Industry Committee on May 13th, 2010

[Anthony Rota, Liberal, Nipissing—Timiskaming, ON]

If we can cut the PR for the Conservative Party and just kind of answer the questions....

I'll wait for the information and pass the questions on to my colleague, Mr. Dhaliwal.

Thank you.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Thank you, Mr. Rota.

I would like to thank the minister and his associates.

My question is to the Minister of WD, Madam Yelich.

Since budget 2007, the core operating budget for WD has been systematically reduced every year. This trend will continue until 2012-13, when the WD budget will have been cut by 48% compared to the final year the Liberal government was in office.

Can you please explain why this department is slowly being eliminated under your leadership?

[Lynne Yelich, Conservative, Blackstrap, SK]

Thank you for the question.

WD's core funding has not changed. In fact, it was renewed in budget 2010. I want to reiterate what I said in my speech. The impact of this budget was very important for my department because it was a significant component of WD's funding. It used to have to be renewed every year. It was difficult to plan for the medium and the long term, causing hardship for our external stakeholders.

Budget 2010 removed that uncertainty by making this component of WD funding permanent. That allows us to continue to focus our support on initiatives that will drive the west's long-term success. It was never permanent before.

We deliver programming on behalf of other government departments such as Infrastructure Canada, with economic action plan funding and Alberta and Saskatchewan centennial funding. The main estimates are affected by the timing of additional initiatives and will change when the supplementary estimates are tabled later this year.

But as I said--and I think it's something you should know--it used to be dubious because they didn't know from year to year whether they were going to get funding. Now, there's certainty that they will, because of budget 2010, which has created permanent funding for WD and the other agencies.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Contrary to what you say, which is that it's permanent, the way I see it is that these are the main estimates and this sets up the plan for the future. Would you simply confirm, yes or no, that the core operating budget for WD in 2012 will be reduced by almost half of what it was under the Liberal government in 2006?

[Lynne Yelich, Conservative, Blackstrap, SK]

Well, the drop-off you see in this year's main estimates is the result of the decision of the last Liberal budget in 2005.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

If I look at this article from 2002 by Mr. Harper, the Prime Minister, he clearly spoke about the plans for dismantling all regional economic development agencies like WD, ACOA, and others.

I can submit this article, Mr. Chair. It clearly states his intentions.

When I look at the way the core spending budget for WD and other agencies is cut systematically every year, it seems that the Prime Minister's vendetta has been brought into action through your department and others.

Would you like to comment on that?

[Lynne Yelich, Conservative, Blackstrap, SK]

Yes. This is 2010 and the Prime Minister spoke very clearly with his actions by making the funding for WD permanent. It allows us to focus on our initiatives.

As I reread in my speech to you, this is permanent funding, something that was never done by the Liberal government. It was sunsetted. You had programs wherein the Liberal government had--

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

But on one hand you are saying that you are making it permanent, but on the other hand the numbers clearly show here—

[Lynne Yelich, Conservative, Blackstrap, SK]

From 2002.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

The numbers clearly show, Minister, that every year it has been reduced and you are trying to dismantle the WED department.

[Lynne Yelich, Conservative, Blackstrap, SK]

Maybe my deputy minister will make it clearer to you, but we have not removed any funding.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Core operating--

[The Chair, Conservative, Michael Chong]

Mr. Dhaliwal, let Deputy Minister Watson respond.

[Daniel Watson, Deputy Minister, Western Economic Diversification]

Thank you for the question.

Previously, a significant component of the department's funding was up for renewal every period of years. Budget 2010 puts an end to that cycle by proposing that funding be added permanently to the reference levels of the department. In the future, we won't see the same drop-off related to that key component of our funding.

One of the other big changes--and it's probably the most significant one in terms of where the dollars go--relates to the treatment of infrastructure funding. There was a time when infrastructure funding was voted by Parliament in the vote on Western Diversification. There was a decision made at some point in the past to actually attach that more directly to Infrastructure Canada, which administers the program. So in many cases the same amount of dollars was simply reported under a different heading, and not under Western Diversification any more.

