Mr. Speaker, I am going to talk about the budget implementation bill and, of course, a number of things that are particularly important for my riding, including the mineral exploration tax credit. I think it is worthwhile at this point for me to sketch a portrait of what Abitibi-Témiscamingue represents in terms of mineral exploration.
In my riding, one in six people is connected to the mining industry. That is 16% of jobs, both direct and indirect. In Abitibi-Témiscamingue, investments in mining exceeded $1 billion in 2011, but dropped to about $780 million in 2014 because of the economic downturn.
In addition, 370 businesses are active in the mining industry either as product manufacturers or mining companies. Clearly, this sector is huge in my riding. That is why I want to talk about the mineral exploration tax credit.
The budget implementation bill renews the mineral exploration tax credit, which helps junior mining companies using flow-through shares. Of course, we support the mineral exploration tax credit, but unfortunately, the Liberals missed this opportunity to make it permanent. I think it is very important to make this tax credit permanent in order to make life easier for mining companies.
The fact that the tax credit is not permanent and that no one knows whether it will come back has a serious impact when firms try to plan their exploration activities. They can try to hurry, but they do not know whether it will happen.
It is important to understand the mining cycle. When it comes to mining, if companies wait for metal prices to go up before they explore, by the time they go through all the steps to eventually get to a mine in production, metal prices will have dropped again. It would be much better to promote exploration when metal prices are low, so that when the price of gold, for instance, goes up, the mines are ready to go into production quickly, within two or three years. That is the logic that must be applied to the mining sector. That is why this tax credit must be permanent, if we want to promote the development of our mining sector in a much more intelligent manner.
When it comes to prospecting, that is, when a company thinks there is a deposit somewhere, it takes about five years to do the research, get some core samples, and analyze them. The delimitation also has to be completed, in order to find out exactly where the deposit is located.
Ideally, this five-year period would coincide with the down cycle in ore prices. That way, when the price starts rising again, the next phases can begin. It is currently a good time to undertake mining exploration. We cannot abandon our mining companies, especially those who are just starting up. They need help now. Unfortunately, when metal prices are low, it is harder to find investors to back up these companies. That is another argument in favour of supporting our mining startups in their exploration activities.
When we talk about the development phase, which encompasses pre-production preparations, the setting of every technical and economic parameter, and all feasibility studies and environmental assessments, we talk about a three- to eight-year period.
For installation and production, we are talking about a 10-year timeframe, give or take, during which the mine will actually be in production.
That is the mining cycle. Afterwards, of course, there is everything related to closure and rehabilitation, which can take a year or two. Environmental monitoring can last for several years, depending on the situation.
That was one of the especially important aspects of the mineral exploration tax credit. The other important aspect that was brought to my attention several times had to do with eligible expenses.
At the exploration phase, mining companies are increasingly responsible for consulting the public to notify them of their activities, and they are on board with that. Sometimes, they also conduct environmental assessments or studies on the fauna before even beginning with the exploration, to ensure, for example, that they are not disturbing the habitat of animals such as moose or other wild animals.
Before exploration even begins, there are expenses for consultations or environmental assessments. Unfortunately, since these are not expenses for extracting core samples, for instance, where the work is actually done on the ground, these expenses do not count as eligible exploration expenses.
It might be a good idea to include these expenses with those that are incurred for mining exploration because they go hand in hand with ensuring that the projects unfold seamlessly. The purpose of all these expenses is truly to ensure that the approach taken by the mining companies is much more respectful of the communities. I think that the Liberal government could also take a look at this as part of the budget.
I would also like to take the time to talk about other measures. For example, feminine hygiene products have been added to the list of tax-free products. I believe that it is a good measure that can be primarily attributed to the NDP, which proposed this measure in the previous parliament. It has now been implemented. We can be proud of what we accomplished.
I would like to remind the government that I introduced a bill to eliminate the tax on basic baby supplies. These products are zero-rated in most provinces that do not have a harmonized tax. In all provinces where the provincial tax is not harmonized, these products are considered zero-rated supplies.
I believe that we should consider taking action to ensure better coordination between the provinces and the federal government. We do not have to wait for my bill to reach second reading stage. I have many other interesting bills. Therefore, I would not be upset if the problem were to be solved before we reach my bill. The government is completely free to implement the measures contained in my bill before it is debated. I would be pleased if it wanted to do so.
I also think that it will make life easier for a lot of parents who buy basic baby products. The bill provides a list of products that are absolutely essential when caring for a baby. I also think that many parents would be grateful to the Liberal government for taking action on this.
Another important point is that the Liberals have gone back on their promise to lower the small businesses tax rate to 9%. Small and medium-sized businesses in my riding will be particularly disappointed, especially when you consider that they provide the vast majority of jobs there. They are the heart of our communities.
Some communities rely solely on a local SME, which enables people to earn a living. For example, in La Reine, where I am from, Les Aciers JP manufactures metal products. It hires welders and people who work on the cutting tables. Without this business, there would be nothing left in town, aside from a few service businesses.
When the government chooses not to support these businesses and lower their taxes, it is adopting measures that hurt rural ridings like mine. It is important to support these businesses. These are local jobs that help keep people from leaving many of these towns. I think that is particularly important.
Since I am out of time, I thank my colleagues for listening. I would be happy to take questions.