Evidence of meeting #27 for Procedure and House Affairs in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was prorogation.
A recording is available from Parliament.
Conservative
Liberal
Ryan Turnbull Liberal Whitby, ON
This really concerns me. Of course it's a part of election readiness, and we know that it's relevant, given the pandemic.
Conservative
Conservative
Karen Vecchio Conservative Elgin—Middlesex—London, ON
I recognize that we're talking about other things that we could be studying, but if we could get back to the motion, that would be great. It's a little on point, but he just seemed to be elaborating a little more than necessary.
Liberal
Ryan Turnbull Liberal Whitby, ON
I do think this is relevant because what I'm advocating for is an amendment to the motion. It would narrow the scope of the motion that was put forward, which would free up our time to focus on other items. It is therefore relevant to the argument I'm making. Again, there are much more important tasks here in my view, and I think many members, in the Liberal Party at least, would agree with me. They would be a much better use of our time and Canadians would appreciate our focusing on them.
Misinformation in elections and deliberate misinformation are issues that we all need to be concerned about, especially given the time we're living in, a time when people are consuming a lot more information online. I think there's a lot more partisanship and lots of polarization within our democratic society. That's deeply concerning to me, especially given what we saw happen during the election in the United States. I think we can all agree that it would be good for us to to address some of the root causes there and look at how we can avoid making some of the same mistakes that perhaps precipitated the insurrection in the United States.
I will leave it at that, on those points anyway. I have lots more to say, so I'll get back to the motion by Ms. Vecchio.
It has been said, which I need to say myself with conviction, that there was a motive, and the opposition is assuming that prorogation couldn't have happened for legitimate purposes. I find that so hard to believe because if a global pandemic is not a good reason for proroguing, what is a good reason? Honestly, I can't think of a bigger crisis and issue.
Stephen Harper and his government prorogued twice, once in 2008 and once in 2009, and cited the economic recession as their primary reason for proroguing. Certainly everyone suspected there were more partisan reasons and political reasons for doing this, but, legitimately, they cited that as their reason. Why, therefore, in a global pandemic of epic proportions, the biggest crisis in 100 years, can we not see a rational justification for proroguing Parliament?
I will go further in my remarks and say that there is no justification for prorogation that will satisfy the opposition parties because they are not interested in evidence, facts, data, arguments, reasons or reality. This is not about facts and getting to the truth. This is about pure partisanship, facts and reasonable arguments be damned. It seems the Conservatives have a tendency toward, and a growing fascination with, adopting views and positions that have no basis in evidence and reality.
If it's evidence you want, the committee has received a substantive report, which has been tabled, on the reasons for prorogation. It has heard from a selection of witnesses, and the majority of them were of the opposition's choosing. Our witness list had almost none. I don't think we even submitted any witnesses. The opposition parties are the ones that submitted the long list of witnesses they wanted to hear from, and many of them came forward and attended the committee. Members had ample opportunity to ask questions.
I've put forward a motion that allows a few more witnesses to be reinvited, which is a compromise, but there is still no movement. They want the Prime Minister. They have a vendetta against Justin Trudeau. This is not about anything other than a ploy to spin a story, get a headline and cause a small uptick in the polls. We know what this is about.
This is all at the expense of the Canadian public. The public is relying on us.
I shouldn't even be laughing because, in a way, it's just absurd that we're here and that I'm speaking to this.
Let me again represent my views on prorogation, which are supported by the evidence and facts. I have maintained and argued that the social and economic impacts of COVID-19 are deeper, more substantial and in fact many times greater and exponentially more severe—at least 10 times greater, according to many experts and our own chief statistician, on many of the indicators—than those of the 2008-09 recession.
Again, that recession was cited by Stephen Harper as the reason for two prorogations and, some would say, to avoid a confidence vote, and there are other reasons. I would just say that if those were good reasons for the Conservative Party back then, why is it so unbelievable to cite the same sorts of reasons for the most recent prorogation?
I think this is why, from my perspective, hearing from Deputy Prime Minister and Minister of Finance Chrystia Freeland would be beneficial, because who else can speak to the significance of the economic impact? Similarly, I thought that having the Minister of Diversity and Inclusion and Youth come to testify might help illuminate the many inequities that COVID-19 has laid bare. This makes sense. In fact, it's common sense, in my view, and if you were looking for the truth and looking for facts and information that are relevant, I think that would be more than acceptable to focus on.
