Mr. Speaker, I cannot blame my colleague from New Brunswick for being concerned, but have no fear the Tories are here.
It is a pleasure for me to rise before the House in response to Motion No. 224, calling upon the government to dissolve all regional development agencies.
For years, successive federal governments grappled with the problem of regional economic disparity. In 1969 the Department of Regional Economic Expansion was created in an attempt to address the situation.
Later in 1982 the department evolved into the Department of Regional Industrial Expansion. Both these endeavours failed to adequately address the specific problems facing the many diverse regions of the country.
One of the major criticisms of these two departments derives from its often poor focus on a centrally devised, one size fits all answer to regional problems.
Canadians wanted a greater say in developing their own programs to respond to their own economic problems. They were no longer willing to accept Ottawa's often ill advised solutions being thrust upon them.
As a result, in 1987 the Progressive Conservative government disbanded DRIE and announced a new direction for regional economic development policy in Canada. New agencies were created for the western and Atlantic provinces, moving much of the government's regional development decision making out of Ottawa and closer to the people served. Western economic diversification was created to help expand and develop the business face of the economy in the western provinces.
The Atlantic Canada Opportunities Agency was given a legislative mandate to increase opportunity for economic development in Atlantic Canada and to enhance the growth of earned income and employment opportunities in that region.
ACOA has enabled many small and medium size businesses in Atlantic Canada to create jobs that otherwise would not exist. Its involvement in the economy of the region has resulted in an important net positive contribution.
Since its inception ACOA has had a total employment impact of 82,000 jobs. ACOA's investment has created $233 million annually in new export sales. Each dollar invested in the business by ACOA, its provincial government and private sector partners results in $5 of benefit to the Atlantic region.
Similarly the return to the government in taxes, savings and employment insurance payments equals $3 for every dollar invested by the government. ACOA has a proven performance record in achieving real results in our Atlantic economy.
Dissolving ACOA would have a devastating effect on most Atlantic Canadians. Unlike the western region whose economy presently leads the nation, Atlantic Canada continues to struggle particularly with the serious downturn in the fishery.
There are presently over 25,000 fishers and fish plant workers in Atlantic Canada who were forced from the fishery by the downturn in the fishery and who are subsequently awaiting word from the government on a new TAGS program.
The Progressive Conservative Party was the first to champion the cause of tax relief for ordinary Canadians. However, the cancellation of this regional development agency would provide little or no tax relief for these 25,000 individuals.
Unemployment figures are still too high in Atlantic Canada. The best way to confront the serious unemployment situation is to encourage Canadians young and old to start their own business.
Figures show that 94% of all new jobs in the country are created by small and medium size enterprises. We need ACOA to help people start and to expand their own businesses. It has the ability to provide individuals with much needed capital along with expertise on how to begin new ventures.
Most chartered banks in Atlantic Canada are quite reluctant to support small business ventures unless they are willing to provide about 30% to 50% of their own equity to the project. Unfortunately most aspiring entrepreneurs are incapable of meeting this demand. Therefore, without ACOA having taken a chance on individual projects, many would not have got off the ground.
Atlantic Canada need ACOA to reduce the regional economic disparity that exists among provinces. Therefore we cannot support the motion.