Finance Committee on Nov. 14th, 2023

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Welcome, everybody. This is meeting number 117 of the Standing Committee on Finance. We are meeting on our pre-budget consultations in advance of the 2024 budget.

For everybody's understanding, we have had a record number of submissions to our committee for this pre-budget consultation. Over 850 submissions from coast to coast to coast have come in, which is tremendous.

As you may or may not know, this committee has not travelled over the last five years due to the pandemic and other issues, but we're able now to travel across the country. We started in the Atlantic. We were in every Atlantic province. Yesterday, we were in Quebec City, Quebec, and today we are here in Ontario's capital, Toronto. We will continue to make our way across the country to Vancouver before members head back to their homes.

We have a whole team working with us. We have our clerk, Alexandre Roger. We have analysts, interpreters and technicians, etc., to make this all happen. All of this will be captured and will be part of our report that we will then submit to the House of Commons and to the finance minister. We are looking forward to hearing from you.

We are also a pioneering committee. We have something called an “open mike”. Because we've had so many requests to appear before our committee but cannot accommodate everybody at the table, we have an opportunity to allow individuals and organizations to make their deputation, their statement, before our committee. You'll have about a minute, but take your time. We have six people who will be doing this now as an open mike.

We're going to ask that you take your seat at number 17. You will make your statement at that mike. I will ask our clerk to read out the name of the individual or the organization before they make their statement.

We're going to get started now.

[The Clerk of the Committee, Mr. Alexandre Roger]

We'll call Ms. Elizabeth Brown to come to seat number 17.

Take your time, please.

[Elizabeth Brown, As an Individual]

My name is Elizabeth Brown. I am the director of Single Seniors for Tax Fairness.

In our 2024 budget submission, we discussed the unfair taxation of single seniors and the inability for a single senior to transfer RRSP and RRIF assets to a beneficiary of choice without significant taxation.

Marital status is one of the prohibited grounds for discrimination under the Canadian Human Rights Act. We show that single seniors pay proportionately more in income tax than couples with the same combined total income. On $50,000, for example, a single senior will pay five and a half times the taxes of a couple. At other levels of income, they are more likely to exceed the thresholds for the clawbacks of benefits, such as old age security.

One of our supporters was surprised to see her taxes double when her spouse died. Others say the big-ticket items, such as mortgages, rent, property taxes, home and automobile repairs and gas, cost them the same as those of couples.

Please implement recommendation 115 from the finance committee's report, “Responding to the Challenges of our Time”, and please implement the recommendations from our current 2024 submission.

Please leave alone the benefits that couples receive and focus on greater equality for single seniors. Show us that Canada's 2.8 million single seniors matter to you.

Thank you.

[The Chair, Liberal, Peter Fonseca]

That was excellent.

Thank you, Ms. Brown, for your statement and your testimony.

That has been captured by our analysts.

[The Clerk]

Thank you, Ms. Brown.

We will go to Jennifer Gerdt, please.

[Jennifer Gerdt, As an Individual]

Good morning.

I hope everyone enjoyed their breakfast. If you happen to have a food allergy, your decision of what to eat today would have been a life-or-death decision. With this medical condition, constant vigilance is required to prevent a severe allergic reaction and a trip to the hospital.

My name is Jennifer Gerdt. I'm the executive director of Food Allergy Canada, and I'm here representing the three million Canadians who live with food allergies.

The public and private burden of food allergy is enormous, with three million Canadians, of which 600,000 are children, and 50% of households impacted by this condition. It has an overall economic impact of $1.3 billion, but there is new and emerging research that is charting a path of hope for this community.

Food Allergy Canada has detailed plans to act on this knowledge. You will find them in the Food Allergy Canada national food allergy action plan in front of you.

We've put in a budget submission in 2024 to request $4.5 million in funding to initiate practical evidence-based measures that further food allergy education, improve treatment access, close gaps in ingredient labelling and take steps to prevent food allergies. This will reduce the incidence and the risk associated with food allergy, improve lives and alleviate the societal burden of this condition.

For more details on our written submission, please take a look at what we've submitted. I would be happy to answer any questions.

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you to Food Allergy Canada for your submission and your testimony.

[The Clerk]

Thank you.

We will go to Kelly Gorman, please.

[Kelly Gorman, As an Individual]

Good morning.

My name is Kelly Gorman, and I'm with the Arthritis Society Canada.