Let us not forget that it was our government in the last Parliament that made the change to the Standing Orders that led to the submission of a report that provided a rationale for prorogation. For the first time ever in the history of our great country, we have a report tabled in the House of Commons and referred to this committee that we've all had a chance to review. Let that sink in for a minute, colleagues and Madam Chair. Never before has any prime minister or any government in Canada's history been required to provide a reason for proroguing Parliament. Never have they had to write and table a report. Never has PROC had to study such a matter. I think there have probably been some other studies that were decided on by the standing committee, but it was never required.
Mr. Blaikie has remarked several times that this would be precedent setting, and I think we've already set the precedent to a much higher standard and to a higher degree of transparency by having a report be something that's necessary, by following through on that and by even entertaining a study. We weren't required to have a study on prorogation just because a report was tabled. This committee chose to do that. We were willing partners in that pursuit. We voted to support that. We heard from witnesses, but now this is still not good enough. It's still not enough. Why? The opposition members didn't hear what they wanted to hear.
To be honest, I haven't even heard opposition members speak to the merits of the report that was tabled. If you were really concerned about that report being deficient in some way, you would be able to provide me with real reasons and arguments as to why it was deficient. Where is it deficient? It provides a great rationale that I think is very sensical and very much based on evidence and research. I think the opposition members have decided from day one what they want to get out of this and never for a second have they entertained any other possibility.
I have mountains of evidence to demonstrate that proroguing Parliament made sense; that it has led to a process of consultation and re-evaluation; that it was timed perfectly between the first and second waves and to reduce any losses in sitting days in the House of Commons; and, that the priorities and themes of the throne speech, the specifics of the fall economic statement and the budget all reflected what we heard from Canadians. It's responsive. It makes sense. It's backed by data and evidence. It's consistent with the report that was tabled and the testimony given by the government House leader.
What more does the opposition need or want? If this were about reason and evidence, this would have been over a long time ago.
The timing made sense. Between the first and second wave of COVID-19, we took some time after many months of an all-hands-on-deck, full-court-press agenda supporting Canadians. We were moving an agenda forward that supported Canadians. Everyone was working full steam ahead.
We took a hiatus, a time to reassess priorities, to reset the agenda. Did that not make sense, between the first and second wave? It seemed to make sense to me.
I think any Canadian listening in could understand that this government had been working around the clock to serve Canadians, getting supports and programs designed in weeks instead of years, and that it took some time to re-evaluate priorities [Technical difficulty—Editor] at a time when Parliament would normally not be sitting anyway, between the first and second wave of the pandemic. It just made sense.
Why can't the opposition compromise a little on their original motion?
Opposition parties act as though they haven't had a chance to study prorogation, but we've had numerous meetings on the topic. We've heard from the government House leader who was willing to attend and who answered our questions. We heard from multiple other witnesses who testified before this committee. It was fair and transparent. All members had a chance to ask questions. The opposition provided their lists of witnesses and they now have testimony from academics, procedural experts, historians, officials and the government House leader. We have material that could be used to write a report.
Some of the opinions shared by witnesses even favour the opposition's preferred interpretation. Why can't we move to writing a report? They already have some evidence or some opinion, I would say, that supports their narrative. What more do they need?
The opposition has also, over and over again, claimed that the throne speech had no substance, which I emphatically deny. I say that's false. They still won't listen or concede that the throne speech has substantive themes and very specific measures that reflect the needs of Canadians. It is in fact true that it outlines priorities that relate directly to the information gathered by the chief statistician of Canada and the extensive consultation that was done during the time that our government was prorogued.
To be clear, our caucus was not on vacation during the time of prorogation. We weren't twiddling our thumbs or sitting on our hands. There were many stakeholder consultations, constituent surveys, caucus consultations, meetings with opposition parties, departmental and interdepartmental discussions during that time, all of which helped to inform the throne speech. Again, these things led to themes that appeared in the throne speech that were new and the relevance of which was directly tied to the pandemic and its deep, far-reaching impacts and were evidence-based.
