Evidence of meeting #85 for Health in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Mackie Vadacchino  Chair and Administrator of Boards of Directors, As an Individual
Sylvia Hyland  Vice-President, Operations and Privacy Officer, Institute for Safe Medication Practices Canada
Melissa Sheldrick  Patient and Family Advisor, Institute for Safe Medication Practices Canada
Aaron Skelton  President and Chief Executive Officer, Canadian Health Food Association
Gerry Harrington  Senior Vice-President, Consumer Health, Food, Health & Consumer Products of Canada
Adam Gibson  Member, Canadian Health Food Association

11 a.m.

Liberal

The Chair Liberal Sean Casey

I call this meeting to order.

Welcome to meeting number 85 of the House of Commons Standing Committee on Health.

Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders.

For those participating via Zoom, click on the microphone icon to activate your mike, and please mute your mike when you're not speaking. Interpretation is also available to you. You have the choice at the bottom of your screen of floor, English or French. Screenshots or taking photos of your screen is not permitted.

In accordance with our routine motion, I'm informing the committee that all remote participants have completed the required connection tests in advance of the meeting.

Pursuant to Standing Order 108(2) and the motion adopted on October 4, 2023, the committee is beginning its study of the Department of Health's regulatory changes for natural health products.

We have two panels of witnesses. I'd like to welcome our first panel.

We welcome today Ms. Mackie Vadacchino, who will be speaking as an individual.

Representing the Institute for Safe Medication Practices Canada are Sylvia Hyland, vice-president, operations and privacy officer; and Dr. Melissa Sheldrick, patient and family adviser.

Thank you all for taking the time to appear today. You have up to five minutes for an opening statement.

Welcome, Ms. Vadacchino. You have the floor.

11 a.m.

Mackie Vadacchino Chair and Administrator of Boards of Directors, As an Individual

I would like to start by thanking the committee for this opportunity. Industry representation is needed, not only so that we can tell our side of the story, but also so that we can properly correct the mistruths and damaging statements made by Health Canada.

My name is Mackie Vadacchino. I am a proud Quebecer and an active member of the Montreal-Italian community. I have been working in the natural health products industry since 2004 and currently sit on the board of several companies in the industry after 15 years as the CEO of Bioforce Canada Inc.

Over the course of my career, I have been involved with many changes from Health Canada on which we worked together to obtain mutually beneficial results.

I must say that this time, in addition to the negative financial and environmental impact, what we found most difficult to accept was the total disrespect for our industry, for our businesses and for us as Canadian citizens.

I must stress that the impact is massive and costly on several levels, and will place a financial burden on the supply chain, which is essentially comprised of small natural health product or NHP manufacturers and providers.

And let's not forget our local retailers. In Quebec, supporting local businesses is a matter of pride. Sadly, the implications of these changing regulations will be felt in almost every small local NHP store, which will see a number of products disappear from their shelves.

The impact will be costly in terms of jobs across the NHP ecosystem, the financial stability of small businesses and the mental health of industry members suffering from stress. Prices are projected to increase by 30 to 35% as costs get handed down to the consumer.

There will also be an environmental cost, which is a major concern for our industry. The new labelling rules that will come into effect in 2025, a mere two months after the proposed cost recovery fees, will require the use of a peel-back solution for most products, which renders the entire container non-recyclable or will force manufacturers to increase the size of the packaging to accommodate the new mandatory format.

All NHP manufacturers in Canada will be forced to dramatically increase their environmental footprint. The guidance for the new labels is inflexible, outdated and out-of-touch.

Our industry is built around natural products. Our ingredients are born of the Earth. We cannot disregard the environmental impacts the new labelling laws will have.

The new font requirements will also make reading the French and English labels much harder to understand, as hosting two languages on the same size packaging will be extremely challenging for many NHP products, due to the multiple ingredients listed. Perhaps a QR code or a smart label could be considered here.

Let's talk about cost recovery.

The proposed cost recovery fees are so high that even with the proposed small business mitigation scheme, many small businesses will simply not be able to afford to bring any new product to market. Canadian innovation in the industry will be stifled.

We are asking Health Canada to reassess the application fees to encourage industry to be compliant, but also to allow Canada’s NHP system to remain the most respected in the world.

