Bill C-309 (Historical)

Economic Development Agency of Canada for the Region of Northern Ontario Act

An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario

This enactment establishes the Economic Development Agency of Canada for the Region of Northern Ontario and specifies the powers, duties and functions of the responsible Minister and the Agency.

Economic Development Agency of Canada for the Region of Northern Ontario Act

[Anthony Rota, Liberal, Nipissing—Timiskaming, ON]

moved that Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario be concurred in.

The House proceeded to the consideration of Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, as reported (without amendment) from the committee.

Industry, Science and Technology.

[The Speaker, Peter Milliken]

The House will now proceed to the taking of the deferred recorded division on the motion to concur in the second report of the Standing Committee on Industry, Science and Technology concerning the extension of time to consider Bill C-309.

Industry, Science and Technology

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Mr. Speaker, I have the honour to present, in both official languages, the second report of the Standing Committee on Industry, Science and Technology, concerning its study of Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario. The committee requests an extension of 30 days to be able to properly study the bill.

I also have the honour to present, in both official languages, the third report of the Standing Committee on Industry, Science and Technology, in relation to its study of Bill C-393, An Act to amend the Patent Act (drugs for international humanitarian purposes) and to make a consequential amendment to another Act.

The committee requests a 30-day extension in order to give the bill proper consideration and to hear all witnesses who wish to appear.

Royal Recommendation and Ways and Means Motions

[The Deputy Speaker, Andrew Scheer]

Before we begin private members' business today, I would like to make a brief statement regarding the issue of royal recommendation and ways and means motions with respect to private members' business

Just as individual items of private members' business continue their legislative progress from session to session, the Chair's rulings on those same items likewise survive prorogation.

Specifically there are nine bills on which the Chair either commented, ruled or has heard a point of order with regard to the issue of the royal recommendation. There was also one bill on which a point of order was raised regarding the requirement for a ways and means motion.

The purpose of this statement is to remind the House of those rulings and of the questions that remain to be dealt with.

Members will recall that, during the last session, some private members’ bills were found by the Chair to require a royal recommendation. At the time of prorogation, there were seven such bills on the order of precedence or in committee.

Let us review briefly the situation in each of these seven cases.

Three of these bills were awaiting report stage in the House at the time of prorogation, namely: Bill C-201, An Act to amend the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act (deletion of deduction from annuity), standing in the name of the member for Sackville—Eastern Shore;

Bill C-241, An Act to amend the Employment Insurance Act (removal of waiting period), standing in the name of the hon. member for Brome—Missisquoi;

Bill C-280, An Act to amend the Employment Insurance Act (qualification for and entitlement to benefits), standing in the name of the hon. member for Algoma—Manitoulin—Kapuskasing.

On May 12, 2009, the chair had ruled that Bill C-201, in its form at second reading, needed to be accompanied by a royal recommendation. In committee, all clauses of the bill were deleted. In its present eviscerated form, Bill C-201 need no longer be accompanied by a royal recommendation.

As for Bill C-241 and Bill C-280, the chair ruled on April 22, 2009 and on June 3, 2009 respectively, that these bills in their present forms required royal recommendation. The committee stage has not altered this finding.

The following four bills were at committee stage: Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income), standing in the name of the hon. member for Richmond—Arthabaska was before the Standing Committee on Finance; Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), standing in the name of the hon. member for Chambly—Borduas was before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities;

Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, standing in the name of the hon. member for Nipissing—Timiskaming, was before the Standing Committee on Industry, Science and Technology;

finally, Bill C-395, An Act to amend the Employment Insurance Act (labour dispute), standing in the name of the hon. member for Berthier—Maskinongé was before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

The Chair ruled that all these bills in their present forms needed to be accompanied by a royal recommendation. The rulings were given on October 23, 2009 for Bill C-290, on October 29, 2009 for Bill C-308, on June 16, 2009 for Bill C-309 and, more recently, on November 16, 2009 for Bill C-395.

Furthermore, points of order were raised by the hon. Parliamentary Secretary to the Government House Leader at the end of the last session with respect to the need for a royal recommendation for two bills. These are: Bill C-343, An Act to amend the Canada Labour Code and the Employment Insurance Act (family leave) standing in the name of the hon. member for Compton—Stanstead and Bill C-471, An Act respecting the implementation of the recommendations of the Pay Equity Task Force and amending another Act in consequence standing in the name of the hon. member for Etobicoke—Lakeshore. Both of these bills were at second reading.

Just as was done in the last session, the Chair invites other members who would like to make arguments regarding the need for a royal recommendation for those two bills or any of the other bills on the order of precedence to do so at an early opportunity in order for the Chair to come back to the House with a ruling as soon as possible.

