Finance Committee on Oct. 19th, 2016

[The Chair, Liberal, Wayne Easter]

Okay, thank you.

Mr. Dusseault, you have a quick question.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Madam Sariffodeen, I wonder if universities are contributing to your program, because the training is done before those young women go to university. Do universities finance your program, and do they advertise their own programs in computer science and attract students to them?

[Melissa Sariffodeen]

That's a good question. We've actually been hired out of Toronto by a few of the post-secondary institutions to teach their students or their faculty to code, but we do benefit across the country from in-kind sponsorship of space from a lot of universities and colleges because they recognize the value of having our women in those spaces so that they can then promote and advertise to them. It's not necessarily a financial contribution or partnership, but definitely an in-kind venue space that they open up to host our program.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

It's in their interest to do that.

[Melissa Sariffodeen]

Yes, definitely, and in ours as well, because we need to get women through the rest of the pipeline to become developers.

[The Chair, Liberal, Wayne Easter]

I wish we had time as a committee while we're here to do a tour of the Irving Shipbuilding facility. I imagine everyone saw that facility when they came in last night. I came in after everybody else.

Does anybody want to make a comment on that facility, and what it means to the Nova Scotia region? I think it's probably one of the top-of-line shipbuilding venues in the world.

[Patrick Sullivan]

I could start, and perhaps Finn would like to add some numbers to that.

This is a facility that is going to generate income and jobs in the thousands for 20 to 25 years in this region. It is a significant establishment. It is not any old shipbuilding facility. They built it, literally, from the ground up, so it is effectively brand new. It's producing ships right this minute, and will be producing ships for literally 25 years, almost a generation of employees. I forget what the number is, but they'll hire between 2,000 and 4,000 people and employ those people over that period of time. It is a significant economic generator to this area and is stimulating many other businesses in the area that will supply that facility.

[Finn Poschmann]

Patrick said 2,000 to 4,000, I was going to say about 3,000 in the skilled trades, which is a big impact, and that's just part of it. It's visible already. If the members walk a couple of blocks south of here, they can see it in the skyline.

[The Chair, Liberal, Wayne Easter]

With that, I'll thank you all for your presentations and your information this morning.

We will suspend for about 10 to 15 minutes while the next panel comes forward.

The meeting is suspended.

[The Chair, Liberal, Wayne Easter]

Okay, we'll reconvene and thank the witnesses for coming.

As you know, pursuant to Standing Order 83.1, the finance committee is doing pre-budget consultations in advance of the 2017 budget.

We will ask witnesses to try to hold their presentations to about five minutes to leave more time for questions. I think you know the theme that we would like to try to focus on—although it is pre-budget and you can cover whatever you like—and it is what we need to do in this country to achieve better economic growth.

To start, I'll ask members of the committee to introduce themselves so that you know where they're from and what region they represent.

We'll start with Mr. Grewal.

[Raj Grewal, Liberal, Brampton East, ON]

Thank you, Mr. Chair.

Thank you to the witnesses for coming.

My name is Raj Grewal, and I am the member of Parliament for Brampton East, just outside of Toronto.

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

Good morning, Chair.

Good morning, everyone. Thank you for being here.

My name is Francesco Sorbara. I am the member of Parliament for Vaughan—Woodbridge.

[Steven MacKinnon, Liberal, Gatineau, QC]

Good morning, everyone.

I am Steve MacKinnon, member of Parliament for Gatineau, Quebec.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

I am Pierre-Luc Dusseault, member of Parliament for Sherbrooke, which is in the Eastern Townships, Quebec.

I am with the NDP caucus.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Good morning, everyone.

I am Dan Albas.

I am from the interior of British Columbia, and my riding is Central Okanagan—Similkameen—Nicola. I'll pay you five dollars if you can say it five times fast.

I am a Conservative member, looking forward to your input today.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Good morning, everyone.

I am Ziad Aboultaif, member of Parliament for Edmonton—Manning, a Conservative member from Alberta.

[The Chair, Liberal, Wayne Easter]

I am Wayne Easter, Liberal member of Parliament from the riding of Malpeque, Prince Edward Island.

We'll start with eBay Canada Limited. Ms. Stairs, the floor is yours.

[Andrea Stairs, Managing Director, eBay Canada Limited]

Thank you very much, Mr. Chair.

Mr. Chair, members of the committee, thank you for inviting me here today. My name is Ms. Andrea Stairs and I'm managing director for eBay Canada.

Launched more than 20 years ago, eBay has become one of the world's largest online marketplaces, with approximately one billion items and 164 million users around the world. Here in Canada, eBay is a top e-commerce destination, with more than eight million unique monthly visitors who spend more than $1 billion annually.

