Mr. Speaker, you do not have to be rocket surgeon to figure out that if you increase the rate, if you lower the amount that is available, if you make it easier for the banks to roll over their delinquent or their poorer loans, people are going to take advantage of it. The problem is that we are making it easy for the banks to get rich.
Canadian taxpayers now subsidize the Small Businesses Loans Act up to $100 million a year. The government proposes a 1 per cent fee to offset anticipated future losses. However, the industry committee recommended that small business loans guaranteed under the act carry an interest rate commensurate with risk.
What specific safeguards has the minister implemented that will ensure this does not become just one big subsidy program for the banks?