Evidence of meeting #28 for Industry, Science and Technology in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was amendments.
A recording is available from Parliament.
Director General, Investment Review Sector, Department of Industry
I don't think the act deals with intentional or unintentional. This is a method by which a business could be acquired.
Conservative
Ted Falk Conservative Provencher, MB
Then it says “the Governor in Council can take measures for national security”. What kind of measures could they take?
Director General, Investment Review Sector, Department of Industry
The national security review process goes through the Governor in Council at two stages. First, to order a review if the Minister of Industry makes a recommendation based on consultation with the Minister of Public Safety. Second, if there is a review, the Governor in Council has the authority to make any order it considers necessary to protect the national security of Canada.
Conservative
Director General, Investment Review Sector, Department of Industry
It could be an order to divest what a foreign entity had acquired, yes.
Conservative
Ted Falk Conservative Provencher, MB
Thank you.
Mr. Halde, BDC, I want to recognize the good work you're doing providing creative solutions—
President and Chief Executive Officer, Business Development Bank of Canada
Thank you.
Conservative
Ted Falk Conservative Provencher, MB
—for family succession, often of Canadian-owned businesses. I want to recognize also that 80% of our employment is created by SMEs. I want to encourage you to fulfill the role of non-traditional lending that the banks and credit unions provide for SMEs.
Could you expand a little on how your organization is doing that?
President and Chief Executive Officer, Business Development Bank of Canada
Sure.
Generally our risk appetite is higher than that of the banks. We tend to take a layer of risk that is not something they're comfortable with. We will charge, we will price for that risk. We also are trying very hard to do what's called a hybrid instrument like quasi-equity to do exactly what you've just discussed, which is to enable a management team to purchase the business from the owner so the business can continue in Canada. We're very focused on trying to come up with new, novel ways of helping Canadian entrepreneurs and yet at the same time remain profitable.
November 6th, 2014 / 10:20 a.m.
Conservative
President and Chief Executive Officer, Business Development Bank of Canada
We've been very proud of our track record. We're helping an awful lot of entrepreneurs every year. There's not a single client event that I go to where people won't say they're glad we were there because when the going was tough, we stayed with them, helped them during the recession. We increased our lending by 53% that year simply because some of our colleague chartered banks were a bit more careful than usual. We had to step in and be somewhat counter-cyclical.
President and Chief Executive Officer, Business Development Bank of Canada
No, we don't. Agriculture is handled by a farm credit. That's their bailiwick.
Conservative
The Chair Conservative David Sweet
You have 20 seconds.
That's almost expired too, Mr. Falk.
Why don't I go over to Mr. Côté?
NDP
Raymond Côté NDP Beauport—Limoilou, QC
Thank you, Mr. Chair.
I would like to focus again on the issue of patents and industrial design.
Another aspect often brought up by witnesses during our study of the clauses related to intellectual property is the implementation date, which is set by order in council. Witnesses were very concerned by the fact that it can sometimes take a fairly long time for the clauses to be implemented.
I of course cannot ask you to give us an implementation date, but for the benefit of the public, could we get an idea? Would it be a time frame that can be counted in years?
Assistant Commissioner of Patents, Canadian Intellectual Property Office, Department of Industry
We will have to work on regulations that will support and complete the act. At the same time, we are working to modify our computer systems, improve our processes and document our practices. Internally, we already have a very rigorous action plan in place.
Obviously, we are not working alone. With the ratification of treaties, we must submit instruments to Geneva. There as well, we have already developed relationships with the World Intellectual Property Organization and, it goes without saying, with our colleagues from Foreign Affairs, Trade and Development. The table has been set, and the action plan is solid. However, we cannot control everything.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
I am aware of that. Everyone understands the scope of the work, but does the current process provide sufficient reassurance to the industry stakeholders?
Assistant Commissioner of Patents, Canadian Intellectual Property Office, Department of Industry
in 2001, Canada signed the Patent Law Treaty. These additional safety nets and that flexibility are most definitely desirable. We have never been so close to the goal. We are definitely being supported. Everyone is confident—and I would like to emphasize once again that we are working with our partners—that we will achieve our aims.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
Very well, thank you.
I would now like to come back to the Investment Canada Act, and, more specifically, to convincing the minister not to disclose certain information that might be prejudicial for an investor.
Is there currently a process to find out what arguments are made to the minister? In other words, is there a process that makes the minister accountable for what took place and for what allowed him to avoid disclosing information?
Director General, Investment Review Sector, Department of Industry
There is nothing in the act that requires the minister to disclose information about the information that wasn't disclosed. It's not part of the act. There is a requirement for an annual report under the act, but it doesn't include the national security provisions.
NDP
Raymond Côté NDP Beauport—Limoilou, QC
I will make no secret of the fact that as an MP for Beauport—Limoilou, I am dealing with a case of impunity related to the Port of Quebec. Indeed, I wish to remind committee members that donations totalling over $19,000 were made to the Conservative Party by executives from a company called Arrimage Québec. From what I gather, the minister may find himself dealing with a similar case when it comes to investors. He would hear arguments, but no one would know about it. There would be no accountability in this process.
Director General, Investment Review Sector, Department of Industry
I'm not sure. This is about prejudice to business in an order issued by the Governor in Council. The minister has the decision to make to be satisfied that it would be prejudicial and shouldn't be disclosed. It's not the investor or the Canadian business that decides. They have an obligation without delay, so right away, to explain to the minister what their concerns are and then the decision in the act is with the minister.
Conservative
Mike Wallace Conservative Burlington, ON
Thank you, Mr. Chair.
I will focus my questions very quickly on BDC.
First of all, you have a mandate to return a profit to the taxpayers of Canada. Is that correct?