Industry Committee on March 15th, 2012

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

Okay.

I'm good, Mr. Chair.

[The Chair, Conservative, David Sweet]

Thank you, Mr. Lake.

Before we go on to our next speaker, there is some information regarding a CRTC definition that I'll have the researcher add to Ms. McDonald's comments.

[Dillan Theckedath, Committee Researcher]

According to the “CRTC Communications Monitoring Report” in 2010, 98% of Canadian households had what they called broadband access, which Ms. McDonald referred to.

You asked for the definition. The definition of broadband is 1.5 megabits per second.

[The Chair, Conservative, David Sweet]

Thank you.

Now we'll go over to the NDP.

Ms. LeBlanc, you have five minutes.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Thank you, Mr. Dicerni, for being here. I would also like to say hello to Ms. Gillis and everyone here today.

Last fall in New Brunswick, the headlines widely reported the anxiety created by the rumours that the NRC's Institute for Information Technology in Fredericton was going to close its doors. That sector, which is still fairly new and fragile, employs 30,000 people. Its vitality depends on the presence of the NRC's Institute for Information Technology.

So I'm wondering what impact budget cuts of $66.7 million—an amount that was dedicated to technology clusters—would have on the NRC's activities in New Brunswick, as well as on the technology cluster that has developed around that institute.

[Richard Dicerni]

Could you please tell me what page the information you're referring to is on? There were no budget cuts in this respect last year. That's why I'm trying to find this information.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

It's on page 214 in the English version.

[Richard Dicerni]

Okay.

The technology cluster program is related to the institutes. As I said, about 15 institutes target specific sectors. I'll tell you a bit more about it because these clusters are up for renewal this year. That's what we're working on. That's why I said I didn't think there had been a decrease. I promise you and the chair that I will write to you after I have spoken to the president of the National Research Council of Canada.

You can also rest assured that we and the president of the National Research Council of Canada are aware of the role the institute plays in St. John. The provincial government stressed its importance to us.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Has there been a change in direction? Would some institutes have a status other than that of institute? When I met with the NRC president, he seemed to be saying that the status would be a little different.

[Richard Dicerni]

The Jenkins report more or less recommended taking an axe to the National Research Council Canada and totally reorganizing its activities. Minister Goodyear has said that he prefers evolution to revolution when it comes to the NRC.

However, and I think that this is what Mr. McDougall was referring to, we want to make sure that NRC expenditures are in line with the real industrial needs of the country and that there is a closer link between industry's needs and the NRC's work. Take the example of the aeronautical institute based in Montreal. I think 40% of its revenues come from the private sector. That means that companies like Airbus and Bombardier provide them with contracts. So the usefulness of that institute is well-established, because private industry provides it with a mandate in the form of contracts to meet their needs.

The objective that Mr. McDougall is trying to achieve with the other sections and institutes is to have really useful activities that serve people's needs. That is the direction he is looking in.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

I understand that completely.

[The Chair, Conservative, David Sweet]

Your time is up.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Already?

Thank you.

[The Chair, Conservative, David Sweet]

Next is Monsieur Côté. He may lend you some.

Mr. Côté, you have five minutes.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

I hope that things will be just as pleasant with me, Mr. Dicerni, but I doubt it, because Ms. LeBlanc is known for her gentleness.

You will have other things to talk to Mr. Bernier about, because I want to talk about the changes to the estimates that relate to the Canada Small Business Financing Act.

We can see a net reduction of $6.5 million in proposed contributions to lenders, dealing with claims for loans under the act. The act is intended to support small businesses looking for funding. It gives them loan guarantees, in fact.

Since the time when I was responsible for small business policy, I have been noticing that entrepreneurial activity in Canada is stagnant, even in decline in some parts of the country. It is quite a concern. Clearly, conditions are very difficult and not just when it comes to loans.

Is it not a mistake to reduce that funding, given that we had major problems with the loans made by financial institutions in the 2008 crisis?

[Richard Dicerni]

My colleague Ms. Gillis tells me that it is not a reduction, it is rather an anticipated projection of repayments. This is a statutory program. When banks send us invoices, we pay them.

[Kelly Gillis]

It's the bad debts related to the loans.

With small business loans, the banks make them and we provide a guarantee for 15% of the amounts. When the loans do not perform well, we give a small amount to the banks. This is an estimate of the reduced amounts we have to give to the banks. It does not affect the loans themselves or the amount of those loans.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

So it means you are having to be involved in the market to a lesser extent.

[Kelly Gillis]

That's right. It is a good thing.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Okay. From that perspective, it's good news. We agree with you there.

[Richard Dicerni]

You can take it off your list of things to talk to Mr. Bernier about.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

No, I am certainly not going to do that, because we still may want to ask about the direction we are taking. You are less concerned by that question, but we may want to discuss the government's wrong-headed view of the economy in general. Our economy is less and less stable, and here we are with Canada's economic dog on a very short leash again, if I may put it that way. Another pull on the collar and small businesses will have a lot of difficulty getting funding.

That is still a concern, one way or the other. So even if this is good news, we might wonder if there is not a way to make up for the skittishness of the banks.

Let me go back to tourism, since it is an area that particularly interests me. Quebec City is a major tourist destination. Small tourism-related businesses have a terrible time getting banks to lend them money, simply because they have very little in collateral to offer.

Forgive me for not really getting to a question.

Something else infuriates me. The latest study that Industry Canada published on the matter specifically said the criteria for getting financing had become stricter. Unfortunately the study in question was terminated and there will really be no way to follow it up. Is that true or am I mistaken?

[Richard Dicerni]

I do not know what study you are referring to. If you or your colleagues could…

[Raymond Côté, NDP, Beauport—Limoilou, QC]

It was the study on small business financing.

[Richard Dicerni]

I am not familiar with it, but I will find out about it.