Finally, a point of order was raised during the last session regarding Bill C-470, An Act to amend the Income Tax Act (revocation of registration), standing in the name of the hon. member for Mississauga East—Cooksville, arguing that it should have been proceeded by a ways and means motion. The Chair has taken the matter under consideration and a ruling will be delivered in the days to come.

I thank hon. members for their attention.

It being 1:35, the House will now proceed to the consideration of private members' business as listed on today's order paper.

Business of the House

[The Speaker, Peter Milliken]

I would like to make a statement concerning private members' business. Standing Order 86.1 states that all items of private members' business originating in the House of Commons that have been listed on the order paper during the previous session shall be deemed to have been considered and approved at all stages completed at the time of prorogation.

In practical terms, this means that notwithstanding prorogation, the list for the consideration of private members' business established at the beginning of the 40th Parliament shall continue for the duration of this Parliament.

All items will keep the same number as in the first and second sessions of the 40th Parliament. More specifically, all bills and motions standing on the list of items outside the order of precedence shall continue to stand. Bills that had met the notice requirement and were printed in the order paper, but had not yet been introduced, will be republished on the order paper under the heading “Introduction of Private Members' Bills”. Bills that had not yet been published on the order paper need to be re-certified by the office of the Law Clerk and Parliamentary Counsel and be resubmitted for publication on the notice paper.

All items in the order of precedence are deemed to have been considered and approved at all stages completed at the time of prorogation. Thus, they shall stand, if necessary, on the order paper in the same place or, as the case may be, referred to the appropriate committee or sent to the Senate.

At prorogation, there were 11 private members' bills originating in the House of Commons adopted at second reading and referred to the appropriate committee. Therefore, pursuant to Standing Order 86.1: Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income), is deemed referred to the Standing Committee on Finance.

Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, is deemed referred to the Standing Committee on Foreign Affairs and International Development.

Bill C-304, An Act to ensure secure, adequate, accessible and affordable housing for Canadians, is deemed referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), is deemed referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, is deemed referred to the Standing Committee on Industry, Science and Technology.

Bill C-310, An Act to Provide Certain Rights to Air Passengers, is deemed referred to the Standing Committee on Transport, Infrastructure and Communities.

Bill C-391, An Act to amend the Criminal Code and the Firearms Act (repeal of long-gun registry), is deemed referred to the Standing Committee on Public Safety and National Security.

Bill C-393, An Act to amend the Patent Act (drugs for international humanitarian purposes) and to make a consequential amendment to another Act, is deemed referred to the Standing Committee on Industry, Science and Technology.

Bill C-395, An Act to amend the Employment Insurance Act (labour dispute), is deemed referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Bill C-442, An Act to establish a National Holocaust Monument, is deemed referred to the Standing Committee on Transport, Infrastructure and Communities.

Bill C-464, An Act to amend the Criminal Code (justification for detention in custody), is deemed referred to the Standing Committee on Justice and Human Rights.

Pursuant to Standing Order 97, committees will be required to report on these reinstated private members’ bills within 60 sitting days of this statement.

In addition, one private members’ bill originating in the House of Commons had been read the third time and passed. Therefore, pursuant to Standing Order 86.1, the following bill is deemed adopted at all stages and passed by the House.

Bill C-268, An Act to amend the Criminal Code (minimum sentence for offences involving trafficking of persons under the age of eighteen years). Accordingly, a message will be sent to the Senate to inform it that this House has adopted this bill.

As they are no longer members of this House, all the items standing in the name of Ms. Dawn Black, Mr. Bill Casey and Mr. Paul Crête will be dropped from the order paper.

Consideration of Private Members’ Business will start on Friday, March 5, 2010.

To conclude, hon. members will find at their desks an explanatory note recapitulating these remarks. I trust that these measures will assist the House in understanding how private members' business will be conducted in the third session. In addition, the table can answer any questions members may have.

Industry, Science and Technology

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Mr. Speaker, I have the honour to present, in both official languages, the ninth report of the Standing Committee on Industry, Science and Technology, concerning its study of Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario. The committee requests an extension of 30 days to be able to properly study the bill.

Economic Development Agency of Canada For The Region of Northern Ontario Act

[The Speaker, Peter Milliken]

Pursuant to order made on Tuesday, June 16, 2009, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-309 under private members' business.

The House resumed from June 16 consideration of the motion that Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, be read the second time and referred to a committee.

