Finance Committee on Feb. 6th, 2020

[Natan Obed]

Nakurmiik.

We've had a housing crisis in Inuit Nunangat for decades, and it is only getting worse. Currently, Inuit experience a 54% overcrowding rate in Inuit Nunangat, our homeland. There have been specific federal investments in Inuit housing in the last four budgets, with approximately $400 million in budgets 2016 and 2017. They were transformative in their administration, in that the federal government would partner with Inuit, and Inuit would then decide how those monies flowed into housing solutions. We also, in 2019, created an Inuit housing strategy with the Government of Canada through our Inuit-Crown partnership committee.

We also have worked with the Government of Canada to have the ambition to end tuberculosis in Inuit Nunangat by 2030. We have a rate of tuberculosis that is over 300 times the rate of all Canadians born in Canada, and overcrowding is one of the key considerations in relation to tuberculosis and the spread of tuberculosis.

A transformative amount of money needs to be invested to eliminate the overcrowding in our communities, which will unlock economic potential, impact positively our mental health and physical health, and also bring equity into this country in relation to Inuit and the rest of Canadians.

[The Chair, Liberal, Wayne Easter]

Thanks to both of you.

We'll split the next four minutes between Mr. Cumming and Ms. Dzerowicz.

Go ahead, James.

[James Cumming, Conservative, Edmonton Centre, AB]

Thank you, all of you, for coming here today.

Dr. Krahn, my dad had a pacemaker. One of the things that really impressed me was the advent of technology in terms of participating; he could monitor from home rather than having to go to the hospital. He was able to do it remotely.

You talked about the collection of data. I'm fully onside with you, in that there seem to be a lot of silos in that collection of data. You spoke directly to the cardiac data. Can you offer an opinion? It's not just a cardiac issue. I would suspect that this is an issue of data collection throughout the medical field. Is the barrier just in getting the systems in place, or are there interprovincial barriers, too, between the provinces on the sharing of that data?

[Dr. Andrew Krahn]

There are barriers everywhere you go, for sure. There are barriers within provinces.

I'm from a place with five health authorities, where the privacy situations actually silo those health authorities from talking to each other. The reason our provincial pacemaker database is actually in five datasets that are not on speaking terms is privacy. Believe it or not, we have the same platform for technology without the ability or permission to connect it. That is a microcosm of what is happening federally from the standpoint of our ability to connect this.

CIHI is one of those exceptions, because it has a federal lens as its host. Although there are discussions, even for things like data formats, universal language, data ownership and so on, those of us who work in research also know the challenges of data utilization. This is a big problem.

Part of the reason we believe that we are part of the solution is that CIHI is already collecting the data in a format that's at least a place to start. It doesn't include things like your dad's pacemaker data, but that data exists, and there isn't a reason the projects can't move toward that federalization of data systems with analysis and implementation.

We are a national organization with practitioners across the country. Our six subcommittees that talk about qualitative things such as pacemakers are content experts from across the country. They're in a position to look at this and ask, for instance, is the population in western Canada younger, and is that why their rate of outcomes is different? You need those content and process experts to be able to utilize the data and to say, “This then teaches us the following things that can change policy and process.”

[The Chair, Liberal, Wayne Easter]

Thank you, Mr. Cumming.

Ms. Dzerowicz, you have the last question.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you.

The question is for Dr. Sveistrup.

Long-term care beds are something that is beyond stressful for the people in my riding. We have an aging population in Canada, but more particularly in my riding, and let me tell you, they feel that we're just not ready. They are desperate for long-term care beds.

To me, it's a provincial jurisdiction. I do hear your recommendation about CIHR, and I know that you've indicated a consultation with the industry. Is that what your recommendation is in terms of how the federal government can best support this and best expedite more long-term care beds and more age-tech, as you've suggested? Could you elaborate on that and be very concrete with us? This is an area I really think we have to focus on.

[Dr. Heidi Sveistrup]

For sure. I think this is a problem across the country. Long-term care is one solution, but I think if you talk to your parents—

[Julie Dzerowicz, Liberal, Davenport, ON]

They want to stay at home.

