Mr. Speaker, I am pleased to rise today to speak to Bill C-661, which was introduced by the member for Joliette. This bill would amend the Income Tax Act regarding the transfer of a family farm or fishing corporation.
I want to focus on the importance of family businesses, on how challenging it is to transfer a business, and on the economic implications of a flourishing agricultural sector, fishing sector or small business. Today, a family farm or fishing corporation, for example, is still the dream or reality of many Canadians. However, our society has changed, and although we benefit from and rely on the well-being of these industries every day, many of us are far removed from them. That is why I appreciate being able to consult my colleagues who come from these fascinating worlds every time an agricultural or fishing issue comes up. We are fortunate enough to have many of them in our caucus. They make an important contribution to the House and to the study of this bill in particular.
Agriculture and fishing have also changed, and we need to make sure that the legislation governing them keeps pace. As we discuss this bill, the main objective is still to ensure that the overall intent of Income Tax Act measures remains unchanged. In a law as long and complex as the Income Tax Act, it is easy to lose sight of the intention behind each measure. It can be easy to introduce inconsistencies. Let us keep that in mind.
Even though agriculture and fishing have changed so much, the family business remains the cornerstone of Canada's agri-food industry. Family farms are good employers. Canadian fishers are excellent contributors to their communities. Both represent our cultural wealth here and in the eyes of the world. My party was proud to promote them and represent their interests when we were in government. We continue to support them today.
The current context is particularly urgent. Estimates all show that most family farms and fishing corporations will change hands in the next 10 years. The same is true of other small businesses. We would like to make sure that they fall into the best hands as often as possible.
Those who have worked in the field, whether at the head of a small business or supporting one, will all agree: the first transfer of the business is always the biggest obstacle to its success. My colleagues will therefore understand why my party definitely wants to give farming and fishing businesses the best possible chances for survival every time they have to change hands. Given the extremely hard economic context, that is absolutely crucial.
I would like to share a few reasons why transferring from one family member to another, whether to a sister, brother or child, should be supported by law. First of all, there is no doubt that these areas—fishing and farming—require a very high level of expertise and familiarity. Family members often get a head start on developing these skills and this knowledge. Secondly, farming and fishing businesses are often integrated into the family's daily way of life. We can imagine why growing up on a farm or on the ocean would help a future business owner, in the case of a sister or brother, to successfully take over such a business.
It is also important to note that not all entrepreneurs have the chance to transfer their business easily and predictably to one of their children. Perhaps they do not have any children. Perhaps their children have moved to the city or moved away to study, or perhaps their children are simply not interested. There can be many reasons.
However, if a brother or sister is available to take the controls with a steady hand, then we should stay out of it. That type of transfer can suit everybody. Instead of rushing the transfer to a child just to take advantage of the tax rules, only to see the business crumble as a result of poor succession planning, everyone wins if a sister or brother buys the business and then possibly hires the next generation and perhaps hands down the business to them one day. If we encourage the survival of that business through the best means available, then the Canadian economy wins in the end.
Those are just some of the reasons why I believe that we must allow such a business to pass to a sister or a brother with the same tax benefits that apply to children. In many cases, the brothers and sisters, by generally having lived close to the business in question for longer, have the extra experience needed. The business may benefit from it, and the survival of the business many very well depend on it.
By supporting this bill we are simply trying to ensure that the Income Tax Act does not discourage the best qualified person in the family from taking over the business because of the tax implications. Such a distortion of this market would certainly be harmful to both these industries.
I am therefore pleased to support Bill C-661, and I encourage my colleagues to examine the bill with a view to the transfer of small and medium-sized businesses, particularly in farming and fishing, in a tough economic context. It is a matter of helping these people acquire these businesses because often, they do not have the means.
Let us do our part and support this bill for the good of the Canadian economy.