Notable examples include additional supports for small businesses: the wage subsidy, the commercial rent subsidy, the redesign and improvements to the Canada business credit availability program, and expansion of the CEBA. These are huge supports for small businesses. I've heard over and over again how these have literally saved very many of our small businesses from going under due to the effects of this pandemic and the public health restrictions that have been necessary to protect Canadians.
Our supports for workers, the wage subsidy, the Canada recovery benefit and the central reforms to EI were outlined in the throne speech. They were not in the previous throne speech. They were new initiatives that were a direct result of taking some time to reflect on what Canadians needed.
On supports for the hardest-hit industries, we know there's a long list of industries that have been hard hit: hospitality, tourism, retail, and cultural industries. The list goes on and on.
National standards for long-term care weren't in the original throne speech. That is something I've spoken to before. My colleague, Mr. Lauzon, is not here today, but he speaks very passionately and is the Parliamentary Secretary to the Minister of Seniors, and he has spoken to this as well.
Those national standards for long-term care were in the throne speech. They were a direct result of the consultation that was done. Many of my colleagues and I advocated for that national standard to be in the throne speech. We're quite happy to see that it got in there.
These are just a few examples, but I'm going to give you others as well.
No one can say that addressing systemic racism was not in the previous throne speech. There were numerous actions outlined. I'm very proud that it appeared in the throne speech after prorogation, that it was a direct result of realizing the inequities that many racialized Canadians and many others were experiencing due to the pandemic. It's not that they weren't experiencing those before. They, in fact, had been for generations, but the pandemic and its impacts laid it bare. It showed us and taught us all about how deep those inequities are, and how deep racial injustice is in our country.
That appeared in the throne speech. It wasn't there before. It's something I'm very proud of, and I take very seriously. It speaks to the responsiveness of a government that took the time to reflect, and ask what Canadians need us to be focusing on. How are our agenda and priorities shifting and changing?
Some of the things in there are already under way, which is incredible. I'm particularly passionate about the inclusive and diverse public procurement, which has been an area of passion for me for a long time. Seeing that in the throne speech was something I felt very proud of.
I was pleased to see that we were taking action on online hate, making sure we have disaggregated data, so we can see the inequities better and identify how those play out, and how we can then develop policies based on that information.
There is also an action plan to increase representation in hiring and appointments in the public service. There are steps to acknowledge artistic and economic contributions of Black Canadians. Included are justice system reforms to address the overrepresentation of Black, indigenous and people of colour in our justice system. There is training for police in law enforcement. These things are incredible steps toward realizing greater degrees of justice in our country, and eliminating to the greatest degree possible systemic racism.
The opposition parties still continued to maintain that our throne speech had no substance to it, that it was no different, that we didn't need the time to reflect and re-evaluate. Would these themes and important measures be a priority for our government if we didn't take the time to do that work? I would say maybe not.
What about gender equality? There is an action plan for women in the economy, the Canadian-wide early learning and child care system, acceleration of the women's entrepreneurship strategy. These were all in the throne speech. Our government is deeply committed to realizing greater degrees of gender equity and gender equality. We have been working on that from day one. To have these specific measures identified confirms continued action and continued priority on realizing gender equality in Canada which, again, is something we've learned—
Conservative
John Nater Conservative Perth—Wellington, ON
I have a point of order, Madam Chair.
I'm sorry to interrupt, but I notice that Mr. Turnbull is talking about gender equality and gender equity. I notice we have a new member of the committee with us, Mrs. McCrimmon. I wonder if she might want to take the opportunity to apologize for shutting down the national defence committee meetings, which were looking at issues of sexual misconduct in the military.
Liberal
The Chair Liberal Ruby Sahota
I don't think that's an appropriate point of order, Mr. Nater, and you know that as well.
Mr. Turnbull, you have the floor.
Liberal
Ryan Turnbull Liberal Whitby, ON
Thank you.
The other thing that appeared in the throne speech that I'm also very passionate about and pleased to see was the disability inclusion plan. That's a threefold commitment to income support, employment support and changes to eligibility criteria. This is very welcome.
