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I call this meeting to order.
Welcome to meeting number 147 of the House of Commons Standing Committee on Finance.
Pursuant to the House of Commons order of reference adopted on Wednesday, May 22, 2024, and Standing Order 108(2), the committee is meeting to discuss Bill , an act to implement certain provisions of the budget tabled in Parliament on April 16, 2024.
Before we begin, I would like to ask the members and other in-person participants to consult the cards on the table for guidelines to prevent audio feedback incidents.
Please make note of the following preventative measures in place to protect the health and safety of all participants, including the interpreters. Only use a black, approved earpiece. The former grey earpieces must no longer be used. Keep your earpiece away from the microphone at all times. When you are not using your earpiece, place it face down on the sticker placed on the table for this purpose. Thank you to all for your co-operation.
Today's meeting is taking place in a hybrid format pursuant to the Standing Orders. In accordance with the committee's routine motion concerning connection tests for witnesses, I'm informed that all witnesses have completed required connection tests in advance of the meeting.
Actually, this is not exactly correct, members. There may be witnesses or officials who need to come on if you have any questions, and they would be tested at that time. There are too many of them available to us. It will be done when they are asked to come before us.
I would like to make a few comments for the benefit of the members and witnesses.
Please wait until I recognize you by name before speaking. For members in the room, please raise your hand if you wish to speak. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can, and we appreciate your understanding in this regard. Also, all comments should be addressed through the chair.
I'd like to provide the members of the committee with a few comments on how the committee will proceed with the clause-by-clause consideration of Bill . As the name indicates, this is an examination of all the clauses in the order in which they appear in the bill. Pursuant to the motion adopted by the committee on Tuesday, May 28, 2024, all clauses for which no amendment was submitted will be considered and voted on first, although I believe that there have been some discussions and that may change somewhat at the beginning, when members are able to pull out some of those clauses.
We'll follow that with the clauses with amendments. I will call each clause successively, and each clause is subject to debate and a vote. If there are amendments to a clause in question, I will recognize the members proposing them, who may explain them.
In addition to having to be properly drafted in a legal sense, amendments must also be procedurally admissible. The chair may be called upon to rule amendments inadmissible if they go against the principle of the bill or beyond the scope of the bill—both of these were adopted by the House when it agreed to the bill at second reading—or if they offend the financial prerogative of the Crown.
Amendments have been given a number on the top right corner to indicate which party submitted them. There is no need for a seconder to move an amendment. Once moved, you will need unanimous consent to withdraw it. During debate on an amendment, members are permitted to move subamendments. Approval from the mover of the amendment is not required. Subamendments must be provided in writing. Only one subamendment may be considered at a time. The subamendment cannot be amended. When a subamendment is moved to an amendment, it is voted on first. Then another subamendment may be moved, or the committee may consider the main amendment and vote on it.
Pursuant to the motion adopted by the committee on Tuesday, May 28, 2024, if the committee has not completed the clause-by-clause consideration of the bill by 5 p.m., all remaining amendments submitted to the committee shall be deemed moved. The chair shall put the question forthwith and successively, without further debate, on all remaining clauses and proposed amendments as well as each and every question necessary to dispose of the clause-by-clause consideration of the bill and all questions necessary to report the bill to the House.
Finally, if members have any questions regarding the procedural admissibility of amendments, the legislative clerks are here to assist the committee; however, they are not legal drafters. Should members require assistance with drafting an amendment or a subamendment, they must contact the legislative counsel.
I thank the members for their attention and wish everyone a productive clause-by-clause consideration of Bill .
As I said earlier in my remarks, members, there are many witnesses. I believe there are about 70 or so who are available if members have questions, but they would have to come, many of them, online via video conference and they would have to be tested to get them going.
Now we will get started.
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Yes. I'm just reading the ones that did not have amendments. The ones that members submitted amendments for were not captured in this, so they are outside of these numbers.
I'm saying many numbers here. At times, I'm giving you an individual clause. At other times, I'm grouping those clauses.
Let me start from the beginning. It's not a problem. I know there are a lot here.
There were no amendments submitted for clause 1, which is the short title, clauses 2 to 37, clauses 39 to 79, clauses 81 to 112, clauses 117 to 122, clause 125, clauses 126 to 130, clauses 131 to 146, clauses 148 to 155, clause 159, clauses 161 to 196, clauses 199 to 202, clauses 205 and 206, clause 208, clauses 210 to 212, clauses 214 and 215, clauses 218 to 220, clauses 222 to 226, clauses 228 to 247, clauses 249 to 268, clause 270, clause 272, clauses 274 to 290, clauses 293 to 320, clauses 322 to 325, clauses 327 to 385, clauses 387 to 393, clauses 395 to 401, clauses 403 to 405, clauses 407 to 409, clause 411, clauses 413 to 437, clauses 439 and 440, clauses 442 to 444, clauses 446 to 460 and clauses 462 to 468.
Those are all of the clauses that did not receive amendments from members.
I see a hand up. I have MP Ste-Marie, and then I'll go to PS Turnbull.
MP Ste-Marie.
