Industry Committee on May 18th, 2017

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

My information may be incorrect. Is that right?

[Kelly Gillis]

I would like to know specifically what you're quoting and then I can look at the numbers and perhaps provide an explanation. But if we look at ISED as a department, we're increasing overall.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

We'll get to this. Maybe we can switch to a different area. Apparently money is going to marketplace framework and regulation, because you mentioned, Minister, that one of the top priorities of groups like CFIB is obviously red tape. Can you explain what marketplace frameworks and regulation is and what it's supposed to do?

[John Knubley]

Minister Bains will have a chance to speak to this issue. In terms of the Canadian free trade agreement the CFIB recognized that the culmination of the new agreement was worthy of an award, and the CFIB gave Minister Bains, as well as other ministers, provincial ministers, a Golden Scissors award.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

To Ms. Gillis' earlier intervention, I am looking at the estimates, and it is in part II of the main estimates, II.117 specifically. Two items come under this. One is marketplace frameworks and regulations, which under the 2017 main estimates is at $73,477,129, and right underneath that, marketplace competition and investments is at $41,903,401.

These are clearly under your particular department.

[Kelly Gillis]

Correct. So if I look at marketplace frameworks and regulation, which last year was $66 million, compared to this year which is $73 million, there's an increase. It includes Measurement Canada, Consumer Affairs, and the Canadian Intellectual Property Office. These activities also include the Superintendent of Bankruptcy and Corporations Canada. An increase from last year is primarily due to planned investments to modernize the Canadian Intellectual Property Office's IT.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

So there's an increase, okay. That's nice to know.

[Kelly Gillis]

There's an increase. Yes.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

With regard to red tape initiatives, Minister, I've heard almost nothing from your government's regulatory advisory committee with regard to the Red Tape Reduction Act. Is that something you work on with the President of the Treasury Board?

[John Knubley]

Yes, we work directly with the Treasury Board. The Treasury Board is the lead in these activities. As I mentioned, I think two issues that have come up demonstrate the kind of work we're doing on regulatory issues. One is intellectual property, and the second is the Canadian free trade agreement, where we've negotiated a new instrument with the provinces to constantly review regulations within Canada on an ongoing basis.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Could you describe some of the things in that agreement that would have a small business application?

[John Knubley]

As I mentioned, I think this should be raised with Minister Bains.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

That's fair enough. Thank you.

[The Chair, Liberal, Dan Ruimy]

All right. We are going to move on to Mr. Jowhari. You have five minutes.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Thank you, Mr. Chair.

Good morning and welcome, Minister.

Minister, yesterday I had the opportunity to attend the public safety committee, which is currently studying Bill C-23, An Act respecting the preclearance of persons and goods in Canada and the United States. One of the witnesses was the Tourism Industry Association of Canada. The association believes that the Government of Canada should do all it can to improve border access and infrastructure, built on the pre-clearance services and trusted traveller program to increase tourism. Having said that, Minister, what views do you have as to the positive impact that pre-clearance can have specifically to increase U.S. tourism to Canada?

[Bardish Chagger, Liberal, Waterloo, ON]

I hope it was a good meeting. I work really closely with Charlotte, who is the head of the Tourism Industry Association of Canada, which is also known as TIAC. The TIAC team and Destination Canada work really closely together as well. It really helps us to strengthen the tourism industry.

We recognize the importance of the U.S. market as our number one source for tourists, and that's exactly why we've expanded the marketing efforts through the connecting America program. We also know that a secure, well-functioning border is essential to that experience. When people have a good experience visiting our country, they will keep coming back, and that's why I am working closely with Minister Goodale as well. We know that 70% of international tourists come from the United States, and we don't mind seeing that number grow. Overnight trips of air travel from the U.S. have increased 17%, and we would like to see that number continue.

Pre-clearance is something that I believe is essential, not only for the tourism industry and tourists who are travelling, but also for our small and medium-sized businesses, which talk about the red tape and the burden. You are going to be able to have your goods and services pre-cleared prior to hitting the border, which means they do not have to leave your sight. I think that's a great thing.

For the tourists, the minute they are booking their travel or considering coming to visit Canada, they can start their pre-clearance process as well. It takes minutes. It's actually not very complicated. That's when they will know if they can have a really easy go at the border or if it might be a bit of a challenging time, and they can plan for that accordingly. I believe the numbers of people who are getting pre-cleared are quite high.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Okay, great.

The next question is about the small businesses and the partnership between.... As the small businesses grow, we get them funding through the BDC, and we've allocated about $400 million to support that. Now, they grow and they need to get into the market outside of Canada. Therefore, EDC comes into play.

How do you envision tourism Canada, EDC, and small businesses going hand in hand to help us grow these small businesses?

[Bardish Chagger, Liberal, Waterloo, ON]

That's exactly the challenge. That is why we are taking a whole-of-government approach, where all ministers have to work together. It's not a matter of solving a problem here and creating a challenge there. It's about coming to the table and serving in the best interests of all Canadians.

We do very well at starting up businesses. This government is putting a focus now on scaling them up so that we can actually see that growth. It's interesting, because when you talk to our entrepreneurs and our small-business owners, you see that they want to grow their businesses. That is part of the success, and they want to create jobs in the communities.

The accelerated growth service, AGS, is a program that we've brought in. We're talking about 20 federal departments and agencies coming together to save the entrepreneur time, with a single person who knows your business, knows you, and is able to help you go through the pipeline of the programs that the government has. Something we hear often is that people don't know about the government programs, and we are going to ensure that they do. The AGS has helped 150 high-impact firms to scale up and grow their businesses. The broader goal of the AGS is 1,000 firms.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Okay, thank you.

I'll give you 45 seconds.

[The Chair, Liberal, Dan Ruimy]

Thank you very much.

We're going to move to Mr. Masse. You have the final two minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair, for this second opportunity.

I'll return to the tourism aspect for a bit. You mentioned Minister Goodale. We've been trying to improve tourism regionally. Recently, we were successful in getting a bike lane on the new Gordie Howe bridge, which will help ecotourism. Cyclists have the most disposable income for tourism. That was a good thing that took place.

One of the things we've been trying to work on is a passenger ferry between Windsor and Detroit. I've been working with Senator Peters over the years. There has been a bit of resistance related to the customs aspect of it.

Is there a process in your department to do at least some type of study or evaluation of the tourism potential related to this? We have had official meetings, and there have been discussions of expenses. The port authority of Detroit actually has an area for both customs on one side. It has been built. They have over $1 million for this.

I would ask whether there would be a role for Tourism to examine this, especially as most of it fits with small business too. Some of it falls under Transport as well, so there are several departments. I will leave it at that, as a question to you.

[Bardish Chagger, Liberal, Waterloo, ON]

Oh, it's a question. Okay.

[Brian Masse, NDP, Windsor West, ON]

Well, the question is whether there is a role for your department to get involved somehow in the evaluation and further examination of the idea.

[Bardish Chagger, Liberal, Waterloo, ON]

We finally have a full Minister of Small Business and Tourism, so of course we will be at that table. I would think that Transport or Infrastructure would be in the lead, and then we would be at the table to ensure that our voice is represented so that we can show the economic impacts and benefits to the country.

[Brian Masse, NDP, Windsor West, ON]

Right, but if we have buy-in from the United States on this, is there a part of your department that will help with—