Thank you, Mr. Chair.
Thank you to the committee for the invitation.
My name is Marie-France MacKinnon. I'm the executive director of the National Marine Manufacturers Association Canada.
As the leading association representing the recreational boating industry in our country, we have over 80 member companies, including renowned boat and engine manufacturers, marine accessories providers and service organizations.
The recreational boating industry is a vital component of our Canadian economy, providing over 80,000 jobs across Canada, particularly in rural areas, where these jobs can be a lifeline for local economies.
Our industry contributes over $9.2 billion to Canada's gross domestic product and generates $4.6 billion in tax revenues for municipal, provincial and federal governments.
However, this economic success is based on one fundamental principle: the right of Canadians to access their waterways.
The National Marine Manufacturers Association Canada advocates for a consultative process that actively involve national, regional and local recreational boating organizations. This participation is essential to ensure that the voices of recreational boaters are heard and taken into account when regulations are proposed.
We believe it's vital to prevent unnecessary regulation under the VORRs, and to seek non-regulatory, consensus-building solutions to local issues. We cannot have a situation that creates barriers to accessing our lakes, beautiful rivers and coastal areas, which all Canadians have the right to access. Regarding the upcoming regulatory changes outlined in the Canada Gazette, we're asking for a formal consultation process when local authorities request navigation restrictions on any of its waterways. We firmly believe we can find practical, non-regulatory solutions to local issues by working together—government, industry, local communities and recreational boaters. It's through collaboration and community consensus that we can enhance safety and enjoyment on all of our waterways, without a patchwork of needless red tape and restrictions.
We also need critical investment to modernize Canada's outdoor infrastructure in order to make recreational boating more accessible. Upgrading our aging marinas, boat ramps and public access points is essential for enhancing safety, promoting outdoor recreation and stimulating tourism.
These improvements provide a better experience for boaters, foster community and environmental management, and inspire a lasting appreciation of our natural resources for the benefit of future generations.
Finally, I want to take this opportunity to address a critical issue impacting our industry, the luxury tax, which you've heard about. This tax has severely affected the Canadian boating industry, leading to a crucial decline in sales of recreational boats over $250,000. Let's be clear. This downturn threatens jobs, the livelihoods within the sector and the hard-working Canadians who are proudly building Canadian products.
The Select Luxury Items Tax Act must be amended so that recreational boats are no longer subject to this unfair tax.
The repercussions of this tax extend beyond lost sales figures. They also lead to a loss of associated tax revenues for the government. CRA data from September 2022 to June 2024 show a total collection of $12 million. That's $40 million short of the PBO's own projection. As a result, people are buying boats in the U.S., not here in Canada. We're also losing critical tourism dollars, especially in B.C., Ontario and Quebec. This isn't a tax on luxury boats and Canada's richest. It's a tax on the middle class and on Canadian jobs that depend on this sector. It's a tax on small businesses, rural communities and local economies across this country.
Thank you for the invitation. We want to work together to ensure that all Canadians can access our waterways and create memories with their families on our beautiful bodies of water. Thank you.