Mr. Speaker, it is a pleasure to contribute to second reading debate on Bill C-46, an act to establish the Department of Industry.
The bill will establish in law the new Department of Industry that was created in June 1993 by the former administration. While always a powerful ministry historically run by a powerful minister, this new Department of Industry is an amalgamation of the former Department of Industry, Science and Technology Canada, the former Department of Consumer and Corporate Affairs, the telecommunication side of the Department of Communications and Investment Canada.
The Reform Party has two major objections, beginning with clause 13(1), part I, of the bill. This clause gives the minister full rein over shaping industries to suit special needs of certain industrial or commercial establishments, organizations or persons who are members of a particular category of persons defined by order of the governor in council. I will develop our concerns regarding this issue a little later.
Our second area of concern surrounds part II of the legislation, regional economic development in Ontario and Quebec. The bill places responsibility for Quebec and Ontario under the Minister of Industry. This should be interesting. Would I like to be at the cabinet table listening to deliberations?
In any event before I focus more directly on these two major concerns with the legislation I would like to put this exercise of departmental chair shuffling into an historical framework. I think this is a worthwhile exercise in view of this latest attempt via Bill C-46 to bring some continuity and focus to the disparate nature of this department, in particular its responsibilities, focus and scope of activity.
The industry responsibilities within the Canadian government really date back, for the sake of our examination, to the late C.D. Howe and the department of trade and commerce and its main operating division of the department of defence production. Those were the days of the dollar a year people, the C.D. Howe recruitments who kept Canada's materiel infrastructure running during World War II. C.D. was a powerful minister who ran a clearly powerful department with tentacles of influence, not only during World War II but up until the 1960s in many other departments.
The department of trade and commerce not only held sway in Ottawa but also controlled the regional development side. By the 1960s the industrial and commercial dynamics were changing in Canada and the beginning of constant change in the industry portfolio was taking hold.
In the early 1960s the government created the Department of Industry. The then deputy minister, Simon Reisman, began recruiting advocates for industry from the business community. Some of these business people were competent, some were not as we hear. Terrible infighting ensued between these new young business types in the existing career civil service within the department. The department meandered around looking for stability, purpose and reason for approximately eight years.
In 1968 because of this constant bickering over what the focus should be, either an advocate for business or a policy maker, the then administration created the Department of Industry, Trade and Commerce. The operative word and function in this new arrangement was obviously the inclusion of trade in this new dynamic. Now we have the career commerce people, the business advocates from industry and the traders. This is quite an arrangement of personalities, agendas and egos.
In most of the disagreements that ensued over what the department was supposed to do, the industry advocates usually won. However, another merger was on the horizon. That was the advent of DREE. In the early seventies the department of regional economic expansion became a hotbed of politics, largesse, monument building and subsequent turf wars.
This new department focused on regional development first in the Atlantic provinces, soon after in Quebec and slowly through Ontario and as far west as Saskatchewan. That is where the DREE gravy train stopped. Alberta and B.C. were considered too rich to participate in these economic expansion schemes. The politicians representing those two provinces had no clout in the Commons or at the cabinet table.
Two interesting twists within DREE were two programs, ARDA and special ARDA. The former ARDA, agricultural and rural development agency, dealt with regional development opportunities and special ARDA was responsible for native economic development opportunities and employment initiatives.
To many, DREE was more than a series of questionable funding projects, from Michelin Corp. in Nova Scotia to Bricklin Inc. cars and Mitel switching equipment, all funded by DREE. Again turf wars ensued but the money flowed like water to the project of the month.
After the DREE period we had another merger. This new department known as DRIE, the department of regional industrial expansion, again had lots of money to throw around mostly through a program known as the industrial research development program. At the same time the trade component was moved to external affairs to complicate it more. It was a time of good old style patronage with a tinge of legitimate cutting edge technological development.
Some time in the mid to late 1980s, with the science envelope evoking worldwide opportunities, the department was renamed industry, science and technology. At this time the agriculture, fish and food component was transferred to Agriculture Canada.
The department was becoming fragmented, faced with constant change and constantly eroding capabilities. Forces were scattered and the usual turf wars continued. In the wisdom of the former administration, another change was made and the government created the department of industry. That is why we are here today continuing the revolving door instability and constant quest for change in the hope of getting it right.
We have come full circle and returned to the early paragraphs of my address.
I would like to focus now on our objections to Bill C-46. Let me look first at the always troublesome regional development side. Bill C-46 clearly indicates that the minister will look after Ontario and Quebec. Currently no one is sure who looks after Ontario, but make no mistake about it. The Minister of Finance, not industry, looks after Quebec at this time.
We have no problem with the Minister of Industry assuming responsibility for Quebec and Ontario, but what about the rest of Canada? This bill continues the balkanization of the rest of the country. The squeaking wheel continues to get the grease. I wonder which of the three ministers responsible for regional development really holds the grease: the Minister of Human Resources Development for the Western Diversification Office, the Minister of Public Works and Government Services for ACOA, the Allan MacEachen of the 1990s, or the Minister of Industry now responsible for Quebec and Ontario.
What a mess: a department for Ontario and Quebec, a department for the west in WDO, and a corporation acting like a department at ACOA. It may not be a department for the minister of public works at ACOA but I am told that the minister of public works will expunge the name Allan MacEachen from the lexicon of the east coast largesse dictionary. He is on a roll and this mishmash arrangement is sure to cause more regional strife.
The position of the Reform Party on regional development is that it should be eliminated so that all areas of Canada are treated equally. We want to get rid of a system where conflicts rise between ministers who are supposed to choose in the
interests of the country nationally but choose regionally due to their regional development responsibilities.
The legislation ensures that bias and regionalism continues. In part IV of the bill powers are granted under subclause 13(1) to the Minister of Industry, which could be construed to mean that the minister and the department can engage in central planning of the economy, far beyond the more sensible approach of letting industry choose the equilibrium and letting experts run their own affairs. State run involvement, as subclause 13(1) seems to indicate, is anathema to good business management and we oppose it.
The Reform Party values initiatives and enterprise. We do not see the government role as being responsible for fostering and protecting an environment in which initiative and enterprise can be exercised by individuals and groups.
In most reorganizations and rationalizations in the private sector, which is the real world, business makes these changes to downsize, to save money and to improve profit margins. In the case of government and Bill C-46 we have amalgamated four departments. One could realistically expect staff reductions. From a total of 6,000 employees we will see a reduction of 230 staff members, probably through attrition. What level of public servant are we talking about?
Another dynamic of rationalization, as I have said, is cost saving. Out of a $3 billion budget it is estimated that department spending will be reduced by $26 million or less than 1 per cent. The bill lacks any coherent vision of industrial strategy. It fosters regional economic development initiatives against a backdrop of vague national strategies.
The bill continues the saga of reorganization for the sake of reorganization in a constant quest to get it right. It confirms that the Minister of Industry and the government share a Tory vision of industrial strategy. After all, it is a Tory initiative.
The bill continues the interventionist role of government, the flawed notion that government sets the course and business steers it. Free market principles and fairness for all should be the hallmark of our industrial strategy.
I hear the infighting has already started at the new department. It has even spilled over to the Department of National Resources, whose employees are looking for something to do and are sticking their noses into the new department's business. It is business as usual at the C. D. Howe building. Too bad C. D. Howe is not around.