Madam Speaker, I would like to react today to the tabling of the industry minister's policy statement for his department.
Although this document has some good points, as we admit, we can only see it as a political document that seeks to make up for a non-existent substantive industrial policy; we were entitled to expect a substantive policy, given the state of the Canadian economy.
The statement refers to a plan of action for some thirty programs involving co-operation among ten or so departments. We already know that for some aspects of the announced action plan, some ministers will work together and we will only see the results in 1998, according to information we obtained for parts of the document. Some plans will only take effect in 1995, if then, according to conversations I had with people in the department.
We therefore think that this paper is premature, since the proposed new policies depend on other departments' policies which are not yet known or will come, very late, from consultations that are still incomplete and program reviews that are a long time coming.
We know very well that several key documents on social programs have not yet been tabled. How can the minister boast that his policy takes into consideration all that businesses need to achieve the desired growth? For example, the action to be taken by the Department of Public Works will not be known until 1995.
The minister wants to promote growth for small businesses by opening up government procurement and allowing companies to have access to what is available in terms of such procurement. However, we have no idea of where this will come from, nor when the action plan will be completed.
In the context of that growth, how will this access to government procurement for small businesses work? Will companies be allowed to register in some file? Will there be calls for tenders for professional or technical services? How will this plan work? We do not know. For companies, growth does not mean the same as development. Indeed, the growth of some companies does not necessarily promote economic development for a territory or a region.
Given these unknowns, we find it hard to understand why the minister is so quick to extol the virtues of his action plan and say that it meets an urgent need in the economy, and particularly a desire to develop small businesses, which will generate employment as everybody agrees.
The strategy for technological innovation is another example of the government's lack of global vision. Indeed, the minister is considering a technological innovation policy without knowing the results of the current consultations on research and development, which will only be completed in 1995.
The minister talks about consulting with partners. However, when you think of the information highway issue raised by Quebec, it is very hard to see the minister showing leadership, since his government is totally opposed to any dialogue on this issue.
How can the minister justify the existence of a true technological innovation policy while putting on the back burner the whole issue of research and development? By definition, innovation implies the search for new products and processes, so that companies are competitive in the international market. Otherwise, we obviously cannot talk about competitive businesses.
In his action plan, the minister proposes three strategic priorities: Support for small businesses, infrastructure and technology. As far as support for small business is concerned, the minister reluctantly proposes to maintain funding support through the Small Businesses Loans Act program. I say reluctantly since it is only because this program is mentioned in the red book that the minister has decided to maintain it, although without implementing the red book promise to get rid of personal collateral.
The minister is announcing that available funds will be increased to $12 billion because this program gets results. In itself, this is good news.
This program is so popular that businesses register quickly. Small businesses are a well-known fact; they are dynamic, eager to innovate and expand. On the other hand, the minister is announcing that the program will have to be self-financing. This is what the government is seeking, to go and get back the money it loaned. I believe that to be its fundamental goal. In itself, it is laudable.
But if we compare that to what the Minister of Human Resources Development is suggesting when he says that access to credit will be made easier for students, we quickly understand the equation. To save public funds, the government is forcing individuals into debt. What is the impact of this on SMEs? Are they going to be pushed deeper into debt or will they really get help to start up or develop domestically or internationally?
Thus, without even conducting a cost-benefit analysis, which could have shown the efficiency of the program and indicated which policy was preferable with respect to tariffs, the minister is acting, in our view, as an amateur, increasing, without any consultation, the cost of financing SMEs. We can draw a parallel with the social reform whereby the government says that it will cut support to students, but they will be given the chance to go deeper into debt while the government sets up mechanisms to recover the loans it guaranteed.
I wonder whether this is a responsible way to behave for the government and especially the industry minister, in the present economic context. Although some people on the government side sometimes think we are the bad guys, I must congratulate the minister on announcing measures to reduce red tape.
Everybody is complaining and rightly so. Everybody agrees, every time you want to do something you have to fill out 16 different forms and send them all over. Therefore this is a good move by the government. Reducing red tape is something SMEs have been asking for for a long time in order to stop wasting time and resources. Imagine having to submit 119 pages of information to get $10,000. Finally we are giving SMEs what they have been asking for.