The Canadian NHP industry also faces fierce competition from our US neighbours, who market and promote dietary supplements to Canadians online. These US products are not regulated, and American law regarding health claims made for products differ greatly from Canada’s.

The majority of Canadian NHP companies are not against regulations, but if these regulatory changes are truly about the health and safety of Canadians, then we desperately need regulations that take into account the many challenges and realities the sector faces in today’s day and age, the size of the businesses that make up the majority of the industry, and the need for innovation that will continue to allow Canadian industry to offer natural, low-risk products.

This industry should and can thrive under the self-care framework, and I am honoured to be here today to offer insights that can be useful and productive.

Thank you for having me.

11:05 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you, Ms. Vadacchino.

Next, from the Institute for Safe Medication Practices Canada, we have Sylvia Hyland or Dr. Sheldrick. Maybe you are going to share it, but you have five minutes and you have the floor.

Welcome.

11:05 a.m.

Sylvia Hyland Vice-President, Operations and Privacy Officer, Institute for Safe Medication Practices Canada

Thank you, Mr. Chair.

On behalf of the Institute for Safe Medication Practices Canada, ISMP Canada, we are pleased to be here today to speak to this important topic. I am Sylvia Hyland, VP operations and privacy officer, and joining me is Melissa Sheldrick, patient and family adviser.

ISMP Canada is a pan-Canadian, not-for-profit and independent organization established in 2000 to improve the safety of drugs and health projects. Our key activities are the analysis of errors; making recommendations for improved safety, including labelling and packaging; and supporting consumers, care providers and other health system partners to implement these recommendations.

Through our reporting and learning programs, we have received reports of preventable harmful errors involving natural health products. We have shared information through the numerous Health Canada consultation processes and stakeholder engagements. In our analyses, we identified three main areas of concern related to natural health product labels.

The first concern is the inability to easily and consistently identify ingredients on the label.

We recently received a report about a selection error involving an umbrella brand name. This means the same brand name is used for products that have different key ingredients. The report describes purchasing a product for a baby believing that the product had vitamin D in it. The reporter was upset to find that unlike another product with the same brand name and typically associated with vitamin D, the product purchased had no vitamin D.

We have also received reports of selection errors in products using the same brand name for both a non-prescription drug that has a drug identification number or DIN, and a natural health product that has a natural product number or NPN. An example is a consumer reporting harm from taking a ginger and willow bark product when she had intended to take the dimenhydrinate product with the same brand name.

Consistent use of a product facts table will identify key information for the consumer and also the health care provider. It is essential for both to easily and consistently find the ingredients when selecting and comparing products.

The second concern is unclear information about the dose on the label. Consumers and health care providers need to easily locate and understand the recommended dose for the product on the label. We have had reports of harm due to misunderstanding the dose information for a natural health product.

The third concern is the lack of an important warning or the inability to easily read warnings, when selecting the product from the shelf. The list of NHP medicinal ingredients is broad and includes ingredients known to have possible adverse reactions. Examples include scopolamine, pseudoephedrine and salicylates.

We fully support the improved NHP labelling requirements.

We also fully support the inclusion of natural health products under Vanessa's Law. Consumers trust that there are requirements being followed for the products they buy. It is important that Health Canada has the authorities and resources to conduct regulatory activities, provide enhanced oversight for compliance and monitoring, and also to sustain the improvements being made.

11:10 a.m.

Melissa Sheldrick Patient and Family Advisor, Institute for Safe Medication Practices Canada

Health Canada estimates there are over 200,000 natural health products available to Canadians on the market, and consumers expect them to deliver and monitor safe products. Consumers have many choices when they are trying to self-select products off the shelf and while this choice may be welcome, it can be overwhelming. Consumers have to do their own research about the products they buy, which can be difficult for many Canadians. It can also be challenging to do this research at the point of selection.

I would like to draw your attention to the image that we sent to you of the label from a container of protein powder. This label has elements of safe label design, and we have a green arrow on the image pointing to the facts table, which is clear and easy to read. The red arrow is pointing to the section of the label that describes the cautions. This is where there is important information regarding the use of the product, such as the conditions under which people should not use the product. This warning section must be made more prominent.

In 2016, I lost my 8-year-old son, Andrew, to a medication error made during the preparation of this liquid medication from a prescribed pharmaceutical powder, and one of the contributing factors was the design of the label, which was improved by the manufacturer soon after.