[Dr. Heidi Sveistrup]

They want to stay at home. If we can keep people out of long-term care for six months, for a year.... In fact, we have two long-term care homes, and there's another long-term care home we've compared ourselves to. Individuals in the other long-term care home go in older, a little sicker, with much less time left at end of life. You might say that's sad, but what's actually happening is that a bit of investment upstream for that population group can keep them out of long-term care longer. They're actually staying at home longer, maybe a year or 18 months that they're spending in their community with their families, and then only going into long-term care when it's absolutely needed.

Part of that is because of technology. By developing technologies that we can use—a little like what Dr. Krahn said—we can keep people with cardiac disease at home, support them in the community and keep them out of long-term care. It doesn't mean we're not going to need more long-term care, but we can try to do some work up front.

The other thing is that we have to look at our long-term care homes. The builds that we're going to make in the future have to be completely different, net-zero, spaces that we'd want to live in, not spaces that we visit now and don't enjoy visiting. I think we have to have a thought around not only the construction of our long-term care, but also what we can do up front to keep people living where they want to live.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you.

[The Chair, Liberal, Wayne Easter]

We are on time, which is not always usual.

Thank you, everyone, for your presentations and for answering our questions. I think we had a wonderful cross-section with this panel.

With that, we'll suspend for five minutes so people can grab a bite, and we'll reconvene with the next panel.

[The Chair, Liberal, Wayne Easter]

I want to welcome all the witnesses here and thank you for coming before the committee on short notice. Just for the record, we are doing the pre-budget consultations for the 2020 budget. Also, just to inform you, for any of the organizations that submitted a brief prior to the August deadline, that submission is considered part of the record and the recommendations therein will be considered as well.

In this round we will have to keep things as tight as we can. Question period starts at two o'clock. The opposition has to find time to figure out how they're going to praise the government before they get to question period, so we need to tighten it up quite a bit.

With that we'll start with the first witness, Mr. Kobly of the Alberta Chambers of Commerce, who's coming from Edmonton, Alberta.

Welcome and thank you.

[Ken Kobly, President and Chief Executive Officer, Alberta Chambers of Commerce]

Thank you, Mr. Chair and members of the finance committee, for having me here to present to the finance committee to inform the upcoming budget. Above all, our recommendations are for the federal budget to centre on prudence, pragmatism and issues and opportunities that affect competitiveness.

As an introduction, the Alberta Chambers of Commerce is a voluntary federation of 124 community chambers in the province of Alberta, which in turn represent in excess of 25,000 businesses. Alberta's current business environment can be characterized by three things: dropping confidence, rising unemployment and insolvency, and continued uncertainty.

Under dropping business confidence, our provincial chamber network recently launched a major market research program. Here are some of the results.

Last May, 70% of more than 700 business survey respondents indicated that they were greatly or somewhat negatively impacted by federal regulations more than those of any other order of government. Six months later, our next survey received more than 1,000 responses and showed that business confidence in the long-term future of our province had dropped more than 20 points since May, with 54% of respondents having a negative outlook. Only 33% of businesses were likely to recommend setting up or investing in a business in their municipality.

As a chamber of commerce person, you know how it pains me that I have to tell you this.

Under employment, recent numbers show that Alberta's unemployment levels continue to top those of all provinces and territories outside of Atlantic Canada. In the last results, Edmonton came in at 8%, and Calgary came in fifth at 7.1%, .

In regard to issues, as a nation we have an uncompetitive regulatory and tax environment system characterized by growing vulnerability to global trade conflicts. China's blockade of canola, beef and pork exports dramatically impacted Alberta's economy and farmers, escalating fiscal vulnerability to economic slowdown and rising interest rates, yet continuing to spend. A recent Fraser Institute study noted that the federal government will have increased per person federal debt by 5.6% from 2015 to 2019, the largest increase of any government whose time in office didn't include a world war or a recession.

There is continued uncertainty around projects of national significance, such as the Teck Frontier oil sands mine project, which is projected to provide more than $70 billion in royalties and tax revenues. Growing feelings of alienation by western provinces further exacerbate the uncertainty for Alberta businesses.

The arbitrary cap of $60 per person for the fiscal stabilization program is a concern. The premier has requested the difference of what Alberta would have received over 2015-17 during the height of our economic downturn without the arbitrary cap on stabilization transfers. Transferring the $2.4 billion as requested could certainly help ease the tension in western Canada. For reference, this is only 1% to 2% of taxes that have been sent to Canada from Alberta residents over the same time period.

