Industry Committee on Nov. 7th, 2006

[Karin Zabel]

Just to recap briefly, last year when the move was announced we were advised that we would receive $25 million both to pay for the move and to invest in marketing initiatives. We did receive this year $19.4 million and were advised by Treasury Board that the $5.6 million was not forthcoming. Those funds would have been invested in marketing programs, in particular in the work we're doing on our brand and in e-marketing. However, we understood this year that those moneys would require Treasury Board approval, and hence our strategy continues to be on track with the budget we have.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Did you ask that the surplus funds from the move be allocated to the operation of the Canadian Tourism Commission? Did the Commission make a request for that purpose?

[Karin Zabel]

Yes, through the process of the $25 million, we did request that we receive approval for the $5.6 million.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Do we know the figures on the Canadian Tourism Commission's five-year strategy, copies of which you say we'll soon have? Is there funding related to that strategy? Is it possible that, if it doesn't appear in the strategy, you can send it to us? Can you send us an evaluation of your needs as regards the necessary budget to regain lost ground with regard to tourist attractions and international tourism?

[Karin Zabel]

I suppose any government organization could manage with more funding. As to what the right number is, I can't really speak to that. As I indicated in my opening remarks, we are very much operating in a competitive sector. Certainly if there were additional funds forthcoming, those would be invested in our marketing programs. Nonetheless, we do believe in the strategy we have, which is based on our current funding.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Do you have any figures from Australia? Ms. McKenzie told me that Australia was a very bold and dynamic country. Do we have any figures on the percentage of its overall budget, so that we can see the gap between Canada's effort and that of a country like Australia, or a certain number of other countries?

[Karin Zabel]

I can't provide you those numbers today, but we can certainly send those forthwith. Yes, we have those numbers.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you.

I'm actually going to take the Conservative spot, unless there's a Conservative objection.

If I could get one question in, it would be in terms of the space program. I've long been a supporter of the Canadian space program. I think it's been absolutely outstanding for Canada. You talked about the robotic expertise that was essential not only in terms of brand in Canada, but also in terms of spinoff benefits. You say in your brief, “Today the U.S. and Europe are seeking our cooperation once again for the next wave of major space programs.” I'm not asking you whether you'd like the agency to have more funding or not. Obviously you would wish that.

Could you identify some of the key international space programs that ideally Canada would participate in, some of the timelines in terms of when as a nation we have to decide whether we partake or not, and then some of the approximate funding that would be required if we are to partake in those international projects?

[Carole Lacombe]

Thank you for that question.

Yes, both the U.S. and the European Space Agency are embarking on ambitious new programs. In the U.S., President Bush announced a new vision in terms of missions to the moon, Mars, and beyond, and he has called upon all countries to participate in a journey, not a race. With about 13 or 14 countries, NASA is leading some extensive consultation on exactly what the exploration program would look like.

In Canada we've met with all of our stakeholders to build on unique Canadian expertise. As I said, we're good in niche areas, so we're looking at what niche technologies we could bring to contribute to that world global exploration program. At this stage we'll know more from NASA themselves. They will be unveiling the concept of their program in late December. We can anticipate that probably in the springtime Canada will be expected to indicate the level of contribution that we'll want to play. We're working on options and we'll bring those options to our minister and to the government. We still have some homework to do, but those are grosso modo the timelines.

[The Chair, Conservative, James Rajotte]

Okay.

[Carole Lacombe]

In terms of Europe, there is the Aurora program that is also embarking on that. We have committed some funding and some partnerships in that endeavour as well.

What's very interesting is that because Canada is the third country in space, our expertise has been proven. These partners want us there because we've done this before and we've proven what we can do.

[The Chair, Conservative, James Rajotte]

Would I be able to get information for the committee on the U.S. program, the Aurora program in Europe, and some areas of niche expertise? I'd like to provide that for members. Perhaps we could ask you to come back to talk more about general strategy, about space.

I regret the time limitations, but I do have to go to Mr. Masse, finally.

I know the bells are ringing, but we should be able to get about five minutes in, I think.

Mr. Masse.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair.

Ms. Zabel, with regard to the GST elimination, what is the position of the commission on that matter?

[Karin Zabel]

The position is that these are proposed amendments to the Excise Tax Act to eliminate the visitor rebate program. We believe it will impact our ability to attract tour groups and meeting and convention business to Canada.

[Brian Masse, NDP, Windsor West, ON]

You did have as well a sustained budget cut of, I believe, $2 million or $3 million for advertising in the U.S. in the last fiscal year.

[Karin Zabel]

We had a $3 million budget cut, which will impact our 2007 budget. It's not specifically targeted to the U.S. It's an overall budget cut.

[Brian Masse, NDP, Windsor West, ON]

I noticed in your comments here...and one of the things that I've been concerned about is the competition in the U.S. to get our American travellers back and forth. I know your focus here is going to be on international tourism revenues, so that's outside of the U.S. market. My concern is, are we abandoning the U.S. market?

[Karin Zabel]

No. In fact, when we use that term “international revenues”, we would include the U.S. The U.S. is in fact our largest and most important market and has our largest share of investment.

[Brian Masse, NDP, Windsor West, ON]

Okay. Has the Canadian Tourism Commission met with or had any type of involvement with the Department of Immigration?

I come from a constituency where, routinely, people from Africa, the Middle East, eastern Europe, Pakistan, and South America are denied visitor visas to visit Canadian citizens who are making regular applications. They come here and spend a lot of money; they're often grandparents. Or they come for a wedding or for a funeral service, or they simply come and visit. Those denials are very significant. Over the last two and a half to three years, my office has been inundated. Has there been any analysis of that particular loss of tourism revenue, because people can literally stay anywhere from a few weeks to a couple of months?

[Karin Zabel]

Not to my knowledge, not by the CTC.

[Brian Masse, NDP, Windsor West, ON]

I would suggest that's one thing to look at and talk to some of the operators about, because visitation is down there.

With regard to the study for the WHTI, the minister said it was $2 million a few minutes ago. I was under the understanding it was half a million dollars that impacts the WHTI. Of those two different figures, do you know which one it was?

[Karin Zabel]

Sir, you're referring to what the impact will be of WHTI?

[Brian Masse, NDP, Windsor West, ON]

No. There was actually a proposed study of the WHTI from the industry department. That didn't come through you guys?

[Karin Zabel]

No, it didn't.