ISMP Canada has made recommendations for labelling of pharmaceutical powders, and we have created guidelines for the labelling and packaging of prescription drugs, non-prescription drugs and natural health products. All labels are important and there are principles for safe label design, for example, the prominence of critical information and legibility of key information, that can and should apply to all of these labels.

The changes recommended by Health Canada will result in key steps towards addressing the concerns reported by consumers and health care providers. In addition, consumers think that this is already happening.

Thank you, Mr. Chair.

11:10 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you, both.

We're now going to move on to rounds of questions, beginning with the Conservatives.

We'll go to Dr. Ellis, please, for six minutes.

11:10 a.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Thank you very much, Chair.

Thank you to the witnesses for being here today.

One thing we've noted here is that we have probably had more concerns from Canadians with respect to natural health products than anything else.

This is a sampling of those. When you begin to receive these stacks, it's like Miracle on 34th Street when you saw stacks of mail to prove who Santa Claus was. That's a small smattering thereof.

I do have a motion that I'm going to move, Chair.

I think Canadians need to know that we have heard them loud and clear on the importance of this topic, by virtue of the vast number of complaints that we've received from consumers. They want someone to stand up for them—we want them to know that's going to be the Conservative Party—for their freedom of choice and for the opportunity not to decimate an industry. Very clearly, we know that the cost is going up.

There's another analogy, Chair. It has been given multiple times in the House of Commons. It talks about how, when you tax the farmer who grows the food and tax the trucker who ships the food, the person who buys the food is going to have to pay more for that. We know very clearly that this particular case is the exact same situation. What we're asking here is that.... Producers, manufacturers and distributors are going to have to pay more in the natural health product sector. Obviously when that happens, there's a trickle-down effect and consumers will end up paying more.

We also know very clearly, Chair, that when consumers have to pay more, there will be less choice in the market, because there will be those particular manufacturers and distributors who are not able to sustain their presence in the market. We also know very clearly that, in this particular sector, Canada is the envy of the world when we look at the regulations around natural health products. When we see those things, it doesn't mean that Canada doesn't need to continue to improve. Even if you're a world leader, obviously you should continue to try to be better. With that being said, should you do that at the expense of an entire industry and also when Canadians clearly want to have their choice?

I was speaking to one of my learned colleagues today. When we talk about choice and about Canadians having to do their research.... Guess what. It snowed today. Winter is coming. We all need to put winter tires on our cars, and we have to do research there. That's an incredibly important part of being a Canadian and being a good consumer. It's about safety. It's about choice. It's about cost. We all have to do our own research there. We don't have government reaching into our lives and suggesting that it needs to be the final arbiter of what is right and what is wrong in everyone's lives.

I would suggest that this particular industry is somewhat akin to that. Yes, it is about personal choice and it's about having information available, but it's also about the fact that people need to have the ability to make those choices themselves. When that happens, that's very important. It is about safety, but it is also about freedom. Again, this is also tied to a significant industry here in Canada.

The motion is as follows:

That, given that the proposed cost recovery and labelling regulations on natural health products are expected to have negative impacts on both Canadian businesses and consumer choice, the committee call upon the Minister of Health to immediately revoke these changes, and that the committee report this motion to the House.

Why is this important? Again, it's about consumer freedom of choice. It's about Canadian businesses being affected. It's also about, perhaps, the unfair application of these rules to international companies.

Very clearly, we know that there's an international economy around natural health products. We also know, very clearly, that because Canadians want to continue to have choice, if they're not able to have that in the Canadian market, then it's very easy to purchase these products online and have them shipped to their homes in quantities for personal use.

They will not have the appropriate labels. They will not have the safeguards in place that the Canadian system does. Instead of tearing down a Canadian system, I suggest that it would be exceedingly important that we work with industry to continue to build up this incredible industry that has flourished in Canada, as evidenced by this gigantic stack of mailers that has been sent to every one of our offices, including, I know, my colleague's across the way. They specifically mentioned to me that this is probably the issue that the individual over there has seen the biggest amount of correspondence on in the entire two years that this Parliament has been in session. He or she shall remain nameless, just to be kind to them.

