Industry Committee on Nov. 7th, 2006

[Richard Dicerni]

If I could, you said food and drugs. We involve ourselves—

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

I said the regulations. We made some changes in the regulations.

[Richard Dicerni]

As it relates to achieving a balance between generic drugs and—?

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Yes.

[Richard Dicerni]

Then you're referring to the recently proclaimed regulation that established for the pharmaceutical companies certain periods of time and also gave something to the generic drug manufacturers.

[Maxime Bernier, Conservative, Beauce, QC]

Thanks.

As you know, Canada's Access to Medicines Regime is an important regime. The Government of Canada wants to meet the commitment it made to ensure that our country can be a world leader in the fight against public health problems in the developing countries and in the less advanced countries. We have made financial commitments in the last 2006 budget. The government will support programs like the World Fund for the Fight Against AIDS, Tuberculosis and Malaria and the Global Polio Eradication Initiative, and it has facilitated protection against the shocks that those diseases cause.

This funding that we provided in the last budget will assist programs in achieving their objectives with regard to devastating diseases in the hardest hit countries of the Third World. Those diseases kill nearly six million persons a year.

In putting in place Canada's Access to Medicines Regime, the Government of Canada has created a statutory framework for exporting pharmaceutical products at reduced prices to Third World countries. I wish to point out that the regime is part of the efforts that Canada is making to assert its values and interests on the international stage, by providing necessary aid to the least well-off countries coping with public health problems, AIDS, tuberculosis and so on.

Some have criticized the fact that from the moment it was implemented, the regime has not resulted in the export of medicines to the countries requesting them. In the next few weeks, we're going to start a review of the regime's provisions in order to establish and accelerate the export of Canadian medicines to developing countries, while honouring Canada's international obligations.

This access to medicines regime for developing countries must also be consistent with the statutory provisions on patent medicines. It must comply with the act. The first purpose of the act is to establish a balance between predictability and stability in Canadian regulation of intellectual property. As regards intellectual property in this field, the government and I, as Minister of Industry, want to reconcile the need for protection that will encourage timely research on more effective medicines with enhanced competition from generic products in order to reduce public health costs.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

You answered the second part of my question. I was going to ask you about that.

I want to go to science and technology. I think you touched on this, but how will the government meet the challenges? Tell me about the government's science and technology strategy. Do we have a strategy in place? Specifically, what principles will guide that strategy?

[Maxime Bernier, Conservative, Beauce, QC]

In the past few years, Canada has made remarkable gains in increasing its ability to produce knowledge and commercialize research results. When I say its ability, I'm talking the ability of Canadian businesses to compete on the international stage.

As I said earlier, in my colleague Jim Flaherty's 2006 budget, we decided to work together to develop a science and technology strategy. That strategy will be established following the consultations I conducted during the summer with various stakeholders in Vancouver, Toronto, Montreal, Halifax and Edmonton. I had the opportunity to meet people working in the science and technology sector, both industry leaders and professors.

I also want to tell you that we will soon be unveiling a policy for continuing consultations and cooperation with those people.

[The Chair, Conservative, James Rajotte]

Okay. Thank you, Minister.

We'll go to Brian Masse for five minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair.

I've been one of those who have been critical of the Pledge to Africa Act, because we haven't actually had a pill get into anybody's hand. Until it does, it doesn't do us much good over here, and it doesn't do somebody over there or anywhere else any good--and it's not just in Africa, but across the globe that this act is applicable.

With respect to your meeting coming up in two weeks, do you have some deadlines set for reviewing things and fixing the problem? And what do you mean by “fixing the problem”? Do you mean, by stating it right here, that you're committed to doing everything that's necessary to ensure that this actually translates into drugs for those persons suffering from AIDS, tuberculosis, and malaria?

[Maxime Bernier, Conservative, Beauce, QC]

As you know, Canada's Access to Medicines Regime implements a provision of the accord of the WTO, the World Trade Organization, enabling developed countries to grant mandatory licences for the manufacture and export of low-cost generic versions of medicines for developing countries.

In accordance with the decision made by the WTO in August 2003, a medicine cannot be exported under this regime unless a developing country has not advised the WTO or Canada of its intention to import it. I wish to inform you that, to date, none of those countries has expressed such an intention. This lack of interest concerns not only Canada, but also six other countries that have provisions similar to ours. Six other countries and the European Union have implemented the WTO's decisions, and, to date, none of those countries has received requests from developing countries. That is why the government is now actively promoting this regime to those countries. Only July 28, a CD-ROM and a Web site were launched to assist and inform parties interested in the regime, to encourage those countries to take part in the program. Under the Patent Act, my department must complete a review of this regime by May 2007. To provide a more specific answer to your question, I will say that we're going to review the regime and that we will be tabling a report in Parliament on the findings of that review in May 2007.

At the International AIDS Conference held in Toronto last August, non-governmental organizations criticized the Canadian program and demanded that the government amend the Patent Act so as to eliminate needless barriers so that these countries could enjoy access to these medicines. We take this very seriously and we're checking everything. I am anxious to table this report and I will do so as soon as possible.

