Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Standing Senate Committee on National Security, Defence and Veterans Affairs Bill C-21,

An Act to amend certain Acts and to make certain consequential amendments (firearms) Canadian Sporting Arms and Ammunition Association September 1, 2023

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Table of Contents

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Economic Impacts ............................................................................................................... 5 Industry Overview .............................................................................................................. 5 Handgun Prohibition Impact ........................................................................................... 5 Semi-Automatic Prohibition Impact ........................................................................... 5 Airgun Prohibition Impact…………………..…………………………………… 5 Statements From Businesses ............................................................................................... 6 Economic Impact Report .................................................................................................... 8

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses

Summary Canadian Sporting Arms and Ammunition Association PO Box 29, South Glengarry, Ontario K0C 1L0 705-875-2302 info@csaaa.org Friday, September 1, 2023 To the Standing Senate Committee on National Security, Defence and Veterans Affairs Subject: Impact of Firearm Regulations in Bill C-21 on Canadian Businesses We, the Canadian Sporting Arms and Ammunition Association, a non-profit and non-partisan organization, write to express our deep concern regarding the far-reaching consequences that Bill C-21's firearm regulations will have on Canadian businesses and lawful citizens.

While we acknowledge the importance of public safety, we believe that the current bill does not strike an appropriate balance and threatens the livelihoods of many Canadians. Handgun Freeze and Import Prohibition: The prohibition on importing handguns has significantly impacted firearm businesses, resulting in an income loss of over $50,000,000 annually for the industry. This not only affects businesses but also leaves consumers with valuable heirlooms and collections rendered valueless. We urge the Senate to consider alternative avenues for legal handgun sales and transfers.

Mid-Velocity Replica Firearms and Airguns: The overly broad terminology regarding mid-velocity replica firearms and airguns could harm legitimate retailers, hunters, and sport shooters without significantly enhancing public safety. The subject of airguns is too far reaching to be lumped into a firearm bill, and there are existing laws and practices that can be used instead, to increase public safety.

Definition of Prohibited Firearms: Prohibiting modern sporting and hunting rifles by definition threatens the industry and deprives hunters, especially those with physical disabilities, and sport shooters of vital tools.

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Certain hunting practices require semiautomatic firearms, making such provisions impractical. Hunters contribute greatly to Canada’s wildlife conservation, while sport shooters make up a majority of revenue for these small businesses. OIC Provisions: The potential enactment of provisions through OIC without proper consultation poses challenges for businesses, manufacturers, and public safety regarding magazine restrictions, firearm marking regulations, and storage regulations.

Broad magazine restrictions and firearm marking regulations can put the industry at an abrupt halt. Storage regulations, if not properly consulted, can quickly threaten public safety. The economic repercussions of Bill C-21 are immense. The firearms industry and related businesses employ over 45,000 Canadians and contribute significantly to Canada's GDP. Additionally, hunting and sport shooting activities contribute billions of dollars to the Canadian economy.

We believe that Bill C-21, in its current form, does not effectively enhance public safety and instead severely impacts an industry that supports countless Canadians. We emphasize that prohibiting legal firearms will not prevent illicit access, given the challenges posed by smuggling and 3D printing. We kindly request the Senate's consideration of these concerns and amendments to Bill C-21 to strike a balance between public safety and the economic well-being of Canadians. Sincerely, Jennifer Gadbois Managing Director Canadian Sporting Arms and Ammunition Association 705-875-2302 info@csaaa.org

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Impact of Firearm Regulations in Bill C-21 on Canadian Businesses As of our last economic impact report conducted in 2019: • Canadians spent $8.5 billion on hunting and sport shooting last year; • Hunting and sport shooting contributed $5.9 billion to Canada’s GDP last year; • Hunting and sport shooting accounted for 48,000 full-time equivalent jobs in Canada last year, resulting in $6.4 billion in labour income Industry Impact Insight If Bill C-21 passes as currently written, there will be irreversible, detrimental impacts on Canadian small businesses, workers, and our economy.

We are seeing record numbers of business closures in our industry due to the current prohibitions of handguns paired with the prohibitions of some modern sporting rifles in 2020 and the unworkable regulatory environment. Bill C-21 must be amended to strike a balance between public safety and industry longevity. Proper consultation with the firearm industry and stakeholders is crucial. Handgun Prohibition Impact Handgun transfer prohibitions impacted over 30% of revenue for businesses.

According to trade data from the Government of Canada, licensed Canadian firearm businesses imported an average of 50 million dollars worth of legal handgun and handgun accessories. There must be an alternative avenue opened up for licensed firearm owners and businesses to transfer and sell these handguns. Semiautomatic Prohibition Impact The definition adjustment for a prohibited firearm will prohibit all semi-automatic firearms going forward, while the committee prohibits all semiautomatic firearms manufactured prior to Bill C-21. These modern sporting rifles make up over 20% of revenue for most businesses.

