Mr. Speaker, I would like to pick up on some of the comments that were expressed by my colleague regarding the reduction of red tape and how this particular initiative either feeds into or from the government's propensity to institute red tape. Specifically, I want to talk about the impact this legislation may have on aboriginal businesses.
Bill C-27 would force aboriginal businesses on first nations to disclose financial information related to those businesses to the public, including to the competitors of those aboriginal businesses. I am not simply talking about remuneration paid for out of federal supply, but all activities of those businesses would have to be reported to the public. That is a burden that does not exist for other businesses.
This measure could potentially make band-owned businesses extremely vulnerable to predatory practices and put them at an obvious competitive disadvantage. Non-aboriginal private corporations, for example, are not forced to publicly disclose consolidated financial statements. However, aboriginal businesses, whether attached to the federal government or not, would. Any band-owned business would have to disclose information that would-be or potential competitors in the private sector will not.
It is very interesting, not only because it would be extremely inconsistent with the principle of first nation self-governance, but it is also obviously very inconsistent with the government's much ballooned and ballyhooed referral to the Red Tape Reduction Commission.
At a cost of several million dollars, the Conservative government instituted a Red Tape Reduction Commission to travel all over the country conducting meetings and hearings as to how exactly the federal government could reduce the paper burden on businesses. I guess it did not conduct very many hearings with aboriginal businesses. If it did, it would have a serious problem with this legislation.
I will read directly from the report that the member for Beauce, the Minister of State for Small Business and Tourism, produced. It reads:
...the Commission's first task was to “identify irritants to business that stem from federal regulatory requirements and review how those requirements are administered in order to reduce the compliance burden on businesses, especially small businesses.”
At a cost of several million dollars, this commission had that task in mind.
Somebody was asleep on the front bench on this proposed legislation which would increase the regulatory burden on aboriginal business. In order to allow this bill to proceed without actually considering the impact on aboriginal business, somebody was not taking care of their fiduciary responsibilities to speak up for aboriginal people.
Where was the member for Beauce, who is such a strong believer, at least in theory, of anti-regulation, when this was going through?
The compliance burden on small business would be huge. We have already heard in the chamber that there are already 60,000 reports that must be filed with Aboriginal Affairs and Northern Development Canada on an annual basis. Can members imagine the compliance burden that would be placed on aboriginal businesses, a burden that does not exist on any other business? Can members imagine the regulatory red tape that would be imposed upon that important section of our economy, our aboriginal businesses, that does not apply anywhere else?
Let me put this into perspective. Federal crown corporations on lists specifically included in the Access to Information Act do not have to comply. They are not under the jurisdiction of the Access to Information Act. If a band-owned business, however, wants to establish itself and promote the economic best interests of the band, it has to do something a federal crown corporation does not have to do.
During the course of its multi-million dollar discussions, the Red Tape Reduction Commission—which I guess might have been actually for the purpose of creating more red tape instead of reducing it, but the actual title of the commission was the “Red Tape Reduction Commission”, so I guess that would not necessarily apply—gave specific direction to the Government of Canada. It gave specific recommendations to individual government departments. It even made recommendations to Aboriginal Affairs and Northern Development Canada as to how it could participate in reducing the red tape burden.
Do members know what it recommended to the minister and to the department? It made two main suggestions specifically for this department. One was this:
To improve service standards and streamline program requirements, we recommend that Aboriginal Affairs and Northern Development Canada establish streamlined application and review processes to support small business growth and development.
I do not think anywhere did the red tape commission say, “By the way, we should also impose the equivalent to the Access to Information Act on every aboriginal band-owned business”. They said, quite frankly, the opposite.
It further recommended:
To facilitate service standard improvements, streamlined processes and the integration of Aboriginal Affairs and Northern Development Canada programs with those of other federal regulators, we recommend that the department develop a simplified approach for land processes and economic development projects.
That was not a recommendation for an expanded approach, not one for the regulatory burden to be exponentially increased to the point that every minute of every day that the band-owned business operates, its lead managers must be filing compliance reports. That was not the recommendation of the Red Tape Reduction Commission.
However, if we look at this, that is what the government is suggesting.
Now, the MP for Beauce went even further. In his final recommendation report, he said again and again,
...to deal with the long-term aspect of regulatory growth
—which he viewed as a serious negative—
we are recommending that a substantial part of the bonuses of senior public servants be directly related to their success
—or, conversely, their failure—
in implementing the decisions that ministers make on the One-for-One Rule.
What is the one-for-one rule? I will tell members what the one-for-one rule is. It is a commitment that the Conservatives made in their 2006 election platform, just above their commitment to make the Parliamentary Budget Officer an independent officer who could get whatever material he or she needed in order to perform his or her function as the Parliamentary Budget Officer.
In the Conservative platform for election in 2006, entitled “Here for Canada”—I guess not all Canadians, just some Canadians—the would-be Prime Minister's low-tax plan for jobs and economic growth promised to implement a new standard for regulation:
We will legislate a One-for-One Rule—every time the government proposes a new regulation, it must eliminate an existing one.