Economic Development Agency of Canada for the Region of Northern Ontario Act

[Anthony Rota, Liberal, Nipissing—Timiskaming, ON]

Mr. Speaker, I rise today with a real sense of pride in Bill C-309 that has been presented to the House. I look around and see that there is support from three parties but not from one. It is the same party that recommended to the Speaker that this bill not receive a royal recommendation.

As everyone can imagine, I rise today with a sense of pride but also a heavy heart. I listened to what was said by the members of the Conservative Party and, in particular, the member for Kenora. He said this bill is looking to duplicate FedNor. Nothing could be further from the truth. FedNor is a program. Liberals want it to be an agency. Why? So that we could be on equal footing with everyone else and the people of northern Ontario would not be second class citizens. That is all we are asking for.

We are looking at FedNor and saying we have a program, but we want an agency like everyone else. I do not think that is an unfair request. To say that it is a duplicate shows that the member does not understand what this bill is about. I am hoping that he will revisit it and understand what Bill C-309 would do.

The other issue that has come up is the cost of bureaucracy and the extra cost that a FedNor agency would require. Let me explain the difference in bureaucratic or corporate services that are required between a program and an agency.

A separate agency generally requires its own corporate services and communications divisions to provide human resources and public relations support. FedNor already has its own corporate services and communications divisions. If it were turned into a separate agency, creating these divisions would not be an issue. FedNor currently employs 140 civil servants throughout northern Ontario.

Conservatives say a program is just as good. A program is not just as good as an agency. The difference between an agency and a program is that a program is part of Industry Canada, it is buried in it. Whereas, an agency reports to a minister and Parliament. Any change in its mandate has to come through Parliament. If any major change needs to be made or if it has to be eliminated, it has to be voted on by all members of Parliament, not just the minister who decides on a whim to get rid of a program which would really hurt northern Ontario.

When I compare a program and an agency, I wonder why the Atlantic Canada Opportunities Agency is an agency. Canada Economic Development for Quebec Regions is an agency. Western Economic Diversification Canada is an agency. Two new agencies were just created. If the government thinks a program is just as good as an agency, why were there not simply two new programs put in place?

There was talk about money going south. We know the CFDCs are administered through FedNor in northern Ontario. There is no change in that. There is no danger of that going anywhere else under an agency. In fact, it will be stronger and better administered.

When I hear these misleading statements coming from the Conservatives, I am hoping they will be able to look at the bill objectively, change their minds, and maybe withdraw their request that the royal recommendation not be given. Really, it is a sleight against all the people in northern Ontario.

In closing, this is not about extra cost. It is not about extra bureaucracy. It is about providing security throughout northern Ontario with regional economic development, something that the people of northern Ontario deserve and should have in the form of an agency.

It is not about fighting about what one area or another should have. It is about being equal right across the country. Right now, the people of northern Ontario are not as equal as everyone else. We feel like second class citizens in our own country and I really do not think that is the Canadian way to live.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I am indeed pleased to speak to Bill C-309 and support my colleague from Nipissing—Timiskaming.

He is right when he states that the residents of northern Ontario deserve the same privileges, services and powers that full-fledged agencies, such as the Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions and Western Economic Diversification Canada, in fact, do have.

However, although I am a strong supporter of regional development and ACOA in Atlantic Canada, I have to admit that the services of that agency have really deteriorated substantially since the current Conservative government came to power. A lot of that deterioration is due, at least in part, with ACOA now, in Prince Edward Island, being allowed to be used basically as patronage heaven, right from its vice-president within the province, to some of the contracts it feeds out, to how it operates in terms of almost supporting a research department for the official opposition in Prince Edward Island.

That is not why ACOA was set up in the beginning. It was set up to be an agency, to create programs, to do business development, not to be a slush fund for a government that had claimed that it was against patronage when it came to power. Most sadly of all is that the president of ACOA, whose office is in Moncton, New Brunswick, has failed to stand up against the Prime Minister in terms of doing her job and prevent that kind of political patronage from happening. That should not happen within a regional development agency.

So I say that at the beginning, as a word of caution, that these agencies have a job to do. They are important, but they have to be staffed in such a way so as to do their job and not be allowed to be used for patronage purposes.

I could elaborate at length on that, but I really want to get back to the key point that my colleague is making on the need for a northern development agency rather than a program.

It is important that the Government of Canada be committed to ensuring that the people of northern Ontario are given every opportunity to develop and maintain a strong regional economy, as well as diversify and strengthen their employment base. The whole purpose of this bill to ensure that this indeed does happen.

Since the Conservative government took office in 2006, the FedNor budget has been slashed by nearly $7 million a year for a region that needs development. This bill is designed to ensure that FedNor would not be subject to further cuts.

