Mike Lake

[Business of Supply, June 5th, 2012]

Mr. Speaker, I will be sharing my time with the hon. member for Pitt Meadows—Maple Ridge—Mission.

In 2007 our government released our science and technology strategy. It lays out a framework to guide strategic investments with the goal of fostering Canadian advantage in three areas: entrepreneurial advantage, knowledge advantage and people advantage. This strategy is guided by four core principles: promoting world-class excellence, focusing on priorities, encouraging partnerships and enhancing accountability.

In 2009 we announced Canada's economic action plan in response to the global economic crisis. As part of this plan, and consistent with the S and T strategy objectives, the government created the knowledge infrastructure program. More commonly known as KIP, the $2 billion program was designed to provide significant, short-term economic stimulus in communities across Canada while enhancing the long-term training and research capacity of Canadian universities and colleges.

Including funds leveraged from the provincial and territorial governments, educational institutions and private sector partners, this program resulted in a total investment of more than $5 billion in 190 communities across the country. The work at these facilities created and maintained jobs for engineers, construction workers and many others when they were needed most. But the impact that these investments had on research and training in Canada was truly remarkable and provided clear evidence of this government's commitment to research in Canada.

These projects contributed to the development of Canada's knowledge advantage by enhancing research facilities. KIP has improved the ability of institutions to conduct research in life sciences, information and communications technologies, energy and environment, and other disciplines, as well as in key sectors such as automotive and aerospace.

An example of our support for scientific research is our project at the University of Manitoba for its regenerative medicine renovation and development project. Thanks to funding from KIP and the province, a major renovation and expansion of the school's medical sciences building was completed. The expansion accommodated new labs, offices and study space to support new faculty, graduate students, lab technicians and post-doctoral fellows. The project enhanced the university's ability to educate future doctors and develop one of the top three regenerative medicine programs in Canada.

KIP helped develop Canada's people advantage by expanding training capacity at colleges and universities. In total, KIP projects added 2.2 million square feet to classrooms and training facilities, as well as 2.6 million square feet of laboratory space.

It may interest the hon. member for Burnaby—Douglas to note that support under this category included a $39 million KIP project at the British Columbia Institute of Technology in his riding. Critical renovations to infrastructure at BCIT included state-of-the-art teaching technologies and sustainable building systems, including a micro-electricity grid. Furthermore, the project included completing seismic upgrades and modernizing safety and ventilation systems. The project was also designed to meet the requirements of LEED, leadership in energy and environmental design gold certification.

Also in the member's riding, the government funded a major overhaul of Simon Fraser University's chemistry facility. With $24.4 million in KIP funding, SFU completed a $49.4 million overhaul of the facility that brought the labs up to modern standards. Built to the LEED gold standard, the extensive improvements included a new exterior envelope and roof, seismic bracing, new fume hoods, lab benches, new heating, ventilation and air conditioning systems, and upgraded mechanical, electrical and safety systems.

A total of 380 projects increased the energy efficiency of campuses, reducing greenhouse gas emissions by 175,000 tonnes of CO₂, which is the equivalent of the emissions of 34,000 passenger cars. These projects also provided estimated operational savings of $23 million per year.

One particularly interesting example is the construction of a 120,000 square foot environmental demonstration and training facility at the Nova Scotia Community College. The hon. member who just spoke might be interested in that. It incorporated solar panels, planted rooftops, living walls covered with vegetation, wind turbines, photovoltaic panels and geothermal heating and cooling.

Roughly half of all KIP projects resulted in significant health and safety improvements, addressing areas such as accessibility for persons with disabilities, fire safety, security systems, air quality, water leakage and resistance to earthquakes.

Finally, the program helped develop Canada's entrepreneurial advantage through new and expanded business incubation facilities that supported effective collaboration between academia and the private sector. These facilities are crucial in helping to accelerate the commercialization of the academic research into products in the marketplace, to expose more professors and students to real world applications and to encourage more private sector innovation and growth.

One of the best examples of this type of project is the MiQro Innovation Research Centre at Université de Sherbrooke. The Government of Canada partnered with the province of Quebec on this $218 million project to build a centre of excellence for electronic research and assembly. The new MiQro Innovation Research Centre is expected to become a world leader in assembling the next generation of microchips, thanks to collaboration with key local industry partners, including IBM Canada and Teledyne DALSA, Inc.

