The Committee’s witnesses shared their views on a range of issues related to the communities in which people live and businesses operate. For example, they spoke about national economic development as well as the development of particular sectors and geographic regions, infrastructure, energy, the environment, arts and culture, housing, and national security and crime.

ECONOMIC DEVELOPMENT

General

In its appearance before the Committee, Financial Executives International Canada advocated business incentives that would encourage infrastructure investments, including in equipment that would increase efficiency and decrease pollution, as well as initiatives that involve the community, such as public-private partnerships. It also called for a review of accelerated CCA rates to encourage businesses to increase their investments in capital that will improve productivity.

The Greater Kitchener Waterloo Chamber of Commerce encouraged the government to extend the FedDev Ontario program beyond its original five-year mandate, while the Toronto Board of Trade urged the government to work in partnership with it, perhaps through the FedDev Ontario program, to establish an initiative aimed at developing particular industry “clusters” in the Toronto region.

In commenting on the benefits of diversification of products and production in the economy, Desjardins Group suggested that diversification is required in terms of both geography and corporate structure, and encouraged the government to consider alternative corporate structures — such as co-operatives — to a greater extent when making program and policy decisions. The Canadian Union of Public Employees stated that more support should be given to industries that add value to goods before they are sold, rather than to those that sell raw materials.

Sector-specific

In speaking to the Committee about the ability of grain farmers to compete internationally, the Grain Growers of Canada requested that the federal government adjust regulations for the Canadian Grain Commission with a view to reducing costs to farmers, facilitating grain exports and modernizing the process through which breeders of wheat register a new variety federally.

In discussing the costs incurred since 2007 by Canadian cattle producers, processors and veterinarians associated with the removal of specified risk material, the Medicine Hat and District Chamber of Commerce requested that the government work with the cattle industry to implement regulatory reforms that would offset these costs and harmonize regulations with the United States.

The Grain Farmers of Ontario said that, in 2010, 70% of the funds provided through the Growing Forward framework for agricultural support were used for investments in Western Canada, the largest of which was specific to crops grown there. Consequently, it stated that the Growing Forward 2 framework should ensure equity among producers of different agricultural commodities as well as among the provinces; in its view, the government should establish clear program objectives and guidelines, with the aim of ensuring equity. The Canola Council of Canada suggested that the Growing Forward 2 framework should be focused on research, market development and market access.

In the context of intergenerational farm transfers, the Fédération de la relève agricole du Québec urged the government to implement incentives that would encourage farmers to transfer farm ownership to family members; in its view, incentives could include the creation of a transfer savings account that would be similar to a registered education savings plan, renewed funding of the Canadian Young Farmers’ Forum beyond 2013, and a relaunch — by the Canadian Young Farmers’ Forum — of the National Future Farmers Network, which was discontinued after the federal minister who founded the program was defeated in the 2011 election. The Grain Growers of Canada and the Fédération de la relève agricole du Québec asked the government to consider a capital gains exemption for farmers in the case of inter-generational transfers of farm ownership.

Figure 7 – Canadian Farm Owners, by Age Group, 1991–2011

 

Source:       Prepared using data from Statistics Canada, Census of Agriculture, 1991 to 2011.

The Forest Products Association of Canada and the Grain Growers of Canada urged the government to conduct a review of rail service in Canada with the aim of allowing shippers to have a better opportunity to negotiate, with the railways, on issues such as reciprocal penalties. Stating that a one-sided penalty system is in place, whereby shippers are charged penalties for such incidents as delays while the railways are not charged for similar occurrences, they advocated the implementation of a fair dispute resolution and arbitration process.

As well, the Forest Products Association of Canada urged the government to support renewal of Canada’s forest sector and the Investments in Forestry Industry Transformation program. It also believed that existing federal procurement practices should be modified in order to increase the proportion of “next-generation” forest products — such as biofuels — purchased by the government.

The Green Budget Coalition highlighted the federal tax incentives that are available to the Canadian mining sector, and urged the government to modify the Canadian Exploration Expenditures income tax deduction to make mining companies that are successful in their exploration activity ineligible for the deduction. In its view, the accelerated CCA rates that are currently available for certain depreciable properties associated with mining activity should be ended and the METC for flow-through shares should not be renewed.

Northern Canada

The Inuit Tapiriit Kanatami told the Committee that projects in Canada’s North must strike an appropriate balance among economic, environmental, social and cultural objectives. It urged the government to engage with Inuit communities in an active manner.