Last, the throne speech also had the term "build back better". I know opposition parties—and I'll speak to this a little more later—have claimed that this is some token phrase. They've said this over and over again. I'll fight them to the end of the earth on that one and argue until the day I die. Literally the most important thing we need to do, in my view, is to build back better. That message is not a token phrase. It refers to realizing the many deep impacts and inequities and the ways in which our economy doesn't support full social and environmental responsibility.
It's referring to building our economy in a more intentional way so it really supports people and the planet. This is not socialism and communism, and the oppositions parties and the conspiracy theorists out there will tell you this is the great reset.
It's not the great reset. It's dealing with the very specific ways in which our systems are flawed, that are impacting people and the planet and creating the massive inequities and injustices that we see jeopardizing our future and our children's future. Things in the throne speech related to build back better, and that message is exceeding Canada's 2030 climate goal. We've seen our government put forward a new ambition and an ambitious target for a better target. I want to be more ambitious about that, as ambitious as we can possibly be.
This is really important. There's a new fund to attract investments in zero-emission products and to make Canada a leader in clean technology. I will say more about this because it's an area that I feel very strongly and passionately about. I think we still have lots of work to do. We have to go much further.
I want to reiterate that I find it just doesn't respect the value of that build back better phrase.... I know it sounds like a key message or a marketing strategy, but I think it's a very small packet of words that has a lot of meaning to it. For me, it really is important. It's what we heard from a lot of constituents.
Certainly in my riding, I have many climate activists and people who want serious and progressive change to be made on addressing climate change. They feel that this pandemic is a wake-up call for us to begin to realize just how better prepared we need to be. We have to realize how much better our systems and our politics and political system have to work to address major crises that we have not addressed over many generations. They have been accumulating in importance. We've left it to the bitter end. We can't do that anymore. We have to collaborate and find ways to address the impending climate disaster that I know climatologists have been predicting for at least 20 or 30 years. It's probably even more than that.
I have a colleague who was a part of Pollution Probe, which is one of the first environmental organizations. He was one of the co-founders. He's been actively working towards climate action for over 40 years. He's been frustrated. He is now retired but still active, no matter what.
Anyway, I want to get back to my main argument. I feel like I have so much to say and I don't want to take up too much time. I was away for two weeks reflecting, so a lot of things have been percolating. I really value the opportunity to express myself fully and give my point of view, which I know is part of my responsibility. I take it very seriously.
Let me tell you a little bit more about my argument and why we need to get on with things but also hear, at least, from the Minister of Finance and the Minister of Diversity and Inclusion and Youth. I'm not going to speak too much more to the Kielburgers and the Honourable Bill Morneau. I left those reinvitations in there as a compromise with Ms. Vecchio and the Conservative Party members. I really want to speak to my argument as to the importance of hearing from two more witnesses. I think it would be valuable. This speaks to the heart of my proposed amendment.
Again, I'm going back to a document I've referred to multiple times before, because I love data. I'm a bit of a data nerd. I think we have to base what we're doing on research and data. It's a report on the social and economic impacts of COVID-19, a six-month update released by the chief statistician of Canada in September 2020.
The reason I'm referring to that particular report is that the whole thing looks backwards in time and talks about why we prorogued. That report took statistical information on the social and economic impacts up to about August, then released a report on it in September. It really would have been some of the most relevant and substantive information available at the time. The reason it's relevant and important is that it demonstrates why the government did the things it did and how that information factored into resetting the agenda during prorogation, which is reflected in the throne speech.
I'll try to quickly summarize the main findings and then I'll go into more detail. I will summarize by saying there are three major findings. There's a lot to say about each one of them. I could probably talk for two or three meetings on each one, but let's just start with the first. The evidence collected shows there's been an unprecedented depth of economic impact in every category. It's also been uneven and inequitable across industries. I've already said this but there's a lot more information on the extent and the depth of that economic impact, which I think is pretty substantive.
For example, it's uneven across industries. The declines in outputs are five times greater than in 2008, and that was only in August 2020. Just think, we've now been through the second and third waves of this pandemic. The economic impact of COVID-19 has been far, far greater, at least 10 times greater. It could be even more than that by now. I haven't looked at the most recent statistics yet.