There are six million Canadians living with arthritis today. That's one in five. Arthritis is the most common chronic disease in Canada, and the leading cause of joint replacement surgery.

Arthritis affects all ages. Over half of those living with arthritis are under the age of 65. It is the leading cause of disability and workplace limitations. There is no cure.

In October, we released our report card on the state of arthritis in Canada, and C was the highest grade awarded to a province or territory. Canada has an arthritis problem, and it needs attention.

We believe the federal government has a role to play. Specifically, arthritis research is underfunded. Only four dollars per person with arthritis is invested in research compared to $12 for a comparable chronic disease. We believe in and support the request by Research Canada and Health Charities Coalition to increase the base funding for the granting councils, specifically the Canadian Institutes of Health Research.

Arthritis data is not sufficient. The government should continue to accelerate the development of a pan-Canadian health data strategy, and we urgently need better health data regarding arthritis, which can be collected through StatCan and PHAC.

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you, Ms. Gorman.

Thank you for your advocacy on arthritis.

[The Clerk]

Thank you.

We will go to Justine Kintanar from COSTI.

[Justine Kintanar, As an Individual]

Good morning.

I'm Justine Kintanar. I'm the associate director of marketing and communications with COSTI. I'm here on behalf of our CEO, Samina Sami.

COSTI commends the federal government's commitment to building an inclusive and prosperous Canada and an immigration strategy that both contributes to a resilient and prosperous country and responds to humanitarian crises. However, we also face challenges such as housing, skills gaps and barriers to opportunities for newcomers, refugees and marginalized groups.

To address these challenges, Canada's next budget must invest in these key areas.

First is continued investment in a sustainable settlement and resettlement services model to ensure that increasing immigration levels come with the infrastructure to support economic and social prosperity for everyone.

Second is affordable housing. Provide additional funding to provinces and municipalities in key regions to integrate housing and immigration policies and programs and invest in reception houses that provide cost-effective, long-term solutions for temporary accommodation.

Third is skills training and employment. Enhance the skills and employability of newcomers and marginalized groups by investing in agencies that offer tailored and accessible services that accelerate employment and reduce the systemic barriers to entering the labour market.

Last is inclusion. Promote social inclusion and welcoming societies. Best practice research tells us that we must create welcoming societies by design and policy to build successful integration and settlement.

By investing in these areas, Canada will create a more inclusive and prosperous nation with equitable opportunities for all our residents to succeed.

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you, Ms. Kintanar.

Thank you to COSTI for the vital work that you do in our community.

[The Clerk]

Thank you.

We have three individuals for the Terry Fox Humanitarian Award program. We have Ms. Erika Campbell, Ms. Malena Mokhovikova and Ms. Philomena Szabo-Bonis.

You may come to the table and share the mike between the three of you for one minute.

[Erika Campbell, As an Individual]

Hello, everyone.

My name is Erika Campbell. I'm a constituent of Hamilton Centre, and I'm here on behalf of the Terry Fox Humanitarian Award program.

The program is seeking $20 million from the federal budget to ensure it's able to provide adequate funds to post-secondary students to cover the cost of tuition and living expenses while supporting them to continue their humanitarian work.

I received the award in 2016 during my undergraduate degree based on my advocacy surrounding mental health awareness and sexual violence prevention. The award enabled me to continue my humanitarian projects during my degree, while becoming the first person in my family to obtain a post-secondary education. In a few months, I will become the first person in my family to receive a Ph.D.

I grew up with complex health issues, which burdened my family and made paying for university, among other expenses, a concern. This award alleviated that concern through my ability to give back to my community and directly contributed to my academic success, which I'm carrying out today.

I urge you to support the Terry Fox Humanitarian Award program.

Thank you so much.

[The Chair, Liberal, Peter Fonseca]

Thank you, Ms. Campbell, and congratulations on all of the success you've had and all of your achievements on the things you've overcome. Terry Fox is a hero to all Canadians. We thank you for your testimony and your statement.

[The Clerk]

Thank you.

We have Insiya Mankani for the Action Canada Sexual Health & Rights group.

[Insiya Mankani, As an Individual]

Good morning, Mr. Chair and honourable members of Parliament. Thank you for the opportunity to speak before this committee today.

My name is Insiya Mankani. I am the public affairs officer at Action Canada. I am also a 29-year-old based in Ontario who is directly affected by the issue I would like to speak about today.

