Bill C-9 (Historical)

Economic Development Agency of Canada for the Regions of Quebec Act

An Act to establish the Economic Development Agency of Canada for the Regions of Quebec

This enactment establishes the Economic Development Agency of Canada for the Regions of Quebec and specifies the powers, duties and functions of the responsible Minister and the Agency.

Economic Development Agency of Canada for the Regions of Quebec Act

[Yvon Lévesque, Bloc, Nunavik—Eeyou, QC]

Mr. Speaker, I was listening to my hon. colleague opposite just now. I wonder if the Liberal Party of Canada is listening to the same radio stations as the other members of the House. She should have listened to the mayor who looked for Canada Economic Development programs and who was unable to find any. He would have liked some aid after a report on substandard housing was released. He was unable to obtain any because no such program was available.

I also want to say that, according to Canada Economic Development's 2003-04 report, the agency managed to spend only two-thirds of its budget because it did not have the programs it needed to invest in other areas despite the needs identified by its offices.

Once again, the member opposite could have left her own office and visited the agencies. No doubt, she would have discovered this.

All things considered, it is quite simply—I am repeating after my colleagues—a new department that will serve to guide, promote and coordinate the policies and programs of the Government of Canada in relation to the development and diversification of the economy of the regions of Quebec.

It obtained a few more powers than the board of Canada Economic Development, for example, whose funding and mission is provided by the Department of Industry.

Its additional powers seek to interfere in Quebec's areas of jurisdiction and, consequently, the minister shall, in cooperation with other concerned ministers, boards and agencies of the Government of Canada, formulate and implement policies, plans and integrated federal approaches. This is very important.

However, the government has been careful not to ensure the approval of the different provincial departments or agencies in areas under their jurisdiction.

So the minister will be responsible for the impact, not the needs of federal programs on the regions. Quebec does not want an integrated federal strategy, but rather improved programming able to meet the needs of Quebec, while respecting its areas of jurisdiction.

I repeat: the Constitution makes Quebec responsible for most matters related to regional development, and an integrated strategy must touch on a wide range of issues such as natural resources, education and training, municipal affairs, land use and infrastructure. Ottawa does not have jurisdiction over such matters, and it is no expert in them either.

In this government, ministers are appointed first, and then portfolios are created for them. It is certainly the case for the Minister of the Economic Development Agency of Canada for the Regions of Quebec, as it was for the Minister of Foreign Affairs and International Trade, a department that was recently split by Parliament. The same government—with the pleading eyes and trembling hand of its leader who, even if he has no credibility, is trying to have the public believe that he is seeking the cooperation of the opposition parties—will not respect the decisions, motions or recommendations made by this Parliament. As a result, it is maintaining a department that was voted down by a majority vote and that has not yet been recognized by this Parliament. If that is what the Prime Minister meant when he promised to correct the democratic deficit, the opposition parties should take the government's measure and defeat once and for all a measure that only serves the interest of the governing party.

As far back as I can remember without going all the way back to Duplessis, Quebec has always demanded to be in charge of its regional development. Just think back to 1965, when Jean Lesage stated the following at a federal-provincial conference:

—Quebec will consider it normal, from now on, that any federal action with respect to the regions of Quebec be taken through Quebec's administrative structures, once Quebec has agreed with the objectives and the means to achieve them. Otherwise, there is a risk that policies based on divergent premises cancel each other out.

After 43 years of debate and continuous improvement in Quebec's ability to manage its own development, the question remains unresolved.

Members will recall that, between 1973 and 1994, there was a framework agreement in place between Quebec and Ottawa. The two governments were obliged to agree, otherwise Ottawa could not have intervened, and most of the federal money went to Quebec structures.

In its dictatorial approach, this government, more centralizing than that of Pierre Elliott Trudeau, circumvented the established agreements, and confrontations could only become more nasty—all for federal Liberal visibility and an outstanding battle with an immigrant to Quebec prepared to betray his adopted fellow citizens, who, for his own purposes and desire for power, got himself elected leader of this government.

Make no mistake: this federation will not be destroyed by a vote for or against the budget, or a vote of confidence, or a vote for or against Bill C-9, or Quebec's sovereignty. The Conservatives, drawn from the Conservative Party or the Alliance, and the NDP all know that. What will kill this federation are the piecemeal negotiations and the unfair competition this government has created among the provinces, to their detriment.

With the insistence by all parties in the House that this bill be rammed down the throats of Quebeckers, we in the Bloc have tried to have certain changes introduced, which would have permitted minimal respect for the areas of Quebec's jurisdiction and the needs and aspirations of Quebeckers in terms of their development and territorial integrity.

We called for the removal of all references to “integrated federal approaches”. It was never recognized in the past in any form whatsoever. It is not recognized today and will not be in the future either. Any elected representative in a country agreeing to such a formulation would be considered a traitor to his country, and all Quebec members doing so here should be considered so as well.

They need only refer to the words of Jean Lesage in 1965 or recall the agreements in existence between 1973 and 1994 to realize that the government has never done a thing for Quebec and continues to seek out confrontation through offensive legislation and action, like the sponsorships and the law—

[Françoise Boivin, Liberal, Gatineau, QC]

Mr. Speaker, I find it quite simplistic to say that it is just one more limousine and one more senior minister. As the proud member for Gatineau, who may represent Quebec and its interests differently than the members of the Bloc Québécois, I focus on the important part. Indeed, there will be a new senior minister responsible for regional economic development at the cabinet table. I am flabbergasted to hear such a question from a member of the Bloc Québécois.

I will repeat what I have already said, since he opens wide the door every time. His own constituents are asking him why he will not back Bill C-9. This comes not from me but from the mayors of his region. There is a fear, as we have already seen with respect to the bill amending the Official Languages Act, as we see with everything. Every time something good could be done for Canada, you can bet the Bloc Québécois will not support it. I have no problem with that. If you have any other questions, bring them on. We will gain a new senior minister who will not need another department's consent to determine what will be done in terms of regional economic development. Shame on the Bloc Québécois for not backing this bill.

[Françoise Boivin, Liberal, Gatineau, QC]

Mr. Speaker, as member for Gatineau, it is a pleasure for me to take part in this debate at third reading on Bill C-9, to establish the Economic Development Agency of Canada for the Regions of Quebec.

I would have liked to see our friends from the Bloc come back from our recess week with new feelings towards Bill C-9. If they had listened to Quebeckers, they would have realized that that bill is extremely important and goes far beyond what has been said this morning by some members from their party.

Canada Economic Development, under the various names it has had over the years, has been working for about 40 years to support the entrepreneurship spirit of women and men, young and not so young, to help them contribute to regional economic development. Bill C-9, once adopted, will give Canada Economic Development the flexibility and tools it needs to stimulate development and to apply an integrated federal strategy.

This is more than what my colleague for Argenteuil—Papineau—Mirabel implied when he said that it was a simple structural change. The bill will make the agency independent from the department of industry and commerce.

Furthermore, the agency will be in a better position to represent the views and interests of Quebec regions in the elaboration of different national policies and programs. The agency will continue, as it has always done, to support promising ideas, determined entrepreneurs and innovative businesses. Option Femme Emploi, in my riding, and Produits Chanteclerc and Styro Rail Inc. are only a few good examples of these. The agency will also continue to help entrepreneurs to adapt to new market conditions created by globalization of trade.

Indeed, over the years, the agency has endeavoured to provide small and medium-sized businesses, the true engines of economic growth in Quebec, with immensely useful strategic information on the expertise and the resources of the government of Canada which can help them continue their growth.

The agency's interventions produce results of which our fellow citizens can be proud and which, even more importantly, meet their needs and their expectations. Thus, the agency has pledged over a billion dollars in financial support for the implementation of some 2,000 projects which were under way in 2003-04. If one adds the investments of other backers to those of the agency in those projects, their total value reaches close to $4 billion across Quebec's regions. This leverage amounts to $4 for every dollar invested.

Within the context of its various programs, Canada Economic Development has contributed to the pre-startup and startup of nearly 2,800 businesses across Quebec. A study undertaken by the agency reveals that more than half of the respondent businesses, that is 58.6%, have stated that their turnover increased following the projet for which they received financial assistance from the agency. Moreover, according to data compiled by the agency for 2003-04, close to three-quarters of those clients, 73.9%, have pointed out that they would not have been able to bring their projects to fruition without its financial support.