INFRASTRUCTURE

Federal Infrastructure Plan

The Canadian Construction Association, Engineers Canada, the Federation of Canadian Municipalities, the Toronto Board of Trade, the Société de transport de Montréal and the Canadian Union of Public Employees informed the Committee that they support a continuation of long-term federal funding of the construction and repair of critical public infrastructure, which would aid the economic recovery and help to maintain Canada’s competiveness as well as the quality of life of Canadians.

Figure 8 – Index Scores for Global Competitiveness and Quality of Overall Infrastructure, Selected Countries, 2012–2013

Note:          According to the World Economic Forum (WEF), the Global Competitiveness Index (GCI) Score measures the microeconomic and macroeconomic foundations of national competitiveness. The WEF defines competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country. The GCI Score calculation is based on the weighted average of 12 pillars of competitiveness: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. The GCI Score ranges from 1 to 7.

Source:       Prepared using data from World Economic Forum, The Global Competitiveness Report 2012–2013.

In particular, they supported the creation of a federal long-term national infrastructure plan to replace the $33 billion Building Canada Plan that is set to expire on 31 March 2014, and urged an announcement of the Plan’s successor as soon as possible in order to provide certainty; other levels of government and the private sector would provide matching funds.

The Federation of Canadian Municipalities, the Toronto Board of Trade and the Canadian Union of Public Employees emphasized the need to address municipal infrastructure challenges. The Federation of Canadian Municipalities underscored the need for flexibility in the design of federal-municipal infrastructure programs in order to meet the goals of different cities and communities.

Furthermore, the Toronto Board of Trade urged the government to introduce a mechanism to increase the value of the federal Gas Tax Fund in accordance with rising costs, while the Société de transport de Montréal proposed that federal excise taxes on fuel be transferred to the Gas Tax Fund.

In highlighting that the viability of mining projects may be linked to the availability of core public infrastructure, the Mining Association of Canada advocated more public-private investment in transportation and energy facilities.

The Canadian Union of Public Employees supported the elimination of incentives and requirements to engage in public-private partnerships. According to it, these incentives and requirements increase the burden on future taxpayers.

Administration, Partnerships and Tendering

The Canadian Construction Association, the Federation of Canadian Municipalities and Merit Canada spoke to the Committee about improved administration of federal infrastructure programs. The Canadian Construction Association and the Federation of Canadian Municipalities highlighted the need to reduce “red tape” in order to avoid costly project delays; the former cited, in particular, high transaction costs — such as legal agreements — associated with public-private partnerships.

According to the Canadian Construction Association, Canadian firms are generally at a disadvantage when competing with European contractors, which are typically in a better financial position. From that perspective, it argued that different financial arrangements in respect of public-private partnerships should be explored, and supported an expanded mandate for Export Development Canada.

Merit Canada focused on the need to tender federally funded infrastructure projects in an open and competitive manner. It argued that union-only worker arrangements should not be allowed, as this approach increases costs and disadvantages a majority of the workers in the construction industry.

First Nations Communities

The Green Budget Coalition told the Committee that the economic health and quality of life of First Nations communities could be improved by integrating green infrastructure considerations into program policies. While it recognized that progress has been made in many First Nations communities, it said that significant challenges remain; from that perspective, it urged investments in water and waste water systems as well as in residential and non-residential energy conservation and efficiency programs. Also, it indicated that diesel fuel consumption could be reduced through increased use of green energy.

Transportation

In their appearance before the Committee, the Toronto Board of Trade, the Société de transport de Montréal, the Agence métropolitaine de transport and the Canadian Union of Public Employees identified such problems as congested highways and delays in the transportation of goods. Consequently, they underscored the need for federal funding of transportation infrastructure and urged the government to make transportation infrastructure a key element in the successor to the Building Canada Plan.

The Agence métropolitaine de transport advocated the creation of a $1 billion public transport investment fund over 7 to 10 years, and argued that the eligibility of transportation projects for existing infrastructure programs should be maintained; it also urged the government to introduce economic development guidelines for public transit through a 10-year action plan. The Société de transport de Montréal supported federal transportation infrastructure funding that is dedicated, recurring and indexed to inflation.

ENERGY

Diversifying Energy Use in Transportation

In speaking to the Committee, the Canadian Natural Gas Vehicle Alliance, the Canadian Gas Association and the Canadian Association of Oilwell Drilling Contractors supported a larger federal role in expanding the use of medium-duty and heavy-duty natural gas vehicles in Canada in order to reduce carbon emissions, take advantage of abundant North American natural gas supplies and benefit from relatively lower natural gas prices when compared to other transportation fuels, such as gasoline and diesel. According to the Canadian Natural Gas Vehicle Alliance, with the United States having already started to develop its natural gas vehicle market, including the construction of liquefied natural gas stations and transportation corridors, federal support is needed in order that Canada does not miss opportunities to diversify energy use in the transportation sector.

