Debates of Oct. 6th, 1998

Comprehensive Nuclear Test-Ban Treaty Implementation Act

[Some hon. members]

Nay.

[The Deputy Chairman]

In my opinion the nays have it.

[An hon. member]

On division.

(Amendment negatived)

(Clauses 24 to 26 agreed to)

(On clause 27)

[Daniel Turp, Bloc, Beauharnois—Salaberry, QC]

Mr. Chairman, I seek your guidance to move an amendment. This is a new amendment, a new clause 27.1.

Should I move this amendment now?

[The Deputy Chairman]

No. It must be done after clause 29.

(Clauses 27 to 29 agreed to)

(On new clause)

[Daniel Turp, Bloc, Beauharnois—Salaberry, QC]

Mr. Chairman, again for the sake of transparency, of involving parliament in the implementation of a treaty such as this one, that a new clause 27.1 be added.

Accordingly, I move:

That Bill C-52 be amended by adding after line 37 on page 12 the following new clause:

Annual Report “27.1 (1) The person designated as the National Authority shall prepare and transmit to the Minister of Foreign Affairs an annual report with respect to the implementation of this Act. (2) The Minister of Foreign Affairs shall cause a copy of the report to be laid before the House of Commons on any of the first fifteen days on which that House is sitting after the Minister receives the report.”

This clause provides that the minister will table in parliament an annual report on the implementation of the treaty. This is an amendment that we also want to see debated in committee of the whole.

[The Deputy Chairman]

The additional clause is in order.

[Lloyd Axworthy, Liberal, Minister of Foreign Affairs]

Mr. Speaker, we can accept the amendment to the bill.

[Daniel Turp, Bloc, Beauharnois—Salaberry, QC]

Mr. Chairman, I have a very technical point. The word “étrangères” is missing in the French version of clause (2), which should read “Le ministre des Affaires étrangères fait déposer un exemplaire”. There is a small error here.

I am very pleased that the minister gives his agreement. By doing so, he would only confirm that he accepts, as Australia has done, because in its Comprehensive Nuclear Test-Ban Treaty Implementation Act, the Australian parliament agreed to a totally similar provision, and consequently, that parliament will examine the report that the person designated as the national authority will prepare and transmit to the minister.

This is a step in the right direction, but I must tell the minister that it will not be enough, because we will constantly revert to this whole issue. I would like to have the minister's opinion on this. I think it would be useful for our foreign affairs committee to debate this practice.

I would like to ask the Minister of Foreign Affairs if he would agree to ask, as he has for other issues, the committee to examine the practice of the signing of treaties, to bring it in line it with the practice in other Commonwealth countries, which is a much more democratic practice.

[Lloyd Axworthy, Liberal, Winnipeg South Centre, MB]

Mr. Speaker, I am very grateful to the hon. member for having added the word “étrangère” to the bill. I think having a minister designated for affairs in today's climate would not be such a good idea. I certainly think that is an appropriate inclusion in the bill.

As to the other matter, the committee itself is master or mistress of its own affairs. If it wants to discuss the possibility of looking into this matter we will co-operate. I would certainly welcome any will of the committee that would be expressed.

(Amendment agreed to)

[The Deputy Chairman]

Does the new clause, as amended, carry?

[Some hon. members]

Agreed.

(New clause, as amended, agreed to)

(Schedule agreed to)

(Clause 1 agreed to)

(Title agreed to)

(Bill reported, concurred in and, by unanimous consent, read the third time and passed)

The House resumed from October 2 consideration of the motion that Bill C-53, an act to increase the availability of financing for the establishment, expansion, modernization and improvement of small businesses, be read the second time and referred to a committee; and of the motion that the question be now put.

Canada Small Business Financing Act

[Jean Augustine, Liberal, Etobicoke—Lakeshore, ON]

Mr. Speaker, I am delighted to speak to Bill C-53, an act to increase the availability of financing for the establishment, expansion, modernization and improvement of small businesses.

The small business financing act is an extension of the Small Business Loans Act which was passed in 1961. It builds on the government's commitment to provide small businesses with better access to financing by guaranteeing loans made by lenders to small and medium size businesses across Canada. Small businesses play an important role in Canada's economy. Canada has more than 2.5 million small businesses. In 1996-97 small businesses created 81% of new jobs in the economy.

In my riding of Etobicoke—Lakeshore there are over 3,600 small and medium size enterprises. They are an integral part of the economic infrastructure of Etobicoke—Lakeshore. The operation of these businesses cuts across the manufacturing and service sectors of the economy. They are the main engines of employment in my riding and elsewhere in Canada. Maintaining a strong and vibrant economy is vital to the economic success of our country.

As parliamentarians we must support measures that would facilitate economic growth in Canada. I support the small business financing act because I know that providing opportunities to companies through financing or technology will give the Canadian economy the energy it needs to grow. This sector of the Canadian economy has proven to benefit many Canadians. It is necessary to take the steps that would enable it to become healthier, to expand and to become more profitable.

Bill C-53 will ensure that small businesses will continue to be of benefit to all communities across Canada. Through successive prebudget consultations and town hall meetings with small business owners on job strategy and economic growth I heard from my constituents about the difficulties faced by small businesses in obtaining financing for start-up capital from banks and other lending institutions. The small business financing act, as the Small Business Loans Act, will continue to address this problem.

Since 1961 the Small Business Loans Act has provided over $22 billion worth of debt financing through lending institutions. As many as 30,000 lending firms serve clients that are small and young businesses with an average loan size of $68,000.