Community representatives who share this view include Ms. Manon Laporte, president and CEO of Enviro-Accès Inc., who stated before members of the Standing Committee on Industry, Natural Resources, Science and Technology on February 16—and I was very pleased to be there—how support from Canada Economic Development had been important in setting up eight strategic projects. Those initiatives essentially aimed to raise awareness and support the implementation of pollution prevention practices and an environmental management system for production processes with a view to profitability and increased competitiveness.

Ms. Françoise Bertrand, president and CEO of the Fédération des chambres de commerce du Québec, in an article in La Presse , highlighted the importance of the economic benefits that publicly-funded assistance can bring. She said that these benefits go far beyond the assistance received initially.

On another note, an external audit of Canada Economic Development's Regional Strategic Initiatives program shows that the agency's contributions have a considerable leverage effect on the other active financial partners in regional development.

The same audit reveals that the Regional Strategic Initiatives program, compared to other regional development programs in Europe, is a pioneer in targeting the region instead of the business and in supporting the development of innovative capabilities.

As part of an evaluation related to the agency's activities in the field of innovation, 80% of participants said that the assistance provided by Canada Economic Development in the form of repayable contributions helped them meet the challenges of innovation and productivity-related projects.

In that sense, Mr. Yves Goudreau, director of business development for Premier Tech, an important eastern Quebec company, speaking to the Standing Committee on Industry, Natural Resources, Science and Technology in February:

During the past year, I was able to note ... as a businessman, the full importance of CED in the development and the diversification of the Quebec economic regions. ... Without these amounts, we would have, without any doubt, directed our product development to the partial improvement of products. In the middle term, this delay would have caused the withdrawal of our products from the market, because of the constant optimization of the products of international competitors—

Also, the agency's actions are sustainable in nature. In fact, among enterprises having received assistance from the agency to carry out innovation and R and D activities, 85% continued to perform this type of activity. In addition, 87% of enterprises stated that these activities contributed to increasing their productivity, and 83% pointed to enhancement of their competitiveness.

A long term impact on employment is also observed. More than half the enterprises, or 57%, reported an increase in the number of employees following a project completed with the agency's support.

Finally, to show just how relevant the agency's involvement is, for the past three years, its clientele’s satisfaction levels have been rising consistently. In 2003-04, for example, 94% of the agency's clients stated that they were satisfied with the quality of services in general.

In this respect, I would like to quote Raymond Giguère, the director general of the Cégep de Rimouski. On February 16 he told the Standing Committee on Industry, Natural Resources, Science and Technology that Canada Economic Development was an ideal partner for our regions, working together with all concerned and making its extensive economic development expertise available to the regions.

Mr. Giguère added that, in his view, Canada Economic Development was a key player in the economic development and diversification of Quebec's regions, through its financial and technical support. He went on to say:

Canada Economic Development's capacity to technically and financially support community-based projects focused on domestic and global positioning contributed to this success.

He also said that it would be necessary not only to maintain and develop this capacity to be guided by long term planning in conjunction with the regional community, but also to maintain the capacity to foster a collaborative approach with stakeholders from other orders of government and other federal departments.

Canadians expect, and rightly so, that their governments produce results that reflect their expectations and needs. The ongoing evaluation of our programs and procedures ensures that our activities are in line with the priorities we have set for ourselves and that we will achieve the desired results.

Bill C-9 states that the minister responsible for Canada Economic Development shall cause a comprehensive report providing an evaluation of all activities in which the agency was involved to be laid before each House of Parliament every five years.

In closing, I would like to encourage all members of the House to support Bill C-9 so that Canada Economic Development can have the tools and the flexibility that it needs to continue its effort with the Quebec businesses and communities. I am convinced that Canada Economic Development will do everything in its power to meet the aspirations of the people of all regions of Quebec.

The work done in committee helped to bring in the adjustments that should have allayed the fears or the red herring being used by the Bloc members who keep saying that we want to interfere in areas of Quebec's jurisdiction. This will be done in all respect for Quebec's jurisdictions. If Canada Economic Development was able to work for more than 40 years without interfering in provincial jurisdictions, I think that by resorting to fearmongering, the Bloc is only showing that it does not want this to work.

I know that the regions need Bill C-9. I hope that the other parties will support us as they have done up to now, because it is extremely important for Quebec. I will be very proud to go around my province to say that we have worked very hard to pass Bill C-9.

[Réal Lapierre, Bloc, Lévis—Bellechasse, QC]

Mr. Speaker, Bill C-9 purports to better the lives of Canadians and Quebeckers. It is at the very least a big claim as far as Quebec and its regions are concerned.

In spite of all that can be said, no matter how we look at it, all my colleagues without exception will tell you that there is nothing new in Bill C-9 that can help to improve the standard of living of Quebeckers or make things easier for the regional economic development stakeholders.

We all know very well that the various mandates given to Canada Economic Development, whether for programs or budgets, are unchanged. Bill C-9 sets out to establish a federal department to run Quebec's regional development. In practical terms, it is nothing more than a new duplication against the prerogatives of the Quebec government. It is an unacceptable incursion into an exclusively provincial jurisdiction.

We all agree that the regions need a well orchestrated strategy. This being said, Quebec is better equipped to take action and to implement an integrated development strategy because its knowledge of its regions is far superior.

The federal government is using regional economic development to interfere a little more in Quebec's areas of jurisdiction. As proof, Bill C-9 states that the minister himself shall have authority over policies and programs in relation to the development and diversification of the economy of the regions.

The minister's mandate includes all federal activities in the regions in order to channel projects, in cooperation with the other relevant federal departments or agencies, toward an integrated federal strategy. There is no mention of jurisdictions belonging to Quebec, let alone the regions.

The government refuses to let the CFDCs focus on regional needs instead of federal priorities. Come on. Does it seriously believe that this makes sense? If anything, the experts in regional needs and regional economic engines are authorities in such a policy and best placed to oversee its implementation.

I refuse to think that anyone here now believes for one second that Atlantic fishers have the same needs as prairie wheat farmers. Responsibility for development must be regional. In other words, this is not aid, it is abject poverty.

To top things off, this affects everything: natural resources, education, training, municipal affairs and infrastructure. In short, there is a range of possibilities but there is not always an effective focus. The way this policy is worded proves that this is yet another shameless attempt to interfere in areas of jurisdiction belonging to Quebec and the provinces. Under the Constitution, Quebec is responsible for matters relating to regional development.

So, why the desperate attempt to establish another administrative level? The money that such duplication requires does not grow as fast as leaves on trees in the spring. All these funds could be invested much more wisely by giving Quebec its rightful share.

The problem with the federal government's plan is that neither level of government is able to allocate all the resources needed to adequately develop the regions. Because of this, we see an anarchic situation that leads to astronomical unemployment rates and mounting problems.

It would be far more advantageous to provide more support to consolidating the agricultural sector in my riding. The mad cow crisis has had a more than considerable effect on dairy producers. Beef producers, although fewer in number than in western Canada, have suffered the same ill effects, while having played no part whatsoever, directly or indirectly, in the genesis of the problem. As we know, for some months now exports to the U.S. have been limited. As well, there are insufficient measures for facilitating the transfer of family assets to the next generation. Quebec, along with the regions, would manage to solve this problem if it had the financial means to invest in this area.

In our area and elsewhere as well, the textile industry has unfortunately felt the impacts of globalization. Once again, the federal government's funding measures have been far from having the desired outcomes, and why so? Because they do not follow the natural path of efficient implementation, which would of necessity involve the Government of Quebec and the regional authorities.

Then, on another topic, I would just point out for those who might not be aware of it that R&D efforts are insufficient, given the diversity of the industries in my riding. If there were better orchestration between the Government of Quebec and the regional authorities, results might well be better. Again, and still, the impediment is insufficient federal funding.

I do not see how adding a department, as proposed here, could make any significant change. It is a well known fact—something that cannot be repeated often enough—that the regional stakeholders are in the best position to identify needs. Would it not therefore be more convenient and efficient for the central government to show an interest in regional development within jurisdictional limits?