I don't have a list of numbers, but I'm a little confused about the process here, because I don't understand why we don't just go through it sequentially. We're going to have to pause, because we have three opposition parties and one government. There are a million different iterations that could happen, and one of us has to be able to raise a flag and say that the Bloc, the NDP and the Conservatives are all going to not support this.
Going through it sequentially is the only way that sort of makes sense to me. Then, at that point, we're going to have a recorded division. We'd want to talk about it at that point and, presumably, there would be some discussion. The Conservatives expect to be very collaborative in this meeting, to be clear. I just think that moving it through sequentially will save us a lot of time.
We can go through these groups and then someone can raise a flag and say, “I want to talk about this” or “three of the opposition parties are going to vote against it”. I would say, let's just go through this sequentially. We'll agree to the groupings. Like I said, we want to be collaborative. It's just that this process is going to be really cumbersome.
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Maybe I can just clarify. I know this seems a little bit unwieldy, but I think we're going to benefit from this once we get organized. I think we're just about there. Bear with us, colleagues.
What you've done, Chair, is listed all of the clauses that you had grouped together. Committee members are now picking out ones that need to be separated out of those groupings, because there either needs to be a bit of a debate, or there's a separate individual vote. Also, in Mr. Davies' case and in a couple of cases, I think you've identified a couple of amendments that you're going to move from the floor. You've identified those clauses. That's why those have to be separated out from any groupings.
I'm really glad to hear Mr. Lawrence say that we're all going to work together collaboratively today to get this done. I'm really happy about that.
Mr. Chair, you had read out clauses 2 to 37 as having no amendments, but we now know that the Bloc on clauses 17 and 37 need separate votes so they can speak to those. Obviously, that grouping needs to now slightly change. It would be clauses 2 to 16 and then it would be 18 to 36.
I think that's what this enables us to do. It then will enable us to move quite quickly, I would think, based on those groupings. I'm hoping that we'll be able to vote through them fairly quickly, because nobody has a comment, nobody has an amendment and nobody needs to speak to any of those groupings. That will speed us up and I think get us out of here earlier, hopefully, today. I'm sure everybody will want to work as efficiently as possible.
I think it's just getting organized here at the beginning. I think the time is well spent. We're just about there. Let's stick to it. It's what we agreed on, and I would prefer to stick with what we agreed on.
Thank you.
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We will have a recorded vote on clause 39.
(Clause 39 agreed to: yeas 7; nays 4)
The Chair: Now we're grouping clauses 40 to 79.... I'll go to the members. Shall I group clauses 40 to 196? No.
Okay. I'll read each of them. Members, let me know.
The group includes clauses 40 to 79, 81 to 112, 117 to 122, 125, 126 to 130, 131 to 146, 148 to 155, 159 and 161 to 196.
(Clauses 40 to 79, 81 to 112, 117 to 122, 125, 126 to 130, 131 to 146, 148 to 155, 159 and 161 to 196 agreed to on division)
The Chair: Thank you for that.
To our legislative clerks who put that all together so quickly, thank you.
We now start with debate on clause 197. I believe that is the next clause you referred to, MP Ste-Marie.
I will continue where I left off.
I would ask the members of the committee to vote against this entire division.
It is important that the government legislate concerning the open banking system. We have been waiting years for this legislation, because it is necessary. Business is being done without proper legislation.
The time the government has taken to pass legislation is deplorable. The provisions of the budget implementation bill tabled this spring are not definitive. The government tells us that division 16 represents the skeleton, the infrastructure of the law, and all the details will be coming in the fall.
When we look at the skeleton, however, the infrastructure of the framework being proposed, we see that it has major problems in several respects. The government has not done its homework properly. If we adopt this structure, this base for the framework, we will be looking at major problems down the road.
I am asking the government to withdraw division 16, hold consultations, work on this bill over the summer, and come back in the fall with a more complete bill.
This division has multiple problems.
First, the choice to give the Financial Consumer Agency of Canada responsibility for the framework is a serious mistake. The group of agency representatives testified at the committee and demonstrated that they lack both understanding of and familiarity with the open banking system, as well as lacking expertise with that system.
This is not really a criticism, because this is not the fundamental role the agency should be playing. It would be much wiser, for example, to assign the management of this kind of framework to the Office of the Superintendent of Financial Institutions, which is already familiar with the ecosystem and the financial institutions, whether under federal or provincial jurisdiction, such as credit unions or the Alberta Treasury Branch financial institution, ATB Financial, which are under provincial jurisdiction.
The body responsible for the framework in the bill has no expertise at present for properly framing the act, and that expertise is not something that can be developed quickly. So there would be constant problems.
Second, the government has decided that management of the framework would be handled solely at the federal level. This would not be a shared jurisdiction in accordance with the division of powers. For example, consumer protection agencies are under provincial jurisdiction. However, under what is proposed in the bill, that would become a federal jurisdiction. Ottawa would be appropriating powers.
