Industry Committee on Feb. 27th, 2020

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

The network of Canadian Deposit Insurance Corporations, the SADCs, is one of these tools. However, funding for these corporations has not increased in 12 years. That has consequences. In a region like mine it is important because it allows them to carry out their mandate. They have been receiving less and less funding, not just for investments, but also for their administrative budgets.

Is any thought being given to providing additional resources?

The network would like $42 million over five years, including $10 million for Quebec, and five-year funding that is adequate, indexed and fair.

Does your department plan to do anything about that?

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

Far be it from me to correct my colleague, but our government did increase the funding for SADCs in recent budgets. We recognized that the SADCs were important. We had to find other means of funding, not just through CED, but also through the funding provided by CED to the SADCs that finds its way to small communities. The funding was increased.

I recognize that it is not perfect and that we can always do better. I would be happy to have some serious discussions with you and other members interested in the SADCs.

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

I am pleased to see this willingness to make more investments.

The post-election period is always turbulent, which I am seeing and can understand. Businesses are also feeling these effects, which are connected to CED's new priorities.

Can you tell us more about the strategies? We hear a lot about growth and innovation, but how can we quickly provide support to our businesses so as to eliminate uncertainty?

It seems that relations with CED develop more slowly.

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

This is what our government has done. For the first time in decades it has put in place a major industrial policy to support innovation. The objective was to foster innovation not only in our major centres, but also in all regions. For that reason, CED created a new program to support innovation.

Innovation is important to productivity and competitiveness. We spoke about this in another context. We know that we have labour shortages. Having the ability to invest in innovation creates new tools for our corporations and SMEs to purchase equipment and, essentially, to do a little more sometimes with less. That is why we wanted to launch this new program.

Ultimately, funding for CED has also increased. Generally, everyone should benefit. That said, if businesses are dealing specific issues, I would be pleased to work with them to address their concerns.

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

There are expectations. However, as I mentioned, there is a context of uncertainty.

You support the federal tourism growth strategy, and it is also mentioned in your mandate letter. To grow regional economies, we are talking about investing $100 million to meet local needs of communities that depend on tourism.

How will that actually be rolled out in our regions?

How can we help our regional tourism agencies, among others, obtain this money?

My basic premise is that we pay half our taxes to Ottawa. How can we ensure that this money comes back to us?

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

This past year, I had the opportunity to go to your beautiful part of the country on two occasions.

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

It was during the election.

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

No, it was even before we implemented our new tourism strategy. After announcing this new strategy, some projects in your region received support, and I would be happy to discuss this with you.

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

I followed that with...

[The Chair, Liberal, Sherry Romanado]

I'm sorry, Mr. Lemire, your time is up.

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

Thank you.

[The Chair, Liberal, Sherry Romanado]

The next six-minute round goes to Mr. Masse.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

I'm going to continue with the tourism discussion.

Has the member from Windsor—Tecumseh briefed you on the single-event sports betting issue with regard to the Canadian law?

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

I had the chance to be in Windsor, in your neck of the woods two weeks ago, and I also spent some time with our colleague from Windsor—Tecumseh. Yes, he raised it.

[Brian Masse, NDP, Windsor West, ON]

Good.

I've been on this for about a decade. For members who aren't aware, this is what I'm leading to, because the evidence is coming in. In Canada, it's illegal to bet on a single event, a game. It stops provinces such as Quebec, British Columbia and Ontario from offering a legal product, so $10 billion goes to the underground economy or to organized crime.

New York State has already legalized it. Michigan could be doing that in a matter of days, or actually I think they just did it, as well as several other states. Therefore, there's an issue over tourism loss there.

You voted against changing that law in the last Parliament. We have a chance now. My colleague, Mr. Kevin Waugh, has tabled Bill C-218, which would actually allow the provinces to regulate this. It would be done on our phones, as it's done in Europe and the United States. Will you support Bill C-218, and if not, what is your cabinet going to do to support communities such as Windsor, Niagara Falls, Sault Ste. Marie and other places that are going to lose tourism?

The evidence is in from the industry that it is driving up tourism, so if you are not going to support the bill, what are you going to do?

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

I understand the question has been put to Parliament. Since Parliament is seized with the issue, obviously we'll have the chance to debate it, and eventually cabinet will have to position itself.

Notwithstanding the fact that it is not necessarily within my portfolio, I'm willing to have good conversations with you, to hear your perspective on how we can create good economic development and good jobs. I know there have been issues in Windsor in particular, since the unemployment rate has been higher recently. We need to find solutions to make work for people, and there are good opportunities in tourism.

I understand also that my colleague at Justice will be working on this. I'm willing to be part of the conversations.

[Brian Masse, NDP, Windsor West, ON]

That's fine. Thank you, and that's fair. It's just that time is evaporating on us in regard to this issue. The consequences are real and significant, and the opportunity has been lost.

We will send more information to you.

Secondly, thank you for visiting Windsor, but I do want to point out one of the challenges we face. It is nice to be invited as a member to events. Some ministers do it and some don't, so we still get the question about why we are at, or not at, events. I would welcome the invitation to attend with you when you come to Windsor so you see the full community.

One of the things I've asked this government for is a specific strategy to deal with the Detroit investment, which is upwards of $10 billion in auto investments over the last number of years. Canada is lagging in the auto investment sector. I'd like your thoughts specifically as to why we don't have a separate strategy. Can we develop a separate strategy to deal with this massive investment?