The government has failed to give due recognition to the fact that the regions where it failed to get members elected, places like northern Ontario, merit fair consideration with respect to regional and rural development.

We did see, and we do not disagree with it, in the last budget two new agencies created. One is the southern Ontario development agency, with $1 billion over five years, that is if the Conservatives ever spend it. We know they are good at making announcements, as we heard in the House during question period today from the President of the Treasury Board. He rolls out the numbers, but there is no substance to the facts that he talks about.

The fact is the government makes announcements but fails to deliver. Hopefully, it will deliver to the southern Ontario development agency the moneys it promised. As well, there is a new regional economic development agency for the north, with $50 million over five years.

It is important that fair consideration be given with respect to regional and rural development in places like northern Ontario. The same of course applies to the Atlantic region and the unique concerns of our rural communities.

Some no doubt will be wondering why the legislation was not introduced sooner than today or why it is being introduced by a Liberal member as opposed to the minister responsible for FedNor.

The answer to both these questions is quite simple. Regional development programs, such as FedNor, were never in jeopardy under the previous Liberal government. Since taking office, the Conservatives have made it abundantly clear that they do not believe in the effectiveness of regional development as we in fact do.

We target specific programs through agencies into areas with specific objectives, whether it is developing the infrastructure within the region, whether it is developing the base for businesses to operate, or whether it is assisting in terms of studies so businesses can develop business plans which they can then commercialize and create regional economic development and jobs in their area.

The bottom line is that the bill would promote economic development, economic diversification and job creation in communities throughout northern Ontario. A FedNor agency will demand greater accountability and would be required to report to Parliament on a regular basis.

For all those reasons, I support my colleague in proposing Bill C-309. I know the Speaker made a ruling earlier, but I would hope that FedNor would come to pass as a true operational agency as we believe it should be.

[Greg Rickford, Conservative, Kenora, ON]

Mr. Speaker, I appreciate the opportunity to rise in the House today to speak to Bill C-309. This bill proposes, at a significant cost, to create a new federal agency to administer economic development programs exclusively to northern Ontario, which includes the great Kenora riding.

Bill C-309 proposes to duplicate what FedNor, part of Industry Canada, is already doing and doing quite well. Having seen first-hand over the years the benefits to the people of northern Ontario and to its communities and businesses, I recognize and appreciate that this organization has continued to grow and thrive under the Minister of Industry's leadership.

That is something that needs to be emphasized. The Government of Canada is working successfully with individuals, organizations and communities to promote and enhance economic development throughout northern Ontario. The northern Ontario development program and the community futures program are two major programs administered by FedNor under its mandate of regional economic development in northern Ontario.

New programs and measures as part of Canada's economic action plan will have a direct and positive impact on the economy of northern Ontario. FedNor will continue to work closely with communities and industry leaders to ensure that our efforts to meet the specific needs of northern Ontario are taken care of.

Today I would like to focus my remarks on the value of the community futures program administered by FedNor and its impact on northern Ontario. Across the country, the community futures program is delivered by the individual regional development agencies. In the Atlantic region, it is the Atlantic Canada Opportunities Agency. In Quebec, of course, it is the Economic Development Agency of Canada for the Regions of Quebec. In Ontario, and this is important, it is Industry Canada's FedNor, exclusively for northern Ontario. In the western region, it is a much bigger organization, Western Economic Diversification Canada.

In Ontario, community futures programs support 61 community futures development corporations, or CFDCs as they are otherwise known, serving all rural areas of the province. Twenty-four of these serve the needs of northern Ontario.

Community futures development corporations are incorporated, not-for-profit, community-based development organizations. What makes these organizations so effective is that the boards are composed of local volunteers who bring to the community futures development corporations their expertise in a variety of sectors and their intimate knowledge of the communities where they live and work.

Community futures development corporations are true grassroots organizations. Local needs, of course, are always best identified and dealt with locally by those living, working and raising families in the community. The community futures development corporations, or CFDCs, help their communities to grow, work towards economic sustainability, and achieve a brighter economic future, by offering a number of services.

These services include repayable loans to small and medium-sized businesses, business information and planning services, strategic community planning and socio-economic development, and support for community-based projects. This assistance has resulted in improved business practices, increased entrepreneurship, and new, viable business start-ups.

Mr. Speaker, listen to the enthusiasm for the program.

The CFDCs' services also help strengthen and expand existing businesses, leading to further job creation. The CFDCs also help to build community capacity for socio-economic development, an important focus in rural and isolated communities. In 2007-08, community futures development corporations invested more than $50.6 million in over 1,100 northern and rural Ontario businesses effectively and efficiently.

