Madam Speaker, it is a great pleasure for me to have the opportunity to speak at second reading on Bill C-5, an act to establish the Canadian Tourism Commission.
The bill before the House builds on success and will ensure the continued high performance of one of the government's most successful initiatives. Bill C-5, an act to make the Canadian Tourism Commission a crown corporation, is a natural and a necessary evolution of the tourism commission.
In 1995 when the commission was first established, the government had very high hopes for it. Those hopes have not only been met, they have been exceeded. On every measure the commission has performed exceptionally well. It is a superb example of the benefits that can result when there is a genuine partnership between government and the private sector.
The commission has developed and sustained effective co-operation among federal, provincial, territorial and business partners. It shows how well national and regional policy objectives can be harmonized with business goals to the benefit of all participants.
Bill C-5 confirms the government's willingness and desire to work in partnership with different sectors of Canadian society and the economy as well. Our government sees the creation of a harmonious co-operative relationship among these partners as an excellent way for us to work together as a nation to address social, cultural and economic issues.
Every member of the House can attest to the fact that every region of our country benefits from tourism. Let me say it has a pan-Canadian flavour and has immediate impact on most of the economies in terms of financial gain from coast to coast to coast, to the northern part of our country and among Canada's first nations people as well.
As well as producing direct local and regional economic benefits, tourism is important to the national economy as a whole. In 1998 it generated more than $19 billion to Canada's GDP. It contributes significantly to employment in parts of the country where other jobs are often scarce. It has come to generate both employment and spin-off economic benefits for first nations people.
Since the industry consists mainly of small and medium size businesses, the legislation will further the government's commitment to encourage the small business sector, entrepreneurial development and of course, job creation. Tourism by and large is an environmentally friendly industry and operates in a manner that is consistent with the government's commitment to a clean and safe environment. An industry that provides so much on so many fronts deserves the attention and support of this parliament.
Today we are at another juncture in the evolution of the course that was set by the Prime Minister and the cabinet in 1995 when the tourism commission was first established. Its current status as a special operating agency of the Department of Industry imposes legal and administrative restrictions which now prevent it from achieving its maximum potential and effectiveness. Establishing the commission as a special operating agency was a necessary first step.
As the country's tourism industry has matured, so has the commission. The time has come for parliament to create a corporation with the authority and the tools at its disposal to be fully responsive to the needs of this diverse growing and dynamic sector of our economy.
Over the past few years it has become apparent that the commission should function as a fully integrated business entity with the capacity to make its own decisions, set its own business priorities and move more quickly to implement them. Making the commission a crown corporation will give it the legal, financial, managerial, administrative and policy-making flexibility it needs to work with its partners more adequately and more efficiently.
Until the creation of the Canadian Tourism Commission, Canadian efforts to market Canada as a tourist destination were fragmented among many players: the federal government, provincial and territorial governments, and the tourism industry itself.
Federal activities were divided among the tourism branch of the Department of Industry, the three regional agencies of Western Economic Diversification, Canada Economic Development for the Regions of Quebec and the Atlantic Canada Opportunities Agency, and the Department of Foreign Affairs and International Trade.
At the request of the Prime Minister in 1994, the Hon. Judd Buchanan studied the industry and its administrative structure. Mr. Buchanan recommended the creation of the commission on which tourism industry leaders as well as senior officials from the federal, provincial and territorial governments would be represented.
Established by order in council, the CTC board was given broad authority to plan, direct, manage and implement programs to generate and promote tourism.
The commission's first business plan recognized the absolute necessity of bringing together the very wide range of the organizations, groups and individuals involved in tourism. The key to success, which has been achieved, was to facilitate partnering and co-ordination among the various stakeholders.
The co-ordination of the various interests was brought about by ensuring that all stakeholders were represented on the board. The CTC then set up a structure of partnering committees. These committees are led by the private sector and are responsible for individual program areas.
There are committees for the Canadian market, the U.S. leisure and travel market, business travel, European, Asia-Pacific and Latin American markets. There is also a committee on products and on research.
The commission's marketing programs include the development and maintenance of data on markets of opportunity, advertising, public relations, promotional projects, media relations, travel trade development and co-operative buy-in initiatives.
In addition, the CTC has a number of industry competitiveness programs. These include industry assessment on the structure and performance of the tourism industry and its subsectors.
As well, the CTC offers program development services such as how-to manuals, seminars, consultations and advice, study and interpretation of developments in the domestic and international markets. Analysis of this information is provided to members of the industry who also receive information on industry activity, revenues, capacity and tourism consumption on specific products and services.
Canadians across the country and members in the House may be asking themselves the question as to why the CTC should be turned into a crown corporation.
I point out to the member, and rightly so because he asked the question, that the commission's work is so closely tied into the private sector that it is necessary for it to be able to operate in a more businesslike way, I emphasize, and that it have the administrative flexibility to function more effectively as a partner.