In just 31 months, KIP went from concept to conclusion and provided key stimulus to our economy at a critical time. In addition to supporting scientific research infrastructure, the program also clearly demonstrated the government's commitment to sound management of public finances.

The Auditor General's report examined the effectiveness of the implementation of all economic action plan programs, including KIP, and noted, “the total time needed to design, review, and approve programs was reduced from the approximately six months normally required to two months”. The AG's report held up KIP as “an example of speedy implementation”.

The report recognized the effectiveness of KIP's project monitoring and reporting systems, its speedy implementation and its effective collaborations with provinces and territories, as well as colleges and universities. Thanks to those partnerships, KIP stands out as a tremendous example of governments working together to take action during a time of great economic uncertainty.

We are quite pleased that the Auditor General of Canada confirmed that the program was delivered effectively and efficiently. KIP not only made a difference in meeting immediate economic challenges, but it also set the foundation for future prosperity in the knowledge economy. The program was an excellent demonstration of our strong commitment to supporting Canada's science and technology sector. The investments made provided a strong base for research and helped create new facilities that would help attract new students and provide a better educational experience for tomorrow's highly skilled workers.

[Science and Technology, June 4th, 2012]

Mr. Speaker, with respect to the hon. member's question about the National Research Council and the encouragement of innovation in Canada, our government has a proven track record of action that we have continued through budget 2012. In fact, economic action plan 2012 invests an additional $110 million per year to the industrial research assistance program to better support R and D by small and medium-sized companies.

Economic action plan 2012 also proposes $67 million in 2012-13 to support the NRC in refocusing its efforts toward business-driven, industry-relevant applied research that will help Canadian businesses develop innovative products and services.

Together, these investments will help us create a comprehensive and forward looking agenda that will deliver high quality jobs and economic growth. I welcome any ideas the hon. member may have to help us build on our momentum.

[Science and Technology, June 4th, 2012]

Mr. Speaker, our government has shown a strong and long-standing commitment to science and technology since the release of our science and technology strategy in 2007. The strategy recognizes the important link between knowledge and the capacity to innovate in the global economy. More important than simply having a strategy, we are taking action.

Economic action plan 2012 builds on this foundation, creating a comprehensive and forward looking agenda that will deliver high quality jobs, economic growth and sound public finances. It builds on our positive record of achievement to help further unleash the potential of Canadian businesses and entrepreneurs to innovate and thrive in the modern economy to the benefit of all Canadians.

By focusing on the drivers of growth and job creation, innovation, investment, education, skills and communities, we will solidify, strengthen and draw upon the Canadian entrepreneurial spirit as the driving force behind Canada's economy.

Supporting publicly-funded research is important to the government. Our government's spending on science and technology for fiscal year 2011-12 is expected to exceed $11 billion. Sadly, the opposition continues to oppose every investment that our government makes in science and technology. Our government's investments help support world-class Canadian research and help us achieve key social goals, such as improving public health, building a strong and vibrant economy and ensuring a clean and healthy environment for future generations.

However, we recognize that despite high levels of federal support for R and D, Canada continues to lag in business R and D spending, commercialization of new products and services and thus productivity growth. That is why we asked an independent panel, led by Mr. Tom Jenkins, to review federal investments in business R and D and provide advice on optimizing this support.

Through its response to elements of the Jenkins panel report, budget 2012 also announced a new approach to innovation that would more actively support business-led initiatives to better meet private sector needs. In particular, we will transform the National Research Council, or NRC, to refocus its efforts toward business-driven, industry-relevant applied research that will help Canadian businesses develop innovative products and services. The model being developed will be built on proven approaches used by successful global innovation players, carefully adapted to the Canadian reality.

In addition, economic action plan 2012 invests an additional $110 million a year in the industrial research assistance program, or IRAP, to better support R and D by small and medium sized companies.

Through these and other measures, we have taken action because we are committed to creating an environment where Canadian ideas and innovation can be turned into new marketable, competitive and beneficial products that result in jobs, growth and prosperity for all Canadians in the years ahead.

[Business of Supply, May 30th, 2012]

Mr. Speaker, the entire point of this conversation is to talk about the future. In the future, Canada will have a balanced budget before most industrialized countries around the world. We will be in a stronger competitive position. We can already see the momentum that is building. We have, as I have mentioned a couple of times, over 750,000 net new jobs in Canada. That is over 750,000 Canadians who are working today who were not working in July 2009. That is very significant.