The officials clearly gave us to understand that if a financial institution under provincial jurisdiction, such as a financial co‑operative or a credit union, wanted to compete with the Bay Street banks, it would have to ask the province to waive its power to legislate about the open banking system in order for them to be under federal jurisdiction. The provinces will never agree to that. This would mean creating a two-tier open banking system. That would give the Bay Street banks a big advantage and put financial institutions under provincial jurisdiction at a big disadvantage. That is unacceptable.
Is this surprising? No. Every time the Department of Finance passes legislation concerning the banks, it always benefits the Bay Street banks at the expense of the other financial institutions. That is unacceptable. That is what is being proposed holus-bolus in the skeleton, in the structure, in the framework. This fall, it will be very complicated to unravel what is being done here right now.
Third, there are a lot of fuzzy points in the proposed measures, the framework. It will never work properly. Which one, the Autorité des marchés financiers or the Financial Consumer Agency of Canada, will be supervising it? The Financial Consumer Agency of Canada was not even able to answer that question.
We do not have the division of powers. In Quebec, the Consumer Protection Act is subject to the Civil Code, and it has been that way since the conquest. The central government and the Crown have always followed that law. Under what is being proposed, however, they would be exempted from it, and that would lead to very serious problems.
This job has been really badly done.
I am therefore asking the government to remove this division, do its homework, talk to its provincial counterparts, and hold consultations. That way, we would come back this fall with a better bill—in just a few short months from now.
We expected that the industry would be able to regulate, supervise and check what is done in terms of technological standards. However, the standards for the industry are going to be established by the Financial Consumer Agency of Canada. There are serious problems.
Mr. Williams, the member for , has done a lot of work in favour of the open financial market. He has actually introduced his own bill, one that my party and I could agree on.
In the case before us, a number of amendments on this subject have been proposed by the Conservatives. I believe this has been done in order to better reflect Mr. Williams' vision. However, all of this rests on a defective framework, a framework that presents significant problems and will never work properly, so I suggest that this division be rejected in its entirety. The same is true for the amendments, because the base will never work.
Colleagues, if we pass this division as it stands or is amended by the proposed amendments, there will be problems and discord and discontent. The regulatory body will not have the expertise it needs to do its work properly. We are going to have problems if there is a two-tier financial system. We are also going to have to backpedal in the fall or later.
If we reject this division and ask the government to redo its homework over the summer, we will avoid a lot of problems. Otherwise, there are going to be problems throughout the process until we end up backpedalling.
I therefore invite my colleagues to vote against this clause and all the clauses in division 16, out of respect for credit unions, financial co‑operatives and provincial jurisdictions and a concern for efficiency. That will mean we get a competent regulatory body that does not have to learn it all—it will take years to learn it all—and is able to talk to the agents, the actors on the ground.
I understand that the financial technology industry wants us to go fast. This has been dragging on for years, and we have to act. If we pass what we have before us, however, it will not be in place any faster. We will have to wait until the fall.
We should introduce a more complete and more serious bill in the fall, and send division 16 back to the government.
Mr. Chair, I request a roll-call vote on all of the clauses in this division.
I'd like to speak very briefly to this to set forth the position of the New Democratic Party.
I want to thank my colleague Mr. Ste-Marie for raising those concerns.
Generally we are very supportive of the concept of open banking, the idea that we want more competition in the financial services sector and the idea that the consumer should be firmly in control of their own data.
To clarify that, data should be made more easily transferable at the direction of the consumer so that the consumer can shift their money, resources and investments around. It is not only good for consumers; I think it will foster greater competition in the markets.
At the same time, I think that Mr. Ste-Marie makes some important points. It does strike me that there's a lot of work to be done in this sector. One thing I'll say is that one of the negative consequences of this committee's spending a lot of time discussing non-essential issues in the last couple of weeks is that it curtailed the amount of time we could have to hear from witnesses. One of the big deficiencies is that we did not hear from the credit union movement outside of Quebec.
I want to thank Mr. Ste-Marie for making sure that we heard from Desjardins, but I'm left wondering what the position of the credit union community is outside of Quebec across the country. We did not have the benefit of their testimony.
I would think that they would be supportive of these because, really, right now, the big five banks have a stranglehold on investments, and the purpose of open banking, which I understand many other countries in the world are ahead of Canada on, is to make sure that people have the ability to move and be in control of their data from the big five banks. I would imagine that the credit union community is in favour of that.
I just want to conclude by saying that I'm sympathetic to the concerns that Mr. Ste-Marie raises, particularly the one about jurisdiction in Quebec. I'm concerned about whether or not we have a fit-for-purpose body to enforce these regulations, but I do think overall that what's more important is to get open banking established in this country.
This may be imperfect. I'm hoping that maybe by the fall economic statement or by the next budget, which will be happening in 10 or 12 months perhaps, we'll have an opportunity to make refinements.
I think that we all here at this table see the benefits of open banking, but we all want to get it right. We will support this attempt to get open banking started with the proviso that there are concerns and issues that I think we're going to have to be revisiting over the next year and years ahead to refine the system to make sure that it works in the way that we all intend it to.
Thank you.
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I will be relatively brief, because Mr. Davies said pretty much everything I was going to say.
