The member opposite says that maybe they won't make the loan. If the taxpayer is paying for the default of that loan, maybe the person should not be getting a loan. Maybe small businesses that are too risky should either put up more collateral or be a little more responsible rather than putting the responsibility on to the Canadian taxpayer.
I do not know about the members opposite, whether they ever communicate with their taxpayers, the people on the street who vote for them. When I get letters from my constituents, from taxpayers, they are concerned that the priorities of government are skewed. That government is responsible for providing essential services to the people of Canada and by not putting its priority on funding special interests or businesses is a mistake.
We feel it is prudent for the government to be protecting the taxpayer by making sure that when it is covering loans or putting its neck out and supporting loans that may be defaulted there is a balance in that of what the taxpayer is responsible for and what the lender is responsible for.
The purpose of Motion No. 6 is to make sure that balance is kept, that the taxpayers are responsible for one half and that the lender is responsible for the other half. What we are talking about are high risk loans that are being loaned because traditional sources and vehicles of loans for small businesses are not available to them. We are talking about a very small percentage of small businesses that may or may not succeed.
Members across seem to feel it is the responsibility of the government and the taxpayers to make sure that everybody who wants to start a business is given money to do so. It does not work that way.
Not every child in this country has an education or has the available means for a post-graduate education. They have to earn that right. They have to go to school and get the marks. They have to show they are diligent in the requirements to go on to university or college. The same should apply to the small business community, to somebody who decides that he or she wants to be in business. There has to be an onus put on that individual to make sure that business has a market and is in a community that can support it.
When an individual asks for financing, either from a bank or a government protected bank, there should be minimum risk. The banks must know the business has the ability to survive.
Motion No. 6 states the lender would assume 50% of that liability and the taxpayer would assume 50% of that liability. It would put the onus on the small business to show the lender and the Canadian taxpayer that it has done everything possible to make sure the business is viable and will go ahead. I suggest the number of loans written off would probably decrease.
My understanding now is the default rate is 10 times higher on these loans guaranteed by the federal government. I suggest that 10 times higher is perhaps too much to put on the Canadian taxpayer. I think they would feel the priority of their money should be in things like health care and education, the things they feel are far more important than perhaps taking 85% on the default of a loan.
I think Motion No. 6 is reasonable and logical. I also believe it would have the support of the people who pay the bill when these loans are defaulted, Canadian taxpayers.
Motion No. 11 is self-explanatory when it states that the auditor should not have to give a 21 day notice. They should be able to do what Revenue Canada does, phone up and say they will be there in three days to go through the books. There is no reason why the same degree of short notice that Revenue Canada can avail on should not be applied to this bill as well. I hope everybody will support these motions.