General Motors recently closed its Oshawa plant, and now it has reopened a brand new plant in Detroit. We still have a chance to get within the supply chain. I'd like your thoughts on how we try to get some of that economic activity. I don't see a plan yet.

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

There are two things. First and foremost, NAFTA is fundamental. We need to make sure that we can sign it and ratify it. As you know, we're convinced we were able to get a good deal for Canadians. Mexico has ratified it. The U.S. has ratified it. It's up to us to ratify it. I would like to commend you, my colleague, for supporting NAFTA ratification. Let's just do that. That's the first point.

The second point is that I see my role also as the minister of the supply chain of many industries. When I was in Windsor, I met with Jon Azzopardi, from Laval Tool.

[Brian Masse, NDP, Windsor West, ON]

Yes, and he testified here at the committee, with David Cassidy as well.

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

He wrote me about that.

When you look at the evolution of his business, he took it from his mom and dad. It's a company that for over 50 years has not only been part of the auto supply chain, but part of advanced manufacturing in general. He's now exporting his moulding expertise to South Korea and France.

That's why we were there, to invest in his business and create 40 new jobs, but also what we're trying to do is to make sure that, while we are invested in the supercluster of advanced manufacturing, while this is done within ISED, we are doing it within FedDev.

[Brian Masse, NDP, Windsor West, ON]

What I'm after, though, is either a yes or a no. Will you create a specific strategy for the Detroit regional investment that's taking place? That's what I'm looking for.

The Canadian Automotive Partnership Council used to meet on a regular basis. They barely meet. We didn't follow Ray Tanguay's guide. We paid for Ray Tanguay's auto strategy. He handed it off to the minister. We haven't done anything with it.

I'm looking for specific commitments to deal with this unique investment that's taking place and affects jobs all the way to Toronto, and even into Quebec.

[The Chair, Liberal, Sherry Romanado]

Mr. Masse, unfortunately that's your time.

The next round of questions is five minutes.

Welcome, Mr. Zimmer.

[Bob Zimmer, Conservative, Prince George—Peace River—Northern Rockies, BC]

It's good to be back. Thank you, Chair.

I have a question about an announcement that was made about the digital Northwest Territories initiative that received $2.7 million to provide digital literacy resources across the Northwest Territories. This question is to the officials, not the minister, although I appreciate that the minister is here.

Specifically, it's $2.7 million, and the description is, similar to what was said in the news release:

The digital Northwest Territories initiative will provide digital literacy resources and courses customized to the unique needs of Indigenous peoples and residents in the Northwest Territories.

The reason I'm here is that I am critic for northern affairs and Northern Economic Development Agency. That's why I'm borrowing this seat for a time.

As more specifics about the grant, the multi-year grant or contribution is dated 2018-19 to 2021-22. The recipient's operating name is Tides Canada Initiatives Society. The federal riding name is Vancouver East.

Essentially, that's my question and that's where I get a little concerned, because in representing the north, we see monies earmarked for the north and it triggered a little question: Why is it ending up in Vancouver East when it's earmarked for the Northwest Territories?

Here is a bit more, regarding the news release:

DigitalNWT will develop resources and courses customized for the unique needs of the people living in the communities across the territory. The initiative, a project on Tides Canada's shared platform....

Again, the concern is whether the money is actually going to get to the people of the Northwest Territories. I'm concerned about the specifics. I really have two questions for you. Regarding the group that is mentioned, Tides Canada, I'll use several sources. One source says:

U.S. tax returns and other documents show The Sierra Club of B.C. has been paid at least $99,000...by Tides, including funds earmarked “to stop the Enbridge and Kinder Morgan pipelines, including working with First Nations.”

Another source says:

Tides also paid $373,835...to the Great Bear Initiative Society, led by Art Sterritt. That included funds specifically earmarked for responding to the media.

My concern is based on the affiliations of this particular group, Tides. I'll ask this in an official capacity, because I'm looking for more documents. Specifically, it hasn't really been said how this money is going to be spent. As we know, $2.7 million is a lot of money. Based on, again, this group's prior initiatives, I'm very concerned that this money is going in a direction that not all in Parliament would support.

I would like any documents related to the funding approval. That's my first request. I'd be happy if you could provide those documents today, but I understand it might take some time.

My second question is one that you can answer today: Were you instructed by the government to disregard this organization's anti-development narrative when approving this funding?

[Douglas McConnachie]

Madam Chair, we do not have the documentation with us, but we'll be happy to take the question back and see what we can find across our portfolio.

With regard to the second question, no, we would not have taken direction. Our role is to advise and allow the delegated officials to make their decisions.

I'd just like to address your previous question with regard to the funding being provided to an entity based in Vancouver whereas the ultimate destination is the north. This is not an uncommon phenomenon. It can happen on several occasions where the recipient of record may be in a different riding or location than where the funds are distributed. That may be because their legal entity is in that area.

It also may be—and I don't know if it's the case in this one—that in some instances funds are provided through third party delivery agents. Therefore, the official systems of record in our organizations would only record where we made the disbursement but maybe not where the final disbursement was made.

[Bob Zimmer, Conservative, Prince George—Peace River—Northern Rockies, BC]

When will those documents be forthcoming?