Crucial Fact

  • His favourite word was federal.

Last in Parliament November 2005, as Bloc MP for Portneuf (Québec)

Lost his last election, in 2006, with 26% of the vote.

Statements in the House

Food and Drugs Act October 7th, 2005

Mr. Speaker, it is a pleasure for me to rise today to speak to Bill C-28. In doing so, I will try to warn members of this House, particularly those on the government side, about certain aspects of this bill which we think introduce some safety concerns in the Food and Drug Act.

First I would like to repeat the purpose of this bill to put this debate in the proper context. Bill C-28 is designed to provide the Minister of Health with the authority to issue interim marketing authorizations for foods that contain certain substances at specified levels, and to exempt the foods from the applicable requirements of the Food and Drug Act and its regulations relating to the sale of those foods.

That is already a problem for us. We are talking about exempting certain foods from the applicable requirements relating to the sale of those foods. The substances involved are agricultural chemicals or their components or derivatives, food additives, veterinary drugs, and pest control products. Our understanding is that, based on numerous scientific studies, these products are used on various crops and in the production of foods and drugs. As was mentioned earlier, we all overwhelmingly recognize that this is no problem. But it is important that these scientific studies exist, in order to ensure that there is no risk.

Admittedly, the proposed amendments, in part, are in response to concerns raised by the Standing Joint Committee for the Scrutiny of Regulations regarding an administrative process put in place by Health Canada, and I quote:

—to allow Canadians faster access to safe and nutritious food products in specific circumstances.

That has been a source of concern for the Bloc Québécois for quite some time. And one of the main questions we ask ourselves is: Why is it that, at times, Health Canada appears to be unable to resist the pressure from major pharmaceutical and food companies which are in hurry to have their new products approved? Far from alleviating this concern, Bill C-28 exacerbates it by effectively enabling the minister to issue interim authorizations.

What is worrisome to the public in this bill is that Health Canada is increasing the examples of negligence. For instance, in the late 1990s, Health Canada caused an outcry when it wanted to authorize a recombinant bovine growth hormone despite opposition from scientists. In the end, the product's use was not approved.

We could easily have been in the same situation this morning had Bill C-28 passed, which begs the question: if it had passed, would the minister have authorized this product or would he have waited? We do not have the answer to that question, but Bill C-28 would have allowed him to do so. Who knows what the consequences would have been?

Preferring to take risks rather than precautions, the government is agreeing to approve drugs or food products without obtaining all the scientific data required by law. As a result, it is running great risks to the public. This is very important. In order to ensure human food safety, all the scientific data must be obtained. We know that far too often, when it comes to food and drugs, there are unanticipated long-term effects. We have seen this happen. That is why it is important to conduct a thorough scientific assessment of the products put on the market.

Accordingly, the Bloc Québécois has long wanted Canada to follow the European example of taking precaution on food products, drugs and pesticides. If such a principle were in place, GMOs would be labelled and the use of products with unknown consequences would be eliminated.

In our opinion, this bill gives the minister a lot of power. It is as if we were playing Russian roulette with products that could have extremely harmful effects on human health not only in the short and medium terms, but also in the long term.

Understandably, we have two major objections with Bill C-28. As I mentioned a couple of times since the beginning of my presentation, our first objection relates to the power given to the minister which is, as I understand it, a discretionary power to some extent. While this legislation does indeed give to the minister the power to issue interim marketing authorizations, the minister must base his decisions on scientific criteria. He cannot make such a decision merely because of the pressure put on him by a given industry or marketing sector.

The criterion to the effect that the food must not be harmful to the health of the purchaser or consumer, as stated in clause 30.2(1) of the bill, leaves a lot of room for interpretation, and we feel it would be important to set limits in this regard.

Of course, we are talking here about public confidence, not only in the government's regulations on food and drugs, but also in the food that ends up on the table. Indeed, the public must have total confidence in the food that it consumes on a regular basis, but also in drugs and pharmaceutical products. The latter are supposed to be beneficial to people who need them for the relief of various symptoms, or to deal with various diseases. Should these products worsen these people's condition, this would result in a loss of confidence that would be very hard to regain.

This is why it is important to reassure Quebeckers and Canadians on the safety and quality of the food that they consume. The minister should be required to inform the public of the reasons why he agrees to issue an interim marketing authorization. As I mentioned earlier, Bill C-28 would allow the minister to issue such authorizations by relying on criteria that leave a lot of room for interpretation.