Because of that, co-operatives, non-co-op enterprises, workers, companies and families across the country will be better served by the measures we are taking today.

[Business of Supply, May 30th, 2012]

Mr. Speaker, since the hon. member comes from a western riding, I will use the opportunity to talk about some of the investments that have been made through Western Economic Diversification.

The Bison Feeder Co-operative of Saskatchewan, Kronau Community Recreation Co-operative, Lucky Lake Co-operative Community Centre, High Prairie Seed Cleaning Co-op, which I mentioned earlier, Venables Valley Producers Co-op and the Farmers' Markets Association of Manitoba co-op are significant examples of investments that have been made through WED with regard to co-operatives.

As I mentioned in my speech, there will continue to be programs that are available to co-operatives just like they are available to non-co-op enterprises through the Business Development Bank of Canada and through different regional development agencies.

Co-ops across the country can take advantage of those tremendous opportunities but, most important, they will be able to take advantage of one of the strongest economies in the developed world right in Canada.

[Business of Supply, May 30th, 2012]

Mr. Speaker, the starting point would be to refer Canadians to the speech I gave because there are significant examples there.

If we want to talk about the strength of co-operatives in Canada, we need only look at the numbers. Co-operatives have more than $252 billion in assets. They are owned by their members and the communities they serve, and the hon. member spoke to that.

The survival rate of co-ops is higher than that of traditional businesses. A 2008 study in Quebec, for example, found that 62% of new co-ops are still operating after five years, compared with 35% for other businesses.

There are more than 90,000 co-ops in Canada. They exist across the country. There are 18 million members across the country, which is evidence that the co-operative community, the co-operative model, is thriving in Canada under this government.

[Business of Supply, May 30th, 2012]

Mr. Speaker, I referred to 750,000 net new jobs in the Canadian economy since July 2009, 90% of which are full-time jobs and most of them high-paying jobs. Those jobs are not just in urban centres. Those jobs exist across the board in Canada, both in the urban economy and the rural economy.

To the member's point, we can take a look at the funding that is still being provided to co-operatives through, for example, the regional development agencies, and I mentioned that in my speech.

The hon. member is from Atlantic Canada and he might be interested to know about some of the funding through ACOA, for example: $57,000 to the Cooperative des Pecheurs de Baie Ste. Anne to hire experts to prepare and implement a restructuring plan; the Northumberland Co-operative Limited to improve product shelf life and quality; and Tignish Fisheries Co-operative Association, Ltd., for efficiency improvements within processing operations.

I can read off many more examples of how this government has made significant investments in co-operatives. We see the significant success that has developed out of that.

[Business of Supply, May 30th, 2012]

Mr. Speaker, perhaps, as members of industry committee, we will get a chance to work on this issue in the future.

In regard to the specific question, as the member knows the Government of Canada delivered the economic action plan on March 29 to bolster Canada's fundamental strengths and address the important challenges confronting the economy over the long term, including a significant reduction to the deficit.

Over the past year, the government has conducted a comprehensive review of direct program spending by federal departments and agencies and identified a number of opportunities to enhance the efficiency and effectiveness of government operations, programs and services for Canadians.

When we look at the government's record, 750,000 net new jobs have been created in the Canadian economy since July 2009, a record that is the envy of the world.

As a government, we want to get our budget balanced within the short term so we can ensure the strength of the Canadian economy in the long term.

[Business of Supply, May 30th, 2012]

Mr. Speaker, it is a pleasure to rise today to take this opportunity to highlight the importance of co-operatives to the Canadian economy.

There are around 9,000 co-ops in Canada, with 18 million members and assets of over $252 billion. They make important contributions to the economy across the country and employ approximately 150,000 people.

Our government is squarely focused on the economy. Our government has a plan to create jobs and growth and secure our long-term prosperity. This plan remains our top priority.

In the last six years, we have worked to strengthen Canada's business climate and make it one of the most attractive in the world. We have cut taxes. We have engaged the world to promote freer trade. We have welcomed foreign investors. We have modernized our laws. We have made timely and necessary investments in Canadian industry and infrastructure.

These efforts are working, and they have not gone unnoticed. Both the International Monetary Fund and the Organisation for Economic Co-operation and Development forecast that Canada will be among the fastest-growing economies in the G7 this year and next. Forbes magazine has identified Canada as the number one destination to do business in the world.

This strong investment climate will benefit the co-operative sector and all Canadians, and it is particularly vital in order to help Canadians successfully navigate the uneven global economic recovery.