The Bloc Québécois has made, and continues to make, certain proposals. We are faulted quite regularly for not making any concrete proposals for regional development.

First of all, the Bloc Québécois suggests leaving Quebec in charge of its regional development. It already has a policy many governments would be glad to have. What it needs is the financial means to properly support emerging initiatives.

Second, we propose respect for local joint planning groups and the adaptation of federal programs to regional circumstances in Quebec. All local and regional authorities, for example, should be involved in reorienting development in a field of economic activity, when existing sectors have achieved their potential.

This is the case in agriculture and forestry where I come from. This is exactly what is happening in the southern part of my riding: we want to integrate the recreation and tourism sector to complement agriculture and forestry activities. The neighbouring ridings to the east and west would like to do the same thing. Clearly this is the road to the future. It is a brilliant idea the government should promote. The money the federal government wants to set aside for Bill C-9 would be used much more wisely in a project like this one.

Let me explain. Recently, there has been a veritable flood of awards to operators of tourism businesses adopting the new philosophy of the southern part of the region. A number of businesses in my riding, from various sectors of the economy, are moving toward adopting it and thus filling a gap never previously filled.

Unfortunately, a shortfall in available funds makes this move impossible. There is not enough money for this new regional reality, which is not unique to my riding. So here is another area in which the government could better support the regions by giving the money to the Government of Quebec.

The joint planning of this new orientation—and I am referring more specifically to my riding—is in keeping with the wishes of the RCMs, the CLDs, the regional conference of elected officials and the chambers of commerce. Who could oppose such an undertaking? Those with the most relevant knowledge are the most likely to promote the welfare of the people in my region.

Why insist on adding another level, which could well destroy the consensus? The federal level would do better to provide financial or technical support, but respecting Quebec's jurisdiction. For purposes of objectivity and efficiency, let us allow the government most able to evaluate and understand the regional problems, namely the Government of Quebec, to do what it does well already. It is up to the federal government to adapt to the regions. So, the best approach is no doubt to conclude an agreement with the Government of Quebec providing for opting out with full compensation.

Let us now move on to another area. The old infrastructure program was much more respectful of regional authorities, in that the Quebec government selected the projects. The start-up of numerous businesses in the private sector and in the social economy relies on better linkages between the federal and provincial bodies working for regional development. In my riding, the economic spinoffs of this social economy are quite significant. However, the Government of Quebec does not receive enough money and is forced to maintain restrictive subsidy standards, which is precisely why the sector is unable to reach its full potential. It is such a shame.

In the social sector, as we know, the needs are great. This is another sector that has become indispensable, but does not receive the full financial consideration it deserves. At the same time, the aging population phenomenon is exacerbating the problem. The needs in housing and services are not being met. Unfortunately, Quebec is still suffering the effects of underfunding. It is a victim of the fiscal imbalance. When will everyone realize it?

The Bloc Québécois also suggests decentralizing the federal public service. Doing so would create new jobs in the regions. Would that not be a good idea? It is a constructive suggestion that would not cost an arm and a leg. The quality of services would improve. The regional economy would improve as a result of many well-paid jobs. We must put a stop to the exodus of federal employees from the regions to the benefit of large urban centres and the Ottawa area. Saguenay, Gaspé and the North Shore all deserve to have suitable and professional services locally. We have to stop cutting back on services in the regions. The people there need to eat too. We do not need a new agency for that.

Just consider the capital costs. Does it make sense for the Government of Quebec to invest five times more than the federal government does? There is indeed a $224 million difference in investment between the federal government and the Quebec government. Is that acceptable in the Outaouais?

When it comes to air transport, the federal government has placed a new burden on the regions, which must now finance assets that are beyond their means on their own. Is that acceptable? The same is true with regional sea ports, which are unfortunately in a dangerous state of disrepair. How will potential buyers be able to fix them without adequate budgets?

Does this whole situation not justify taking a hard look at how federal funds could be better used?

And what about shipyards? It is totally unacceptable that the only shipyard between the St. Lawrence estuary and the very end of the Great Lakes that can receive big ships is constantly uncertain about its future.

This is a blatant demonstration of the federal government's inefficiency in dealing with regional development issues. In this specific case, it is not just a regional issue. It is a matter of national and international safety.

An increasing number of cruise ships are coming to Quebec. Will the Queen Mary end up being stranded between Île d'Orléans and Lévis some day? There is no question that a lack of a true Canadian shipbuilding policy has largely contributed to this bad and dangerous situation.

How else explain, for example, the fact that the Canadian fleet is in such bad shape, that it requires a great deal of repairs and needs to be renewed, and that our shipyards cannot at least meet our own needs? In the meantime, Asian shipyards are working non stop and cannot meet the demand. This is yet another reason for a better structuring of the various authorities, but we do not find it in Bill C-9.

If the government spent as much energy to save a proven industry such as MIL Davie, which is renowned internationally and which is likely to return to a high level of performance, the results would be far better than adding a department that will only make an already inadequate process even more burdensome.

If we look at what is going on elsewhere in Canada, we can see that the Government of Canada is investing three times more in the maritime provinces than it does in Quebec. The prairie provinces, where the underfunding was comparable to that of Quebec, have already received a 32% increase in regional support development, compared to only 7% for Quebec. The time has come to stop this sprinkling. It is clear that Bill C-9 merely seeks to provide greater visibility, without incorporating the tools that would guarantee the future. We know the value of these visibility programs. We are fed up with them. We no longer want such programs.

On a different note, regional needs should be the highest priority of the employment insurance program. It is time the government dealt with this issue clearly, without being influenced by political considerations that are often questionable, and with the same generosity as that displayed by the workers who contributed to the employment insurance fund.

Young people, vulnerable and seasonal workers deserve better than the present measures. Federal money would be better spent if the federal government treatedthese workers justly and equitably, at last. It is not the recent, weak measures added by the minister that will solve the problem and improve the situation.

The federal government still denies the fiscal imbalance and hands out public funds to provinces in a piecemeal manner. Are we not justified in considering that as implicit recognition of the fiscal imbalance? I think we are. Quebecers also think we are. If the federal government devoted as much energy to encouraging regional development in Quebec by transferring money to Quebec as it does to denying the fiscal imbalance, we could say that it cared about contributing to our regional development and the well-being of the citizens of Quebec.

The billions of dollars that were invested these last few weeks in complete anarchy way show, without a doubt, that this government is incapable of favouring regional development, and incapable also of respecting the fields of jurisdiction of Quebec and the provinces, which are a fundamental part of Canada's constitution.

The Bloc Quebecois has always proposed a balanced approach for the use of the money that the federal government is sadly allocating to the creation of a regional development department for Quebec.

Why continue to create an infinite number of functions and a maze of wasteful spending? Consequently, I ask that the funds be directly transferred to Quebec, which can better evaluate the needs of its regions and implement programs that will contribute to their economic and social development.

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Mr. Speaker, everybody knows that there are 14 regional CED offices which contribute to the development of their respective regions. Many of these successes have been pointed out by local stakeholders. One must rely on those who work in the communities. One must also rely on business leaders who are creating employment and developing the Quebec of today and tomorrow. Comments are very laudatory concerning what CED does at the regional level.

I can tell you, for instance, that what CED is doing in Montreal's east end is exceedingly appreciated, both by the private sector and by elected officials. I feel that this Bill C-9 is good news. It may not please the Bloc Québécois because, once again, it would rather do without this presence of Canada in the various regions of Quebec, but the Government of Canada has a role to play and it will continue to play it.

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Mr. Speaker, I am pleased to address the hon. members of this House at third reading stage of Bill C-9, an act to establish the Economic Development Agency of Canada for the Regions of Quebec.

This legislation has prompted excellent debate within this House and in committee on the major issues surrounding regional economic development. This is a very important time for all those interested in the economic development of the regions of Quebec.

Bill C-9 sets the parameters by which the Government of Canada intends to contribute to the economic development of Quebec. Consideration of this bill began last fall.

Collectively, we face many challenges. We are reminded of this each and every day in the current economic situation, whether one of our companies finds success abroad or a plant has to close its doors for lack of viable markets for its products.