Not only would it be absolutely essential that the minister base his decision on sound scientific studies, as I was saying earlier, but should he not do so, he should be required to explain the reasons for issuing these interim marketing authorizations and to specify which lobbies approached him regarding a particular product. This is necessary to ensure public confidence in food safety. That is why it is so important.

People's perceptions weigh very heavily in matters where safety and confidence are an issue. I would certainly not want to presume—and I certainly do not want to give that impression—that the minister would make decisions without proper consideration. I would never imply such a thing. We can only presume that an individual who is responsible for making such decisions will act in good faith.

However, we know full well that some people can be very convincing for all sorts of reasons. Before becoming a member of Parliament, I worked as a sales representative, as some of my colleagues may have done also. I would have never dared lie to one of my clients, but I certainly did my best to point out the positive aspects of the products I was selling.

This discretionary power granted to the minister needs to be properly framed. Unfortunately, Bill C-28 does not give any assurances in that regard.

While it is indeed unfortunate, it is also very typical of this government. It often offers us half-measures or expeditious measures. Surprisingly, on a certain number of issues, it does not seem to be able to take all the necessary precautions or make the necessary decisions, but in other cases, it is overzealous.

I must take a minute here to remind members briefly of a speech I made yesterday.

Yesterday, in my speech about tax havens, I clearly demonstrated how, over the years, the concerted action of the government has brought us to a point where a number of businesses are not paying their fair share of taxes. This situation was brought about by a number of very specific measures.

Unfortunately, in some ways, Bill C-28 is only a half measure and of no reassurance to the Canadian public. It opens the door to certain almost arbitrary decisions which might—though we hope not—endanger the health of our fellow citizens.

That is why, having analyzed the proposed mechanism and heard what civil society organizations have had to say, we will be opposing Bill C-28. We in the Bloc Québécois—and this is a deep-seated conviction—are of the opinion that consumer confidence is an essential component of food marketing. The advantages of an interim marketing authorization process like the one proposed in Bill C-28 are likely to be outweighed by the concerns it raises.

In an area like this one, where the safety of our fellow citizens is concerned, it seems to me that prudence must be the watchword, not speed. Any error could have very unfortunate consequences, and the health of those we purport to serve could suffer seriously as a result.

Extreme precaution is in order. Unfortunately, Health Canada has not addressed all the concerns relating to new product approvals. A mechanism such as this, which involves risk management rather than the principle of precaution, is liable to make consumers more wary. That is the situation. Instead of taking precautions to ensure all the necessary scientific studies have been done, it is a matter of risk management.

I will not, thank the Lord, ever be health minister. I would never want to have to manage that risk. As I said earlier, we can only assume the right decisions will be reached. What we need to do is to ensure they are, based on all necessary scientific studies. The opinion of one individual cannot be relied on, no matter how well-intentioned that individual may be.

The first objective of the Food and Drug Act is to ensure the quality of food and that it does not represent health risks. The health of Quebeckers and Canadians is paramount. Any authorization of new products should be done under the precautionary principle. Unfortunately, Bill C-28 does not include this principle.

This week, the government made a number of announcements. To be indulgent, I would say that these are an election ploy. Today, third reading of Bill C-28 raises deep concerns among us. Let us simply imagine what the reaction would be if the minister did not have all the data at his disposal and made a mistake that would put the health of our citizens at risk. I would not want to carry this burden on my shoulders. I would not want to have to make such a decision.

It is incredible—I was mentioning this earlier during question and comment period—to see that our colleagues from the Conservative Party support this bill, when they regularly defend good citizenship and safety. Yet, in Bill C-28, we find exactly the opposite of many principles that they normally support. I have to tell you that I was a little astounded earlier to hear them say they would support Bill C-28. I still have hope, since our NDP colleagues will certainly speak soon on this bill.

I hope that they will see the risks associated with the bill. If they do not, I invite them to talk to us. That goes for my Liberal and Conservative colleagues as well. I invite them to meet with me or with my colleague from Hochelaga who, I must say, knows the bill a lot better than I do, having spent many hours studying it in detail.

I was saying that the bill does not meet many of our concerns and that it seemed to be an amalgamation of half measures. That is unfortunate but not really surprising since the government is an expert in half measures. That is too often how it responds to situations.

The government has just introduced a federal assistance plan to alleviate the effects of high oil prices. We were very happy since it borrowed large parts of the package we proposed only a few weeks ago when the Minister of Transport was saying the government could not do anything. Only two weeks later, we see him using major parts of what we proposed. Unfortunately, the plan is full of half measures because it does not reach the right persons. There is nothing in it for taxi drivers, farmers and truckers. I know that this is not the object of our debate, but I thought it was important to give it as an example of half measures too often introduced by this government.