[Brian Masse, NDP, Windsor West, ON]

The Doha agreement didn't actually require us to go through this process. The fact of the matter is, if we're just going to send a country a CD-ROM.... I think more is expected from this country in particular, our embassies and whatnot. I know there have been NGOs trying to use this system who have been frustrated by it as well.

I want to turn briefly back to the GST and the cutting of the rebate. As you noted, it is only used by 3% of those travellers, but at the same time, it's extensively used, and the real harm is from the conventions and other types of delegations that come in. In fact, there are representations from those organizations calling it the worst decision, in its effect on the industry, since 9/11. They're also calling it a travesty and saying a series of different problems are going to be created. They're losing business over this.

At a time when we have the Americans instituting the WHTI and we have militarization on the border—for example, on my border we're getting military Black Hawk helicopters, river gunboats, a whole series of things that are scaring tourism away—why, when we have our lowest levels since 1972 of American tourism to Canada, would we now add another problem to the situation? Why wouldn't the government abandon that cut, since the industry universally is condemning it, allow it to stand, and at least do a national tourism strategy to offset some of the problems we've had?

We did it successfully for SARS and other things. Why can't we do the same thing when we know we have barriers imposed upon us and we are also creating some ourselves?

[The Chair, Conservative, James Rajotte]

We have about thirty seconds, Minister—unless the Bloc and the NDP are sharing time.

[Maxime Bernier, Conservative, Beauce, QC]

I would like to remind the committee that tourism is a very important industry in Canada. The economic benefits of visits to Canada by foreigners are enormous, both for the people in charge of conferences, as you just said, and for our national parks across Canada. That said, this program cut was made because we believe this country has more to offer foreign visitors than a tax rebate. We don't think foreigners come to Canada just to have a tax rebate, but also to visit Canadians and to see our country.

As regards the tax rebate, we believe that the one percent cut in the GST, to six percent, means that the purchases these people make in Canada will cost less than they would have without that cut. Canada is promoted through a number of programs. As I said earlier, through the Canadian Tourism Commission, we invest more than $300 million to promote tourism in Canada. Soon the Olympic Games will be held in Vancouver, and Quebec City will have its 400th anniversary, and the Canadian government will take an active part in promoting those events in order to attract foreign tourists.

Instead of administering a costly GST rebate program, we thought we would cut the tax to six percent, which is good, but, as you know, in our election platform, we told Canadians that we would reduce it to five percent. In this way, we'll help make Canada an enviable and affordable destination. This will benefit 100 percent of visitors, not just three percent. As I said earlier, the tourism sector is facing major challenges. I'll be meeting with tourism industry people in a few weeks, and I will be pleased to discuss this matter with them.

[The Chair, Conservative, James Rajotte]

Minister, I apologize, but we want to try to get all the members in. We have one independent member of the committee, and he does not get questions if we don't move along.

We're going to Mr. Karygiannis.

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Minister, both you and your cabinet colleague, the Minister of Canadian Heritage, are on the record indicating that you intend to introduce legislation to amend the Copyright Act this fall.

I'd therefore like to ask you this. Is it still the intention to introduce legislation to amend Canada's Copyright Act this fall, or are we now looking at 2007?

[Maxime Bernier, Conservative, Beauce, QC]

Thank you very much.

As regards the Copyright Act, there was a bill that died on the Order Paper, when Parliament was dissolved before the last election. I'm actively working with Ms. Oda to table in Parliament a bill that addresses all concerns. I don't yet know the date when that bill will be filed, since we still have to hold consultations, but the work is going well, and we hope to be able to present something to Cabinet as soon as possible for approval. This bill is important, but, as you know, we're a minority government, and we don't control—

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Minister, you have a tendency to be long-winded, so let me bring you back to focus.

In fact, on October 18, 2006, Minister Oda told the Canadian heritage committee that both she and you are sticking with your plan to introduce copyright legislation this fall. Is this the case, yes or no?

[Maxime Bernier, Conservative, Beauce, QC]

Thank you for the question.

The answer is that I'm working hard with Bev Oda, and we're trying to have something before Parliament as soon as possible. I cannot tell you which day it will be.

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Okay, Minister.

Going on to the automotive sector, I noticed in your speech—and thanks very much to your staff for bringing it to us, but unfortunately, we should have had it with us in the beginning—you dedicate a paragraph on the Canadian Automotive Partnership Council and on what you've done.

Could you bring us up to speed on the work your department is doing with fuel cells out in Vancouver?

[Maxime Bernier, Conservative, Beauce, QC]

I'm sorry, on what?

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Fuel cells.

[Maxime Bernier, Conservative, Beauce, QC]

I'm going to ask Richard, my deputy minister, to speak to fuel cells.

[Richard Dicerni]

We will get back to you, sir. I don't have that.

I know it's partially through the NRC. The reason for which I'm stumbling a little bit is that it's not directly through the department. It is mostly through some of our portfolio agencies, such as the NRC, which I believe is involved in this.

I can undertake to get back to you.

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Is the funding and the amount of money that you were giving that particular research still ongoing? Are we on track to have fuel cells in the next ten to fifteen years? Or is this something the government and the minister are putting away and we're focusing on the new environmental plan because we killed Kyoto and are now saying they're free to go right ahead and pollute?