Industry Committee on Nov. 27th, 2012

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

That program works very well with Quebec tourism within the government of Quebec. We have launched this program and we have some stops at Magdalen Islands, Gaspé, Sept-Îles, Saguenay, and Baie-Comeau. That's a very successful program. We have supported these municipalities and these regions to develop tourist offers. We have supported them with their needs.

For example, in Saguenay River we built a new pier, and that's growing and growing. We have supported for some time the infrastructure to develop touristic projects to support the offer, and that is going very well. We will double the number of cruises in the waters of the St. Lawrence and Saguenay Rivers. That's a very successful story.

For us, the time for the money is over, but we're sure that the money we have invested will continue to let this economy grow and that the cruises will become more important in the province.

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

I think your projection for 360,000 visitors is remarkable.

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

It's from 150,000 to 360,000. Those numbers are good. For next year, in 2013, the forecasts are better again. We'll see, but they are still growing.

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

Do I still have time, Chair?

[The Chair, Conservative, David Sweet]

You have two more minutes.

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

The long-term sustainability I get. As CED works on its projects, and you have the cruise program, is long-term sustainability a measure that you use as well in those programs? Obviously in the cruise it is, because you have finished your funding and you feel that it's going to continue to grow.

I wonder if you could talk a little further on the SMEs and just how impactful the investment the federal government is making is going to be in the long term.

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

Often we make the difference. Often the owners or managers of SMEs are telling us that we are the first financial support they have received. The others are coming after.

Often CED-Q in Quebec's regions shows the way to other partners like Investissement Québec and some others, and we really make a difference in smaller or a bit larger businesses. We have success all across the province.

We were speaking about the mining industry, which continues to grow. We have supported many projects in Abitibi to help small enterprises develop certain technologies that are used worldwide now. Technologies used in our regions are offered all across the world. Some are working in South Africa, in South America, and everywhere, and we are successful.

With 4,000 projects, we can give you a lot of examples, but first of all we need a promoter. If we don't have somebody or an organization to propose a project, we are unable to support them. We have changed the way we support them too. We are working more on technological transfers in order to support our economy specifically in different regions, so it's not the same economy and it's a different region.

In my own riding we depend 70% on forest industry products, but my region depends a lot on the aluminum industry. We're still very supportive of that. We support SMEs all across the region to develop the way they use aluminum.

[The Chair, Conservative, David Sweet]

Thank you, Minister.

Now we go to Mr. Regan for seven minutes.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you, Mr. Chair.

Thank you, Mr. Minister. It's a pleasure to have you with us, as a former office neighbour in the Confederation Building.

According to the 2011 and 2012 public accounts, your budget for last year was $480 million, but has been reduced to $306 million. That's a significant cut. Public accounts also indicate that $17.5 million was left on the table, so to speak. Can you explain to me why? That includes $14.3 million in vote 5.

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

I will ask Ms. Perreault to clarify the financial issue you just raised, Mr. Regan.

I would also like to thank you. I came here in 2007 as an MP, after having won the first by-election for our government. The House was at the time prorogued. I was elected on September 17, 2007, and upon my arrival, I was talking to the walls. No one was here, since MPs were all in their ridings. So you are one of the first members to greet me by shaking my hand and welcoming me. I will always remember that, Mr. Regan. I commend you for it.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you.

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

Ms. Perreault, can you answer his question?

[Luce Perreault]

Yes. As you mentioned, the expenditures have in fact been greatly reduced in 2011-2012 compared with the previous year. You should, however, recall that, in 2010-2011, Canada's Economic Action Plan was still in effect.

For instance, the Community Adjustment Fund—which was ongoing at the time—cost the agency over $100 million in 2010-2011. That has a lot to do with the significant drop in our expenditures in 2011-2012 compared with 2010-2011.

[Geoff Regan, Liberal, Halifax West, NS]

Canada's Economic Action Plan is no longer in effect, but there is still publicity about it, as far as I can see.

I would now like to talk about the estimates. The supplementary budget estimates (B) indicated, in vote 1 for the agency, that $150,000 was available, as well as $120,000. In addition, mention has already been made of $5.8 million, in vote 5, which was available for the government, but through savings, through reductions.

