Madam Speaker, I welcome this opportunity to participate in the debate on this bill to establish the new Department of Industry.
As you know, the department is given wide powers including not only functions previously assigned to the former Department of Industry, Science and Technology, but also certain functions of the Department of Communications and the former Department of Consumer and Corporate Affairs.
The Department of Industry is responsible for the administration of government programs in support of the industry, including small businesses, tourism, science and technology. All government activities relating to science and technology come under the Department of Industry, including those carried out by agencies like the National Research Council, the Canadian Space Agency and the Natural Sciences and Engineering Research Council, just to name a few.
Telecommunications policy, consumer protection and corporate affairs in Canada come under the Department of Industry. This is a very wide mandate.
Naturally, this bill deals with government organization. And while organization is important, it is the policy set forth by the department that is the essential factor. The department objectives are stated in Section 5 of the bill: a ) strengthen the national economy and promote sustainable development; b ) promote the mobility of goods, services and factors of production, [-]and of trade and commerce in Canada; c ) increase the international competitiveness of Canadian industry, goods and services[. . .]
And the list goes on. My point in quoting these examples is that this government's action is in fact based on Chapter 3 of the famous red book, the Liberal electoral platform. This chapter is entitled "An Innovative Economy". I would say that this document, the red book, was innovative in that it emphasizes the importance of the small- and medium-sized businesses in the modern economy.
Let me quote briefly from page 47 in Chapter 3 on an innovative economy, where we read that a "Liberal government will focus on small- and medium-sized businesses because they can and must be the determining factor in turning around what has so far been a jobless recovery". Small- and medium-sized businesses employ 36.7 percent-almost 37 percent-of the labour force and account for roughly 40 percent of our gross domestic product. They have recently-in the 1980s-been responsible for up to 85 percent of new job creation in Canada.
In its electoral platform, the government undertook to improve access to capital for small- and medium-sized businesses. The industry committee has spent the past six or seven months reviewing this issue and will be tabling its report tomorrow. The government also promised to establish a Canada-wide technology network. Plans to that effect have already been announced. Here is another example. The government promised to promote technology partnerships between universities, research institutions and businesses, with a view to focussing on commercial applications of research and development.
Since coming to power, the government has embarked upon widespread consultations on the expansion of science and technology. Such consultations are carried out under the direction of the Minister of Industry, Mr. Manley, and the Secretary of State to Science, Research and Development, Mr. Gerrard.
I do not think members would find it surprising for me to say that I believe the industry committee has a particularly important role to play in policy development. Being the chairman of the committee, I suppose it is only normal that I would say that. Committee work may not always appear to be glamorous but it is in committees that the nuts and bolts of government policy become reality.
Tomorrow we will table our report on small business financing. The report deals with financing but it also tries to provide a context. We try to address the significance of small- and medium sized businesses in today's economy.
I referred earlier to the off-sided statistic that small- and medium sized business accounted for 85 per cent of the jobs that were created in the 1980s. Small businesses are important to job creation and community cohesion but there is more to it than that.
Not all small businesses have the potential to become medium sized businesses or big businesses. We need policies that address the needs of small businesses with strong growth potential. We also need to concern ourselves with the interactions between small and large businesses.
We need to be conscious of the competitive environment in which all Canadian businesses operate. We address these questions in the report that we will be tabling tomorrow. I hope the report will contribute to the debate and lead to policies that respond to the needs of Canadian businesses, small, medium sized and large.