Mr. Speaker, in an ever-changing world where money is tight, we must make it our duty to expend boundless imagination in discharging our responsibilities towards Canadians.
The loan guarantee program put forward by our government flows from a lengthy analysis of the requirements of the film and video industry and is a clear indication of our commitment to dole Canadian taxpayers money out sparingly to maximize their return on investment.
A fledgling industry 20 years ago, the Canadian independent film and video industry has grown into a major employer which produces high quality entertainment programs.
The economic significance of the film and video industry is beyond doubt. Since 1980, 700 per cent growth was recorded in this industry, with a similar growth in employment, as shown by 1993 figures from Statistics Canada according to which the industry provided over 51,600 direct and indirect jobs, which translated in terms of direct and indirect benefits, into a contribution to the gross domestic product in excess of $1.8 billion.
The growth of the film and video industry is linked mostly to the federal government's support policies and programs in this area. The federal government has a dual responsibility. First, not to endanger 20 years of constant efforts to develop an industry whose growth prospects are not in doubt and second, to continue to act in an efficient manner by taking budget constraints into account.
The Loan Guarantee Program proposed by the government meets these criteria for it is fiscally neutral for the government while providing easier access to interim financing for television programs and films produced by Canadian companies.
Historically, Canadian financial institutions did not help finance the film and video industry mainly because of their unfamiliarity with the industry and its commercial practices. We think a $25 million Loan Guarantee Program could generate, if used to its full potential, up to $143 million in film and video production activity and up to $300 in the Canadian economy as a whole.
The Loan Guarantee Program proposed today demonstrates the government's commitment to protecting Canadian cultural sovereignty while promoting optimum use of Telefilm Canada resources and expertise. It also meets specific needs by optimizing the performance of available resources and fostering a promising business partnership.
It also shows our confidence in the Canadian film and video industry and its entrepreneurs who, as we know, support our initiative. It is through this type of measure that the government intends to promote the development of a growing industry in the best interests of Canadian culture and unity. We think this program will be successful and are even considering extending the concept to other cultural industries.