There was a historic decline in all economic activity. This comes directly from the chief statistician's report. It doesn't matter what measure we use. There's a historic decline in imports, exports, business investment, household spending, real GDP and market prices. The recovery is also uneven. In other words, we saw some industries bounce back between the first and second waves. The retail industry, for example, started to bounce back much more quickly than some of the other industries. Just how resilient different industries are to this specific type of shock to the economy is very uneven. It requires a lot of exploration, reflection and data gathering.
I remember at that time I was saying, "What is the economic impact of all of this?" I remember in August that I didn't know about this chief statistician report. It was only later that I found it, and I really find it valuable.
There is also historic declines in the labour market activity. There are steep losses in the highest-impacted sectors. We can think about retail, cultural industries, hospitality, tourism and many others. I have that data here as well.
There are also structural challenges in heavily impacted sectors. That impacts the recovery of some of those heavily impacted sectors. It's not only that they had the highest losses, but they also have structural challenges within them in terms of recovering. It's also led to an overall context of business uncertainty, which the report goes into quite a few details about.
This is just the economic impact. Understanding how historic those declines are and how significant and deep the economic scarring was, or the potential for economic scarring, highlights the importance of hearing from Chrystia Freeland, the Deputy Prime Minister and Minister of Finance.
Understanding that depth of economic impact.... And I'm not even speaking to the health impacts, which are really the most important parts of all of this. I know my colleagues Dr. Duncan and Ms. Petitpas Taylor have spoken to those in previous meetings. I feel just as passionately about those. I perhaps will bring more comments on those at a later time. Because they've focused on those areas, are extremely knowledgeable and have expertise in that area and are very eloquent, I'm focusing on the economic and social impacts in my remarks today.
The other major finding of the report is inequity. If you were struggling or were on the margins before this pandemic, it only got worse. This includes the impacts on women, immigrants, visible minorities, people with disabilities, low-wage workers, youth, and the list goes on and on. There are other groups, but those are some of the main ones that are identified in the statistical data that was provided by the chief statistician.
When I spoke to what was in the throne speech and hearing the evidence and data, you can draw direct links between them. I could create a map if you wanted me to—which I like to do—and I could draw lines between things and make those associations and connections. This is reasonable. For a rational person and someone who is very much interested in research and evidence-based thinking and policy solutions, this all connects. It adds up. If there was something fishy going on or some other nefarious activity, things probably wouldn't add up so well. They wouldn't make sense. They wouldn't be rational. There wouldn't be all of these very logical conclusions and arguments that could be made.
This is why I think it's so important for me to provide these sorts of rational arguments and draw these connections, because it goes to the heart of what this study is supposed to be about. We're now debating a motion and debating an amendment, which I'm trying to be very reasonable about, when opposition parties keep claiming that we don't want to study this or do that or provide reasons. They're assuming all of these motives. I thought, “ We've provided evidence and rationale. We've been transparent. It makes sense, so what do you want?”
I digress on that. Getting back to the point I was making, there are three main conclusions that I drew from the evidence that the chief statistician provided.
The last one is the looming existential threat of climate change. It's not mentioned that way in the report, but what's mentioned in the statistics is just how much environmental services, clean-tech industries, are almost pandemic-proof or shock-proof. They represent massive economic opportunities for a country that's in the deepest economic crisis probably since the Great Depression.
What's interesting is the evidence shows that those industries really represent a lot of hope and opportunity for us, not to mention help us. Not only do they create the economic growth and prosperity we're looking for, after the deep scarring and hardship experienced by Canadians, but they also are the right thing to do. We must think about this pandemic as a wake-up call to the impending climate disaster that will be coming in the near future if we don't wake up and act in the way that Dr. Michael Ryan was speaking to, in the quotation I gave, with the same degree of urgency and immediacy that is required for this pandemic. That's the kind of full court press we need for fighting climate change.
I would say that our party and the throne speech and the data support this as not only being the right thing to do for many reasons, but as also representing some of the biggest economic opportunities for our country. When we say that the environment and the economy go hand in hand, this is why. There is actually evidence to suggest that this makes sense, too.
I want to speak a bit more about the inequities. No, let me say a few words just briefly about the economic impact, because I covered some things that I wanted to say in comments I gave in previous meetings, but I didn't cover everything I wanted to say, and there are quite a few important impacts.
