moved:
That, in the opinion of this House, the government should consider the advisability of providing a fairer future for Atlantic Canada by adopting policies and programs to create jobs through initiative funds for co-operatives, encouraging small business, upgrading municipal infrastructures and diversifying single industry communities.
Mr. Speaker, I begin by thanking the member for Moncton for seconding my motion. Basically, as the motion indicates, I am calling on the government to consider the advisability of providing a fairer future for Atlantic Canada by adopting policies and programs to create jobs through initiative funds for co-operatives, encouraging small business, upgrading municipal infrastructures and diversifying single industry communities.
Basically this motion is broad enough to include a major reassessment of government policy toward Atlantic Canada, a reassessment of whether those policies have been successful and an opportunity to consider maybe doing things in a rather different way.
What I will do is not spend too much time on the problems but put forward some ideas for solutions. I will draw upon the recent experience in Saskatchewan and British Columbia with regard to mechanisms for bringing together diverse groups in our society with the aim of building a vision for the future to which we can all be committed and to which we can then direct government policy and regulation.
Atlantic Canada has long been a region dependent on its natural resources and on the involvement of the public sector. Both have been allowed to decline as government policies and private sector decisions have conspired to create an environment that undermines long term development and sustainability of many of the communities and economies of the region.
The economic and political policies of the past that have resulted in the underdevelopment of the Atlantic region must be challenged and overcome. Policies that have promoted the export of unprocessed and semi-processed resources along with jobs that otherwise might be involved in that value added activity must be replaced with value added production and the skilled jobs that accompany those processes.
This will require the federal and provincial governments to be much more involved with the local communities in reaching this goal. Also we have to be cognizant of the impact of federal cutbacks over the last decade to the support structure of both rural and urban life in Atlantic Canada and be prepared to respond to those extra difficulties.
The future course of economic development must begin with the involvement of people in their communities working with their governments. This will require a new partnership with the federal government, the people, the communities and institutions; a partnership unlike any relationship that currently exists in Atlantic Canada.
In order to make that relationship work we must commit ourselves to some real and achievable goals. It should not be unreasonable to expect in Atlantic Canada that we move toward full employment; that we move toward a full opportunity economy which builds on the diversity of Atlantic Canada and ensures the full participation of women, youth, aboriginal people, visible minorities and people with disabilities.
It should be within our realm of opportunity to consider the importance of community involvement and the community control of economic decision-making. We should be building an economy based on environmentally sustainable economic principles. Nowhere other than in the Atlantic provinces have we seen the impact of not ensuring that our economic policies are environmentally sustainable.
We should be able to ensure the protection and the improvement of our social programs to support Atlantic Canadians in their times of difficulty between jobs and particularly now when we see that a major resource is simply not there to support the population as it did previously.
We need a new emphasis on co-operative development, an emphasis that places people and their communities ahead of corporate profit. We also need transportation systems that meet the needs of the regions so that products made within the region can effectively be moved to markets.
Atlantic regional development is not just about increasing incomes. Development is a process by which human capabilities and natural resources combine to fulfil social, cultural, political, psychological and material needs. This is a process in which increased self-reliance, independence of individuals, communities and the region are achieved by building on the strength that thrives on the interdependence of equals.
As someone who lived in Atlantic Canada for more than a decade, there are no more independent people in the country, wanting to work together for the benefit of all rather than work against each other so that only a few benefit.
Development can only be sustained if it strengthens the social fabric, building a consensus as to goals, values and means and focusing on increased productivity and the needs and potential of those in society, particularly the most disadvantaged. An integral component of real economic development strategy for
Atlantic Canada is the reduction of the inequity of incomes and the removal of the pain of poverty for so many of our citizens. It is clear from the writings of a wide range of economists that inequality of income is a major drain on economic growth.
These goals of building together will only be achieved if the process is from the bottom up, with people participating in the decisions that affect them. People in communities must recognize that they have a capacity and a responsibility to shape and direct the development process at all levels. That capacity and responsibility must be encouraged through the planning process and through the role that government plays.
The regional development policies of previous governments have always been controlled from the top down. Surely we believe that people in the community have the best interests of that community at heart. People who are rooted in a community have the most at stake in evaluating and encouraging sustainable development. It is critical that we use that resource, that understanding and that community commitment. We should support community economic development that gives communities a true sense of ownership and increases local control over the economy.
It has been very clear that allowing people to come in from outside, reap the profits and leave is a devastating strategy and one that has long term negative effects, not long term beneficial effects. As much as possible development should be owned and managed locally, be located within the community, provide work for local people, make use of local materials and serve community needs for products and services. The best types of economic development activities are those that maintain a community focus.
Let me make one more general comment with regard to this. If economic development is to work in Atlantic Canada it must pursue the principle of economic self-reliance. It is no longer possible in this country, if it ever was possible, to maintain industries and economic units that are no longer efficient. We need to pursue a principle of economic self-reliance, harnessing all of its resources to both determine and meet the needs of the people of Atlantic Canada. As I have said, that means the control of the resources and economic institutions must be much more firmly in the hands of Atlantic Canadians.
In order to ensure that community economic development objectives are met, one strategy would be to encourage the development of locally based community development organizations. They could represent all sectors of the community. Their function could be to oversee discussions, decisions and implementation of development projects.
This would ensure that the communities, in co-operation with the private and public sectors, would be instrumental in making decisions about the kind of development that would occur and would be able to ensure the community would benefit most from that development.
They could be coalitions of local, social, business, financial and labour organizations, as well as co-operatives and governments. They could perform the function of co-ordinating development within those various regions. They could be responsible for the allocation of whatever public funds might be available within those regions to ensure that those funds are used to the best possible advantage.