When we look at that and understand that Canadians are considerably concerned about their access to natural health products, and understand that Canadians believe that the regulatory framework we have at the current time allows them to access products that are safe and that they have the opportunity to look at themselves, then it is important. We do know very clearly that the Liberal government wants to regulate everything in our lives. They want to regulate the Internet—what we can see and what we can hear and what can be posted. We know very clearly that, yes, the Internet has ostentatious claims of this and that or the other thing. I was watching something this morning that said, “You shouldn't drink cold water before you eat.” There's some negative effect, but when we look at these things, people also have incredible access through the Internet, which is now being censored here in Canada, to good information as well.

I was thinking this morning about a reference I'd heard about how much protein you could possibly eat in one sitting, how that may or may not be absorbed, and how much you could have. You very quickly come upon a trusted source, the Mayo Clinic....

Chair, I'm not sure what our colleague is doing in the video feed. Maybe he was taking a picture, but I'm not sure. Maybe someone could communicate with Dr. Hanley to clarify that. It was very distracting, nonetheless.

Do you know what? There is great information available out there when people specifically want to attempt to find the information and know the sources that can be incredibly useful in our ability to do our own research. The sad part, of course, is that in Canada over the last several years, everybody has become their own expert. People don't want to believe doctors and scientists and folks like that anymore. They read something on the Internet and then suddenly it becomes true. I do believe that a lack of belief in science and scientific analysis needs to be corrected. I don't believe that regulating natural health products further and making them less available is the way to do that. I don't believe that in any way, shape or form.

Understanding very clearly that the stakeholders we've discussed these changes with, especially the cost recovery changes—

11:20 a.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Chair, I have a point of order.

11:20 a.m.

Liberal

The Chair Liberal Sean Casey

Excuse me, Dr. Ellis.

We have a point of order from Mr. Davies, please.

11:20 a.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

We've been through two meetings previous to this one where the Conservatives have filibustered the meeting and not really let anybody else speak. I'm just wondering if my honourable colleague intends on filibustering this meeting. I would rather hear from the witnesses from the natural health products industry who have been called here and have the benefit of their testimony and experience before we even vote on the motion by Dr. Ellis.

If he's intending on filibustering the meeting, then maybe we can let the witnesses go if he doesn't want to hear from them. I think it's rude to let the witnesses sit here, when they've come here to testify, if Dr. Ellis has no intention of letting the committee hear from them or of having these witnesses lend us their expertise and experience, which I would like to have before this committee.

11:20 a.m.

Liberal

The Chair Liberal Sean Casey

I'm not sure it's a point of order.

Dr. Ellis, if you want to address it, feel free. If you don't, you have the floor again.

11:20 a.m.

Conservative

Stephen Ellis Conservative Cumberland—Colchester, NS

Thank you very much, Chair.

Again, the arbiter of this committee has intervened, sadly, to want to give his opinion on how committees should run. This motion has been duly tabled before this committee. It was available for everyone to see, and it's an important motion. I would hope that my honourable NDP colleague would support the motion to defeat the Liberal government's, sponsored by his NDP colleagues, attempt to make changes to decimate an industry and remove freedom of choice from Canadians. That would be important.

Returning to the matter at hand, we have spoken to many stakeholders, as I hope that many of my colleagues across the floor have as well, to understand that the almost incalculable regulations that have been put forward by Health Canada make it difficult to understand exactly how much these regulations are going to mean to Canadian manufacturers and distributors of natural health products. However, we do know very clearly that, when attempting to give these estimates, many businesses could see losses in revenue of hundreds of thousands of dollars. This is what leads very clearly to the significant belief that many Canadian businesses would actually go out of business. The industry would estimate that one in five businesses in Canada would go out of business related to these unfair and overburdensome regulatory changes.

When we look at that, we begin to understand that there is good information available out there. Couple that with the need for Canadians to have freedom of choice and the ability to say that this is how they wish to manage their own health. Are Canadians going to make mistakes with respect to that? That is absolutely possible, but we cannot protect every citizen from every eventuality. That is not a style of government that any of us wishes to participate in.

We have governments that absolutely control every movement and every thought that you have—now, that is not a country that I would like to live in—or a government that attempts to meet every anticipated need that one could have in their life.

Therefore, in an industry such as the natural health products industry, which is underscored by the fact that people want to manage their own health—and have the ability to do so—I would suggest that the regulatory changes we see coming forward would be untenable, not just from a fiscal perspective but from a freedom perspective.

