Jean Augustine

[The Budget, February 26th, 1998]

Madam Speaker, it seems I have about a minute or so to answer three questions. I would again ask my colleague to pay attention and read the budget papers that were so generously sent to our various offices.

I want to focus on one aspect, which is the whole issue of young people and their debt load. I will agree with the hon. member that young Canadians are leaving colleges and universities with heavy debt. I would agree with him that the loan payments for young people at present are burdensome, but I would also direct his attention to the assistance which is given to young people in the budget.

If he is saying to me that people are saying this is a good budget, I want to say to him, yes, it is a good budget. It is not a perfect budget because there is nothing in life which is absolutely perfect, but there are items in the budget which respond to the needs of Canadians. The member must agree that we have covered the issue of women and children, we have covered students at various levels, not just at university but also at college, we have covered the issue of part time workers—

[The Budget, February 26th, 1998]

Mr. Speaker, I am very pleased to participate in the debate on this 1998 budget.

I would first of all like to congratulate the Minister of Finance, the hon. Paul Martin, for producing a balanced budget, the first we have had in 30 years.

Balancing the budget has not been an easy task. We know it required fiscal prudence, the sacrifice of all Canadians and the commitment of the government to listen and to act on the social and economic priorities of Canadians.

In this budget, our commitment to provide a secure future for all Canadians is reinforced and reaffirmed. I am very pleased to see that the government has introduced new initiatives and has expanded upon existing programs to produce greater support to Canadians.

The initiatives outlined in this budget will provide support for families with children, support for people looking after family members and access to knowledge and skills along with support for persons with disabilities.

These are measures and initiates essential for economic growth in my constituency of Etobicoke—Lakeshore and other communities across Canada.

The budget is not an end in itself but a means to a better future for all Canadians. We must, therefore, continue to dialogue with Canadians to assess and to address the needs and concerns of all communities.

Last November I held a prebudget consultation in my riding of Etobicoke—Lakeshore. In my discussions with my community groups and various individuals from the business community and others, I heard my constituents say that they want the federal government to do three things in this budget: continue on the path of deficit reduction, use the fiscal dividends to address the social and economic needs of Canadians and, third, provide tax cuts and support for young Canadians.

This is the message that I delivered to the Standing Committee on Finance and I am pleased to say to all of my constituents today that the government heard and responded to their concerns.

In Etobicoke—Lakeshore, reaction to the budget has been positive. I and those constituents who contacted me agree that the government has taken a step in the right direction.

My staff contacted community organizations such as the Lakeshore Area Multi-service project that provides front line service to constituents and their families, and Storefront Humber, which is an organization that provides service to senior citizens and others.

Those phone calls were made to gauge my constituents' sentiments on budget 1998. They understand that deficit reduction is the key to putting our nation on the right track to social and economic prosperity.

My constituents also understand that investing in our children's future has to remain one of the top priorities of the government. It is not surprising then that a balanced budget and increases to the child tax benefit are well supported.

I would now like to speak to the priorities of my constituents as they relate to the budget.

First, on deficit reduction, Etobians and all Canadians have every reason to be encouraged by the government's fiscal policy on deficit reduction which has brought us to this point.

In the budget speech, the Minister of Finance reaffirmed the Liberal government's deficit reduction plan. We made a commitment in the red book in 1993 to put our fiscal house in order. We have followed through on this commitment with a balanced budget that will remain balanced in 1998-99 and 1999 to the year 2000.

In 1993, Canada had a $42 billion deficit, the largest in our history. With this deficit, we were in a period of high interest rates and slow economic growth. Canadians were faced with the prospect of paying those higher interest rates on the debt with few job opportunities.

Thanks to the sound fiscal policy, this $42 billion will no longer be on the government's books. We have a zero deficit.

We are speaking about a zero deficit budget. This means that the government is making tremendous fiscal progress. It is creating a strong, vibrant economy where interest rates are low and economic growth is high.

A strong economy that is well managed is needed so that Canadians can compete in the global economy. Low inflation and low interest rates give Canadians confidence in their economy. Over the past three years the people of Etobicoke—Lakeshore have been able to reap some benefits because of reduced payments on mortgages and loans.

Canada will lead the G-7 nations in economic and job growth in 1998 and this is no common boast. Our debt to GDP ratio is decreasing. Our goal is to put the debt to GDP ratio on a downward track and to do so without borrowing and increasing the debt burden of Canadians.

We must stay the course, say my constituents. We have a balanced budget because of tough fiscal discipline and we must not let up.

