Industry Committee on Aug. 10th, 2020

[The Chair, Liberal, Sherry Romanado]

I call this meeting to order.

Good afternoon, everyone. Welcome to meeting 29 of the House of Commons Standing Committee on Industry, Science and Technology.

Pursuant to the order of reference of Saturday, April 11, the committee is meeting for the purpose of receiving evidence concerning matters related to the government's response to the COVID-19 pandemic. Today's meeting is taking place by video conference. The proceedings will be made available via the House of Commons website.

I'd like to remind members and witnesses to please wait before speaking until I recognize you by name. When you are ready to speak, please unmute your microphone and then return it to mute when you are finished speaking. Please speak slowly and clearly so that the translators can do their work. For those of you with earbuds, it is important that you bring the microphone close to your mouth when you are speaking.

Please make sure you select the right channel for your intervention. If you are speaking English, please make sure you are on the English channel. If you are speaking French, please make sure you are on the French channel.

As is my normal practice, I will hold up a yellow card when you have 30 seconds left in your intervention and a red card when your time is up.

I would now like to welcome our witnesses, as follows: from the Alliance de l’industrie touristique du Québec, Yan Hamel, a member of the board of directors; from the Association Restauration Québec, Martin Vézina, head of communication and public affairs; from the Canadian Association of Fairs and Exhibitions, Christina Franc, executive director; from Festivals and Major Events Canada, Martin Roy; from the Hotel Association of Canada, Susie Grynol, president and CEO; from Meetings Mean Business Canada, Clark Grue, chair; and from the Tourism Industry Association of Canada, Charlotte Bell, president and CEO.

Each witness will have five minutes for their presentation, which will be followed by rounds of questions.

With that, our first witness will be the Alliance de l'industrie touristique du Québec.

Mr. Hamel, you have the floor for five minutes.

[Yan Hamel, Member of the Board of Directors, Alliance de l'industrie touristique du Québec]

Out of respect for Mr. Sébastien Lemire, the member who invited me, my presentation will be in French.

Good afternoon, everyone.

I'm the president and chief executive officer of Canada's largest cruise line. We operate 25 ships. In 2019, we carried 600,000 passengers, 65% of whom were from outside Canada. We had 750 employees. However, as of March 15, we were down to 33 employees. As a result of the Canada emergency wage subsidy, or the CEWS, we now have 250 employees.

I'm also a member of the board of directors of the Alliance de l'industrie touristique du Québec, which represents 10,000 businesses in 40 regional and sectoral tourism associations and belongs to the business leaders' group.

I want to thank the Honourable Sherry Romanado, the chair of the committee. I also want to acknowledge the committee members along with my colleagues from the Quebec and Canadian tourism associations.

I want to thank the federal government for the programs that it has developed and implemented to date. I also want to say that we greatly appreciate the fact that the government is actively paying attention to our current situation.

The tourism industry has some unique characteristics. First, labour is key to our tourism product. The customer experience is largely made possible as a result of the human assets of our employees. These employees have been severely affected by the pandemic. In a few moments, I'll outline some measures to help them in this area. Next, we operate throughout Canada. Lastly, we have a strong seasonal component, both summer and winter, and our production cycle is very different from the cycle of other companies. Our inventory is perishable. Every time we lose a working day, we can't get it back later. The tourists won't be there. The current crisis constitutes a major challenge for us. We're living in an unprecedented atmosphere of uncertainty. We need government support, since our industry will take a long time to recover from the crisis. However, our industry has the potential to make a major contribution to Canada's economic recovery.

According to the Destination Canada estimates, in the province of Quebec alone, we can expect a loss of over 120,000 tourism-related jobs and economic losses of $11 billion during the pandemic.

Our recommendations are simple and they boil down to two things. They directly concern two existing programs. We're asking for changes to two existing programs. The first relates to labour, and the second involves the cash flow of tourism businesses.

We recommend that the wage subsidy be extended to August 2021. Tourism businesses will be in survival mode until spring 2021, when the recovery begins. We need major support in this area. The program is currently scheduled to end on November 21. However, we need lasting support.

We'll then need a review of the calculation method. Under the old system, a 30% loss made us eligible for a 75% subsidy. Under the new system, a 30% loss will qualify us for only a 12% subsidy in the new program period starting in November. Our recommendation is that the safe harbour rule of 75% be extended to August 2021 or that the declining multiplier be maintained at 1.2 for the loss of revenue on the base subsidy, while the top-up subsidy remains in place. As you know, the new wage subsidy now consists of a base subsidy and a top-up subsidy. All this would have a major structuring effect on the entire industry.

