Industry Committee on April 29th, 2020

[Brian Masse, NDP, Windsor West, ON]

Okay.

Can you follow up on this, in particular for the tourism sector? They rely on Canada summer jobs and they actually prefer that program, but because of the terms and conditions of the program changing to cover 100%, we actually have fewer placement hours because we're picking up more of the costs. I'm hoping the government tops that up, and then you would not have a reduction of students and placements.

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

Brian, I'm convinced you'll be able to talk to Carla Qualtrough about it, but I'll also follow up on it. We can work together.

[Brian Masse, NDP, Windsor West, ON]

I appreciate that. We just need a champion for tourism, because it's really important.

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

You do have it.

[Brian Masse, NDP, Windsor West, ON]

Okay, thank you.

With that, I know I have a brief amount of time, but I'm going to turn to something I brought up last time: single-event sports betting.

That law needs to be changed, or $8 billion to $10 billion will be lost to organized crime and offshore when this pandemic concludes and a move back to single-event sports betting takes place. Will the government change this law?

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

I know you submitted a private member's bill in the last Parliament about that. We had the chance to talk about it after my last INDU committee appearance, and I had the chance to talk to the Minister of Justice. I look forward to continuing conversations. Meanwhile, with the tourism sector being so hard hit, we have lots to do also to help the tourism sector.

[Brian Masse, NDP, Windsor West, ON]

It's one line in the Criminal Code.

Thank you, Madam Minister.

[The Chair, Liberal, Sherry Romanado]

Thank you so much.

We now move to MP Dreeshen for five minutes.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Thank you very much, Madam Chair.

Madam Ministers, thank you so much for being here.

Minister Bibeau, last week a spokesperson for Agriculture and Agri-Food Canada told the CBC that the federal government is developing a new aid package for the ag sector, with an announcement expected extremely soon.

We recognize that we have situations where animal health is becoming a problem. We've seen the things that have happened in nurseries, where there are problems getting bedding plants out in the springtime. We have also seen massive investments in such things as tulips, and so on, and people are having to hang onto these things. Of course, grain farmers, especially out in our neck of the woods, are still trying to finish off last year's crop before they start putting in this year's crop.

Farmers need some assurances that they can plant their crops this spring or send their livestock to market and that the COVID-type stressors have been recognized and are being compensated for. They can't wait for things to roll out at normal government speed.

Really, the key thing is this: Can you tell farmers today that this so-called new aid package that was announced is going to come here in the next two weeks and that it's going to have some meaningful measures to assist this vital sector of the economy?

In addition to that, as far as business risk management is concerned, we know that AgriRecovery is something that might be considered, but is the federal government going to be taking the lion's share of that cost?

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

Thank you, Mr. Dreeshen.

I can tell you that we are working very hard to bring additional measures to support the different sectors of agriculture. You mentioned the meat sector, and along with fruits and vegetables, these are very important and facing very important challenges right now.

It's a bit too soon for me to make any announcements. We still have different options on the table. We have these discussions with the provinces. I would say that, for today, I want to tell the farmers that, yes, we have their backs. We'll be there. They already have access to the business risk management.... I know they are not perfect and we're working with the provinces to improve them. But still—

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

That's great to know, but, as I said, the other point is when it comes down to the decision as to who ends up paying for this, a great commitment by the federal government is going to be required because it's shared between the provinces and the federal government.

On April 16, you noted that the government is examining efforts to get unemployed or underemployed Canadians into jobs on farms, given the pending labour shortages and the fact that many of the temporary foreign workers who would normally come here will likely have trouble doing so because of global travel restrictions. You just mentioned Guatemala a moment ago.

As you know, the planting season is already here, so within the next two weeks, are farmers going to see any tangible initiatives or programs to go along with that commitment of April 16?

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

Yes. As I said, we're working very hard to get as many temporary foreign workers as we can and it's moving in the right direction. It's encouraging but it still won't be enough. This is why we have put in place the step up to the plate portal, to encourage people to find jobs in the sector.

Once again, it's too soon for me to announce anything, but I'll just remind you that we have transferred from the federal to the provincial...for them to put in place measures to incentivize people to work in essential services, including the ag sector.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Thank you.