If we look at what is happening at Aboriginal Affairs and Northern Development Canada, we see there are a lot of new regulations coming into play. There do not seem to be very many reductions. If we are to judge this based on bonuses paid to senior bureaucrats as to whether they are complying with the one-for-one rule, the government just saved an awful lot of money because there will not be one dime in bonus paid out to the minister's senior mandarins, not a dime. I guess the government is saving a few bucks there, is it not, unless of course it is going to circumvent that rule and pay out bonuses without any compliance or consideration of its own rules.
The government would never do that, though, would it? It would never actually ignore its own rules. Okay, it probably will. That is what is happening right now. We have a government that is absolutely intent on saying to everybody else, “Do as we say, but just do not do as we do”, because that is exactly what is being asked. People are being told, “Do as we say, but not as we do”.
There was also some discussion about the Auditor General and whether there should be a first nations auditor general, a proposal that received widespread support, not universal but widespread support. It was a key proposal within the Kelowna accord. When the government was proposing its Red Tape Reduction Commission, except for aboriginal communities, it suggested in its report that the Office of the Auditor General of Canada should be mandated with reviewing and reporting on the government's progress. The Auditor General should be mandated to review the government's progress in reducing regulatory administrative burden through its one-for-one rule aimed at cutting costs to businesses, as well as implementing its overall red tape reduction plan.
That was a suggestion of the government. It has never actually done it or tasked the Auditor General to do that, even though there were recent amendments to the Auditor General Act. I am wondering, since it does indeed believe that the Auditor General should be involved in red tape reduction, whether it would allow the Auditor General to come in and see whether Bill C-27 complies with the red tape reduction recommendations, as adopted by the government. Will it allow the Auditor General of Canada to do an assessment before or during second reading of whether the government is consistent with its red tape reduction promises and do so in a very public way? Will it have the Auditor General do an assessment as to whether Bill C-27 is consistent with that? Is it a do as I say government and not a do as I do government? There is one way to find out, is there not?
This is very serious. It is very serious because we are actually imposing a higher standard on a core of small businesses, band-owned aboriginal businesses. Not only would the government not impose it on other sectors of the economy, other types of privately held non-aboriginal owned businesses, but it is a standard that the government will not even impose upon itself for its federal crown corporations. Why? Because if we suggest that certain federal crown corporations should be liable and held accountable under the Access to Information Act, the very first thing the ministers responsible will say is that it could put the crown corporation in jeopardy and expose the federal crown corporation, which benefits from federal tax dollars and federal oversight, to potential competitive impacts.
The competitors of the federal crown corporation might actually know what the crown corporation was doing, and that could jeopardize the revenue stream of that federal crown corporation.
No problem, though, for band-owned aboriginal businesses. Their competitors will have a great way to find out about what they are up to and where they are going. They would just have to apply under Bill C-27. The provisions of Bill C-27 would lay their business dealings out bare. That is reason enough, if for nothing else, to want to have this bill go before committee to have witnesses come forward to establish what the impact would be, because there has been no consultation whatsoever.
There has been no consultation with the aboriginal community on this issue, because if there were, there would be a lot of senior mandarins, a lot of highly-paid executives within the Department of Aboriginal Affairs and Northern Development, who would not be getting a bonus for an awfully long time. If they tie a substantial part of the bonuses paid to senior public servants directly to their success or failure in implementing the decisions that ministers make on the one-for-one rule, the government just saved an awful lot of money. There will not be a darn bonus paid out in Aboriginal Affairs and Northern Development Canada for a long, long time if Bill C-27 gets passed.
That is a relatively snide way to tell the government to think through what it is doing. There are checks and balances that do exist and there are checks and balances that can be improved. There is no doubt about it.
First nations are embracing those changes. There is not always universal support. I do not think anyone should expect or assume that there will be. However, there is a solid core of support within our first nations. They have nothing to hide. They are prepared to engage in full accountability. They want to be participants. They do not want to be spoken to and they do not want to be spoken at; they want to be spoken with.
In this chamber right now, instead of talking to first nations, we are simply talking about them. Why did the government not just take the time to talk with first nations, to realize the consequences and the legal ramifications of its actions.
Some might consider it another snide way for the government to play it tough. Sometimes tough actions are required, obviously, but sometimes toughness is also the sign of a bully, and bullies need to understand that what they say and do can hurt. It can hurt self-esteem and it can also hurt the economic well-being of first nations and aboriginal businesses owned by bands.
The government is sticking its nose in a place where it really does not belong. Tighter accountability rules are always something we strive for. The aboriginal community is no stranger to that. It is not a reluctant witness to that. It is creating its own higher accountability standard without the Big Brother approach from the Government of Canada. It is acting on its own behalf and increasing its accountability standards.
The government here seems to want to take a parochial approach, saying that it is “us” and them”, and that it is going to tell “them” how to run their businesses.
Why? The member for Beauce, the junior minister, spent millions of dollars on a Red Tape Reduction Commission. Why did the Minister of Aboriginal Affairs and Northern Development sit in cabinet and allow Bill C-27 to pass through cabinet without any examination as to the consequence to this important community?