If you look at the core funding for the core activities we do--we don't call infrastructure one of our core activities--the issues the minister spoke to around science and technology, innovation, and competitiveness are what we call our core activities. That funding has either remained stable or, in some cases, been made permanent. That is a significant advantage for us, because we can plan with our partners much more effectively than we could in the past.

[The Chair, Conservative, Michael Chong]

Thank you, Mr. Watson.

Monsieur Bouchard.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Thank you, Mr. Chairman.

Welcome, Madam Minister.

Welcome, Mr. Minister and Mr. Deputy Minister. My question is for the minister.

The CANtex program was very much appreciated by the Quebec textile industry. As a matter of fact, that industry recommended or hoped that the program would be extended. The envelopes have been reinvested in other programs at Canada Economic Development.

Could you tell us if, within the amounts that have been reinvested, any money has been set aside for the textile industry?

[Tony Clement, Conservative, Parry Sound—Muskoka, ON]

It might be possible to have a clearer answer in the future. That being said, I could say a few words about this. Myself and my team have met with representatives from this industry. We had a good discussion with a view to maintaining a relationship in the future. Even if that program is no longer in place, obviously, there are other mechanisms that we have mentioned that would serve the interests of this industry.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

You say that you will be able to provide an answer later: might I have it in writing? Could you send me a note with the amounts reinvested by Economic Development Canada and the amounts set aside for the textile industry?

I have another question, Minister, pertaining to the Marquee Tourism Events Program. We are aware that the aim of this program is to support marquee events as well as to attract tourists from around the world.

What exactly are the criteria involved in the granting of this financial assistance? Why has a world-renowned festival like the Francofolies de Montréal not received a grant whereas your department has subsidized a private business, a football team — the Edmonton Eskimos —, that received financial assistance to celebrate the Grey Cup?

There is something quite paradoxical here. I would like to hear your explanation with regard to the criteria. And why has this marquee festival not been supported?

[Tony Clement, Conservative, Parry Sound—Muskoka, ON]

I will say a few words, and perhaps my deputy minister will have something to add.

Obviously, a change was made to the program this year, because it was important to have conditions allowing all urban municipalities to benefit from it. Last year, more than 50% of the grants went to large cities: Toronto, Montreal and Vancouver. This year, it was possible to subsidize 29 other festivals from other cities throughout the country.

I believe it is important that we have diversity and that it be possible to share throughout the country and with the other festivals in Quebec. This year, we are able to offer grants in areas where it was impossible to invest last year.

Perhaps my deputy minister might respond as well.

[Richard Dicerni]

It is important to consider this program in the more comprehensive context of the government's approach with regard to the tourism industry. This is one program, but there are others.

With regard to this program, it is important to underscore that it is limited to two years: we had it last year and we have it this year. As the minister stated, this year, the government has decided to target more locations. It has also decided to invest along with the Canadian Tourism Commission, which we be able to support efforts in the coming years.

One must therefore not just look at this year, because this was the final year of a two-year program.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Minister, how can you justify such a decision, when your decision was known and had been announced with regard to that international festival one month before the event, and when the organizers had already committed to the expenditures? How can you justify that? You say that this year you will target larger cities, but were people made aware of this ahead of time? You announced your decision just one month before the holding of the events, whereas these organizations had already made their commitments.

[Richard Dicerni]

With regard to the timing, I believe that all of the organizations were aware of the fact that no guarantees had been given to any of them. All of them know full well that as long as no decision has been made nor announced, there is no commitment.

[The Chair, Conservative, Michael Chong]

Thank you, Mr. Dicerni.

Mr. Lake.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Thank you, Mr. Chair.

I note that John Ivison is in the room. I'm tempted to ask him questions about the British election results, because I'm sure that would be an interesting topic of conversation for both of you--

[Tony Clement, Conservative, Parry Sound—Muskoka, ON]

It's not part of my estimates.