do you make the decision and what is your area of consultation when you're looking at making regulatory changes?

4:05 p.m.

Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Jeannine Ritchot

Thank you, Mr. Chair, for the question.

I didn't mean to move straight into the substance. Although—

4:05 p.m.

Liberal

The Chair Liberal Wayne Easter

I know Mark was biting at the bit. He hasn't been here before.

4:05 p.m.

Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Jeannine Ritchot

Mark was really looking forward to it. That's right. He really wanted to go again.

It's an excellent question. I should say that a fundamental pillar of the Government of Canada's regulatory modernization agenda is greater transparency and greater engagement with stakeholders.

In the case of the first annual regulatory modernization bill, the government made clear its intention to have something tabled in 2019. That left us with a very narrow window in which to get the first bill done. We did, however, have a plethora of other consultative measures that we were able to draw from.

You may recall, Mr. Chair, that in 2018, the government announced targeted sectoral regulatory reviews in three key sectors. The purpose was to enhance flexibility in those sectors, more competitiveness and more innovation. Those were specifically agri-food and aquaculture, transportation and infrastructure, and health and biosciences. A lot of the ideas from this regulatory modernization bill came directly from the consultations that Treasury Board Secretariat and the partnered departments held for those regulatory reviews.

It is fair to say that not every single irritant raised could be addressed in this first bill. That was quite simply a measure of the time we had to put together this bill and get it into the House of Commons in 2019. On an annual basis, we will build in strong consultation mechanisms to make sure that stakeholders and departments have the opportunity to be heard, and to make use of this tool.

4:05 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay. This will be done on annual basis.

4:05 p.m.

Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Jeannine Ritchot

That's right.

4:05 p.m.

Liberal

The Chair Liberal Wayne Easter

Say that ABC organization has concerns about regulations or changes that might be forthcoming. Is there any way that businesses or individuals can get to the centre that's doing these consultations, or that's making these changes, to provide their input?

4:05 p.m.

Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Jeannine Ritchot

Yes. Once we get through the first annual regulatory modernization bill, we'll be taking a look at how to make this a more regular occurrence, on an annual basis. This was the first time through. Part of that will be building in a centrally led process that my team at Treasury Board Secretariat would lead. That would allow input in a way not dissimilar to what we do for regulatory reviews. Treasury Board Secretariat led the national consultations on the regulatory reviews. We were the central single window for stakeholders to come in and let the government know what they wanted to see changed.

That will continue for both reviews. We'll look at making it part of this, as well.

4:05 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay.

Does anybody else have any questions?

Then we'll turn to Mr. Schaan, who is biting at the bit.

Go ahead, Mark, with the Bankruptcy and Insolvency Act .

4:05 p.m.

Director General, Marketplace Framework Policy Branch, Innovation, Science and Economic Development Canada

Mark Schaan

Thank you, Mr. Chair.

The first issue in this bill concerns changes in insolvency.

Licensed insolvency trustees must renew their licences and pay fees on December 31, annually. This deadline creates unnecessary administrative burden or pressure for many trustees, because it may fall during the end-of-year holiday period. We are proposing, as part of this, two changes.

The first is to change the deadline. The proposed amendment would allow for a licence renewal date that is more convenient. It would be prescribed in regulation. It wouldn't conflict with the end-of-year holiday period or other inconvenient periods.

Right now, trustees are required to keep the original signed copy of specified documents, notably minutes, proceedings and resolutions passed at any meetings of creditors or inspectors, whereas all other estate documents can be kept in digital form. As a function of a long-standing complaint from the trustee community that this requirement is out of date and causes unnecessary administrative burden, the government will allow for digital office practices by licensed trustees.

4:10 p.m.

Liberal

The Chair Liberal Wayne Easter

Are there any questions on subdivision A of division 9?

We're all okay.

Okay, thank you very much.

You're getting efficient, Mark. Come forward again and it will be done before you even read your part.

Subdivision B, amends the Electricity and Gas Inspection Act.

We welcome Mr. Cotton, vice-president, program development directorate, and Mr. Spicer, vice-president, regulatory modernization.

4:10 p.m.

David Spicer Vice-President, Regulatory Modernization, Innovation, Science and Economic Development Canada

Thank you, Mr. Chair.

I'm David Spicer, vice-president of regulatory modernization. With me today is Carl Cotton, vice-president of the program development directorate. We're with Measurement Canada.

Measurement Canada is an agency of Innovation, Science and Economic Development Canada. Our mandate and legislation are designed to ensure measurement accuracy to protect consumers from measurement errors.

Clause 162 would provide the ability for the minister to make regulations to allow new units of measure for electricity and gas sales and distribution not currently specified in the act. This measure increases the agility of legislation and facilitates a faster response when new technologies are proposed to enter into the Canadian marketplace. This authority would allow the government to react more quickly to accommodate new technologies and innovation that might not use traditional units of measure for electricity consumption.

Current examples would be zero-emission vehicles and light-emitting diode street lights being introduced with innovative measuring devices.

The authority permits the use of the new unit of measurement in a time-limited context. The regulations made under this authority would expire when a permanent amendment to the electricity and gas inspection regulations is made through the normal regulation-making process, or they would expire after three years.

Thank you.

4:10 p.m.

Liberal

The Chair Liberal Wayne Easter

Are there any questions on this division?

Mr. Dusseault.

4:10 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Does the government frequently use new units of measurement for electricity and gas. I thought it didn't.

4:10 p.m.

Vice-President, Regulatory Modernization, Innovation, Science and Economic Development Canada

David Spicer

No, it isn't frequent. In fact, this authority is very much anticipatory should there be a new unit of measure. Part of the reasoning behind this is that as things are moving more quickly, new technologies are being introduced. This allows a bit more of a rapid response should a new unit of measurement be introduced.

To answer your question, no, they're currently not all that frequent.

4:10 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Would new units of measurement otherwise be introduced via legislative or regulatory initiatives?

4:10 p.m.

Vice-President, Regulatory Modernization, Innovation, Science and Economic Development Canada

4:10 p.m.

Liberal

The Chair Liberal Wayne Easter

Are there any further questions?

Thank you, Mr. Spicer and Mr. Cotton.

On subdivision C, the Food and Drugs Act, we have Mr. Loyst.

There are a few officials here.

We have Mr. Lee, who is the chief regulatory officer.

Is Mr. Flint here?

4:10 p.m.

Executive Director, Regulatory Policy and Cooperation Directorate, Regulatory Affairs Sector, Treasury Board Secretariat

Jeannine Ritchot

He's coming later.

4:10 p.m.

Liberal

The Chair Liberal Wayne Easter

As well, we have Mr. Yalkin.

Go ahead, Mr. Lee.