Another significant component of an existing program is the expansion of eligibility for the regional relief and recovery fund, or the RRRF. The alliance recommends the addition of a third category of financial assistance for large structuring tourism companies with a turnover of at least $5 million that have suffered a minimum loss of 30% between April 1, 2020, and March 31, 2021, compared to the same period in 2019-20.

These companies stand out for their multiplier effect in the tourism ecosystem, the regional economic engine. The companies attract travellers, who spend locally when they visit nearby businesses. The maximum amount of financial assistance would be $5 million in the form of a subordinated loan.

The proportion of financial assistance—

[The Chair, Liberal, Sherry Romanado]

I'm sorry to interrupt you, Mr. Hamel, but your time is up.

[Yan Hamel]

Okay. I was just about to wrap up my presentation.

The RRRF would be very helpful in terms of cash flow, as a result of a moratorium on the capital and interest.

Thank you, Madam Chair.

[The Chair, Liberal, Sherry Romanado]

Thank you, Mr. Hamel.

The next group is the Association Restauration Québec. I'd like to invite Mr. Vézina to speak for five minutes.

[Martin Vézina, Head of Communication and Public Affairs, Association Restauration Québec]

Thank you, Madam Chair.

I also want to thank the committee members for having me here today so that I can talk about our industry.

The Association Restauration Québec is the oldest restaurant association in Canada and the largest in Quebec. Founded in 1938, it brings together over 5,600 managers of all types of restaurant services.

In Quebec, the industry generated annual sales of $14 billion and consisted of over 21,000 companies that employed approximately 230,000 people. I should specify that this was before the current crisis. We played a key role in the economic, bio-food and tourism development of all regions of Quebec. We hope to continue to do so.

First, we must note that restaurants are being hit very hard by the storm that we're all experiencing. Restaurants will likely continue to be heavily affected for many months to come.

In the first few weeks of the lockdown, 80% of our members had to suspend their activities completely, which means that they had to fully shut down. Our colleagues at Restaurants Canada also made an assessment. In Quebec alone, approximately 175,000 workers in the restaurant industry were laid off at the end of March.

In April, restaurant sales in Quebec, for all categories combined, plummeted by 70%. For restaurants with table service, the drop was obviously sharper, with a decrease in sales of over 83%. Of course, the situation improved in June, as a result of the gradual reopening of dining rooms in Quebec. However, it's utopian to think that we'll return to normal and recover 100% of our usual sales.

The reason is very simple. The dining rooms can't be filled to their maximum capacity because of physical distancing standards, and many customers have disappeared as well. Think about tourists from abroad who can't come to Canada, workers who are staying home and who aren't in the city centres, and people who normally attend all the major sporting and cultural events such as the Formula 1 Grand Prix in Montreal or the Festival d'été de Québec in Quebec City.

When we surveyed 580 food service managers in early July, 61% of respondents expressed concern about their ability to survive. They said that, if nothing changes, they won't be able to survive for more than six months. This means that we must fear the worst for thousands of food service businesses, but also for thousands of families with members who depend on an income or employment in a food service business.

Of course, we welcome the assistance measures implemented by the Government of Canada. We're very pleased to see that the Government of Canada stepped up to the plate with a number of different measures, such as the Canada emergency business account, the Canada emergency wage subsidy and the Canada emergency commercial rent assistance.

Some of these measures continue to serve as critical lifelines for all restaurant owners across the country.

The Canada emergency response benefit or its student equivalent was needed for people who ended up with no income overnight, including many restaurant owners.

However, let's face it. Along the way, the benefits have become a real headache for thousands of employers, who are unable to recruit and employ the workers that they so desperately need to serve customers.

While a great deal has been accomplished to date to assist Canadian businesses, more must be done to help the food service industry get through this crisis.

We made 28 recommendations to various levels of government to help get our businesses back on track.

First, we believe that it's perfectly legitimate to ask for a financial assistance program—we're not talking about a loan, but about financial assistance—specifically for the food service industry to offset operating losses or, at least, to cover the many major costs arising from the new health regulations.

Second, in the coming months, the suspension of the GST and QST collection in Quebec should be considered. This could be a good way to encourage consumers, who have also had economic difficulties, to support restaurants in their community.

We obviously also support better oversight of the fees charged to merchants by payment card network operators. These fees are commonly known as interchange fees.

