Walt Lastewka

[Small Business Loans Act, October 27th, 1995]

Mr. Speaker, it is appropriate that we discuss Bill C-99, an act to amend the Small Business Loans Act, at this time because this week is small business week.

We know that small business is the lifeblood of our economy. Statistics tell us that 99 per cent of businesses in Canada have fewer than 100 employees. Because of their numbers in small businesses they tend to drive the economy. Growth in small business means economic growth, but the bottom line is that the government does not create jobs, businesses create jobs. Small businesses create almost 80 per cent of new jobs in Canada.

Government plays a very key role. It creates the climate and builds the framework for economic growth. The Liberal government has taken important steps to create the right climate.

We have reduced regulation. We have eliminated 250 regulations already and amended another 300-plus. The process continues to eliminate paperwork and regulations and streamline the cost of doing business.

We have improved the access for small businesses to technology through programs like the technology partnership program.

We have reduced the paper burden and red tape that small businesses struggle with. Ten business service centres have been opened up across Canada from coast to coast, which provide 24-hour a day services.

We have just announced the business networks initiative, which brings businesses together. Networks and working together with people makes things happen and makes business grow. We have introduced a single window business number at Revenue Canada so businesses can make one call instead of four.

We have introduced new legislation like Bill C-102, which creates the equivalent of free trade zones in Canada and allows Canadian businesses like those close to the U.S. border in my riding to compete against the U.S. companies head on. This bill will also assist businesses throughout Canada, wherever they may be.

We have the team Canada trade strategy aimed at helping businesses export. SMEs produce only 10 per cent of our exports, and only about 4 per cent of the small business sector exports. We need to improve this record. We need to make continuous improvements in assisting small and medium size entrepreneurs to export. This is where government can play a key role.

As a member of Parliament I have been able to work with a committee in the St. Catharines-Niagara area to help small business understand what it takes to export and how really easy it is if you know the system. By teaching this system the committee is trying to assist some 350 small exporting companies in my area.

This leads us to a problem, because we know it takes money for small business to expand. Business needs access to capital. One of the largest problems facing small business people and entrepreneurs is financing. Here too government has played a major role. The industry committee of the House has studied this issue extensively. It was very interesting to see the participation of all parties, the Bloc, Reform and the government members, working together on improving the system within the industry committee, such that we could make more improvements for all businesses no matter where they are located in Canada.

Banks have responded to introduce codes of conduct and an alternate dispute resolution system and some have ombudsmen. Maybe there has been some picking on the banks and maybe it was required, but they are also working with many of the small businesses and many of the community committees to really get at making things happen.

Government also plays a direct role in lending to small businesses. We do this through the Business Development Bank and the Business Development Corporation. We lend through the Small Business Loans Act.

The Small Business Loans Act creates an economic development tool for the government. The act was first passed in 1961. Since that time more than 420,000 loans have been made, totalling over $15.5 billion.

Recently the SBLA has been running at a cost of $20 million to $30 million per year. This is a cost the government incurs; in other words, it is a cost to taxpayers. As lending has increased over the last couple of years, we are now looking at a loss of over $100 million annually. Over five years the program will be tripled, from $4 billion to $12 billion, and then we are looking at a potential liability of $12 billion plus. That represents a problem for the government and for the taxpayer. That is why the government initiated a review last year and consulted with borrowers and lenders from across the country and the various agencies and institutions involved.

For a government that is tackling the deficit and the debt, we know that we cannot sustain this SBLA program on taxpayers' backs forever. The government has had to reduce its spending. We have cut overall expenditures by 19 per cent, the public service by 14 per cent, transportation subsidies across this land by some 97 per cent, business subsidies by 60 per cent. This is only a small sample of our cuts to reduce the deficit.

The important item I would like to bring forward to the House is that while we have been doing this cutting, we have done it in a progressive manner. We have done it by getting input from all the people involved and understanding the facts that are required as we go through these cuts.

Yes, we are making changes, and for the last number of weeks changes seem to have really hit the House. We have been making those changes a little at a time, not going from one extreme to the other but making those continuous improvements that are so important to industry.

The reason we have Bill C-99 before us today is to make the small business loans program revenue neutral for the government over time. When this legislation is implemented, we will be able to recover the cost of the program and the burden will not be placed only on taxpayers.