Businesses are at the heart of economic development for the regions of Quebec and lead the economic development of each region. For us, giving support to business translates into more dynamic and more competitive companies that can create more wealth and jobs in the regions.

Moreover, the bulk of new jobs created in Quebec were in businesses with fewer than 100 employees.

Today, we have multiple possibilities for creating wealth, and also for increasing productivity, inventiveness and flexibility. A number of businesses and sectors of activity in Quebec are still too vulnerable to the ups and downs in the world economy. It is therefore the duty of a responsible government such as ours to support these businesses and to orient them so they may adapt or transform their approaches, their manufacturing procedures and their products.

I need only refer to the difficulties in our textile sector to convince you of the importance that all of us, whether executives and employees of businesses, community volunteers, stakeholders in regional development or government, must assign to innovation and improving the productivity of our businesses.

We are not, moreover, the only ones to hold this view. In its study, “OECD Territorial Reviews: Canada”, the OECD concluded that “for the Quebec economy to move to a higher trajectory, the productivity of small businesses must be improved, management performance upgraded, and efficient technologies acquired.”

Through its IDEA-SME, program, Canada directly supports businesses involved in targeted projects, including export and innovation, thereby moving into the future.

I would like to take a moment to quote the words of Mr. Yves Goudreau, Director of Business Development at Premier Tech Ltée, a firm located in the Lower Saint Lawrence area. When he appeared before the Standing Committee on Industry, Natural Resources, Science and Technology he said, and I shall quote:

The loans granted by CED for the development of innovative technologies have allowed Premier Tech to create one of the most important private regional research and development centres....

Without these amounts, we would have, without any doubt, directed our product development to the partial improvement of products. In the middle term, this delay would have caused the withdrawal of our products from the market, because of the constant optimization of the products of international competitors, who are continuously working on the development of new, innovative concepts.

Since 1997, CED loans to Premier Tech have enabled more than 400 direct jobs to be created, and close to 200 innovative products developed. As a result, the company's sales have grown from $50 million to $300 million.

This is very eloquent testimony to the importance of the assistance provided by Canada Economic Development and of its clear impact on the development of a business.

In general, the businesses that have benefited from CED funding have significantly increased their sales and staff. More than three-quarters of them would have been unable to implement their projects had it not been for the agency's assistance, while others would not have been able to see their projects through on the same scale or to complete them within the same timeframe. Moreover, the agency's average cost recovery is 75% of the repayable contributions. That is one of the best in the government.

By devoting itself to the start-up and development of small businesses, Canada Economic Development helps create and maintain jobs, besides having an impact on the restructuring of local economies. That is why, through its support of businesses in Quebec, it is also promoting the economic diversification of communities and helping to ensure the economic stability and vitality of the various regions of Quebec.

These figures speak for themselves and tell us loud and clear that this government is right to rely on assistance provided to businesses in all the regions of Quebec.

Take for example Sixpro inc., of Sainte-Clotilde-de-Horton, in the central Quebec region. In January 2005, a repayable contribution of nearly $400,000 was made to this business to implement a project designed to improve its productivity.

This metal colour coating company will acquire new equipment and improve its operating methods. This important undertaking will allow 200 jobs to remain in the Sainte-Clotilde region and some 20 more may be created.

This support from Canada Economic Development is another solid example of what we mean when we say we want to have everything in place to promote optimum productivity and thus better business performance.

I would also like to mention another example, the firm BCH Unique Inc. of Saint-Martin, Quebec, which got $200,000 in support last February in order to improve its productivity.

The company will reconfigure its assembly line and acquire some high tech equipment in order to eliminate bottlenecks and improve the working conditions of a number of employees.

Canada Economic Development's tangible commitment to the economic development of SMBs in Quebec has to be seen as an investment in the future and prosperity of a business in Quebec and as a major contribution toward improving the quality of life of many people in a community.

You will agree that this mandate is very important, and Bill C-9 will make it possible for us to do what the people of Quebec want done to carry it out.

I would therefore invite all members of Parliament to vote in support of Bill C-9 and in solid support of the development of Quebec's businesses and regions.

In closing, I move, seconded by the member for Pontiac, that the question be now put.

[Judy Wasylycia-Leis, NDP, Winnipeg North, MB]

Mr. Speaker, it is a pleasure to join in the debate on third reading of Bill C-9, an act to establish the economic development agency of Canada for the regions of Quebec.

This is a public policy matter of profound significance for communities everywhere. Although the bill deals specifically with community economic development in various regions of the province of Quebec, the concept we are discussing is critically important for the future of many communities across the country.

I would like to take a moment to address the essence of this proposal and the whole meaning of social, economic development or political involvement at the grassroots level because that is what we are talking about.

This is about communities having the means to ensure that community development occurs in ways that are relevant to that community. It is about turning around our priorities as politicians and as members of Parliament. We ought to stop saying how communities must perform. We ought to stop making decisions from on high about what communities need and what is best for people at the local level. We ought to begin by saying that no one knows better about what is in the best interests of a community than the people who work day in and day out building communities and creating cooperative arrangements for improving life in that particular neighbourhood.

I have a very relevant example in terms of my own constituency of Winnipeg North, a community that is a typical, inner city, north end neighbourhood. It is an older neighbourhood with old stock housing and many very significant problems in terms of economic and social development.

We are talking about communities where many people live on a day to day basis trying to make ends meet for their families, communities that are struggling in terms of some external factors that are hard to address. It may be an influx of people from other communities without proper housing and other services available to those individuals. We are talking about all the social determinants that come from economic indicators that are indicative of many social ills and problems that we all have to deal with on a day to day basis.

Economic development is central for every region and every community in every one of our provinces to overcoming great difficulties and ensuring we have a long term strategy for overcoming economic and social inequalities.

There is an old expression we have all heard that if we give a person a fish, they will eat for a day, but if we teach that person to fish, they will be able to provide for themselves and their families forever. One could even take that a little further and say that if one gave those families access to the pond, to the lake or the river where the fish are plentiful, then the future of that community is guaranteed forever. It is about giving communities the resources they need to develop, to grow and to provide for all of the people in that community.

We cannot do that in isolation. We cannot do that from government speaking on high and we cannot do it in terms of dealing with things on a piecemeal, ad hoc, band-aid, pilot project basis, which has been the tendency of the government.

It has not tended to look at communities in terms of holistic needs and in terms of working to find solutions with a community, not for that community, not telling that community how the job must get done.

My experience also comes from a community where in fact there is a very high aboriginal population. These are people who want to gain control over their own lives. They are people who know that they will continue to suffer social injustice and economic inequality until we as politicians are prepared to share power and are prepared to empower people to look after themselves, to care for themselves and to make communities work for one another. That is the essence of this concept and why this bill is so important.

Let me now focus specifically on Bill C-9. It is a bill that has gone through all the stages and has had serious study by the committee.

In that regard I want to acknowledge the work of my colleague, the member for Nanaimo—Cowichan, who is a member of the Standing Committee on Industry, Natural Resources, Science and Technology. She has been very much involved in the work of that committee in developing recommendations and amendments to this legislation to make it better, to make it more effective in terms of dealing with the very objectives at stake here, that is, how to give communities the means by which they can shape their own future.

At the committee stage of the bill, many amendments were proposed and many were passed. I want to indicate for all in this House that the New Democratic Party certainly supports the amendments, recognizes the hard work of the committee and wants to support the bill as amended.

Specifically, the amendments state very clearly that social economy enterprises will be included as eligible organizations. That will help community economic development opportunities in the province of Quebec.

As well, the amendments focus on how this money will be used to promote the Quebec economy. I want to look specifically at those amendments that do just that and speak about why we are so supportive of the amendments and the bill including these amendments. The first of these amendments states that there shall be means to:

(a) promote economic development in the regions of Quebec where low incomes and/or slow economic growth are prevalent, or where opportunities for productive employment are inadequate.

That is fundamental to the task at hand and to the very essence of Canadian economic development.

The second part of the amendment states that through this bill it will be emphasized that “long-term economic development and sustainable employment and income creation” are explicitly stated as fundamental goals. The amendments also include reference to a focus on small and medium sized enterprises and the development of entrepreneurial talent.

