Debates of April 21st, 2009

Paul Szabo Mississauga South, ON

Mr. Speaker, I thank the member for introducing the motion. It has many elements in it that are very important to all Canadians. First we have regional economic development because there are areas in Canada that need assistance to maintain a vibrant and stable economic climate for employment promotion.

Recently we dealt with a bill about tax credits to help young people stay in their communities rather than eroding the labour force available to them. Statistics Canada is now saying that young people under the age of 25 have been the ones disproportionately affected by job losses across Canada. I can only assume that Quebec is reflective of that same experience.

Is the member aware of the situation of youth in these areas and whether the innovative program of using the non-profits through the Economic Development Agency was dedicated to some extent to the promotion of or job creation for young people?

Serge Cardin Sherbrooke, QC

Mr. Speaker, every region has its own characteristics and in each one, youth migration is a major problem. Non-profits were active in the economic field, were doing promotion work and were even helping businesses to start up, particularly innovative businesses. Innovation is where we have to invest. This is increasingly the result of a better education which, in turn, leads to the creation of research firms. The Conservative government is often against research, saying it is useless. So many businesses were created from--

The Deputy Speaker Andrew Scheer

Order.

Resuming debate.

The hon. Parliamentary Secretary to the Minister of Public Works and Government Services.

Jacques Gourde Parliamentary Secretary to the Minister of Public Works and Government Services and to the Minister of National Revenue

Mr. Speaker, it is my pleasure to participate in the first hour of debate on the motion moved by the member for Sherbrooke. At the outset, I want to make it clear that Economic Development Canada never abolished funding for non-profit organizations.

In 2007, the former minister of Economic Development Canada made a courageous decision that was necessary given the context he had to deal with. However, that decision also gave Economic Development Canada access to some flexibility it no longer had. Thanks to our Conservative government's good management, funding by default based on nothing more than an activity is now a thing of the past.

When he took over the reins, the Minister of State (Economic Development Agency of Canada for the Regions of Quebec) conducted a detailed analysis of all of his files. The difficult economic circumstances during which the minister took over called for quick, coherent action that took into account the harsh realities Quebec's regions were facing. That is why the minister undertook consultations in all regions of Quebec. He thought it was important to meet people on their own turf, stakeholders and elected representatives, everyone who was participating in their community's economy.

Each time, discussions focused on the following issues: How can Economic Development Canada do a better job of helping communities going through hard times? How can Economic Development Canada work more effectively with regional economic stakeholders? How can Economic Development Canada provide better support to the creation and growth of small and medium-sized businesses?

It was through consultations, for example, that the minister heard the concerns of the economic development community. Thus, on March 18, 2009, the minster was able to go ahead and open up financing to certain not-for-profit organizations, based on specific criteria. This new approach will be used for the next two years. From now on, all not-for-profit economic organizations with projects designed to deliver services that meet the needs of small and medium-sized enterprises or communities may apply for financial assistance, including operating costs.

However, the projects submitted must meet Economic Development Canada's priorities. They must facilitate the adjustment of regions and communities to the new economic context and enhance the performance of small and medium sized enterprises. To ensure the sound management of public funds, we want the projects selected to produce concrete results that will benefit Quebec’s enterprises and regions.

I must point out that the new policy is being very well received by a number of public stakeholders. I would like to mention, for example, the enthusiasm expressed by Quebec City's mayor, Régis Labeaume.

Following our announcement, Mr. Raymond Bachand, Quebec Minister of Economic Development, Innovation and Export Trade said:

Today's announcement demonstrates that the federal government has recognized the important contribution to the economic development of Quebec of the not for profit economic organizations.

Not for profit organizations will again have access for a period of two years to federal government funding, an essential complement to the action of the Government of Quebec. The economic vitality of Quebec is unfolding, day after day, thanks to the work of these economic leaders.

That was from a press release dated March 18, 2009 and released by Raymond Bachand, Quebec's Minister of Economic Development, Innovation and Export.

I would also like to remind hon. members of the favourable reaction by a number of these not for profit economic organizations, including Montréal International, PÔLE Québec Chaudières-Appalaches, Aéro Montréal and Laval Technopole. Thanks to our financial support, the non-profit economic organizations will be better able to support the development of Quebec businesses and communities. That is what the people in our struggling communities are hearing, and that is what we and our partners are focusing on.

Under our government, examples of assistance to the regions of Quebec abound. Through its 14 business offices, the Economic Development Agency of Canada works with a clientele comprised for the most part of SMEs and non-profit organizations.

We have been very proactive and attuned to the needs of the regions and communities experiencing difficulties during this period of economic crisis. The programs and measures put in place by the agency bear witness to our commitment to finding solutions in the best interests of the workers of the country and of Quebec.

I am thinking of such programs as Community Diversification, which enables the regions of Quebec to maintain and develop their economic base, and of Business and Regional Growth, which enhances the conditions favourable to the sustainable development of regions and of SMEs.

