Government Operations Committee on Dec. 1st, 2011

[Richard Dicerni]

As for the digital strategy, I think that the interest of Industry Canada is obvious. The overall perspective will help increase the country's competitiveness. We work very closely with Human Resources and Skills Development Canada in this area.

However, there is another area where we are in a more central position. It is implemented through the science and engineering grants council. It has a part devoted to information technology, which is one of its priority sectors. This is a part of the Industry Canada portfolio.

[Denis Blanchette, NDP, Louis-Hébert, QC]

I see.

As you know, education, in the broad meaning of the term, is a provincial responsibility. Have you suggested to the provincial ministries of education that you coordinate your activities to establish an even more effective strategy?

[Richard Dicerni]

We discussed that question when we met with the representatives of the provinces. We held a meeting with the ministers and another one with the deputy ministers. The purpose was to ask my provincial counterparts to consult with their colleagues in the various education ministries or the departments responsible for post-secondary education. In my opinion, they are better equipped and much closer to the reality than us.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Have you spoken with your industry counterparts?

[Richard Dicerni]

From economic development.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Sometimes this can create some distortion.

[Richard Dicerni]

For some time, I was the deputy minister of education in Ontario for post-secondary and primary education. I know the limits. There are areas where the federal government should not go.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Yes, I agree with you.

I am coming back to the computerization of SMEs. You have funds to spend on that and this is a sector where our SMEs are not up to date. I would like you to tell me what strategy the department wants to use, based on the pilot project, to address the fact that SMEs are behind when it comes to e-commerce.

[Richard Dicerni]

The Business Development Bank of Canada is our main intervener in this area. I will tell you about two of their initiatives.

The first one, which is in progress now, consists of increasing the number of consultants-experts available in this sector. That way, when SMEs come to see them to apply for a loan or obtain management-related advice, the consultants will be able to help them since they will have the appropriate skills in this field. the Business Development Bank of Canada addresses three areas: venture capital, loans and consulting services.

Secondly, it established a special fund of $200 million intended to encourage SMEs to borrow in order to increase their capacities.

Thirdly, it offers internal training to many of the people responsible for loans in order to educate them regarding the importance of information technology. When entrepreneurs come to see them to ask for help, the bank's staff can educate them regarding the importance of the Internet and the ways it can help them grow their companies.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Have any targets been established in terms of the computerization of SMEs and their Web presence? Was there any harmonization with the provinces, which are also interested in this aspect?

[Richard Dicerni]

I referred to a meeting I attended yesterday with other deputy ministers. We agreed to ask the BDC to present what it has done at the next federal-provincial meeting in order to inform all the provincial representatives.

[The Chair, NDP, Pat Martin]

Thank you, Mr. Dicerni.

Thank you, Mr. Blanchette.

Our last questioner in this panel will be Bernard Trottier. Bernard, go ahead for five minutes, please.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Thank you, Mr. Chairman, and I want to salute your efforts during the month of November. You're looking a couple of years younger this morning.

Thank you to the people from the Ministry of Industry for coming in today and answering some of our questions.

I want to ask you about the knowledge infrastructure program. It's had a big impact. It was a $2 billion program when it was originally announced. It had big impacts in my riding of Etobicoke--Lakeshore. Some investments were made at Humber College, for example, and at the Toronto Reference Library, which is used across the city of Toronto.

Could you just describe the knowledge infrastructure program? I noticed some extra supplementary estimates related to the program. How much of that was construction, versus investments in information technology? The rationale for some of the supplementary estimates was to take advantage of an extra construction project. How much of this was bricks and mortar construction and getting construction people to work as part of the stimulus program, versus IT types of investments or other types of investments?

[Richard Dicerni]

I have a couple of points.

First, you referenced getting more information about the knowledge infrastructure program. This is a bit unusual, but I would recommend to you the recent Auditor General's report, which spoke eloquently about how this program was managed and about what it achieved.

With regard to its substance, some of it was bricks and mortar. Some built a new campus facility. Others were more specific; they built a new lab. Others enhanced the library. It covered a wide range of endeavours. And it benefited from the oversight provincial governments brought to it, because 98% of this program was done in partnership with provincial and territorial governments.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

In some cases it was municipal, I think. The Toronto Reference Library is an example.

[Richard Dicerni]

That may have been done by the folks you're going to talk to in perhaps three minutes.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

All right. It was a good project, either way.

[Richard Dicerni]

I just thought I'd cue the new folks.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

It's good that you can set up that team.

Are we going to end at 4:30, Mr. Chair, or are we going to go on for a couple more minutes?

[The Chair, NDP, Pat Martin]

Well, you have two and a half minutes left. You may as well conclude your five-minute turn.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Okay.

I noticed some line items in the supplementary estimates related to intellectual property. There's the Canadian Intellectual Property Office revolving fund. I also see “Reinvestment of royalties from intellectual property”. It has $3 million in authorities to date.

When you talk about intellectual property in these estimates, is it related to things like patents? Is this copyright? Is it industrial design? Intellectual property encompasses a lot of different things.

[Kelly Gillis]

This particular item is royalties we receive from a system for name searches within Corporations Canada called NUANS. For those particular royalties, based on the repayments we had from the year before, we get to re-spend them in this year, but we actually have to draw them down through supplementary estimates after proof of repayment. It's not related to the Canadian Intellectual Property Office. That's a separate spending authority.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

I see. That's reinvestment of royalties from intellectual property.

[Kelly Gillis]

Yes.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Okay, very good.

Is there anything in the Department of Industry that looks after copyright legislation? Is there anything in the supplementary estimates that deals with copyright?