Industry Committee on May 8th, 2012

[The Chair, Conservative, David Sweet]

Thank you, Mr. LeBlanc. I was allowing you time to finish your answer.

Now we're on to five-minute rounds, and Mr. McColeman for five minutes.

[Phil McColeman, Conservative, Brant, ON]

Thank you Chair.

And thank you, Minister, for being here today to deal with our committee's issues, which really, as the previous minister testified, focus on how we grow our trade, our innovative..., how we grow companies, the mandate of the programs that you roll out to business to keep and create jobs.

Just in a general way, my first question is this. Since the economic downturn, entrepreneurs in the country have had difficulty generally accessing capital, especially venture capital. I'm wondering if you can speak to the ability to raise capital, from the perspective of your mandate to fund small and medium sized businesses in the Atlantic region. Perhaps you can do that by way of an example or two of businesses that have benefited from the programs that you oversee.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

When you talk about access to capital or to venture capital, this is one of the big hurdles and the big challenge of companies in Atlantic Canada. That's why we were pleased as Atlantic Canadians to see in this budget that there will be an effort to set aside more money for venture capital, and we are hoping that those small and medium sized companies will get a better chance to access venture capital.

The access to capital issue explains in a big way why we have, within the architecture of our agency's programming, the business development program, where we provide small and medium sized businesses with access to capital in order to expand, start up, adopt new technologies and/or seek marketing expertise to export outside of Canada.

I guess the best example I could give you, spanning over maybe 15 years, is the development of the aerospace and defence sector in Atlantic Canada because of the role that ACOA, this agency, played in that file.

Because of the IRBs, the industrial regional benefit policy adopted back in 1986, ACOA has actively worked with small and medium sized businesses and business entrepreneurs in Atlantic Canada to develop that sector. We have made a lot of repayable contributions to these small companies that are successes today on the world scene, providing parts and goods and services to the aerospace and defence sector throughout the world.

We can point to these successes. Today in Atlantic Canada, the aerospace and defence sector has 10,000 employees, compared with none about 20 years ago, and has $1 billion in annual sales from Atlantic Canada.

It goes to show, I believe, how effective the agency has been in promoting entrepreneurs in Atlantic Canada in develop a sector that is providing good jobs for Atlantic Canadians, skilled jobs. We can now do even more with the awarding of the shipbuilding contract to the Irving shipyard in Halifax, which is another great opportunity for entrepreneurs to create even more jobs and wealth in Atlantic Canada.

[Phil McColeman, Conservative, Brant, ON]

Fantastic.

A lot of people, having visited Atlantic Canada, know how important tourism is to the Atlantic region of our country. Are there any examples of what the government has done through ACOA to strengthen the sector and capitalize on the assets that are part of the Atlantic Canada landscape?

[The Chair, Conservative, David Sweet]

Minister, I'm sorry, but we're out of time. I would love to have heard of the tourism initiatives, because I always enjoy going out to eastern Canada. I used to go there with my kids, and now it's just with my wife.

Madame LeBlanc is the next questioner and then we will only have a couple of minutes.

We have no other meetings scheduled on the main estimates. The committee will have to decide whether we want to deal with the votes. If we don't vote on the main estimates, then they go back deemed adopted.

Madame LeBlanc, for five minutes.

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

Thank you, Mr. Chair. Thank you, Minister.

My name is Hélène LeBlanc and my father is an Acadian from southwest Nova Scotia. I grew up in Quebec, but I know the Maritimes very well. I would like to take a closer look at this with you.

Given that your agency offers funding to various businesses in different regions, it is truly important to have criteria and an objective process. Unfortunately, we've just learned that about 20 internal auditing positions are to be eliminated in the regional development agencies across the country.

How will you be able to establish rigorous criteria to ensure that political considerations, so to speak, do not interfere in funding allocation and that priorities are properly set to truly help the Maritimes?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

First of all, I believe you are alluding to the fact that, in order to save money for Canadian taxpayers in each of the regional development agencies, we have decided to concentrate all evaluations within the Office of the Comptroller General. The evaluations which were previously done internally by each of the agencies will now be done by the Office of the Comptroller General. They will be no less rigorous, nor will they be fewer in number, but the Financial Administration Act will be followed and will continue to be applied to all ACOA's contributions.

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

Given that Canada is a country made up of regions, the role of a regional auditor is important to ensure that each region's needs are being met. Such an auditor, in my opinion, would go further than the Office of the Comptroller. What do you think?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

I do not share your point of view. You seem to be saying that there may be less rigour when the time comes to decide if a program is meeting regional needs or not. From what I understand of the way the system is structured, this is how programs are designed and developed to deal with a particular issue in a given region.

Let's take the example of the ACOA innovation fund. That program would be subject to a structure that meets the requirements of the Financial Administration Act and standards approved by Treasury Board. That program is delivered by public servants who evaluate it according to the criteria established to protect the interests of Canadian taxpayers.

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

In the Atlantic provinces, there are major francophone communities and their economic vitality is crucial to ensure they thrive in a minority situation. How will ACOA honour its responsibilities given these cutbacks of $17 million?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

It will not be difficult because ACOA is already very sensitive to the fact that amongst the communities it serves in the Atlantic, several are francophone communities living in a minority situation. I myself am from one of those communities. In good times and in bad, ACOA invests about $13 million in French-language communities living in a minority situation in the Atlantic region. Furthermore, with the adoption of Heritage Canada's Roadmap for Canada's Linguistic Duality, we benefit from increasing amounts every year to top up our contributions to minority situation communities. In that way we can ensure their economic development, by helping entrepreneurs in all areas, whether that be in the arts, culture or economic development.

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

Thank you very much.

[The Chair, Conservative, David Sweet]

The time is up.

Thank you very much, Minister, and Mr. Leblanc. I appreciate your time here before the committee, and thank you, members, for your questions.

Now I'm seeking some advice from the committee. If you want some debate over the votes, then we'll have to take up some time at the next meeting. Do you have any other concern around that or would you just like to have them deemed adopted?

I'm just waiting for some direction.

We'd have to do them as a collective right now if you wanted to finish them at this meeting, those being the votes under Industry, the votes under the Atlantic Canada Opportunities Agency, and the votes under the Economic Development Agency of Canada for the Regions of Quebec, and Western Economic Diversification.

[An hon. member]

Why don't we do them at the next meeting?

[Dan Harris, NDP, Scarborough Southwest, ON]

We're already at 10:45 now.

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

Are you guys trying to decide?

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Chair, are we still within the deadline within which the committee can approve them?

[The Chair, Conservative, David Sweet]

Yes.

So we'll put some time aside at the beginning of the next meeting to deal with them.

The meeting is adjourned.