Evidence of meeting #62 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Kelly Gillis  Associate Deputy Minister, Department of Industry
John Knubley  Deputy Minister, Department of Industry

9:10 a.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Again, recognizing where my riding is, I think about winter and winter tourism. We have a ski resort, Searchmount, and a number of facilities, snowmobiling, etc. This is the first time that Searchmount was in the black in about a decade.

What is there in the budget for winter tourism?

9:10 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

Canada's new tourism vision promotes winter tourism through two avenues: investing in our regionally diverse tourism offerings through our regional economic development agencies that support tourism by investing in local tourism businesses, products, and experiences including winter tourism; and promoting our national parks, many of which offer unique winter experiences, including cross-country skiing, snowshoeing, hiking, and more.

Something we're noticing, even when it comes to the jobs gap, is that it's a seasonal industry with the potential to be year-round. One of the greatest things that Canada has to offer, unlike many other countries, is four distinct seasons. We want to showcase those four seasons, and if we can get the country working better together, perhaps the regions that have heavy summer months but not heavy winter months could share resources and create those full-time, meaningful jobs that Canadians want and expect.

9:15 a.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

That's very thoughtful.

I have a question about venture capital and access to it. I don't know how much time I have, but I'll just leave that out there.

9:15 a.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you very much for saving us 30 seconds.

We're going to move to Mr. Lobb.

You have five minutes.

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Thanks very much.

Thanks, Minister, for attending today.

In the making of the budget and your budget suggestions to the minister, did you have any meetings with Dan Kelly from the CFIB, for making recommendations?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

Yes, for sure.

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

With that, do you feel it's your duty or responsibility to advocate to get the small business tax rate to 9%, or is that something that is completely off the table at this time?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

We've been communicating in regard to the opportunities, and once again, the previous government's approach and this government's approach are very different. We're really looking for results in growing the economy. Mr. Kelly and I have spoken. I've spoken with many of his members. I've also spoken to the Small Business Matters Coalition. If you look at their surveys and what their members are asking for, that's exactly where this government is headed through the strategic investments we're making.

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

On personal and capital gains tax treatment, prior to the budget being delivered, there was a lot of apprehension about that, certainly in my area where there are a lot of small-business people. Are you going to advocate on behalf of small-business people to Minister Morneau to leave it alone? That's not something you're looking at tinkering with at this time, is it?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

I work closely with all of my colleagues and I will continue to do that. When it comes to tax fairness, this government really believes in tax fairness and that's why there is a review taking place.

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Okay. Is it fair now?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

You mean the system?

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

In your view, are the capital gains at this rate now fair? You just said fairness. So is it fair now or is it unfair?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

That's why it's important that we look at other countries and we look at what's taking place. We will look at the evidence, and that's the information on which we will base decisions. I will continue to advocate for—

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

That's a good point, because the United States is talking about the biggest tax reform in 30 or 40 years, and it is looking at capital gains potentially being at 20%. Is that something you're perhaps looking at—following in lockstep with the United States, to make it more advantageous for people who are investing in small business and so on? Or is that perhaps going to create some sort of issue between Canada and the United States with regard to investment?

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

Through the Chair, as much as I appreciate that the member likes talking about hypotheticals, we're here really wanting to deliver results and take action. That's why we will look at the evidence. We will definitely look at other jurisdictions, something I've always encouraged—

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Sorry to interrupt. That is a good point on evidence and things that have actually happened.

One thing that happened in the budget was the escalator on the excise taxes for small businesses like microbreweries and distilleries. I know from talking with them that if you had asked them prior to the budget if they thought you were going to increase the excise tax or decrease the excise tax, they would have told you that in the worst-case scenario you would do nothing or maybe decrease it, and in fact what you've done is put an escalator on there.

So on that, when we're talking about facts and realities in other jurisdictions, other jurisdictions around the world, G7 nations, are reducing excise taxes. We're increasing excise taxes, and I'm just wondering if you have any thoughts on that.

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

I come from the Waterloo region and actually I speak to my local craft breweries and my stakeholders as well, and that's not what I've been hearing. I'm sure there are many perspectives. We welcome all of them—

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

You might be interested because some of their representatives—

9:15 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

—but at the same time, that's not the only voice out there, just so you know.

9:15 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Yes, well, their voices were at the finance committee this week, and I don't know if any of these members were there, but I think they skewered Bill Morneau and Justin Trudeau quite competently on their excise tax increases.

I have one last question. I'm not saying we're fully employed in my region, but we're pretty close, and small businesses tell me they are having a very difficult time attracting people to work in tourism-related industries, such as restaurants. What is your government doing to help restaurateurs and others to be able to hire people and get their businesses working?

9:20 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

There are definitely programs, but I'll actually continue that from your earlier questioning on the CFIB and give you a response to what their asks were, based on what their members said. Their biggest challenges were shortage of skilled labour—just as you said—government red tape, and then cost of innovative projects. They're very supportive of the investments the government is making. When it comes to skill shortages, we want to make sure that Canadians have the skills for today and tomorrow, which is why we're investing in skills development and so forth.

9:20 a.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Is that also for restaurant staff?

9:20 a.m.

Liberal

Bardish Chagger Liberal Waterloo, ON

Hospitality is.... The tone of your question suggests you don't take tourism seriously. It's an economic driver.

9:20 a.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you. We're out of time.

We are going to move to Mr. Baylis.