International Trade Committee on April 27th, 2015

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Yes.

[Denis Leclerc]

For all of Canada's SMEs? Well, it's a good first step, but I think we need to see how we can optimize that first step. That's why we're promoting a tax credit for commercialization, which is indirect support to commercialize innovation from Canada and outside.

I think this type of money needs to be well invested, and as Mr. Hall was saying, maybe in some specific sectors where Canada thinks it has an advantage, where we have assets in Canada, and we have.... It's like the podium program for the Olympics. It was called “Own the Podium”. Which podium do we want to own, in which sector, and how can we help those companies reach the podium? That would be a good step.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Mr. Letenneur.

[Nicolas Letenneur]

From what I understand, this is a program that will help countries to export, but what are the conditions to have access to it?

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

The criteria is being developed. That's what I'm saying, how could it best help?

[Nicolas Letenneur]

It would at least be a step in the right direction.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Okay, thank you.

[The Vice-Chair, NDP, Don Davies]

Thank you.

Madam Liu, you have five minutes.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

If the help is available you will accept it, correct? Excellent.

Mr. Drouin, you talked about the carbon market in Quebec and how that is beneficial for your business. I think this allows us to balance the market, because as you said it makes it possible to make green companies more profitable.

Ontario recently announced its intention of joining the carbon market, as we know. We see that the provinces are playing a growing leadership role in this.

Do you think it is important that the federal government show leadership in reducing greenhouse gases? Is it sufficient for the provinces to act, or should we see action from Ottawa as well?

[Guy Drouin]

The market that includes Quebec, California and Ontario as well as the State of Washington, which is getting ready to join in, is extremely dynamic. It works, and takes advantage of certain mistakes that were made in the context of the Kyoto Protocol. For this market to continue to develop, it is important and even essential that the negotiations that are to take place in Paris in December 2015 be successful. Who has the responsibility of negotiating a climate treaty? Not the provinces, but the Canadian government.

It is important that the Canadian government and the provinces already in the carbon market sit down as soon as possible at the same table and define a common, strong and logical position so as to succeed in the climate treaty to be negotiated in December 2015, which is an extremely important undertaking,.

We cannot wait till November or two weeks before; work has to begin today. We must not fail in Paris. The last time there was a conference when all of the parties were together was the one in Copenhagen. They did not succeed in extending the Kyoto Protocol, and it took six years to again mobilize the international community under the leadership of Mr. Hollande, the President of France. We must not fail this time, because if there is no very clear treaty, private capital will not be there.

We should not forget that following the ratification of the Kyoto Protocol in February 2005, businesses launched 8,000 clean development mechanism investment projects in developing countries. I made such an investment myself in Salvador. It was the only Canadian project registered under the clean development mechanism of the Kyoto Protocol. These 8,000 projects led to private investments of $152 billion. So there was a mobilization.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

I must say that is impressive.

[Guy Drouin]

So there is a precedent in that regard.

I can tell you that I met people who invested because we believed that the Kyoto Protocol would be extended, and those people lost their shirt. This time we cannot fail. Since the provinces have already gotten on board and created a carbon market, I think that Canada could have a big influence.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

That is true.

Mr. Letenneur, we talked about transport costs. Could you make a more specific recommendation on how the federal government could help you? Could this be done through a subsidy or tax credit? What would you recommend to the committee on that?

[Nicolas Letenneur]

Regarding the initial phase and the first exports, a subsidy would encourage exports.

You referred to marketing, and that is what costs us the most. It could allow us perhaps to penetrate markets that are not yet accessible. Selling a container is very difficult, but selling a pallet is easier. Airplane transportation is very costly, and the cost means that most of the time, deals fall apart. The most difficult thing is to convince the client to make a purchase. Once that is done, a little hand up would really help us, and this would put us on an equal footing with Norway and Chile who do this on a regular basis, even for regular transport.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Thank you.

[The Vice-Chair, NDP, Don Davies]

Thank you.

Colleagues, we're going to have one last round of five minutes per party. We'll start with Mr. Shory.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Thanks again, Chair. I'll start with Ms. Laflamme.

Ms. Laflamme, in marketing medical science and technology, do you find the Government of Canada program...? You made a comment on BDC. You have used TCS. Have you used EDC or CCEC? If you have used these other services, have they been helpful? If yes, then what do you consider to be their greatest strengths?

[Michelle Laflamme]

We did not receive any help from the BDC.

Before an investor gets interested in injecting venture capital in the commercialization of an innovation, we have to cross, as was said earlier, “the valley of death.” There is a phase where we do not receive assistance. The marketing of a product like the iPhone or other common consumer products is not the same as the marketing of a medical innovation which has an impact on the care process. This requires more than my personal funds, or those of friends and family. A time comes when you have to find financial support. Without subsidies necessarily, we need to have access to more venture capital, or the BDC criteria have to be reviewed so that it can really help businesses to get going at a point where no one is helping them.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Have you used EDC?

[Michelle Laflamme]

EDC guaranteed my credit margin with the RBC. I have a credit margin with RBC for inventory when we go abroad. My margin is guaranteed by EDC.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Earlier from some witnesses we got a mixed report regarding coordination between, let's say in your case, TCS and EDC, if it was required. Do you want to make a comment, from your experience, whether you find the advice and services complementary at all?

[Michelle Laflamme]

Are you referring to EDC services?

[Devinder Shory, Conservative, Calgary Northeast, AB]

Yes, EDC and TCS.

[Michelle Laflamme]

In my opinion, there is a will to provide assistance at EDC. When a hospital purchases products, an insurance program can guarantee the payment. In general, hospitals often pay for their purchases, 8, 9, 10 or 12 months later. However, the EDC program lasts six months. So it is not a useful program for us. We don't even meet the insurance program criteria.

EDC wanted to adapt this program to our situation. The EDC people are not only dynamic, but they are also aware of our reality. They offered to make the program more flexible, one we would not have had access to because of our circumstances; the reality being that hospitals do not pay within 30 days.

The other program is the Export Guarantee Program. The person we met with took the time to discuss things with us. She went to meet with someone at my bank and a meeting took place there. There were discussions and things were firmed up rapidly within a one-month period. All of that happened quickly and in a dynamic manner.

The same thing applies to the Canadian Trade Commissioner Service. To date we have had good communication with the team based in Montreal and with Ms. Héloïse Côté, who is an energetic and professional individual. The key to having a good trade commissioner is to talk to that person. Ms. Côté is a part of my team and I communicate with her on a regular basis. In that way she can put us in contact with the right people in other countries and organize meetings with good goals. I have to date dealt with exceptional people at the Canadian Trade Commissioner Service.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Thank you. I believe this will be my last question, looking at the time. I'd like you and Mr. Letenneur to respond to it. What program or action by the Government of Canada has been most helpful in facilitating your exports, or would be most helpful if you decided to increase exports? You can start, Mr. Letenneur.