Mr. Speaker, I thank my colleague from Edmonton—Strathcona for sharing his time with me. I appreciate his comments and I agree with them for the most part. I make it absolutely clear that I am also opposed to this bill. I do not know if my colleagues across the way would really understand that or if they suspected anything different but that is the case. There is good reason for that.
All this bill does is put a band-aid on the problem. It seems the Liberal government is good at putting band-aids on what could be and should be considered as systemic problems, and those solutions really do not hold up.
There is no question that all businesses need capital, they need cash. They need equity investment. There are presently certain inhibitors to the cashflow process. Those who have cash should be able to create a situation in which small businesses could flourish more than they do.
What they do not need is for the government to drive them into more debt when it does not have to, and too often that is the case. I can cite example after example in and around the region where I came from in Alberta with government interference. A lot of that so-called easy money seems to go to friends of the Liberal government. The playing field is not even when it comes to government distribution of money to the small businesses to help them develop. I find it reprehensible for the most part.
Why is it that the government turns to debt to solve cash shortages? It wants businesses to do the same thing. It is like most Liberal initiatives. Bill C-53 addresses only the symptoms of the problem. Canadian small businesses do not need more access to debt. They need more access to equity. They need more access to customers with money and they need the government to leave them alone.
It is not government that creates small businesses or all that much employment. It is the small businesses that create employment for the most part. They do not need more debt.
We say that until the systemic problems associated with excessive taxation are addressed small business will continue to struggle for more available cash. We recognize the concerns of small business owners. We know they need more disposable cash and I have had many come to me in my riding. Members across the way undoubtedly have had the same experience. They are just so much short of operating capital. Their businesses are close to being very viable. It is just that they need to get over that hump. So many of them fail because they do not have access to the cash they need. I am not saying that every business will be a viable one but there are many that are and just do not have the cash they need.
We strongly feel, though, that the way to address these concerns is through lowering the tax burden on individual Canadians as well as businesses. More money in the hands of customers, the wage earners, means more money spent on and at Canadian businesses. More money in the hands of businesses means stronger businesses, more jobs for Canadians and more opportunities for new business ventures as well as expansion.
I think we have seen some examples of some profitable businesses over this last bump up in the economy where businesses have expanded in a substantial way just through their own initiatives. It certainly was not as a result of the government. It was their own initiatives.
Addressing a short term cash crunch through more government loan programs will only exacerbate the existing problem. Bill C-53 does nothing to address the underlying causes of small business troubles. It deals merely with the symptoms of larger economic problems which are the responsibility of the government. The government should be creating an atmosphere for business to thrive in.
Unfortunately this bill not only skirts the real issues facing small business it actually creates more of the same problems which led to small business failures in the first place. I have seen government intervention in Alberta where it encouraged farmers to invest money into expanded operations. It would even lend money. It almost threw it in their faces to expand value added businesses that were in a way on shaky ground because there was no telling what the commodity markets were going to do. It was not a natural process of expansion.
The banks were also involved and then the crunch came. Millions of dollars were invested. What happened? The farmers lost their equity. They lost their new business ventures plus the land. That has happened in far too many cases because of government involvement in lending money or pushing it on them. There were some who of course jumped at it. Instead of letting the normal flow of business take its own course, this is what happens. As a result we end up with many failures, far above what it should be.
The other case at hand when we come to government throwing capital to small businesses is who pays when a venture collapses. It is the taxpayers of course. It falls on their shoulders. The tax situation in this country is unbearable. The responsibility lies across the way here. I do not have to tell you that, Mr. Speaker. You are a small businessman and would know full well what expansion would mean. I am sure that when you expanded your business you went to the government to get more capital. It is a foolish thing. There are many entrepreneurs that do not need to do that.
I think the government should be addressing the economic problems. There are ways it can do that. I am urging the government to implement substantive systemic change that will address the underlying causes of business failures, freeing up for instance capital gains. Get rid of the capital gains tax and there would be more capital to actually invest. I do not think that is a bad idea. I think it is something that should be addressed in a substantial way.
There are trade barriers between provinces and from one region to the other that should be removed. What does that cost the business community every year? If I remember correctly, it is somewhere between $5 billion to $6 billion. Let us work toward eliminating some of the trade barriers.
There is high taxation. Money placed in the hands of a wage earner is more profitable than in some government bureaucrat's hand. That would be money spent and it would assist the business community in establishing a firm base. There are payroll taxes and employment insurance both from the business community and the wage earner.
We have a surplus right now. The Minister of Finance cannot wait to get his hands on it. Really it is money that should be placed in the hands of the wage earner and the businessman. What would they do with that money? I know exactly what they would do with it. The wage earner would spend it. The businessman would look at it and say “here is an opportunity for me to buy another machine and employ two or three more people”. That is what would happen. But on the other side, it is gone. It is going to disappear.