Figure 9 – Transportation Energy Use in Canada, by Fuel Source, 2009 (petajoule)

Source:       Prepared using data from Natural Resources Canada, Comprehensive Energy Use Database Table.

The Canadian Natural Gas Vehicle Alliance and the Canadian Gas Association highlighted the need for targeted federal incentives, including tax credits and accelerated depreciation, aimed at increasing the affordability of natural gas medium-duty and heavy-duty vehicles, which are more costly than gasoline or diesel vehicles. According to the former, the federal fiscal cost of incentives could be financed by the introduction of a natural gas transportation levy.

Energy Strategy

The Canadian Association of Oilwell Drilling Contractors, the Calgary Chamber of Commerce and the Alberta Chambers of Commerce spoke to the Committee about the development of energy resources within a Canadian energy strategy. The Canadian Association of Oilwell Drilling Contractors advocated a natural gas strategy to promote and expand the use of natural gas, while the Calgary Chamber of Commerce and the Alberta Chambers of Commerce argued that an energy strategy is needed in order to encourage value-added domestic production and diversification of energy export markets across a range of renewable and non-renewable natural resources. The Alberta Chambers of Commerce also highlighted the need to expand pipeline capacity for marine shipments in order to address the current price discount that exists in Western Canadian oil commodities due to the lack of access to world oil markets.

Renewable Energy

The Canadian Association of Social Workers and the Canadian Renewable Fuels Association told the Committee that the government should increase its support for renewable energy and related technologies.

In particular, the Canadian Renewable Fuels Association advocated additional federal assistance to promote renewable diesel production in Canada, including through an extension to the ecoENERGY for Biofuels program for new renewable diesel production projects to 31 March 2017 and for existing projects that were not substantially completed by the program’s September 2012 deadline, as well as through the introduction of additional program conditions, such as an obligation for applicants to prove the financial viability of their projects. As well, it proposed an operating incentive of 15¢ per litre for next-generation ethanol projects funded through unused revenue remaining in the ecoENERGY for Biofuels program, which it estimated to be approximately $50 million.

Energy Retrofits

In speaking to the Committee about the ecoENERGY Home Retrofit program for households, the Canadian Union of Public Employees urged the government to introduce a similar plan for public-sector buildings.

ENVIRONMENT

Enforcement Information

In their appearance before the Committee, Ecojustice Canada and the Green Budget Coalition advocated better access to, and more transparency in respect of, federal environmental enforcement and compliance information. The former indicated that this access and transparency would be good public policy and would assist investors contemplating the purchase of an asset or an entity.

Specifically, they proposed the creation of a searchable online database that would include environmental enforcement and compliance information. According to Ecojustice Canada, the database would not entail any marginal federal cost, as this type of information would no longer be the subject of access-to-information requests.

Regulatory Reform

The Canadian Energy Pipeline Association and the Canadian Mining Association spoke to the Committee about environmental regulatory reform, with the former underscoring the need for the federal government to commit sufficient resources to implement the recently legislated changes to the environmental assessment process, including in respect of the policies and regulations that it believed have not been completed. The latter noted that uncertainty exists about how different authorities will work together to implement the legislation, and urged the government to implement a functional permitting system for the Species at Risk Act, as well as to modernize and complete the environmental legislation governing Canada's North.

Safety and Mitigation

Ecojustice Canada told the Committee that the current $40 million legislated cap on liability for offshore drilling in cases of a major spill is insufficient, considering that the 20 April 2010 oil spill in the Gulf of Mexico was estimated to cost approximately $40 billion in damages and remediation costs. From that perspective, it urged the government to raise the current cap so as to be consistent with that in other jurisdictions, such as the United States and the United Kingdom.

The Canadian Energy Pipeline Association argued that the biggest safety risk to the pipeline industry is damages incurred by third parties and noted that, while extensive regulatory tools exist to address pipeline integrity, Canada lacks the legislative means to enforce the physical protection of pipelines from third parties. It urged stronger federal regulation that would require any party that is planning to dig near a pipeline in Canada to call the pipeline operator before digging occurs, with fines imposed if this requirement is violated.