The other thing I would like to bring forward is that, when we had the panel from Health Canada here, and even in their follow-up information, which was provided to us in written format, they continued to talk about some 700 people who may have been harmed in some way by natural health products.

Chair, I would suggest that at some point, it would be quite fascinating if this committee sat together to attempt to access this database. There are no other words for it, but it's inaccessible and quite ridiculous in how it is framed. That then allows this Liberal government and Health Canada bureaucrats to be able to sit behind their numbers and say, “This actually does exist. There are 700 people, some of whom may have been harmed and may have been hospitalized.” When you don't have a database that is clear and searchable and would stand as a reference to say this is exactly where these numbers came from, that is not a helpful reference. Indeed, I would say it is a useless reference.

Certainly when you look at the experience that we have on our team, not just with our members of Parliament but with our staff, and still are unable to make any sense out of the main reference used to support these regulatory changes, I would say that it is nothing but a sham and a sleight of hand.

To underscore this, Chair—and I know committee members know this—I was a family doctor for 26 years. I wrote a lot of prescriptions, and I believe in the science that exists. It has helped people to live longer and suffer less. However, we know very clearly from a good reference that every year in this country, 50,000 seniors are hospitalized—not just harmed but hospitalized—by the use of prescription medications. Does that mean we should decimate that industry, that we should make it almost impossible, that we should add useless labels to people's pill bottles, that we should say people don't have the freedom to make their own choices with all of the same regulations and adding to them, even though they have perhaps stricter regulations than those on natural health products at the current time? Because that many more people just in the seniors group are hospitalized by prescription drugs, does that mean we can expect an assault on prescription drugs as well?

We know very clearly that prescription medications and over-the-counter medications have potential and serious side effects, but we also know there are benefits. Therefore, when we allow Canadians to have this freedom of choice in a sector, as I said previously, which would be the envy of the rest of the world, and we know clearly that is a desire Canadians have, and we have a shady database on which the decision-making was based, and we know this certainly is something that will decimate an industry, and we know very clearly that the industry is not in favour of said changes, then, Chair, I do believe we need to speak up loudly and vociferously on behalf of Canadians. We need to let them know clearly that Conservatives wish them to continue to have their freedom of choice and that we wish to fight the regulations proposed on their behalf. We wish to fight those regulations proposed by the Minister of Health and Health Canada.

That is the reason, Chair, we have moved this motion. I realize there are folks here to testify on this topic. I want to be respectful of that.

The other part of it though is, as my colleague has been wont to bring forward many times, this committee is the master of its own destiny. Therefore, if we wish to have further meetings on this topic and have more stakeholders present and more witnesses present, including members of the public, then we are certainly able to do this.

I would suggest, given this incredible stack of papers that everyone in this committee has received, adding more meetings to the study of the natural health products sector and the proposed draconian regulatory changes by Health Canada and by the Liberal government, supported by the NDP, would not be such a bad idea.

Chair, I shall leave it at that.

Thank you.

11:30 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you, Dr. Ellis.

The motion is in order. The debate is on the motion.

Next up is Mr. Doherty, please.

11:30 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Thank you, Mr. Chair.

Thank you to our colleague.

For the purpose of this conversation, I will read again what the motion is:

That, given that the proposed cost recovery and labelling regulations on natural health products are expected to have negative impacts on both Canadian businesses and consumer choice, the committee call upon the Minister of Health to immediately revoke these changes, and that the committee report this motion to the House.

I bring this up again because, as has been mentioned, I'm not quite sure about the exact amount of correspondence we have received, but I am on record as saying that this is by far the topic that has garnered the most correspondence, messages, emails and calls to my office in my eight years of being a parliamentarian. It's unbelievable, the amount we have. I think we have a number of bankers boxes, both in my riding office and here in Ottawa at my Hill office, filled with fliers, really Canadians' feedback. That's, as I've said before, why we're here, to listen to all Canadians regardless of political stripe or political leaning.

I do want to bring us back to the first meeting we had on this, when I had my intervention with Dr. Sharma. Part of the reason we have concerns over this is testimony from Dr. Sharma and her comments. If you remember, it was Dr. Sharma's testimony that over 700 Canadians had lost their lives due to mislabelling. Again, as I've said before, I don't want to see anybody lose their life due to this, and it is deeply concerning, but some of her comments were suspect.