All these amendments are important, all establishing very clear boundaries that will help direct how the funding that is available will be used and to whose benefit. Very clearly, these are critical steps in terms of this whole process, integral to the whole legislation we are dealing with.

As recent events in Montreal have shown, it is very important that bureaucrats understand the limits of how funds should be used.

I again want to spend just a moment on the importance of literacy in any social economy program. I am sure that members of the Bloc will agree when I say that Quebec, like Atlantic Canada, has more adults with low literacy skills than the rest of Canada. As we agree to the new status for the Economic Development Agency of Canada for the Regions of Quebec, it is very important for us to emphasize that literacy skills are the most important for people who are in transitional and emerging economies.

I want to point out that ABC CANADA is a great organization working to improve adult literacy skills. The following is stated on its website:

Statistics Canada released a report called Literacy Skills for the Knowledge Society in 1997. This report confirms that we have a serious literacy problem in Canada. Here are some of the facts:

Literacy skills are like muscles--they are maintained and strengthened through regular use.

The higher an individual's literacy level, the more likely he/she will be employed and have a higher income.

Canadians use their literacy skills more in the workplace than at home.

--'good' jobs are those that provide opportunities to maintain and enhance literacy skills.

Let us stop for a moment and take a look at the third point I mentioned: that Canadians use their literacy skills more in the workplace than at home. It makes sense in that context, then, that any economic program, any community development initiative, needs to consider absolutely the need for lifelong learning, especially when it comes to adult literacy and numeracy training programs.

There is so much one could talk about in the context of the bill. I simply want to indicate our support for the bill as amended and to urge its final passage by the House of Commons.

I want to end by referring to some work prepared by the Canadian CED Network social economy round table consultation. I will refer specifically to the briefing notes the group produced. The document outlining the discussions at the round table consultation lists the main points that CCED Net believes should be common concerns during all consultations regarding the federal social economy initiative.

Emphasizing those three points really says it all in terms of what we are trying to achieve and what can be accomplished by providing the funds that are referenced in the bill and providing the framework for its implementation.

The three points made by CCED Net include, first, “strengthening social capital at the local level”. That means “building the local capacity of communities to systematically address the problems of their economies”. That is a very important point, because without acknowledging the need to increase local capacity so that the community itself can overcome the problems it is facing, we are only putting a band-aid on a problem. We are only allowing social injustices and economic inequalities to continue.

The second point about this approach involves “strengthening human capital at the local level”. This means “increasing the competence of local citizens to get and hold good jobs or build their own businesses, as well as to provide essential local leadership for the development process”.

This kind of investment in human capital cannot be done in isolation of all the parts of that individual. If we do not look at this on a holistic basis, it becomes almost impossible to see results by investing money strictly on the basis of a particular economic project. That means looking at the whole identity of an individual and of a community. That means considering the heritage, the culture, the skills, the particular expertise, and the practices of collaboration and working together: networking; the involvement of unions and businesses; the involvement of synagogues, churches and temples; the involvement of schools and universities; and the involvement of family associations and teacher-parent groups.

All of these various aspects of an individual's life, all integral to the health and well-being of a community, must be included in this concept of strengthening human capital at the local level.

Finally, let us get to the nub of the matter in terms of the wherewithal to do all of this. We have the people who want to do it. We have organizations at the local level with people who want to give their lives to making a difference at the community level, who are prepared to work on a volunteer basis and to work tirelessly doing community work, but they need the financial support of government to make that happen.

The third important point made by CCED Net about a community development or economic development initiative is “strengthening financial capital at the local level”. This means improving “investment resources available for local businesses, for affordable housing, and for alternative financial institutions”.

In this context, it is very important to reference the two budget bills passed by this House of Commons just last night, and in particular to reference the better balanced budget proposed by the NDP in Bill C-48, which in fact flows from this imperative and came from the need to address community needs and to support communities to help themselves. The money we have fought for and worked through with the Liberal government is critical for community economic development, the money for housing, education, retrofitting of homes, public transit and other environmental initiatives. All of these initiatives are critically important for feeding into the notion that the best communities are those that are able to help themselves.

By providing the resources to work with community groups like those I have in Winnipeg, the North End Community Renewal Corporation, Just Housing, Habitat for Humanity, North End Housing and other residents associations like the Point Douglas and William Whyte residents advisory groups, by providing assistance to those organizations and groups that are prepared to take on the challenges of a community that needs to be renewed and strengthened, we surely see the light at the end of the tunnel and know that the goals we all share can be accomplished.

This last point also references the need for every community to have access to financial institutions, and if those financial institutions are not there, to provide the resources to develop alternatives. When a community loses all of its bank branches and has no immediate direct access to financial institutions, then it is through community development and economic development proposals, like those we have been talking about under the auspices of this bill, that we can actually provide and ensure that a community has such access.

It is not easily done and it takes a lot of work, but I can tell members from firsthand experience how possible it actually is.

In the case of Winnipeg North, we have lost all of our bank branches in the last 10 years. In a very large and strategically significant area in Winnipeg, that being the north end, stretching many miles on all sides, there is no bank branch. The community realized that without access to financial services there would be no way to keep attracting new businesses. There would be no way to deal with the vacancies along main street and to get local initiatives housed and thriving in those vacant buildings without access to financial services.

That community, my community, decided to first take on the banks and it said to those banks that they had no right to desert a community that had been loyal to them for years and years, for decades and decades, and in some cases for more than 100 years. Those banks grew and became profitable because of that loyalty, only to desert that community when it was convenient for the banks because they wanted to make more profit in other areas. That community, my community, decided to take things into its own hands and to say to those banks, “If the banks will not stay and be loyal to us, then we will switch our allegiance and we will find our own way to deal with the situation”.

The community, through the North End Community Renewal Corporation, has developed an alternative financial institutions plan, has tested it and is now in the final stages of putting it into effect, but it needs money and it needs support from all levels of government. I have actually pursued this matter with the Minister of Finance and said to him that he had an obligation to support such community initiatives and to ensure that if the banks desert communities and we cannot legislate them to stay, then surely we, as representatives of this place and as members of a government, have an obligation to help communities help themselves and provide the necessary economic development and financial institutional resources that they need. The essence of this project is helping communities to help themselves.

I urge members of the House to support Bill C-9.

[Françoise Boivin, Liberal, Gatineau, QC]

Mr. Speaker, I listened carefully to the speech of my colleague. It is not the first time I hear that kind of comment. As a matter of fact, I intended to ask a question similar to the one asked by the minister responsible for Bill C-9 because, once again, erroneous answers are being given to Quebeckers. They are being told that there is one bill and that it is the only one that can be referred to. However, it is never said that it is sometimes because the province is not doing anything about this issue.

Now, in terms of regional collaboration, I know that Canada Economic Development has an extraordinary perception of my region, the Outaouais. Things are going very well. By the way, I want to say that CED-Q has been in place far longer than the CLDs and CREs that the Bloc Québécois is supporting and in which it sees a panacea to regional problems.

I would like to ask the member for Jonquière—Alma a question. Beside the fact that, in his own region, stakeholders do not seem ready to oppose Bill C-9 — he seems to be isolated in that regard — does putting so much focus on CREs not concern him, considering that other groups, namely women, are no longer involved in those organizations?

I think that when the Bloc Québécois says that there is community involvement, this is somewhat exaggerated. I believe that CED-Q already has a very good reputation. It works a lot with the community. Maybe it does such good work because it has been doing it for a long time. Therefore, I have a lot of difficulty understanding why the Bloc Québécois always comes back to CREs, and is acting in a way that is detrimental to Quebec.

[Jacques Saada, Liberal, Minister of the Economic Development Agency of Canada for the Regions of Quebec and Minister responsible for the Francophonie]

Mr. Speaker, my colleagues in the Bloc should get their act together. Clearly, one of their members asked a question, and his colleague could not give any real answer.

This question was quite simple and relevant. Was there any project in the Saguenay area in which all those concerned were ready to invest and which Canada Economic Development refused? The answer that was not provided and should have been is a resounding no. Not a single investment project that was put forward locally and supported by the Quebec government was rejected by Canada Economic Development. Not a single one.

