Industry Committee on May 2nd, 2013

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

I thank my colleague.

Thank you, Mr. Chair.

I would like to talk once again about the appearance of the voluntary code of conduct in budget 2013. It is somewhat surprising because it is a code of conduct, not a program. It is not a department, but it is there. We now know that 64% of economists in Quebec were questioned on the subject. Nearly 80% of the members of the Association des économistes québécois are more or less or completely of the view that the excessive charges that credit-card-issuing companies levy on merchants should be regulated.

Once again, we do not see that. We do not see any will in the budget to introduce regulations on this issue, despite the fact that, once again, there is a virtual consensus within the industry. There is a universal consensus among the merchants' associations. Only the CFIB says that the code may work one day, but the retailers, service stations and others say this must be regulated. What is your thinking on the idea of ultimately adopting regulations?

[John Knubley]

Mr. Chair, once again, that is a matter for the Department of Finance.

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

All right, but it also concerns SMEs. They think that the fees are excessive.

[John Knubley]

Taxes and credit cards are often the responsibility of the Department of Finance and Minister Flaherty. I am not aware of the matter, but we can nevertheless request—

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Chair, there are two subjects here. There was the impact of the Canada Job Grant, which is specific to SMEs. There are also the implications of the non-regulation of credit cards, and Mr. Knubley suggests following up on those two questions. Can we ensure that this is tabled with the committee and that we can receive documentation on these two subjects?

[The Chair, Conservative, David Sweet]

What kind of follow-up would you like?

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Knubley has offered to provide follow-up on both topics. A few seconds ago, he spoke about the non-regulation of credit card fees. There is also the Canada Job Grant and the inequality that causes between large and small business. In both cases, Mr. Knubley said he could provide other information to the committee. I would be very interested in receiving it.

[The Chair, Conservative, David Sweet]

Okay, on the credit card issue, I think Mr. Knubley just answered that. That's the Department of Finance, but if there is something he would like to forward, that's fine.

On the other issue, do you have some information you could forward to the committee that I could distribute, Mr. Knubley?

[John Knubley]

Again, we'll have to touch base with the Department of Finance to determine what can be done there.

Marie-Josée, perhaps you could just speak more generally about the role we have with respect to small business.

[Marie-Josée Thivièrge, Assistant Deputy Minister, Small Business, Tourism and Marketplace Services, Department of Industry]

I thank the members of the committee.

Essentially, all questions and issues concerning the SMEs are a horizontal responsibility of the Department of Industry and other federal departments and agencies. Our role is to conduct an overview of what is going on, but certain responsibilities and decisions fall specifically to other departments and agencies.

Industry Canada manages a portfolio of programs and services such as the Canada Small Business Financing Program, for example. The Business Development Bank of Canada is part of the Department of Industry's portfolio. The Canada Youth Business Foundation, which we briefly talked about earlier, is also under Industry Canada's responsibility. The BizPal, or PerLE program, which Minister Bernier referred to, is a service offered in partnership with the provinces and municipalities. We administer that service. There is also the entire question of the National Research Council's industrial research programs. The Canada Business Network is part of Industry Canada.

Several programs and services fall under the responsibility of Minister Paradis and Minister Bernier. Other programs have an impact on SMEs and are part of a government plan, but the measures as such are the responsibility of another department or minister.

[The Chair, Conservative, David Sweet]

Okay, we're way over the time for this, and I need to allow Mr. Regan to have his five minutes. I think this is the best way to settle this.

If you'll just look at Mr. Lapointe's testimony for anything that falls within the purview of your responsibility and submit any additional information to the committee, that would be great.

[John Knubley]

I'd be happy to do that.

[The Chair, Conservative, David Sweet]

Submit it to the clerk, yes. Thank you very much.

Mr. Regan, you have five minutes.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you very much, Mr. Chairman.

The minister mentioned a Wall Communications study done for Industry Canada in relation to cell phone costs in Canada. That's Wall Communications. Can you tell me how much Industry Canada paid for this study, was it sole sourced, and are you able to provide the committee with a copy of the report?

[John Knubley]

We'll have to look into that and come back to you. I'm not aware of these specifics. We'll provide that to you.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you.

In relation to the changes proposed to the Investment Canada Act, in December after the CNOOC decision the rules changed for the energy sector. Does Bill C-60 extend these changes to all other sectors? If so, why? If not, why not?

[John Knubley]

I think that, again, going over what happened in terms of the announcement of December 7th by the Prime Minister, basically the government announced clarification to the foreign investment review process, particularly in terms of state-owned enterprises. The bottom lines are that investments in the oil sands will be, if not of net benefit, only on exceptional basis. Any other state—

[Geoff Regan, Liberal, Halifax West, NS]

This is strictly to the oil sector? It's only the oil sector, right?

[John Knubley]

Actually, it's very specific to the oil sands.

[Geoff Regan, Liberal, Halifax West, NS]

It's the oil sands.

[John Knubley]

Then for the other sectors, the rule we have is that we monitor carefully any other state-owned enterprise acquisition in the natural resources sector, but indeed any sector.

[Geoff Regan, Liberal, Halifax West, NS]

Okay.

[John Knubley]

Maybe it's helpful for the committee to be aware that the two tests are really related to the commercial orientation of the state-owned enterprise, as well as demonstrating what kind of relationship it has with the home country.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you.

Mr. Knubley, the Regional Municipality of Durham has written to the minister asking that he set aside rural areas from urban areas, and deal with them separately in the next spectrum auction this fall, to ensure that rural Internet providers can avail themselves of much-needed licence spectrum.

It seems to me that if you really wanted to end the way spectrum licensing discriminates against rural Canadians, the minister would review this policy of bundling rural and urban together. Is the department considering this, or is the minister considering this?

[John Knubley]

We're really undertaking a broad set of consultations on all these issues, and I think the short answer is that certainly this issue of rural coverage and implications is one we're taking very seriously.