It sounds like every party around the table supports the concept of open banking for greater competition, transparency and, hopefully, lower prices for consumers.
We, too, are challenged a little bit with the way this has been conducted. Specifically, I don't think I'd be doing my job as a member of the official opposition to not level a couple of criticisms. We are years behind many other advanced economies with respect to our open banking legislation, and all we've proposed so far is a framework, a flawed framework.
The government already had options put in front of it, including, as Gabriel Ste-Marie said, from Ryan Williams when they said that they supported wholeheartedly the concept of open banking, consumer banking and consumer-led banking. However, we do find challenges, as Mr. Davies and Mr. Ste-Marie have stated, particularly given the amount of time this government has had and the number of resources they've invested, presumably, in investigating and putting together this legislation.
Thank you.
Members, I read out the clauses that we will be voting on right now.
(Clauses 199 to 202, 205, 206, 208, 210 to 212, 214, 215, 218 to 220 and 222 to 226 agreed to: yeas 10; nays 1)
The Chair: Members, now we are looking to group clauses 228 to 247, 249 to 268, 270, 272, 274 to 290 and 293 to 320.
(Clauses 228 to 247, 249 to 268, 270, 272, 274 to 290 and 293 to 320 agreed to on division)
The Chair: As requested by MP Ste-Marie and MP Davies, we'll have debate and votes on clauses.... We going to start with clause 322. We're going to go through clauses 322 to 325 and then clauses 327 to 333.
MP Ste-Marie.
I do not have a firm position on division 31; I am not an expert in this area. We heard from several witnesses with opposing opinions and it is hard to take a position.
Some groups of witnesses said too much power is being given to the minister to do what the minister already has the power to do. Others said it is important to give the minister those powers in order to ban nicotine-containing products intended for sale. This evening, I received a letter from the Quebec Coalition for Tobacco Control saying that in order to combat tobacco use among youth in Quebec, we have to vote in favour of clauses 322 to 333. However, a lot of experts told us that what is proposed in division 31 is not the right way to achieve that objective. So opinion is divided.
Mr. Chair, I would like to remind the government again that these provisions should not have been proposed in a mammoth 660-page bill that amends a multitude of laws; this should have been proposed in a separate bill that the Standing Committee on Health could have studied by questioning experts in the field and taking the time needed. I am still going to listen to the arguments made by my colleagues, like Mr. Davies, but I am ill-equipped to make a good decision on the subject.
Right now, the letter from the Quebec Coalition for Tobacco Control is weighing heavily in my decision, so I may well vote in favour of these clauses. However, I object to how the government has gone about it, in order, I would say, to evade this fundamental question.
I want to speak just briefly to it. This is one of the few parts of the entire bill that we have concerns about.
First of all, I want to just state for the record that I was the health critic for the New Democratic Party for eight years, and in that time I was a passionate and strong proponent of tobacco-control measures. To me, the marketing to Canadians of a highly addictive carcinogen is something of first-order importance, and the propensity of the tobacco industry to find ever-more creative ways to find nicotine-delivery systems to hook the next generation of Canadian youth on their products is stunning.
Therefore, I want to state for the record that I am fully in favour of strong, robust and effective control on nicotine pouches and frankly on every kind of mechanism that big tobacco tries to utilize to continue to market their products to us.
By the way, I'm going to say again that, due to a lot of filibustering in this committee, we were not able to hear from a lot of witnesses, and I think that needs to be said for the record. I'm left to guess a little bit at the policy reasons behind this, because we never really did hear a strong, cogent argument from the government. However, what I've read in the media from the is that he would like these powers so that he could regulate nicotine pouches. The other example that was given, I think, for this committee was to facilitate emergency shortages of necessary products, and the example given was baby formula.
This section purports to give powers to the Minister of Health to, on his own belief, whether he or she is certain or not, basically make any decision that he or she wants to on whether or not a product is sold in Canada, including if it's used off-label or if it was originally intended for animal use. It also would allow the minister, just on his or her belief, whether or not he or she is certain, the power to exempt any product whatsoever from the provisions of Health Canada. Third, it would allow the Minister of Health to approve any product that he or she wanted to, if it had been approved by a foreign regulatory body.
To me, then, besides questions like what this has to do with dealing with medications that are targeted at animals, what mischief are we trying to get at there? I'm left guessing. However, what I will say, as I hone in on this and bring this to a close, is that these powers are too broad. The discretion of the minister is unlimited.
I was a lawyer in a different life, and I've been in Parliament for almost as long. I've never seen a section of an act that says that a minister of the Crown can act whether or not they are certain. I've never even seen that language.
Finally, I want to just comment briefly on the insertion of this in a budget bill. Now, again, I'm an equal-opportunity critic. I was here when the Harper government used omnibus bills in a very major way, and they started the practice of amending all sorts of legislation that had nothing to do with Canada's fiscal or economic issues, and they crammed them into a budget bill as a way to get quick passage.