At the outset of consultations, the committee asked for views on federal actions that would promote Canadian business prosperity and economic growth. I'd like to describe for you the benefits of e-commerce and recommend a policy change that will empower Canadian small and medium-sized businesses to thrive in the global economy.

In addition to changing how consumers buy, e-commerce has changed the way we sell, and eBay has created a platform where anyone can become an entrepreneur, starting with a single listing. E-commerce is levelling the playing field for rural and urban retailers. You no longer need to live in a city to access enough buyers to make your business viable.

What excites me most is that eBay is the launching point for small businesses that want to go global. In fact, I am joined here today by eBay's 2015 exporter of the year, Kimberley Wotherspoon, of LumberMart in Dartmouth. By selling on eBay, Kimberly increased LumberMart's online sales by 1,000%, with 50% of those sales going to customers outside Canada.

Kimberley is one example among thousands on our platform. In fact, in 2015, 99% of Canadian commercial sellers on eBay exported. That compares to less than 12% of traditional Canadian small and medium-sized businesses who export. By selling to customers across the globe, these micro-multinationals are able to create jobs and drive other social benefits here at home.

While technology and platforms like eBay are making international trade more inclusive, small businesses are not able to realize their full exporting potential because of outdated government policies. We hear from our Canadian sellers that Canada's de minimis threshold causes significant shipping issues and border friction that complicate exporting.

For those unfamiliar with Canadian customs policy, the de minimis threshold is the value below which goods can be shipped into the country before duties and taxes are assessed. This is why we're proposing that the Standing Committee on Finance recommend that the Government of Canada increase the de minimis threshold from its current level of $20. This $20 threshold was originally set in the early 1980s, prior to the birth of e-commerce. In fact, had it simply been increased with inflation, Canada's de minimis threshold would now stand at almost $45. Instead, Canada's de minimis is the lowest in the industrialized world and among the lowest globally.

The low de minimis level causes major friction for Canadian small business. It negatively impacts their ability to access low-value international supply chains and creates red tape when purchases are returned from foreign buyers. In fact, a report from the C.D. Howe Institute found that an increase in the de minimis level from $20 to $80 would benefit Canadian businesses by more than $100 million in reduced red tape and other costs. Furthermore, Canada's low de minimis threshold does not support what the Canadian consumer wants: fairness and choice.

E-commerce gives rural Canadians or Canadians with physical limitations access to goods that are otherwise hard to find. It's easy to see why a recent Nanos poll found that 76% of Canadians were in favour of increasing the de minimis.

Finally, an increase of the de minimis would improve government efficiency. The report from the C.D. Howe Institute also found that the Government of Canada is spending $166 million to collect just $39 million in duties and taxes on goods valued between $20 and $80. As taxpayers, we should all be concerned that the costs in assessed duties dramatically exceed the revenues actually collected on low-value purchases.

In conclusion, as a platform for small business and a member of the Retail Council of Canada, eBay respectfully requests that the committee recommend an increase to Canada's outdated de minimis threshold.

I look forward to your questions.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Andrea.

Turning to the Newfoundland and Labrador Federation of Labour, Ms. Shortall, I do apologize for not getting to Newfoundland. Even as the finance committee, we had budget restraints and we couldn't get to Newfoundland or the Territories.

The floor is yours. Welcome.

[Mary Shortall, President, Newfoundland and Labrador Federation of Labour]

Thank you, Mr. Chair and committee, for allowing us to have our voice and come here to Nova Scotia. That's very important for us.

We're happy to be here because consultation is very important to the 65,000 members—working men and women in every sector of our economy and every community in our province—who are represented under the umbrella of the Newfoundland and Labrador Federation of Labour.

We have issues that I'm going to talk about that fit under the three questions that were sent to us. These areas are helping Canadians, health care, and pharmacare.

We recommend that government restore the intent and integrity of the Canada Health Act and renegotiate a new health and social accord with the provinces and territories. This accord should provide stable annual increases in funding tied to improvements in, and the expansion of, public health care, to a minimum of 25% by 2025.

We do not support the privatization of health care through fees for service, public-private partnerships, or any other form of privatization.

Investments in health care should include a national pharmacare program, a national seniors strategy, a national mental health strategy, and improved access to health services in home and community settings.

It's also important that the five fundamental principles of universality, accessibility, comprehensiveness, portability, and public administration form the foundation of this accord. We believe that the social outcomes of such an investment are significant, but so are economic outcomes such as job creation and economic activities.