As has been mentioned, several actions have already been taken as of April 1, 1995. There is a new 1.25 per cent annual fee levied on lenders' average outstanding balance of loans made after March 31, 1995. The maximum rate a lender can charge increased by 1.25 per cent, the prime interest rate plus 3 per cent for floating rate loans and for residential mortgages it is rate plus 3 per cent for fixed rate loans. This means the program has been put on a cost recovery basis for all loans made after March 31.

Bill C-99 makes further changes to the Small Business Loans Act. The amended act will grant authority respecting the release of security, including personal guarantees taken by lenders for the repayment of the SBLA loans. It will grant authority to make regulations for the establishment of a claims processing fee. The bill will also improve government guaranteed coverage for low volume lenders.

The bill will enable the SBLA program to respond more quickly in the future to changing economic and program circumstances by allowing the guaranteed percentage to be adjusted by regulation, to be adjusted as mentioned as the future unfolds. As things change around the world, we are in the global economy and we will be able to adjust and make those changes on an ongoing basis. As has been said over and over, in this world nothing stands still; everything changes slowly and continuously.

The amended act will potentially accelerate an already legislated decrease in the percentage of an SBLA loan which is guaranteed by the government from 90 per cent to 85 per cent.

The theme for small business week this year is: New Markets-Opportunities for Growth. The government wants to help small businesses grow and expand. I have outlined the many ways in which we are doing that. However, we are not doing a favour to businesses if we hand them money while increasing the deficit which thus reduces the strength and growth of our economy.

We are working to get the basics in place. We are providing several sources of income to small businesses which have difficulty attaining access to capital through other sources. We are improving and refocusing these programs so they will better target those who really need them.

Without the subsidy in the SBLA program's present interest rate the higher cost of these loans will mean financially strong businesses will switch to lower cost commercial financing. More funding will be available to small businesses that really need the programs. We will be doing this in a revenue neutral manner which will not cost taxpayers extra dollars they do not have.

This is important legislation which builds on the government agenda to help businesses succeed. We want a strong and vital growing economy and we need businesses to grow to accomplish that. This bill means financing will be available to help the small business person and it will be provided without an additional cost to taxpayers.

The government has put forward many programs to assist small business. Community groups, of which I have one in my community called the FMP group, are excited about the changes this government is bringing forward to help small business.

I urge all members in the House to join me in support of Bill C-99, an act to amend the Small Business Loans Act, so that we can work together across the country. We have shared across this country and have made improvements across this country. Likewise, I hope that when the people of Quebec, including Quebec's business people, come forward on Monday they will vote no in order to continue to share and make improvements in this great country of ours.

[Quebec Referendum, October 27th, 1995]

Mr. Speaker, I speak on behalf of my colleague from Peterborough who lost his voice and on behalf of the people of St. Catharines.

Four buses, two from each city, two cities which normally compete with each other, today drive together to join people from all over Canada at the no rally in Montreal.

Today Canadians are voicing their opinion. They are in Montreal to say to Quebecers that they want to stay together, they want to stay united. They are also reminding Quebecers of the seriousness of the vote.

Canadians are asking Quebecers to say no to destroying our political union, to say no to destroying our economic union, to say no to destroying Canada as we know it and as it has existed for many years.

Keep the family together. On Monday vote no. As proud Canadians we say let us keep the country together. We join in spirit with our constituents in Montreal in saying our Canada includes Quebec.

[Small Business Loans Act, October 24th, 1995]

Mr. Speaker, I take this opportunity to congratulate the hon. member for Parry Sound-Muskoka for his efforts on the bill. As part of the industry committee and as part of various task forces, he has travelled widely in Canada to receive information from small businesses.

Actual consultation with small businesses is an area that has been overlooked in the past. They do not have a large staff or a lot of money to spend carelessly. Every penny they spend in their budgets is very important to them.

My question to the member concerns communication and information to small businesses once the bill is passed. It is very important that the consulting process and improvements continue to go forward. Getting the information out to the many small businesses around the country is very important. The member might want to comment on that.

[Jack Gatecliff, October 4th, 1995]

Mr. Speaker, on November 20, St. Catharines' well known sportswriter, Jack Gatecliff, will be inducted into the Hockey Hall of Fame.

Better known as the Gate, Jack Gatecliff is best known for his constant friendly smile and personable nature. He is also a hockey historian who has dedicated his life to writing about the sport.