One in particular that I feel pretty passionately about is the level of business uncertainty that the pandemic has created for business owners and entrepreneurs. Just in May 2020, that is, three months into the pandemic, a quarter of businesses had been granted rent or mortgage deferrals. At this point, the number is probably much higher than that, but just think about their being granted mortgage or rent deferrals at the time. This was before we had the rent subsidy. It was redesigned later on and I think worked much better. That was another example of our government's listening and responding to the needs of businesses.
Just having those deferrals add up—and remember, a deferral is a deferral; you still have to pay for a small business....
I was a small business owner for 12 years and helped other small businesses. I've helped more than 250 small businesses start up. I only worked with businesses that had a triple bottom line, ones that believed in social and environmental impact and integrated that sense of sustainability into their business models. That's my specialty.
For me, when thinking about business uncertainty and the impact of this pandemic and the kinds of opportunities it creates, but also about the way our government is responding to it, it's important to understand the kinds of uncertainties businesses are facing—or I should say “were facing” at the time we prorogued.
There's also evidence in the chief statistician's report that says many businesses will be reluctant to invest in the near term, and that means invest in their own businesses. They talked about businesses trying to protect their balance sheets and debt service.
The idea is that many businesses have planned expenditures in their businesses as they made a profit. They put the money back into their business to continue developing. It might be opening new branches, facilities; it could be in HR, personnel. There are all kinds of system improvements and operational pieces of their business that they might be planning in the near future to invest in.
I remember, as an entrepreneur, going from being a sole proprietor to a corporation to a mid-sized consulting firm over 12 years. You did business planning in order to anticipate the growth. Then you hustled to meet these targets so you had enough as an entrepreneur or a business owner to invest back in your business so you could continue to grow and develop and achieve your mission and purpose as a business. Just think about the fact that many businesses were reluctant to plan any expenditure and were protecting their balance sheet by saying, “We're not going to spend any money.” Think about what that says about our economy.
Seventeen per cent had an annual decrease in private sector capital spending as well. Firms sharply downgraded their capital spending plans, so private sector decreased planned capital spending by 16.6%, which is equivalent to going from $178 billion to $147 billion. That's only a 16.6% decrease, which seems small at this point. Now, after a second and third wave, I'm sure it's much, much, much higher. I don't have that number for you right now, but I think the chief statistician's most recent update would probably provide a useful comparator for us to understand the trend. For now just know that at the time, in August, it was literally a $30-billion hit to private sector capital spending. That's huge. There was a 39% decrease in planned capital spending for accommodation and food services—a 39% decrease in that industry. It was much greater in some industries versus in others. A 27.2% decrease in capital spending planned for the oil and gas industry is another example.
Also, small service-based companies were disproportionately impacted. Three-quarters of small businesses have taken on debt as a result of COVID-19. I'm sure, again, that number is much higher today, but at the time 75% of small businesses had taken on debt. You can just think about how that's going to impact their ability to recover. Some of those businesses have told me that if we come roaring out of this pandemic with economic recovery, it will be almost a miracle if they can service the debt they've accumulated over the course of the first, second and third wave of this pandemic. That's why I've been a vocal advocate for “COVID zero”, which is an approach that is different from what some of our provinces and territories have taken. I think the Atlantic provinces have shown us the light and the way in terms of managing the pandemic without the continuous open-close, open-close, open-close disruption of our economy and our society over and over and over again.
Anyway, that's a bit of a side note.
I'll go back to the small service-based companies that have been disproportionately impacted. Sixty-eight per cent of those with debt estimated it would take them more than one year to pay that debt off. Again, that was in August 2020. A lot has happened since then. If 68%, almost 70%, would have taken a year to pay off their debt at that time, just think about how many years it's going to take them now. That debt has only gotten greater through the open, close, open, close of our economy.
On new firms and start-ups, again, I was highlighting these before I knew only too well. Since 2015, when the Liberal Party formed government, the number of new firms, so new business start-ups entering the market, was on average 16,500 on a quarterly basis. Every three months there were 16,500 new businesses in Canada from 2015 until the time this report was written in September.