These are in addition to numerous other measures, such as funds to assist with the creation and transfer of businesses, set up in collaboration with the community business development corporations joint fund. More specifically, our government created a $1 billion Community Adjustment Fund to help communities depending on struggling economic sectors, and over $200 million will go to Quebec.

Our new policy on the non-profit economic organizations is evidence of our ability to listen and intervene in order to ensure the viability of our communities in the best interest of workers, business and the regions of Quebec. I would therefore encourage the members of the opposition to set partisan games aside and work with the people they represent in order to take advantage of this new policy.

Alexandra Mendes Brossard—La Prairie, QC

Mr. Speaker, I would like to begin by congratulating my colleague from Sherbrooke on introducing this motion, which calls for support for non-profit bodies. It is crucial to reinstate funding for these bodies, as they play a pivotal role in economic development in Quebec.

Since the Conservatives came to power in 2006, funding for non-profit organizations and for CED in general has decreased steadily. Generally, that means that economic development is not a priority for this government. At times of economic difficulty such as the period we are going through at present, CED should be the main engine of economic development in the regions of Quebec. CED should be ready to invest heavily in non-profit organizations that help small and medium-sized enterprises develop.

Since 2005, when the budget for CED was $444 million, the agency's funding has decreased by 45%. This is a huge reduction for a department whose mandate is economic development.

Another sign that this department is not high on the government's priority list is the number of applications for grants or financial assistance received. In 2006-07, 1,179 applications were received. Because of changes to the eligibility criteria for applicants, the number was down to 596 in 2007-08. In 2006-07, 235 applications were denied. In 2007-08, 223 were denied. But what stands out is that the number of applications that were approved went from 944 to 373. There was a significant decrease in the rate of approval of applications for financial assistance and grants, and it shows the dramatic change this government made in managing Canada Economic Development for Quebec Regions.

Obviously, there is the whole issue of eligibility criteria for non-profit organizations. The government has announced that funding will be reinstated for the next two years, but as my colleague for Sherbrooke said, it has not made any change to the eligibility criteria for these programs, which means that 75% of the non-profit organizations in Quebec still will not have access to this funding.

This proves once again that, in the eyes of the Conservatives, the role of the government is not at all to support and to help communities for them to develop and above all to stabilize in a period of economic crisis.

In my view, one glaring number is quite telling. Their success rate in implementing their own programs is barely 4%. The funds barely get to those who need them and this causes a great deal of problems for our regions.

The other evidence, as it were, of the lack of interest or lack of conviction of this government for the economic development agencies is the reduction of these departments in October 2008. They became ministries instead of being full-fledged departments as they were before. To conclude, I would like to mention that subsidies coming from CED, for Quebec, were reduced by $75 million.

I will obviously support the motion tabled by my colleague from Sherbrooke. I hope that the government will take into account the need to give the agency what it needs in order to properly support the regions of Quebec.

Thomas Mulcair Outremont, QC

Mr. Speaker, the New Democratic Party will also support the motion of the member for Sherbrooke. In the few minutes allocated to me I will focus on the intervention of the member for Lotbinière—Chutes-de-la-Chaudière. I wonder if he sometimes has moments of lucidity. He just told us that the Conservatives never made cuts to the program. Yet, our colleague who just spoke provided data showing that two-thirds of the program and subsidies have been cut.

I listened to the member for Lotbinière—Chutes-de-la-Chaudière read the text prepared for him. It was full of empty rhetoric and platitudes, the stuff typically written by ministers' staff for the puppets who rise in this place. We all remember him, during the election campaign, when he drove a truck—

The Deputy Speaker Andrew Scheer

The hon. member for Lévis—Bellechasse has the floor on a point of order.

Steven Blaney Lévis—Bellechasse, QC

Mr. Speaker, we are talking about Canada Economic Development. The member for Outremont will be able to campaign in due course. We are talking about clowns, puppets and trucks in the House. Could we focus on the debate? We are in the midst of an economic crisis. Could the member for Outremont raise the tone of the debate today and not make personal attacks? Otherwise, he will find us in his way.

The Deputy Speaker Andrew Scheer

The hon. member for Lévis—Bellechasse raised a point of order concerning the relevance of interventions. If all members who rise to speak could keep in mind the subject at hand, that would be best for the House.

The hon. member for Outremont.

Thomas Mulcair Outremont, QC

Mr. Speaker, you are quite right to remind the House that we must stay on topic. I began by explaining that the NDP supported the motion moved by the hon. member for Sherbrooke. I then congratulated our Liberal colleague who had just given some figures demonstrating that, contrary to the completely false statements made by the member for Lotbinière—Chutes-de-la-Chaudière, the subsidies were cut by two-thirds.