I have come forward today to share with you why I feel there is an urgent need for Canada to invest in the 2024 federal budget in a universal free contraception plan. Despite a long-standing history of universal health care in Canada, nearly half of all pregnancies remain unintended, and they can have serious and life-altering affects, including a higher incidence of negative health outcomes for both the mothers and the children.

In a time when people are dealing with everyday affordability crises, the unexpected addition of a family member can have huge impacts. Right now, the cost of preventing this from happening through the use of effective contraception is also out of reach for many people. Without private health insurance, the cost of an intrauterine device can be up to $400. Overall, people in Canada continue to use the least effective methods of contraception simply because they cost the least. Without a national drug care plan in place, many people fall through the cracks when it comes to contraception coverage. This is why the government must commit now to investing in the tools that people need to plan and manage their reproductive choices.

A universal free contraception plan would have clear public health impacts and, over time, would be a significant cost-saving measure for the government. The annual cost of investing in universal contraception coverage is estimated to be between $157 million and $500 million per year, but evidence from previous programs implemented in Europe and across the United States has demonstrated an overall positive return on investment, with the investment in a universal program becoming cost-neutral within two years of the onset of the program.

Equitable access to contraception is a human right, and it is also a smart policy choice that helps people, the economy and the health care system. I hope you strongly consider this opportunity for an investment in universal cost coverage for contraception in the 2024 federal budget.

[The Chair, Liberal, Peter Fonseca]

Thank you, Ms. Mankani, and thank you for your advocacy.

[The Clerk]

Our last person is J.P. Boutros, please.

[J.P. Boutros, As an Individual]

Good morning, members of the committee. Thank you very much. I thank the committee for its thorough consultation.

I'm a consultant for the Canadian Mortgage Brokers Association-National, which, in turn, represents tens of thousands, but I'm here as an individual who has been advocating for the mortgage-broking industry for over five years.

I ask that you please insist on a very simple and quick fix for the government and for Canadians who need a mortgage: that the Minister of Finance and OSFI put into effect the stress test changes announced in February 2020. The then minister of finance Bill Morneau announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the “stress test”. They were expected to come into effect on April 6, 2020.

That new benchmark rate was to be the weekly median five-year fixed insured mortgage rate for mortgage-insured applications plus 2%. I ask that Minister Freeland implement this as soon as possible and that OSFI harmonize this change to guideline B-20 for uninsured mortgages. The failure to do so—what was announced by Morneau before the Bank of Canada began to raise interest rates in March 2022—led to a tremendous number of Canadians getting variable rate mortgages, because the existing stress test rule made that the logical financial choice for many, and that, in retrospect, was wrong. My community advocated for this repeatedly prior to the 2021 to 2023 mortgage rate hikes, whose consequences are now manifesting themselves.

I also agree with my colleagues in this sector who have advocated for eliminating mortgage stress-testing for excellent borrowers who will switch to lenders and don't need to borrow new money. The current rules remain anti-competitive and anti-consumer.

For now, I will leave it for others to advocate on these matters. If there are any questions, I welcome them.

Thank you very much.

[The Chair, Liberal, Peter Fonseca]

Thank you very much for your deputation.

The members know this, but for witnesses, we have another study going on in our committee around housing in Canada. Mortgages have come up quite a bit.

Thank you for what you presented here today. We appreciate it.

I think all those who came to the open mike deserve a round of applause from everybody.

[Voices]

Hear, hear!

[The Chair, Liberal, Peter Fonseca]

Amazing job.

Now we will introduce the witnesses who are with us today at the table for our pre-budget consultation.

As an individual, we have Mr. Joseph Polito with us. From the Association québécoise de l'industrie du disque, du spectacle et de la vidéo, we have president and chief executive officer, Andrew Cash, as well as executive director Eve Paré, and the director of public affairs, Simon Claus. From Butler Mortgage—we were just speaking about mortgages—we have Ron Butler, who is a mortgage broker. From the Canadian Gas Association, we have vice-president of strategy and delivery, Paul Cheliak with us. From the City of London, we have the city manager, Lynne Livingstone, as well as the executive director for London InterCommunity Health Centre, Scott Courtice.

Each of you will have an opportunity to provide a five-minute opening statement to the committee members, and then we will get into our question time.

We're starting with Joseph Polito, please.

[Joseph Polito, As an Individual]

Thank you to all of you for this invitation.

The following are strategies to end our musical chairs housing market by increasing construction and improving affordability. Part (a) relates to The Wall Street Journal, Adam Smith and two promising options.

The Wall Street Journal has a video—