International Trade Committee on Feb. 19th, 2020

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

I want to ask Ms. Hatch and Mr. Girdharry.... We've been talking a bit about some of the data provisions in NAFTA today. I know that with smart home technology there's a lot of data collection that goes on. Obviously, some of that data is to the benefit of the consumers in terms of things that they can do in their homes, but there's another side to that data. Sometimes it's sold and commercialized by the industry.

Have you given any thought to some of the data localization provisions and other kinds of IT provisions or digital provisions in NAFTA? Has your industry done any thinking about the potential cost and benefit to industry, as well as the potential cost and benefit to consumers?

[Kevin Girdharry]

Yes. Our industry is definitely looking at it because appliances are more smart with IoT. Our issue is definitely trying to be proactive in terms of what data is being collected—it's data privacy—and following standard processes that are out there currently. NIST is one that comes to mind for me.

We've formed a manufacturers' task force within our association to look at that and to adopt the latest standards.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Does the localization of data figure into your industry's plan for the future at all? Is that something that you see as important for the protection of the privacy of your consumers, or is it something that you're not interested in?

[Kevin Girdharry]

It's definitely on the table. It's definitely something that we're looking at, and it's definitely something that's very important to our manufacturers as well.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Does that data tend to live where the product is manufactured? Would a lot of Canadian consumers who purchase appliances from your companies have their data stored in the U.S. or Mexico already, or does that data tend to live here in Canada?

[Kevin Girdharry]

That's something I could get back to you on.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

If you would follow up with the committee in writing, that would be great.

[Kevin Girdharry]

Sure.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Thank you very much.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have finished this round. Do the members have any additional questions?

Mr. Dhaliwal.

Any additional questions?

[Michael Kram, Conservative, Regina—Wascana, SK]

May I get a few in if there is time?

[The Chair, Liberal, Judy Sgro]

There is time.

If members have a few additional questions, please go ahead.

[Michael Kram, Conservative, Regina—Wascana, SK]

Thank you, although Mr. Dhaliwal spoke up first, so if he wants to go first, that's fine.

[The Chair, Liberal, Judy Sgro]

Do you have a question?

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

I have a question, but you can go ahead.

[Michael Kram, Conservative, Regina—Wascana, SK]

I have a couple of questions for Ms. Hatch.

Imagine for a minute that you're standing in a new Canadian home, complete with new appliances. Can you give us an idea of which of those appliances would disappear if the Energy Star became mandatory?

[Meagan Hatch]

It targets all appliances. Actually, “appliance” is not defined in it, so it could go beyond home appliances to electronics and anything under the Energy Star program right now.

[Michael Kram, Conservative, Regina—Wascana, SK]

Which appliances typically are under Energy Star?

[Kevin Girdharry]

It's refrigerators, freezers, room air conditioners, clothes washers, clothes dryers, air cleaners and things like that.

[Michael Kram, Conservative, Regina—Wascana, SK]

It's practically everything then.

[Kevin Girdharry]

Yes.

[Michael Kram, Conservative, Regina—Wascana, SK]

Okay.

I believe one of you said earlier that this would primarily affect the lower-cost appliances. Is that correct?

[Kevin Girdharry]

Yes. It's usually what we will call entry-level products: top-mount refrigerators, freezers and top-load washers.

[Michael Kram, Conservative, Regina—Wascana, SK]

Maybe richer people who buy the most expensive, top-of-the-line appliances wouldn't be affected as much, but it would affect the working-class folk who are living paycheque to paycheque the most.

[Kevin Girdharry]

It's a consumer choice. There will be more options available. Energy Star comes at a premium, so yes, it's usually the entry-level models that are not Energy Star.