Industry Committee on Sept. 28th, 2006

[Richard Dicerni]

I'm not sure that this issue falls within the mandate of our department. Can you provide me with more information on these particular cuts?

[Robert Vincent, Bloc, Shefford, QC]

Based on the information I have received, the $2 billion in cuts were made in the area of employment programs for young people. And these programs were directly within that sector.

Are you not aware of this?

[Richard Dicerni]

How should I put this... it is fairly enlightening to be here and to learn about cuts to our department. Please allow me to be unenthusiastic about cuts to other departments.

[Robert Vincent, Bloc, Shefford, QC]

It was part of that industry, which was the focus of our discussion at the time.

In your opinion, do you think that the programs which have had their funding reduced could be negatively affected?

[Jean Lapierre, Liberal, Outremont, QC]

Most definitely.

[Richard Dicerni]

That's Mr. Lapierre's opinion. I'm sure that not everyone would agree. I have read and listened to the comments made by ministers. From a global economic perspective, the impact of the cuts will depend on certain political decisions. Career public servants usually do not have an opinion to share on such matters.

[Robert Vincent, Bloc, Shefford, QC]

Do you think that the tourism industry is one of the most developed industries, or even the most developed one? Given the emergence of Asia and the strength of the Canadian dollar, every industrial sector is losing ground.

Rather than making cutbacks in this sector, don't you think that it would be better to invest a bit more money to attract visitors and to grow the sector in Canada and Quebec?

[Richard Dicerni]

As I stated, the tourism industry is important for Canada, be it in the border towns or elsewhere. In this regard, all Government of Canada investments are not strictly investments in or appropriations for the Canadian Tourism Commission.

Recently, the government earmarked several million dollars for Quebec City events to celebrate Champlain's arrival. Obviously, this had a spinoff effect for tourism. These events are designed to increase tourism. Appropriations for the Vancouver-Whistler Olympics were also designed with tourism in mind. Through the Atlantic Canada Opportunities Agency, the government recently announced funding aimed specifically at enhancing tourism in the provinces.

I would opt for seeking additional information with respect to other investments.

There will also be investments in the infrastructure program. Last week, in Ontario, tourism industry representatives told me that one of the key ways to enhance and support this industry was through infrastructure. There is basic infrastructure, roads and border crossing points, to improve access to the country. A number of government initiatives are to be found under the heading “Infrastructure”. I honestly think these initiatives are going to facilitate tourist access to the country.

[The Chair, Conservative, James Rajotte]

Thank you.

We'll go to Mr. Carrie for five minutes.

[Colin Carrie, Conservative, Oshawa, ON]

Thank you very much, Mr. Chair.

In the Speech from the Throne it was announced that accountability, transparency, and efficient use of taxpayers' dollars would be the hallmarks of this new government. In Budget 2006 the government promised to review all the program spending to ensure that taxpayers' dollars were spent effectively to achieve the maximum results.

Is it your opinion that we've found ways to make Industry Canada more effective and leaner, without major impact on the day-to-day operations of the department and our portfolio partners?

[Jean Lapierre, Liberal, Outremont, QC]

I thought you were part of the decision. I thought you ran that department.

[Some hon. members]

Oh, oh!

[The Chair, Conservative, James Rajotte]

I'll just remind you that only one member has the floor at any one time. I encourage members to direct their comments and questions through the chair, of course. I expect leadership from some of the vice-chairs on this.

[Dan McTeague, Liberal, Pickering—Scarborough East, ON]

It's not fair that you put Mr. Crête in that position.

[The Chair, Conservative, James Rajotte]

Mr. Dicerni, you may choose to answer that.

[Richard Dicerni]

I've been involved in public service in one way or the other for the better part of 30 years. I believe there is always room for improvement and room to enhance effectiveness and efficiencies. I saw this when I was running Ontario Power Generation. In the private sector and public sector, there's always room for improvement to have more efficient operations. I believe that Industry Canada is no exception to that fundamental rule about good management practices.

[Colin Carrie, Conservative, Oshawa, ON]

When we talk about efficiency savings, could you discuss the impact that the financial constraints will have on the day-to-day programs, for example, at Stats Can where one of the efficiency savings has been found?

[Richard Dicerni]

The efficiency resulted from conversations that were held with the chief statistician, who, in recognition of the government's desire to reduce expenditures, reviewed what was going on in Statistics Canada and identified areas where expenditures could either be postponed or curtailed. This included things such as microfiching old census data. Some savings may relate to computer upgrades, the view being that a dollar not spent one year is a dollar saved.

The chief statistician put forward a series of measures that amounted to a reduction of about $15 million, which is perhaps about 3% of the agency's budget this year.

[Colin Carrie, Conservative, Oshawa, ON]

It seems that it's on the right track, anyway. That's great.

We had the $2.4 million funding reduction at CANtex--programs for Canadian apparel and textile industries. Was that because it had lower than expected take-up by the apparel and textile industries? Is that really the main reason?

[Tom Wright]

In essence, that is the rationale, although I would remind you that it's a program oriented towards the textile industry and not the apparel industry. So yes, it's very much a reflection of the rate at which the money has been taken up by the industry.

[Colin Carrie, Conservative, Oshawa, ON]

With respect to the TPC, just to verify again, is there sufficient money in the budget to fund all the projects currently? Could you clarify that?

[Richard Dicerni]

I would like to rephrase that somewhat. There is due diligence done on projects; there's very careful scrutiny of the business case of the proposal. I would not want to offer a blank endorsement that anybody who submitted any project is going to be endorsed.

But as I believe the minister said yesterday in the House, this year's financial envelope will be a bit south of $300 million, which is a fair amount of money. Obviously, some of these moneys are already spoken for on the basis of prior year undertakings, and there are other projects that have been previously approved. This is not all virgin money.

[Colin Carrie, Conservative, Oshawa, ON]

There's even a potential for more savings--

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Carrie. Your time is up. Sorry.

[Colin Carrie, Conservative, Oshawa, ON]

Okay, thank you.