Maybe these gentlemen should have a little discussion to find out why they are opposing Bill C-9. They do not even agree between themselves.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, first I want to congratulate my colleague from Jonquière—Alma on his speech regarding Bill C-9. He talked about the regional investment fund in the Saguenay—Lac-Saint-Jean region. This regional fund is supported financially by the community, by businesses and by the Quebec government. The region approached the federal government to seek its support, but the answer was no.

My question is this. Does the member believe that it would be important for the federal government to support this regional investment fund and can he tell us what this fund means for the development of a region such as the Saguenay—Lac-Saint-Jean region?

[Sébastien Gagnon, Bloc, Jonquière—Alma, QC]

Mr. Speaker, I want first to come back to some issues I had raised in my first speech, in addition to making a few points.

I had insisted on an important issue. We must avoid making allegations. Earlier, in oral question period, I heard my Liberal Party colleague, the member for Gatineau, claim or rather imply that regional development is not important to us.

I will not respond to such allegations, except to say that regional development is extremely important, too much, in fact, for us to engage in partisan politics. I think it is important to work or at least to try to work in harmony and cooperation in order to resolve all the problems in the regions. This is what the Bloc Québécois and I have tried to do in the debates at each stage of Bill C-9.

Earlier, I mentioned some important issues that the Bloc put forward. These issues were important to us, to Quebec and to the regions. We have made progress.

I also mentioned the concept of designated areas, which was struck from the bill. This concept gave the minister the freedom to intervene in one region instead of another. This was struck from the bill. This is fortunate.

One other thing was also struck. In my opinion, it may have been important to the government, but it was much less so to the opposition, for whom it was appalling to say the least. I am talking about the possibility of announcing grants during an election. An election is the time for debating the issues and adopting positions on local, regional and national issues, whereas this party is using it as an opportunity to announce grants.

We are quite pleased that our Conservative colleagues put forward this amendment, which naturally the Bloc Québécois supported.

The Bloc Québécois—which is concerned with equity throughout Quebec—also ensured that the original mission of the agency was put back in the bill. It reads as follows:

The object of the Agency is to promote the long-term economic development of the regions of Quebec by giving special attention to those—

Here is the important part:

—where slow economic growth is prevalent or where opportunities for productive employment are inadequate.

As I said, we went from the designated areas and the free will of the minister, and returned to a concern for equity of all regions truly in need.

We also offered the possibility to this government and to the minister that he have some authority. We would have liked him to participate and support our amendment. It concerns the possibility from the technical point of view—I will not go into detail—of his being able to make transfers directly to the Government of Quebec, of money, or least certain amounts, or agreements involving the regions, in order to participate in some major initiatives. That would not, of course, mean just anything, but would involve major initiatives for certain regions.

For example, in Saguenay-Lac-Saint-Jean a consensus emerged from the summit between Quebec and its regions for the creation of a regional venture capital investment fund. This fund is so important that even a major company like Alcan is prepared to inject money into it. The Government of Quebec is even prepared to match, and double, the amount contributed by the community. For example, if there were $10 million in private funding, the Government of Quebec would be prepared to inject $20 million. This is a major initiative.

Once again, on a number of occasions, this government has refused to participate. This is a regional prerogative on which there was consensus from all leaders in the region, regardless of party.

There is one other important reason behind the refusal to support this bill, which has been rejected by both the government and the Quebec federalists. I make that differentiation because, at one point, even western Conservative MPs had accepted this orientation. We wanted the agency and the minister to exercise their authorities in such a way as to respect the priorities of the Government of Quebec for regional development. Why is this so vital? Quite simply because the majority of questions that impact on regional development fall into areas under Quebec jurisdiction. Yes, someone could bring up the Charter, but I am not talking about that.

Municipalities, Quebec's; land use planning, Quebec's; assessment and training, Quebec's; accepting and integrating immigrants, Quebec's; and, natural resources, a huge area, Quebec's. The same is true of hydroelectricity, forests, lumber and land use planning. All of these issues are unavoidable, and the Government of Quebec cannot be ignored. Regional development requires Quebec consensus, because it concerns Quebec and its regions primarily.

I would say as well that the other reasons relate to the establishment of such a substantial organization. There must be no competition so as to avoid any counter-productive duplication. The minister himself said that the aim is complementarity. He is offered a chance to consolidate this complementarity and out of hand he rejects the notion of respecting the priorities of the Government of Quebec. Whatever the government thinks, the witnesses who came to the committee should have been heard. Mr. Jean-Claude Beauchemin, the mayor of Rouyn-Noranda said, “Given the nature of the Agency proposed in Bill C-9, we fear that there may be a strong centralization of this process and a breakdown of the mutual consultation mechanisms ”.

Others have said, “We plan to create a department, but there are no mechanisms for cooperation among federal departments, throughout Canada or between provinces and regions.” And we have also heard people say, “Economic development agencies do not have a board of directors, and therefore they are unable to bring together the stakeholders to discuss the issues in regional initiatives.”

My time is running out, but I would have other comments to make regarding witnesses. In view of this testimony, the problem I have with the government and the minister is that they missed the target when they refused, or failed, to consult the most important people, the people in the regions. They are the ones who, day in and day out since even before I was born, have been working for economic development. They bring focus to these debates and to the regional development approach. This is why we will vote against Bill C-9.

[Sébastien Gagnon, Bloc, Jonquière—Alma, QC]

Mr. Speaker, I expect my speech will be interrupted for members' statements.

I would like first to salute the people of the Saguenay—Lac-Saint-Jean, especially those who work for regional economic development, including the officials of Canada Economic Development and the volunteers and officials of the CFDCs and the CLDs. A lot of people are working very hard for regional economic development.

Quebec's resource regions face major problems, specifically such important crises as those of softwood lumber and mad cow disease and the closures of plants in a number of sectors, such as textiles and aluminum. The origins of this bill have to be understood. Past regional economic development models generated employment. Raw materials could be collected and processed at full throttle. However, today, they are obsolete and should be thoroughly reviewed.

With this bill, a fine opportunity to visit the regions of Quebec, consult people working in regional development and elected officials has been missed. The government has created a structure but neglected the most important aspect, that of looking to see if today's tools are effective and will carry us through to the future.

I would also like to say that we have worked very hard on this bill. We thought we could improve the fate of the regions and substantially change this bill to benefit Quebec and the regions. I would also remind the minister and the government that, at no point, did we obstruct parliamentary proceedings in order to delay this bill. I recall that, for a month, we even discussed with colleagues from the other parties in order to negotiate amendments and proposals. This shows a clear desire, which is important, to look after regional development properly.

I can only regret certain statements by colleagues, among others, those of the member for Gatineau. At one point she said that our voting against the bill meant we had no concern for regional development. I think that in this House it is possible to have debates, oppose bills or try to improve them, but never would I say to any of my colleagues that they oppose regional development.

Currently, especially in resource regions such as mine, hard hit by various crises, petty politics would be counter productive. I would not dare do it. There is too much at stake.

I must say that the Bloc Québécois will vote against Bill C-9 today, for several reasons. One of those reasons is that the bill ignores some fundamental principles, such as respect for what is being done in terms of regional development, all across Quebec.

There is nothing to get excited about in this bill. It does nothing more than create a structure. I refer to the Department's own documents regarding the Economic Development Agency. When we ask what will be the impact of this bill on the environment, we are told that it does not make any changes to the agency’s role and places the emphasis on promotion, development and diversification. It is clearly stated that the bill will bring no change.

A little further in the same document, the question is asked in the following terms: will the agency act affect existing programs and, by extension, the clientele the agency serves? The answer is a clear no. The existing programs will remain in place and there will be no impact.

This means that even if the House does not pass this bill, there will continue to be some economic development. We as members and the regions will continue to get the money to which we are entitled. This money is in Ottawa. The agency may take credit for delivering it to regions, but it still is our money. It is money to which citizens are entitled and which must be returned to resource regions.

As we know, there has been much debate on this bill. Things have been said, work has been done. However, the important thing is that the Bloc Québécois has gained something. There is an important premise in the bill which is different than under the former agency, and it was essential we did not support it. It is the whole concept of designated areas. Let me explain.

