Industry Committee on May 3rd, 2018

[John Knubley]

I'd be happy to answer that, Mr. Chair.

In terms of the mains, there's $36.4 million dedicated to FedNor. In terms of a northern strategy, Minister Bains, I think it was three weeks ago, was in northern Ontario and announced a new northern Ontario development plan as part of the work that they're doing.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Yes, I heard that. The $36 million puts us at less than 50% of where we were with FedNor's budget 10 years ago, so that's very troubling. However, I'm very concerned about this announcement, that it's all out of Minister Bains' office. Hey, I like Minister Bains. He's a great guy. But I don't believe that a minister in Mississauga is going to be making decisions for the small communities of the north, because your government tells us that these decisions are going to be in line with its national priorities. The reality in a rural isolated community in the far north is completely different. We need small development. When a mine shuts down and we lose 300 jobs, we don't get 300 jobs back. We get five. We get six. We get eight. However, I see that your priority—and it's been said by Mr. Bains—is to have investments in larger projects and in superclusters. Where are my superclusters in northeastern Ontario?

[Bardish Chagger, Liberal, Waterloo, ON]

I recognize that we each have an important role to play, and it includes rural and urban. It includes remote regions. It includes Canadians and indigenous. I know that we have work to do. We will continue pushing to do more. I will tell you that when it comes to the supercluster strategy, yes, there were five superclusters announced. Many communities—like the one I represent, Waterloo—are working closely with people that you represent as a member of Parliament. So, I can tell you that there is more to these communities than having the announcement made directly within them.

There are greater benefits. However, one thing is clear, and I will take that from your comments. It is that our country has to work together as a country. We have to recognize that there are huge opportunities—

[Charlie Angus, NDP, Timmins—James Bay, ON]

I totally get that.

[Bardish Chagger, Liberal, Waterloo, ON]

—and for you to make the comment that a minister from Mississauga cannot respect or appreciate FedNor—

[Charlie Angus, NDP, Timmins—James Bay, ON]

I didn't say “not respect”. It's that we have a different economic issue because you.... I'm just saying—

[Bardish Chagger, Liberal, Waterloo, ON]

—I think is unfortunate because I'll tell you that I did chair....

The other comment I made was that for the first time we had presidents from all different RDAs, including yours that you were referring to, come together. Do you know what it made clear? It made it clear to each of them that what they saw wasn't the whole country.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Okay, I get that. Sorry, I'm running out of time here.

The issue is that—

[Bardish Chagger, Liberal, Waterloo, ON]

It made them take things seriously. We can't just look in our backyard. We have to look at the whole country.

[Charlie Angus, NDP, Timmins—James Bay, ON]

I'm sorry if I insulted the minister. However, to take away the FedNor minister, to not mention FedNor, and to tell us that a minister can run all this out of his office in Mississauga and understand the realities in communities like Red Lake, to me, is not credible because when I look at what you're presenting to me, I see that you're looking at your national priorities, which are to be China ready and to have superclusters.

I'm sure there are great jobs in Waterloo, but it doesn't reflect the reality of isolated rural communities. We need that rural lens. We need a FedNor agency, and we have less and less from your government all the time.

[Bardish Chagger, Liberal, Waterloo, ON]

You've been here a long time, so you know that there is a FedNor agency. You know that it's located in northern Ontario. You know that they know the community very well—

[Charlie Angus, NDP, Timmins—James Bay, ON]

But if the minister is running it—

[The Chair, Liberal, Dan Ruimy]

Thank you all very much for playing.

[Bardish Chagger, Liberal, Waterloo, ON]

Rather than have the government of the day, the elected official, change priorities, that community is able to represent themselves very well.

[The Chair, Liberal, Dan Ruimy]

Thank you very much.

We're going to move to Mr. Sheehan.

You have seven minutes, please.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you very much.

Minister, speaking of northern Ontario, when you were in Sault Ste. Marie about a month and a half ago, you had the opportunity to have a round table with small business and tourism businesses. There were a lot of things that were discussed at that particular time, including FedNor. It actually has received an increase for the first time in a decade: $53 million over the last two years. In 2016 and 2017, it was $25 million and then $28 million.

You also heard about the strategic innovation funding for northern Ontario that Minister Bains brought: $87 million for the colleges and universities located in Timmins, Sudbury, North Bay, Sault Ste. Marie, and Thunder Bay. You also had an opportunity to visit Bon Soo. Bon Soo is one of the best winter carnivals in Canada.

Minister, could you please share with this committee some of the remarks that you made in regard to small business and tourism as it relates to northern Ontario and all businesses across Canada?

[Bardish Chagger, Liberal, Waterloo, ON]

I thank you for that invitation to the north to have that visit. It was great, because there were so many communities to visit. What was fascinating to me, and I hope people really absorb this, was that when I spoke to local people in those communities, especially young people, they wanted to know that they're part of the solution. They wanted to know that the government takes them seriously, and we do. Every single time, when they hear about “not opportunity” or “not investment”, they don't see the opportunities for them.

What we wanted to share, and what we will continue to do, is to have confidence in FedNor people, who know those communities better than any elected official. They know what strategic investments we can make to ensure there's maximum benefit to those communities.

This government is not going to be about announcement; this government is going to be about results. That's why we see our economy growing the way it is. That's why we see that Canadians have created 600,000 jobs. That's why we're seeing the lowest unemployment rate in 40 years, because there are huge opportunities there.

