Joe McGuire

[The Budget, March 8th, 2005]

Mr. Speaker, I will be sharing my time today with the Parliamentary Secretary to the Minister of Citizenship and Immigration.

I am pleased to participate in the budget debate today, a budget that today was called the greatest budget since Confederation.

Within this budget are the cornerstones of our government's decade-long commitment to the sound fiscal management that has set us apart among the G-7 major industrialized countries, fiscal management that has given us the best job creation record in the G-7, the fastest growth in living standards and the best debt to GDP ratio among these industrialized nations.

The budget also represents our Liberal government's eighth consecutive balanced budget, a feat unmatched since Confederation. What this sound fiscal management allows us to do is to invest back in our communities and assist Canadians in seizing their potential.

Speaking as an Atlantic Canadian and as the Minister of the Atlantic Canada Opportunities Agency, I am delighted that our government has confirmed its commitment to building a strong east coast economy by allocating in the budget $708 million over five years for economic development in Atlantic Canada.

These investments include $300 million for a new Atlantic innovation fund, which will continue to build on our R and D capacity. This new allocation builds on the first ever R and D fund that was set up by ACOA in the 2000 budget.

It also includes $290 million to support initiatives that will diversify and foster development in communities across the region, whether through investments in human capital, trade, tourism or accessing investment opportunities.

It also includes $110 million over five years for the National Research Council to continue to build technology based clusters in the region.

Last, it contains $8.4 million in new funds for the community futures program to continue the important work of the region's 41 Community Business Development Corporations, which partner with ACOA to encourage business growth in mainly small and rural communities.

I want to take a moment here to extend my congratulations to my colleagues in the Atlantic Liberal caucus for their hard work, dedication and commitment to the people of Atlantic Canada. The initiatives I have outlined are the result of seven years of work that encompasses two economic development strategies initiated and developed by the Atlantic Liberal caucus.

Back in 2000 our government invested, through the Atlantic investments program, in new and innovative programming in the region. It was a bold move that was initiated by the Atlantic Liberal caucus's “Catching Tomorrow's Wave” document, which provided a blueprint for the region's development.

Now, in 2005, our government, our Prime Minister and our Minister of Finance are once again investing in the Atlantic Liberal caucus's vision and our second blueprint, “The Rising Tide”. Through this funding, our government is providing Atlantic Canada with the tools to build on the successes of “Catching Tomorrow's Wave”: more and higher paying jobs, more trade, more access to capital, more skills training and entrepreneurism, and more R and D. We are fostering and bolstering these achievements through “The Rising Tide”.

Atlantic Canadians are a proud people, proud of our history, proud of our culture and our work ethic, and proud of who we are and the significant contribution we have made to building Canada into the best country in the world. We also know that we are a region whose economy is transforming, moving from one dominated by primary resource based industries to new and innovative sectors.

Our businessmen and businesswomen are driving a transformative change in our economy. ACOA has been there to assist communities during this transformation. We are doing that by providing access to capital and by providing training, strategic community investments and programming for women and youth.

As a result, promising emerging sectors are developing that are strengthening and diversifying the economic base. Knowledge industries are rising to complement more traditional resource driven industries, like the bioscience centre in Charlottetown and the potato genome project in Fredericton. This budget builds on this success.

We are seeing more men and women and young people finding good, rewarding work than ever before. Entrepreneurship is growing and succeeding as never before in Atlantic Canada. We have more businesses and universities working together, more economic development in rural areas and more export and foreign investment activity in the region.

Through the budget we continue to build on this success. In fact, the budget singles out ACOA's Atlantic innovation fund as having promoted stronger linkages between universities and the private sector, which are essential to the development of new, marketable technology based products, processes and services. These partnerships support research and commercialization in key growth areas such as information technology, aquaculture, offshore oil and gas technologies and life sciences.

In the Acadian peninsula, for example, our investments are strengthening the economic viability of the shellfish industry. Through the Coastal Zones Research Institute, new marketable technologies and services are being developed that will lead to the further commercialization of new shellfish products.

In Nova Scotia we are contributing to building a world renowned life sciences cluster in Halifax. At the Brain Repair Centre, which I visited last week with the member for Dartmouth—Cole Harbour, R and D is being conducted for the repair of neurological diseases such as Parkinson's disease, multiple sclerosis and spinal cord injury.

In Newfoundland and Labrador we have invested in tourism projects, such as Lord Baltimore's Colony of Avalon, the archaeological site. The result has been an increase in tourism visits from 2,000 to over 22,000 a year.

Testori Americas Corporation, based in Milan, Italy, is now using a location in Summerside and one in Bloomfield in Prince Edward Island. It is a major North American supplier of manufactured textiles, especially for the mass transit industry.

The success stories go on and on in communities across the region. Building on the successes of our communities is what the budget is all about.

With budget commitments for a new Atlantic innovation fund, R and D investment and community and economic development, our government's response to “The Rising Tide” will build on what has already been achieved and move the regional economy into new growth areas. The budget will also enable us to shore up the broad underpinnings of our east coast economy as we move forward under “The Rising Tide”.