Through an order in council, the minister could target a specific region by giving it priority because it is lagging behind in terms of employability, or at least economically. What does it mean, “the minister may, by order”? Does that mean that depending on his mood, whether he is politically sensitive to certain people or situations, he could target or prioritize one region over another?

We feel Canada Economic Development has to operate fairly. There has to be fair distribution of the money allocated and fair intervention methods in Quebec that are based on real needs. Where are these real needs? They are in the regions that are lagging behind in terms of employability, in regions that have lost many jobs or that have a high unemployment rate due to plant closures. Those are the true concerns. It absolutely should not have been left to the mood of this minister or this government. What is this, if not a lack of vision, or at least a flag waving extravaganza, or yet another attempt to buy Quebeckers with a rash of spending?

We are pleased because we fought the battle and won. In addition, all the witnesses agreed that this designated area concept was dangerous. You have to understand that there are many regions where balanced distribution of funding is needed. Abitibi cannot be chosen to the detriment of Saguenay-Lac-Saint-Jean, or Gaspé to the detriment of the North Shore, or Huntingdon, where they are in a crisis over the textile industry. There has to be a concern for fairness and loyalty toward these people who need it and who have contributed for years to creating this type of structure through the taxes they have paid.

Other points were raised in which we made gains. I want to commend the Conservative Party for working with us on this. We agreed that no spending should be announced during the election campaign. This kind of announcement left too much room for partisanship to the detriment of regional development. This issue was raised and agreed to. There will be no announcements during that period.

Officials in the regions need to have free reign in order to do their work without political obstruction.

[Scott Reid, Conservative, Lanark—Frontenac—Lennox and Addington, ON]

Mr. Speaker, I rise to participate on behalf of my party in the debate on third reading of Bill C-9. This bill's short title is the Economic Development Agency of Canada for the Regions of Quebec Act, and all it does is create that agency from an Industry Canada portfolio program.

On November 5 last year, during the second reading debate on this bill, we spoke of putting the Economic Development Agency of Canada for the Regions of Quebec on equal legal footing with the Atlantic Canada Opportunities Agency, but this bill focuses primarily on cosmetic changes. As a result of this bill, no one will change their responsibilities or phone number. This bill is just about changing letterhead and business cards to signal a new legal status.

Our party also said that, as a matter of fact, changes provided for in the bill have already been implemented. For example, the minister responsible for this agency, the hon. member for Brossard—La Prairie was named July 20, 2004 nearly nine or ten months ago, and we still have not approved the creation of his department.

The Liberals' arrogance shows through, since they are presuming on the cooperation of a minority Parliament. Nonetheless, the Conservative Party is in favour of this bill because it agrees exactly with paragraph 33 of the Conservative Party of Canada's policy declaration, which reads:

The Conservative Party recognizes that regional development policies are an important part of any comprehensive strategy to assist the regions of Canada to meet the opportunities of the new global economy. Regional development agencies, like ACOA, WED, FEDNOR and CED-Q, must be depoliticized and focussed on attracting new private sector investments.

Since this bill deals generally with administrative changes, there is no reason to reject it. Besides, we have found some elements that deserve our support. First, it puts the Atlantic Canada Opportunities Agency and the Economic Development Agency of Canada for the Regions of Quebec more or less on a level playing field. Like our critic said on November 5, we are still aware of important differences in the goals of the four regional development agencies, but Bill C-9 is a step forward.

Moreover, as modified by the House of Commons Standing Committee on Industry, Natural Resources, Science and Technology Bill C-9 can serve as a model for other regional development agencies. For example, all Canadians want to take the politics out of regional development. All non-Liberal Canadians want to take the politics out of regional development.

One of the Conservative amendments at committee prohibits announcements during an election campaign. The new subclause 5(3) reads:

No grant or contribution shall be announced from the date that a federal election has been called until the day after voting day.

Preventing regional campaigning with regional development money during a federal election is simply the logical thing to do. It should not even need to be said but the behaviour of the Liberal government and in particular of the sponsorship scandal confirms the absolute necessity of depoliticizing at all times the spending of public money.

In this way the new subclause 5(3) that the Conservative member has proposed is a huge step forward and should serve as a model for the other regional development agencies.

Another clause of Bill C-9 that the Conservative MPs proposed and that should be extended to other regional development agencies is the new clause 10(2), which demands better cooperation between the Canadian and Quebec governments. This clause reads:

10(2) In carrying out its object, the Agency shall take such measures as will promote cooperation and complementarity with Quebec and communities in Quebec.

The new spirit of cooperation in clause 10(2) is found in various other amendments that the committee made to Bill C-9.

Of the various regional development agencies across Canada, only one, CED, is focused solely on one whole province.

In western Canada, the Department of Western Economic Diversification promotes the development and diversification of the economies of the four western provinces.

In the east, ACOA promotes the economic interests of the four provinces in Atlantic Canada. In both cases, these agencies have to work with four different provincial governments. By contrast, CED exists only in Quebec and its responsibilities are limited to Quebec's boundaries.

Given that the department's territorial responsibilities coincide exactly with those of Quebec's democratically elected government, there is a possibility of conflict between the goals of an agency filled with Ottawa appointed bureaucrats and the goals of the Government of Quebec. For this reason, it is particularly important to ensure compatibility between the department's actions and those of the Quebec government.

In fact, the record of turbulent relations between Ottawa and Quebec and the distrust which is the root of the impressive growth of the sovereignty movement confirms a sad reality; we must at all costs protect a Quebec provincial government, whatever its stripes, from unwarranted federal intrusion into areas of provincial jurisdiction.

Our Constitution divides powers between the federal and provincial governments. Sadly, the track record of past federal Liberal governments does not inspire confidence.

In fact, the fiscal imbalance is one of the main reasons why Quebeckers tolerate the existence of CED. As we all know, the federal government collects roughly two thirds of the taxes paid in Canada, while the provinces have to provide the most expensive services such as health care, welfare and education. The gap between provincial sources of revenue and the costs of meeting their obligations is the main reason for shared programs such as medicare.

While we must support the bill over the long term, we must address the root problem which is the fiscal imbalance. Until that situation is addressed, any regional development policy is really just a symbolic gesture. In fact, given that Bill C-9 does not require the spending of an additional dime in the development of Quebec's forest regions, it is important to underscore again that Bill C-9 is only a token gesture.

In a similar way, our support of Bill C-9 is a clear demonstration of the Conservative Party's strong desire to encourage a tighter and more productive cooperation between the federal government and the Government of Quebec. The new clauses proposed by Conservative MPs that demand a tighter and more productive cooperation between Ottawa and Quebec City with respect to Quebec's regional development are the main reasons why our party supports the bill. They are inspired by paragraph 14 of the Conservative Party's 2005 policy declaration which reads:

1. A Conservative Government will work co-operatively with the provinces to improve the lives of Canadians while respecting the division of powers and responsibilities outlined in the Constitution.

We see these new clauses as a precedent to be enshrined in other bills. Thus Bill C-9 could help us to build a stronger and more united Canada.

Nonetheless, Bill C-9 is nothing more than an insufficient first step. A name change in itself does note create a single additional job or stimulate the economy of any the disadvantaged regions of Quebec.

We should not forget either that the Liberal government finds itself in a scandal without precedent in Canadian history. The sponsorship scandal, the Prime Minister's relationship with Claude Boulay, his relationship with Earnscliffe, the government's contracts with his old company, CSL, reveal a government the depth of which true corruption is still unknown.

We have to replace the government and Quebeckers, more than any other Canadians, are cognizant of this fact.

While Quebeckers prepare for a federal election, I want to underscore that our support for Bill C-9 is based on three principles: first, our commitment to Quebec's regional development; second, our dedication to keeping politics out of regional development in Quebec and in all other regions of Canada; and third, our insistence that the federal government respect at all times the division of powers and responsibilities outlined in the Canadian Constitution. We offer them truly, for the first time in a decade, the possibility of a government that is honest, pan-Canadian and inclusive of Quebec's point of view. I invite them to consider it.