Start-ups account for 45% of gross domestic product, so 45% of the output of our economy is essentially new start-up businesses. There were 88,000 business closures in April 2020 and 62,600 closures in May due to COVID-19. Those were closures, not bankruptcies or anything. Those businesses closed down. That's not to say they necessarily went completely out of existence or folded up, but they closed down.
You can see how many businesses were impacted. There were 100,000 fewer active businesses in May 2020 compared to May 2019. One hundred thousand fewer active businesses—that's unheard of. Think about how many businesses are going in the opposite direction. Whereas we have had 16,500 new businesses being started up in every quarter in Canada since 2015, now we have the reverse direction, which is these 100,000 fewer active businesses in May 2020 compared to the previous year.
I don't know if we can even really fathom.... I spent 12 years working with about 250 businesses, and I can tell you about the work those people put into building their businesses. To have all of that lost due to a public health crisis is just astronomical. It's very hard to fathom the depth of that impact, how far-reaching it is and how much it impacts those family-owned businesses, those individual entrepreneurs and those small partnerships and franchises: so many businesses and good people working their tails off to make a living and to do something they believe in that's often good for the community, good for the economy and good for them at the same time.
Business failures among small firms dwarf the lack of new entrants. Again, the amount of failures in the economy of those small businesses was far greater than any new start-ups during the pandemic.... There's a quote in the chief statistician's report that says, “The pace of...job recovery will depend in large part on the extent to which...companies...can remain viable...”. That's on page 66. It goes without saying that if our small businesses make up such a huge portion of our economy and employ the largest number of people in our economy, I would say that they're the engine of our Canadian economy, and if we're seeing that many failures out there or that many closures and not as many new entrants, we're going to have a severe problem that's long term, right?
Our measures and supports that our government launched and were in the throne speech were designed specifically to help the most small businesses get through this crisis. For me, I've heard over and over again that for some small businesses that were family run or run by sole proprietors, the wage subsidy and the CERB were life-saving measures, supports and financial assistance for them.
The work on the commercial rent assistance and how the program was redesigned was done after prorogation. It was something we heard strongly during the prorogation. The small business tenants in commercial properties wanted the support to go directly to the small business owner so that they could pay the rent with resources instead of having it go through a more complex scheme, through their landlord, which clearly wasn't working, although it was a good intention on the part of our government. It didn't work as planned or as well as we had hoped, and it was redesigned promptly. I think it really was appreciated.
There were higher operating costs for many small businesses and definitely weak demand. They were anticipating a weakness in the demand for their services.
This wasn't the case with every industry. Certainly, I know of some examples in my community where some larger businesses did quite well in the pandemic. For the most part, though, the highest impacted sectors and industries and the small businesses that operate within those really were affected by a weak demand for their services and products.
Also, if they were to operate, they had higher operating costs. They had social distancing. They couldn't service as many individuals or take the volume of sales. There were all kinds of things they had to do to manage or prevent infection, control and operate with health and safety at the forefront, and develop protocols. There was all kinds of extra work they had to do and there were some extra costs for many of them.
Trade flows between the U.S. and Canada were impacted greatly by case numbers. As the case numbers went up and down in the United States and in Canada, they impacted the trade flows between the U.S. and Canada despite the fact that our government, I think, has done a lot of work to try and keep the trade flows between Canada and the U.S. going during the pandemic and to not have major interruptions. There's some evidence in the report to show that the trade flows with the U.S. were impacted by the case numbers of people suffering from COVID-19.
I also want to speak a little bit about the structural challenges in heavily impacted sectors. The transportation and warehousing sector employs a million people across Canada. Fifty per cent of employment is in accommodation and food services. For tourism, 22.1 million tourists from abroad would have come into Canada. Travellers spent over $22 billion in Canada previously, and spent approximately $1,640 per trip. That's in 2018. Just think about how many fewer people came into Canada. I think we heard from the Minister of Public Safety back then that travel was down about 98%, if I remember correctly.
Just think about the 22.1 million tourists who would normally come into Canada and all of the economic activity and revenue that would be generated for businesses that serve those travellers, which was estimated at $22 billion a year. When tourism is down that low, just imagine how much our economy is impacted by that.