So Bill C-28, far from improving our fellow citizens' security, gives rise to concerns. How can we guarantee that a new product is perfectly safe for consumers? In the end, people will have to trust the good judgment of the Minister of Health. But I do not think that that is enough even though that minister does his best and acts in good faith. We think that Bill C-28 should be defeated. Let us say that the status quo would be better than the new regime proposed in Bill C-28.

Food and Drugs Act October 7th, 2005

Mr. Speaker, I am somewhat disappointed to hear our Conservative colleagues say that they will be supporting Bill C-28. There has been a lot of talk this morning about the importance of food safety.

Is there not some concern that, under pressure, the government may be tempted to expedite the process in some cases so that certain products can be marketed more quickly? I understand that the need to ensure the health and safety of consumers is mentioned in the bill, but scientific studies are sort of being put aside. Is that not cause for concern?

Amendment to Income Tax Act Regulations October 6th, 2005

Madam Speaker, we do have to make sure that the provisions of the Income Tax Act and regulations are not incompatible with the tax treaty signed with Barbados.

Based on an assessment by a reporter for Walrus magazine, which he himself described as extremely conservative, CSL International apparently saved almost $103 million because of this provision. That is the kind of thing to look out for. It is imperative that the tax treaty signed with Barbados be honoured. Some accounting trick involving the Customs and Revenue Agency must not be allowed to come and invalidate these provisions. It is important that everyone in society, whether individuals or corporations, pay their fair share of taxes.

Amendment to Income Tax Act Regulations October 6th, 2005

Madam Speaker, I am a little sorry to have to say this to the hon. member, whom I really admire, but he did not get it at all.

The idea is not to repeal our tax agreement with Barbados, or any other tax treaty. This agreement provides that when money is brought back to Canada, the people involved must pay their fair share of taxes. The idea is to ensure that the Income Tax Act regulations do not unfairly override certain provisions of that tax agreement.

We do not want to repeal these agreements. Far from it. Through this motion, we want the government to look at the critical need to ensure that what it does with its right hand is in compliance with what it does with its left hand.

Amendment to Income Tax Act Regulations October 6th, 2005

moved:

That, in the opinion of the House, the government should amend the Income Tax Act regulations so that they do not override certain provisions of the tax agreement between Canada and Barbados allowing Canadian businesses to use their subsidiary in Barbados to avoid paying taxes in Canada.

Madam Speaker, it is an honour to have the opportunity to speak to this issue that is so important to the integrity our country's tax base. It must be shown how the current Prime Minister, sometimes through his inaction but mostly through very specific measures he took when he was finance minister, managed to arrange things so a good number of businesses, particularly in the shipping industry, avoid paying taxes.

First I will read the motion, which is as follows:

That, in the opinion of the House, the government should amend the Income Tax Act regulations so that they do not override certain provisions of the tax agreement between Canada and Barbados allowing Canadian businesses to use their subsidiary in Barbados to avoid paying taxes in Canada.

The purpose of this motion is to amend the income tax regulations so that they do not override certain provisions of the tax agreement between Canada and Barbados. These regulations currently allow Canadian businesses to repatriate income without paying taxes in Canada, which is a serious threat to our country's tax base. Moreover, this violates the spirit of these tax agreements, the purpose of which is to avoid double taxation. It so happens that in tax havens like Barbados, where the tax rate applied to foreign businesses is ridiculously low, not only do these businesses avoid double taxation, but they avoid taxation altogether.

As members of the House, we cannot turn a blind eye and ignore this reality when our constituents pay taxes and some businesses avoid doing so by using tax havens.

The necessity to look into this issue right now has to be put into perspective. Various measures taken by the current Prime Minister, especially when he was finance minister, are now allowing a number of businesses in the shipping industry, among others, not to pay their fair share, whereas the vast majority of taxpayers do pay their fair share of taxes.

The Office of the Auditor General has provided various opinions on this matter over the past 10 years or more. Since then, instead of getting better, things have gotten worse in many regards.

As early as 1992, the Auditor General brought to the attention of the public the problem posed by tax havens. In chapter 2 of his report, he wrote, and I quote:

Tax arrangements for foreign affiliates are costing Canada hundreds of millions of dollars in lost tax revenues

Avoidance mechanisms also have a negative effect on the equity and integrity of the tax system and on public attitudes toward voluntary compliance. Access to such mechanisms is usually limited to those who can afford expensive advice. Those who cannot, therefore, may be denied equitable or even-handed treatment.