In our main market survey, we asked both business and public respondents about their support for turning off the taps on oil exports to B.C. if the federal and provincial governments continue to delay pipeline infrastructure projects. Of the business respondents, 66% were very or somewhat supportive, and that was even higher amongst respondents in natural resources, energy and utilities. Of the public respondents, 67% were very or somewhat supportive. It's certainly a statistically solid sample of Albertans.

Businesses will be directly affected if a number of options being considered by the Alberta government's fair deal panel are implemented, such as withdrawing from the Canada pension plan.

Here are our recommendations for the budget and policy priorities.

First, take an active role in reducing barriers to internal trade. Recent IMF estimates are that removing internal trade costs could boost the national economy by 4%, or nearly $5,700 for every family in Canada.

Our second recommendation is to modernize the tax system with a full review. We believe that a royal commission is the best approach. In the interim, until that happens, we have suggestions on other policies, such as a modernization of the tax code. For example, updating the VAT to allow companies mining lithium brine—found typically in oil and gas formations—to issue flow-through shares to raise capital would enable the growth of an estimated $85-billion industry. The lithium brine could be used for electric vehicles and electric vehicle batteries, among many other applications, to support diversification within our energy industry.

Next, commit to regulatory streamlining and reducing the overall red tape burden.

Prioritize accelerating the planning and permitting process for northern trade corridors, such as the national northern infrastructure corridor.

One last major recommendation in consideration of the budget is to, please, do no harm and avoid one-size-fits-all approaches. Apply a gaps-based approach to any national pharmacare plan.

One of the other issues that is very important in our province, and not only to home builders, is the amending of the mortgage stress test to allow for regional markets. What we're finding is that not only are home builders affected by this but so are all the attendant industries that support the home-building industry.

Mr. Chair, that is my presentation. I am prepared to answer any questions you may have.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Mr. Kobly. We'll go to those questions when we finish the panel. Thank you for appearing.

With the Canadian Juries Commission, we have Ms. Daenzer and Mr. Farrant.

Go ahead. The floor is yours.

[Mark Farrant, Founder and Chief Executive Officer, Canadian Juries Commission]

Thank you, honourable members of the finance committee, for inviting us to be here today.

My name is Mark Farrant. I'm the founder of the Canadian Juries Commission, a not-for-profit representing Canadians serving on jury duty and on coroners' inquests. I founded this organization based on my experience as a juror on a first-degree murder trial that left me shattered and living with PTSD, depression and anxiety.

I'd like to introduce my colleague and friend, Tina Daenzer, who will speak for a moment.

[Tina Daenzer, Chief Financial Officer, Canadian Juries Commission]

Twenty-five years ago, I served—sorry, this is very emotional for me—on the Paul Bernardo trial. During that trial, I was required to watch graphic video of girls being raped, tortured and begging for their lives. Each night, I would go home and replay those videos in my head. After the trial, I was diagnosed with PTSD. It was an experience that changed my life forever.

While much of this trauma has been placed inside a small box in my mind, there are times when it opens and my heart starts to palpitate, probably like right now.

Entrenched in our Canadian Charter of Rights and Freedoms, jury duty is a fundamental element within the Criminal Code of Canada. Every year, thousands of citizens are summoned to step away from their families and workplaces to serve. Jurors are addressed as officers of the court. A judge is a judge of the law and the jurors are the judges of the facts, but it's the jury that delivers the verdict.

As the cornerstone of the justice system, it's the most important civic duty asked of Canadians, yet there is a great lack of respect shown for their needs. Jurors are not compensated or protected from outside threats, and failure to show for a summons is punishable by fine or imprisonment.

First responders and jury members are bookends of the justice system. Jurors deliver the verdict for the same crimes answered by first responders and investigated by police. Exposed to the same graphic evidence of human cruelty, violence, homicide, sexual assault and unspeakable acts, they're not offered an opportunity to turn away from the evidence and, indeed, must often view it over and over again. They can't ask to turn it off. They must endure it.

This is the burden of the duty, along with the task of reaching a verdict based on facts and evidence. The judge, legal counsel, court staff, police and first responders are all afforded access to new and evolving evidence-based treatments, but the jury is not.

We now understand the toll these crimes have on those working in public safety and our courts, resulting in PTSD, depression, illness and mounting cases of suicide. We've worked hard to establish programs for first responders to support them in their healing, respecting the important work they perform in our communities.