Lastly, because the impact of the pandemic on the profitability of restaurants will last longer than in many other sectors, the federal programs already in place must be maintained for as long as necessary. The Canada emergency wage subsidy remains critical and must be maintained. However, the Canada emergency commercial rent assistance must be changed, since many tenants can't benefit from it and because the 70% drop in income criterion is too stringent. This must change.

As a result of your assistance and concern, restaurant owners will be able to get back on their feet and continue to welcome you to their establishments across Canada.

Thank you for listening.

[The Chair, Liberal, Sherry Romanado]

Thank you.

Our next witnesses, I understand, are sharing their time. Canadian Association of Fairs and Exhibitions, and Festivals and Major Events Canada, you have the floor for five minutes.

[Christina Franc, Executive Director, Canadian Association of Fairs and Exhibitions]

That's fantastic. I'm from CAFE. I'll get us started.

Thank you for inviting us to speak today on behalf of the Canadian Association of Fairs and Exhibitions. We represent almost 800 non-profit organizations, as well as service providers who support these organizations with entertainment, food, security, logistics and activities.

Many of you have likely been to a fair before, enjoyed the cotton candy, seen the sights from the Ferris wheel and maybe even enjoyed an on-site concert. What you may not know is that behind this event there is a non-profit organization, often called an agricultural society, and often led almost entirely by volunteers who are passionate about their community and who want to support its vibrancy, economy and quality of life.

These NPOs are much more than an annual event. They run spaghetti suppers; lend their grounds for weddings, funerals, trade shows and fundraisers; and may have campgrounds, curling clubs or hockey arenas. We have become integral parts of the communities we are in, whether it's Vancouver or Hants County, and we support community sustainability as a result. For every dollar our organizations earn, on average, $4.54 is put back into the surrounding community.

We are advocating to ensure that the heritage and the physical, social and mental health of our communities are protected.

Unfortunately, the programs that have been put in place by the federal government related to COVID-19 to date have proven to be almost useless to us. A wage subsidy does little for a volunteer-run organization. The short time frame in which a loan has to be repaid is nearly impossible for a non-profit to meet. We have been rejected by regional programs and redirected from one department to another.

Ultimately, as you will hear from others today, we have a very short seasonal window that has now all but passed. Events have specifically one shot to generate revenue for the next 365 days, and we've lost that.

We've been working with TIAC and fully support their comprehensive recovery plan. These measures include 100% backed loans, extending work visas and developing funding programs to support events.

Finally we are urging the government to provide $74 million in solvency support for our 743 organizations. This would support non-deferrable expenses to carry our industry through to May 2021, when we could generate revenue again.

There is a blatant gap for non-profit tourism support, and we hope you will seriously consider the suggestions above as well as how to adapt the current programs to meet industry needs.

Rest assured that this isn't about making a profit. It very literally is about surviving. Recovery is going to start locally, and that means with us, so we need to make sure we are there and ready when the time is right. By investing in us, you are investing in communities across Canada.

Once again, thank you for your time. I'll hand it over to Monsieur Roy.

[Martin Roy, Executive Director, Festivals and Major Events Canada]

Thank you.

Excluding fairs and our friends at the CAFE, the festival and events industry in Canada generates an estimated $1.5 billion in annual sales. Its annual economic spin-offs in terms of wealth creation and contribution to the GDP amount to over $2 billion. According to our estimates, at least 30,000 jobs are created or maintained.

In recent weeks, FAME submitted a brief to the Standing Committee on Finance that urges the government to focus on festivals and events to boost the economy and tourism. We made five recommendations in the brief. First, we believe that the Canadian government must take financial action through a fund designed to address the deficits of cultural organizations, including festivals and events. In our sector alone, we're talking about at least $150 million. These organizations are very often non-profit organizations that don't have any reserves or capitalization and that were unable to generate any revenue this year. A significant percentage of our members say that they're unable to resume operations or that they're uncertain whether they'll be able to do so without this assistance.

At this point, of the $500 million announced for culture and sports, only $15 million has been set aside for presenters in general, which includes festivals and events, in the form of an increase to the usual grant. This isn't enough.

We also emphasized the importance of extending the emergency wage subsidy and the Canada emergency response benefit or equivalent benefits tailored specifically to the culture and tourism sectors. We urged the federal government to implement a program based on the marquee tourism events program and to allocate $225 million over three years. I can expand on this idea during our discussions. It would help attract more tourism, not only from Canada under the current circumstances, but also from other countries, as soon as that becomes possible again.