Consultation with the industry will allow policymakers to understand the complexity of these firearms better and come to a more workable, effective policy. Airgun Prohibition Impact. Over 28 million dollars in replica firearms are imported into Canada every year. The provisions in Bill C-21 prohibiting mid-velocity airguns will not result in the desired effect of increased public safety. There are current practices and laws, such as orange tip identification or age verification that we believe will help achieve the goal of public safety without restricting our industry.

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Statements From Businesses Firearm Prohibition Impacts Faulkners Black Guns and Handguns sales loss $700,00 per year SFRC- has over $500,000 in "AR" inventory and he is greatly affected by this. Luckily, he has diversified a lot. He is also greatly affected by the handgun ban. It was a very large part of his business. Ellwood Epps- Employs over 30 people. Again, he has "AR" inventory and is also greatly affected by the handgun ban. Williams Arms - A true gun shop that has sold hunting rifles for over 40 years.

They are a very cautious account that did not get stuck with a lot of inventory, but "AR" style and handguns accounted for 40% of the business. Ontario East (EOSI Rep Doug Kingsley)- “Almost every one of my firearms accounts sold "AR" styles as well as handguns. Although I don't believe we will lose any of these guys. Their income streams have been greatly affected. Ramakko's, John's Tackle Box & Albert's- all remaining handgun inventory sold. Major impact on future business Ontario North (EOSI Re Luc Larocque)- I'm in a more traditional hunting area.

Black guns were not as big in Northern Ontario but still has had an effect from Handgun bans and accessories sold for these firearms. Tenda Canada – Incredibly effected by the new Handgun and Black Gun rules. Steve is one of the larger sources for Ammunition and Firearms for target sports in Canada, especially black gun and handgun related. He’s been forced to pivot his business model completely to focus on Hunting, Fishing, and the outdoors.

This is a massive expense for him and also a large undertaking for his Staff who are some of the best in the business for information related to Target sports, Black Guns and Handgun sports. Imagine having to re learn an entire new set of information to educate customers. Al Simmons Gun Shop – This is a small gun shop located in the heart of Hamilton Ontario run by a Wife and Husband for many years. 50% of their business is the sale of handguns and used handguns from estate sales.

With these new rules not allowing people to make money from prized possessions / heirlooms not only are the rules effecting sales at the retail level they are affecting people who have saved collections for a lifetime to support their family after they pass. Triggers & Bows – This is another firearms supplier that relies heavily on used firearms sales as they also run an auction business and transfer a lot of estate sales. Armurerie Léger: 70% of their business was Handguns. Danchasse: lost 30% of his revenue. Still has over 200 000$ of inventory in AR’s.

EOSI: Employs 18 people: Head Office Employees (8): 5 live in Burlington, 1 Oakville, 1 Stoney Creek, 1 Montreal. Sales Staff (10): 1 in Burlington, 4 others in Ontario, 2 in Quebec, 1 in New Brunswick, 1, in BC, 1 in Manitoba. They lost this business in recent years. Canik Handguns was over 1M in sales Savage Arms AR’s were approx. 250k in sales. Savage Handguns that were recently introduced in 2021 became nonentity and a loss of opportunity.

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses Firearm Marking Regulation Impacts The initial costs of basic equipment to comply with the engraving per business: Big Rock Sports $1,300,000 BowmacGunpar $383,500 Ellwood Epps $234,000 Korth Group Ltd $325,000 North Silva $1,690,000 Savage Canada $244,400 Stoeger Canada $780,000 Operation costs per year after the initial equipment costs range from $240,000 per year to $350,000 per year. Many businesses simply cannot manage those costs, especially after the majority of their "big seller" inventory is now prohibited. Economic Impact Report Conference Board of Canada 2019 hunting • 1.3 million Canadians participate in hunting

Impact of Firearm Regulations in Bill C-21 on Canadian Businesses • consumer spending on hunting totaled $5.9 billion • hunting generated a $4.1 billion contribution to Canada’s GDP • hunting supported 33,000 jobs and generated nearly $2 billion in labour income sport shooting • 1.4 million Canadians participate in sport shooting • consumer spending on sport shooting totaled $2.6 billion • sport shooting generated a $1.8 billion contribution to Canada’s GDP • sport shooting supported 14,000 jobs and generated $868 million in labour income Source: The Conference Board of Canada Economic Footprint of AHTS 2019 “We believe it’s impossible to craft meaningful public policy around firearms in Canada unless we get beyond the pro/anti gun rhetoric.

The sporting arms industry in Canada supports 48,000 jobs and some 4,500 small businesses. These business owners are committed to the safety of the communities where the live and work, their employees and their customers. They don’t see themselves or their clients reflected in the current debate around firearms in Canada.” Vision Statement To attain industry stability through self-regulation. Mission Statement To promote and protect the legal rights of manufacturers, importers, resellers, and stakeholders in the Canadian shooting sports industry.