Looking forward, we are working to ensure that Canadians remain well positioned to take advantage of global opportunities and to build from a position of relative strength. We have a renowned and robust banking sector. We have been actively engaging international partners to open new markets, and our economy continues to add jobs and inspire growth.

Co-operatives have an important role to play in our economy, generating jobs and growth in Canada and around the world. That is why the United Nations proclaimed 2012 as the International Year of Cooperatives. The International Year of Cooperatives is a unique opportunity for all co-operatives to promote their achievements and to raise awareness of the co-operative model.

Canadians have been trailblazers in this field. The first credit union in North America, the Caisse populaire de Lévis in Quebec, was founded in 1900 by Alphonse Desjardins. It has expanded substantially over the past century to become the largest co-operative financial group in Canada.

We are taking steps to facilitate continued growth. Building upon our budget 2010 commitment to allow credit unions to incorporate as federal entities under the Bank Act and operate across provinces under one regulatory umbrella, our government is working to bring these provisions into force once regulations are finalized.

Our government fully recognizes the importance of co-operatives, as they generate sustainable jobs and reinforce our economy. We are actively working to contribute to their growth.

I would now like to take a few minutes to talk about how the co-operative model works and the unique role co-operatives play in the Canadian economy.

A co-operative is an enterprise owned by members who use its services. Generally established by a group of people who share a common need, co-operatives allow those people to pool their resources toward a common goal.

Today we find co-operatives across all sectors of the Canadian economy, providing financial services, health care and housing services, to name just a few, in both urban and rural communities.

The Prime Minister put it aptly during National Co-op Week last year, when he said:

Co-operatives have helped many people and organizations find solutions to social and economic challenges in their communities...

Indeed, co-operatives are an important part of the Canadian economy. Canadian co-operatives have more than 18 million members. They directly employ approximately 150,000 Canadians and can be found in communities across the country.

Non-financial co-operatives alone do almost $36 billion a year in business. All Canadian co-operatives are estimated to hold more than $252 billion in assets. These assets are owned by the members and communities the co-ops serve.

Lastly, at least seven co-ops are listed in Canada's top 500 companies.

Guided by the principle that members should have democratic control of the enterprise, the co-operative model ensures that each member is an equal decision-maker in the enterprise by using a one member, one vote approach.

This is a fundamental difference between co-operatives and investor-owned businesses, where a shareholder is entitled to a number of votes equivalent to the number and type of shares he or she owns in the company.

Another key difference is in the sharing of the surpluses of the enterprise. Under the co-operative model, the surpluses earned by the co-operative may be paid into the reserve or to the co-op's members in the form of patronage returns proportional to the business that each member does with the co-operative. In contrast, investor-owned businesses may reinvest in the company or distribute profits in the form of dividends according to the rights for each class of shares.

In Canada, co-operatives can be formed under either federal, provincial or territorial legislation. Co-operatives have been operating for over 100 years under provincial authority. In 1970, the federal government followed suit with the Canada Co-operative Associations Act. That legislation was updated in 1998 with the enactment of the Canada Cooperatives Act, which now governs federally incorporated co-ops.

This act recognizes the importance of co-operatives to the economic and social fabric of Canada. Significantly, it was originally drafted by the stakeholders themselves, the two main national organizations that represent co-operatives: the Canadian Co-operative Association and Le Conseil canadien de la coopération et de la mutualité.

When the Canada Cooperatives Act was introduced in the House of Commons, it received all-party support. The act received royal assent in 1998 and came into force on December 31, 1999.

I will share a little about how the act works and its key features.

Co-ops that do business in more than one province can incorporate under the federal act. Interestingly, of the over 9,000 co-operatives in Canada, only 76 are federally incorporated.

One of the important features of the 1998 update to the act is that it allowed co-operatives to incorporate as a right. It eliminated the previously existing ministerial discretion. It simplified the complex rules that used to govern the incorporation of co-operatives. Now the act gives co-operatives the capacity, rights, powers and privileges of an actual person, similar to what business corporations have. In short, the 1998 act put co-operatives on a level playing field with other marketplace participants while still protecting their distinctiveness.

As with businesses incorporated under the Canada Business Corporations Act, co-operatives may incorporate, pass bylaws, elect directors and engage in economic and social activity, depending on their individual mandates. They are businesses just like other types of corporations. Indeed, many co-operatives are extremely successful businesses, having stronger returns on investment than their non-co-op counterparts.