I'll finish by saying that we also asked the government to renew the additional $15 million per year allocated in 2019 to the two programs, which support over 1,300 festivals and events. This addition was planned for only two years. Lastly, we suggested that the government expand the security infrastructure program so that festivals and events can access it.

Thank you. I look forward to speaking with you in a few minutes.

[The Chair, Liberal, Sherry Romanado]

Thank you.

We now turn to the Hotel Association of Canada. You have the floor for five minutes.

[Susie Grynol, President and Chief Executive Officer, Hotel Association of Canada]

Thank you very much.

Madam Chair and members of the committee, thank you for the invitation to testify today.

The hotel industry represents more than 8,000 hotels, motels and resorts. We employ more than 300,000 Canadians. We play an essential role in the Canadian economy, and we contribute taxes to the tune of $10 billion to all three levels of government.

Hotels in Canada are mostly small and medium-sized businesses with owners who are usually located in the community they serve. These are local entrepreneurs of often family-run businesses who have invested their entire livelihoods into a hotel or a local inn.

Our industry has been there for our communities throughout the COVID-19 crisis. We made our rooms available to front-line workers and Canadians to self-isolate. We assisted public health in the mandatory quarantining of returning Canadians. We allowed vulnerable Canadians to take shelter and prepared several hotels to welcome post-surgical patients to assist with hospital overflow. We helped flatten the curve.

Our 300,000 employees are made up of some of Canada's most vulnerable people—women, immigrants, visible minorities and young people—and they have been seriously impacted by the pandemic and the economic slowdown.

The hotel industry has been devastated by this pandemic. We were hit first, hit hardest and will be the last to recover. The limits on international and domestic travel, as well as restrictions on mass gatherings, are appropriate and necessary, but they do put us on the edge of survival. Most hotels in Canada have been operating at a revenue loss of between 70% and 90% since mid-March. If government support is not received, we will have bankruptcies and thousands of permanent job losses in the industry. According to our latest member survey, 40% have only four weeks left before cash runs out to cover fixed costs.

We are at a crossroads. That is why our association has issued a five-point plan to keep the hotel sector alive and transition it to recovery. A copy of this plan was circulated to members in advance of this meeting.

However, for the purposes of our dialogue here today, I'm going to focus on two key critical recommendations: One is liquidity that works, and the second is an increase to wage subsidy support for hard-hit businesses.

Our industry has been cut out of the government's loan program, BCAP. Banks are not willing to loan additional debt to businesses with heavy assets and an unclear line of sight to recovery. Unfortunately, our entire sector falls into that category. Hotels have had only a 6% success rate in accessing BCAP. Most hotels are being told not to apply.

Our recommendation is that the government fix this gap immediately and create a new loan program for hotels. It should include streamlined access with a 100% loan guarantee, a loan value of up to 20% of the annual revenues, a component equivalent to the commercial rent assistance program to cover three months of fixed mortgage payments, low interest, no hefty bank fees, repayment terms that make sense and no personal guarantees.

The CEWS program, on the other hand, is not just working; it has been a critical lifeline for hotels to keep employees on staff during the pandemic. The recent extension, and the addition of the top-up for hard-hit businesses, were most welcome, and they are in line with the recommendations HAC made during the CEWS consultation process. However, the drastic phase-out, which will begin in September, coincides with the exact moment when our occupancy levels from summer travel will drop and then flatline.

In September we will be forced to make the difficult decision to sever ties with the very employees we will need again in a few months' time. However, if the government maintained a 75% wage subsidy coverage, we could keep our employees on payroll and quickly ramp up when travel resumes. If the government is going to support these vulnerable Canadians either way, why not extend the subsidy further to hard-hit sectors and avoid the anxiety, uncertainty and expense of mass layoffs?

We are recommending the government maintain the 75% subsidy coverage until December by applying the safe harbour principle, as designed by finance, to periods seven, eight, nine and 10. This should apply only to businesses with severe and sustained revenue declines of 50% or more.

Our future is in your hands. The government will be making life and death decisions for many hotels. We hope you will recognize that not every sector is alike. It is time to transition into sector-specific support measures in order to bridge hard-hit industries like ours to the other side.

Thank you for your time today.

[The Chair, Liberal, Sherry Romanado]

Thank you.

Our next presentation is by Meetings Mean Business Canada. You have the floor for five minutes.

[Clark Grue, Chair, Meetings Mean Business Canada]

Thank you, Madam Chair and honourable committee members.

