So, Mr. Speaker, I shall have two speeches.
I am pleased to speak today on the Small Business Loans Act. I shall address the key principles rather than its details, which some of my colleagues with an in depth knowledge of this field have already done.
I wish to point out that this bill is part of a total strategy for supporting the growth of small businesses, particularly their access to capital. This must be clearly understood. We wish to provide more help to small business so that they may grow, have greater access to capital and thus create additional employment. We are very much aware that the bulk of jobs created over the past decade have been in small and medium size businesses. The figures indicate 85 to 90 per cent. This is very impressive.
This bill was proposed after much consultation with lenders and borrowers. It is not something that we just decided to impose. It is not something where we are just going ahead without consultation, without advice from all sides, because we believe that the way to have an excellent bill, with a better chance of success, with a better chance of being accepted by those targeted by it, is to ensure that there have been consultations. This has been done country-wide with the groups I have referred to.
Another very important aspect of this bill is self-funding. Yes, costs will be higher, because we want it to be self-sustaining, but this is in keeping with two government policies. The first is to decrease, if you will, grants and subsidies to business. We realize that, in today's reality, there is less financial flexibility and that we must reduce the costs of government. Reducing these financial supports, if you will, to businesses is one way of being proactive and attaining that objective.
Another objective is reduction of the deficit and the debt. Since this program will be self-supporting, there will be less government money going to businesses. This will have a positive impact on the deficit and the debt. I must add that the new program will provide a better response to businesses needing funding. This is very important.
We are well aware that 30 or 40 per cent of businesses receiving assistance at this time can go to a bank or a caisse populaire and have their needs met by those institutions. So, if 30 or 40 per cent go elsewhere for solutions to their financial needs, more financial assistance will be getting to the businesses that need it.
I have spoken to a number of Manitoba businessmen and businesswomen in my riding and all have indicated to me that this was a step in the right direction. This is an example of a federal government initiative which is country-wide, an example of what we can do together. I will close on this and pick up where I left off later on.