In terms of early childhood education and care, one of the most important things that the federal government could do to improve the quality of life of Canadians is to ensure that families have access to quality and affordable early childhood education and care. Investing in a national child care strategy will help address the gender gap across the country, increase labour market participation among women, and create significant local economic activity.

Many studies have shown that early childhood education generates far more jobs than other sectors, returns an estimated $2 in benefits for every dollar invested, and can pay for itself in fiscal terms.

Research also shows us that aside from raising families out of poverty and stimulating the economy, early childhood education allows children to thrive regardless of their economic or social status.

With the rise in precarious work, inequality, low-wage jobs, and unemployment, we also need to strengthen legislation, policies, and programs that protect the interests of workers. Research has shown that higher unionization rates and wages lessen income and gender inequality and are better for our economy. When workers earn more, they pay more taxes and spend more in their communities. The Newfoundland and Labrador Federation of Labour recommends a federal minimum wage of $15 an hour.

On infrastructure investment in strong public services, we recommend increased investment in public services and infrastructure. Public services in Canada have experienced deep cuts over the past decade. Strong public services form the backbone of communities and hence sustainability, allow the business community to flourish, and are grounded in good jobs with good wages that are spent in local communities.

Investment should also look at the green economy and jobs and a movement away from the P3 model and privatization as a means of delivering public services to Canadians.

The federation of labour also recommends improved funding for stronger labour market agreements. The upcoming budget should expand investment in active labour market policies in the areas of training and job search assistance. We would like to see the budget follow through on the government's full funding commitment for labour market development agreements and the Canada job fund agreements.

In addition, eligibility for accessing these programs should be expanded to include young workers and newcomers, and it should include investments in training for women to increase their participation in non-traditional work.

Another federal measure is pay equity. One of the ways the federal government could address the gender wage gap is through pay equity legislation. We recommend that the Liberal government act on the recommendations put forth by the House of Commons committee on pay equity for such legislation, which would oblige employers in the federal sector to take steps to eliminate gender-based wage discrimination. It's also good for our economy.

The Newfoundland and Labrador Federation of Labour recommends a review of the equalization program with a view to making it more responsive in times of an economic recession. Given the lag in the application of the current equalization formula, the government may want to revisit it to explore ways that would lessen the impact of commodity price fluctuations on employment, communities, and workers.

The Newfoundland and Labrador Federation of Labour finally recommends that the government implement universal qualification for employment insurance at 360 hours, increase benefits to 60% of normal pay using a worker's 12 best weeks, and review the social security tribunal, the SST.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Ms. Shortall.

Pallium Canada, Ms. Downer and Mr. Pereira, the floor is yours.

[Dr. José Pereira, Chief Scientific Officer, Pallium Canada]

Good morning, Mr. Chair and honourable members of the committee, and many thanks for this opportunity to present on behalf of Pallium Canada.

Pallium Canada is a non-profit organization that reaches across the country, and our goal is to improve capacity with respect to palliative care.

In June 2016, medical assistance in dying—or MAID, as it is referred to—was legalized in Canada. There's been a concerted effort by many entities to ensure that all Canadians have access to MAID.

During the debates that preceded the introduction of that legislation, the point was repeatedly emphasized that there should also be universal access to palliative care. We have, however, lagged far behind in making this happen. Access to palliative care is patchy across the country. The Canadian Hospice Palliative Care Association, for example, has estimated that only 15%-30% of Canadians who need palliative care have access to it.

The request that we, Pallium Canada, have submitted to the finance committee will increase access to palliative care across the country.

It is often erroneously assumed that palliative care is delivered only by specialist palliative care physicians and nurses and that palliative care is activated only in the last days or weeks of life. These assumptions reduce capacity by relying on a small number of health care professionals to deliver all the palliative care that is needed for cancer diagnoses and for non-cancer diagnoses such as advanced lung, heart, liver, and kidney diseases, among others. Patients are subjected to needless suffering during their illnesses, and opportunities are missed for more timely discussions and planning for end-of-life care. Poor treatment choices are made, including unrealistic, burdensome, and costly treatments, and sometimes inappropriate use of precious health care resources.

I can sit here and share with you many studies that highlight the benefits for patients' families and the reduced cost to the health care system, but I'd like to share with you my own personal story, the story that brought me to palliative care. It is a story that for me illustrates the power of what we are doing.

In the early 1990s, I was working as a family physician in a small rural community in Manitoba, and one day a patient by the name of George and his wife came into my office. I'd never seen George before. He sat down and he said to me, “Dr. Pereira, I need help. I know I have advanced cancer, and I know I'll be dying in the next few months, but I'm with terrible, terrible pain, and I need help.”

Now, I had not received any palliative care education and, unfortunately to this day, there are many health care professionals from many different disciplines—family medicine, oncology, internal medicine, renal specialities, etc.—who have not received training.