In 1950 Jack began writing for the St. Catharines Standard , a five times a week column called ``Through the Sports Gate''. He officially retired as sports editor in 1991, more than 10,000 columns later.

His love of sports shone through in every article he wrote and he still contributes to the Standard on a regular basis. As a hockey player Jack played with the Junior A team in St. Catharines. As a writer he spent countless hours covering Canada's two national sports, lacrosse and hockey. For years Jack Gatecliff kept St. Catharines' sports fans up to date.

I know my colleagues in the House join me in congratulating Jack Gatecliff on his induction into the Hockey Hall of Fame.

[Peacekeeping, September 26th, 1995]

Mr. Speaker, today the Minister of Foreign Affairs will address the UN General Assembly on a government study entitled: "Towards a Rapid Reaction Capability for the United Nations". This study began when the Minister of Foreign Affairs first addressed the UN General Assembly in September 1994.

Can the Minister of National Defence tell the House how Canada's report on rapid reaction capability will improve United Nations peacekeeping operations?

[Customs Act, September 21st, 1995]

Mr. Speaker, it is a great pleasure for me to speak today on Bill C-102. As a member of the St. Catharines promotion task force prior to my election as MP and one who had worked on free trade zones in the U.S., it gives me great pleasure to be able to speak today as a member of Parliament on the bill.

I would be remiss if I did not give credit to a number of committee members in St. Catharines: Don Chambers, Don Johnston, Don Wiley, Ian Spraggon, James Wakil and Mike Haines who helped in the work on free trade zones.

Free trade zones in the U.S. are right across the border from us. There are six free trade zones with which the Niagara area has to compete. It is not only the fact that they are free trade zones but the Association of Free Trade Zones meets directly across the border in Buffalo.

While doing some research and working on the committee it was interesting to note the advantages of free trade zones that were published in the U.S: land and store imported goods quickly without full custom formalities; wait until goods leave the zone to pay duty; display goods in showrooms in the zone and have buyers inspect and sample merchandise; process, assemble and otherwise process goods to qualify for lower duty; when manufacturing in a foreign trade zone choose the most advantageous type of duty and quota limitations; salvage or repair damaged goods duty and quota free while finding a suitable market; and store goods indefinitely to await the best market conditions. These are only some of the advantages proposed by free trade zones in the U.S.

Curiously the six free trade zones across from the Niagara area were all started by a Canadian, George Keitner, from Montreal. I give him credit for starting free trade zones. In the previous government he could not get his point across that in addition to free trade and NAFTA we had to work out the details in the accounting systems of our country. It seems that those details were not taken care of back home.

We had consultations and worked with various communities across the country. I had the pleasure of working with members from the communities of Vancouver, Calgary, Newfoundland, St. Catharines and Montreal. Consultations with businesses have accommodated Bill C-102. More important, business, industry and manufacturing people played a part in the changes.

Other advantages were the streamlining and consolidating of duty deferral programs in the customs tariff; making the paperwork more user friendly; making it easier on cash flow; and, more important, allowing various businesses in regions and municipalities to effectively market their programs from their areas.

We all have various opportunities in our communities, no matter where we come from as members of Parliament. The bill will allow various teams in communities to create their focus and exporting niche. We have different products across the country so we can all take advantage of additional exports.

As cited in the foreign affairs and international trade report last spring, creating and promoting an international orientation for business in Canada should be a priority objective. Bill C-102 helps meet that objective by providing access to the program by the businesses and communities I mentioned earlier and by allowing the economic development programs to flourish. It does not restrict. It assists business manufacturers to make things happen. Of course in the end this means jobs for Canada.

I especially like the wording of the bill. As my colleague across the way mentioned, the bill is quite thick. Current inward processing allows the relief of customs duties and the various taxes and excise taxes and enables the cost of doing business to come down. The bill also allows new manufacturers and new start-up companies to get into the business instead of having a history on which they have to report. Having new businesses getting into exports allows us to build our international export trade.

Streamlining customs duties and requirements will make it much easier for our manufacturers. We will have to build in accountability but it is better to build in accountability rather than restrictions.

I am reminded when we toured many of the free trade zones in the U.S. of the physical barrier requirement. In Bill C-102 no physical barrier will be required. It will be an easy and simple system, created as such so that our manufacturing strength in Canada can be improved even further on the export markets.