If you'll remember, I raised those points with her, and she used a specific case, one I was familiar with, the death of 18-month-old Ezekiel Stephan. She attributed the mislabelling of health care products in her testimony to one of the important reasons that these regulations need to take place. I believe her testimony was that we had already seen the death of an 18-month-old child. When I questioned her on this, saying, in fact, that her testimony was misleading, she gave me a verbal gymnastics explanation as to why she used that. When I pressed her on it, she refused to back down from that.

The reality of that case is that Ezekiel was fighting meningitis. He had young parents who mistakenly thought that their baby, who I believe was their first, was struggling with strep or croup. I couldn't imagine what they were going through.

I have four children, all young adults now. I have a young granddaughter, and you know, especially if it's your first child, every time that baby cries, you're wondering what the problem is, what's going on and how you can help. They were grasping, so they thought that they were doing the right thing, and they presented not necessarily natural health food products but home remedies. I believe one was a garlic and apple vinegar tonic.

When it got to the point where the baby was really struggling, they called for an ambulance. That ambulance was not equipped with breathing devices that could fit an infant, which ultimately led to that baby's passing—not natural health food products. It was a combination of terrible events.

I bring that back up, because I believe we're rushing here. Our natural health food industry is regulated. We definitely had testimony from Health Canada officials who were here. They said they did their due diligence and conducted surveys. I believe that's what Dr. Supriya Sharma said.

Going back to Dr. Supriya Sharma's comments, Mr. Davies' last question to Dr. Sharma was, “I think it would help Dr. Sharma and all of us with this. In that case, did the product that was given make a claim that it would treat the particular ailment the child had?”

11:40 a.m.

Liberal

Sonia Sidhu Liberal Brampton South, ON

I have a point of order, Mr. Chair.

I know everything is important here, but we heard important testimony from Ms. Sheldrick. We want to know more. We want to ask questions. She lost her son, and many members of the committee want to pose questions to the witnesses. We want to work together. I urge my colleagues from the other aisle to listen to the testimony, so we can work together.

The other question I want to ask is whether they can stay until the next panel, because it's very important to ask questions.

That's all, Mr. Chair.

11:40 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you, Ms. Sidhu. Although those were all valid points, they were not points of order.

The motion is in order. The motion is allowed. It may not be something that everyone likes, but members are acting entirely within their rights.

Go ahead, Mr. Doherty.

11:40 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Thank you, Mr. Chair.

I'll go back to the last question that Mr. Davies.... Again I think it frames what we're talking about here with this motion and the reasons why we have concerns with it. The transcript reads:

Mr. Davies:: I think it would help Dr. Sharma and all of us with this. In that case, did the product that was given make a claim that it would treat the particular ailment the child had?

Dr. Supriya Sharma: We don't have the details....

She says, “We don't have the details”, yet it's one of the cases that she cited as to why it is so important that this industry face costly regulations—costly regulations that could potentially see the demise of 60% to 70% of these small businesses, if what we're also hearing from those officials is that the majority of the businesses in this industry are small to medium-sized businesses.

The Canadian Health Food Association is the largest Canadian organization dedicated to natural health and organic products. Their members consist of over 1,000 businesses across Canada, including manufacturers, retailers, wholesalers, distributors and importers of natural health products. Indeed, natural health products are an important source of organic and wellness products used by over 71% of Canadians.

The industry is a $5.5-billion industry. It generates $2.8 billion in taxable revenue and supports over 54,000 Canadian jobs. As I said, many of them are small to medium-sized businesses. After accounting for the full supply chain and increased economic spending, its total footprint is estimated to be $11 billion of GDP. Within the sector, 86% of the businesses have 50 employees or less. The reason I say that is that these small businesses are the backbone of this industry, and these regulations are at risk of closing the doors of these small businesses.

Ninety-four per cent of those businesses within the sector have 200 employees or less, and 97% have 500 employees or less. These discriminatory regulatory changes under the outdated and broken self-care framework will crush the small and medium-sized businesses. They'll have a profound impact: 83% of these businesses say they will struggle to absorb the costs that these regulations will bring in, and 76% of the industry responded to indicate a high likelihood of product removal from Canada. This means Canadians won't have access to these products. Sixty-six per cent say employment will suffer, resulting in devastating job losses. One in five businesses will be at risk of closing.

