Industry Committee on Nov. 27th, 2012

[Jean Rousseau, NDP, Compton—Stanstead, QC]

Okay.

Regarding CIIF, why is it that, not only my office, but also the offices of several members have been trying to obtain—unsuccessfully—information about that program? We have tried to contact your agency, but it's impossible to obtain clear information on the program. Many community organizations would like to know about it. They are trying to communicate with your regional branches, but it's impossible to get answers. When we try to obtain information personally, we are referred to you. I expressed my desire to meet with you in order to obtain information three times, and I have always meet with a closed door. I don't understand. The legislation stipulates that we must collaborate and co-operate for the development of Quebec regions. We think that's very important.

I have always had a passion for economic development. When I was elected to Parliament on May 2, 2011, I thought the Economic Development Agency of Canada for the Regions of Quebec Act was amazing. However, you must agree that it's essential for all stakeholders to work together. Why is it that, for six months, we have been trying to obtain all kinds of information—either basic information or information on how the program will be applied and made available to communities—with no luck? Can you explain that to me, please, Minister?

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Mr. Rousseau, your claims are absolutely false. Everything is available on the Internet; all the information on the program is available on the Internet....

[Jean Rousseau, NDP, Compton—Stanstead, QC]

I understand....

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

You asked a long question, so you will let me answer it.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

That's fine, but your answer shouldn't be too long.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

We have received 542 requests. You want to know who has been accepted under the program. That's what people want to know. However, the request review process is ongoing.

For all of Canada, $75 million is available, and we have received 4,585 requests. In Quebec, we have received 542 requests—the total value of which is $132 million—but only $15 million is available. For each request we accept, we have to reject 10 others, just so you know. I want you to know that all the information you are asking for is available.

To wrap this up, I want to come back to CIIF. The request review process is ongoing. We have set criteria that are a matter of public record. The whole process has been public since the beginning. The relationship between politicians and business offices is such that politicians deal with politics and technicians deal with the technical side of things. That's always been the case.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

I hope so.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

I know that you have been involved in a CLD in the past. I have also been president of a CLD, and I know how this works.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

I also worked in a CLD.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

That's what I said. I know that. I was president of a CLD. We won't try to impress each other.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

No, absolutely not.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Politicians do politics. If MPs call business offices located in Quebec regions to obtain information on clients' files, they won't get it. They could actually never obtain that information. This has nothing to do with which government is in power, but with how things work. When politicians know how the system works, they don't call technicians to ask them where someone's file is. We are doing the right thing by following the rules.

I want to add that I am also minister of three departments, including the Department of Transport, Infrastructure and Communities, and I have very little time. Generally speaking, our team and my office staff review the requests we receive. I agreed to meet with you. My team manages the meeting process, and I don't know where they are at when it comes to that. I came here from a procedure and planning meeting, and I have another one to attend after my appearance. I am not saying that I should be pitied, Mr. Rousseau. I simply want to point out that I have taken your request into consideration. I accept it with pleasure, and we will see when we will be able to meet. That said, all the information on Canada Economic Development's programs is available on the website.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

How much time do I have left?

[The Chair, Conservative, David Sweet]

Okay, that's all the time there is.

Now we go to Mr. Carmichael for seven minutes.

[John Carmichael, Conservative, Don Valley West, ON]

Thank you, Chair, and good morning, Minister.

Minister, I come from a background of small and medium-sized enterprises, so I'm particularly interested in the CED success. Clearly you've enunciated some success that I find very impressive in regard to some 4,000 projects across the province that you've enacted and been able to support.

On the dollar investment by the government, by the CED, to the $2.33 of project investment by the investors, is that a standard number that they developed, or is that something that varies by project as you evaluate various SMEs and their projects?

[Thao Pham]

I'll try to answer the question. The ratio of $1 to $2.33 is an average. We did undertake a study over a time span; then we looked at the SMEs that benefited from our support, and that's the average we got from that.

[John Carmichael, Conservative, Don Valley West, ON]

Okay, so it varies project by project as you evaluate.

[Thao Pham]

That's right.

[John Carmichael, Conservative, Don Valley West, ON]

As you talk about Embrionix and Métal 7 in your report, clearly they are two very good success stories. Do you have data? As you know, as a government we support job creation and economic development, so is there a measure for job creation when you look at the 4,000-some projects across the province?

[Thao Pham]

With respect to each project that we fund, we do have a set of performance measurements that are expected from proponents, so they do report on that in some cases, where we are looking to get the number of jobs created and the sales and other indicators as well.

In a study that we undertook recently over five years, for example, we looked at the SMEs that we helped, and more than 70% of them have a greater survival rate than in another comparison that did not profit from our help. Also, a very successful indicator for us is that more than 70% of those companies have also a high rate of sales and

a sales figure.

Therefore, those are very, very significant for us.

[John Carmichael, Conservative, Don Valley West, ON]

When you speak of the 70%, is that a 70% success rate?

[Thao Pham]

It's 70% of the population, of the number of companies that we help.

[John Carmichael, Conservative, Don Valley West, ON]

Right. It's those that are successful with the project. Obviously, you can't pick winners and losers all the time, so you do your best.

Is there any more information you can give us on that particular project, or on CED support of SMEs, that would help us as you go deeper into the discussion of your success in that area? We see the two, but do you have any further information?

[Thao Pham]

I would invite you to take a look at our website. We do have success stories that we publish, but also the departmental performance report explains in great detail the outcomes from our programs.

[John Carmichael, Conservative, Don Valley West, ON]

Good. Thank you.

The international cruise development initiative is a fascinating program. I wonder if you could provide us with a little more information on that, including some of the objectives and the results achieved that you can measure so far.