Sometimes you can put extra things in a budget for various reasons. I think that may be used to some degree by a wise and judicious government if it has to legislate something quickly and if it's not too controversial. However, the habit has developed in this Parliament for governments to legislate, in all sorts of areas, issues that have nothing to do with this and that require further study. After criticizing the Harper government, the Liberal government came to power in 2015 saying they would not use omnibus bills. I guess being in opposition, as they were through that time, they saw the problems with those from an opposition point of view.
I'll just name a couple of the problems. I think my colleagues would agree, and some of my colleagues in the Conservative Party have commented on these. I think the Bloc Québécois and my colleague Monsieur Ste-Marie said this very well. Issues that require further study and stakeholder input at an appropriate committee are things that we are robbed of. It simply doesn't happen. We have a massive bill the size of a phone book—for anybody who can remember what a phone book was—and we didn't hear from a lot of the stakeholders about this.
In this latest budget the government amended legislation concerning natural health products with Vanessa's Law. They slipped that in the budget bill. They changed the definition of “therapeutic products” to include natural health products, which has huge ramifications for the natural health products industry, and that was done without any proper study.
In my view, while I'm extraordinarily sympathetic to the rationale behind this—I think it's well-intentioned, and I think the government is seeking powers here to do some good things—they're killing an ant with a sledgehammer. The legislation should be surgical, it should be targeted and it should amend the appropriate legislation, which, in my view, would be the Tobacco and Vaping Products Act or some other legislation. It should go to the health committee. They should hear from a broad array of stakeholders. They should study this bill, and then they should—
Thank you to my colleagues for the unanimous consent.
I'll bring this to issue to a close.
I think the putative reasons given for this should be passed after that process, but to use a bit of a pejorative, slipping it in a budget bill is not the proper way to legislate. These powers amount to “let the minister do whatever they want if they think it's needed”. That is not an appropriate way to legislate powers, no matter how salutary or desirable the examples given might be.
For those reasons, particularly when we talk about products that go through a very rigorous process of being approved in Canada by Health Canada, this would allow the minister to exempt that, or to approve it if the FDA said yes or if any product is used off-label.
We had a little tiny flavour of the implications of legislating an area of off-label use. We know that many health professionals, from physicians to traditional Chinese medicine practitioners, use products off-label all the time, and they are regulated. They're regulated by the provinces and they're regulated by their professional bodies. To allow one minister of the Crown the discretion to change that on his or her belief, even if they're not certain, is not a wise legislative process. I just want to set that out.
I have some amendments. Perversely, I'm going to be seeking to amend these sections, and then I'll be voting against them. The reason for doing that is that, if they are going to pass—and I don't know what my colleagues are going to ultimately decide on this—then I at least want some guardrails and parameters in these sections. However, I will be urging my colleagues to vote against these sections because they are just far too broad and there just aren't sufficient guardrails.
My last point will be this: I heard the say that no health minister would use these powers in an unreasonable or irresponsible way. As the Muslims say, “Trust in Allah, but tether your camel.” I don't trust that. I don't think we should rely on giving unlimited unilateral powers to a single cabinet minister on the assumption that they will just never do it.
I could take a bit of a critical shot and say that I sat on the health committee with people who may be potential health ministers in this country in the future. I'm not so sure I would want to give powers to them—not these broad powers.
This is where I will conclude. People will remember when we had shortages, say, of childhood pain medication, like acetaminophen. We had shortages of ventilators, and we had shortages in this country of baby formula. There are ways that exist now in cabinet to use emergency measures, but there are two important guardrails. One is that it gets the approval of cabinet. The second guardrail is that those emergency measures are time-derated. Those are two important guardrails that exist now and I think ought to be at least considered if we're going to be making a change to that. I don't see those guardrails in this legislation.
Thank you for indulging me. I have only a few things I'm going to speak to in this budget. This is one of them, so I wanted to give a fulsome explanation of why I'm concerned about this area while being very sympathetic to the underlying issues that appear to underpin it.
Thank you, Mr. Chair.
I am very sympathetic to all of the arguments made by our colleague Mr. Davies. They are of real concern and they align strongly with my values, my principles and my positions.
Again, I object to the approach taken here.
I received a letter this evening. I had told you that it came from the Quebec Coalition for Tobacco Control, but it was signed by several groups.
I want to take the time to read it to you so it can contribute to our consideration. I reiterate: I object to the process. I will not have the time needed to hear all the experts and reach a considered decision, because the government should have dealt with the subject in a separate bill so we have the time to do things properly.
I am going to read you this letter, which was sent to me as my party's finance critic and to my colleague Luc Thériault, health critic and vice-chair of the Standing Committee on Health.
The groups that signed the letter are the Quebec Lung Association, the Quebec Coalition for Tobacco Control, the Quebec Council on Tobacco and Health, the Heart and Lung Foundation, and the Canadian Cancer Society. Its purpose is to support clauses 322 to 333 of Bill , so it could not be clearer. I will begin reading it.
We hereby wish to express our firm support for enacting clauses 322 to 333 of Bill C‑69 amending the Food Drugs Act. These provisions are crucial for protecting Canadian youth against new tactics being used by the tobacco industry, which could make nicotine products popular among young people.