Jurors are similarly impacted in experiencing the same trauma and the same devastating ill health impacts, but unlike their public safety counterparts, they have no professional training related to their role, no access to evidence-based treatments and no organization representative from associations that are working on their behalf. They have no voice.

I'm now going to hand it over to my partner Mark.

[Mark Farrant]

Despite its core function, jury duty has been vastly overlooked, undervalued, and underinvested in, and it has not kept pace with the modern world. Many jurors have expressed frustration at the lack of support for their service. Employers have felt inconvenienced, even suggesting employees are somehow responsible for being selected above their duties and commitment to the workplace.

Honourable members of the committee, jury duty is not a vacation. It is not time off or a break from the office. We all have a collective responsibility to support jury duty and respect the role it plays within our democracy and justice system. Through advocacy we've raised the issue of jury duty trauma, mental health concerns and the vast gaps in the system that exist today to the highest levels of public office.

The House of Commons justice and human rights committee unanimously agreed to undertake a landmark study on this issue and produced a groundbreaking report complete with 11 actionable recommendations. The Canadian Juries Commission was born of these recommendations and has gone well beyond, to address additional fundamental concerns and provide fact-based solutions to improve jury duty.

We hereby request an investment from this government to improve jury duty for all Canadians, an investment that will build confidence in the institution and a desire amongst citizens to welcome the opportunity to sit in court rather than finding a way to be excused from service. While this government has made commitments to stem firearm-related crimes, homicide, money laundering, gang-related activities, human trafficking and online child sexual exploitation, we should be reminded that jurors will be tasked with delivering a verdict in those very cases. This government's commitment to fulfill the mission of the inquiry into missing and murdered indigenous women and girls and to take actions to reduce violence against and victimization of indigenous women and girls and LGBTQ2S persons stems from the proliferation of cases that are before the courts right now, which jurors will address and be tasked with addressing through the law.

Honourable members of the committee, honouring these vital justice and public service commitments and investments demands an equal and direct investment in improving and supporting jury duty. Our 10-year plan and $20-million investment will renew Canadians' confidence in jury duty and provide the supports to ensure Canadians can perform their task and return to their lives and families proud that they served their country and the justice system.

With an investment of $20 million from the Government of Canada, the Canadian Juries Commission will be able to do the following: support jurors through partnerships with mental health professionals; provide workplace support for employees and employers; promote jury duty to Canadians; study jury duty and identify the barriers and drivers Canadians have experienced in and out of the court; create a national office that represents all regions of the country in both official languages and indigenous languages to give jurors a voice; and work to ensure a more diverse and inclusive jury pool, especially in the indigenous community.

Jury duty is a civic duty, but it's not a duty to suffer. It is our obligation to support our citizens throughout all aspects of jury duty and the responsibility of our government and the Canadian Juries Commission to see that support is provided and carried through.

Thank you for allowing us to appear before you today.

[The Chair, Liberal, Wayne Easter]

Thank you both for your presentation and for expressing your health concerns throughout, emotions included. They make a point as well.

We now go back to video conference. From Toronto we have Ms. Kennedy with Egale Canada.

[Helen Kennedy, Executive Director, Egale Canada]

Good afternoon, everybody. Thank you for the opportunity to present via video conference this afternoon.

I'm Helen Kennedy, the executive director of Egale Canada, Canada's national LGBTQI2S human rights organization. I'm going to focus my remarks this afternoon on Egale's recently released document, which I believe you all received earlier this morning. It's Egale's national LGBTQI2S action plan. There are a number of points raised in the action plan, but I'm going to refer to four recommendations for the committee here this afternoon.

Recommendation one is that the government review the recommended policy reforms in Egale's national LGBTQI2S action plan and take immediate action to amend their outdated and discriminatory policies to advance Canada's economic development.

Recommendation two is that the government mandate inclusive policies and training across each of the 12 sectors in our national LGBTQI2S action plan.

Recommendation three is that the government update its outdated data collection terminology to be more inclusive for research across the 12 priority areas in the national action plan, and engage community organizations in the research implementation, collection and reporting process.

Recommendation four is that the federal government establish an LGBTQI2S action plan implementation fund of $12 million over two years to be allocated to civil society organizations to continue this important work.

