Industry Committee on Feb. 27th, 2020

[Simon Kennedy]

Madam Chair, I'd have to get back to the committee with a specific answer, but my understanding is yes, this is federal funding to groups. I can't speak to the specific parameters of whether there might be provinces that have chipped in or whatever. I'm happy to try to come back on that.

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

I'd be very interested in that, as a former Ontario minister of community and social services. This sounds like an excellent allocation of funding, but I just want to make sure that we get it down to the ground level.

I'm happy to give up my time.

[The Chair, Liberal, Sherry Romanado]

Is there anyone else? No. Okay.

The next round goes to the Bloc Québécois, Monsieur Lemire.

You have two and a half minutes.

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

Thank you very much, Madam Chair.

I just want to point out a few things. We have to consider the context. Teaching seniors how the Internet works is all well and good, but they still need access to the Internet. I think that's the whole issue. We must ensure that all Quebeckers and Canadians have access to broadband Internet and the cell network. That is essential. I think the 2030 target is absurd.

How many of Quebec's small communities are actually connected?

There is a program, but it is a regional initiative. The region decided to tackle this with the Government of Quebec's help. The Constitution of 1867 makes it very clear that anything that did not exist at the time Canada was created is under federal jurisdiction. Telecom is therefore under federal jurisdiction. That means the federal government has to pay for projects in the regions, but we have a broadband provider in our region, GIRAT, and the government didn't put any money into its Mobile A-T project. That is a very concrete example.

Has there been any investment?

When I see that relatively little of the money has actually been spent, that makes me angry. I want to know how many small providers have received financial support to connect Canadians.

[Simon Kennedy]

Is your question about the number of small Internet service providers in the regions?

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

Yes.

I just want to comment that I feel the industry favours large providers, but large providers have no interest in setting up in the regions because it's expensive, as people have pointed out.

Is there anything we can do to make these programs attractive to small and large providers?

The goal, for me, the end result, is access to cell networks and the Internet.

[Simon Kennedy]

Certainly. I can tell you that we've had several programs in the past. The requirements were a little bit different and it all depended on the program.

Our goal is to connect everyone. In some cases, it was more efficient to work with a big player who made it possible to connect more people. Having said that, we're very sensitive to the needs of small businesses and small groups.

The goal of upcoming programs is to be sensitive to this reality and to work with indigenous groups and small communities. That's one of the minister's priorities. I'm sure we'll be sensitive to this in the future.

We've worked with both of these groups in the past, but that's one of the criticisms I've heard.

[The Chair, Liberal, Sherry Romanado]

I'm sorry, but you're out of time, Mr. Lemire.

We have two minutes remaining. I'd like to offer it to Monsieur Masse if he would like to finish up.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

One thing I am concerned about, to build off my colleague's comment here, is this. As we move into digital services, how is Industry Canada working towards providing a level playing field for rural and remote areas. Perhaps you can shed some light on that work. It's one challenge. There is an objective to try to connect all of Canada equally. However, without rural and remote supports, we're offering services and economic development opportunities for some regions but maybe not for others. When we move to more digital works, it can be more complicated.

[Simon Kennedy]

I think the honourable member makes a very good point. Just to assure the committee, I think we are equally concerned about access to digital services and not having people inadvertently left behind.

I mentioned the $1-billion universal broadband fund, but there are a variety of other investments. One would be the funding that's going into new low-earth orbit satellite capacity that will be particularly valuable in much more remote areas where actually laying fibre optic cable, and so on, might be difficult.

Certainly the objective is to deliver high-speed broadband to all Canadians. There will be an array of investments to that end, as I mentioned, in the next couple of years, and the specific objective is going to be to try to make sure there's access for people who don't currently enjoy it.

On a separate track, and I won't go on at length about this, we're also very mindful that our policy frameworks and rules have to be updated because they were built for a different era. The digital charter and the work to actually make the digital charter real are an important element of ensuring that there's a level playing field and that citizens and businesses can participate in the digital world in a way that actually is purpose-built for the 21st century.

There'll be more to come on that front, but that's just to say that we also need to think about the frameworks and rules, in addition to the infrastructure. We're working on both.

