Evidence of meeting #29 for Industry, Science and Technology in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was businesses.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Yan Hamel  Member of the Board of Directors, Alliance de l'industrie touristique du Québec
Martin Vézina  Head of Communication and Public Affairs, Association Restauration Québec
Christina Franc  Executive Director, Canadian Association of Fairs and Exhibitions
Martin Roy  Executive Director, Festivals and Major Events Canada
Susie Grynol  President and Chief Executive Officer, Hotel Association of Canada
Clark Grue  Chair, Meetings Mean Business Canada
Charlotte Bell  President and Chief Executive Officer, Tourism Industry Association of Canada

1:15 p.m.

Bloc

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Thank you, Madam Chair.

I especially want to thank my colleagues on the Standing Committee on Industry, Science and Technology for addressing the issue of the tourism industry. This issue is particularly significant in my constituency, of course, but also throughout Quebec and Canada.

I met with some of the people here or with representatives of different organizations a few times before and during the COVID-19 crisis. Ms. Bell, I believe that you used the canary example. You said that the tourism industry might be the last one to recover, but that it was the first one hit. We must take this into account.

In my opinion, the major challenge is that the programs seem very poorly adapted to the reality of tourism or cultural businesses. Today, we're also hearing from representatives of the culinary industry. These programs are hurting all these industries. I hope that this is one thing that we'll remember.

In particular, Mr. Vézina spoke of how the Canada emergency response benefit and the Canada emergency student benefit have affected the recruitment of workers. In several regions of Quebec, including my own region, labour shortages are still a major issue. This was the case before the crisis. If there isn't any adapted program to help people return to work, there will be issues. Also, in my opinion, the fixed costs included in the Canada emergency commercial rent assistance are generating a great deal more confusion than results.

In terms of the tourism industry, I believe that it's important to remember that the return to normal will take time. We're talking about 2023 or 2024. At least, that's what I've heard from people in the industry. Quebecers have been especially supportive. I've run into a number of them. I was fortunate, because several friends came to visit me in Abitibi Témiscamingue. International tourism brings in a great deal of money. We may have difficulty obtaining this type of security.

My message is as follows. We must ensure that our programs are geared towards a return over the long term. One challenge for the industry will be to determine how to return to normal. At one of our meetings, you suggested a return to 70% of activity levels, not just based on losses, but until things get back to normal. If we want festivals to come back and if restaurants want to continue their activities, we must take into account the fact that the summer season is short. We know that 65% of the tourism economy, or two-thirds, is generated in the summer. What will happen during the year? The key issue is the workforce. We must keep jobs active to ensure a long-term vision of development and to plan for next year.

My question is for Mr. Hamel, the representative of the Alliance de l'industrie touristique du Québec.

Could you finish your comments on the regional relief and recovery fund, or the RRRF? We know that tourism businesses are in dire need of cash flow to deal with the economic crisis. That's the crux of the matter.

Would changes to the current RRRF, to tailor the program to the tourism industry, provide a way for these businesses to quickly obtain the necessary cash flow and a subsidy at the end of the repayment process that could help get them back on their feet, just like an adapted version of the RRRF program?

1:20 p.m.

Member of the Board of Directors, Alliance de l'industrie touristique du Québec

Yan Hamel

Thank you, Mr. Lemire.

To answer some of the questions asked earlier, I'll say that, at this point, the provinces don't have strong and robust measures to help the tourism industry. This is a major issue. The most structuring measure is the Canada emergency wage subsidy.

The other critical issue is cash flow. In Quebec, there was an effort to determine the best existing programs to address the cash flow issue in the tourism industry across the country.

We've spoken with Ms. Bell and the Hotel Association of Canada. The current RRRF doesn't ensure access to funding for businesses that are important and structuring for our economy. Yet these businesses will create wealth and maintain jobs across the country when the time comes for recovery.

We're requesting a review of this program to make it more flexible and better adapted to the real needs of all tourism businesses in Canada and businesses with a turnover of over $5 million. We're asking for access to cash flow quickly and at an affordable cost.

We spoke earlier about issues with banks. Businesses can't carry too much debt. What we're asking for already exists at the federal level. We're asking for a subordinated loan. If the businesses recover faster than others and can repay the loan before December 31, 2022, as set out in the current program, there needs to be a moratorium on the capital and interest and the non-repayable portion must be between 25% and 50%.

Access to cash flow is a critical and important issue.

1:20 p.m.

Bloc

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

It's important. I asked Minister Joly about the regional relief and recovery fund, or the RRRF, and the importance of having a decentralized program that takes the regions and their realities into account, with people to support it. Above all, the program must be adaptable.