The people who are in your riding and ridings across the country are hard-working Canadians, and what they need is a government that listens to them. Our doors will remain open. We will continue to communicate with them.

I'll tell you, at Bon Soo the bum slide was quite an adventure. I've seen nothing like it, and I too will say that it was probably one of the best festivals I've been to. That festival is an economic driver, bringing people in from across the country.

For the first time in the history of our country, we have a government that takes the tourism industry seriously. We're talking about 1.8 million Canadians employed in the tourism industry, 200,000 small businesses across this country, including in small communities and big communities. It's the lifeblood of our small communities, and we'll continue to ensure that industry continues to succeed.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

At that round table, we had representation from women entrepreneurs there as well. As you know, I worked with the Economic Development Corporation. I was the manager of entrepreneurship. I had my own small business, and I also taught entrepreneurship at the college.

Women traditionally...I mean they're over half of the population percentage-wise, but they represent a very small amount of small business owners and entrepreneurship. In your presentation, I think you said it's 16%, and in some areas it's smaller.

What is this government doing to try to increase that opportunity? I can tell you that those women you met with are probably some of the most successful entrepreneurs I've ever worked with.

[Bardish Chagger, Liberal, Waterloo, ON]

That round table was an essential one because of that conversation and because of the regard and respect in that room. I've heard from a couple of them since with regard to the women entrepreneurship strategy, because they heard their feedback reflected right in the strategy that we are advancing. We're talking about close to $2 billion for the women entrepreneurship strategy, because we want to see the number of women-owned businesses double by 2025. The 16% just isn't good enough. We want to do that in the right way.

The women entrepreneurship strategy is making strategic investments, including in regional development agencies, so $105 million will be committed to women entrepreneurs to ensure that in regions across the country they are benefiting.

The Business Development Bank of Canada has been given a goal to really be able to invest $1.4 billion over three years in new financing to women-owned, majority-owned businesses. Once we pushed the Business Development Bank of Canada to do that in our early days, it was able to surpass its goal of $700 million in just under two years, which made it actually end up putting, I think, $826 million into businesses owned by women.

We've also increased the women in technology fund, which benefits every single community across the country, because technology is everywhere. That's why I will say it is good when members ask about the definition or about what we see. Technology is a source for good. We need to embrace it. The $200 million over five years will see women in business, in tech businesses across the country, encouraging the next generation to see themselves in those businesses that want to help grow their communities and create jobs in their communities.

That conversation is why we travel the country and why we consult. We need to hear the nuances of every single community. It comes back to the RDAs needing to work better together, because their region is a part of the country. We need the entire country to succeed, and that means the approach of this government is to ensure that the person who needs the hand up gets the hand up. If it is rural and remote communities that we need to make sure we are representing better, we are going to ensure that we reach out and engage with those communities so that their voices are being heard in Ottawa and so that the programs and services reflect them.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Great. We also heard from Ian McMillan, the head of Tourism Sault Ste. Marie, that you had announced that in the Sault Ste. Marie area, the tour train was a part of the Rendez-vous Canada experience.

The Asian market has increased significantly in northern Ontario. Japan has picked the area as one of the top 10 destinations. What other efforts and opportunities are there to penetrate the Asian market in these upcoming estimates?

[The Chair, Liberal, Dan Ruimy]

You have about 20 seconds.

[Bardish Chagger, Liberal, Waterloo, ON]

One of them is clearly the Canada-China year of tourism. What we've done is rather than going after the typical centres, we're showcasing the entire country. The Chinese market is the largest source for tourists. What is clear is that we need to find the tourists that want to make sure that they are visiting the Soo or going to the north. We are working better with Destination Canada to ensure that the people who want the information to get to these other communities in our country are able to obtain that information. The tourism vision is helping to do that to ensure that we are focusing on marketing, access, and products. I look forward to those communications.

When you have, I think, 1.7 billion people in China, I can promise you that they're not all looking to go to a large urban centre. They want to see the open land. They want to see the Soo, and I will encourage them to come and visit communities across the country.

[The Chair, Liberal, Dan Ruimy]

Thank you very much.

We're going to move to Mr. Lloyd.

You have five minutes.

[Dane Lloyd, Conservative, Sturgeon River—Parkland, AB]

Before I start, Mr. Chair, I want to say I'll be splitting my time with my colleague.

Minister, I've had the pleasure of travelling across this country, including out in Sault Ste. Marie, and everywhere I go it's difficult to find campground space. You mentioned that your government is cutting small business tax rates, but your government's regulations have also increased taxes on some campgrounds by up to 300% by removing the small business tax deduction.

How do you square your commitment to increase tourism by $21 million by 2021, when your government's policies have resulted in the shutting down of private campgrounds across this country?

[Bardish Chagger, Liberal, Waterloo, ON]

I would respectfully disagree. This government will continue to fight for small businesses. We know that they are job creators. They create jobs in every single community.

The Minister of National Revenue has clearly stated that when it comes to the one-offs that you're referring to, they're working closely with them. We will continue to do that.

We want to ensure that we have a fair tax system that works for the very people who create jobs. We want to ensure that the small business tax rate works for small businesses because, once again, they are the backbone of the economy, and we are going to ensure that their voices are heard.