Mr. Chair, I congratulate the hon. member on her maiden speech in the House. I recall making my own first speech and I know there are butterflies when one does that.
Let me make a couple of points and then ask a question. In terms of the increased slaughter capacity, there are two components to what we are trying to do and both of them are critically important. The member may not totally appreciate the approach that we are trying to take here.
On the one side we are trying to ensure that the regulatory process surrounding the approval of new slaughter capacity is enhanced so that it can happen more quickly. We are providing a single window so that those applicants are not spending a good amount of their time running around to different government departments and agencies, but rather that they can get it all in one place. Then of course, once we put new capacities on line, if we do not have the ability to inspect, it is of very little use to us, so it is also important to provide that.
In terms of the loan loss reserve, the idea is not that it is simply $38 million. By constructing it as a loan loss reserve, where a portion of every advance will be made by the private sector, this government is not trying to decide who has or has not a good business plan. We are allowing the private sector to do the due diligence.
The idea is that the $38 million can lever at a rate of three or four to one. As I mentioned in the announcement, it should be able to result in between $140 million and $150 million of new investments. These are instruments that have been used in the past quite successfully and we have seen that kind of leverage occur in the past.
I have a question for the hon. member. The Canadian Cattlemen's Association was an integral part of the development of this proposal. Mr. Eby, who is the president of that association, has said very clearly in the announcement that he felt that this was clearly the right thing to do. He indicated the importance of working with the provinces and ensuring that we have a common platform for delivery, which we are in the process of doing to ensure that we have an efficient program that will work effectively.
Mr. Eby was with me at the press conference when we announced this. He was very supportive of it. Does the hon. member think that the Canadian Cattlemen's Association is incorrect in its support of this program and the design that it put forward, which we have basically adapted in this proposal? Is she uncomfortable with the CCA position or does she think it is appropriate?