International Trade Committee on Feb. 16th, 2017

[Bardish Chagger, Liberal, Waterloo, ON]

I'll be fast.

What's important is that we need our SMEs to consider export markets. We need our small and medium-sized businesses, regardless of the number of employees—and I actually do have stats for you, so I'll share them—to go global, to go export, and to share their programs and solutions with the world because the reality is that there are cities in the world that have more people in their cities than we have in our country. We are huge land mass-wise, but we are not big numbers-wise. I have worked for a small business as well in my life, and I've observed many people around me—

[The Chair, Liberal, Mark Eyking]

Minister, I'm sorry. This was all about dialogue and Mr. Van Kesteren comes up with these good ideas, but you never have enough time.

[Bardish Chagger, Liberal, Waterloo, ON]

We'll take it.

[The Chair, Liberal, Mark Eyking]

Maybe you can get some interjections.

We'll move over to the Liberals and Mr. Fonseca.

Go ahead.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you, Mr. Chair.

I love that you're here presenting to us. I love that you're an amazing role model for small businesses, and the reason for that is.... I want to thank you for the energy and the can-do attitude that you bring to this portfolio. It is so important, and I know Mr. Van Kesteren knows that.

Small businesses, with zero, one, or two employees, they wear every hat and they need to have that energy. More than the energy, they need to have the belief, the faith that they are going to succeed, every single day they have to get up. To know that you're in this job supporting them and bringing that knowledge.... They feel that when government and departments are with them and on their side, they can tackle those big obstacles. They're huge: an export strategy, export pricing, risk management, getting paid, legal issues, etc., things that they may not have any expertise in. For us to be able to support them in that way....

I want to talk about one particular company here. It's a Canadian story.

A gentleman came from Germany, as an international student, and landed here in Ottawa. He is now a Canadian citizen. He was going to sell snowboards online. He couldn't do it, couldn't figure it out. E-commerce just wasn't there, so he started a company called Shopify, here in Ottawa. The headquarters is still here. That was in 2004. They started to sell their own snowboards. Now they do e-commerce for over 300,000 businesses globally. I got a chance to visit them at their Toronto office, and they showed me people selling everything from tea to tractors on this e-commerce platform.

The levelling of the playing field now is the Internet and being able to support these small businesses so that they can put their products and services out there and sell them around the world.

Can you tell us a little about what you think is coming up? I think we are on the precipice of big things with small and medium-sized businesses, especially because of the Internet levelling the playing field.

[Bardish Chagger, Liberal, Waterloo, ON]

That's an excellent question.

My team just met with Shopify yesterday. It was interesting, because they are part of the solution. The more we engage and consult, and have these conversations, the more we find that every single person is part of the solution, just as every person on this committee is going to help us create those opportunities.

The innovation agenda will be quite the solution for e-commerce. We know that it is a challenge for some businesses to get online. We know that some rural and remote areas don't have full access, and that's why we need to ensure that there is a way of investing in connectivity. The connect to innovate program is an example of that. It will invest up to $500 million by 2021 to bring broadband Internet access to 300 rural and remote communities across Canada so that our SMEs, as well as communities, can grow and have those opportunities that we need them to have. That's how you create those opportunities and those jobs that were referenced earlier.

The BDC offers targeted initiatives for digital, websites, and using technologies. That's another partner we are leveraging and working closely with so that there is a solution for e-commerce, and more businesses are part of that world. We need people to be online. That's really how you can go global and consider export markets, because you don't have to be there physically but you are connected through the web.

NRC's IRAP helps businesses find other service providers, like the digital accelerators for innovation and research, and leverages Canada's investment in CANARIE and its research and education networks to provide Canada's high-tech entrepreneurs access to a free cloud. Those are programs and services that we are learning about and we know, but the right people don't know. That's why we are going to make sure that they know about those programs. We are going to communicate better and ensure that the voice of the people who know....

The office of consumer affairs offers guidance, such as the Canadian Code of Practice for Consumer Protection in Electronic Commerce—I can share that link with you as well and make sure all members have access to that information—so that you're actually thinking about the challenges, instead of having to face them once you're online. We want our businesses to be proactive instead of reactive, because when you are proactive you can achieve the growth and opportunities that we need you to achieve.

[The Chair, Liberal, Mark Eyking]

Thank you, Minister.

That was a good question.

We're going to move over to the Conservatives. Mr. Ritz, you have the floor. Another successful business person....

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Thank you, Mr. Chair. If I were that successful, I wouldn't be here.

[Voices]

Oh, oh!

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Thank you, Minister and colleagues, for being here.

I have two quick points to make and I'm looking for yes-or-no answers. My first role in cabinet was small business and tourism, so I know that it's a very exciting file. There's a lot going on. We have a very dynamic small-business group and a very exciting tourism industry in this country.

First, with regard to budget 2017, we're already seeing small campgrounds being taxed. Will that carry on through budget 2017 or will you let those family-run campgrounds breathe and move forward, especially in year 150, which we're celebrating?

Second, your Prime Minister is on record as saying that a lot of home-based businesses are just crooks, that they use that as a crutch to hide from taxation. I just want assurances that simply because they are home-based—we talked about owners doing everything, trying to get a start, and so on—they won't face an uphill climb out of budget 2017.

Will you lighten up on the tax levers on those two enterprises moving forward through budget 2017, or will they get hit?

[Bardish Chagger, Liberal, Waterloo, ON]

It's a pleasure to be with you.

When it comes to the campgrounds file, the ministers for Canada Revenue Agency, Small Business and Tourism, and Finance are working very closely together to ensure that information—

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

All together?

[Bardish Chagger, Liberal, Waterloo, ON]

Yes, all together, which actually helps when you communicate with each other—

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Yes, we did that too. We called it “cabinet”.

[Bardish Chagger, Liberal, Waterloo, ON]

I will say, though, that we are making sure that SMEs are able to communicate with the people they need to in CRA, to get the information, and we are committed to tax fairness.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Sure—

[Bardish Chagger, Liberal, Waterloo, ON]

We will ensure that our SMEs have the opportunities. We know that SMEs cannot compete with big business, and that's why we are a full voice for them. For the first time in the history of the nation—you would know this very well, because you've held the portfolio—you have a full minister with a team to do the work to represent this full time. That's what's important.

This is taking these stakeholders and these voices seriously. We're talking about 99% of all business and about 90% of the private sector workforce—

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Yes, I know the stats.

[Bardish Chagger, Liberal, Waterloo, ON]

—and ensuring that they have the resources to have an equal voice.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Sure, but the question was about budget 2017.

[Bardish Chagger, Liberal, Waterloo, ON]

Respectfully, when it comes to your comments in regard to the Prime Minister, he is a great advocate for SMEs. He does not only say it; we are going to talk about actions. Words are great, but actions mean just as much. That's why this government's actions will allow our SMEs to have the success they need to have.

You know where jobs are created. You know it very well.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Absolutely, so I'm looking forward to budget 2017.

[Bardish Chagger, Liberal, Waterloo, ON]

I'm glad you're looking forward to it.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

We'll have you back then.

Thank you.

[The Chair, Liberal, Mark Eyking]

We'll move over to Mr. Johns.

You have three minutes.