Industry Committee on April 29th, 2020

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Thank you, Ali. It's a pleasure to see you virtually and to answer questions.

First and foremost, what we're saying to entrepreneurs across this country is, the first thing they should be doing is to go to see their bank. If that's not working, definitely the BDC is there to help. Obviously, there is the $40,000 CEBA, of which $10,000 is forgivable, and there is also the wage subsidy. The good news is that businesses can register for it since Monday. As of this morning, there were 50,000 businesses that had used the wage subsidy.

I think the chair is indicating that I don't have enough time, but I can answer other questions regarding the $962 million.

Thank you, Ali.

[The Chair, Liberal, Sherry Romanado]

Thank you, Minister.

For our next six-minute round, we have Sébastien Lemire.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Madam Chair.

My first question will basically be about the same subject, so that the minister can finish her remarks.

My concern is a simple one and deals with very small businesses. A number of those businesses are general partnerships, or ones that pay salaries in the form of dividends. They are also falling through the cracks of the programs that have been announced because they are not eligible for them. At least, it is difficult to find the right fund that can assist them. This is particularly the reality with producers where I live. I will come back to that later.

I was pleased to see the announcement of a measure designed to meet the needs of very small companies. You talked about that fund, which is intended to help rural communities by providing them with access to capital. However, it was mentioned in a news release on April 17, 2020. More than 12 days later, we are still waiting for the details. How will it work? What will be the eligibility criteria?

The advantage for people in going through the SADC network, is that those organizations are in direct contact with the entrepreneurs who need their assistance. It allows them to obtain more flexible support that is better tailored to their reality.

However, they are asking me the same question: when will the flexible assistance measures be available for them?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Thank you for your question, Mr. Lemire.

We have often had the opportunity to discuss things together in recent weeks, and, of course, I have heard the arguments in favour of increasing the funding for the SADCs in Quebec. I know that my colleague Marie-Claude Bibeau has also been working very hard on the issue. We were all in favour of increasing funding to the SADCs.

Quite clearly, the objective of the SADCs is to be present in rural communities and to help entrepreneurs and businesses that need access to liquidity and funding. So we are going to increase their funding in a major way. I have had the opportunity to speak with Hélène Deslauriers, the president of the SADCs, and she is very happy with the new funding.

Essentially, these will be loans that come with conditions similar to the ones in bank financing, which is to say a loan of $40,000 plus salary subsidies. However, we really wanted to cover the companies that have difficulty meeting the eligibility criteria. We have therefore hugely expanded the social net. Now, we are tightening the mesh in the net so that no one is excluded. That's our objective. Money that can be sent to the companies will be available very soon.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Could we on this parliamentary committee not have a little hint as to the date when that money will be available? Just between us?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

The little hint, my dear colleague, is that it will be available very soon.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

I would like to expand on this issue by talking about agriculture. I am from a rather rural constituency and I have been in contact with the producers in my region. I asked them how we could help them and what kind of requests they might make, especially with regard to agricultural work.

There was an announcement about Canada Summer Jobs that said that 100% of salaries would be subsidized and that there would be a new period during which employers could make their intentions and their needs known, in terms of hiring students. However, with no increase to the program budget, that just creates new needs. As MPs, we were not able to answer the farmers' questions. More than 60 or so producers in my region, which is almost 15% of them, replied and told me about their major need for labour. Unfortunately, because of the size of those companies in the region, the assistance provided by the current programs is not enough.

So there are questions about the assistance programs in terms of labour. Could there be a program like Canada Summer Jobs, but designed more for student jobs in agriculture? How could we improve the temporary foreign workers program, especially in the regions? How could we make sure that we meet the labour needs of farmers? Is there a solution that would allow salaries to be subsidized so that seasonal workers can maintain their connections, in terms of employment and loyalty?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Thank you for your questions.

We have been heavily reliant on temporary foreign workers for years. We have to face a particular challenge at the moment, because we know that there will be fewer of those workers. In April, for example, we brought in 11,000 of them whereas we were expecting 13,000. So things were fine in April, but the challenge is greater for the coming months. Today, we received excellent news about the workers from Guatemala, who will be able to obtain their visas when they arrive in Montreal. That is encouraging, because it makes our task a lot easier. The company called FERME Québec was certainly very happy, delighted, with the change we have made in our procedures.

We want to encourage Canadians, students included, to work in agriculture more. That is why we have established a new platform called Step up to the Plate; it will allow people with an interest in agriculture to find access to various employment portals.