Meetings Mean Business Canada represents a cross-section of the business events community in Canada. We are made up of event professionals and event owners, hoteliers, transportation professionals, convention centres, airlines, destination marketing organizations, technology companies and many others who make up an often invisible industry that supports the growth of every industry in our country. In addition to this, business events stimulate no less than a third of the tourism activity in Canada.

The business events industry was, until COVID hit us, a one-trillion-dollar global industry. In Canada, according to Oxford Economics, 229,000 Canadian jobs were supported annually by business events. The events that we have all attended in the past—conventions, exhibitions, congresses and other business meetings of 10 or more—created $33 billion in direct spending and contributed $19 billion to Canada's annual GDP. These numbers are real. They should shine a light on the critical component of the Canadian economy that was forced to shut down in the wake of the COVID crisis. This industry, which brings together businesses, academic thought leaders and Canadian citizens to exchange ideas and transact business, has been shut down in response to COVID-19.

Now, I can tell you that this industry is not suggesting that we have not responded appropriately—

[The Chair, Liberal, Sherry Romanado]

My apologies, Mr. Grue, but can I ask you to move your microphone closer to your mouth?

[Clark Grue]

Absolutely. My apologies.

[The Chair, Liberal, Sherry Romanado]

Thank you so much.

[Clark Grue]

I'm not suggesting that our response to COVID-19 has not been an appropriate one; it's quite the opposite. The professionals in this industry are highly tuned in to the safety and experience of the attendees at business events. This is their life, their living, their career. They understand the safety of delegates in ways that no other industries do. We track our guests before they arrive, while they are in our care, and post-event. These are not festivals, concerts or shopping malls. At business events, we are able to control where the guests go and where they do not go. We control how they interact. We control what they consume, and how they consume food and beverages. We are prepared and ready to conduct our business much like the NHL has done with their event bubbles for the playoffs.

This industry is well prepared to host events again. We can do it safely, and we can set a global standard for doing it right, doing it with care and doing it in a way that Canadians would be proud of. Many of these professionals who are sidelined by the protocols are struggling to get through this time. Many of them are new Canadians, many of them are parents with kids and many of them do not have the stability of a pension or financial supports. They are vulnerable. Canada needs our business events professionals to survive this crisis. Sadly, without direct support for the people and businesses within the business events industry, they will not survive this fall, let alone next year. Many will have to seek jobs outside of this vital industry.

Just as importantly, Canada's industries—health, technology, energy, finance, manufacturing, forestry and so on—all rely on event professionals to bring them together with their colleagues, their suppliers and their customers. This convening of our industry leaders is a backbone to Canada's economy, which allows them to exchange intellectual and financial capital as well as invite the world to explore Canada's innovation, resources and industry excellence. This fosters R and D, foreign direct investment and trade.

I am here today representing an industry of 229,000 Canadians who need help to survive. These are professionals who want desperately to be part of the solution as we restart our economy. They are passionate about what they do and what they contribute as a solution for Canada, but the clock is ticking. We have lost a significant portion of 2020, all but lost the lucrative fall season and now we are looking at a challenged first half of 2021. We are part of the solution to get Canada's economy restarted. We are a tool that the government can use to carefully and safely launch the recovery phase of the crisis that we have experienced in the last six months. We can create jobs quickly and efficiently.

Our asks are simple. Within appropriate safety protocols, empower this industry to convene again in safe and socially acceptable ways, in ways that bring our industries back together to once again move the economy forward. We have the protocols ready and waiting. Ensure that the financial safety nets, as we've heard already, stay in place and are accessible to a wide range of the self-employed, SMEs and corporations who serve this vital component of the economy. Make it easy to access these support programs. Finally, in the nomenclature around events, separate “business events” from “mass gatherings”. Leverage the business events industry as an opportunity to bring Canadians together. When the time is right, invite our international visitors back to Canada to experience how we care for our guests and our country. Do this by providing a federally funded business events and conventions attraction program for attracting and supporting the delivery of business events for Canada

Thank you for your kind attention.

[The Chair, Liberal, Sherry Romanado]

Thank you very much.

We will go next to the Tourism Industry Association of Canada.

Ms. Bell, you have the floor for five minutes.

[Charlotte Bell, President and Chief Executive Officer, Tourism Industry Association of Canada]

Thank you, Madam Chair and members of the committee. I’m pleased to be here.

Despite some businesses reopening during the summer season and talk of recovery, Canada’s tourism sector has remained stagnant since the onset of the pandemic. This sector was the first hit, the hardest hit and will be the last to recover. As other sectors and businesses see restrictions ease and revenues return, regulations that have handcuffed the tourism sector remain in place.