My time is up. I have another question for the next round.

Thank you, Madam Chair.

1:20 p.m.

Liberal

The Chair Liberal Sherry Romanado

Thank you.

The next round of questions goes to MP Masse.

You have the floor for six minutes.

1:20 p.m.

NDP

Brian Masse NDP Windsor West, ON

Thank you, Madam Chair.

Thank you, witnesses.

I'm going to explain a program, and then I'd like to go in the order you all presented with regard to whether this program would be something that would benefit you and your organizations. I'm going to explain what it is, to make sure we're all on the same page, and then if you could, in the order in which you presented, give a yes or no answer, that would be helpful.

To do that, I'm going to mention the Canada summer jobs program, and I'm going to explain how it works for you to understand.

Each MP is allocated money for this program every year. I've been doing this for 18 years, and every single year it's over-allocated, which means I have more places that apply for the money than I have money available. What it does is provide students an opportunity to be fully paid in the not-for-profit sector, with an exception this year that they also get to be paid fully in the private sector.

I'll give you an example for Windsor West here. Right now I actually have three million dollars' worth of requests, and I have about $1.2 million to allocate to students. People, including many in the tourist sector, apply for these jobs; they're vetted by the public service, and then they come back to an MP to be approved. The MP can change their hours, increase them or decrease them. I try to spread them out and focus on tourism and other types of opportunities for young people.

The government did do a good job this year with regard to extending the program. Jobs can go to February now, and they can be part-time for the students.

I'm giving you all these details because this is the controversy that's going on with the WE Charity scandal right now. The WE Charity scandal claim is that they had to help students and get them out. As I noted, this program is oversubscribed every year. In fact, right now, when you add it up—and it's been this way for several years—it's actually a $912-million shortfall that could be made up across this country.

The question I want to ask related to the controversy is that the Prime Minister said that nobody else could do this. There's no other way of getting them out there. What I'm telling you right now, though, is that the public sector has already vetted, including for Windsor West, another 200 positions for students that could be funded if they did this tomorrow. It doesn't even take any special legislation, so this is one part of a solution.

My question is, if this program were enhanced to allow students to continue to have some flexibility by extending the hours in the tourism sector and others, and it paid students directly and we actually put the money out there now, would it be of benefit to your organization to have that program with some flexibility to deal with the challenges you have right now?

Could you answer in order and tell me whether this is good or bad, yes or no? I'd appreciate that, because we've been fighting to try to get the money put into this to get those jobs out the door for the next six months to a year for students. However, if it's a bad idea, I'd rather hear that. If you could say yes or no so I could get to everybody, I'd appreciate that.

Mr. Clerk, could you assist with the order, if it's necessary, as well?

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

The first on the list was l'Alliance de l'industrie touristique du Québec.

1:25 p.m.

Member of the Board of Directors, Alliance de l'industrie touristique du Québec

Yan Hamel

Thank you for your explanation of the program. It's important to note that we're now less than a week away from the return to class.

1:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

I'm sorry, but could you give just yes or no?

1:25 p.m.

Member of the Board of Directors, Alliance de l'industrie touristique du Québec

Yan Hamel

Okay. No, under the current circumstances, it can't help us.

Thank you.

1:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

Okay. Thank you.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Mr. Vézina, you have the floor.

1:25 p.m.

Head of Communication and Public Affairs, Association Restauration Québec

Martin Vézina

Yes, it can help, but it will depend on how the Canada emergency benefit for students applies, because the problem is that they prefer to be on that program.

1:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

Okay. Thanks.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Ms. Franc.

1:25 p.m.

Executive Director, Canadian Association of Fairs and Exhibitions

Christina Franc

The short answer is maybe, but probably not.

1:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

Okay. Thank you.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Mr. Roy.

1:25 p.m.

Executive Director, Festivals and Major Events Canada

Martin Roy

I'd say yes for now. A lot of festivals and events have benefited from the program, actually.

1:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

Okay.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Madame Grynol.

1:25 p.m.

President and Chief Executive Officer, Hotel Association of Canada

Susie Grynol

I'd also go with maybe, but probably not.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Mr. Grue.

1:25 p.m.

Chair, Meetings Mean Business Canada

Clark Grue

I would say the same thing: maybe, but probably not.

1:25 p.m.

Liberal

The Chair Liberal Sherry Romanado

Madame Bell.

August 10th, 2020 / 1:25 p.m.

President and Chief Executive Officer, Tourism Industry Association of Canada

Charlotte Bell

I would say the same: maybe, but unlikely.