Evidence of meeting #47 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was innovation.
Conservative
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Thank you, Mr. Chair.
It's always a pleasure to welcome all of you. Madames et Messieurs, it's a real pleasure, and it's very interesting to see that on this issue we have a complete spectrum of witnesses: people from health, environmental people, heart people, and also business people.
My comments are for Mr. Conway.
May we speak French?
President and Chief Executive Officer, Financial Executives International Canada
If you wish.
Conservative
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Okay, we'll try it.
Mr. Conway, you spoke about the investments we must make and the economic vision we should have. You targeted three priorities very clearly: innovation, infrastructure, and Canada as a global competitor.
I would like to direct your attention to the second point, regarding infrastructures. At the outset you spoke about an oil pipeline. You spoke a bit later about renewable energy. I am sure you are aware that there is an important debate in Canada regarding the Energy East oil pipeline project. Opponents feel that the project is not relevant because renewable energy will make it useless.
Just to be clear, I want to inform you that I don't share this point of view.
I would like to hear your thoughts on this. Perhaps we can develop our natural resources, fossil fuels, and at the same time develop renewable energies?
President and Chief Executive Officer, Financial Executives International Canada
May I answer the question in English?
President and Chief Executive Officer, Financial Executives International Canada
Thank you.
To make sure I'm clear, the question is on the investment in renewable energy and the investment in more traditional energy.
Certainly the Canadian economy is driven and supported by both, so within our infrastructure priority recommendation is the identification of both priorities. On the one hand, it just makes common sense to make sure that you have access to the global markets and you have to get your product to the customers where they are; therefore, support of the various pipeline infrastructure will allow Canadian suppliers to get their product to various other markets. That just makes common sense.
On the renewable energy infrastructure, we heard in the earlier presentation from Ms. Thompson about various interesting initiatives. I agree with some of the comments made that we should leverage Canada's lead in some of the technologies and create it as a basis of growth. Consequently, investment in renewable energy infrastructure also helps in meeting the long-term energy needs and environmental priorities of our country.
Conservative
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Do I understand correctly that what you're saying is that we can be strong supporters of the actual energy that we have and give it access to the worldwide market, such as with the energy east pipeline project, and on the other hand, we can also be strong supporters of renewable energy?
President and Chief Executive Officer, Financial Executives International Canada
Absolutely.
Conservative
Gérard Deltell Conservative Louis-Saint-Laurent, QC
That is where we stand, because for us, we cannot oppose the actual business opportunity we have with new energy and also with actual energy. It's not because you develop and give access to our petroleum energy, which is quite interesting for all of us. I used to say that in Quebec we have 10 billion good reasons to be proud to be Canadian, because that kind of energy helps us so much with the equalization system. What I say is that we can work hand in hand, instead of in opposition. Can you talk about that?
President and Chief Executive Officer, Financial Executives International Canada
In fact I would go one step further. One helps the other.
If you have a strong ability for the more traditional sector to get their product to market, some of the profits that are derived from that will create taxes that can be used to fund the newer wave industries and the innovation agenda of the country.
Conservative
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Don't you think that actually it will put them in confrontation with each other instead of working together? Is it your perception today that we have more confrontation instead of collaboration?
President and Chief Executive Officer, Financial Executives International Canada
I don't think, frankly, that there is as much confrontation as the news media would let on. My personal opinion is that some of the traditional suppliers actually have taken steps to become greener because they recognize that sustainability is important to them and to the country. And frankly, if you're trying to sell one thing, you should be seen as a good corporate citizen, so they're doing that, too.
Liberal
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
Thank you, Mr. Chair.
I'll be fast also to make sure I ask as many questions as possible.
First, thank you to all the witnesses today.
My first question would be on the tax on tobacco and I want to get into numbers. I hope you have as many numbers as possible. What is the current federal tax on tobacco?
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
The federal government's revenue from tobacco taxes is $3 billion a year.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
Is there 1% that is currently spent on a strategy to reduce tobacco use?
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
That's right, the funding for the federal tobacco strategy is currently about $33 million a year.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
Is it something that is done in other countries around the world, and is it more than 1% in those countries?
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
The most striking comparison is in the United States where federal investments in tobacco control are twice per capita what they are here in Canada.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
That's very interesting. I hope the committee will look into that and maybe recommend that to the finance minister for the next budget because I think it would be a great thing. Right now I think most of the ads we see are coming from provincial governments in terms of trying to reduce tobacco consumption.
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
In terms of advertising...?
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
Yes, there is actually no federal support currently for public awareness or advertising available because the funds have been so restricted. And it has also restricted the government's ability, for instance, to develop new legislation and to keep on top of regulations because the capacity is just not there.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
Outside of advertising, what are some more effective ways to reduce tobacco consumption? What do they do in the U.S.? How do they use the money to try to combat that addiction?
Vice President, Public Issues, Policy, Cancer Information, Canadian Cancer Society
I think generally there is no question that there is a collection of measures that are important to combine.
The taxes themselves have been an enormously effectively measure to discourage smoking because as the cost has gone up that has caused a lot of people to quit.
Measures like plain packaging, which is going to be implemented here and which is really the elimination of the last form of legal advertising of tobacco, are also important.
But the kind of money that we're talking about investing in a proactive way first allows you do a traditional advertising and public awareness. It would allow us to use new social media tools to reach out to young people, where we really want to stop people from getting involved in smoking in the first place. It also gives you the ability to study what's causing people to take up smoking, and to be much more effective in the policy and legislative responses that we have.
