Industry Committee on May 7th, 2014

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

So what will the result be?

[Denise Frenette]

There will be no board.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

There will no board to ACOA? There will be no Government in Council appointments? There will no board at all?

[Denise Frenette]

Yes.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Very interesting. Thank you for that.

You referred to your flexibility on the nature of projects when you were responding to Mr. Cuzner. Could you expand on that?

[Denise Frenette]

We have three major programs: the business development program, the innovative communities fund, and the AIF, which is the Atlantic innovation fund.

If I take the business development program, a lot of it is focused on supporting small and medium-sized businesses. Under this program, we do a variety of different things, such as innovation projects, business skills development, capital projects, and modernization.

Under the innovative communities fund, we can provide funding for a number of different types of community-based projects. Within the programs that we have, we have the flexibility to respond to the needs of the stakeholders.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

When you say that you have a very flexible program, and I'm specifically zeroing in on your response to Mr. Cuzner, what does that mean?

[Denise Frenette]

Typically what we would do with somebody who approaches the agency is look at what they're trying to achieve as an applicant, and then we would see how we could best provide funding to support the objectives intended.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

When you provide funding, is it with interest? How does that work?

[Denise Frenette]

If it's to businesses, it would be non-interest bearing, and no security. If it's to communities or non-profit, it would be a non-repayable contribution.

[The Chair, Conservative, David Sweet]

Thank you very much, Madame Frenette.

Thank you very much, Madame Bateman.

Next on my speakers list I have Madame Gallant. She's not here, so it would be Mr. Warawa for five minutes.

[Mark Warawa, Conservative, Langley, BC]

Thank you, Chair.

I found today's witness and testimony very helpful and encouraging. I think back to Monday, when we heard that the wireless industry was going to reduce costs for Canadians. There were efficiencies being implemented with the new plans, the things we're doing for wireless and investments we're making in that to make life better for Canadians.

Then, we heard later on, regarding trademarks, that for 25 years Canada had been advised to get into the international regime where we are in sync with the rest of the world, that we were out of sync, and now that we are in sync, it is good for Canadian business, and for our economic future, to make these changes.

Now, today, we're talking about further efficiencies. So, it's really encouraging that the government is on track—again, looking out for the economic future of Canadians and finding efficiencies. When you find efficiencies things work better, Canadians are better represented, and taxpayers pay less taxes. That's what this government is all about, and Canadians love it.

So, I found it very interesting, too, that the opposition's concern was that things were being fast-tracked. Now, 25 years to get in sync with trademark legislation is considered fast-tracking. We saw just a half-hour ago in the House that they don't like fast-tracking. They like things to slow down.

So, here we are talking about how we can find more efficiencies and better represent Canadians living in Atlantic Canada. Now, one of the suggestions in these changes we're talking about today is, with these efficiencies, to report not every five years but every year. My question is, do you think it's better to report to Parliament every year, instead of every five years? That's my first question.

[Denise Frenette]

First of all, the annual reporting is a requirement for all departments so ACOA has no choice but to report on an annual basic, like all our fellow departments. By reporting every year instead of every five years, I believe the information is more timely and transparent to Canadians.

[Mark Warawa, Conservative, Langley, BC]

I would agree, Chair, that, as the presentation says, it's redundant to require five-year reporting when we're doing it annually. But of course, the NDP wants us to slow down and maybe report every five years. I don't think that's good for Canadians. So, I do support the annual..., and also the dissolution of multiple organizations, and that we come up with one. We would still focus on the economic development of Atlantic Canada, but instead of two organizations, have one, and the efficiencies. What type of efficiencies are we going to see with one, instead of two?

[Denise Frenette]

I think it certainly will speak to a simpler process whereby there will be one suite of programming to consider, and it will be consistent throughout the Atlantic provinces.

The one thing I will mention is that this is not a cost-saving measure. The money that was directed towards ECBC will be transferred to ACOA's budget and will form part of the available budget to support Cape Breton. Therefore, any efficiencies drawn from streamlining the processing, having one suite of programming to respond to Cape Bretoners' needs, will go back into the Cape Breton economy.

[The Chair, Conservative, David Sweet]

Thank you very much, Madam Frenette.

Thank you very much, Mr. Warawa.

That's all the time we have for that round.

Now on to Mr. Masse first, and split with Mr. Cuzner...?

[Brian Masse, NDP, Windsor West, ON]

Yes, I have just a couple of quick questions.

Thank you for your testimony here today.

With regards to the merger that's taking place, are there going to be any positions that are lost, and which ones are those?

[Denise Frenette]

There are no positions of employees that will be lost. As mentioned previously, the position of the CEO will be abolished.

[Brian Masse, NDP, Windsor West, ON]

So just the CEO, and where would the CEO be based?

[Denise Frenette]

The position is currently based in Sydney.

[Brian Masse, NDP, Windsor West, ON]

So Cape Breton will lose its CEO.

[Denise Frenette]

Yes.

[Brian Masse, NDP, Windsor West, ON]

Okay. Now budget-wise, are there reductions to the budgets for this upcoming bill?

[Denise Frenette]

There will be no reductions in budgets. The budgets appropriated to ECBC will be divided between ACOA and Public Works and Government Services. ACOA will receive the appropriation associated with economic development activities and Public Works will receive the appropriations needed to assume the responsibilities for the former DEVCO liabilities.

[Brian Masse, NDP, Windsor West, ON]

So just in summary, just to make sure, as an example then, the CEO position that is being terminated, the money from that CEO position is then turned into the programs?