In 1993, when the Standing Committee on Public Accounts presented its 12th report to the House, it reiterated a number of the recommendations originally made by the Office of the Auditor General. The committee said, among other things, that:

—care must also be taken to keep the tax system fair and equitable, and that there is no reason, in our tax regime, why income earned in a tax haven should be given preferential treatment over income earned in Canada and subject to Canadian tax.

What happened in the 13 intervening years? The current Prime Minister has not simply been remiss in implementing the recommendations the Auditor General has repeatedly made to him over more than a decade, but we have seen carried out a long-planned measure to foster the use of Barbados as a tax haven.

Backtracking a bit, we have found a great example to illustrate what we mean: a shipping company by the name of CSL. In 1992, CSL created CSL International, which was at that time nothing but a shell company incorporated in Liberia and responsible on paper for all of CSL's international activities. CSL International is involved in very little actual shipping. It is a holding company that owns other companies, and it is those companies that are involved in shipping. It is important to make it clear that, at that time, it was possible to bring back to Canada, tax-free, the profits generated by a Liberian subsidiary of a Canadian company.

As I have said, in 1992 the Auditor General brought the problem of tax havens to public attention for the first time.

What was the Finance Minister's reaction in 1994? To bring down his first budget and to state in it that he intended to put an end to the use of those havens. Such a noble intention.

However, the budget implementation bill and the regulations that came into effect in 1995 left one loophole available, and it is easy to guess where it was: Barbados.

That bill, in clause 5907 of section 11.2, renders inoperable the section of the tax convention which excluded “international business companies”, by setting out a series of criteria by which a company could be considered non-resident in Canada and thus not subject to taxation by Canada.

So that was in 1994, and the legislation was enacted in 1995. Just by pure chance, 1995 was the year CSL moved to Barbados. What an odd coincidence. The Auditor General's office did not let this go unnoticed. In 1996 he again sounded the alarm on tax havens, for a second time.

This is what he said:

The results of Revenue Canada's program to combat it indicate that avoidance continues to pose a serious threat to the tax base.

So the Minister of Finance of the day responded to the report by stating the government's intent to implement these recommendations promptly and in their entirety.

But far from trying to counter the exodus of capital to Barbados by terminating its convention with this tax haven, Canada encouraged it by signing an agreement to promote and protect foreign investment with Barbados in 1996.

What I am trying to present today is a series of events that will help us understand what we are talking about.

In 1998, the Minister of Finance introduced Bill C-28, the Budget Implementation Bill. One of the clauses in the bill concerned shipping. Henceforth, holding companies incorporated abroad and owning companies involved in international shipping would be considered as involved themselves in international shipping. In this way, they would be exempt from Canadian taxes, even when their profits were repatriated. This clause applied retroactively to 1995, the year when, as if by chance of course, CSL International set up shop in Barbados.

This bill affected only a small number of taxpayers. At the time, the Canadian Shipowners Association had only 11 members, of whom at most eight were involved in international shipping, including CSL. By the way, when he appeared before the Finance Committee on February 10, 1998, the director general of the Tax Legislation Division of the Department of Finance suggested that Bill C-28 could once again apply to a company like CSL International.

Still in 1998, the Auditor General was concerned for a third time. He said:

—the increasing use of tax havens and the growing number of bilateral income tax conventions mean that ... failure to take urgent action on these matters will severely limit Revenue Canada's ability to manage the risks to Canada's tax base that international transactions represent.

It is apparent, therefore, that between 1992 and 1998, the Office of the Auditor General was already paying the necessary attention to this matter, something that the Minister of Finance at the time was not doing.

Let us advance a little in time to 2001. The Auditor General raised the issue for the fourth time in his report in February 2001, saying that:

One of the biggest threats to the tax base lies in the international activities of Canadian taxpayers, particularly the use of tax havens.

How did the Minister of Finance respond? In 2002, the government introduced Bill S-2, the Tax Conventions Implementation Act. Far from terminating the 1980 tax convention between Canada and Barbados, Bill S-2 simply renewed it by amending its schedules in 2002.

The Office of the Auditor General took up the issue for the fifth time.

Although Canada amended its rules in 1995, little has changed. Tax havens continue to attract Canadian money. For example, Statistics Canada reports that Canadian direct investment in Barbados has increased from $628 million in 1998 to $23.3 billion in 2001—over a 3,600 percent increase—

In 2001, investment reached the modest amount of $23.3 billion.