Recently Egale launched this national LGBTQI2S action plan, which addresses 12 priority areas that impact our community across Canada. Along with each priority area, there are tangible action items for the government to prioritize over the next two to four years. The recommendations contained in our plan are a result of extensive literature reviews, assessments of current policies and legislation, and community consultations. The 12 key priority areas are health care, mental health, poverty reduction, housing and homelessness, employment access, education, sport inclusion, our seniors, justice reform, intersex rights, asylum system reform and international assistance.

Egale firmly recommends that Canada invest and prioritize strategies, programs and polices that ensure inclusion and human rights for sexual orientation, gender identity and gender expression minorities in this budget. The following brief focuses on these key investments. In moving forward with our action plan recommendations, not only will the government be acknowledging the work that civil society organizations are currently undertaking but it will also be maintaining its position as a global leader and partner in advancing LGBTQI2S human rights.

Within the plan there are core areas where the government can begin to advance specific and measurable actions to drive inclusion and support civil society in advancing LGBTQI2S inclusion in Canada. LGBTQI2S communities experience the largest gaps in housing access and income security. Twenty to 45 per cent of Canada's homeless youth population identify as members of the LGBTQI2S community. LGBTQI2S Canadians experience stigma and discrimination within the health care system, and 27 per cent of transgender patients have been refused care. LGBTQI2S people continue to experience discrimination in the workplace or the workforce, and 49 per cent of our trans Canadians earn less than $15,000 a year, and that is if they're fortunate enough to actually have employment.

There are a number of policies and legislative reforms across the 12 sectors, on which the federal government can take immediate action to advance social inclusion. Priorities should be given to intersex human rights, federal regulations on conversion therapy, and regulations around blood donation for men who have sex with men and for trans people.

Gender-based and LGBTQI2S discrimination in social institutions matters for economic growth. Previous empirical studies have demonstrated that gender inequality in outcomes is bad for growth, especially when it comes to gender disparities in education and labour. A number of policies and regulations are driving these results. The most pertinent are discriminatory laws, policies and biases that perpetuate stereotypes and mindsets and undermine LGBTQI2S inclusion efforts. By shaping and influencing norms of acceptable behaviour and power relations between the sexes, discriminatory social institutions are additional key issues for economic growth. By dismantling the discriminatory policies laid out in our action plan, the government will be advancing inclusion on a foundational level across our society and culture, resulting in higher economic returns.

Establishing more inclusive policies and mandating inclusion training across the 12 sectors in our plan will help to both increase LGBTQI2S inclusion in the workforce and remove some of the barriers to access that LGBTQI2S people face when seeking out support services, whether it be physical health, mental health or employment. The World Bank released a case study in 2012 on LGBTQ discrimination. It showed that the cost of discrimination across health and labour alone is as high as 1.7% of the annual GDP. LGBTQI2S people in Canada are vital contributors to our economic growth. The LGBTQI2S market in Canada is between $90 billion to $100 billion, or about 7.2% of Canada’s GDP. Workplaces that are supportive of LGBTQI2S employees witness a 22% increase in team productivity and represent a 17% increase in LGBTQI2S employee retention. By supporting healthy and safe workplaces for members of the LGBTQI2S community, Canada’s economy has an opportunity to increase twofold, as LGBTQI2S people also become more adequately supported out of poverty.

This same example applies when looking at access to health care—a major contributor to potential labour loss and added health costs down the road. The estimated economic burdens of mental illness and substance use across Canada annually are $51 billion and $38.4 billion respectively. Overall, health disparities for LGB people in Canada, not including trans, are calculated at an annual loss of $500 million to $2.3 billion. When considering costs related to health care, criminal justice and lost productivity, the cost of excluding LGBTQI2S people becomes insurmountable. The government can take immediate action on developing inclusive policies to help offset this cost burden through implementing the recommendations laid out in Egale’s national LGBTQI2S action plan.

[The Chair, Liberal, Wayne Easter]

I hate to interrupt, but could you wrap it up fairly quickly?

[Helen Kennedy]

I'll wrap it up.

In her recent mandate letter, Minister Chagger was tasked by the PMO to “consult civil society representatives of the LGBTQ2 communities to lay the groundwork” for an action plan. Egale’s action plan not only aligns with the priorities laid out in Minister Chagger's recent mandate letter, but it also identifies additional opportunities for the government to work on. Through the establishment of an LGBTQI2S action plan implementation fund, your government will be effectively engaging with civil society organizations by supporting the community to advance and prioritize the work that is needed to build a more inclusive Canada.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you very much.

