Finance Committee on Nov. 5th, 2024

[Clayton Campbell]

—that the current government in the province of Ontario is the most pro-police, pro-public safety government that I've seen in my lifetime. I know that a list of recommendations were just sent to the federal government to consider in regard to bail.

I can only speak to what I'm seeing on the ground with my members who can't come here and speak. I can speak on their behalf. Something needs to be done, because the violence is out of control. We need to keep these repeat violent offenders in custody.

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

I would like to get on the record, Chair, in my remaining time, my thanks for the efforts of the York Regional Police service and all the frontline officers. I fully support providing the police with all the tools they need, and I know that city councillors across York region do.

Gun offences and weapons violations in the city of Vaughan today are down 23%. Sexual violations, year to date, are down almost 30%. Thefts of motor vehicles in the city of Vaughan are down 31%.

Now I'm reading the statistics from York Regional Police. Residential break and enters are down 6%. Commercial break and enters are down 11%. Robbery is down 18%.

In the city of Vaughan, going back to 2017, homicides have always ranged from two to six. Homicides, the most heinous of crimes, have gone from two to six. We're at five this year; unfortunately, there have been some occurrences, but never more and never less. Our population has increased from about 300,000 to 350,000. It's an incredibly safe city and an incredibly safe region.

Yes, bad things happen. The police need their tools. We can always do better. I want to give my shout-out to the York Regional Police for all the work they do to keep the residents in Vaughan and across York region safe.

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Sorbara. That is our time.

Now we go to MP Ste-Marie, please.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

It will be Mrs. DeBellefeuille, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

I'm sorry.

You have the floor, Mrs. DeBellefeuille.

[Claude DeBellefeuille, Bloc, Salaberry—Suroît, QC]

Thank you, Mr. Chair. We're having fun at the Standing Committee on Finance.

Mr. Lambert, what would you say to Ms. Bendayan, the parliamentary secretary to the Minister of Finance, if you had a minute and a half to try to convince her of a measure that absolutely must be added to the next economic statement or the next budget so your industry can continue to develop and thrive?

[Vincent Lambert]

Thank you for your question, Mrs. DeBellefeuille. I'll let my colleague answer it.

[Nicolas Bériault]

Thank you, Mrs. DeBellefeuille.

Thank you, Ms. Bendayan.

I want to start by saying that the 300 members of the spirits industry in Canada are, at their core, passionate about their industry. They are being choked right now though by excessive taxation.

In Canada, taxes on spirits are 1,300% higher than in the United States, which completely prevents microdistilleries from being competitive, both in our local market and in foreign markets. Locally, it doesn't allow us to pursue our ambitions and invest in new technologies that would make us more productive. We are also unable to generate the liquidity needed to break into new international markets, as we are struggling to survive in our own country.

In addition, 90% of the spirits consumed in Canada are not produced by Canadian businesses. It's completely out of sync with today's reality. Why is that? It's because we can't compete, because prices are too high as a result of Canadian taxes.

It would be fairly simple to implement tax relief measures quite quickly. That would give 300 dynamic start-ups in Canada some breathing room. In addition, it would make it possible to catch up with the wine industry and the beer industry, which have received relief in recent years. The spirits industry is a bit out of step, historically. There was the wine boom, and then the beer boom. Now, spirits are flourishing. We think it's our turn to get that relief.

I would conclude by saying that all of this would allow us to have more high-quality jobs in our businesses, hire qualified staff, automate our production and, as a result, improve our competitiveness.

[The Chair, Liberal, Peter Fonseca]

Thank you, Mrs. DeBellefeuille.

[Rachel Bendayan, Liberal, Outremont, QC]

I have a point of order, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

You have a point of order, Ms. Bendayan.

[Rachel Bendayan, Liberal, Outremont, QC]

Yes, just before the meeting I asked the representatives of the Union québécoise des microdistilleries if they had submitted a pre-budget request. I understand they were going to do that, and I would also like it to be submitted to the Standing Committee on Finance.

[Nicolas Bériault]

Yes.

[Vincent Lambert]

It will be done.

[The Chair, Liberal, Peter Fonseca]

You can send that to the clerk, please.

Now we're going to hear from MP Davies, please.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you.

Ms. Cobden, in 2018, former president Donald Trump imposed tariffs of 25% on Canadian steel and 10% on aluminum. In your view, were those tariffs warranted?

[Catherine Cobden]

Those tariffs were very difficult for our industry.

[Don Davies, NDP, Vancouver Kingsway, BC]

No, I asked if they were warranted. Were they justified?

[Catherine Cobden]

I don't believe they were warranted in the least.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you.

Those tariffs led to retaliatory measures by Canada. Of course, they strained trade relations with Canada until they were lifted in 2019. In 2020, a WTO panel found that the U.S. section 301 tariffs on imports from China violated the United States' obligations under the GATT.

In 2022, a WTO panel ruled that the U.S. section 232 tariffs on steel and aluminum violated global trade rules. That's three times—2018, 2020, and 2022—in six years that the United States tried to impose tariffs on steel and aluminum—in that case on Canada and China—and all three times these were ruled illegal. However, you have said, I think, that you want to integrate our position, and I think your organization has called for a 25% tariff on all melt and pour Chinese steel entering Canada.

I'm just curious. Obviously, we don't want to get into a trade war, and when tariffs start flying, retaliation occurs. I met with the canola growers of Canada this morning who have already been hit. Shouldn't we adopt a procedure where, if people think there's dumping or there are violations of trade rules, they go to the WTO and make their case first, instead of imposing tariffs that, I can tell you have, in the last six years, as done illegally by United States every two years, caused all sorts of economic disruption, including to Canada? What's your view on that?

[Catherine Cobden]

Thank you very much for the question.

I must confess that we are absolutely standing with the canola growers on the devastating impact of China's activities. The steel sector, too, understands the direct implications of what unfair Chinese activities do to jobs in this country. We stand with them, so I'm very glad you're meeting with them. That's point number one.

Point number two is that the devastating impact I'm describing must be addressed. The first thing would be to use the trade remedy system. The Canadian steel industry, at great expense, has taken out case after case against China, and yet their imports into our country continue to grow and put our jobs at risk. This is a devastating situation. We are losing market share.

We felt those tariffs were very important to address, which is why we were so happy your leader was supportive of our tariffs.

[Don Davies, NDP, Vancouver Kingsway, BC]

Were your cases successful?

[Catherine Cobden]

Our cases were absolutely successful. However, what was necessary.... They were not fast enough. As you heard, we've seen China grow, despite the cases, and effectively take our market share.

We need to level the playing field and to urgently respond. There are two factors. It's not just about alignment with the United States; it's also about protecting our domestic jobs and industries.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you. I'm sorry that I don't have more time to give you.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Davies.

Now we're going to MP Chambers.