Finance Committee on May 5th, 2022

[Jennifer Miller]

Mr. Chair, the consultations will be forward-looking consultations, and thus on the broader matter that was outlined in the Prime Minister's mandate letter to the Minister of Innovation, Science and Industry. We'll be looking at some of the broader questions related to the function of the Competition Act in today's digital society and economy, as opposed to changes in the BIA.

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much for that answer.

Just for full disclosure, I asked the Deputy Prime Minister to review the Competition Act, so it was welcome to see some of these discussions in the budget, and I look forward to the consultation.

Where I think I'm having a bit of challenge is that we had consultations with industry before some of these changes were proposed. Now we have proposed changes in a budget bill that is going to be rushed through Parliament, and now industry does not appear to have a consultation period on these proposed draft legislative changes.

Mr. Chair, I would ask, through you and the clerk, given that these changes are significant and that we also have changes to the CBCA, that we invite the minister to appear. It's probably unfair to ask some of the officials the questions that we have, but the Minister of Industry should come to this committee. These are very significant changes.

Frankly, if industry's not provided the opportunity to consult on these proposed changes, I think we'll have a problem passing this legislation at the speed the government would like us to pass it, because I think we otherwise should be getting this committee doing the consultations that the government has failed to do on the proposed changes.

That is something I think we need to be very careful about. I'm open to some suggestions, like bifurcating or separating the bill, so that we can do the proper consultations and add these into the budget bill changes that have been reviewed by industry, and add to the budget bill in the fall. Maybe you'll be open to that, but I think we'd be very interested to hear from industry on these proposed changes at this committee.

I have some additional technical questions. I won't bore the committee with reading them into the record now, but I will submit them through you so that we can get them answered.

My request to our Department of Industry officials, who I think have been great today with giving us some clear answers, is that we need answers to these questions before our industry partners come to testify before committee so that we can test those answers with our industry partners. That will be very important for this committee.

Perhaps, in my remaining time, I'll ask for a clarification. In February, there was a notice provided about changing the Excise Tax Act with respect to digital asset companies and miners. I did not see changes in the budget bill with respect to input prices. Can I just get a clarification that any changes are not in this budget bill, but will come in the future, or is there also planned consultation with industry on those changes? It's probably a question for the Department of Finance.

Mr. Chair, I'd happy to have the Finance officials follow up in writing, and I can also follow up with the parliamentary secretary..

[The Chair, Liberal, Peter Fonseca]

Okay, so that's being directed to Finance, but it could be any one of the officials who—

[Adam Chambers, Conservative, Simcoe North, ON]

Whoever has the appropriate authority.... I believe that would be Finance on the Excise Tax Act changes.

We'll leave it there and, Mr. Chair, I'll yield to you my last 10 seconds. I know you've been generous in previous rounds. Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Chambers.

This is our final question. We'll go to the Liberals and MP MacDonald for five minutes.

[Heath MacDonald, Liberal, Malpeque, PE]

Chair, I'm going to follow up on Mr. Chambers' summary, but I'll take an approach that's a little different.

Obviously the officials talked a bit about the consultations, but here's what I would like to know from the officials, and maybe Ms. Miller, if I remember correctly: How will the amendments benefit businesses, workers and consumers?

[Jennifer Miller]

Thank you very much for the question, Mr. Chair, I would be happy to answer these questions as they pertain to the Competition Act.

Generally speaking, the Competition Act is, as some of you probably are familiar with, a law of general application that really aims to encourage a competitive economy where the players are acting in predictable ways that encourage competition. Competition of course benefits consumers in a variety of ways. It produces certainly lower prices often when there is strong competition in the sector, and it also leads to competitive intensity and innovation between competitors, improving the services and the goods offered to consumers in terms of looking at prices and also at the quality of offerings.

When it comes to benefits to workers, of course, again, a strong Competition Act, including some of the amendments that are being proposed around looking at stronger conditions around wage-fixing and “no poach” agreements and that create a more competitive marketplace for the labour of those workers as well. It not only offers them ideally more job opportunities in more successful and growing companies, but it particularly offers them some protections through these specific amendments as well.

[Heath MacDonald, Liberal, Malpeque, PE]

Further on that, are there best practices that you're looking at relevant to this, along with the consultations you're providing?

[Jennifer Miller]

Certainly, Mr. Chair, and, once again, I would be happy to clarify that with respect to the Competition Act.

Part of the work towards developing any potential set of amendments really does look at what's going on internationally and at ways in which Canada's current system compares. It's not always the case that another country's system is in fact the best answer for Canada.

It's important to be informed by these systems, but ultimately, the Competition Act and its administration in Canada depend on cases that have been previously investigated and ruled on. They depend on the behaviour of players in Canada. They depend on the particular qualities of the market or regional economy. Therefore, the amendments always do have to be specific to the Canadian context but certainly informed by international best practices.

[Heath MacDonald, Liberal, Malpeque, PE]

Is there consideration for further reforms to the Competition Act as we move forward?

[Jennifer Miller]

Certainly, Mr. Chair, and again, I would be happy to answer that question.

The government has committed to undertaking further work to consider the place of the Competition Act and what further reforms might be considered. That will be the subject of further engagement and consultation in the coming months, as there is a commitment for our minister in his mandate letter accordingly.

[Heath MacDonald, Liberal, Malpeque, PE]

Thank you.

I want to go back to the $2 billion in health care funding. I know that my province is receiving about $8.5 million. I guess I want to follow up on Mr. Ste-Marie's relevant question.

There have always been issues and discussions when funding is allocated on what that funding can be used for. Are there specific criteria around this that ensure the funding allocated to each province is going to be used for its purpose?

[Galen Countryman]

Thank you for the question.

Just to clarify, is this with respect to division 6 and the $2 billion for the one-time top-up for the Canada health transfer?

[Heath MacDonald, Liberal, Malpeque, PE]

Yes.

[Galen Countryman]

The funding for that is being transferred to each province and territory. The purpose of the funding is to support them in reducing backlogs created by the COVID-19 pandemic.

It is the responsibility of each province that has its own ways to allocate that funding to address that need. It will be up to P.E.I. and other jurisdictions to do so.

[Heath MacDonald, Liberal, Malpeque, PE]

Thank you.

I want to move back to a couple of questions or possibly one if—

Oh. I guess I can't.

[Voices]

Oh, oh!

[Heath MacDonald, Liberal, Malpeque, PE]

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you very much, MP MacDonald.

[Heath MacDonald, Liberal, Malpeque, PE]

I was on a roll, Chair.

[The Chair, Liberal, Peter Fonseca]

You were on a roll.

We want to thank all of our officials who came before us today to answer the many questions, and to those that they will follow-up with for the members of the committee. Thank you very much on behalf of the committee, the clerk, the analyst, the interpreters, everyone for the hard work that you do.

Members, we are now going to suspend to go in camera.

[Proceedings continue in camera]