Secondly, on the Canadian opportunities strategy my constituents agree that young people are the future of our nation. When we invest in their future we are building a stronger nation. There is no better investment in the future than investment in education, in knowledge and in innovation. We are living in a technologically literate, knowledge based economy.

I am the mother of two young women. I was an educator for over 30 years working with young people. I sat on a university board of governors. I know the plight of young people. I have listened to many young people in my riding who have talked to me about the difficulties they face in today's job market. They are in a vicious cycle of no job experience, no gainful employment. This budget will change this cycle.

Youth at risk, students and graduates want the government to take an active role in ensuring that there is equal opportunity to post-secondary education and assistance for debt burdens. The Liberal government is aware of this reality and this is why we are giving support to young Canadians through the Canada opportunities strategy, knowledge and skills needed for jobs now and in the future. Better jobs and higher standards of living for our young people in the 21st century is our goal.

The Canada millennium scholarship fund will remove the barriers for young Canadians to get the post-secondary education or advanced technical training that they will need to get gainful employment.

I want the young people in my riding to know that the Canada millennium scholarships will commence in the year 2000. They will be awarded to over 100,000 full and part time students every year over 10 years through an initial endowment of $2.5 billion from the federal government.

My colleagues across the floor commented that the start of the fund is not soon enough and that students would be better off if they were given the money now. We are putting the administrative structures in place so that the fund can be administered fairly and efficiently and this will take some time.

Our role is to support young Canadians and we will take on the responsibility of creating the measures to facilitate this role. The Canada millennium scholarship fund is an initiative that will benefit Canadians of all ages at various institutions who are undertaking studies under different terms.

The principles of fairness and equity are embodied in the millennium scholarship fund. I believe that this fund will lessen the financial stress that many Etobians face at present.

It is important that young Canadians leaving colleges and universities with heavy student loans which they are often unable to repay get the help that is needed right now. This budget does give them a break.

In conclusion, we must continue to build on our resolve to bring about fiscal order to our country while we focus on the needs of our young people. I call on my colleagues on all sides of this House to support this budget to ensure that all our young people have the future that is important for them.

[Foreign Affairs, February 23rd, 1998]

Mr. Speaker, we are very concerned when Canadians are killed while vacationing overseas.

Could the secretary of state for the Caribbean region inform the House on the developments in the case of Richard Gravelle, an Edmontonian who was murdered in the Bahamas on February 13?

[Mathieu Da Costa, February 20th, 1998]

Mr. Speaker, we cannot really celebrate black history month in Canada without remembering Mathieu Da Costa, the first recorded black African to set foot in Canada.

Mathieu Da Costa was a navigator, an explorer and a linguist. Through his many voyages to Canada in the late 1500s he made contact with the Mi'kmaq people and learned their language.

In 1603 he was the navigator on the ship which carried Samuel de Champlain on his voyage of exploration. On arrival this black man became the interpreter for Samuel de Champlain with the Mi'kmaq people, thus paving the way for the early settlers; Mathieu Da Costa, navigator, linguist, interpreter.

Congratulations to the many students who today receive the Mathieu Da Costa awards.

[Small Business Loans Act, February 16th, 1998]

Mr. Speaker, it is very easy in this House to throw the negatives around and it is also very easy in this House to oppose when one sits in opposition.

The positive aspects of this bill, the amendments as laid out and the initiatives as recommended provide the assistance small and medium businesses require. The minister has addressed the auditor general's report. The member is fully cognizant of the government's response in this regard.

[Small Business Loans Act, February 16th, 1998]

Mr. Speaker, I know my colleague supports the amendments to the Small Business Loans Act.

I agree with him that the average loan made under the act is in the range of $60,000. To many small businesses it is a large amount. We have to look at avenues and ways in which we could support the small micro businesses in their challenge to find seed money, the start up money.

In reference to the merger, the question has been answered in the House time and time again. This government has a committee which is presently at work. We are waiting for the recommendations to come forward.

The finance minister has been quite clear that at this point the merger of the major banks is a concern to us. My colleagues on this side of the House are working to find ways in which we can respond and deal with the issue when it does present itself to us. We still have a whole series of avenues, the caisses populaires, the credit unions, micro credit, community economic development. A whole series of issues has to be put in the mix as we discuss the question of mergers and other questions as to the direction in which our banks are heading.

[Small Business Loans Act, February 16th, 1998]

Mr. Speaker, I am pleased to join in this discussion to the amendments to Bill C-21, the Small Business Loans Act which provides loans and guarantees to small businesses.

The amendments to the act would extend the current lending period, as most of my colleagues have stressed, to March 31, 1999 and raise the program's total lending ceiling by $1 billion, taking us to $15 billion.