[The Chair, Liberal, Sherry Romanado]

Thank you for that.

That's unfortunately all the time we have for this panel.

I want to thank Mr. Kennedy, Mr. McConnachie and the departmental officials for being here today to answer questions. The clerk will follow up with you with respect to the various requests for documentation and additional clarification.

[Simon Kennedy]

Thank you.

[The Chair, Liberal, Sherry Romanado]

With that, we will suspend so that we can have the next panel come in.

[The Chair, Liberal, Sherry Romanado]

We will begin the second panel of the industry, science and technology committee.

Today, the Honourable Mélanie Joly is with us to answer questions about the supplementary estimates (B), 2019-20.

Madam Minister, you have 10 minutes for your presentation, and then we will go to questions.

You have the floor.

[Mélanie Joly, Liberal, Minister of Economic Development]

Hello, everyone.

Madam Chair, esteemed members, thank you for inviting me to appear before you today for the tabling of the supplementary estimates (B), 2019-20. I'm here with my colleagues from the department.

In November, I took on the economic development portfolio. Our role is to ensure that our government's economic agenda reflects the daily reality of Canadians and the needs of workers and entrepreneurs in every region of the country.

Over the past three months, we've travelled across the country to get a better sense of Canadians' economic reality. We've asked Canadians, like Jon from Laval Tool in Windsor; Teresa from IMARK Architectural Metals in Edmonton; and Joanne from Lefebvre Industri-AL in Baie-Comeau, what is working, and most importantly, what we can do better.

While making sure we are always doing better for Canadian workers and entrepreneurs, we also took the opportunity to support local businesses to scale up their operations, increase their productivity and participate in the local economy.

In St. John's, Newfoundland, for example, we are partnering with the workers of Newco Metal and Auto Recycling. The work we are doing there is a perfect example of helping local businesses thrive and create good jobs locally.

In Baie-Comeau, Quebec, I recently met Marc and Joanne Lefebvre of Lefebvre Industri-AL. Their family-owned SME has developed an innovative and non-polluting process to produce greener aluminum without greenhouse gas emissions.

In Rouyn-Noranda, which is in my colleague Mr. Lemire's region, Abitibi-Témiscamingue, we supported the growth of Manufacture Adria. Its general manager, Joël Baillargeon, told us that this investment will help increase productivity and production capacity as well as create 20 more jobs.

Another great project we're supporting is Montreal en lumière. Our investments will attract more international visitors in the winter. More visitors in the winter also means more revenue for tourism sector workers and a longer season.

In Windsor, Ontario, there is more than 100 years of auto manufacturing expertise. We're proud to help the sector evolve, innovate and adapt to new realities. Or how about in Sault Ste. Marie, where our support is helping the regional maple syrup cluster scale up? What could be more Canadian than that?

Earlier this month, we also announced support for indigenous youth fighting wildfires in the north. These are exciting and meaningful opportunities for employment.

No matter where we live in this country, no matter where we grew up, it's important to be able to work and raise our families in the place we call home. We know this and we're working to make it happen.

My travels also took me to Alberta and Saskatchewan, where we were exposed to some of the real economic challenges the provinces are facing these days. We know there is economic anxiety and that some workers and families are struggling.

We also know that the future of our economy depends on the ability of our entrepreneurs and businesses to be creative, to adapt, to innovate and to maintain their competitive edge.

We know that artificial intelligence is a great source of pride in Alberta, particularly in Edmonton. That's why our investment in GO Productivity will benefit more than 20 companies, helping them adapt to new market conditions and become more competitive.

Talking about the role of Western Economic Diversification Canada, I note that a number of my fellow MPs today are from Alberta and Saskatchewan.

MP Jeremy Patzer, for instance, we visited your province only a month ago and we saw the good work that WD has done to amplify and build on the dynamic economy of Saskatchewan. I know that you often tout the farmers of Saskatchewan and fight hard for them in the House.

Verdient Foods, in Vanscoy, is a great success story that capitalizes on the strong agricultural roots of the province. You have a lot to be proud of, a project in which Western Economic Diversification Canada proudly partnered with local entrepreneurs to make happen. We invested $2 million in it for it to grow.

