Mr. Chairman, I would point out to the minister that an intermediary does not work for nothing. In any markets, one pays the intermediaries one uses.
The minister can check with Mr. Bédard from the government of Quebec, with whom I was speaking this morning; he told me that for this kind of intermediary, for Cossette Communication in Quebec City, 3% is the norm for what they do, which is to manage a sponsorship or a budget for a particular event. Cossette Communication charges 3%; that is what the government of Quebec pays.
Here, if we take the case of residential real estate, for instance, for real estate agents who must advertise a house in the local papers, find a buyer and find a vendor who will agree to put his house up for sale, the rate is 6%. If one wants to advertise Canada-wide, in other provinces, it is 7%. We are talking about newspaper ads, which cost quite a bit.
Intermediaries like Groupaction or Groupe Everest often do not have to look for a buyer. There is a vendor, as it were, the government, which is prepared to put millions of dollars into a sponsorship, provided that it gets some visibility; and there are buyers, those being sponsored, who are on their knees at the doors to the offices of Groupaction and Everest. They are saying “Get the money, I need it”. There are no expenses for management and advertising in the newspapers, and they charge 12%.
In terms of percentage, 12% of $200 is not too terrible; not enough to go crying to one's mother about. But once percentages are involved, 12% of $4 million, or 12% of $2 million, the costs are exponential. They are uncontrolled and uncontrollable, as far as I can see.
The minister tells us that 12% is the norm. Whose norm? It is the norm in terms of what one is accustomed to paying without asking any questions, Mr. Minister. That is what I am asking you.
Does it seem logical to you that it is 12%, given that the intermediary has practically nothing to do?