The shameless marketing by Imperial Tobacco of new flavoured nicotine pouches (“Zonnic”) last fall exposes major weaknesses in the present rules governing nicotine replacement therapies that are authorized as natural health products.
Unlike the historical marketing of NRTs, Imperial promoted its “Zonnic” brand in a way that makes these pouches attractive to young people, in particular by using images of trendy young people in social contexts, catchy slogans and exotic flavours (such as “tropical breeze”), in candy-like packaging.
Unsurprisingly, a number of organizations have observed that young Canadians are interested in this new product. They include the Ordre des pharmaciens du Québec which stated in January that “in pharmacies where they are floor stocked, they seem to be very popular, particularly among younger people.” That is what prompted the Ordre to recommend that all pharmacists operating in the province keep these products behind the counter.
A few weeks later, the Government of British Columbia stepped in to limit behind-the-counter sales to pharmacies.
The other provinces are leaving it to the federal government to establish guidelines for the sale and promotion of these types of nicotine products and at present, the federal legislation governing tobacco products and vaping products has no power to regulate nicotine pouches, like most new (and future) products containing nicotine that the cigarette manufacturers are working on.
That is why we want to point out to you and the members of your party how advisable and how urgent it is for it to be able to protect young people against products like these. In fact, it is important to prevent any industry that manufactures over-the-counter nicotine products from starting a new wave of nicotine dependence as vaping did among young people, which would be a complete public health fiasco. This youth health disaster is the direct result of far too permissive initial oversight.
A tobacco manufacturer marketing “Zonnic” pouches (supposedly intended for quitting smoking) through convenience stores—except in Quebec—changes things and calls for urgent action by the Minister of Health. The proposed amendments would enable the minister to prevent the tobacco industry from exploiting the various loopholes in the regulatory scheme for natural health products.
In its present version, clauses 322 to 333 of Bill C-69 let the federal Minister of Health step in quickly to regulate the sale, promotion and flavouring of nicotine pouches and other nicotine replacement therapies, or NRTs, to prevent undesirable use of these pouches that could harm users' health. An example is use by individuals who are neither smokers nor vapers but for whom the marketing kindled their curiosity about trying them recreationally.
It is important to note that the ministerial powers introduced by C‑69, in clauses 322 to 333, do not operate to remove any natural health products from the market; rather, they allow the Minister of Health to introduce guidelines for the sale of products where the marketing of the products involves health-related issues and concerns.
In those cases, sale in general would be allowed, but be conditional on compliance with certain criteria for which there would be consultations. In the cases that concern us, nicotine pouches and other natural health nicotine products that might emerge, these amendments represent an appropriate proactive mechanism for better oversight of products that create one of the most powerful dependences in the world, in addition to other risks to physical and mental health, particularly in young people.
To conclude, as a health group that has fought against smoking and nicotine dependence for decades, particularly among youth, we urge you to support these amendments, which solidify the existing measures in Quebec and extend them to the other provinces.
The letter is signed by the groups.
Mr. Chair, I have taken up a lot of time reading the letter in its entirety. It is a letter signed by groups that promote health and oppose tobacco use, in which they use very strong language. As I said, I did not have time to hear every party with an interest in the division we are considering—that would have enabled me to reach a clear conclusion—because of the way the government has gone about it, to which I object. This is not the right approach; it is not the right way to do things.
Mr. Davies raised a lot of very important and very strong arguments and asked a number of questions about the minister's extended powers. This is a matter of considerable concern. Personally, I have to decide among the various points made by the various witnesses, the arguments made by Mr. Davies, and, I imagine, the ones Mr. Turnbull will be making. As well, I also have this letter, which contains some powerful arguments. Since I am not an expert in the matter, I choose to base my judgment on the associations I trust: the Quebec Lung Association, the Quebec Coalition for Tobacco Control, the Quebec Council on Tobacco and Health, the Heart and Lung Foundation, and the Canadian Cancer Society.
In light of the letter and the arguments made by those groups, I am going to vote for the clauses mentioned and possibly—very probably, even—for the suggested amendments, if they are moved. That has not been an easy decision to make and I object to how the government has handled this.
Thank you, Mr. Chair.
I'll just make some brief comments.
I want to thank Mr. Davies for bringing the amendments forward. I think they're welcome.
I want to express the intent of the proposed amendments in budget 2024 that amend the Food and Drugs Act. They all attempt to address and prevent unintended and harmful uses of therapeutic products. One example is preventing addictive nicotine replacement therapies from being marketed to youth. Obviously, this is a major concern that we share when we see youth taking up those new replacement therapies and being the target of marketing campaigns.
The intent of the measures was always to give the Minister of Health the authority so that he or she, in the future, can review all available evidence and base any decisions on well-founded reasons before using the new legislative authorities. That was the intention.
I also recognize that Mr. Davies has formalized that within a set of amendments, adding reasonable grounds to some of the important clauses here in the . That's welcome, because it further makes explicit what was intended. I think those are things that the government members will be supporting, and we appreciate the amendments.
