Mr. Speaker, many of the constituents in my riding of Parry Sound-Muskoka are directly affected by recent changes to FEDNOR programming. As a new initiative, this will have a positive impact on their businesses.
I wholeheartedly support the government's renewed commitment to regional economic development in northern Ontario. The budget for this program is being increased to $60 million over three years. The government is assuring that this money is being wisely invested on programs and services that work to increase the economic and employment potential in northern Ontario.
In his response to my initial question, the Parliamentary Secretary to the Minister of Industry referenced an approximate fivefold leveraging of money from Canada's financial institutions to help get capital into the hands of northern Ontario's small business men and women.
This partnering is an excellent example of how government and the private sector can work together for the benefit of small businesses. This is very good news for northern Ontario. Improved access to capital constantly dominates small business' wish list. It is one very important part of the recently announced FEDNOR initiative and is an improvement that my colleagues and I in northern Ontario worked very hard to see implemented.
The government has also worked persistently to get more money into the hands of Canada's small business men and women so they in turn can invest in their businesses, expand their services and most importantly, hire fellow Canadians.
The government's renewed FEDNOR initiative emphasizes working with private and public sector partners to facilitate in five specific areas: access to capital which I mentioned; enhanced business competitiveness; community economic development; networking, and providing a stronger regional voice for the north.
This emphasis on developing specific tools for northern Ontario businesses is of critical importance in the communities in my riding and in communities across northern Ontario. I strongly support the partnership approach in the new initiative which creates
an environment in which small businesses can create wealth and jobs in northern Ontario.
It is also significant to note that not only are the programs being improved but service delivery is being made more efficient. FEDNOR's operating expenditures will be reduced by 40 per cent.
The existing Community Futures development corporation will become a major delivery component of this program, making highly effective use of resources that are already in place in northern Ontario. These organizations will be provided new capital and given the tools to attract additional private sector investment.
Also, the new FEDNOR program will be providing up to $4 million in direct investment in tourism, another very important component of the economy in my riding of Parry Sound-Muskoka. This will be done through co-operative marketing initiatives and through the development of specialty tourism packages and training.
The government cares about northern Ontario. It understands its role to create an environment in which the small business community of northern Ontario can create jobs. The changes to FEDNOR demonstrate this Liberal government's commitment to a jobs and growth agenda.