[Jacques Saada, Liberal, Minister of the Economic Development Agency of Canada for the Regions of Quebec and Minister responsible for the Francophonie]

moved that Bill C-9, an act to establish the Economic Development Agency of Canada for the Regions of Quebec, be read the third time and passed.

Mr. Speaker, I am very pleased to rise again to speak on Bill C-9, which is a legislative measure of great importance to fulfilling the mandate of my department. Since July 2004, in fact, I have been responsible for this department, the Economic Development Agency of Canada for the Regions of Quebec, more commonly called Economic Development Canada.

Numerous debates here and in the Standing Committee on Industry, Natural Resources, Science and Technology have made it possible to amend the wording of this bill, to make it clearer and better. After months of work, we now have a bill in our hands that is not only better, and better adapted to the situation and needs of today's Quebec, but also and above all the best possible synthesis of the views of the various parties in this House. I say best possible because, as Picasso said, if there were only one truth, it wouldn't be possible to paint 100 variations on the same theme.

I would therefore like to express my very warm thanks to all those who have been a part of this debate and have enriched it with their respective points of view.

The bill we are being called upon to adopt is more inclusive. The concept of social economy enterprise is now included in the concept of small- and medium-sized enterprises which was the terminology in the first version of Bill C-9. This amendment to the bill and to the mission of the agency is a recognition of the constantly growing role played by the social economy in Canada, and in the communities of Quebec in particular.

Social economy enterprises will thus find partners for their own development and for the revitalization of their communities in Canada Economic Development, its programs and its services.

I add that this amendment appears especially important given that Quebec constitutes one of the primary promoters of the social economy in Canada.

A few weeks ago, when I was visiting the Carrefour de l'économie sociale Angus to announce two major contributions by my department, I had the privilege of meeting a group of promoters and workers in the social economy, who spoke eloquently of what the social economy had done for their communities. I would very much have liked for members to share this magic moment with me. I wish as well that members could have seen the light in their eyes and feel the enthusiasm they exuded.

The bill we are being asked to pass is encouraging for regions in Quebec experiencing difficulty and for vulnerable communities. It confirms, in the object, powers and duties of Canada Economic Development the importance of supporting regions where slow economic growth is prevalent and where opportunities for productive employment are inadequate. This is an essential component of my department's mandate.

Because economic diversification is still in its early stages, many of these regions remain too dependent on a single resource or product, which fluctuates beyond our control in the context of globalization. With an eye to fairness and to the fight against regional disparity, Canada Economic Development partners regions having difficulty adjusting to the global context.

The recent budget provides for an increase of $800 million in funding for regional economic development agencies for Canada. We have to be clear. For Quebec, it means a budget increase of more than $300 million over five years. We will use these funds to support vulnerable communities and single industry communities, as we do now, for example, in Huntingdon and Asbestos. The increase is of course dependent on the passage of the budget.

In another vein, passage of Bill C-9 will also mean that the agency will work to promote ever closer cooperation with the Government of Quebec and the communities of Quebec under its object, powers and duties.

Cooperation does not mean subordination. It serves to increase the complementarity of federal and provincial interventions. Complementarity does not mean subordination, either. Let me give you an example of cooperation and complementarity.

A few weeks ago, following the Government of Quebec's decision to restructure forest management, a very courageous decision I might add, I made a commitment to allocate roughly $30 million a year to alleviate the impact of this decision on the communities affected. In addition, I eagerly agreed with Quebec's finance minister, Michel Audet, to include Canada Economic Development in a coordinating committee for our mitigation plans. That is cooperation and a respectful complementarity of our respective obligations. It is an effective complementarity.

We all know that such cooperation between the federal government and the provincial government is continual and productive.

The development of support measures for social economy enterprises, for example, has given both governments the opportunity to work together to ensure the complementarity of their programs.

To give you another example, on January 27, I went to Chandler, where my colleagues from the Government of Quebec and I made a joint announcement of various measures to promote the economic diversification of that Gaspé community.

The $1.15 million boost from Canada Economic Development will go toward a development strategy and the implementation of the promotional tools needed to attract new businesses to Chandler or to encourage existing businesses to stay. The Government of Quebec issued an action plan for the transportation, tourist accommodation, health and social services sectors.

In the wake of this cooperation with Quebec, and within the framework of the bill we are talking about today, the minister responsible for Canada Economic Development will be able to conclude cooperation and sectoral agreements with his Quebec counterparts or with one of the agencies.

This provision in Bill C-9 fully meets the wish expressed by a number of witnesses who appeared before the standing committee. I am thinking in particular of Mr. Raymond Giguère, who is the director general of the CEGEP in Rimouski. He said, and I quote:

It would be necessary to maintain the capacity to foster a collaborative approach with stakeholders from other orders of government.

While the approach used by the Economic Development Agency of Canada promotes complementarity and a better synergy of initiatives, it also seeks to promote joint planning between the various levels of government and the community's movers and shakers. This approach is primarily based on the regional intervention strategies developed by the agency in each of Quebec's regions, through an interconnecting relationship with the community. These strategies are developed with and for the community. They are based on the regions' economic strengths, their industrial and institutional structures, their competitive advantages, and their areas of excellence.

Ms. Manon Laporte, the president and chief executive officer of Enviro-Access, in Sherbrooke, made this comment when she appeared before the committee:

The presence of the regional offices of the Economic Development Agency of Canada ... allows for networking amongst the partners in the community. It also means that particular needs can be supported rather quickly.

It was also before the Standing Committee on Industry that Ms. Randa Napky, the director general of Tourisme Abitibi-Témiscamingue, described in those terms the close relations of its organization with the agency:

We decide here in the region on the priorities and development themes we want to adopt, in concert with a major partner such as CED. Its role in our community is not confined to project funding, which is of course necessary, but extends to its presence and participation in a multitude of activities, its expertise and knowledge of the region's dynamics and characteristics, its solidarity, and its desire to develop the regions and guide them in their development.

The Economic Development Agency of Canada for the Regions of Quebec, which is present in every region of the province with its 14 business offices, is close to the residents of those regions. This proximity, this sensitivity, this intimate knowledge of local and regional issues, makes a real difference when it comes to regional development.

The role of this department, which I have the honour of managing, was already enshrined in the 1982 Constitution. Indeed, section 36.1 is very clear regarding the Government of Canada's responsibility to fight regional disparities. Now, this responsibility is reaffirmed in Bill C-9.

Beyond the statistics and even beyond the political aspect of all this, what really counts is the pride of a woman who wants to start a business and has our confidence. It is a young researcher in Rimouski or in Sherbrooke who speaks passionately about his professional future in his native region. It is the head of a social economy enterprise who introduces her staff, a swarm of busy bees who have found dignity through work. It is Montreal, a city that sparkles, that vibrates and that plays host to the rest of the planet.

That is what I am working to achieve with my officials at Canada Economic Development, and I must say they are an extraordinary group of people. Therefore, I invite all members of the House to vote in favour of Bill C-9.

I will conclude my remarks with a message to the members of this House. The Conservatives, the Liberals and the New Democrats support this bill.

I want to invite the Bloc Quebecois to show its commitment to Quebec's economic development, to agree to change its position, to stop opposing this bill, to put the economic interests of the regions of Quebec before its own dogmatic interests and to vote in favour of this bill.

Business of the House

[Tony Valeri, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I know the hon. member was attempting to show some civility. He has great difficulty in doing that.

After completing the debate on the budget bills, Bill C-43 and Bill C-48, the House will take up third reading of Bill C-9, the Quebec development bill; Bill C-23, the human resources legislation; Bill C-22, the social development bill; and Bill C-26, the border services legislation.

We would also like to deal with the census bill, Bill S-18 and the RADARSAT bill, Bill C-25. If there is time, we would start Bill C-46, the corrections and conditional release bill; Bill C-47, the Air Canada bill; and Bill C-28, the food and drugs bill.

This list of legislation will carry the House well into the week of May 30, the week in which we return from the break.

In addition, three days that week shall be allotted days, namely May 31, June 2 and June 3. On May 31 the House will go into committee of the whole to consider the estimates of the Minister of Social Development.

I look forward to working with all of my colleagues in the House because I know, and all members know, it is in the interests of Canadians to get this Parliament working on the issues that are important to them.