We have received that document. Members will get a copy as soon as we complete translation, which will be soon.

Mr. Lamy from Intact Financial Corporation, please go ahead.

[Mathieu Lamy, Chief Operating Officer, Intact Financial Corporation]

Good afternoon. Thank you for the opportunity to be here today. My name is Mathieu Lamy. I'm executive vice-president and COO of Intact Financial Corporation.

Intact is the largest provider of property and casualty insurance in Canada and is a leading provider of specialty insurance in North America. We employ almost 16,000 people, 15,000 of whom are based across all provinces of Canada. Just over 10 years ago, we brought the leadership of the property and casualty insurance industry back to Canada, establishing Intact Financial Corporation as an independent, widely held company. Today we insure one in five Canadians and one in four small and medium-sized businesses in this country. Every year we help over half a million Canadians get back on track through our claims services.

Intact values the relationship we have with all levels of government. We have many shared interests in a changing world. Today I would like to focus my remarks on three ways in which we can protect and grow Canada's economic competitiveness: first, by preparing our workforce for the future and making Canada a destination for top talent; second, by investing in climate resilience; and third, by ensuring financial resilience in the face of a devastating earthquake.

As you know, our workforce must absolutely be prepared for the future, so that we can remain economically competitive. Better access to training will provide Canadian workers with the skills they need to adapt and succeed.

Over the next 10 years, we want to be a global benchmark in the area of artificial intelligence in insurance. Intact was among the first to use artificial intelligence. Since 2016, our data lab team has increased from about five experts to more than 160 employees today, and we now have over 60 production models.

We understood early that, by using the power of data, we could create value and increase the quality of life of our clients and our employees.

It is important to point out that the efficiency gains we have made through artificial intelligence did not come at the expense or to the detriment of jobs. We have saved money by using those new systems, but we have also continued to invest in our people, so that they would have access to training and opportunities to acquire necessary new skills.

Talent is rare, and expertise in insurance is even rarer. Government policies, like the Canada training benefit, that provide credits for training and income assistance can help in that area.

We, at Intact, will continue to invest in Canada's artificial intelligence ecosystem by recruiting talented individuals and establishing partnerships with universities, such as Université Laval, in Quebec City, the Vector Institute, in Toronto, and the Institute for Data Valorization, or IVADO, in Montreal.

Since it is highly likely that governments' demand for artificial intelligence services will continue to grow, it is critical that governments also invest in artificial intelligence ecosystems in Canada. Those are real talent pipelines for the private and public sectors.

On Monday the committee heard from the Insurance Bureau of Canada on the importance of protecting Canadians from the escalating risk of climate change and such extreme weather events as floods and fires. At Intact we have helped our customers deal with the impact of climate change for some time. The 4,000 individuals who work in our claims operations have been on the front lines of this. In recent years, the majority of home insurance claims have been related to severe or extreme weather. The economic impact of these events on communities cannot be overstated. For example, the Calgary and southern Alberta floods in 2013 cut $750 million from the GDP and $320 million from the personal disposable income of Albertans. For every one dollar of insurable losses, there are three or four dollars of uninsurable losses absorbed by government, businesses and ordinary citizens.

Intact has been investing in climate change adaptation in Canada for the past 10 years, and we will continue to do so. We've established the Intact centre on climate adaptation at the University of Waterloo, an applied research centre dedicated to helping cope with the effects of extreme weather and climate change.

In its platform, the government announced several important measures to help prepare our communities for climate risks and realities, including the development of a low-cost national flood insurance program. While this is a large, multi-year undertaking, we are hopeful that the government can take some immediate steps to help protect Canadians, such as working with provinces and territories to complete all the flood maps in Canada, developing a national action plan to assist homeowners with potential relocation for those at the highest risk of repeat flooding, and investing in natural infrastructure solutions like grasslands and wetlands, which act to reduce the economic impact of floods.

Last, climate change is not the only obstacle to our economic resilience. We have also been working with various stakeholders, including the Department of Finance, on addressing the financial and systemic risks surrounding the very real possibility of a major earthquake in Canada.

