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Decentralized Democracy

House Hansard - 304

44th Parl. 1st Sess.
April 29, 2024 11:00AM
  • Apr/29/24 1:06:54 p.m.
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Mr. Speaker, spending on machinery and equipment by businesses in Canada, and on research, development and innovation, has been falling as a share of GDP in Canada for many decades, in fact dating back to the large corporate tax cuts that Paul Martin introduced at the turn of the century. To compare us to the United States, in 2014, investment support per worker in the U.S. was $20,700, and it was $14,400 in Canada. In 2023, the U.S. spending per worker rose to $27,800, and it is only $14,500 in this country. It has gone up $100 in about 10 years. I am wondering whether my hon. colleague would agree with me and the NDP that we need to find ways to have the business sector in this country invest more in machinery and equipment and in technology and innovation, and whether he has any ideas to share with the House as to how we could do that to better support workers and, by doing so, improve Canada's economy.
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  • Apr/29/24 6:02:28 p.m.
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Madam Speaker, I know my colleague is going to oppose this budget, but maybe he would like to be a little specific about some of the reasons why this is such a challenging budget for small businesses.
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Madam Speaker, I am pleased to speak to Bill C-368, an act to amend the Food and Drugs Act, natural health products. In a time when we are seeing more businesses close than open each month and when business insolvencies are skyrocketing, the last thing we need to be doing as Parliamentarians is putting higher costs and more red tape onto the backs of small business owners in the natural health sector. I have heard from small business owners across Canada that the government has turned its back on them. They simply cannot keep up with the higher costs and burdensome red tape that the Liberals, with the support of the NDP, keep piling on them. According to Statistics Canada, more businesses closed than opened in December, and this is the fifth time in six months that this was the case. On January 1, the government increased payroll taxes. In February, insolvencies rose 58.1% year over year, according to the superintendent of bankruptcy. In March, the senior deputy governor of the Bank of Canada called the lack of productivity in Canada's economy an emergency. On April 1, the government hiked the carbon tax by 23% and, just last week, the Canadian Federation of Independent Business reported a drastic decline in both short-term and long-term business competence, with both dropping by 5.4 points in their monthly business barometer. What does all of that have to do with natural health products? Last spring, the NDP-Liberal government passed Bill C-47, which allowed Health Canada to regulate natural health products in the same way as therapeutic synthetic drugs. Canadians depend on natural health products, which include vitamins, protein powders, probiotics and even fluoride-free toothpastes. Members can think of the young guy in the gym taking a supplement or the mom who uses eastern medicine and frequents the local Chinese herbal medicine shop. Those are the people Health Canada is going after. As a British Columbian, I would be remiss if I did not mention that, at the same time the government is trying to prevent our teenagers from getting the supplement powder they want, it has legalized possession of fentanyl, which led to record deaths from illicit substances the very same year, over an argument about stigmatization in British Columbia. After nine years, Canadians can see clearly that there is no common sense in the approach that the government is taking for natural health products. The changes made will reduce choice, increase costs for consumers and drive businesses, investment and product development out of Canada. What is exactly changing for natural health products? First, Health Canada is implementing new regulations that treat natural health products the same as over-the-counter synthetic drugs, placing significant red tape on the small- and medium-sized businesses that produce and sell these products. This will result in fewer options for Canadians, pushing consumers to foreign online retailers, where consumers may have no idea where the product came from or what, in fact, is in it. Second, Health Canada is introducing new fees on licensing, manufacturing, labelling, importing and packaging that could cost a business more than $100,000. I looked up cost of those fees before my speech tonight. There is a licensing fee of over $20,000, a site amendment fee of close to $5,000, a class III product license application of up to $58,000 and a product license amendment of up to $23,000. I have spoken to owners of health food and supplement stores in my riding and across Canada. They are terrified about what these changes will mean for their businesses and their customers. These new fees and regulations will mean fewer products at higher prices on their store shelves, potentially depriving consumers of the benefits they rely on for their health and well-being. For many stores, these changes could mean they close entirely. Mike Bjørndal is a buddy of mine. We went to high school together. He left a stable job. He started a small business with a few other partners in the natural health food supplement industry. Mike told me directly that if these changes go through, they are moving their shop to America, reducing their taxes paid in Canada and shutting their doors. That is the consequence of what Health Canada is doing right now. Then, there is the Vanderwall family. Mrs. Vanderwall runs a side business of supplements, which adds a little to her husband's income, just to get by with their seven kids. They rely on the current regulatory framework to pay their monthly bills. The natural health product industry continues to introduce new ideas and improve products. However, higher licensing fees would discourage companies from investing in research and development, meaning fewer new products being developed or manufactured here in Canada. Natural health products play a crucial role in addressing unique health concerns that conventional medicine may not adequately address. Higher fees would invariably lead to fewer options, and consumers would be forced to turn to pharmaceutical alternatives or products that are not made in Canada. I referenced the alarming statistics on business insolvencies earlier, and these changes are only going to make things worse in an industry that generates billions of dollars in economic growth in Canada. Given all that, I am very proud to stand and support the member for Red Deer—Lacombe's bill, Bill C-368, to repeal specifically sections 500 to 504 of Bill C-47 and to restore the status quo on natural health product regulations. As he mentioned in his speech, under the current rules, the government can already have a stop-sale order provision. It has seizure provisions and inspection provisions, and it already pre-authorizes the products on Canadian store shelves. Health Canada's 2019 summary report, “Adverse reactions, medical device incidents and health product recalls in Canada”, highlighted that of the 96,000-plus adverse reactions filed, only 3.8% were related to the natural health sector. We know that these products are safe and that existing regulations are sufficient. Since last spring, my office, like the member for Richmond Hill's, has heard from literally thousands of people who are concerned about what the government is doing and about the increase in red tape it is suggesting through these regulations. Instead of saying that we need these regulations because of the growth in the industry, I would point out that his constituents, like mine, are simply scared of more government overreach that is going to impact their economic well-being and the viability of their businesses. No matter where one goes in Canada, on every main street, in practically every single shopping mall in our country, we are going to have a natural health or supplement-style store. These stores provide valuable products that keep Canadians healthy and that improve our mental and physical well-being. The last thing we should be doing right now is attacking those very businesses that millions of Canadians rely upon. With that, I implore everyone in this chamber to support this legislation and to stand behind our small businesses and our wealth creators who provide real and adequate services for Canadians under the existing regulations.
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