These investments, in turn, helped to leverage a further $86 million in investments from other sources. As a result, 8,800 jobs were created or maintained, and thousands of businesses were started or expanded.

It is quieter now, Mr. Speaker. These are impressive results. They are just as impressive as the vision of community futures development corporations from across northern Ontario, which have formed investment pools to promote larger economic development initiatives.

Operated independently in the northeast and the northwest, these collaborative investment pools allow members of CFDCs to offer loans of up to $500,000 to support worthwhile local projects.

The CFDCs' investments are contributing to a regional economy where businesses can grow and people can prosper.

Here is an example that illustrates the important role of economic development performed by the community futures program and FedNor's northern Ontario development program.

In 2002 both FedNor and the South Temiscaming CFDC saw the economic development potential being offered by a small regional food festival, la Foire gourmande. Recognizing that this festival provides an excellent showcase for the offerings of agri-food producers from across the Temiscaming region, FedNor and the local CFDC provided la Foire gourmande with support to expand.

The result is that in 2007 a record 35,000 food enthusiasts from across Ontario, Quebec and as far away as the east coast descended on la Foire gourmande, making it northern Ontario's gastronomic event of the year. Each summer regional farmers, food producers and area restaurant and hotel operators have seen a tremendous boost to their bottom line.

The success of this project and many others can be attributed to the role that FedNor, the regional economic development organization for northern Ontario, plays in supporting the growth and prosperity of communities and businesses in northern Ontario.

FedNor administers various programs, including the northern Ontario development program, the community futures program, the eastern Ontario development program, and other Government of Canada initiatives.

Our government has positioned FedNor well to implement our economic action plan. It is an economic action plan that will strengthen northern Ontario communities, and in fact already has and will continue to, while making investments to promote long-term growth.

FedNor's enhanced budget, including the portion of the community adjustment fund for northern Ontario communities, has already had an immediate impact on the lives of northern Ontario residents.

FedNor's effectiveness as the regional and community development organization for northern Ontario has remained constant, even as it has grown to deliver more programming and special funding initiatives over the years.

It will continue to be an effective regional economic development organization as it works with northern Ontario communities and businesses to help protect the jobs of today and create the jobs of tomorrow.

We need only speak to mayors, community leaders and other stakeholders in northern Ontario for confirmation. They will tell us that FedNor support has been there for northern Ontarians throughout the years and that it is working very well in its current form. It will continue to do so.

One of the issues related to Bill C-309 is the suggestion that regional development can only be properly delivered through an agency.

For nearly 20 years now, FedNor has proven that the form is not important; the strategies and the design of the programs meeting the needs of the communities and businesses are what is important.

There is also the perception that a full-fledged agency would have superior status instead of being located within Industry Canada, that there is a danger that FedNor could be shut down tomorrow, and that the program is not safe because it is not an agency. Nothing could be further from the truth.

This government was the first to provide FedNor's northern Ontario development program, thanks in large part to Leo Bernier, with guaranteed base funding for a five year period. No other government had previously put the northern Ontario development program on such a solid footing.

FedNor can deliver a number of Government of Canada initiatives designed to target a specific need, and at present, it is well positioned to do so.

FedNor is a flexible organization that has administered focused initiatives, including the softwood industry community economic adjustment initiative and funding for the economic development of official language minority communities in Ontario. It will continue to deliver portions of the community adjustment fund in northern Ontario.

As I said earlier, these added responsibilities do not reduce FedNor's northern Ontario specific budget or detract at all from its focus on the north. To the contrary, what they will do is allow FedNor to grow as needed, depending on the Government of Canada's program needs, in its rightful place in Industry Canada.

This ensures that when the government needs to deliver new programming, it will do so in an efficient and cost effective manner using the tried and true vehicle we know and love as FedNor. My colleagues and I are confident that when we need to call on FedNor in these instances, it will deliver.

In short, FedNor's location within Industry Canada is beneficial to all, but especially to the communities and businesses that need it and depend on its services, like those in the great riding of Kenora.

[Alexandra Mendes, Liberal, Brossard—La Prairie, QC]

Mr. Speaker, I am very pleased to speak today to Bill C-309, which was introduced by my colleague, the member for Nipissing—Timiskaming. It is a bill of great importance to me, as the Opposition critic for the Economic Development Agency of Canada for the Regions of Quebec. I find it most curious, however, that the two Conservative members from northern Ontario did not deem it worthwhile to speak on this bill.