Its unique public-private collaboration has delivered valuable tourism marketing and information sharing initiatives that have helped rejuvenate the tourism sector and indeed Canada's appeal as a tourism destination.
To respond more adequately to the needs of its private sector partners, the commission now needs the independence of an organization that can operate at arm's length from the government.
Its new structure as a crown corporation will improve the Canadian Tourism Commission's ability to work with the provinces and the tourism ministry and allow it to attract professional staff from the industry.
While an arm's length relationship would be created, members of the House should understand that oversight and the ultimate accountability will rest with the government, as it does with any crown corporation.
Under the bill, the Minister of Industry would have the power of direction and would retain policy responsibility for tourism. Also, the minister would be able to exercise an appropriate degree of influence over the corporation through the annual appropriations process.
In this context, the bill attempts to balance two factors. On the one hand, the agency needs to be, and seen to be, at arm's length from the government. On the other hand, the government's right to insist on meaningful reporting and accountability for the current expenditure of more than $65 million in federal appropriation.
Members should be aware that the proposed legislation ensures, and I emphasize ensures, that the mandate of the new corporation continues to be explicitly focused on research and marketing. The bill also makes it very clear that the corporation would have no power to engage in any tourism development activities.
The prohibition on getting involved in tourism development activities ensures that the corporation does not overstep the jurisdiction of its provincial and territorial government partners.
This prohibition also keeps in the public sector, where it properly belongs, the use of government authority for such things as investment incentives and the managing of infrastructure projects.
The commission's overall operations will continue to be funded through a mix of federal appropriations and spending by other partners. The commission will explore revenue generating opportunities and will receive increased funds year after year from its partners.
As I mentioned earlier, the government currently provides $65 million in appropriations. Contributions from its partners in dollars and services were valued at $85 million in 1998-99. This is another illustration of the success of the commission because the government's original goal over the medium term was to have the commission partners contribute $50 million per year to sustain a joint marketing budget of approximately $100 million.
I want the House to know that the bill is a result of extensive consultation with all the participants, and that includes the staff and unions. With the changeover to crown corporation status, the employees would come under the Canada Labour Code and the corporation would administer its own pension plan.
All of the appropriate measures will be taken to to ensure the transfer the cumulative public service pension contributions by employees who will not be affected negatively in their transfer to the crown corporation.
I also want to assure hon. members that the corporation will be subject to the usual federal statutes such as the Official Languages Act, the Access to Information Act and the Privacy Act.
I should point out that although we are proposing the creation of a new crown corporation, we are not creating a new and large bureaucracy. In fact, the current staff complement of approximately 140 would not change.
Let me take this opportunity to point out the professional and highly dedicated staff that have contributed so significantly to the success of the work of the commission over the last five years.
Since the commission was established, Canada has steadily moved up in the global rankings as a tourism destination, and now ranks eight. The benefits of this increased number of visitors have affected every region of our country, each of which has experienced significant revenue growth over the last five years. In Canada, tourism is definitely considered big business nowadays. It injected more than $47 billion into the economy last year. That is up 7% from 1997.
The industry is also a great job generator. From 1994 to 1998, direct employment in this industry has grown faster than the national average. Some 44,000 direct jobs have been created and the employment of more than 500,000 persons is linked to this specific sector. Forecasts for job growth in this sector are very impressive. Between 120,000 and 130,000 new jobs are expected as a result of tourism between now and the year 2005.
The Canadian Tourism Commission is a success story in every respect. Its current evolution to a crown corporation will strengthen it. If the international tourism industry continues to grow at current rates, Canada's goal to grow with it is very realistic.
Tourism is an industry on the move, both in Canada and around the world. More people than ever before are travelling both domestically and abroad, from affluent baby boomers in North America and Europe to the growing middle classes in developing regions like southeast Asia and Latin America, are spending more money on leisure activities.
In fact, tourism is one of the world's fastest growing industries, accounting for $444 billion U.S. internationally in annual revenues. This figure is expected to grow at an annual rate of 7% over the next five years.
If Canada achieves just a 1% increase in the share of international arrivals, it would mean: 6 million more visitors to Canada; $5 billion more in revenues; and 158,000 new jobs.
Our experience with the commission provides proof that by striking the right public and private balance, government and industry can work together to improve the performance of a sector of our economy. The legislation will allow the commission to really take the reins and move forward with its leadership in Canada's tourism sector.
As members can see, we have a winner on our hands. The bill before us is designed to capitalize on this success and ensure an even greater degree of success of the Canadian Tourism Commission over the long term.
I therefore urge all members of the House to give their enthusiastic support to the legislation and help make Canada a destination of first choice for all travellers. Let us make Canada not only the place to be but the place to visit.