I gave George the wrong advice, and the advice I gave him regarding his pain medication was woefully inadequate. I vividly remember the moment George stood up and took his wife by the hand. As he left the room, he turned to me and he said, “I hope one day doctors like you can help people like me.” That was the inspiration for Pallium Canada.

As a result, I went and got some training. It was difficult in those days to find some short training. I got it in Hamilton, flew back, and asked him for a second chance, which he graciously gave me, and so I cared for him for the last months of his life in that small community in Manitoba. What it taught me was that with a little bit of training, a family physician such as myself in a rural community or any other community, or a nurse or a pharmacist, can make a very big difference to these patients.

In 2001, after specializing in palliative care, we founded Pallium, and since then we've been reaching out to train more and more health care professionals to reduce inappropriate emergency room visits, to reduce inappropriate hospitalizations, to reduce costly treatments that are inappropriate, and, importantly, to improve the quality of life of patients. The main vehicle of our work has been a course we've called learning essential approaches to palliative care, or LEAP.

We bring experts from across the country together. We bring nurses, doctors, and pharmacists, doctors from different specialty areas, nurses from different specialty areas, and social workers to learn together and to work together. We bring experts from across the country to develop the material, to disseminate it, and to teach in their local regions.

With the foundational funding we have received from Health Canada in previous years, we have developed the LEAP courses and other complementary products, such as online learning management systems—one called Pallium Portal—and an app for point-of-care learning.

We have trained and certified over 500 facilitators across the country, and that's what gives us our scalability. We are proud of the return on investment and the value added we've achieved. From 2001 to 2003, for example, we delivered 27 courses. In the fiscal year 2014-15, we delivered 43 courses, and in this past fiscal year, we were able to deliver 205 courses across the country. That's almost one course every one and a half days. We have trained 8,000 health care professionals with these basic skill sets that make all the difference to people like George.

We have learned the power of collaboration. We have set up key partnerships in this very province. In P.E.I., we partnered with emergency services to train all their paramedics. We did that last year within four months. Early observations indicate reduced emergency department visits and costs when EMS services care for these patients and are called to see these patients in their homes.

In Ontario, we have partnered with the Ontario Renal Network to develop the LEAP kidney program and have started educating teams across the province to reduce the burden of advanced disease and unnecessary treatments.

In the Quebec City region and in Ontario, we have partnered with family medicine clinics to do training. We've partnered with home care agencies. In British Columbia, our LEAP long-term care course is being used by local teams to improve end-of-life care in those homes.

With additional funding, which is our request, we will be able to scale up our work, particularly to build the capacity to provide palliative care in the home and in the community. We will be able to further leverage the LEAP courses to catalyze systems-level change, innovation, and improvement through quality improvement interventions. We will be able to ensure that all our materials are in the two official languages. We will be able to continue reaching out to the indigenous peoples of Canada and strengthen cultural competencies in our programs. We will be able to invest in new technologies to develop the next generation of our online management system and apps and collect more data to further guide us in targeting our strategies.

We need to reach out—and this is important—beyond the health care sector. Imagine, for example, if young Canadians in high schools were equipped with some basic life skills related to palliative care and were able to volunteer in the area and engage themselves in end-of-life discussions. This represents a tremendous opportunity for a much-needed culture shift to occur. Imagine a compassionate neighbourhood watch program, where neighbours and communities help each other.

We can improve palliative care access in this country. We already have tried and tested methods and tools at hand. We now need to be bold and invest in the opportunities that present themselves at this moment in our history.

Thank you very much.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Dr. Pereira.

Turning to Memorial University of Newfoundland, we'll have Mr. Greenwood and Mr. Blackwood. The floor is yours. Welcome.

[Dr. Robert Greenwood, Executive Director, Public Engagement, Memorial University of Newfoundland]

Good morning, Chair, and members of the committee.

I'd like to thank you on behalf of the president and vice-chancellor of Memorial University of Newfoundland, Dr. Gary Kachanoski. I am pleased to present on behalf of Dr. Kachanoski, who is leading convocation celebrations back in St. John's today. We would, indeed, love to host you in St. John's at some time.

As you noted, joining me are Mr. Glenn Blackwood, Memorial's vice-president for the Fisheries and Marine Institute. In the gallery is Dr. Charles Randell, president and CEO of C-CORE at Memorial University. I'll speak more about C-CORE.

The federal government has been our partner in many projects at Memorial. We are the only university in our province, and we have a special obligation to the people of the province, going back to our founding legislation in 1949. It builds on Memorial College, which was founded in honour of the men and women who sacrificed their lives in the First World War and then in the Second World War, so we attach great importance to our contribution to the needs of the province.