I know that you're also a great champion of the cattle industry in the province. ln fact, I know you met with industry representatives on their most recent visit to Ottawa. WD is a proud partner of theirs, and I'm sure you will be happy to know that we invested, in conjunction with the University of Saskatchewan, $4.7 million to build the Livestock and Forage Centre of Excellence near Saskatoon.

Even so, we're well aware that there is still much more to do. Our economy is strong, but we know that the path to economic prosperity really varies from region to region.

There is no one-size-fits-all to quickly build and diversify local economies. New partnerships are required, including with provinces, communities, indigenous organizations, industry and academia.

Western workers and entrepreneurs should know that we're an ally in helping businesses create good, local jobs. We're on your side, and always will be.

The bottom line is that we can't succeed unless everyone has an opportunity to benefit from economic growth.

As I work to carry out my mandate, I am supported by six parliamentary secretaries and six well-established regional development agencies.

The on-the-ground expertise that the regional development agencies provide is essential. We have witnessed this first-hand. With the benefit of regional insight, they help to create an environment where community businesses and innovators can grow, succeed and create good jobs locally.

They tailor national initiatives to fit regional needs and realities. They provide access to financial assistance for our entrepreneurs, bring together key stakeholders and contribute to regional economic development.

These agencies are perfect examples of what community-based government is all about. They ensure the presence of the federal government in our regions and they're often the first point of contact for entrepreneurs, workers and businesses.

Speaking of regions across the country, I would like to point out that the tourism sector has great potential for economic development. In fact, we believe this sector is capable of driving major economic growth in almost every part of the country.

We can be proud of last year's results. It was a record year for tourism with 22.1 million international visitors. This is an opportunity for exponential growth for the tourism sector, entrepreneurs and tourism workers.

That's why we've worked with stakeholders to develop a new national strategy.

It's a forward-looking plan with ambitious but achievable targets. It challenges and empowers our world-class tourism entrepreneurs to come up with new products and experiences.

On that, we're not blind to the current situation. We know it will not always be easy, and that sometimes we're subject to external realities.

I am in constant contact with the tourism industry. We know that people on the ground are worried right now. We hear their concerns. That's exactly why I am working toward getting thorough analyses.

Let me tell you that Canada's tourism sector is strong and resilient in the face of any potential issue. Rest assured that we will continue to work with Destination Canada and industry partners to monitor impacts and make sure our sector continues to grow. You know that the best thing we Canadians can do is to travel within our big and beautiful country.

I will conclude my remarks today with a simple message. To Canadians all across our country, we have your back, and we're by your side and always will be.

All Canadians, no matter where they live, must be able to enjoy the benefits of a strong economy.

With the support of our partners across Canada and, of course, of you, my esteemed colleagues, I know we can do it.

Thank you for your attention. I'm pleased to answer your questions.

[The Chair, Liberal, Sherry Romanado]

Thank you very much, Madam Minister.

Our first rounds of questions are for six minutes.

We have Madam Michelle Rempel Garner.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Thank you, Madam Chair.

I would just take issue with my colleague's characterization of how the Liberal government treats western Canada. You might have their backs, but it's with a knife in them.

I will start my questions related to expenditures related to ACOA. Earlier this year ACOA wrote off two multi-million dollar loans to Irving-owned companies.

The first one I will address is Atlantic Wallboard. The department said some amount of money under this loan was repaid. How much was repaid before it was written off?

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

Maybe for a specific answer on this question, I can pass it to my deputy.

[Simon Kennedy]

Madam Chair, we can get you the answer to that, but I don't have it immediately available. It's readily available so we can come back.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Why was this loan written off?

[Douglas McConnachie]

If I may, Madam Chair, as a normal part of government operations we do occasionally incur situations whereby, whether it's loans or grants and contributions, there's an inability to collect repayments. We have debt writeoff regulations that provide a facility for which to write down debts that are deemed uncollectible when all measures have been taken.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Will you table with committee all documentation related to the decision to write off this loan?

[Douglas McConnachie]

All debt writeoff decisions are required to go through a departmental governance, and those records and decisions could be made available, I believe.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Is that a yes?

[Douglas McConnachie]

I believe so. I would have to confer with my colleagues at ACOA.