The budget invests in health care and in our seniors. It provides reforms to the equalization framework. It provides funding to cities and communities through the gas tax revenues. It eliminates the corporate surtax, which will assist the small and medium sized businesses that are the backbone of our regional economy.

The budget invests in defence spending, providing opportunities for Atlantic Canada's growing aerospace and defence sector. It invests in wind energy, our fishery, the Coast Guard, broader security and the workplace skills strategy. The list goes on and on.

For all these reasons, budget 2005 is a very good deal for Canada as a whole and Atlantic Canada in particular. This budget is a measured, reasoned, comprehensive response to the challenges we face on that score. It provides the right tools at the right time and for the right reasons, and it does so within a balanced budget.

I urge all hon. members from Atlantic Canada, both on this side of the House and opposite, to look at this year's budget, see how it builds on our successes and vote in favour of budget 2005.

[Quarantine Act, February 9th, 2005]

moved that:

Bill C-12, as amended, be concurred in, with further amendment, and read the second time.

[Regional Economic Development, December 7th, 2004]

Mr. Speaker, the member for Cape Breton—Canso is quite right. I was in Cape Breton last weekend with my two Cape Breton colleagues and with Premier Hamm and his cabinet to announce loans funding for Keata Pharmaceuticals that will result in over 175 well-paid jobs for the people of Cape Breton. Keata joins companies such as Tesma, CB Castings and EDS, which understand the benefits and value of investing in the people of Cape Breton.

Our government is also providing funds for a new training program in biotechnology and pharmaceutical technology at the University College of Cape Breton, which will assist the youth to stay--

[Supply, November 4th, 2004]

Mr. Speaker, I would like to quote two passages. First, the hon. member said on May 4, 2004:

There is hardly an area or community within New Brunswick Southwest that hasn't benefited directly from ACOA's programs. The list of firms that used ACOA support to expand and create direct jobs reads like a who's who of successful business and industries all across the riding.

Second, David Ganong said:

Here in Atlantic Canada, private companies do not have enough access to capital. And for companies like Ganong--that want and need to grow--to effectively compete, ACOA has filled a very meaningful role.

That is why it is still in St. Stephen, that is why it is still in his riding, and not in Montreal or Ontario.

[Supply, November 4th, 2004]

Mr. Speaker, as the minister responsible for the Atlantic Canada Opportunities Agency, it is my responsibility to help build a stronger economy in Atlantic Canada, and I take the job most seriously.

In discharging my responsibilities, I know I have a caucus and colleagues from across Atlantic Canada who share my belief that the Government of Canada can and must make a meaningful contribution to regional development in this country.

Our government's commitment to this principle was underscored in the Speech from the Throne, which reads:

Canada's regional economies are a vital source of economic strength and stability. Support for regional and rural economic development will target the fundamentals...by employing the regional agencies and tools such as the Atlantic Innovation Fund.

The Prime Minister himself summed it up best in his reply to the Speech from the Throne when he said:

We believe that Canada is strongest when all parts are strong.

That is what Canada is all about and that is why ACOA exists. What it does is work in partnerships with universities and colleges to generate more research and development; with banks and other commercial lenders to make sure that entrepreneurs have access to capital to start and grow their businesses; with other federal departments and provinces to promote trade and investment; and with tourism industry associations to market and promote the region as a prime tourism destination.

Now I would like to turn to some of the politically motivated allegations made by the hon. member. First and foremost, the member should know that 100%, that is each and every investment decision made by the agency, is based on due diligence and careful assessment by ACOA officials on a business plan or a project proposal.

As I have pointed out on a number of occasions, since 1996 ACOA issues repayable loans to commercial clients instead of grants. Ninety-eight per cent of ACOA's business loans, including all those below $500,000, are approved, not by the ACOA minister directly, and certainly not by other members of Parliament, as has been suggested, but by the agency's senior executives in the four Atlantic provinces.

The average funding per project provided by ACOA is in the order of $156,000. It is very clear that the ACOA minister does not even see the vast majority of these applications.

Secondly, it is worth noting that the Auditor General of Canada has undertaken two comprehensive audits of the agency, one in 1995 and the other in 2001, and found on both occasions that the management practices at the agency were very good.

Finally, one of the ideas that has been put forward by the member for New Brunswick Southwest is an arm's length board of directors that would have final say in all funding applications.

ACOA does have an advisory board comprised of highly capable and dedicated Atlantic Canadians. They meet regularly and provide valuable advice to the minister on a variety of policy and strategic matters.

Prior to 1993, the board had 18 members who were involved in making recommendations to the minister on all projects over $500,000. In 1994, the government asked Dr. Donald Savoie to review the board's role. On the strength of his findings, not only did we significantly reduce the number of members but we also ended the board's involvement in reviewing and recommending funding approvals. That role now rests with agency officials who live and work in communities across the region.

The reality is this. ACOA is making a difference. It is making a difference in Gander, Truro, Bloomfield, Glace Bay, Bathurst, Antigonish and it is making a difference in St. Stephen.

