Mr. Speaker, my remarks on Bill C-31 will be premised on the assumption that most of us in this Parliament want to do what is best for our country as a whole and for the industries, such as the film and television industries which are a part of that entity.
What is the best role that Parliament can play? My thought is we should try to have the most thorough examination possible of any subject that forms the basis of a bill before the House.
I do wonder if Bill C-31's timetable is going to permit the examination the bill merits. It was tabled on Thursday, May 26. It was announced on Friday last that second reading would be today, Monday, May 30. I found out about it Friday afternoon. I do not think that is too much time to gather the facts on a subject one is not particularly familiar with.
One of the problems the public at large is having with the government and Parliament is the perception that decisions are made behind closed doors, that government with a majority in Parliament can do as it pleases. This House could dispel that impression by bringing things into the open. I am not suggesting there is anything concealed with Bill C-31, but surely more time for consideration would help the debate as well as the public perception of it.
What should be examined in detail is the whole concept of government assistance to industry versus free enterprise. There is a role for government to play, especially regarding start-up industries.
There is, for example, a real lack of venture capital in Canada. The government should not get into the business of providing venture capital, but it should encourage it through taxation rules on capital gains. If the government does get involved with the provision of loans or loan guarantees, it should do so for a strictly limited period of time. No industry that habitually depends on the government for support is going to prosper in the long term.
As we consider the extent to which the Government of Canada guarantees loans, we should be mindful of Canada's deficit and debt situation. With the federal debt at the $500 billion dollar mark the government must send out a signal of fiscal responsibility and a capability and willingness to get things under control. Its signal to date is inadequate. While Bill C-31 is a relatively minor matter, the loan guarantees it proposes exacerbate the government's position on the side of fiscal responsibility.
On the positive side of this bill we note that similar loan guarantee programs exist in several of our provinces. Quebec, Ontario, Saskatchewan, Alberta and British Columbia all have programs of guarantees. They have experienced a very low rate of default which is good news.
It is also noted that the Canadian Film and Television Production Association and l'Association des producteurs de film et de télévision du Québec both believe this program will be of great benefit to the industry. The government has stated it believes the program should only exist for a short period of time. That is on the positive side of it.
Also on the positive side, there is evidence of real growth in the industry in western Canada. Activity in indigenous Alberta productions has increased by 360 per cent in the last few years. British Columbia has enjoyed similar growth. This increase has come without any federally guaranteed loans. It shows that relationships between the producers and Canadian financial institutions is healthy and is improving. Perhaps this indeed demonstrates there is no longer a need for guaranteed loans.
This House should look closely at what is happening in the industry in western Canada, that the provinces alone are able to furnish the guarantees necessary and that this is having a very positive effect on the industry. It is growing and succeeding. Why then do we have to keep coming in with federal government intervention?
The other concern I would voice, but on the positive side concerns co-operation interprovincially and internationally. There are joint production efforts going on between the provinces and between our country and others. This also is a sign of success. That is where we should allow the industry to capitalize on its success and go in that direction.
If this program goes ahead another concern is the equitable distribution of loan guarantees. This is to be to all of the provinces. I would like to know from the government what process will be used to ensure an equitable distribution if the bill takes effect. If the effect of Bill C-31 is to regionalize the industry, to concentrate more development in Ontario and Quebec as opposed to the development which is going on in the west of Canada then again it is not going to have the effect it should be having. If it is going to regionalize, please let us make sure this regionalization is not concentrated in one area but is spread throughout.
The spokesman for the bill in committee mentioned a promise to get rid of Telefilm as a crown corporation. I would like know from the government what the time schedule is on that and when it thinks it should happen. Also, why was the statement made that Telefilm could eventually be done away with when the
government is doing more now to jack it up with Bill C-31? I do not quite understand that.
In conclusion, I encourage the government to introduce bills such as Bill C-31 with a little more leeway in the timing to allow for more comprehensive preparation for debate. We do agree the government has a role to play in encouraging industry, particularly fledgling industries in Canada. However, it seems to us the role should concentrate on providing appropriate tax incentives rather than loans or loan guarantees.
If in its wisdom and with its majority the government decides to proceed with this bill, we caution it to put a time limit in the bill, a sunset clause as it were, and to ensure that the international financial community fully understands why this temporary assistance to this Canadian industry is needed.