Mr. Speaker, when it comes to an issue like the microbreweries, it is sometimes difficult for the Quebecers listening to us to understand how an industry can ask a government for tax advantages.
If I may simplify things a bit for the benefit of our audience in Quebec, one can say that of course, where globalization is concerned, and the multinationals that some major breweries are part of, the world's governments are obliged to give certain advantages to certain types of industries in order to attract them. This was the case with the microbreweries. Certain countries, including the U.S., have made it possible for their microbreweries to benefit from a reduction in their excise tax. In the case of concern to us, this means 26 cents per case of beer. This is enough to make a difference between a competitive industry and a non-competitive one.
It is never easy, of course. People wonder why certain industries and businesses ask for tax reductions. In this case, however, it is necessary because their competitors outside Canada enjoy some quite considerable tax advantages. This is a current issue.
In fact, a case in point is the softwood lumber issue, where the Americans are demanding countervailing duties of $29. This places a whole sector of industry in a terrible situation. As can be seen from that industry, the results are job losses, plant closures, some very difficult situations. Once again, the federal government has done nothing, not one thing.
It is now taking the same approach with respect to the microbreweries. Despite the industry's demands because of the competition from foreign microbrewers, because of the lobbying by the multinationals and the big Canadian breweries, Labatt and the like, and because of the lobbying by Canada's major breweries of a committee chaired by an MP with connections, among others, with members of the Labatt board, we have seen the government refuse to include beer in a bill which was precisely intended to re-examine the entire excise tax situation.
The government, the Liberal majority, did not heed the call of microbreweries and decided to simply remove from this bill anything that could have been beneficial to the microbrewery industry across Canada. Of course, microbrewers will pay the price but, again, this is totally in line with the Liberal government's overall policy. It is much more responsive to large multinationals than it is to small private businesses, which also employ people across Canada.
As my colleagues explained to the House, many microbreweries across the country had to shut down in the last five years. If the government persists in not helping them be more competitive and not allowing them to benefit from the same excise tax rate as microbreweries outside Canada, we will see more and more of these businesses close their doors.
However, the federal Liberal government is true to itself. It decided not to support private businesses. It is sad for Quebecers who are watching us, those who are retired and who were lucky enough to have a job, good employment income and good pension funds. This Liberal government has no intention of helping industries that are going through tough times. It did not do it for the softwood lumber industry. It did not do it for the airline industry. As transport critic, I know that businesses were left to die and that no ongoing support was provided to the airline industry. There is no such support for the softwood lumber industry, and there will not be any for microbreweries either. That is what this bill is giving us.
What Quebecers find hard to swallow is that they see the federal government swimming in surpluses, yet it does not transfer more money for health and education. What is it doing with its money? What is the Liberal government doing with its money?
The answer is simple, it is trying to build an international reputation. The Prime Minister appointed a Deputy Prime Minister, a right-hand man, so that he can travel around the world, make all kinds of nice announcements, give nice speeches, and grant funds in various countries. This is fine. The only problem is that we in Canada are experiencing serious problems, and the Liberal government is refusing to deal with them.
They talk, they discuss, they strike committees, they allow industry representatives to come before committee to explain what kinds of problems they are having and the solutions they would like to see, as the microbreweries did. In the end though, there are no solutions. The federal government does not intend to help any industry. It is letting free market handle things.
What will happen? There will be more microbrewery closings. Microbreweries are complaining about competition and unfair competition from foreign companies that do not have to pay the excise tax that Canadian microbreweries have to pay. Once again, the government has turned a deaf ear to them. Lobbyists for the big breweries, which would like to see the microbreweries go belly up, have been very busy. It is always the same old story. Labatt and the other big breweries in Canada are trying to get a stranglehold on the market. Why? To provide dividends to their shareholders every three months. This is the reality.
In the meantime, the employees who are hard at work in the microbreweries are watching their industry deteriorate, and they live in constant fear of losing their jobs, while the big breweries are paying out dividends to their shareholders. This is the harsh reality, but that is the Liberal government's philosophy.
It is letting the free market and, ultimately, multinationals seize control of the airline industry, breweries and the lumber industry. This is what is going to happen. This country will be governed by a few companies. It is probably much more easier for the Prime Minister, the Minister of Finance and the Minister of Industry to deal with only two or three businessmen who make huge contributions to the election fund of the Liberal Party. This way they will solve all the problems. Finally, when everyone is gone, this is what will happen.
However, this is not the way Quebec developed. It developed through small and medium size businesses, which allowed Quebecers to become one of the most prosperous people in the world. The people of Quebec relied on an industry of primary and secondary processing, a primary industry that developed thanks to small and medium size businesses. This is the secret behind Quebec's success.
Once again, the federal government is preventing small and medium size businesses, microbreweries, in Quebec as well as elsewhere in Canada, from continuing to exist. This is exactly what it is doing.
When a committee reviewing the excise tax refuses to discuss the problem of microbreweries; when it considers the problem of those who sell wine and spirits and refuses to take examine the problem of beer sales, it simply hinders the whole industry, those small and medium size businesses which, as we can see, have taken over a significant part of the market. The proof is that there was a demand, a need on the part of consumers. Indeed, those businesses grabbed part of the multinational brewers' share of the market, among them John Labatt Ltd. and its board of directors.
Today, we witnessed once again the pressure large companies like John Labatt have brought to bear on this issue, through their contacts with a member of parliament who happens to be the chair of the committee. They succeeded in completely excluding the problem of microbrewers from the discussions of the committee, which was responsible for reviewing the excise tax.
Once again, I thank my colleague from Drummond for having moved an amendment in the House in support of microbreweries. This amendment, which we are discussing today, is a wake up call for the federal Liberal government, which has shown absolutely no interest in the fate of small and medium size businesses in Quebec or elsewhere in Canada.