What kind of savings are we talking about? In which areas has the agency made cuts?

[Luce Perreault]

Regarding our contribution as part of the 2012 expenditure review, we have basically refocused the agency's spending on government priorities. Regarding operations, we have mostly simplified our processes, as we mentioned, by re-organizing our internal services to make them more efficient.

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

Of course, we have saved some money because certain temporary programs ended, as we have already mentioned.

We also contributed to deficit reduction. We did that without making any changes to front-line services. For instance, five positions in communications—which were previously held by five individuals in the region—were consolidated in Montreal. Communication strategies were in place at the central office, in Montreal, and applied in the province anyway. We have consolidated the Longueuil and Laval business offices in downtown Montreal in order to be able to serve the whole region better. We have really focused on efficiency, while not making any changes to front-line services.

[Geoff Regan, Liberal, Halifax West, NS]

You talked about some of the details, but there are probably others regarding the cuts made. Those are the kinds of details I'm interested in. There's nothing about that in your document.

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

Clearly, the daily management of the agency has much more to do with the individuals who have been appointed to do that work, such as Ms. Pham and Ms. Perreault.

So I will yield the floor to Ms. Pham.

[Thao Pham]

I will give you a few examples of efficient measures we have taken internally.

We used to publish a paper version of newsletters, but we will now use electronic formats more. That change leads to expenditure reduction. We are also reviewing our entire grants and contributions management process in order to reduce wait times for promoters, but also to cut any unnecessary red tape.

We are really reviewing our ways of doing things internally, especially when it comes to file analysis. We will work with clients to become more efficient.

We are also currently going over our whole internal service infrastructure. We will enhance our use of information technologies to communicate among ourselves and reduce travel for in-person meetings by increasing our use of telepresence technology.

[Geoff Regan, Liberal, Halifax West, NS]

Could you send the committee a detailed list of those savings? That's probably what Mr. Wallace, as an accountant, would like to see.

The supplementary estimates (B) revealed that a total of $15.6 million is earmarked as funding that supports existing community infrastructure.

Can you provide the committee with details about the additional funding of this $15.6 million to support “the rehabilitation and improvement of existing community infrastructure”, which is included in vote 5b?

I would like to know what portion of those funds is made up of new money and what portion comes from elsewhere, from savings.

I would like you to be specific in your answer.

[Thao Pham]

I will go over the figures the minister gave you earlier.

The CIIF envelope for all of Canada is $150 million over two years. Quebec's portion is $31.2 million over two years.

Today, we are asking the committee to allocate $15.6 million to the agency through supplementary budget estimates (B). As my colleague explained earlier, savings have been made under Budget 2012, so that money has been frozen, if I may use that expression. In short, there would be a single transaction instead of two.

I will ask my colleague to provide you with more details about that.

[The Chair, Conservative, David Sweet]

I think we're way over time. I wanted to have you finish most of your answer. I'm sorry, but I have to move on, with the time the way it is.

Now we're going to five-minute rounds.

Mr. McColeman, you have five minutes.

[Phil McColeman, Conservative, Brant, ON]

Thank you, Mr. Chair. Thank you, Minister, for taking the time to be with us today to explain the direction you're taking.

In your remarks, you mention the government renewed the CFP, the community futures program. Because of the differences between French and English, I want to confirm. In Ontario we know these agencies as CFDCs, which are Community Futures Development Corporations. Is this the same entity in Quebec, in terms of the terminology you've used?

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

I'm not sure, Mr. McColeman. We'll have to verify that.

[Phil McColeman, Conservative, Brant, ON]

I believe it is. I'm going to assume it is. My question really relates to the effectiveness and the efficiency of those programs as a vehicle to deliver assistance to SMEs on the ground within regions and within communities.

Of course, our government's commitment to not only renew but also increase funding for many of them across the country helps communities. In my riding, it helps many small businesses get off the ground, number one, and number two, it sustains them through those critical periods.

In your efforts, it's mentioned there are 66 local and regional development organizations, including 56 of the SADCs. I'm wondering whether you can relate to us how important they are in Quebec in the context I'm describing to you, which is the Ontario success with this as a delivery mechanism.