Carbon Mitigation and Management

The Canadian Renewable Fuels Association, the Greater Kitchener Waterloo Chamber of Commerce and the Calgary Chamber of Commerce spoke to the Committee about methods for reducing greenhouse gas emissions, indicating their preference for the current regulatory emission reduction approach applied on a sector-by-sector basis; they did not support a carbon tax as a means of reducing these emissions.

The Green Budget Coalition shared its view that putting a price on carbon, through either a carbon tax or a cap-and-trade system, is the most efficient and cost-effective method of reducing greenhouse gas emissions. Canadian Manufacturers & Exporters said that an increased investment in new technology is the best approach, and preferred programs that provide companies with an incentive to invest in carbon-reducing technologies; it did not support approaches involving regulation or a carbon tax.

Climate Change Adaptation

In its appearance before the Committee, the Canadian Climate Forum identified the need for an increased policy focus on the potential impacts of climate change on key sectors and regions in Canada, including the energy and agriculture sectors as well as the Arctic region. It emphasized climate adaptation, and spoke about investments in research facilities, training, and information networks that can leverage different resources across Canada and through international partnerships. According to it, the government should create a climate change weather disaster risk-reduction strategy; the strategy should focus on investing in critical infrastructure to reduce economic and societal risks associated with climate change.

Conservation

The Green Budget Coalition informed the Committee about a national conservation plan, which was announced in the 3 June 2011 Speech from the Throne, and advocated the plan’s creation. In its opinion, this plan should value and conserve nature for the benefit of current and future generations of Canadians.

ARTS AND CULTURE

Funding and Credits

In its appearance before the Committee, the Alliance of Canadian Cinema, Television and Radio Artists requested that federal support for Canadian content be renewed through restoration of Telefilm Canada’s parliamentary appropriation, reversal of the National Film Board’s budgetary reduction and an increase — to $40 — in the per-capita parliamentary allocation to the Canadian Broadcasting Corporation/Radio Canada. The Association des producteurs de films et de télévision du Québec called for increased funding of audiovisual programs managed under Canadian Heritage, in particular of Telefilm Canada and of programs under the Canada Media Fund. It also suggested that the government should support the continued existence of the Canada Media Fund, increase investments through the creation of a specific fund to support the production of digital content, and finalize, implement and adequately fund Canada's Policy on Audiovisual Treaty Coproduction.

The Association des producteurs de films et de télévision du Québec spoke about the importance of stable and long-term financing for Radio-Canada, and noted that the government could use a portion of the proceeds from an eventual auction of some broadcast frequencies in the 700 MHz band to provide financial assistance to the industry. In advocating government support for the production of television programming and digital media content, the Writers Guild of Canada suggested that the government should increase funding of the Canada Media Fund. The Canadian Arts Coalition urged the government to renew its investment in the Canada Arts Training Fund, the Canada Arts Presentation Fund, the Canada Cultural Spaces Fund and the Canada Cultural Investment Fund; as well, it argued that funding of the Canada Council for the Arts should be maintained at $300 million annually, although it felt that funding should be increased if possible.

Figure 10 – Federal Expenditures on Culture, By Cultural Activity, 2003–2004 to 2009–2010 Fiscal Years ($ thousands)

Source:       Prepared using data from Statistics Canada, CANSIM, Table 505-0003 (accessed 23 November 2012).

As a complement to enhanced public funding, the Alliance of Canadian Cinema, Television and Radio Artists proposed measures to attract private sources of funding. It advocated changes to the Canadian Film or Video Production Tax Credit that would allow production services tax credits to be applied against the production’s entire budget and not solely against labour costs, and supported the creation of federal labour-based tax credits for digital and interactive media. The Association des producteurs de films et de télévision du Québec suggested that eligibility for the Canadian Film or Video Production Tax Credit should be extended to labour expenses linked to the production of digital content, while the Writers Guild of Canada proposed an extension of the credit to digital distribution.

As well, the Alliance of Canadian Cinema, Television and Radio Artists urged support for Bill C-427, An Act to amend the Income Tax Act (income averaging for artists), which it felt would address the inequity in taxation that it believed exists between artists whose incomes are volatile and employees whose incomes are relatively stable over time.

In speaking about the importance of support for the Canadian Tourism Commission (CTC) as Canada’s national marketer of cultural and recreational attractions, the Association québécoise de l’industrie touristique suggested that the CTC’s budget should be increased to between $120 million and $130 million annually.

Skate Canada requested $10 million and the government’s partnership as preparations for its upcoming 100th anniversary celebration in 2014 are being made.

