Canadian taxpayers could be on the hook for millions of dollars in health care costs unless something is done to stop the spread of hepatitis C among injection drug users in federal prisons, a House of Commons committee heard.

The committee is looking into addictions in Canada's prison system.

In a presentation to the committee on Thursday, Dr. Peter Ford showed a dirt-laden, homemade rig — basically, a pen with straight pin attached. Such devices are common in Canada's prisons, said Ford, who has seen the problem first-hand for more than 25 years.

The syringe was probably used by at least 10 different people, several of whom would have been infected with hepatitis C, said Ford. He used the prop to make the point that despite millions of dollars being spent to prevent drugs from getting into prisons, inmates still share needles and fall ill.

Studies suggest at least 30 per cent of Canada's prisoners have hepatitis C.

"We haven't seen the full impact of this yet," Ford said. "When it happens, we're going to have people in prison with liver failure. We're going to require hospitalization, expensive medication. The transplant system is simply not going to be able to cope with the volume."

Ford told the MPs that several countries, including Russia and Iran, have needle-exchange programs in prison that are preventing disease. Canada should set up similar programs, he said.

The idea didn't sit well with Conservative MP Brent Rathgeber of Edmonton.

"How does Corrections Canada possibly solve the dilemma by sanctioning if not enabling a violation of the Controlled Drugs and Substances Act?" he said.

The MPs are scheduled to visit prisons in Canada and Europe later this month.