On the issue with processing plants shipping products and so on, we have situations here where, a week before this happened, cows would have been $1,400 and are now $700. We have situations where people are having to bring cattle back from the auction markets because they can't get bids. These problems are happening.

I just hope we don't talk about the $40,000 as being one of those main issues because it certainly is not something that is going to work. Of course, we have to make sure that we find animals that aren't being processed and that we have an opportunity to make sure that everyone is whole.

Thank you so much.

[The Chair, Liberal, Sherry Romanado]

Unfortunately, that is all your time, MP Dreeshen.

We now move to MP Jowhari.

You have five minutes.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Thank you, Madam Chair.

I'd like to welcome both ministers to our committee. Let's start with the question that my colleague asked.

Minister Joly, you are going to embark on the packaging...the $962 million. I have specific questions. What financial services or supports are available on top of the rent assistance and wage subsidy coming through these two programs? How are they distributed by region, and how do you make that decision?

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

Thank you, Majid. It's great to see you virtually.

The $962 million is great news. Usually, when you look at the budget for the regional development agencies, it's $1.3 billion. We're pretty close to doubling the budget. Usually the RDAs are there in times of...for the recovery, to really help in terms of stimulus. It is the first time that we're really using them to stabilize an economic situation.

It's $962 million, which is divided into $675 million for the RDAs themselves, and the RDAs administer a fund that goes to the community futures organizations. In some places in the country they're called CFDCs. In Quebec it's called SADC. That's why Sébastien Lemire was asking me questions about that. That's $287 million.

For that part of the $287 million, it's really for rural places, rural communities that sometimes don't have access to a bank. They don't have a bank, or the next financial institution is 100 kilometres away. The SADC and the community futures organizations are there to support the local gas station, the local hair salon or the local restaurant. They provide loans for smaller amounts that are key for rural communities.

For the RDAs in general, well, what we're telling Canadians is, if they don't have access to the wage subsidy, if they don't have access to the rent relief, if they don't have access to the CEBA—the $40,000—if they don't have access to the indigenous business funding, well, they should come and see us. They should go to FedDev in southern Ontario, FedNor in northern Ontario, CED in Quebec, ACOA in Atlantic Canada, WD in western Canada or CanNor in the great north, and we can help out through loans. Basically, we'll be taking a bit more risk than the banks can take because we know that we have to help our businesses and protect, quite frankly, our main streets all across the country.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Would they be the same programs but offered through the regional development agencies? They would be able to get wage subsidies. They would be able to get rent. They would be able to get access to cash. They would be able to get some money for working capital, but it just—

Go ahead.

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

The idea is to make sure that they're interest-free loans to businesses. That's the idea. The details will be unveiled very soon.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Okay.

How is the distribution to the six RDAs working? Is there a region that's harder hit and is going to get more of this fund? How do you make that decision?

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

Well, we know that the west has been very hard hit. I know many MPs here representing Alberta and Saskatchewan have gone through a double whammy, a double challenge, which is the drop in oil prices and also, meanwhile, COVID-19. We're seeing it even with Fort McMurray right now going through floods.

We're here to help. Definitely this will be taken into consideration when we announce the different details. Since we're nearly doubling the budget of all the RDAs, there will be substantial increases all across the country.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Thank you, Minister. I look forward to the detail. As we were digging in to prepare for this committee, there was very little detail. Thank you for at least shedding some light. I look forward to the detail coming.

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

Thank you, Majid.

[The Chair, Liberal, Sherry Romanado]

Thank you very much.

Our next round of questions goes to MP Tracy Gray.

You have five minutes.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you, Madam Chair.

Minister Joly, here in my riding of Kelowna—Lake Country, tourism is a big part of our economy, with many jobs depending on this industry. Do you have a plan for tourism businesses once the economy begins to reopen?

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

Thank you, Tracy. It's a very good question. Those are exactly the types of discussions I'm having with people in Kelowna and all across the country who are part of the tourism sector.

I would tell you right now that we're still in the stabilization phase. The tourism sector has been, as I said, the first hit because of the impact of Chinese tourism at the beginning of the pandemic. It's been the canary in the coal mine, and it will be impacted even later, so we want to make sure that the existing measures can apply. It's definitely part of what we have in mind for the recovery.