Evidence of meeting #49 for Industry, Science and Technology in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was information.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Thao Pham  Vice-President, Operations, Canada Economic Development
Luce Perreault  Director General, Departmental Finances Branch, Canada Economic Development

11:15 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

If it's in next year's main estimates, is that becoming a more permanent program, or is it just a temporary program?

11:15 a.m.

Conservative

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

It's still a temporary program. That's because we finished the appeal on September 1. That's a very short time to build a program and deliver it. That's why we're doing it.

11:15 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

You're here for the Quebec region agency. Do these agencies traditionally deliver infrastructure money?

11:15 a.m.

Conservative

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

They deliver a lot of programs to the economic action plan in support of our agenda that work very well with the province. We have the sport infrastructure program and some other programs that have been delivered through the agency. That's why we have differences sometimes in our budget, because we have special funds to deliver.

11:15 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

Tell me about your mandate. Is the mandate to assist in infrastructure or business development? What's the agency's focus?

11:20 a.m.

Conservative

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

It's to support the SMEs of the province and to support the economic development of the Quebec regions, mainly the regions where the economy is more difficult. It's more difficult to create jobs in certain parts of the province. Our main goal, our main mandate, is to support these things.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

You support business and SMEs.

11:20 a.m.

Conservative

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

Yes, and the regions.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

What about other sectors?

11:20 a.m.

Conservative

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

That's our mandate, but we are a good tool for the regions anywhere in the country—I speak of the agencies in general—and to support the government.

I can say the department holds up the Canadian flag in Quebec in any region. That's CED-Q. We're very close to operations all across the province of Quebec, and I'm sure we have the best tools to deliver programs effectively to support infrastructure very closely. We are always in touch with the Quebec government. We have to work with them and we have some programs we need their authorization to deliver. I think that's why we have been mandated by our government to deliver these programs.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

The other thing that always drives me crazy on estimates is the use of moneys that weren't spent in other votes. On paper it looks like it reduces costs. They'll say they've allocated x dollars for this item, but since they didn't use it this year, they'll move it over and reduce the ask. That's my reading of it.

The accountant over here is shaking her head, but if we look at the transfers, funds available, less authorities available within the vote, we see that $5.8 million was available. Why was that not spent? Who decides how it gets transferred, and what is transferable and what isn't?

11:20 a.m.

Director General, Departmental Finances Branch, Canada Economic Development

Luce Perreault

Those are not amounts that the agency has not spent this year. When you passed the main estimates, they did not include the Budget 2012 decision or the reviews of departmental spending.

In our main budget, there was an amount of $7.2 million that represents our contribution to the 2012 spending review. So those funds become available to the agency. Given that our request for the Community Infrastructure Improvement Fund is for $15.6 million, but that $7.2 million is available as a result of Budget 2012 and the review of departmental spending, that reduces our request for votes. That is why we are asking you to pass an amount of $8.3 million today.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

No, I completely understand that.

11:20 a.m.

Director General, Departmental Finances Branch, Canada Economic Development

Luce Perreault

Okay. I'm sorry.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

It must be a translation issue.

When the main estimates were approved last year, there was extra money in that vote, and you're moving it over from there to help reduce the ask, are you not, of what you're asking for here?

You see, these supplementary estimates are at $9.5 million under vote 5. Then the total is $8.1 million. If that “Less: Spending authorities available...” were not there, the number that you are asking for would be higher, would it not?

11:20 a.m.

Director General, Departmental Finances Branch, Canada Economic Development

Luce Perreault

We would have asked for $15.2 million, the amount in the CIIF.

11:20 a.m.

Conservative

Mike Wallace Conservative Burlington, ON

That's right. You would have asked for $15 million.

My question is this. Who makes the decision that because that money was saved, not spent, that it gets allocated to this or allocated to that? I'm not saying it shouldn't be allocated somewhere, but who decides where it goes? Is that in your department, in Treasury Board? Who decides?

11:20 a.m.

Director General, Departmental Finances Branch, Canada Economic Development

Luce Perreault

That is the budget process. The government decided that we could not use that $7.2 million amount because it was actually our contribution under the spending review. The amount becomes available and is part of the government's budget process.

To reduce the number of requests for new votes as much as possible, we have to use it first.

11:25 a.m.

Conservative

The Chair Conservative David Sweet

Thank you, Ms. Perreault.

Thank you, Mr. Wallace.

We now move to Mr. Rousseau, for seven minutes.

November 27th, 2012 / 11:25 a.m.

NDP

Jean Rousseau NDP Compton—Stanstead, QC

Thank you very much, Mr. Chair.

Mr. Minister, thank you for being here. It is very important for us, and I think you know that.

You know that the economic development situation in the regions of Quebec is crucial for the vitality of the province. As members of Parliament from all parties, we find the supplementary budgets granted as the result of forecasting to be really important.

There has also always been good cooperation between members of different parties, the serving minister and the agency, the regional leadership and the agency, you might say.

Budget 2012 called for cuts of $28 million up to 2014-2015. You are announcing $15 million more, of which $7 million come from various savings.

How do you intend to fulfill your mandate after having closed two very major regional offices in the Montreal area, those in Longueuil and Laval?

11:25 a.m.

Conservative

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

There are different aspects to your question.

11:25 a.m.

NDP

Jean Rousseau NDP Compton—Stanstead, QC

Yes, there are.

11:25 a.m.

Conservative

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

Let us deal with the budgetary aspect first.

Ms. Perreault will be able to tell you more about it.

11:25 a.m.

Director General, Departmental Finances Branch, Canada Economic Development

Luce Perreault

From the $28 million, $4 or $5 million are for operations and there are $23 million in contributions. Temporary programs will not be renewed.

11:25 a.m.

Conservative

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

That's right.

As I said earlier during my presentation, the Economic Development Agency of Canada for the Regions of Quebec regularly implements ad hoc initiatives, which are part of funds managed by Canada Economic Development. It has long been known that the Temporary Initiative for the Strengthening of Quebec's Forest Economies and the Support Initiative for the International Cruise Development on the St. Lawrence and Saguenay Rivers would end. We're not talking about budget cuts here; we are talking about programs ending, and we have known about that for a very long time.

As all of our government's other departments, we have to set an example and contribute to deficit reduction. As Ms. Perreault mentioned, we have identified about $4 million in operating savings. We have consolidated business offices in the Montreal region. In the case of the Montreal region, we are talking about an integrated economy. I was a mayor for a long time, and I sat on the executive board of the Union des municipalités du Québec. I would go to Montreal two or three times a month, and I saw that people from Longueuil or Laval were all part of the metropolitan community. Everyone works together.

Canada Economic Development is not the only organization in Quebec with offices in greater Montreal. A number of Quebec and Canadian organizations have consolidated their offices and operations in the greater Montreal area. We have continued to provide support through some of our agents who cover all the regions. Some of them have remained on site. The whole area is very well served, and there is no impact on the services provided to entrepreneurs. We even visit companies to meet with people. We are doing a great job.

We have actually collaborated on the government's business and reduced our operating costs in order to keep taxes down. We continue to do our work. The Community Infrastructure Improvement Fund is a two-year program. After two years, $15 million will come off Canada Economic Development's operating budget because the program will have ended. That's exactly what just happened with most of the $28 million you were talking about.