Mr. Speaker, I will be sharing my time with the member for Scarborough East.
It is a pleasure to rise in the House today to debate this important matter, and I do so on behalf of the residents of Waterloo—Wellington.
I note at the outset that the proposed Canada Small Business Financing Act builds on the proven success of the previous loan guarantee program which has a 37 year history of meeting the needs of small business. It introduces features that will continue to guarantee stable access to financing for one of Canada's most dynamic growth sectors.
I also note at the outset that the Standing Committee on Industry did an excellent job and excellent work on Bill C-53. Committee members have been conscientious and helpful in improving the legislation and the regulations. I think that is important to note. They understood the needs of stakeholders and the bill is stronger for their scrutiny and their attention.
We are all aware that the legislative and regulatory process is evolving. The bill is one of the first to have the proposed legislation and regulations before a committee at the same time. That too is important to note. It is worth noting that we have all learned some important lessons from this process. We still need to work on improving that process to meet the expectations of parliament. In particular, we have to make sure we consult affected stakeholders about regulatory changes well before a bill is considered in committee. Members of the Standing Committee on Industry were sensitive to this issue and we need to thank them for their assistance in this matter.
This raises a second point about regulations under the new process. It is an issue that came up in committee and it is one to which I would like to draw the attention of members of the House. This legislative initiative reflects a new way of drafting legislation. The details of the administration of the program are now to be found in the regulations. Members have expressed some concerns about how this may impact on the scrutiny of the program. Nevertheless the government has responded to their concerns by agreeing to table all regulations.
The amendments adopted by the committee require that every proposed regulation be laid before both houses of parliament before it is made. They also require that the regulations be referred to the appropriate committee of each house.
The intent of these amendments is to impose an obligation on the government to notify parliament of proposed regulations and ensure these are brought to the attention of the appropriate committees. If they choose to do so, committees would then have an opportunity to schedule time to study the proposed regulations and to provide comments.
Although this notice requirement would not delay the making and coming into force of the regulations in accordance with the established regulatory process, where the proposed regulations are prepublished in the Canada Gazette , the committee's comments as well as those of other interested stakeholders made during the prepublication period would be taken into consideration.
I will now turn to another example of this government's openness and willingness to consult stakeholders. I refer to the bill's provisions for pilot projects in capital leasing and the voluntary sector, and the greater involvement of parliamentary committees.
I reiterate what the minister said and the promise that he made when introducing the bill. He said then that he intended to call on the advice of hon. members through the Standing Committee on Industry to help in designing the pilot projects.
Capital leasing is a rapidly growing form of financing for small business, but our consultations indicated that the leasing industry generally does not approve leasing for firms under two years old and which require financing of less than $100,000. Similarly, our consultations indicated that a number of voluntary groups would find the loan guarantee program useful, given that these groups are also an integral part of the economy and the labour market.
The pilot projects would determine the feasibility of extending the program to the capital leasing market and the voluntary groups. I believe that the input of committee members will be most important in devising sound pilot projects.
This is above and beyond the notification of the committee in respect of any proposed regulations for bringing in the pilots provided for in subparagraph 13(5). In essence we hope to benefit from the committee's expertise at both stages, program design and examining regulations.
I have just mentioned that this bill embodies provisions for greater accountability to parliament in regulatory matters. In calling for greater committee involvement in designing the pilots, I hope that hon. members will also see this correctly as a response to members' desires to be involved earlier in the policy development process.
I would like to conclude with a brief overview of the main strengths of the proposed Canada small business financing act. Most significantly, this bill meets the needs of small business, the entrepreneurs who are the driving spirit behind nearly 80% of new jobs in this country. They are the young small firms recognized and targeted by the bill's loan guarantee provisions. Bill C-53 offers them continuing stable access to financing even as the financial services industry is restructuring, access that a large majority would not have without this program.
The bill offers taxpayers the reassurance that the loan guarantee program will continue to move toward cost recovery. It is delivered by private sector professionals, not bureaucrats. It uses private sector money, not taxpayers' dollars.
Under the revised program, parliament will release more accurate information and performance measurements by which to judge the program's effectiveness. The new five-year review provision gives parliament a closer and more active role in scrutinizing the program. That is very important.
Canada's 2.5 million small businesses and self-employed entrepreneurs can flourish and grow in an encouraging environment. That environment is exactly what Bill C-53 will continue to provide, and rightfully so.
Our women and men in small business need to see that the federal government values and encourages their willingness to take risks. It is our small businesses after all that devise new products and services, and create jobs by their hard work. This bill recognizes and supports their contribution to Canada's prosperity. Their financing needs are exactly what this bill recognizes.
The bill before the House is a product of informed review by financial and audit experts, of widespread consultations with borrowers and lenders, and of exhaustive examination by members of this House. It meets the demonstrated requirements of small business people, large and small lenders, and taxpayers.
On all accounts it is a very sensible and integrated set of improvements to an already strong and creative program. Therefore I would urge all members in this House to support the passage of Bill C-53, the Canada small business financing act. It is an important piece of legislation and is deserving of our support.