One very good example of how this could work is in Cape Breton. An organization called New Dawn Enterprises, which I have visited in the past, has assisted in developing a network of firms and facilities throughout Cape Breton. This development corporation holds assets of some $10 million and has become involved in a very wide range of activities from construction to real estate to care for the elderly. There are examples within Atlantic Canada we could learn from and utilize across the whole region.
Across Atlantic Canada there is a large, effective, efficient and responsive network of co-operatives we could also build on. Atlantic Canadians have built a co-operative movement which attests to their resilience and creativity in the face of adversity. Those co-operatives maintain jobs in the communities, provide services to the communities and provide local control to ensure that local needs are met. People have a stake in those enterprises and they often are more productive as a result.
It is necessary to ensure, at both the federal and provincial levels of government, that we remove any barriers to co-operative development and that we ensure and encourage the development of co-operatives across the region.
This is clearly an integral part of the development of Atlantic Canada. In the last decade, 1980 to 1989, small firms created 90 per cent of the new jobs in Atlantic Canada, while large firms saw reductions in employment capacities.
A report that was done by Enterprise Cape Breton found it was locally based operations which were the most successful. Projects that received $100,000 or less in the form of support had a success rate of 72 per cent, at an average cost of $23,000 per job, while those projects receiving $1 million or more had a failure rate of 71 per cent, with an average cost of $154,000 per job. The proof in Atlantic Canada is that it is small business that is going
to create jobs, and it is small business on which we should focus our activities.
The agencies that we have in operation in Atlantic Canada also need to be reconsidered. As I have pointed out they have not worked very well. Their support, in large sums of money, to large enterprises have not given benefit to the community as one would have wanted. However, support in small sums to small businesses have done so. We need to ensure that the Atlantic Canada Opportunities Agency really becomes an advocate for employment creation and economic development in the region and is not used, as it has been in that past, as a political slush fund. We need to reconsider and reassess the agencies that we use as arms of government in the development of Atlantic Canada.
I have talked about co-operatives but credit unions also have an important role in Atlantic Canada and we need to encourage them as well. I will give one example of a real success story to show how credit unions can really contribute to the economic development of the region.
In 1984, in Eagle River, Labrador, the Bank of Montreal closed its branch saying it was no longer a viable operation, which is a fairly familiar picture across Canada. With the aid of the Labrador Fishermen's Union Shrimp Company the community was able to establish its own credit union. In fact, it had the co-operation of the caisse populaire located in the neighbouring Quebec community. The credit union has been able to provide basic essential financial services to people in that area.
In the less than four years that this financial institution has existed it has provided more than $3 million in loans to local residents. It is a viable, profitable and locally owned enterprise, showing that credit unions can have a major role to play in the development of Atlantic Canada and across the country.
We should do what we can to support and nurture credit unions, especially those that are small and just beginning and need some support. There are many things that we can do. For example, governments could use credit unions much more than they do now as the depositories of funds or as their current accounts.
Much of Atlantic Canada is made up of single industry towns. Those are vulnerable communities, vulnerable economic units. Atlantic Canada is fortunate to have such resources in our communities but they must be managed by those who have the greatest stake in ensuring the long term viability of those resources in those communities, the people themselves.
Several resource based industries are in crisis and we should not tolerate that situation any longer. The most obvious of course is the fishery. Many of us today received representations indicating that a stock that had not been fished all that much in the past, turbot, is now under serious threat as a result of overfishing. It is important for Canada to exert its jurisdictional power to make sure that this resource does not go the way of the cod stocks which we all know so much about.
It is important for single industry towns, based on natural resources and non-renewable resources, to be much more effectively upgraded in the interest of the communities in which they operate.
I will not say any more about the fisheries. We all know what a disaster that has been. It is primarily a disaster because of federal policy mismanagement over the last few years, something we cannot do anything about now but something we do have to remember and treat as a lesson in the future.
The same sorts of concerns can be expressed about the forestry industry. In comparison to forestry industries in the rest of the world, a great proportion of forestry in Atlantic Canada is privately owned: New Brunswick, 49 per cent; Nova Scotia, about 70 per cent. This resource has not been used for the benefit of those living in Atlantic Canada but rather to benefit the corporations that control it and, which incidentally, pursue forestry practices that in their home countries they would not be able to pursue.
Therefore, we have to ensure that resource is also one for the benefit of the communities in question and for the benefit of Atlantic Canada. It must be developed in a way that is sustainable, to provide jobs and economic opportunities for Atlantic Canadians well into the future and ensure that young people from Atlantic Canada do not have to leave their homes in order to find economic opportunity.
In my last few moments I would like to make a quick reference to developments in two provinces and two resource based provinces which might be of use in considering how to develop Atlantic Canada. Let me first take the example of British Columbia and the arrangements that have been made there in order to develop the forestry industry.
We know that in the past there has been enormous tension between the forestry companies and environmentalists, between communities and environmentalists, the workers in the forestry industry and environmentalists. We know we have to resolve those differences.
What British Columbia did in a unique way was bring those different interests together and work with them to find a vision for the future of that region. Everyone made sacrifices and everyone gained. However, in the end there was a common vision adopted to which everyone could be committed and to which everyone could work. That is the clear focus. We have to change the way in which we consider economic development. We have to make sure we all work together to the best advantage of all.
I would certainly recommend that B.C. approach Atlantic Canadians and the federal-provincial governments, labour unions within the province, the business community, the communities themselves and environmentalists within Atlantic Canada. That should be pursued as a goal for economic opportunity development in the region.