During this period of extension Industry Canada will have the opportunity to work in consultation with our stakeholders to review and give consideration to the sustainability of the program.

This review will investigate ways to sustain self-financing, to improve accountability and to verify the conditions stipulated in the act.

In my riding of Etobicoke—Lakeshore there are over 3,600 businesses. Many are small and medium size business. They are an integral part of the economic infrastructure of Etobicoke—Lakeshore.

The operation of these businesses cuts across the manufacturing and service sectors of the economy. To use the oft used phrase, they are the main engine of employment in my riding.

Maintaining a strong economy is vital to the success of our economy. Providing opportunities whether through financing, technology or whatever assistance we can give to small businesses will give the Canadian economy the energy it needs to grow.

Canada has more than 2.5 million small businesses. Small businesses created 81% of the new jobs in 1996-97.

In recent consultations with businesses in my riding, the one concern I heard from small business owners over and over is the difficulty they face in obtaining financing. Access to capital is their number one problem. The Small Business Loans Act addresses the problems of these constituents.

There is a history to the Small Business Loans Act. It was passed in 1961 to provide loans to small and medium size businesses which would otherwise not have access to conventional financing. In 1996-97 approximately 30,000 small and medium size businesses used the Small Business Loans Act to access roughly $2 billion of financing.

The importance of the $2 billion in financing to those 30,000 small and medium size businesses has been stressed over and over again. I can say to the House that without access to these financial resources, the small businesses in my riding would not be operational today nor would they have the success that they have had.

The program under the Small Business Loans Act is consistent with the Liberal government's commitment to assist small and medium size businesses adapt to new technologies, to produce new goods, to be innovative, to reduce costs and to increase their productivity.

Through this program we are working with stakeholders in the banking industry to foster a prosperous economic environment in Canada where businesses are provided with a chance to take advantage of opportunities in the global market.

The government has followed through on the commitments we made at the doors of our constituents. We have followed through with initiatives such as Strategis, an Industry Canada interactive web site aimed at increasing support for small businesses.

For the benefit of those of my colleagues on the other side who would question this, I think it is important that they note that the federal government shares the risk of loans to small business by paying 85% of the loss sustained by the lender. The lender is responsible for the rest. The loans are made by banks or other institutions which assess the eligibility of applicants. All businesses with sales not exceeding $5 million are eligible, except for farms, and religious and charitable organizations.

The Small Business Loans Act program is not a subsidy to business. I stress it is not a subsidy to business. In 1995 when the act was revised it moved toward covering the cost of loan losses. Lenders pay for the cost of the program through a one time loan registration fee. In short the majority of these loans are repaid. To date, loans under the Small Business Loans Act are approaching $14 billion, the total lending ceiling for the program. Very few of those loans are in default.

Changing economic conditions in Canada and global economic trends, not to mention the growing demand on the program by companies have given us some indication that this program needs to be maintained. The $1 billion addition to the program is necessary at this point in time.

Providing support to this sector of our economy will enable it to continue to support jobs and economic growth which is so necessary in our communities.

Recent studies have found that the small business loans program is one of the best programs compared to other available programs. Administrative and default costs are low. The government instituted a 2% registration fee and in 1995 legislated a 1.25% annual administration fee on lenders on the outstanding balance of loans which again were appreciated. Those fees are aimed at moving the small business loans program toward cost recovery over a 10 year period.

We have heard about the support this program gives to small businesses. At the same time we know in talking to our constituents there are other ways in which they are looking for assistance. I speak of the individuals who look to what we call micro credit. That is the very, very small seed money which is necessary for a business to start up.

Every effort is being made to ensure that there is fiscal prudence in the program and that we exercise that kind of management. Earlier one of the members made reference to the auditor general's report. The minister, as he said in his statements, is giving full consideration to ensuring good fiscal management.

Small and medium size companies do not exist in a vacuum in the marketplace. They need government and private sector assistance to expand, to remain competitive, to build a solid economic foundation and to do all the things that are necessary to sustain, to grow and to have those jobs in our communities.

I support the amendments put forward by the Minister of Industry. I remind my colleagues on all sides of the House that this is an important issue for the small businesses in our areas. I call on all my colleagues to support the amendments to the Small Business Loans Act.

[Supply, February 13th, 1998]

Mr. Speaker, I listened very carefully to my colleague from the NDP. Canadians know that maintaining a strong economy and providing opportunities is really critical for social success and for the success of so many of the issues she brought to the fore.