To Mr. Ste-Marie's points, I'll just say generally that it was too bad we didn't have as much time to hear from witnesses. There were quite a lot of committee resources that went into a fairly extensive debate and filibuster, which went on for a while. I'm glad we got past that and we're now moving forward, but it's regrettable that there wasn't a bit more witness testimony for him to hear from additional witnesses. We empathize with him on that.
I think, as he knows, these are welcome adjustments, giving the minister some authorities and powers that are needed to crack down on these activities that target youth.
Thanks very much.
:
Okay. It's a recorded vote—
An hon. member: I'm sorry, but I didn't catch that.
The Chair: MP Davies asked if there were any amendments to clauses 329 to 333. There are not.
Again, we're voting on clauses 322 to 325 and 329 to 333.
(Clauses 322 to 325 and 329 to 333 agreed to: yeas 6; nays 5)
The Chair: Now, members, we are grouping clauses 334 to 385, 387 to 393, 395 to 401, 403 to 405, 407 to 409, 411, 413 to 437, 439, 440, 442 to 444, 446 to 460 and 462 to 468.
MP Davies, go ahead, please.
I want to thank the legislative clerks again for all their hard work. They have taken out from the groupings I mentioned the clauses that MP Davies wanted removed.
I will now cite all the clauses that we'll be voting on, with those removed. They are clauses 334 to 385, 387 to 390, 392, 393, 395, 396, 398, 399, 407, 409, 413 to 421, 423 to 426, 428 to 432, 442 to 444, 446 to 460 and 462 to 468.
That is what we are voting on now, members.
(Clauses 334 to 385, 387 to 390, 392, 393, 395, 396, 398, 399, 407, 409, 413 to 421, 423 to 426, 428 to 432, 442 to 444, 446 to 460 and 462 to 468 agreed to on division)
The Chair: MP Davies, we now have all the clauses that you had requested be separate.
MP Davies.
My comments concern amendments CPC-6 to CPC-18, which would cancel the increases in excise taxes on alcohol and even cut the excise tax on certain items in half. We've debated this topic several times, both last fall, if I'm not mistaken, and in previous years.
Since the excise tax is levied in dollars per hectolitre, it isn't indexed to the rate of inflation, unlike HST and other taxes that are collected on a percentage basis. We've criticized this situation because inflation is running high. We managed to work with the government to limit the percentage tax increase to a figure below the rate of inflation, that is to 2%, and now we're wondering whether we should stop raising the excise tax or even lower it. Unfortunately, we didn't have a substantive debate during our study of Bill C-69 or bring in witnesses to discuss the matter, with the exception of the Quebec microdistilleries.
I'm going to speak briefly to the amendments that I'll soon be moving. The Bloc Québécois is in favour of having a substantive discussion on the excise tax, its rate and how it should be indexed. The subject should be studied since we didn't debate it enough to enable us to change the situation as radically as was suggested in the various proposed amendments.
However, the Bloc Québécois is in favour of providing some support to small artisanal producers like the microbreweries. Our party is proposing an escalating excise tax that would provide support to small producers, small local artisans, to assist help them compete with the major distilleries, which don't need as much help.
The purpose of the two Bloc Québécois amendments that I will move is to encourage small artisanal producers and to introduce an escalating tax system for microdistilleries that would be similar to the present system for microbreweries. The idea is to help and encourage small emerging players, the local artisans who operate all across the regions.
For now, apart from the amendments that I'll be moving, I will stand by the compromise we've reached to limit the excise tax rate to 2%, in other words, below the rate of inflation. I would also be open to the idea of the committee, in the course of future business, taking a serious look at the excise tax issue and inviting all the witnesses and experts we need to conduct a substantive debate and, if appropriate, bringing forward proposed amendments CPC-6 to CPC-18. For the moment, however, I will be voting against those amendments.
Thank you, Mr. Chair.
:
Thank you, Chair, for the opportunity to speak.
With regard to the excise tax and the legislative adjustments that were done in the first session, from 2015-19, which I was a part of, and also in chairing the wine caucus, which has many members from the opposite side, and also being part of the beer caucus, if I can use that terminology in a serious sense, we worked with industry. We worked with the wine, spirits and beer industries to land at a spot where an announcement was made, supported by these very critical sectors of economy, which employ a lot of middle-class Canadians.
I wish to applaud the and the team for working so collaboratively and getting to a point at which the industry, the workers and the unions are happy. We capped the excise indexation rate at 2%. We also provided a good-sized tax cut to craft brewers of a certain size and also provided the wine sector with the wine sector support program for the next three years, which will see the sectors receiving a good flow of funding for growth, while driving tourism and jobs.
Mr. Chair, I'll leave it at that. I'll limit my interventions today, but I wanted to intervene on this one.
:
I'm going to move it and briefly explain it.
As I said earlier, a few years ago, Australia brought a dispute case against Canada at the World Trade Organization, the WTO, over the tax on wine. The dispute obviously concerned wine from grapes. However, in Quebec, wine from grapes is called “wine”, and we have another terminology for alcoholic beverages made from small fruits, maple syrup and honey.