It is not an understatement to say that small companies need financial assistance from the government. Despite the availability of capital and increases in lending, access to credit continues to be identified by entrepreneurs as a major obstacle to the growth of small businesses. I am pleased to see that the government will continue its commitment to providing finances to small and medium size business communities through the small business financing act.

In times of economic downturn we know small businesses are the most vulnerable. In my riding during the recession of the late 1980s and early 1990s many small businesses folded as a result of the cyclical downturn in the economy. Many companies did not have the financial resources to wait or to ride out the recession.

The Canada small business financing act is about creating stability for small and medium size businesses. It will put many small and medium size businesses on a sound, stable footing to better cope and manage under financial stress and, in particular, during times of economic downturn.

This bill was put before the House after extensive consultations with public and private stakeholders. The Minister of Industry has also taken into account the recommendations of the Standing Committee on Public Accounts and the auditor general.

Under the act the small business financing program will extend loans to lenders for terms of up to 10 years. Lenders must pay a one time 2% fee in addition to an annual registration fee of 1.25%.

There are so many things to say about the benefits that this will ensure to my constituents of Etobicoke—Lakeshore. Suffice it to say that micro and very small businesses will benefit from Bill C-53.

In examining the issue of cost recovery and the key areas of the bill I call on my colleagues on all sides of the House to give support to Bill C-53. It is a very important bill and the issues it covers would do much for the businesses in our various and varying communities.

In closing, Canada's small business loans program is one of the best programs of all the OECD countries. It is a very crucial segment of our economy and Canadians have come to depend on it for their economic livelihood. I encourage all of my colleagues, keeping in mind the micro and small businesses in the various and varying constituencies, to give support to the bill.

[Gordon Earle, NDP, Halifax West, NS]

Mr. Speaker, I commend the member who just spoke in support of small business. It is very important that we all support small business.

Today we see what is happening with the very large corporations and institutions that are laying off people. In my riding of Halifax West the Volvo assembly plant is being shut down, putting about 250 people out of work. Volvo is moving to places like Mexico where it can profit from cheaper labour.

Many of the people faced with joblessness are going to have to resort to their own ingenuity to operate small businesses and to become self-employed to earn a living. Therefore, everything that can be done to assist small business is important.

When we see the large banks in our society trying to become even larger, we ask ourselves what the impact will be on small business people.

We are in support of the measures being taken to assist small business and on behalf of my constituents I will support the legislation. I commend the member opposite for her remarks.

[Jean Augustine, Liberal, Etobicoke—Lakeshore, ON]

Mr. Speaker, I always appreciate support when it is given from the other side of the floor and, therefore, do not have to shout recall.

The Canada small business financing act will do a number of things that are very important. It will guarantee lending on April 1, 1999 and continue to facilitate asset based debt financing to small and medium companies with annual sales of up to $5 million. Those are the small businesses in his riding and in my riding.

The government will continue to share the risks of loans to businesses by paying 85% of the loss incurred by lenders. These are measures that will be appreciated.

The government will pay claims on 90% of the first $250,000 of loans in a lender's account, 50% on the next $250,000 and 10% on the remaining loans.

These measures will be beneficial to those medium size enterprises.

The percentage of the cost of eligible capital assets accepted for financing would be 90%. This again will include so many of our businesses.

Interest ceilings remain at 3% above prime lending rates for variable rate loans or 3% above residential mortgage rates for fixed rate loans. These measures will benefit all of our constituents. Therefore it is essential that we support this bill and give our small and medium size businesses a break.

[Myron Thompson, Reform, Wild Rose, AB]

Mr. Speaker, I join the support for small business. We know that it is the backbone of the nation. I am always pleased to speak up for small business.

But there is one thing that bothers me about this tax and grab government. Small businesses all across this country are saying loud and clear that the guys in Ottawa have to get off their backs. More than that, they are saying that the government needs to get out of their pockets because they are being killed by taxes.

We are talking about lending money and getting into debt to support small business, but we never hear anything coming from that side of the House about how we need to make it more feasible for these people to operate by lowering the taxes which are killing small businesses and jobs.

One particular business in my riding is run by a man and his wife. They have said to me “If we could only get the taxes cut back to some degree we could hire some additional help, rather than both of us having to be here from nine to seven every day. We work hard. We have to in order to pay all the taxes that this government keeps grabbing”.

Could the member suggest to small business that it would be a good idea to pursue decreasing taxes? That would help them even more than lending them more money.

[Jean Augustine, Liberal, Etobicoke—Lakeshore, ON]

Mr. Speaker, I thank the member for his question because I know that he is concerned about the small businesses in his riding.

Sometimes it is very difficult for members opposite to take good news and to carry the good news back to where it should be carried. I want to tell the member to look on the side of the positive aspects of this bill.

The issue of taxes, of course, is a concern to all small businesses. But when we look at our position in the G-7, our small businesses and business people, in comparison to other places in the world, are definitely not in last place.

[Val Meredith, Reform, South Surrey—White Rock—Langley, BC]

Mr. Speaker, I would ask the hon. member for Etobicoke—Lakeshore if we can take back the good news that her government will give back to small businesses the EI overcharge it is taking from them.

Can we take that good news back to our constituents?

[Jean Augustine, Liberal, Etobicoke—Lakeshore, ON]

Mr. Speaker, we are debating the topic of small business in Bill C-53 and we are asking if there is support for the bill. The member has introduced EI. Of course, any good news is good news that we will take forward.

When that discussion does come up, the good news will certainly be hers to take forward.

[The Acting Speaker (Mr. McClelland)]

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker (Mr. McClelland)]

Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[Some hon. members]

No.