Industry Committee on Feb. 26th, 2019

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Are you saying that we've taken into account all of the possible situations we can think of that could cause problems? And are you saying that in the consultations, the government has assured you that it is going to take all of these situations into account in implementing flexibility?

[Stephen Laskowski]

Absolutely. It does today, and it will in an electronic world.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

That's very positive to hear.

You didn't mentioned it, but you talked a bit about the carbon tax. I want to talk about another area. Coming from a trucking family, you know that a lot of times the small business truckers, especially the guys who are running their own rigs, can't really pass on all the costs to their customers. The carbon tax is one thing, but the government is also introducing a clean fuel standard. That's currently undergoing consultations, but the government is looking to possibly raise the price of fuel by 5% to 10%. If those costs can't be passed on to consumers, your stakeholders will be taking that hit.

What are your thoughts on the clean fuel standard.

[Stephen Laskowski]

Trucking is a hyper-competitive business, just so everyone understands.

A class 1 railway would typically have an operating ratio of about 0.70. That would be a bad day for the railway. They're typically under that. Historically, a good average in trucking is 0.95, to your point, so we compete on pennies. Having to stick within the Competition Act, it is a significant challenge between a small and large trucking company dealing with their customers.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

If the clean fuel standard is implemented, raising the cost by 5% to 10%, is that going to put a lot of small businesses out of business?

[Stephen Laskowski]

It will be a significant challenge in the supply chain. The issue of the clean fuel standard, specifically to your question...Currently, the trucking industry has no alternative to diesel fuel. We are not married to diesel fuel. It is a marriage of no other choice. Right now there is no infrastructure capacity for another fuel that's North American-wide that would allow a long-haul trucker to operate.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Even if we were to find a new fuel that could be cost-effective, it would take years for the industry to adapt.

[Stephen Laskowski]

Correct. Our challenges and concerns with regard to pricing diesel compared to something else are.... In such a public policy world, one would say, “I am going to price this higher to incent you to use this other fuel.”

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

But there is nothing for you.

[Stephen Laskowski]

Correct.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

My next question is for Mrs. Abballe. I had the pleasure of touring your facilities. Your husband gave me a tour not too long ago. It's great to see a small to medium-sized enterprise. I think you have about six workers and a lot of automated processes. You're investing and it's great to see that.

However, your testimony raises a lot of questions about how Canada is really not competitive in many ways. Could you further expand about the new kinds of meats? I believe you mentioned bresaola. Is the government asking you to pay upwards of $20,000 more to send it into the facility—

[Jane Abballe]

If we want to validate it, if we want to make it more healthy and not use preservatives.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Do you use nitrates at your facility?

[Jane Abballe]

We do use them now. We must, by regulation.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Sending it into this validation process, why is that required?

[Jane Abballe]

We know that in Italy, it has been made for more than 100 years. Italians used to make it. Now, they have to use nitrates. We know of a few companies in Italy that are not using preservatives in great products, so it's much healthier.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Are you saying we can't get these great products in Canada because of the regulations?

[Jane Abballe]

Not yet, no.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

You said that pigs in Canada are generally slaughtered when they are six months old, and yet in Europe, pigs are grown to 12 months old, which make a far better, higher quality meat for the purposes you're using. What is the difference in Europe and why is it so different there compared to here? Could you elaborate further?

[Jane Abballe]

I am not sure why, but pigs are grown to 12 months in Italy, Spain and Austria. And they are big.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Do you import a lot of your hogs from Europe?

[Jane Abballe]

Yes, we do, but not everything, because we use Canadian pork for cheaper stuff like salami, but we use ibérico pork, for example, from Spain for salami. It's a completely different pork to work with.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Thank you so much.

[The Chair, Liberal, Dan Ruimy]

We're going to move to Mr. Masse.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair, and thanks to all of you for being here today.

Mr. Laskowski, you mentioned the Gordie Howe bridge. I had my first public meeting on that in 1997—