Our colleague, in his intervention, mentioned his concerns. My primary concern on this is not just the testimony of Dr. Sharma, which I find suspect—I'm sorry, but I gave her multiple opportunities to withdraw those comments. As I said in my testimony, I believe her to be a good person, but it is misleading when you stand here before a parliamentary committee and you provide testimony as such and you don't have all the facts. Because she is a doctor, we just take that testimony at face level, but I think that behooves all of us to do the research on that, which is why I questioned her that day.

Overwhelmingly, it is this Canadian industry that we are at risk of decimating due to these unnecessary regulatory changes. I'm not discounting the testimony that we heard today and the written submissions as well. I think again, as Dr. Ellis had mentioned, on the 700 deaths that are being attributed to mislabelling, when we ask for data on that, we're not able to access that. At least, I haven't seen the data on that.

I'm sorry. It's not deaths. It's 700 adverse effects. That was my mistake. Those are events and cases that.... Again, that's why I made that mistake. It's because it was my understanding that it was deaths. If we had the data, then perhaps we could accurately state our facts. Again, it's what we need.

Going back to Dr. Sharma's testimony, I take no joy in doing this, but Canadians deserve for us to do our jobs when we come here. I've said it before and I'll say it probably multiple times during the course of our committee work. Committees are supposed to be masters of their own destiny. We're here to do the job. We have medical experts on this committee. Sadly, we are relegated to...not talking out the clock, but having to take control because, as we've seen in the past, when we ask questions or we push for discussion outside of the government agenda, debate gets adjourned or we get railroaded. That's sad.

With that, Mr. Chair, I will cede the floor to the next speaker.

I support my colleague's motion. Thank you.

11:45 a.m.

Liberal

The Chair Liberal Sean Casey

Dr. Kitchen, go ahead, please.

11:45 a.m.

Conservative

Robert Gordon Kitchen Conservative Souris—Moose Mountain, SK

Thank you, Mr. Chair.

I thank my colleague for educating a lot of us on some of the inconsistencies and possible misinformation that was provided by Dr. Sharma on this very issue of the unfortunate demise of this young child.

It's interesting, as my colleague presented to us today, the stacks of information we've received from all across this country. He's on the east coast. I'm in the Prairies, and my colleague is on the west coast. It's going all across.... We've all received this. As he has indicated, I know that our colleagues across the way have received it as well.

In pointing out so many issues here, when we look at this motion that's being put forward to us, it's very clear and very straightforward, because the reality is that what we're seeing here is a discussion on regulatory changes that were presented in Bill C-47, dealing in particular with sections 500 to 504, I believe. The changes are being imposed upon small businesses in Canada, which provide, as my colleague has pointed out, tremendous economic benefit to this country, and that's going to have a huge impact on consumers and the rights of those consumers to choose what they would like to use, whether it's vitamins.... I take vitamin D and vitamin C. I use the Jamieson brand. That's what I use. It's a product that I've used for many years. It's very clear on that exactly what I'm taking, but there are so many other ones out there.

Ultimately, the process is that there's a regulatory step that's in place. Could it be improved? Yes, it could be, and maybe the industry.... In my conversations on this with people, they've indicated that they are prepared to make those changes to adjust that so that we can have that avenue.

On the issue of dealing with it such that people can actually read what's put out there, they've also indicated the great value of maybe adding more into it. However, that said, the packaging part now becomes a huge aspect of it, because if we're dealing with a hundred tablets of vitamin C in a small tube, the amount of paper that has to be produced to be able to put on there in a print that people can read.... I have to put my glasses on, and if I don't have them with me when I do it, that's on me to know what I'm reading and what I'm not. Ultimately that cost to the industry is going to be in the millions and hundreds of millions of dollars, which in turn is going to have a huge impact and result in Canadians all across this country.... I like to use the term “trickle-down effect”. It is a huge trickle-down effect.

I talk about it from the petroleum industry point of view and how shutting down the petroleum industry, the coal industry and the energy industry trickles down to those small communities. The same thing happens here with natural products. You start impacting that, and that trickle-down effect is going to affect small businesses. A small community that has a small business person in there who maybe employs one or two people lays off one person. That person has a family of five. Where do they go? They move somewhere else. That community is impacted and so on. It trickles down. The schools get impacted because they don't have the kids in the schools. These are huge impacts, and we need to be aware of that.