I am also reminded imported goods and domestic goods can be used interchangeably. Many of the items previous speakers have mentioned will be advantageous. After touring some 60 free trade zones in the U.S. and having discussions with various people, the government in the co-operation with the users of the bill has made a substantial improvement on how we do business in Canada.

As mentioned before, it is the duty of the Government of Canada to assist business in making things happen. In the bonded warehouse provisions, activities currently provided for in the bonded warehouse legislation such as storage, packaging, repackaging, labelling, normal maintenance, servicing, complying with any applicable law of Canada and testing of same will continue. There are also improvements. The government needs to continue to look at our systems, in this case duty deferral and remission programs, and make continuous improvements as we go along.

Over time product research and product lifecycles change. Therefore our accounting system needs to change. In the proposal storage time has been increased to four years, which will allow various businesses and companies in the manufacturing sector to determine their own productivity planning, to determine their own productivity cycles, rather than the system telling them how to produce.

In previous discussions I mentioned the 60 free trade zones with which our committee exchanged information. In this government proposal and the submission put forward we have taken the best of many free trade zones and incorporated them into our structure. It is a team Canada approach to making things happen.

As a result we will increase our exports. More and more companies and businesses will see that although their competitors may be unproductive they will be co-operating as they export more and more products around the world. We are into a global situation and these improvements are perfect timing as we look forward to next year's budget.

I bring to the attention of the House how manufacturing will benefit from this proposal. Often we take manufacturing and manufacturing jobs lightly. We forget that some 1.8 million Canadians are directly employed in manufacturing and over 2 million depend on our industry for their livelihood. Almost 50 per cent of goods manufactured in Canada are exported. In 1980 it was 25 per cent and now it is 50 per cent.

I also bring to the attention of the House that some 75 per cent of the research and development in the private sector is done in manufacturing.

With the assistance of Bill C-102 I am sure that many manufacturing businesses will take advantage of the system because the cost of doing business will be reduced. When we reduce the cost of doing business we allow for more business to be done and we can compete on a world scale.

The government continues to work to remove paperwork and make the system more effective. It helps companies and businesses to spend their time on sales, research and productivity. It will improve exports, Canadian quality and costs, making us even more competitive. As I mentioned earlier, jobs in Canada will be improved by exports without a major cost or expenditure by the

government. There is a way to improve the employment situation and make things happen.

I commend the finance department for all the work it has done on the bill. It is obvious that with support from the three previous speakers and working together as Canadians we can improve our system in Canada and complete on a global level.

[1999 World Rowing Championships, September 18th, 1995]

Mr. Speaker, on August 17, St. Catharines stood before the world's international rowing body representing Canada's bid for the 1999 World Rowing Championships.

Canada won the right to host the biggest world rowing event in 1999. The federal government played a leading role in the success of the bid. The community, local fundraisers and other levels of government will also assist in ensuring this project is a success.

The 1999 World Rowing Championships will bring millions of dollars and hundreds of jobs to Canada. The event will bring the athletes, coaches and media of some 40 countries. It will be the final event in a summer long rowing festival in Canada including the Pan American Games in Winnipeg, the Canada Cup in Montreal, the Commonwealth Regatta in London, the Regatta of the Americas in Welland and the Royal Canadian Henley and the World's in St. Catharines.

I thank all my colleagues for the wonderful support they have given in putting this bid forward. Canada's reputation in rowing is known and respected around the world.

[Royal Canadian Mint Act, June 21st, 1995]

Mr. Speaker, being a new member I would from time to time like to get clarifications on using props in the House. I wanted to make sure I understood for my future speeches that flaunting the rules, bending and breaking them every which way is permissible. Is there a rule on that?

[Criminal Code, June 15th, 1995]

Mr. Speaker, anywhere there is discrimination or motivated or planned hatred it does not underscore what the member opposite has put in as an example. If it is a motivated hate crime, sentencing should be dealt accordingly.

[Criminal Code, June 15th, 1995]

Mr. Speaker, the bill talks about sex and the various areas the judges can rule on. Too often I have seen in court cases in which the law is not defined. There is a wide discrepancy from one coast to the other in Canada.

The bill puts more into the system so judges can make the decisions. When there is a sentence they will be guided as to whether it was hate motivated, yes or no. That is what is important. We are trying to get the message out to people that the government will put in stiffer laws whenever there is hate motivated crime. That should be pretty clear.