It's a pleasure to speak with you here today.
This is something that has been close to me for quite some time. I've spent, really, my entire career in the information field, from the standpoint of an analyst seeking macro information to understand the top-down workings of the economy and society, creating micro information on the behaviours of individuals and businesses as they work through, and also, from a bottom-up perspective with CFIB, representing the interests of small-business owners who are looking for relevant information on how to bolster their chances of growth and success, and so on.
Incidentally, my first job after graduation in the early eighties was working for a third party database company reselling StatCan databases and other forms of databases. Part of my job was teaching people how to access this information and use it within their business context.
I also have a long history working with StatCan. I was part of their working group on small-area data in the early nineties, and that was how they could publish information right down to very specific areas geographically that would be useful for small businesses. I worked with them on small-business connectedness issues—that is, the people who were beginning to access the Internet, develop their own interconnected techniques, and so on. Again, it was a big issue back in the mid-nineties.
I've certainly lobbied government for decades to remove the paywall that StatCan had around CANSIM and many of the other databases and information products it had, especially where the marginal cost of providing that information had fallen to zero. The information was already there; therefore, there was very little cost to making it available to people, and we knew that our members were not using the information on a per-database or a per-data series point of view.
I was also very pleased in the past couple of years that StatCan has made this available now for free, and I'm sure I'd be very interested to see what their usage numbers have been as a result of that. I think there has probably been a tremendous increase in utilization of this important resource.
Partway through my discussions with them in the past, starting as an analyst looking at information about small firms, I really recommended that they start looking at getting information for small firms. They have a different set of needs that are out there. We're hoping that information can be available to them that makes the most sense for their particular context.
Most currently, I'm also a member of the business to business committee at the Marketing Research and Intelligence Association of Canada, working with them to develop products and services to help businesses understand other businesses. Not all firms deal in the consumer space, but they do need to understand not just their consumer marketplace but also the products, the businesses, their competitors, and so on.
My perspective on this issue is that Canada has long lagged behind other countries, particularly the U.S., in publishing free or low-cost information that could help in aiding businesses and their understanding of the economy. We've really raised here a couple of generations of business owners who have been, effectively, trained not to look for this kind of information. They've never known that it was available. They haven't worked it into their own business strategies and understandings and so on. It's going to take some time for them to realize.
There has been some progress in the past couple of years, and I'm happy to see that. But I think it's still taking time for that kind of realization to sink in. We're hoping that successive products and perhaps some third party businesses will better help to bring this information into the marketplace.
We certainly know that the cost puts custom data from private sources really out of the reach of small firms. Most of the custom business-to-business data services by the private industry are really working towards the big business sector, and small firms don't typically get that information. The information is costly to get. But you really don't understand its value. You can't judge its value until after you've acquired it and then tried it within your own business. That can be a long process, and it really provides a large wall in front of any firm that's looking for information to try to make the business better.
We also understand that the smaller the business, the less relevant that aggregate macro-data gets. It doesn't make sense for a small firm to understand more detailed information, say, on gross domestic product, aggregate employment levels by province, or whatever. The smaller the firm, the more details begin to matter, really granular information by very small sector, city, town, or neighbourhood, trying to understand their marketplace. Their focus tends to be on very limited geographic areas, and those are the kinds of data that would make most sense for small firms. Really, what they're looking for is information on their customers, products, and competitors.
In putting some notes together for this presentation, I've put a few thoughts into what the keys to success are in this. I've looked at data.gc.ca; I'm very happy to see that. I also see that the publishing dataset goals are helpful, but the value will come from how often they're used, and I'm hoping you'll be able to work through the monitoring of the usage of the access of this information as one of your metrics in this particular project.
Data that helps people or businesses link publicly available data with their own privately held information is also crucial. I think the geo-spatial information is going to be pretty important here. Boundary files are not generally available easily, depending on what kind of software you're using, of course. But we need to see publicly available geo-spatial boundary files, not just at the census metropolitan area, but at almost every level of geographic disaggregation, including federal ridings and definitely down to the city, town, and neighbourhood levels.
We also think forward-looking data is much more important than backward-looking data. History is important, but looking at much of the economy depends on identifying trends that deviate from history. That's where small firms are perhaps of real benefit to the economy; they identify these kinds of trends first. So if the information can be put up that.... It's hard to predict this, but that's really the kind of source information they're looking for, something that provides them with an insight that hasn't been available to others.
In terms of the emergence of information value adders—and this can be with many small firms as well—that provide the value-added information to these databases and then distribute to customers who they understand much better, I think the government can do a great deal in terms of getting the word out about this information and what's available. But getting it into the marketplace, especially the business marketplace, is going to need the help of some intermediaries. We think that encouraging them to take part and develop products along those lines is very helpful.
We've learned lessons in terms of how macro people look at the world and information versus how micro people look at it. A good example is an initiative by CFIB called Small Business Saturday. We asked our members if they wanted to offer particular deals or promotions in their businesses for a particular Saturday in October, and then we would publish that information on a website. Customers would be able to go to that website and search by neighbourhood or type of business what they're looking for. We structured it by industry type, and that was the way we always tended to look at the information. But what we learned very quickly was that customers tend not to look at it by industry. They're not trained to look at it by nix codes and so on. They look at things by product. They're interested in buying shoes or in looking for lawn mowers; they don't tend to look at it by type of store, but they really go right down to their need of what products they're looking for.
So that helped us in structuring information in the way that the consumer was most interested in receiving it.
Certainly quality also matters. CFIB has had some semi-bad experience with the federal riding and postal code data because there were numerous errors within that database that Statistics Canada provides. Therefore boundary files would be a welcome improvement on that. It would really help in dealing with those kinds of issues.
Also getting more to what CFIB is looking for, drawing more levels of government into this process would be very helpful. Standardization on governance and financial information is pretty critical. We've noted that the Alberta government did a major departure from standard budget accounting that makes it very difficult to look at their province's fiscal performance over a number of years and very difficult to compare with other provinces as a result. Municipalities are all over the map in the way that they present their financial information.
We also know that pre-built two-dimensional or three-dimensional tables don't always work terribly well with providing information. Therefore we think micro-data is the way to go as much as possible, as long as privacy and confidentiality is maintained within this sort of database. Micro-data allows the customer to be able to cut or aggregate information along the lines that they're really looking for.
We're also missing relevant data that would really assist policy-makers. Tax incidence studies are all but impossible because Statistics Canada just has been unable to clean their corporate dataset sufficiently to be able to get back other information. Property tax policy is a mess because of the lack of standardized information collected from the local levels.
So I think there's an awful lot of progress being made and we're very happy to see this initiative, but we also know that there's a great deal of opportunity for future work. We're happy to help out along those lines.
Thank you very much.