Madam Speaker, I am very pleased to have the opportunity this afternoon to discuss Bill C-46, a reorganization of the industry department. It is an important piece of legislation. A large number of activities which are going to affect the business community are being brought together into one department: small business support; tourism; economic development; telecommunications; trade and commerce; science; and consumer affairs.
The thrust of the legislation in what it is trying to accomplish is very positive. We are trying to make the department more efficient. We are going to give the small business sector and the business community in general one stop, the Department of Industry, in which to interface with government rather than having to go through a paper chase every time.
It is going to be a more efficient process. We are going to have a number of consolidations. The member opposite mentioned some of the savings that are beginning. Those will be accelerated as time goes on. We are going to have a more productive department. We are going to have centralized planning and direction for our government's industry policy. This consolidated department will give us the opportunity to do that.
There are three specific areas I would like to talk about: small business support; tourism; and regional economic development.
Small business support by the Department of Industry is absolutely critical to the Canadian economy. It is the fastest growing component of our economy. In the first three years of this decade during one of the worst recessions we have ever experienced, 73,000 new small businesses were created. Eight of ten new jobs in the country come from the small business sector. It employs 4.2 million Canadians and accounts for 37 per cent of the country's employment. This new Department of Industry is undertaking a number of important initiatives to help this sector grow, to help it expand, to help it employ more Canadians.
One of the most important initiatives which I have had some direct input on and one which my colleague for Kenora-Rainy River mentioned was access to capital. It is absolutely essential that the small business sector be able to access both debt and equity capital if it is going to have an opportunity to expand or an opportunity to establish new businesses. The department has already moved in this area. A private sector committee estab-
lished last winter has been studying this issue. It is about to make a report with some very specific recommendations on how an environment can be created within which small business can access capital.
The department is working with the chartered banks, with this committee and others on a code of conduct. It will establish the relationship that will exist between the small business sector and the banking community to help ensure there is better access to capital.
There is an ongoing review of the Federal Business Development Bank to make it more effective and more responsive to the needs of the small business sector. An all party committee of this House, the industry committee, will table within a couple of days its report with some very thorough and sound recommendations on how this process can be taken even further.
I had an opportunity earlier this year to chair an access to capital task force. It toured the province of Ontario and discussed with the small business sector some of the things that can be done to help them access capital.
Beyond that the department is doing other things. It is helping formulate business networks to help individual small businesses combine their strengths so they can compete globally. They are working on establishing a Canada investment fund to help innovative firms access venture capital, to operate not as a replacement for capital from the private sector but as a stimulus for entry into those markets.
There should be better access to government programming through business service centres. This is an important initiative. Small business people do not have the time to go through reams and reams of paper trying to access information. They need it to be given concisely and in one location. This is an important initiative that is being undertaken co-operatively with the provinces.
There is a private sector committee working under the auspices of the industry department looking at the business environment, including the regulatory and paper burden that small businesses have to operate under today. We have to relieve the small business people from spending more time on paperwork than doing their jobs and more time on trying to adhere to regulations than trying to earn profits and employing people.
The second area is tourism, a critical industry in Canada and a critical industry in my riding of Parry Sound-Muskoka. Representing 10 per cent of the Canadian labour force, 1.2 million jobs depend on this sector. In Canada 60,000 businesses are directly employed in the tourism industry. It generates $12.9 billion in tax revenue which can be used for the betterment of all Canadians. Locally in my riding 52 per cent of all employed individuals are directly affected by the tourism industry. For each million dollars that we are able to increase tourism in my riding we can create 39 person-years of employment.
Industry Canada through Tourism Canada is working hard on making that a bigger and better industry in this country. It is helping to formulate partnerships with the private sector so that we can market ourselves internationally as a country and attract more visitors to Canada. They are concentrating on the development of new products such as a winter experience product including snowmobiling and cross-country skiing, areas of vital concern in my riding where people are able to earn their livings.
This is not going to be the end. It is the beginning. As the Minister of Finance said today in his statement, the area of tourism is one the government will concentrate on in the months ahead. As well, the Prime Minister appointed his special advisor to recommend further action. Tourism will be looked at by this government. It will be pursued and will become an even more important industrial tool in Canada.
The last area I would like to touch on very briefly is the area of economic development. Something that is often forgotten in all of the plans is that in northern Ontario we are a resource based economy which has experienced great financial difficulties over the years.
The economic development agency FEDNOR operates in northern Ontario. I agree with the Minister of Finance and several other comments in the House that we cannot subsidize a losing proposition and expect it is going to have any meaningful impact. However, economic development agencies can invest in the future winners. It can help lever investment from the private sector. In fact FEDNOR has committed $53 million directly but by doing so it has been able to lever $186 million in additional funds. That is what economic development agencies are all about. That is what they do.
FEDNOR has participated in 843 projects since its inception and it has helped create or maintain over 3,600 jobs. FEDNOR is an important initiative for northern Ontario. It is one under the auspices of the Minister of Industry and I am pleased to see it will continue under the reorganized department.
In summary, this bill is committed to creating a department which will create an environment in which business can prosper. The reorganization of the department will help this happen. It will make it more efficient, more effective and more productive. I would like to congratulate the minister, his assistants and the people of his department on a job well done in formulating this piece of legislation.