Regional development is a key factor in the growth, development and stability of our country. We know that, geographically speaking, Canada is the second largest country in the world. Its sheer size brings with it challenges that we must face in order to provide each region, each corner of the country, and each individual, with suitable opportunities and tools for success and prosperity. That is why regional development is so extremely important. Quebec's needs are different from those of Atlantic Canada, and from those of western Canada. Similarly, northern Ontario has its own challenges.

Regional development is a tool that the government can utilize to enter these regions of our country and provide funding opportunities geared for these specific geographical areas.

Regional development is much more focused on better understanding what is happening on the ground, and because it is geared to smaller regions, it is able to address very specific needs. It has also proven to be very resourceful in providing program options that are specifically geared to changing circumstances throughout the country.

I must say, given the numerous advantages to regional development, on which I could elaborate here, it is shocking that many hon. members, even certain whole parties, are not in favour of regional development agencies. They do not understand the value of such agencies and unfortunately do not think any further than the political interests of their own party, rather than what is best for our country.

I can stand here and say great things about regional development and how it is so important to our country, but I think it is important to focus on the substance of Bill C-309 and talk about what it actually proposes and what is asked by this legislation.

The bill wants to change FedNor from a program under Industry Canada and turn it into a federal development agency. What separates FedNor from its counterparts is that each of the agencies has an act of Parliament establishing it as a separate entity and outlining its mandated powers, while FedNor does not. This legislation means that the federal government requires the consent of Parliament to change or alter the agency's powers and mandate.

There are already three regional development agencies in place: the Economic Development Agency of Canada for the Regions of Quebec, Western Economic Diversification Canada, and the Atlantic Canada Opportunities Agency. Two more were announced in the 2009 budget: the Southern Ontario Development Agency, and a new regional economic development agency for the north. Each region of the country, with the exception of northern Ontario, will have its regional development agency.

In its last budget, the government acknowledged that it had some degree of interest in regional development agencies by establishing two others. It missed the opportunity, however, to add FedNor to the list of its new agencies. If we look at a map of Canada, we see that northern Ontario—that is regions like Sudbury, Sault Sainte-Marie, Timmins and so on—seems to have been totally forgotten as far as any commitment by this government to provide sufficient long-term assistance for regional development goes.

Members opposite have provided many different reasons as to why FedNor should not be an agency. Even the member for Parry Sound—Muskoka comes out and says it is going to cost too much, will have too much administration, and we will lose jobs in northern Ontario if FedNor is an agency.

I have to ask my hon. colleague across the way where he gets his numbers. Where does he get this information? I thought the job of the member for Parry Sound—Muskoka was to help promote northern Ontario, not to alienate it from the rest of Canada. On the one hand he says it is going to cost too much, and then on the other hand he decides to invest in two brand new agencies. That means starting from scratch, with new infrastructure such as building space, equipment and staff, and the list goes on. Just to get these two new agencies up and running is going to take time, and with this government it will probably take a lot of time.

Unfortunately, time is not on our side just now. People need funds now. Regional development is more important than ever. Organizations, municipalities, not-for-profit organizations, all are trying to get government assistance in order to survive this economic crisis. I am very pleased that the government has seen the need to establish two additional agencies, but we need results right away.

FedNor is already in place, and it is working. It already has permanent offices in all of northern Ontario. FedNor has competent staff with the proper training already out there on the front line, and already aware of what northern Ontario communities need and what challenges they face. Infrastructure is already in place, the program has been operational for some time, and results have been achieved. What we are asking for now is that it be given some power. The government ought to make FedNor into an agency and show the people of northern Ontario and those in other regions of Canada that the regional development agencies in the different regions of the country can help us get through the current economic crisis.

The bill is about more than just turning FedNor into an agency. It is an opportunity for the government to show leadership, to show commitment, to show the importance of regional fairness. The bill goes far beyond the words written on paper. The government, since being elected, has slowly been slashing away at the budgets of all the regional development agencies. However, circumstances that no one saw coming, especially the Conservative government, have to come to light and have changed the playing field.

A global economic crisis was needed for the government to realize the importance of these agencies as a vehicle to get the money out to the people who need it. The government has realized the importance of regional development agencies, and that is why the debate on Bill C-309 is so timely.

Now is not the time to play at one-upmanship. The time for criticism and personal attacks focused on certain things that have been said is long gone. We need to focus on what has to be done to help Canadians in all regions. Regional development spending has to be targeted to promote regional equity, to encourage job creation, and to stimulate local economies, instead of going to favourite projects in order to achieve political gain in Conservative ridings.

