Madam Speaker, it is a pleasure today to speak on Bill C-99 and related amendments 2, 4, and 6 put forth by our colleagues from the Bloc Quebecois.
The backbone of our economy is made up of the small and medium size businesses in this country. They are the ones who truly create longlasting jobs within Canada. They are the ones who create real employment in our country. They form an essential part of our tax base in areas of innovation, science, technology, finance, and many other areas. They are something we Canadians should be proud of.
The small to medium size businesses are finding it increasingly difficult in Canada to function because of the high tax loads, the red tape they are forced to struggle under, and the difficulty they have in securing loans. Lending institutions within Canada are historically very conservative. Therefore, individuals in this country who bring forth many good ideas find it difficult if not impossible to have their efforts actually go to fruition. This is an enormous loss for Canada.
One just needs to look in the areas of medicine, science, technology, and the pharmaceutical industry to see good ideas going nowhere or in fact being sold to companies in other parts of the world. I recently read some very interesting information on this. I read about incredible ideas being born within our own country and being sent to other countries, where they become productive, profitable, and contribute to the society by providing long term, high tech, high paying jobs for people in other countries. This is indeed a sad thing.
Bill C-99, an act to amend the Small Business Loans Act, comprises efforts to put this program on the road to cost recovery. Everyone in this House approves of this. However, we are also addressing the amendments put forth by the Bloc Quebecois. We oppose these amendments because they bring the power of determining liability directly to the committee, instead of bringing it down to the area in this government that is closest to the public, and that is the House of Commons.
I would like to congratulate my colleague from Okanagan Centre, who put forth amendments that were adopted by the committee that would bring the decision making process closer to the people, and that is the House of Commons.
I find it quite strange that members of the Bloc Quebecois are putting forth amendments but are not addressing some of the large issues that are affecting their province. Sadly, Quebec in recent times has seen economic destitution and social problems unrivalled in its history. It is easy for the Bloc Quebecois and other separatist forces to blame history and Ottawa for these problems. But I ask
my honourable friends in the Bloc Quebecois, does not responsibility for some of these problems rest on their own shoulders? Is it not the intent of the separatist forces to carve Quebec out of Canada? Are they not at least partly, if not largely, responsible for the terrible economic and social destitution we see in many areas of Quebec? One just has to visit the eastern part of Montreal to see this in real life.
I hope the hon. members of the Bloc Quebecois will look toward building a united Canada and addressing the economic and social problems that affect all of us within the context of this country. I find it extremely strange that they say that if they did not have to give their tax base to Ottawa they would be a lot better off. I ask them to wake up and look at the fact that net transfer payments go to Quebec and not to Ottawa. I ask them to remember that before they continue to pursue their course.
I would also like to address some of the problems that are affecting small and medium size businesses and put forth some constructive solutions. As I said before, small and medium size businesses are have increasingly difficult times because of the high tax loads they are forced to work under. This is indicative of the government's huge tax loads. With these huge tax loads, the high debt and deficit we have incurred, we are forced to pay off increasingly larger amounts of interest on these debts. As a result, interest rates in the country are higher than they ought to be and tax rates are also higher than they should be. It makes it very difficult for these companies to compete in other countries.
The industry committee supported the fact that federal, provincial, and municipal governments should get their fiscal houses in order so that interest rates may be brought down and more money made available to companies, making a stronger, healthier dollar. It would provide an element of stability that is essential if small and medium size businesses are to be effective competitors in the future.
In talking to business, we have found that one of the greatest obstacles they face is the red tape they must endure. It is extraordinarily strange that the great ideas put forth in this country have to pass through so many loopholes to get to where they can be effective that many do not achieve their ultimate end. Red tape that is supposed to work for businesses is in effect choking them. We need to take a very close and hard look at this. We need to work with the finance and revenue departments to determine ways in which we can decrease the red tape and make businesses more effective and virile competitors in this country.
I would also like to raise the issue of using tax incentives to make more capital available to businesses. Indeed, the industry committee looked at this and suggested that decreasing capital gains tax rates for long term investment in Canadian small and medium size businesses would be an effective way to provide these companies with money to invest to build their businesses. Maintaining the $500,000 capital gains exemption is also a useful technique. If that were applied to small and medium size businesses, it would provide more capital for them.
Relaxing the use of RRSPs in investing in one's own business is another measure which would put the responsibility back on those brave men and women who like to go it alone and try to make a private business work. They could use their own funds to invest in their business.
We also need to find ways in which the public can invest in Canadian companies. We need to define new financial relationships for the government, the banks and the private sector.
We can look at many examples. Germany and Japan are two giants which have managed to capture large segments of markets throughout the world. In part that is due to the unique relationship which the private sector has with the lending institutions in their respective countries. We do not have to reinvent the wheel. There are many examples in the world of these ideas being put into effect to support business.
In summary, small and medium size businesses are the backbone of the Canadian economy. They are an invaluable source of taxes for the federal and provincial governments. They are the primary employers. Without these institutions the employment rate would be much higher. They provide long term, long lasting, high paying jobs for Canadians. It is the responsibility of the government and opposition members to support measures which would maximize the effectiveness of small and medium size businesses. Let us look at other parts of the world and find ways in which we can support the backbone of Canada's economy.