Regarding the structure of federal funding for culture in Canada, Sport Manitoba Inc. argued that the inclusion of support for sport-based research and innovation, as well as infrastructure facilities in the Building Canada Fund, has often resulted in investments in the former being under-prioritized. Consequently, it proposed that the government provide funding for this research and innovation outside of the Building Canada Fund.

Linguistic

The Fédération des communautés francophones et acadienne du Canada spoke to the Committee about cultural heritage and francophonie, and emphasized the importance of continued federal support for communities where an official language is spoken by a minority of the residents. It argued for renewal of the Roadmap for Canada’s Linguistic Duality, with investments focused on the three priorities of population, space and development; the roadmap is set to expire on 31 March 2013. In addition, it advocated funding increases for organizations and institutions that ensure the provision of services to Francophone citizens, particularly for the Community Life component of Canadian Heritage’s Official Languages Support Programs, and called for increased jurisdictional accountability — in future federal-provincial/territorial agreements — in relation to the allocation and use of investment funds. It specifically mentioned the inclusion of strong linguistic clauses, as well as the identification and dedication of specific funding for services intended for French-speaking citizens of the province/territory with which an agreement is being signed.

HOUSING

Strategy

In its appearance before the Committee, the Canadian Association of Community Health Centres supported the establishment of a federal housing strategy through the adoption and implementation of Bill C-400, An Act to ensure secure, adequate, accessible and affordable housing for Canadians.

Homelessness

Regarding homelessness, the Réseau SOLIDARITÉ Itinérance du Québec informed the Committee about the Homelessness Partnering Strategy, and requested that funding for it be increased from $20 million to $50 million for 2014 and beyond for the province of Quebec. It also suggested that public investment in social housing should be renewed, and advocated an enhanced role for the National Secretariat on Homelessness to promote discussions on homelessness. To improve the management and efficiency of the Homelessness Partnering Strategy, it called for the government to reduce “red-tape-related” delays in accessing available funding.

The Kamloops Homelessness Action Plan presented a plan for reducing the flow of people to homeless shelters; this plan would redirect a portion of the funds currently under the Canada Mortgage and Housing Corporation’s Affordable Housing Initiative to support the introduction of a housing tax credit for private or not-for-profit developers that construct affordable rental housing. In its view, this tax credit would have an estimated maximum federal fiscal cost of $50 million in the first year and of up to $500 million in the 10th year.

Figure 11 – Housing Starts by Intended Market, Canada – Census Metropolitan Areas, 1989–2011

Source:       Prepared using data from Statistics Canada, CANSIM, Table 027-0034 (accessed 26 November 2012).

New Housing Tax Rebates

In its appearance before the Committee, the Medicine Hat and District Chamber of Commerce urged the government to consider indexation of the GST and the HST rebates in relation to new home purchases to inflation.

NATIONAL SECURITY AND CRIME

Defence

Regarding defence spending, the Rideau Institute told the Committee that the government should further reduce such expenditures over time to reach the level that existed prior to the 11 September 2001 terrorist attacks. It also argued for improved parliamentary oversight of the military procurement process through the creation of a dedicated parliamentary committee or subcommittee for major Crown projects, and — in an effort to support economic recovery — for a mechanism to ensure that defence procurement provides support to Canadian industries.

The Medicine Hat and District Chamber of Commerce indicated that Canadian Forces bases attract foreign investment to Canada by providing training to other countries’ military forces. From that perspective, it suggested that the government should ensure the existence of adequate support for Canadian Forces bases to continue these activities, particularly in respect of Commonwealth military forces.

Crime

In speaking to the Committee, the Canadian Convenience Stores Association stated that an increased presence of law enforcement agents at the port of entry in Cornwall, Ontario will be required to combat the escalation in contraband tobacco activity that will occur when the Cornwall border crossing is moved to New York. As well, it urged the government to establish – by the end of 2013 – a new Royal Canadian Mounted Police anti-contraband task force.

Table 4 – Number and Value of Seizures of Contraband Items by the Canada Border Services Agency, 1 April 2012–30 June 2012

Contraband Item	Number of Seizures	Value of Seizures
Firearms	143	Not available
Weapons	1,894	Not available
Drugs	2,873	$102,682,555
Tobacco	515	$1,202,313
Child Pornography	20	Not available
Currency	298	$5,670,283

Source:       Prepared using data from Canada Border Services Agency, National Statistics — April 1, 2012 to June 30, 2012, 27 August 2012.

The Boys and Girls Clubs of Canada asked for increased support for the National Crime Prevention Strategy, the Youth Justice Fund and the Youth Gang Prevention Fund; support for the strategy and these funds would help to prevent youth from engaging in criminal activity.