I urge the hon. member to tone down the rhetoric and work with all Atlantic Canadians to move the region forward.

[Atlantic Canada Opportunities Agency, October 22nd, 2004]

Mr. Speaker, I think it was under Mr. Dingwall's watch that ACOA contributions to business went from grants to repayable loans. That was under Mr. Spector's watch and also under Mr. Dingwall's watch.

I want to thank the member for convincing his caucus to give unanimous support to our strategy on regional and economic development contained in the Speech from the Throne

[Atlantic Canada Opportunities Agency, October 22nd, 2004]

Mr. Speaker, if the member is referring to today's press report about Norman Spector, who was Brian Mulroney's chief of staff, I find it passing strange that Mr. Spector was commenting on political patronage in ACOA when he presided over a whole layer of political appointments, where everything was viewed through the political spectrum.

[Question No. 66, April 26th, 2004]

Mr. Speaker, insofar as the Atlantic Canada Opportunities Agency is concerned, $916,825,163.97 in grants and contributions were approved between April 1, 2001 and March 9, 2004 to assist clients throughout the Atlantic provinces. Over 99% of this amount represents contributions.

Below is a report of grants and contributions to indicate the distribution of funding on a provincial basis as well as assistance provided to pan-Atlantic initiatives. This report illustrates both the total amount of assistance approved and the actual disbursements incurred to date under these grants and contributions.

Also included is a report identifying all Infrastructure Canada funding approved by the agency on a provincial basis between April 1, 2001 and March 9, 2004. The total amount approved is $142,757,422.89.

All Approved Grants and Contributions from April 1, 2001 to March 09, 2004:

All Approved Infrastructure Funding from April 1, 2001 to March 09, 2004:

[Employment Insurance Program, March 25th, 2004]

Mr. Speaker, on several occasions the government has been criticized for politicizing ACOA. The facts do not support this allegation. Indeed, any objective view would indicate that our support at ACOA is focused more heavily on the rural areas than on urban ones, on young people, on women entrepreneurs and on building a brighter future for all four Atlantic provinces.

Critics opposed to ACOA's very existence use flawed data to put forward their complaints. Then the analysis is picked up and repeated. In the past it has been our pattern to simply ignore those errors, but no more. We now believe that it is crucial to point out that criticisms such as these are simply wrong and are a deliberate attempt to distort the facts. ACOA makes its decisions based on good projects brought forward by good people in the business community and in communities across Atlantic Canada.

I know the hon. member supports the principles that led to the “Rising Tide” report because he recently told a New Brunswick paper that the Atlantic Conservative caucus “will develop a policy and that nothing will go forward until we develop that policy”. The hon. member clearly recognizes the role of caucus in developing government policy.

[Employment Insurance Program, March 25th, 2004]

Mr. Speaker, let me begin by congratulating the hon. member for his new placement in the House of Commons. He must have done something politically brilliant to be so positioned, right behind his new leader.

In response to his concerns, our government remains committed to reducing regional disparities and ensuring that all Canadians benefit from a strong economy and the services that such an economy can provide.

The recent Speech from the Throne reasserted this commitment when it stated that the objective of the government is to ensure that every region of the country has the opportunity to move forward socially and economically on a rising tide of progress.

The Prime Minister was even more explicit in his response to the Speech from the Throne. He said:

We must ensure that...the hopes and dreams of Atlantic Canada, as reflected in the report “Rising Tide,” are realized.

Again, this week the Minister of Finance stated in his 2004 budget plan that “Rising Tide” would be our government's guide to building on the progress to date in diversifying the economy of Atlantic Canada.

The mandate of the Atlantic Canada Opportunities Agency is to tackle the socio-economic challenges facing Atlantic Canada. It is within this context that ACOA helps communities and businesses overcome barriers and identifies new opportunities for growth. In other words, advancing the economic development of Atlantic Canada as reflected in the report “Rising Tide” is the policy of the Government of Canada.

When the deputy minister of ACOA speaks about ways to advance the Atlantic economy, as reflected in the report “Rising Tide”, she is doing no more and no less than what I have asked her to do. She is speaking out on government policy. To suggest otherwise is a disservice to a talented deputy minister, one of only two deputy ministers from the Atlantic region. I might add it is also a disservice to the people of Atlantic Canada.

Our government's vision is to strengthen and deepen the transformation that is already taking place in Atlantic Canada.

To talk about “Rising Tide” is to talk about the future of Atlantic Canada and about issues of concern to Atlantic Canadians, such as innovation; entrepreneurship; trade and investment; research and development; and community development.

The deputy minister's speech to a service organization was an opportunity for ACOA to highlight its future vision. That vision is contained in the “Rising Tide” policy document, a document that has been accepted by the Government of Canada and a document that is now being converted from words into action.

ACOA's approach recognizes the great opportunities inherent in the people and the communities of Atlantic Canada. It also recognizes the need for us to work in partnership with various stakeholders both within and outside Atlantic Canada.

My deputy minister is doing just that by bringing people together to build on existing strengths.