Canada is fortunate to have a solid and stable insurance industry that is highly regulated and well capitalized. However, when you consider that Canada has close to 40% of its population and economic activity directly exposed to severe earthquake risk, particularly in Vancouver and along the Quebec, Montreal and Ottawa corridor, a major earthquake in a highly populated area remains one of the most destructive natural disasters that our country could experience. Despite the significant risk, Canada remains one of the few countries where the government offers no financial protection related to earthquakes.

While insurers have been increasing their capitalization for major earthquakes, insurance alone will not be enough to pay for the damage. Canada's insurance industry has warned that a catastrophic earthquake could overwhelm its ability to meet claims, deepening the quake's economic aftershocks. This is why we continue to call on the government to develop a federal emergency earthquake backstop, to ensure that we can continue to protect Canadians' households while ensuring the solvency of our industry.

In conclusion, the government and the insurance industry have an important role to play in these issues to help Canadians. Preparing our workforce for the future, investing in making our communities and economy resilient to the impact of climate, and ensuring that our country can be resilient in the face of a devastating earthquake are important issues.

Intact is committed to collaboration and we believe that there is a lot that governments can do to build a more resilient society working with our industry.

I would be pleased to answer any questions. Thank you very much for your time.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Mathieu.

With JDRF Canada, we have Mr. Prowten, president and CEO, and Ms. Sullivan.

[Dave Prowten, President and Chief Executive Officer, JDRF Canada]

Thank you very much for the opportunity to present today.

JDRF is the leading charitable funder of research to cure and prevent type 1 diabetes. I am joined today by Angie Sullivan, who is a mother of a child with type 1 diabetes.

Until 1921, when Canadians Sir Frederick Banting and Charles Best discovered insulin, type 1 diabetes was a death sentence. Thanks to their landmark discovery, the 300,000 Canadians living with type 1 diabetes today not only survive but thrive. On the eve of the 100-year anniversary of insulin's discovery, we're here to offer recommendations to improve the lives of Canadians who live with type 1 diabetes today.

Type 1 diabetes remains a daily struggle for Canadians. It's a relentless, 24-hour-a-day, 7-day-a-week disease, requiring constant monitoring and attention. Even with the most advanced glucose-monitoring technology now available, there's a constant risk of dangerously high blood sugar, leading to costly long-term complications, and life-threatening low blood sugar, which may lead to confusion, coma and even death.

To improve the lives of Canadians with type 1 diabetes, we have four recommendations for the committee. Our first recommendation is that the government should support the Canadian Institutes of Health Research's “100 years of insulin” proposal. This proposal would leverage nearly $50 million in research commitments by CIHR and its partners, including JDRF, with $50 million in additional funding to create a $100 million fund. To mark 100 years with $100 million would be a timely tribute to Banting and Best, accelerate Canadian discoveries to defeat diabetes and certainly keep our leadership position in this field of research.

As recommended by the Standing Committee on Health, our standing recommendation is that Canada implement a national diabetes strategy, called Diabetes 360°, with specific outcomes for type 1 diabetes, including new funding for research in areas such as prevention. An investment of $150 million over seven years will put us on the path to ending the burden of diabetes for Canadians and will save billions in downstream health care costs.

Diabetes is a costly disease, not only for our health care system but for individuals and families. Depending on which province you live in and what type of benefits package you have through your employer, Canadians with diabetes may be out of pocket as much as $15,000 annually. Our third recommendation, fitting for the hundredth anniversary of the discovery by Banting and Best, is that the various types of insulin used by Canadians today should be included in the formulary under the national pharmacare program. JDRF has a concern that the emergency medicines list referenced by the advisory council on the implementation of national pharmacare does not contain the types of long-lasting and fast-acting insulins used by Canadians today.

The final recommendation we would like to make this year is to request that the government permanently fix the disability tax credit, or the DTC, so that it actually works for Canadians. JDRF has advocated in the past for reducing the number of hours needed, from 14 to 10, to qualify for the DTC. A similar approach was proposed by Mr. Kmiec in the fairness for Canadians with disabilities act that he introduced last session. Recently, the disability advisory committee appointed by the Minister of National Revenue proposed an even better solution: that qualification be automatic for all Canadians who need life-sustaining therapy, including insulin, which is certainly a life-sustaining therapy.

To speak more on the impact of the disability tax credit, I will now turn things over to Angie.