Canada complied with the WTO decision and applied the tax to Canadian wine, but only to wine from grapes. When we looked into this matter in committee, we adopted an amendment to exempt apple cider and mead producers from the tax. However, we were unable to adopt an amendment to exempt from that tax—and so comply with the decision—producers of alcoholic beverages made from small fruits, such as strawberries, raspberries, blueberries and pears, for example, and producers of maple-based alcoholic beverages.
Australia's complaint obviously didn't concern all those producers, who are small local and artisanal producers who work hard to create high-quality regional products. We therefore want to support them and allow them the same privilege as the one the committee granted for apple cider and mead producers. That's the reason for this amendment.
I therefore encourage my colleagues to support this amendment unanimously.
:
Thank you, MP Lawrence.
Now I'll give you my ruling.
Bill C-69 amends several acts, including the Canada Student Loans Act. The amendment seeks to add “family physician assistant” to the list of people who would be eligible for student loan forgiveness.
As House of Commons Procedure and Practice, third edition, states on page 772:
Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation.
In the opinion of the chair, the amendment alters the terms and conditions of the initial royal recommendation, thereby imposing a charge on the public treasury. Therefore, I rule the amendment inadmissible. This ruling also applies to amendment CPC-21, since it is consequential.
Members, I will move to NDP-1.
MP Davies, would you like to move this amendment?
I will move this and speak briefly to it.
This is an amendment recommended by the Public Service Alliance of Canada, which represents our hard-working and talented civil servants in Canada. Essentially, the legislation as it's currently drafted only requires that the minister consult with the Minister of National Defence if the amount that is recalled from the pension investment board to the consolidated revenue fund is in relation to the Canadian Forces Superannuation Act. Also, the minister has to consult the Minister of Public Safety and Emergency Preparedness if the amount is in relation to the Royal Canadian Mounted Police Superannuation Act.
The NDP's amendment would require that, when an amount is recalled from the Public Sector Pension Investment Board to the consolidated revenue fund in certain circumstances currently defined under the Canadian Forces Superannuation Act, the Public Service Superannuation Act—you'll notice the addition of that—and the Royal Canadian Mounted Police Superannuation Act, the bargaining agents who represent the employees covered by pension plans under those acts be consulted.
In short, obviously, pensions and pension management are very important to workers. Frankly, pension contributions are very often exclusively, or at least in large part, the employee's deferred salary. It's their money. This would simply require that, if there's a recall of funds from the pension boards to the consolidated revenue fund, their bargaining agents at least be consulted about that. Their approval is not required, and there will not be extensive negotiations, but they should be consulted, in our view.
I would move that.
:
Thank you, MP Lawrence.
MP Ste-Marie, I see your hand up, but this is not debatable, because it's not admissible.
I now give my ruling to MP Lawrence and to the members. Bill amends several acts, including the Tax Court of Canada Act, to provide that “the Court under special circumstances grants leave to the party [to a proceeding who is not an individual] to be represented by a director, officer, employee, member or partner of the party” or by a lawyer in normal circumstances. The amendment seeks to provide for the party to be represented, in normal circumstances, by a tax accountant, which is a new concept that goes beyond the scope of the bill, as agreed to by the House at second reading.
As House of Commons Procedure and Practice, third edition, states on page 770:
An amendment to a bill that was referred to a committee after second reading is out of order if it is beyond the scope and principle of the bill.
In the opinion of the chair, the amendment introduces a new concept that is beyond the scope of the bill. For the aforementioned reason, therefore, the amendment is inadmissible.
:
Thank you very much, Mr. Chair. I will speak to it very briefly.
As I was indicating, on March 13, over 80 civil societies, settlement agencies and religious organizations wrote a strongly worded letter to the with their concerns around expanding immigration detention into federal prisons.
Earlier today, the provisions around setting up this format were passed, but with that being said, this amendment is an attempt by the NDP to at least try to put some parameters within that framework, to have “high risk” clearly defined in legislation rather than leaving it up to regulation and having it be defined behind closed doors.
To that end, Mr. Chair, that's what the amendment seeks to do. The definition of “high risk” is really meant to provide some limitations around what would be deemed as high risk in this instance.
Mr. Chair, I just want to highlight a couple of elements within that. I won't, of course, read the entire amendment into the record here.
Really, we attempted to put some parameters there as to the nature and level of danger to the public the person poses related to, for example, any conviction to do with sexual offences or an offence involving violence or weapons and for the same conviction outside of Canada. As well, there are provisions with regard to pending charges for these offences. Also, we wanted to put parameters around engagement with terrorism or gang activities and such.
Mr. Chair, I think these are some of the provisions for declaring what is deemed to be “high risk” in that context.
The other thing worth noting here is that we're also adding to this with an amendment around mental health; when considering these matters, the mental health aspect of the individual should also be taken into consideration. That's written within the amendment here.
Of course, there are some accountability measures related to it, which means that when someone is to be detained, there has to be some level of accountability with respect to written notice advising the individual as such and then, of course, allowing the individual to undertake representation if they seek to do so.
That's a quick summary of where it is at in terms of trying to put these parameters in place.