As for summer jobs, the constituency I represent, which contains 36 municipalities, is experiencing much the same situation. So I fully understand what you are saying. We are very interested in this. This exercise is going to allow us to get a better understanding of the expectations or needs, and of the employment possibilities for our young people. Later, we will see what we can do if that is confirmed, as we are sensing in regions like mine…

The internships…

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Minister, allow me to interrupt you.

Will the government be announcing a complementary program for jobs in agriculture this summer?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Let me remind you that we have announced a transfer of federal funds to the provinces, so that the Government of Quebec, for example, can use a part of those funds for the wage top-up of $4 an hour for essential workers and agricultural workers.

[The Chair, Liberal, Sherry Romanado]

Madam Minister, your time is up.

Our next speaker is MP Brian Masse.

You have six minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

Thank you, Madam Ministers, for being here.

Minister Joly, my question is similar to the one with regard to the Business Development Bank of Canada. I'm glad you raised it, as it is your department's responsibility.

Recently the department offered loans under the government's liquidity programs at prime minus 1.75%, but quietly raised their rates this week to prime only, effective May 1, and took the 1.75% reduction reference off their website.

Are you aware the BDC is raising its rates for small businesses in Canada during the crisis? Did you approve of this decision?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I didn't want to say the BDC was under my purview. It is not. This is not what I said. Maybe the translation was an issue. It is under the purview of my colleague, Mary Ng.

What I said is that if businesses are falling through the cracks and are not able to have access to the BDC, they can then turn to their regional development agency, which includes in your neck of the woods, Brian, FedDev. Definitely, there's funding for them there.

That would be my answer.

[Brian Masse, NDP, Windsor West, ON]

We do have that, but how do you feel about getting more businesses coming to your programs? Who should they call then?

For example, I have a business in my riding, Morton Wholesale, which does food distribution. They compete against American giants with regard to food services in southern Ontario. The BDC program is not favourable, nor are the ones that you've offered. Who do they contact specifically to get some assistance?

Also, how do you feel about the rates being raised by the BDC on the small businesses you're trying to help?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Definitely, they should contact their bank. That's always the first thing.

Regarding the BDC, it's the first time that I've heard that. Thank you for raising that. I'll definitely follow up with Minister Ng on that question. We know that we have to be there for businesses. There's a cash crunch right now. The burn rate of businesses is very high because fixed costs are high. We are trying to address that through the wage subsidy, through rent relief. Definitely we need to make sure that credit is available and available fast.

By the way, Brian, I just wanted to mention that I had a chance to talk with the mayor of Windsor, Drew Dilkens—

[Brian Masse, NDP, Windsor West, ON]

I have limited time.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—and he actually mentioned the importance of having liquidity very fast for all businesses.

[Brian Masse, NDP, Windsor West, ON]

I appreciate that. I don't mean to cut you off, but I have limited time here.

Again, who do they contact in the development agency? Who is your point person for those that fail the bank programs?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

They go to the Canada.ca website, under the regional development agency, or the FedDev—

[Brian Masse, NDP, Windsor West, ON]

Do we not have a specific person down here?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I don't know that person personally.

I know my deputy minister in charge of FedDev is James Meddings, and he's based out of Kitchener-Waterloo, not out of Windsor, but it's coming.

[Brian Masse, NDP, Windsor West, ON]

That's okay. That's all good. I just need to follow up on that.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

We'll find the name and send it to you.

[Brian Masse, NDP, Windsor West, ON]

Thank you very much. I do appreciate it, and I do appreciate you making local contact here.

One thing that has happened in the tourism sector this year is that the Canada summer jobs program was changed, with the result that we have fewer net jobs for students and fewer net placements. The funding wasn't increased. What happened is that the payment went up to 100%. For ridings such as mine, for every job we have under this placement, we are denied four others because the need is that high.

What do I say to those tourism industries that are now asking for Canada summer jobs, when actually, under COVID-19, we will have fewer students getting jobs and fewer placements that get jobs?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Well, there are different things. Canada summer jobs are very important and we've increased the number of Canada summer jobs. If there are more specific questions, obviously Carla Qualtrough, the minister in charge of the program, could answer your questions.

What we've done, though, for the tourism sector is, first and foremost, engage with them, because they've been hard hit. I agree with you that the tourism sector in your city has been hard hit. They're the canary in the coal mine. They were the first hit and they'll be impacted also in the future. Therefore, we're working to make sure that the Canada emergency business account, the wage subsidy, rent relief, all the measures we're coming up with, are targeted for the tourism sector.