To give you a snapshot of the devastating impact on this sector, our latest survey in mid-July—normally our “high season”— revealed that 82% of all respondents experienced revenue declines between 61% and 100% in the last month compared with the previous year. Sixty-eight per cent of all respondents said that, without access to government-supported financing, they’ll be unable to stay in business. This survey includes all sectors of the visitor economy.

Let me be clear: Health and safety is paramount to this sector. It’s a key imperative for our industry to help rebuild consumer confidence and restore businesses, big and small. This industry has complied with all public health regulations, with many going above and beyond by implementing rigorous safety measures to ensure the health and safety of employees and guests. This includes hotels, air services, conference centres, tourism operators and others. This at a time when critical government support programs are nearing an end and our sector continues to be denied access to government-backed liquidity.

The visitor economy is unlike other sectors. We can’t provide curbside products or services, nor can we sell experiences online to keep the lights on.

Today I'm going to focus on a couple of the priorities.

First is sustaining tourism businesses. We know a vaccine will eventually come. Until then, we need dedicated, ongoing government support to bridge us into recovery. We can achieve this in a few ways, first, by extending the Canada emergency wage subsidy to next summer and applying the safe harbour provision to ensure the hardest-hit tourism businesses will continue to receive the 75% subsidy past the summer.

[The Chair, Liberal, Sherry Romanado]

Madam Bell, I'm sorry to interrupt, but can you make sure that the microphone is a little closer to you?

Thank you.

[Charlotte Bell]

CEWS is one of the few support programs our sector has been able to access and is key to allowing businesses to keep their staff and avoid massive layoffs come September, not to mention bankruptcy.

Second, BCAP doesn’t work for the tourism sector, just like hotels, which are part of our sector. Across the spectrum, this is a problem. Forty-three per cent of our recent survey respondents were flat-out denied. More than 50% waited three months to hear back, and 38% are still waiting. Only 12%, all told, were approved. These businesses are deemed too risky to lend to and have been shut out of the program. Without access to government-backed liquidity, they won’t have the cash flow required to cover fixed costs or employee salaries, and they're just going to go bankrupt. BCAP needs to be amended, and it needs to be 100% government backed with a forgivable portion to cover fixed costs.

Second is reopening Canada and enticing travel. Pre-COVID, Canada was on track for another record year of inbound visitors bringing in more than $23 billion to the economy. Since March, we’ve seen a 98% decrease in inbound visitors each month. With borders closed, tourism businesses will not survive for the eventual return of regular travel, including international travel. Providing incentives to spend on tourism products will be key to making the transition a reality.

The loss of inbound tourism has had a substantial economic impact across the globe, including in Canada. Many countries offer significant inbound travel incentives to pique visitor interest. For now, we need incentives for Canadians to visit their own country through tax credits. When it’s safe to reopen our borders, we’ll also need to attract travellers in an internationally competitive market. Destination Canada and other government agencies will need dedicated funds to ensure we’re in a competitive marketplace.

Finally, the ongoing bans on mass gatherings have taken their toll and will only get worse come September, without business meetings, conventions and festivals this fall. This sector of the travel economy will need dedicated support to ensure events are able to meet expectations once they’re able to operate again.

My conclusion is this: The visitor economy has given much to Canada with 1.8 million jobs, more than $100 billion annually and a sense of cultural and national pride. We cannot afford to lose tourism. While we appreciate the programs in place so far, we continue to need government support to ensure we’re still here to welcome guests tomorrow and in the future.

Thank you.

[The Chair, Liberal, Sherry Romanado]

Thank you very much.

We will now move to our rounds of questions. Our first round is six minutes. Again, we're very tight on time, so I'm going to ask members and witnesses to keep their answers in that time period because we want to make sure everyone gets the chance to ask his or her questions.

With that, I will turn it over to MP Blake Richards.

Welcome to INDU.

[Blake Richards, Conservative, Banff—Airdrie, AB]

Thanks, Madam Chair.

Thanks, to all the witnesses. I'll say first, this industry is really hurting and obviously it is a critical industry for our country. I really believe that there should have been far more than one meeting dedicated to this critically important industry. Therefore, I'll have to apologize. With so many witnesses on one panel, I probably won't get the chance to ask you all a question, which is very unfortunate.

Having said that, a few of you touched on this and/or alluded to it, but—

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

Excuse me, Madam Chair—

[The Chair, Liberal, Sherry Romanado]

We have a point of order. I believe we're having some difficulty hearing.

Is that right, Mr. Lemire?