What makes a co-operative different is how decisions are made. In investor-owned corporations, directors are elected by the shareholders. These directors oversee and manage the day-to-day operations of the corporation. The directors make and pass bylaws that drive the corporation's economic success.

Under the co-operative model, the enterprise must be organized, operated and administered on a co-operative basis. Co-ops elect directors just as other companies do, but these directors do not make bylaws, the members do. The members elect the directors and the members control the co-op.

Co-ops, just like other companies, need financing. Co-ops have several options for raising capital. The traditional method of financing co-ops is through the sale of membership shares. The 1998 act provided co-ops with a new financing opportunity. They are now allowed to issue investment shares to the public, just like other corporations, to raise capital. However, these shares do not carry the same voting rights as membership shares in recognition of the principle that members are equal decision-makers in the enterprise.

Of course, this is not the only source of financing available to co-operatives. The government provides financial support for co-ops through a number of agencies, such as the Business Development Bank of Canada, FedNor, Western Economic Diversification Canada and Canada Economic Development for Quebec Regions, among many others.

Looking out internationally, the government has committed almost $20 million through the Canadian International Development Agency to the Canadian Co-operative Association's program called “sustainable livelihoods through co-operatives”, which aims to promote the co-operative model to support economic growth and improved food security in communities in a number of countries, including Ghana, Uganda, Malawi, the Philippines and Vietnam.

Here at home, we have invested in co-ops across the country, including over $2 million in the High Prairie Seed Cleaning Co-op in Alberta and $450,000 in the Farmers' Markets Association of Manitoba.

In Quebec, we have contributed over $100,000 to create a new co-op lead interpretation centre of the history of economic and social development of the Gatineau River.

We are supporting the Akulivik Cooperative Association with over $200,000 for the construction of a hotel in Akulivik, which will replace the only hotel in the community and will provide more modern accommodation for business travellers and other visitors to the area.

With these investments, we have recognized that cooperatives can and do operate successfully under the act, and have for over a decade. They contribute to the Canadian economy in a unique way. They are innovative and entrepreneurial. Co-operatives create jobs and fuel economic growth, and this government supports them fully.

The government has been monitoring the Canada Cooperatives Act since its inception. Amendments have been made to it. For example, in 2001, the act was amended to permit electronic communications between members and the co-operative. These actions kept it aligned with our other marketplace framework laws, such as the Canada Business Corporations Act and the Canada Not-for-profit Corporations Act.

However, 14 years is a long time. We need to ensure that our regulatory environment promotes competition, investment and economic growth. Co-operatives are an important part of that growth.

Before I conclude, I have the following amendment to the motion to ensure that this issue is studied in the appropriate committee: That the motion be amended by: (a) replacing the words “a special committee be appointed to” with “the Standing Committee on Industry, Science and Technology”; and (b) deleting in section (e) the following words “and that the committee consist of twelve members which shall include seven members from the government party, four members from the official opposition and one member from the Liberal Party, provided that the chair is from the government party; that in addition to the chair, there be one vice-chair from each of the opposition parties; that the committee have all of the powers of a standing committee as provided in the Standing Orders, as well as the power to travel, accompanied by the necessary staff, inside and outside of Canada, subject to the usual authorization from the House; that the members to serve on the said committee be appointed by the whip of each party depositing with the Clerk of the House a list of his or her party's members of the committee no later than June 8, 2012; that the quorum of the special committee be seven members for any proceedings, provided that at least a member of the opposition and of the government party be present; that membership substitutions be permitted to be made from time to time, if required, in a manner provided for in Standing Order 114(2).

[Telecommunications, May 28th, 2012]

Mr. Speaker, my hon. friend talked about stakeholder reaction and talked about his own party's position on this. Let us listen to what they had to say.

A new player, Mobilicity, called the decision “a real victory for Canadian consumers”. Meanwhile, an incumbent, Telus, noted that the new rules “will allow all competitors to have fair and reasonable access to the critical 700-megahertz spectrum in the upcoming auction”. The NDP's former industry critic said:

...we heard the intention of the government to cover 90 percent of the Canadian territory within five years. We like the idea. I come from a rural riding. There are major problems of coverage in my riding so this is something that is very dear to me....

Incumbents like the decision, new entrants like the decision and even the NDP can agree with parts of the decision. I would say that we got this one right.