Mr. Speaker, it is a pleasure for me to rise today to support Bill C-99, an act to amend the Small Business Loans Act. This legislation is just part of the whole Liberal approach to government.
Members may recall the current Liberal government was elected on a jobs and growth agenda as promised in the red book. Two years ago the government was given a mandate to revitalize Canada's economy. All Canadians, including the people of Quebec, are benefiting from these promises.
Our economy is still recovering from one of the worst recessions in our history. The recession was not only just a slowdown of our economy but a massive reorganization of how our economy operates. It has been a painful journey.
The previous government led us down this debt ridden path but we are getting Canada turned around and moving back toward prosperity. The Liberal government through its jobs and growth agenda is creating an economic atmosphere conducive to job creation. Over the last two years we have created approximately half a million full time jobs.
The main pillar of our approach is to reduce the deficit. By reducing the deficit the government will break the crutches that are slowing down our economy. The federal government, as we all know, is under tremendous financial strain. Some people criticize our cuts, they are not enough or they are too much. But the government is committed to a balanced and a realistic approach. In contrast, the third party proposes devastation through its plan to eliminate the deficit in three years. I am no economist but I know that such a plan is much too severe and would do more harm than good.
Our deficit reduction plan is based on credible analysis of our situation. We have instituted short term goals that have been reached. We are on the track to achieving this year's target of $32.7 billion. In next year's budget we will reach our election promise of a budget deficit of only 3 per cent of GDP.
It will not stop there. We will continue to set short term goals and before the end of the century we will see the light at the end of the tunnel.
The proposed amendments to the Small Business Loans Act follow our plan. Some may ask how. We did not call our red book "Creating Opportunity" for nothing. These amendments will create more opportunities for small and medium size businesses to access the capital they need.
More entrepreneurs will obtain loans to make their business dreams become a reality. Through these new private sector initiatives, made possible by the Small Business Loans Act and the proposed amendments in Bill C-99, new jobs will continue to be created.
As some of my colleagues have already pointed out, the Small Business Loans Act is not new. However, earlier this year we made regulatory changes to the act in order to make it more effective and accountable. Only those who truly need our assistance will receive it.
The fee structure introduced in April of this year serves to encourage those applicants who are more financially secure to seek capital loans directly from financial institutions without the federal guarantee. It will also provide an incentive for borrowers to down the road seek normal commercial financing as soon as possible.
This is consistent with the many other policies we have introduced. Our government believes that it must carefully review all government activities, to recognize areas where we can achieve our objectives more effectively.
We conducted one of the most, if not the most, extensive program reviews by any federal government. This is one of those areas and we have made some necessary changes. Due to the competitive environment of the financial sector, we believe that the new fee structure, whereby the administration fee is incorporated in the interest rate, will improve the effectiveness of the program.
A further step has been taken by the amendments contained in Bill C-99. We have already made the program more effective and accountable on the user side of it, but now our side must be streamlined. Bill C-99 addresses that matter. With the implementation of this bill, the program will be a full cost recovery program. As I mentioned earlier, we are reducing our deficit. It is through changes like these that allow us to reach our deficit targets.
We will also be improving the loan guarantee coverage for low volume lenders. This is an important aspect that should not be overlooked. Better coverage for the smaller lenders will strengthen our financial sector. These financial institutions may be small, but collectively they count for a significant portion of the loans administered by this program.
Previously these lenders in relative terms were vulnerable to a greater proportion of losses. Due to the existing regulations, these institutions were limited in the amount of losses that could be claimed to the federal government. The new provisions create a more equitable arrangement for these small lenders.
On Tuesday I heard some members from across the floor state that this bill violates the democratic process. On the contrary, extensive consultations were held to get the views of all sides of the issues. We reviewed the report of the Standing Committee on Industry. What more do they want? We listened to the Canadian Federation of Independent Business. We listened to the Canadian Chamber of Commerce. We listened to the Canadian Bankers Association, to name a few. Through those consultations we obtained substantial support for proposed changes.
Furthermore, some of the provisions of this bill were a direct result of the report from the industry committee. On going back to the red book, we promised to regain the confidence of Canadians. We want Canadians to be able to believe in the political process.
Over the last two years we have been reintroducing integrity into the political process. Again, someone might ask how. It is by holding consultations with Canadians, by listening to Canadians, which is more than I can say for official opposition members. They are so busy listening to themselves that they cannot hear Canadians, including Quebecers, telling them they want Quebec to stay in Canada.
The Small Business Loans Act plays an important role in my province of Prince Edward Island. In the previous fiscal year loans under this program totalled $21.8 million. This is a substantial amount of money for a small province. Our economy is seasonal by nature. Any initiatives to create business operations that can counter the seasonal aspect of our economy are very welcome. Small firms wanting to expand can do so with financing under this program. Entrepreneurs with dreams of owning a successful business are given a chance under this program.
Our economy has an abundance of small and medium size firms. The Liberal government acknowledges this reality and knows how to address the concerns of Atlantic Canadians. When it comes to small business, a loans program is not the only solution. This is just part of a larger package. We have refocused our regional development programs on small businesses, in particular I am referring to the Atlantic Canada Opportunities Agency. ACOA has been instrumental in assisting small businesses in Atlantic Canada and it has done so through many varied ways.
I would like to point out a few recent activities of ACOA. Just last week ACOA hosted a delegation of trade representatives from the Russian federation. The delegates were here to pursue joint ventures between Russian and Atlantic Canadian firms. Among the topics discussed were geomatics, aquaculture, agriculture products and current trade activities in other sectors.
This is an important step for business in Atlantic Canada. We are becoming more aggressive in pursuing world markets and the Russian federation, although poor economically in many standards, is open for investment opportunities.
In September the Atlantic Canada Home Program was held in Halifax. The program was designed to take advantage of opportunities created by the deregulation of building standards in Japan which permits a wider range of home construction. Prince Edward Island was represented there by the provincial minister of economic development and tourism.
Canada is always searching for new markets to access throughout the world. Our economy is geared toward exports. Our relations within the global economy are what is helping to drive the Canadian economy.
The government is working with the private sector and the provincial governments to open up new markets abroad, to ensure that Canadian firms have access to markets they need to grow and create more jobs. We need to do all we can to assist in that aspect and Bill C-99 in part does just that. We are improving a federal program so that it can adjust to current demands and be more flexible to meet our future demands.
Last week, on the eve of small business week, the Association of Atlantic Women Business Owners hosted a conference, trade show and an Atlantic Hall of Fame for Women Entrepreneurs, a ceremony sponsored in part by ACOA. The theme of the conference was "New Markets and Opportunities for Growth".
To me that sounds a lot like our jobs and growth agenda. Is it not funny how our approach is similar to private enterprise? I believe that would suggest that we are going about our business in the correct fashion.
Earlier in the fall also in Halifax key stakeholders in the Atlantic Canada economy discussed the business support system for young entrepreneurs. This was hosted again by ACOA. It was designed to highlight the needs and challenges facing our young entrepreneurs and establish services to meet those needs as well as to encourage young people interested in starting their own businesses. These young people are the future of the country.
Mr. Speaker, I thank you for allowing me the time to speak in support of this bill because I believe it will give to the small business community the impetus it needs to get up and get going.