Finance committee  Exemptions have not changed. We were just bringing it to...because those are the most popular items.

Finance committee  Well, the point is, does it really matter if the exemptions have changed if in fact consumers coming back into Canada are not declaring or being asked to declare the goods they buy? I think the question is how we monitor that and how we ensure that taxes are paid.

Finance committee  Good morning. Mr. Chair, members of the Standing Committee on Finance, we would like to thank you for inviting us to talk about the retail sector's concerns and recommendations regarding Bill C-38. You have in front of you today a copy of the brief that was recently presented to the Standing Senate Committee on National Finance relating to the study on the potential reasons for price discrepancies in respect of certain goods between Canada and the United States, given the value of the Canadian dollar and the effect of cross border shopping on the Canadian economy.

Industry committee  It's an excellent question. I think I would have to agree with Jim. We found that with more international players in the marketplace, Canadian companies in retail started thinking more seriously about investing in technology. I use the term “technology” generally here, but even specifically in e-commerce, they were not as aggressive.

Industry committee  I know. I'm trying really hard though.

Industry committee  I think it's terrible. I don't think there's much that needs to be said, especially in an environment where the merchant has no choice. The problem here is that the customer sees the advertising: if you use this product you'll get five points instead of one, or you'll get points, but if you use this other product you won't.

Industry committee  It's always a pleasure.

Industry committee  It puts them at a huge competitive disadvantage. While everyone does not always agree, there is a consensus that overcharging is not a good business practice. Actually, even when the customer pays 5¢ instead of 1%, that cost is always included in the product's selling price, just as the employer's rent and labour costs are.

Industry committee  I loved that opening. He just opened the door for me here—

Industry committee  It is very difficult, then, to justify why VISA and Mastercard come before this committee--and before finance committees in the past--and say “Our VISA debit is 1% versus 2¢”. MasterCard.... That's the reason why retailers said no. That's why there's a code of conduct. There's no reason.

Industry committee  Right now, we are studying the U.S. model. There, universities and colleges have these labs where they encourage students enrolled in bachelor's or honours programs in technology to do a work term in a small business. This is done through government grants, and those could be at either the provincial or the federal level.

Industry committee  Thank you, Ms. LeBlanc. Actually, you already mentioned the obstacles. Usually, the problem has to do with money, especially a lack thereof. The budgets that small and medium-sized businesses have at their disposal are limited, especially in retail. We are talking about a margin of 3% or less.

Industry committee  I think government has done quite a bit of good work in this area. Canada has surprised many other jurisdictions in moving forward with a voluntary code of conduct. I must admit, we wanted the code to be involuntary, not voluntary, but we also saw that it was achieving the goals.

Industry committee  I'm voting for myself.

Industry committee  I'm sure. I know you don't, but I will.