This is an opportunity for the House to show its commitment to regional development and regional equity, along with its determination to help Canadians. Bill C-309 must be passed, and regional development agencies must be established from one side of the country to the other, in order to ensure that all regions benefit from responsible and properly targeted spending.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I am glad to add my voice to the debate tonight.

I would like to acknowledge the member for Nipissing—Timiskaming for introducing Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario.

I would thank the member, but I must remind the House that his party had ample time to implement what it is calling for today and chose not to do so. That is the curious case of the Liberal Party. It says in opposition what it dares not do in power. It is entirely predictable really, but it is also a bit sad. We do not know which version to believe, which version to take at face value.

On this issue, we seem to view things in a similar light, and I would like to think the Liberals believe what they say. What I would also like to think is the Liberals will act on their beliefs. I would like to think it, but sadly, history does not back this up.

Recent parliamentary history is full to brimming with tales of Liberal about-face manoeuvres. Issue after issue they have turned coat and run from them. We have come to expect it. We know they like to sound like New Democrats for public consumption and then act like a backroom, Bay Street, old boys' club, charter members when the doors are closed and the real decisions are made.

We know we cannot count on the Conservatives to support a stand-alone agency from FedNor. That may partially explain the terrible showing they had in northern Ontario in the last federal election. The Conservatives see FedNor as nothing more than an adjunct office for the ministry of industry. They have consistently rebuked calls to have FedNor made into a stand-alone agency.

That pretty much leaves New Democrats to fight for this change. We have the courage of our convictions and remain steadfast in our beliefs. New Democrats see that northern Ontario is a unique region that presents unique economic challenges and requires a stand-alone agency to be able to deliver concrete strategies that will allow this region to bloom.

Northern Ontario is rich in resources. Among many other things, we are miners and foresters, mill workers and farmers. There is a strong tradition of entrepreneurialism that makes for a vibrant society. This needs to be encouraged further. We should be doing all we can to help. We should be scouring the region for every opportunity to grow the economy even more. An independent FedNor would go a long way to helping with this.

If people felt that FedNor was a responsive agency that was in place to help northern Ontario develop opportunities, there would be a stampede to take them up on that. Instead we have an ineffective agency that is defined more by what it is not and those who feel left behind, out in the cold and on their own.

Earlier in this debate, we heard from my colleague, the member for Nickel Belt. He had a laundry list of FedNor failures, of opportunities lost or in danger of being lost. Why? Is it because there is not the political will on the other side of the House to help this region? Is it because it is not sexy enough? Is it because there are relatively few seats for the amount of work needed to really hear the residents of northern Ontario? Is it because those members see the north only as a place from where raw resources come? I would really like to know because my constituents will tell us that often it is the way we feel like we are being viewed.

My colleague from Nickel Belt rightfully pointed out that FedNor must be able to adapt to the changing economy and ensure the economic prosperity of the workers of northern Ontario and their families. Its mandate must be drawn up at the local level by the people who live in the region, not by some faceless bureaucrat in the Ottawa offices of Industry Canada.

I would like to address a second point and give an example of the inability of the agency to understand the true nature of northern Ontario.

In northern Ontario a lot of our buildings are multi-purpose structures. Many of these buildings have health care components to them. It could be a clinic or a public health office. I want to make it clear that we are not talking about hospitals here. The problem is because of these health care components in these multi-purpose buildings, everything else in that structure is automatically disqualified from FedNor funding, a classic example of the agency having no real understanding of the true nature of the region it is meant to serve.

If only that were all we had to say about the delivery of services from FedNor. I have seen first-hand how even approved projects take forever to negotiate. In Nairn Centre, a feasibility study for a project that will run water to Baldwin Township has finally been approved after a lengthy application process.

Long delays ignore the fact that smaller centres do not have the budgets to be able to employ an engineer. They bring in consultants. The consultants offer tenders for a project within a given timeframe. When a project incurs long delays, these tenders can expire. Ultimately, when the project is ready to proceed, there may be no engineering consultant in place and tenders need to be resubmitted. The cost can be thrown out of whack if fees increase over these long periods.

I have seen how FedNor has given the town of Hearst the complete runaround in its attempt to help with a proposal to create a green technology centre. It told the town that it should repurpose the initial application and make it a business centre as opposed to the tourist centre that was originally envisioned. Hearst took that advice and re-applied. When it heard back from FedNor next, it was to say the application was not appropriate for FedNor and that it should submit it somewhere else. What a shame.

It makes people shake their heads. It makes them wonder if FedNor is in place to make these small towns burn through all their resources on proposals.