Barbados must be an extraordinary place to invest in. I am sure that economic activity there is rolling along at breakneck speed.

According to data from the Canada Customs and Revenue Agency, in 2000, Canadian corporations received $1.5 billion in dividends from corporations in Barbados.

As you can see, Barbados is of great concern to the government. The question is whether the then finance minister and current Prime Minister is concerned for the right reasons.

Barbados is not a tax haven as such. Both citizens and companies pay 40% in income tax.

Tax laws in Barbados include a special section for International Business Corporations, or IBC. An IBC is a company registered in Barbados that conducts most of its business activities abroad. There are very few conditions to meet: the company must be registered in Barbados, have its headquarters there, hold its board of directors meetings there—a conference call will suffice—keep its board meeting minutes there and make a Barbadian one of its directors. This director may, however, by unanimous decision of the shareholders, have no powers. Registration fees are U.S $390, plus $250 annually.

These companies are then subject to a regressive tax, from 2.5% down to 1%, depending on revenues. They are exempted from tax on capital, from exchange controls, and from tax on transactions.

Fifteen minutes to discuss this issue is excessively short. Therefore, I will conclude quickly by saying that the government must not only review the terms of the Canada-Barbados tax convention but also prevent companies from using dummy companies abroad to avoid paying taxes here.

CSL, for example, must pay its taxes to Quebec and Canada. It must pay its fair share; it must not jeopardize Canada's fiscal balance; and it must not use the power of the government to favour certain specific businesses.

Bank Act October 5th, 2005

Madam Speaker, I have already, in this House, told my colleague from Scarborough—Guildwood how much I like having an opportunity to debate various issues with him and to show him that, too often, he contradicts himself. However, I must admit today that following this most interesting speech on Bill C-57, it would seem that, this time, for once, the government is on the right track, which I must say does not happen often enough.

Indeed, there seem to be a number of very interesting measures in Bill C-57. It should be understood, however, that I am still not convinced that this bill cannot be improved. But the government is certainly on the right track. That being said, the member mentioned earlier a number of provisions dealing with institutions that have between $1 billion and $5 billion in equity. He was talking more specifically about cooperatives. He mentioned in his speech that other types of institutions could also be exempted from these obligations.

Could the member elaborate on those other types of institutions that could be exempted from the obligations set out in this bill?

Biennale du lin de Portneuf September 30th, 2005

Mr. Speaker, the first international Biennale international du lin de Portneuf is nearly over. This is an event showcasing linen through the arts, design, the environment and education.

Activities were held at the Caserne du lin interpretation centre and workshop in Saint-Léonard, at the Marcoux mill in Pont-rouge, the Vieux Presbytère and La Chevrotière mill in Deschambault-Grondines. The international event was attended by artisans and artists from Quebec, France and Belgium.

Colette Matte of Cap-Santé carried off top honours in the textile art category for her work “Mouvement de l'âme”, a light-reflecting pillow of linen and glass.

Congratulations to the partners and members of the organizing committee, in particular: Gilles Girard, chair; Karine Germain, coordinator; Donald Vézina, coordinator of the Association du patrimoine de Deschambault; and Michel Robichaud, designer and spokesperson for the biennale.

Thank you for this first edition, and I am sure that you are enthusiastically working on ideas for the second edition of Portneuf's international biennale in celebration of linen.

National Defence June 27th, 2005

Mr. Speaker, I am asking the minister not to wait 40 years, as was the case with Gagetown.

Now that we know that the contamination is about to spread to a Quebec City suburb, what steps does the minister intend to take in order to adequately protect the public's health and the local environment?

National Defence June 27th, 2005

Mr. Speaker, far from being resolved, the contamination of water in Shannon by solvents used on the Valcartier base is spreading and is apparently now threatening the groundwater in Val-Bélair and possibly the safety of individual wells.

If everything in Shannon is business as usual, as the Minister of National Defence says, why is he delaying the publication of the report in his possession on the extent of the contamination in the region?

National Defence June 17th, 2005

Mr. Speaker, the attitude of the Minister of National Defence is deplorable. While the people of Shannon are justifiably worried about the health effects of contaminated water, the minister is keeping a preliminary report on the extent of that contamination secret.

Can the minister understand that the people of Shannon consider access to the preliminary report at least as important, if not more so, than the solely material contributions the minister wants to restrict his role to? Will the minister release this report?