This motion is basically saying, “Enough of all of this.” Let's support this and go back to the government to say, “Enough. We don't see this as acceptable. These changes are a huge impact on the economy and on the industry.”

Our witnesses today talked a bit about adverse effects. One of the things I wrote down when she made the comment about it was, how many? How many adverse effects do you...? Dr. Sharma has said 700. That's 700 out of a population of.... What's the population of Canada? It's 30 million-plus people—

11:50 a.m.

Liberal

Sonia Sidhu Liberal Brampton South, ON

I have a point of order, Mr. Chair.

Calling the testimony of Canada's chief medical officer misinformation is dangerous.

Thank you, Mr. Chair.

11:50 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you.

That's debate. Its not a point of order.

Dr. Kitchen, go ahead.

11:50 a.m.

Conservative

Robert Gordon Kitchen Conservative Souris—Moose Mountain, SK

Thank you, Mr. Chair.

The research out there says that, in hospital situations, 7.5% of the patient population that gets admitted to hospitals is due to adverse events for regulated prescription medications. That's huge—7.5%—when you compare that to 700 for natural health products. Ultimately, “The Canadian Adverse Events Study”—this is from back in 2004—showed that, of that 185,000 of the 2.5 million hospital admissions, 70,000 of those could potentially have been prevented. This is with regard to prescription medications. To turn around and say 700 from natural health food products.... Look at the difference. There's a huge difference between those numbers.

I think this is a very educational part. We need to be very aware of these facts. We need to turn around and say that, yes, there are adverse effects. Yes, the industry needs to make certain that they're doing what they're doing, and it needs to be stepping up to make certain that that's done. I believe that the industry is doing that and making the steps, and it's prepared to make changes. However, when all of a sudden this government turns around and starts putting in right-to-sell, per-item costs for that industry, it's a huge cost, and that's an annual cost for every product they have. Then you turn around and take a look at the class of the level of the product that they're trying to sell.

I remember when I was a regulator dealing in the industry and in my profession. People brought across the table a new ultrasound machine. It had to go in front of Health Canada, and in front of Health Canada, it had to go through the process of making sure that it was appropriate. That cost was huge. Now, granted, we're talking about a product that's providing ultrasound treatment to somebody. Yes, there are a lot of issues that can result in various side effects there, so that product needed to be regulated appropriately. However, the costs were huge. When we're talking about a health food product—like a vitamin—and we classify that and have these huge, thousands-of-dollars costs.... Then, on top of that, you have the site licensing fees, which are supposed to be based on a cost recovery, yet no one has done an assessment on exactly what that cost is. These are huge amounts. I think the steps and the processes are not in place to follow those aspects and to make certain that we are doing what we should be doing.

My colleague has put forward a motion that we're dealing with that I think we need to look at, and look at immediately, to turn around and say to the government that this is wrong. The regulatory process has been put forward. Many people in the industry have put forward their information. It's time to turn to the government and say that this is not acceptable. Either it goes back to relooking at this, or we end it as we speak.

With that said, Mr. Chair, I want to thank you for the ability to speak on this.

I ask my colleagues to support this motion.

11:55 a.m.

Liberal

The Chair Liberal Sean Casey

Thank you, Dr. Kitchen.

Before I recognize Dr. Hanley, I just want to say something to the witnesses.

You committed to be here for one hour. We are now approaching the end of that hour. The first thing I want to say to you is thank you. However, the second thing is that, if we are able to dispense with this motion, I will be asking the committee to allow you to stay until the end of the meeting in case there are questions for you. That may be a decision that we will take.

I understand that you committed to be here for an hour, so if you wish to leave, you're free to do so. If you are able to stay, there's a chance that you may be able to further contribute if we can deal with the motion and if the committee agrees to include you in the rounds of questions after the next panel has a chance to present their opening statements.

With that, next on the speakers list with regard to the motion is Dr. Hanley.

11:55 a.m.

Liberal

Brendan Hanley Liberal Yukon, YT

Thank you, Mr. Chair.

Thank you to our witnesses for their patience.

We're all concerned about the viability of the natural health products industry.

11:55 a.m.

Bloc

Luc Thériault Bloc Montcalm, QC

On a point of order, Mr. Chair.