The funding partnership we've had with the federal government helps to drive innovation, as well as the economy of Newfoundland and Labrador and our country. Without the research performed and the skills learned in our university—much of it funded by the Canadian government—companies would be hard pressed to develop the products and processes on which the nation prospers.

Canada's commitment to being a world leader in economic growth, innovation, clean technology, environmental stewardship, and climate change mitigation is embodied and advanced by the world-leading work of Memorial University across many academic disciplines—in particular, by the Fisheries and Marine Institute and its Holyrood marine base, as well as by C-CORE and its cold ocean oil spill response centre of excellence. With federal investment and collaboration in the amounts of $25 million and $35 million respectively, these projects will have a lasting impact on the economic and environmental well-being of our country for many years to come.

The Fisheries and Marine Institute is one of the most respected centres of marine learning and applied research in the world. It is Canada's most comprehensive centre for education, training, applied and advanced research, and industrial support for ocean industries. You really must come to St. John's, if you haven't been there, and do a tour of the Marine Institute and C-CORE. Seeing is believing. It has been described as the NASA of the north. Glenn is currently chair of the International Association of Maritime Universities. There are American admirals who are on the committee that Glenn chairs. It is the best in the world.

To meet the growing demands and shifting challenges and opportunities presented by marine, offshore, and ocean technology sectors, the Marine Institute has undertaken developing the Holyrood marine base in the town of Holyrood, approximately 50 kilometres from St. John's. There are no access roads. You can get out there in 25 or 30 minutes.

The first phase of the base opened in 2010, very much driven by Glenn and his team. It includes facilities that house the Centre for Applied Ocean Technology, ocean technology small business incubation space, and research, training, and support space. The Marine Institute is incredibly connected with industry, community, and government. It leverages about half its budget. It's very entrepreneurial.

The second phase of the Holyrood marine base is now getting under way and will increase its capacity exponentially. Phase IIA includes the construction of a breakwater and a marginal wharf—Glenn can tell you what a marginal wharf is, if you are interested. Phase IIB includes plans for a new oceanfront building. This expansion will allow Memorial to undertake critical at-sea, in-water, and subsea education, training, research, and innovation activities. The base will also be the cornerstone of the town of Holyrood's new cold ocean innovation and research park, which will greatly bolster the ocean technology cluster in Atlantic Canada.

Memorial is one of the few, if not the only, university in Canada that has a public engagement framework, a strategy for the whole university about how the university connects with industry, community, and government. This work is really in concert with and exemplary of that work.

Memorial is seeking support from the federal government in the amount of $25 million in budget 2017 for the completion of phase IIB of the Holyrood marine base.

C-CORE is a not-for-profit research, development, and innovation corporation that was established at Memorial in 1975 to address the challenges of developing Canada's offshore resources. It raises all its funds through projects with industry, governments, and community.

Incredibly entrepreneurial, the Marine Institute and C-CORE are being studied by leading researchers in Canada now as examples of what the Jenkins task force called for—bridging institutions to link universities with industry and governments and communities.

It is globally recognized for unparalleled harsh-environment expertise and world-leading capability in remote sensing, ice engineering, and geotechnical engineering. It is home to the federally funded LOOKNorth, a centre of excellence for commercialization and research fostering remote sensing innovations to support northern resource development. C-CORE, in its areas of expertise, is the best in the world, doing work with the European Space Agency and others. Charles can rattle them off. They come to us.

To meet the growing need for sound science and engineering solutions to support safe and responsible activity in cold ocean environments, C-CORE is working with industry, government, and community partners to develop the world's first ice-capable oil spill research and response centre of excellence. The Sedna Centre will be the only facility of its kind in the world and make Canada—not just Newfoundland and Labrador, not just Atlantic Canada, but Canada, the country—the world's foremost nation in ocean safety, research, training, and innovation. The centre will enable cutting-edge research, clean technology development, and training related to oil spill prevention, response, and recovery in all areas of our oceans. Charles could go into more detail if you would like during questions and answers.

In budget 2017, Memorial is seeking support from the federal government in the amount of $35 million to leverage private sector funds for the construction of the Sedna Centre. It was industry that came to Memorial, and C-CORE in particular, to develop this ability.

I'd like to turn things back over to the committee and give you the opportunity to ask any questions you might have about either initiative, or about what Memorial is doing generally.

Thank you very much for your time.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Robert.

If we were closer, we would love to do a tour.

We turn now to NRStor Inc. and Mr. MacDonald.

Ron is a former member. When were you first elected? Was it 1988?