Evidence of meeting #33 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was alberta.
A video is available from Parliament.
7:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Thank you, ladies and gents, for being here this evening. The last time I heard a commentary on Prince Edward Island was when the former premier of P.E.I., Robert Ghiz, came to Toronto to give a conference update on the economy and to update our team on how P.E.I. was performing, so it's great to get another update.
You mentioned a $350-million loan portfolio. Can you comment on how the loan portfolio and your investments are performing?
7:20 p.m.
Vice-President, Prince Edward Island, Atlantic Canada Opportunities Agency
The nature of our work is we take on risks that other lenders of capital don't, so we do have some business failure. About 4% to 5% of our annual portfolio goes into default, so relatively speaking, that's a manageable amount of risk.
Our programming parameters and the expertise of our account managers make for very diligent monitoring of projects not just after they have been completed but until the loan repayment has been fully made, and we have a team of folks dedicated to doing just that.
7:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
I have two separate questions.
First, how is the collaboration—I was going to ask the Quebec folks before you—of say BDC or EDC within the organization and with regard to P.E.I.?
Second, with tourism being so important for P.E.I. in relation to the percentage of GDP, how do you find the labour issue because there is, obviously, a seasonality with much of the industry in P.E.I. be it lobster, mussels, or tourism, but with tourism specifically, how is the labour issue fitting in, and how are you dealing with that?
7:20 p.m.
Vice-President, Prince Edward Island, Atlantic Canada Opportunities Agency
To your first question around engagement with BDC and EDC, they're two organizations that are working in our province. In EDC's case, there's no office established there yet, but BDC has a presence. They're working with our firms in Prince Edward Island, and we're collaborating with them on an ongoing basis.
I think the accelerated growth initiative that Minister Bains announced will compel us to work closer together on real-time projects, and I think that's going to be a very positive development.
With respect to your question around labour force availability for the tourism sector, you're quite right, it is a challenge. Unfortunately, tourism's high season is at the same time when there's a need for farm labourers and fish plant workers as well, so there's a quick depletion of that labour force.
We work with the Tourism Industry Association around programs that support labour market development. I think, increasingly, what's going to be important there is to make the firms more profitable so that they can pay higher wages to extend the season so that it provides a longer track of employment for potential employees, but there is a significant challenge in that sector and those other primary sectors that I mentioned.
7:25 p.m.
Liberal
7:25 p.m.
Liberal
The Chair Liberal Wayne Easter
I have one other question. I want to come back to the question of productivity, and I would ask you this. What are the obstacles for ACOA to basically attack the issue of productivity and increase it? Is it training? Is it programming? What is it? If we continue to fall behind on productivity, it's not a good thing, so that is an area we have to tackle. I would say don't be shy about it if there needs to be more programming from the federal government. That's what we're going to recommend in some areas, no doubt. Does ACOA have a strategy in Prince Edward Island at least to deal with that serious issue of productivity, and if you do, how are you going to get there?
7:25 p.m.
Vice-President, Prince Edward Island, Atlantic Canada Opportunities Agency
We've taken that on. The provincial government is a willing partner in that respect, Chair. Since 2011, we've tripled our investment in that area because it's a key priority.
Part of the challenge there, quite frankly, is awareness around some of the SMEs. Some of the small-business people are consumed by the everyday operations of their operation. We've tried to provide support for them to just step back and take a look at how they're doing business and how they can adjust their processes to become more productive. It's time consuming, and it needs investment.
I think a unique challenge for Prince Edward Island and some other corners in Atlantic Canada is that those primary industries, fish processing, agriculture, and agrifood, haven't gotten out of the commodity-based economy or they did some time ago, and there needs to be significant retooling of their plants. We've done some of that work and we've been one investor in particular projects. The Province of Prince Edward Island has as well. Where we have the opportunity to do those, I think they're making a measurable, meaningful impact on those firms. We could always do more of that, and we're out there trying to engage with those companies that require it.
7:25 p.m.
Liberal
7:25 p.m.
Vice-President, Prince Edward Island, Atlantic Canada Opportunities Agency
We did.
7:25 p.m.
Liberal
The Chair Liberal Wayne Easter
Okay. I'd just like to inform the committee that Prince Edward Island now has the record for the longest lobster roll in the globe. I don't know whether it's a result of ACOA investments or not.
With that, thank you, Mr. Dorsey and Ms. Beairsto.
We are adjourned until 3:30 tomorrow.