In 2001 after 9/11, the airline industry declined by 26%. In 2003 after the SARS outbreak, the decline in the industry was 26%. These were unprecedented numbers for impacts on the airline industry. It was 26% after 9/11 and a 26% decrease in the industry after the SARS outbreak. In 2020 after the global pandemic, decline in the industry was 97%.
Have I made my point clear yet? This is unprecedented. I hate to use that word at this point because people use it so often. I'm sick of hearing it and I'm sick of saying it, but it literally is unprecedented. The evidence is clear. After 9/11, there was a 26% decline in the airline industry. It was 26% after the SARS outbreak, but 97% during COVID-19.
The list goes on and on. I have so much more data and information that I feel like I could speak forever. I don't know whether my other colleagues want a chance to speak, but I have a lot more to say, Madam Chair. I also don't want to dominate the airwaves and not give my other colleagues time to speak.
I want to follow through with my argument, but perhaps I'll take a little break and let one of my other colleagues say a few words. I'll get back on the speakers list to continue my argument because by no means am I finished and I have quite a bit more to say on this matter. I would be grateful for some more time to express my thoughts.
I'll turn it over to the next member on the speakers list. I'm not sure, but I think it might be my friend and colleague Darrell Samson, if I'm not mistaken.
Thank you very much, Madam Chair.
Liberal
The Chair Liberal Ruby Sahota
Thank you, Mr. Turnbull, and I hope you're feeling okay.
I wanted to survey the committee. Ms. Petitpas Taylor, maybe whatever you have to say will inform me as to what I have on my mind.
Liberal
Ginette Petitpas Taylor Liberal Moncton—Riverview—Dieppe, NB
I'm sorry, Madam Chair, I did not mean to interrupt your thought.
I'm just wondering if we could perhaps survey the committee members to see what the plan for the day is. Are we prepared to suspend or are we going to be continuing?
Liberal
The Chair Liberal Ruby Sahota
My question was similar, just so the staff, the clerk and everybody in the room can prepare. They're asking me for direction as to whether the cleaning staff can come in for the next committee. They need about an hour's time, but I don't have any direction as to whether this committee would like to continue past 2:30, which is generally the time that is needed to switch over if the next committee is going to have their slot.
Are there any ideas? Has anybody spoken to any of the party whips? You can maybe give me information.
Conservative
Conservative
Karen Vecchio Conservative Elgin—Middlesex—London, ON
I think we're good to go until 2:30. We know that the human resources, skills and social development committee has a very important piece of legislation coming forward, so we want to honour the fact that it needs to be heard today.
I would ask that if we do suspend that we return on Thursday, but also to ensure that we do have coverage because we're continuing to try to make sure all the committees are able to sit. It would be great if we could get this one over and done with, this filibuster. Ryan was saying it's been going on for a few weeks. It's been exactly two months and a few days now. I know we all want to get it over with, so perhaps we can focus on making sure it's done on Thursday, and block out Thursday.
Let's get this done.
Liberal
The Chair Liberal Ruby Sahota
Okay. I like the ambition and maybe the motivation that's being provided by Ms. Vecchio.
Seeing that it's 2:27, I'm sorry, Mr. Samson, but I feel that giving you a couple of minutes would probably be unfair, knowing how passionate you get when you speak. You would be on the speakers list. We would only be suspending and carrying the speakers list forward.
Perhaps we may have some resolution and votes on these motions or a new path forward, I don't know, but I do encourage everyone in committee, and also in your personal time to try to see if we can find a path forward.
Having said that, I will suspend until Thursday's scheduled time.
Thank you.
[The meeting was suspended at 2:28 p.m., Tuesday, April 27.]
[The meeting resumed at 1:59 p.m., Thursday, April 29.]
Liberal
The Chair Liberal Ruby Sahota
I call this meeting back to order. This is a resumption of meeting number 27 of the House of Commons Standing Committee on Procedure and House Affairs which started on April 13, 2021.
Bloc
Bloc
Alain Therrien Bloc La Prairie, QC
I can't hear anything. There's no sound at all. I heard you, but then the sound cut out. I don't know what's happening.
Liberal
The Chair Liberal Ruby Sahota
Let's suspend temporarily until we get everybody back on. There's no point in having this recorded right now.