I was in the midst of reminding the people watching us who the member for Lotbinière—Chutes-de-la-Chaudière was, in order to support my comments concerning the motion moved by the member for Sherbrooke. That was the same member who, during the election campaign, was put behind the wheel of a truck in order to travel around Quebec to insult the democratic choices made by Quebeckers. That is also the same member who just rose in this House, since it is pretty easy to convince him to do just about anything. He just rose in this House to refute the evidence. The same Conservatives who convinced him to drive around in a truck also convinced him to rise in this House to read a speech full of falsehoods.

When he was talking about the intent to boost community vitality and ensure good management of public funds, he must have forgotten institutions like the Marine Biotechnology Research Centre in Rimouski, which I have visited on several occasions. It was one of the institutions targeted by the great Conservative policy-makers, the reformers who tell members like the member for Lotbinière—Chutes-de-la-Chaudière what to tell us here in the House, what tangled web to weave.

The Marine Biotechnology Research Centre in Rimouski is a centre of excellence. They recruited some 30 Ph.D.s and post-doctoral students from the regions, people trained at Scripps and MIT and the best universities in Canada and the United States. The only way to bring them back to the region is with a research institution like that.

However, according to Conservative ideology, there is no room for non-profit organizations in the economy. That is what the Conservatives from Quebec are saying. They are unable to take a stand for home-grown Quebec institutions or for supporting local economies to attract quality, intelligence and expertise to the regions of Quebec. They would rather dismantle the Quebec model. But they are not content to destroy it by cutting off funding. They want to destroy it by standing up in the House and justifying what can never be justified.

The member had the nerve to say that it was a courageous, necessary decision. Since when does it take courage to cut funding from economic development institutions that were created to help the regions of Quebec? Since when is it necessary to withdraw public funds from institutions that create employment and build the knowledge base? There may be just one way to reach the Conservatives, so let us remember that the only way to create wealth—

The Deputy Speaker Andrew Scheer

I am sorry but I have to interrupt the member for Outremont since there is a problem with the simultaneous translation for English-speaking members.

It is working now.

The member for Outremont.

Thomas Mulcair Outremont, QC

Do I have 10 more minutes? May I resume? Could the clock be reset to zero? There is so much to say about the extreme right ideologists that we call the Conservatives. They systematically attack the institutions put in place by Quebec. They laugh nervously when presented with evidence of their negligence because they are unable to stand up, to look at the Reformists making cuts in the economic institutions put in place by Quebec and to tell those people that it is the wrong way to go.

I started by asking the member for Lotbinière—Chutes-de-la-Chaudière if he sometimes has moments of lucidity, when he realizes what is going on. Do you know what? I prefer that he continues the same way, not realizing what he is doing. This is a bit like another member from Quebec City, who used to be the minister in charge of culture and who had the brilliant idea, just prior to the last campaign, to slash the programs supporting culture.

It had the desired effect. At least the Conservatives were prevented from getting their majority. That is a great achievement for Canada as a whole. We have succeeded in preventing those extreme right ideologists from getting the majority. I do not even want to think about what kind of country we would have right now if we had let them get that majority.

That is the kind of approach extreme right wing ideologues, reform ideologues, go for. It is one thing for them to decide to put an end to the involvement of the not-for-profit sector in the economy, in their regions, that is alright. But it is another for the members for Quebec, Lévis, Chutes-de-la-Chaudière or Beauce to rise in this House and deny the reality. The former minister responsible made cuts. Thankfully, the new one is putting money back. The fact remains that these members are trying to deny the reality. That is the kind of mad idea they acted on during the last election campaign, when they sat behind the wheel of their truck with the brilliant and oh so talented Michael Fortier.

Whatever became of Michael Fortier? Let us not forget that the same Michael Fortier lost to now senator Leo Housakos when he ran under the Reform Party banner in my riding of Laval. We can see what the Conservatives are all about.

This is a very timely motion the Bloc Québécois has put forward. I will read it so that everyone watching understands what it deals with, assess it and compare it to the nonsense coming from the member for Lotbinière—Chutes-de-la-Chaudière.

That, in the opinion of the House, the government should reconsider its decision to eliminate the funding channelled through the Economic Development Agency of Canada for the Regions of Quebec [which was unquestionably eliminated, whether the member for Lotbinière—Chutes-de-la-Chaudière likes it or not] to non-profit bodies active in the economic development sector, and reinstate their funding.

If the Conservatives took the slightest pride in Quebec's economic performance over the past 40 years, in what was accomplished in Quebec, they would not assist the Reformers in dismantling and demolishing it. They would not demonize it, as the member just did in his pathetic and shameful remarks to this House.

We, however, will stand up for Quebec and its institutions and vote with the Bloc and Liberal members to reinstate the funding which was undeniably cut by the Conservatives and their extreme right wing friends.

The Deputy Speaker Andrew Scheer

It is my duty to inform hon. members that, pursuant to Standing Order 93(3), no amendment may be proposed to a private members' motion or to the motion for second reading of a private members' bill unless the sponsor of the item indicates his consent. Therefore, I ask the hon. member for Sherbrooke if he consents to this amendment being moved.