She did give us a whole list of grievances and things that are wrong in Canadian society and in the economy, but she did not give us any suggestions as to how we can deal with those issues.

It is so very easy to give us a long list of what is wrong or what she thinks is wrong. I wonder if she could tell us what is the NPD's position in the whole series of things that would help the economy, like NDP policy on trade promotion, NDP policy on access for small business enterprises, technology partnerships. Can she tell us the NDP's suggestions to the government as to what we can do to ensure that we give the economy the kind of energy it needs in order to respond to the whole list of issues she has outlined?

[Citizenship And Heritage Week, February 12th, 1998]

Mr. Speaker, February 9 to February 15 is citizenship week. The purpose of citizenship week is to provide Canadians with an opportunity to reflect on and celebrate the privileges and responsibilities of Canadian citizenship.

This week the Department of Citizenship and Immigration will be recognizing Elizabeth Saveta Milojevic, a constituent in my riding, for her outstanding work in providing assistance to refugees on their arrival in Canada. Ms. Milojevic's work exemplifies the humanitarian and generous spirit of Canadians.

On behalf of the constituents of Etobicoke—Lakeshore I congratulate her for upholding the values of Canadian citizenship.

[Middle East, February 9th, 1998]

Mr. Speaker, I am pleased to join in the debate on the possible intervention of Canadian troops in the military strike against Iraq.

Yesterday President Clinton requested Canada's support in this initiative by way of transportation and search and rescue.

The intervention of our military forces in this situation is of grave concern to all Canadians. I am pleased the government has decided to have a debate on this crisis.

Throughout our history Canada's relationship with the United States has been based on partnership and co-operation. We have been supportive of our friend and our neighbour. In 1991, as a part of the United Nations contingent, Canadian troops provided logistic support in the gulf war against Iraq and Saddam Hussein.

We are a humanitarian nation and historically we have participated in the solving of crises in the world through peaceful measures. Our humanitarianism and our strong commitment to peace have enabled us to be a model to the world.

This is the 50th anniversary of the universal declaration of human rights, and in this year we see a leader trampling on the human rights of his people.

The situation we are debating tonight is also about human rights. Canadians place a high value and have respect for individuals and their right to live in dignity. To act contrary to this value concerns many Canadians. We understand the frustration in dealing with Saddam Hussein and his chemical and biological weapons, tools of mass destruction, refusing to follow through on the UN security council resolution 687 of April 1991.

War is a fundamental threat to human life and every effort is to be made not to allow this threat to become a reality. Whether through the stories we hear from our parents or grandparents or through television footage or history books, we are horrified and are constantly reminded about the human sufferings of war.

In the riding of Etobicoke—Lakeshore I have constituents from various war torn parts of the globe who have expressed to me the horrors of war and its effect on their lives. They have experienced firsthand the consequences of war, the anguish, the tremendous pain and the suffering of families.

A decision to use military means to solve the problem of Saddam Hussein is not to be taken lightly.

On my recent visit with the Standing Committee on Foreign Affairs and International Trade to Bosnia I witnessed the environmental degradation that war brought to that nation. It will take some time before the three million or so land mines are removed from that country.

From December 2 to December 4, 1997 Canada took leadership on the banning of land mines. We recognize that these weapons of war cause great physical and emotional harm to persons who have been victimized by them. We know that hundreds of civilians were adversely affected by the gulf war in 1991. At present many are grossly malnourished and live in inadequate conditions as a result of the embargo.

The consequences of war are real and they can be averted through the actions of nations. It is the responsibility of the international community to take leadership in finding non-violent means to resolve crises in the world.

It is Canada's responsibility to provide moral leadership. Our nation can play its part by being tenacious in seeking out and exhausting all channels of foreign diplomacy under the auspices of the United Nations. This entails looking at the wide range of possibilities from the perspective of government and the perspective of the non-governmental agencies.

Taking lessons from Mahatma Gandhi, Dr. Martin Luther King addressed conflicts in a peaceful manner.

Peace in the Middle East has been at the forefront of Canadian foreign policy. We have been working toward peace in that region through non-military means. We do not know of the far-reaching consequences of a military strike against Iraq to the peace process in that region. Nor do we know whether military action will achieve the desired result: ridding the world of Hussein and his weapons of mass destruction.

We know about the issue of compliance, allowing the inspectors to get into the areas where weapons of destruction are kept. Maybe we should be looking at an avenue for some other set of inspectors to participate.

I ask whether we have used up all peaceful resolution to this conflict. Have we used up all means at our command? Have we participated in every measure that is available to make sure that we deal with the crisis in our midst? War is costly and we must clearly examine the price before taking action.