I know that FedNor is not working as well as it could or should. It is a small cog in a larger department and is treated like a poor cousin, just as northern Ontario is often treated. The bill would go a long way to rectifying some of the problems we see with FedNor today. By making it a stand-alone agency, it could be more responsive and flexible.

This is repurposed legislation that was originally drafted by the member for Sault Ste. Marie. I would like to salute him for his tireless work over the years on behalf of the residents of northern Ontario. His vision for FedNor is one to which New Democrats will honour and remain committed. When we make it to that side of the House, we will not forget our commitment.

As we can see, a stand-alone FedNor agency for northern Ontario would be the best way to go. Many of my communities have indicated the need to ensure we have a proper FedNor program in place. They are struggling right now, given the fact that northern Ontario has been hit so hard with job losses.

I encourage the member for Nipissing—Timiskaming to ensure that Liberals will be supportive of this bill. I know they have introduced it, but we need to ensure they will save face and ensure it gets put in place.

Over and over again, my communities have indicated the need for a stronger FedNor program and to ensure it is stand-alone.

[Rick Dykstra, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, I have been waiting patiently, but certainly looking forward to concluding my remarks on Bill C-309, which proposes, at a significant cost to the taxpayer, to create a new federal agency, with its own deputy minister and bureaucracy, to administer economic development programs exclusively to northern Ontario.

If we are to make these kind of expenditures, I think it should be on the stimulus package and the efforts that have gone forward in this budget to help Canadians versus to build a larger bureaucracy.

Nonetheless, to summarize, in addition to some of the initiatives that I had mentioned previously, the FedNor organization today administers two very important programs that directly benefit northern Ontario: the northern Ontario development program, which is the program that represents the organization's original mandate to serve these areas; as well as the community futures program. These programs serve as a foundation of FedNor's holistic and highly successful approach to community economic development. Unfortunately, the organization's evolution, which I have tried to capture in my comments, has led to confusion about FedNor's role and responsibilities.

Please allow me to clarify.

Because of its original mandate to serve northern Ontario exclusively, some have been led to believe that FedNor funding aimed at northern Ontario is somehow flowing south. Nothing could be further from the truth.

What is important to understand is that what used to be referred to as the FedNor program has now become the northern Ontario development program. Through this program, FedNor, the organization itself, funds economic developments exclusively in northern Ontario. Even though FedNor has grown and some programs have involved delivering provide-wide funding, each of these programs, including the northern Ontario development program, has its own distinct budget.

In fact, the northern Ontario development program and its budget has steadily increased over the years. Today, it is much larger than it was when FedNor started assuming responsibility for the other two programs. This means that funds destined for northern Ontario are not flowing south, contrary to what is being claimed by some members in opposition.

Let me be clear. Even though the organization has received increased responsibilities over the years, these have not detracted from FedNor's focus on northern Ontario. Bill C-309, in essence, aims to create an agency to do what FedNor is doing today through its northern Ontario development program. However, as it stands, the bill would effectively turn back the clock on the progress made by FedNor. The bill, as written, would remove the flexibility that has helped make FedNor so valuable to the people it serves.

Recently the Government of Canada announced Canada's economic action plan, which will provide much needed support for businesses, industry and all Canadians during economic slowdown. As part of that plan, FedNor will be administering northern Ontario's share of the $1 billion, over two years, allocated to the new nationwide community adjustment fund. FedNor's flexibility to deliver this type of programming is what makes the organization so effective.

I should also note that delivering additional programs like the community futures program and the community adjustment fund actually creates jobs in northern Ontario. By delivering these initiatives through an established organization like FedNor, instead of creating new layers of bureaucracy, the Government of Canada and all citizens benefit from important cost savings.

The clients of the community futures program and other FedNor-delivered initiatives also benefit by drawing on FedNor's substantial program delivery expertise and recognized sound management practices. The potential severing of the community futures program, which supports 24 community futures organizations across northern Ontario, would have a particularly negative impact on northern residents. FedNor has established long-term relationships with hundreds of community futures staff and volunteers who serve on these boards. These relationships have been built over many years and have created strong bonds between the federal government and community stakeholders.

Let me illustrate this by making a point. At last year's Ontario Association Community Futures Development Corporations annual conference, prior to the minister's keynote address, the board chair told the 250 delegates in the room that, “Not only does FedNor enable access to the funding which fuels the efforts of our respective organizations, but it's the ongoing management of the program and the advice they give us combine to give us a serious strategic advantage”.

In short, Bill C-309 aims to create a new entity to what FedNor already does, through the northern Ontario development program, yet it would limit the capacity of FedNor to contribute to other economic development initiatives in northern and rural Ontario.