However, I would like to point out to the minister that we are here to promote a sovereign Quebec and I mentioned the information highway where the message to the minister was to open up to negotiation and co-operation. The minister did not open up, so I remind him that under our option, a level of government-the federal level-will disappear, thereby reducing red tape, inefficiencies and regulations often at cross purposes, making our industry much more efficient. This is a clear goal.
The government is continuously reminding us that we must create the atmosphere for growth in the high-technology sector. We agree. SMEs in that area represent the future of our industrial base. True, high-tech SMEs are creating the jobs of tomorrow and will be mainly responsible for our ability to maintain the high standard of living we need and must have.
It is therefore regrettable that the government would not propose any policy to stimulate their growth and, in particular, improve their financing. We must realize that these companies pursue speculative endeavours and have specific financing problems. Banks are seldom willing to finance technology and this brings me back to the role of government. It says it wants to recover its money, and it acts like a banker. We know what a bank does, it loans money when it is reasonably certain that it is secure. Precisely what the government is doing.
Yet, there are technological areas where risk is high. It is impossible to act like a banker in the sense that we cannot expect all the guarantees that a bank would normally require. That is obvious.
If we really want to encourage the development of these businesses, we must provide ways to find more appropriate funding for them. In our dissenting opinion to the report of the industry committee we proposed extending the Small Businesses Loans Act in order to fund the working capital of all businesses. This would have made it possible to support the financing of small and medium size high-tech enterprises. Instead, this government proposes a piecemeal strategy with a program that would only provide exclusively for the financing of exporting SMEs.
Even the Canadian Association of Exporters recommended to the industry committee-and I do not know if the minister has heard about it-that the working capital of exporting SMEs be financed under the act. The government does not listen to the people involved.
As for infrastructure, the minister praises the transport minister's policy. We have seen what has been going on in that area up to now and we are not at all heartened. If this is an indication of what this government intends to do about transportation, we should expect the worst.
We believe that the national policy on airports, among others, is nothing but a disguised way to pass on the cost of regional transportation to municipal and provincial governments. This process had begun under the previous government and we already see costs being passed on to other levels of government.
Furthermore, the federal government has the nerve-and this is important because they did it in several departments-to keep the revenue from the national network of airports and use it to finance regional airport infrastructure while disavowing any responsibility for their operating costs. This is how the federal government wants to manage public property and public funds throughout Canada.
This is what federalism is all about. This is it. The federal government keeps the power even though it cuts funds and totally withdraws from the administration of services. As we were told, it does not have any choice, it is debt-ridden. It will have no choice but to turn to the provinces for help, and will be
unable to return the favour. The facts are really very simple. Everyone understands the situation.
The Minister of Transport is following a policy which jeopardizes some regional transportation facilities and will greatly increase the cost of transportation from region to region.
The information highway is the best example of the total lack of consultation and co-operation between the federal government and the provinces. As I said earlier, the minister is about to ask the CRTC to significantly change the regulations concerning telecommunications in order to facilitate the creation of this information highway, without even consulting the provinces. The information highway will have a major impact, as you know, on a great many areas, some under exclusive provincial jurisdiction.
In committee, we were very surprised to learn that the minister is going ahead with the information highway. But who will control the information to be found on this highway? Who will provide the information? One thing became clear in our discussions with officials from the Department of Industry, nobody has the answer to these questions. This issue has not been examined yet. It will be in the months to come. We are about to go ahead with the information highway without even making sure that its contents will be controlled and that there will be joint action with the provinces, which obviously have jurisdiction in this area.
Finally, I would like to address the issues of technology andR & D. The document tells us that Canada's effort in R & D is less than that of other G-7 countries. However, the Canadian government invests as much as its competitors in civilian R & D. This demonstrates how badly administered and inefficient the government's R & D effort is.
It is about time we thoroughly reviewed our involvment inR & D matters and adopted a true science policy for R & D. The government must be ready to question everything, to decentralize our technological efforts and to base our research laboratories outside Ottawa to take advantage of the scientific resources that are found across the country and make better use of them. This may create some synergy with the scientific research capabilities throughout Canada.
To conclude, the document tabled by the minister is nothing but an incomplete policy statement, which contains many policies already announced by his colleagues and others that will be announced by 1998. Thus, to be able to put Canada and Quebec back on the prosperity track, we have to consider-