Mr. Speaker, I listened carefully to the remarks made by the last speakers, particularly those made by the member for Longueuil who blamed the national debt on the Canadian federation. I also listened to the remarks made by the member for Mercier who, at the beginning of her speech, was going to blame the poverty level in the Montreal area on federalism, or I thought she would, but she stopped.
Moreover, she tried to say that the high unemployment rate was again a consequence of the federal system. Strangely enough, she forgot to mention that, even with the Canada social transfer, Quebec benefits considerably from federalism through equalization.
Many studies have clearly shown that Quebec has been able to grow within a federal system while benefiting enormously from such a system. She also forgot to mention that, through the unemployment insurance program, Quebec gets over $1 billion more.
In this last allotted day that the official opposition has during this session, it has chosen once again to talk about four bills in order to try to show that federalism does not work, that the government wants to centralize powers. In her speech, the
member for Mercier also said that the time has come for Quebecers to take complete control of their own destiny.
However, I find it hard to keep a straight face when I hear these arguments, because in their draft bill, they want their dollar to be the Canadian dollar, they want their passport to be a Canadian passport. And throughout the debate on these issues, they want to determine the scope and subject of the referendum question. They had a debate, and they told us the question would include one on political and economic association with Canada. It seems to me they want what Canada has to offer. In that case, I challenge them to do the following. Instead of wasting the 10 or 11 million dollars it cost to conduct these consultations-the hon. member for Mercier also mentioned the high poverty rate-I think this money would have been better spent on dealing with unemployment and poverty.
So we have four bills that were mentioned together in an attempt to demonstrate that federalism, as they see it, has become centralist.
I would like to discuss Bill C-76, which implements certain provisions of the budget tabled by the Minister of Finance. In referring to this bill, the opposition is very critical and says we want to centralize everything. In fact, the only condition set by the government for the Canada social transfer is the period of residence, which cannot disqualify a recipient from receiving social assistance.
The other criterion, which already exists, is maintaining the five principles of health care. At the request of the Province of Quebec and the other provinces, the government decided to group these transfers. Again, at the request of the provinces, the government gave them a set target budget, guaranteed for a period of two years. And the members of the Bloc Quebecois complain that we want to centralize powers!
I find it very hard to understand how the motion could possibly be about centralization, since in this bill and other bills, and also in our approach as a government, we have shown repeatedly that we want to decentralize powers, in two respects. The first one is to eliminate overlap and duplication. Not because it is the will of the Province of Quebec or of the Bloc. No. Because it is the will of all of Canada, all Canadians, because it will save us money. That is what we are doing.
My presentation is about Bill C-91, the bill in relation to which the National Assembly just passed a motion, as the hon. member for Mercier just said. As I will explain, I find it hard to believe how the Bloc Quebecois can construe this bill as an effort on the part of the federal government to once again centralize powers.
Canada and Quebec have entered a new phase of economic growth. The federal administration is sensitive to the globalization of markets and to the increased emphasis on competitiveness. We are redefining the federal government's approach to the economy.
The most important part of this new approach is recognizing the dynamic role that small and medium size businesses play in job creation and the creation of wealth.
This government has developed many approaches and reworked its strategy and its tools to take into consideration the key role that they play in our economic prosperity.
Bill C-91 gives the Federal Business Development Bank a new mandate. Under this new mandate the bank will be able to increase its activity in smaller loans and investments and focus more on knowledge based industries and exporters, two of the thriving forces in the global economy.
A key element of the bank's new mandate is partnership. Bill C-91 makes it easier for the bank to work in close partnership with other partners. These new closer partnerships will help small and medium size businesses and will avoid inefficient and costly overlap and duplication, contrary to what the members of the Bloc Quebecois have said.
The opposition's reaction to Bill C-91 disappoints me. The opposition claims that the objectives of this bill are to usurp provincial powers, to build a centralized state and to take considerable powers away from Quebec.
This opinion could only be based on a misinterpretation of clause 20 of this bill.
Clause 20 says: "The bank may enter into agreements with and act as agents for any department or agency of the Government of Canada or a province or any other body or person for the provision of services or programs to, on behalf of, or jointly with that body or person". I do not know how the opposition member can misread that. It is quite clear. This is not in any way an intrusion by the federal government into provincial jurisdiction. Clause 20 of Bill C-91 facilitates co-operative joint ventures with partners from the private sector as well as the public sector.
Clause 20 permits the bank to enter into agreements with other persons and organizations, including federal and provincial government departments and agencies. The authorization applies to the bank, not to the other parties involved. Let me repeat that again so members of the opposition understand. Clause 20 applies to the bank only. I think this is where they are having a hard time. It does not apply to the other parties at all. The other parties, whether they be government agencies or
provincial boards, still have to obtain proper authorization from their jurisdictional authorities before entering into any agreement with the bank.
In circumstances and situations in which a jurisdictional body must grant authorization for a partner to enter an agreement there will be no change.
Why is this change necessary? Because the wording of the previous legislation limited the bank's ability to conclude agreements with non commercial firms. In some cases, these organizations, some of which come under provincial jurisdiction, proposed to the bank itself that it help provide financial and management services.
The bank could not do anything at the time, because it lacked the legislative authority to enable it to co-operate. A lot of time and effort went into obtaining this authority. Clause 20 will eliminate all the bureaucratic red tape and will make it possible to provide more effective services, which small business can use.
Clause 20 of Bill C-91 is very technical I will admit, but it allows the bank to enter into joint co-operative agreements. Clause 20 will allow partnerships, joint ventures and even the delivery of financial assistance on behalf of other agencies subject to the banks usual guidelines.
As an example of co-operation and collaboration, the Federal Business Development Bank and FORD-Q, the body responsible for regional development in Quebec, are currently developing a strategic partnership as part of a pilot project. The object is to create a special fund which will have a leverage effect in order to support projects undertaken by small and medium size enterprises in unexploited niches.
In addition, the bank has developed strategic partnerships with agencies and departments of Quebec's provincial government. For example, the bank recently completed an agreement to develop a technology training and counselling program with le Ministère de l'Industrie, du Commerce et de la Technologie du Québec and the Professional Engineers Association of Quebec.
The bank, moreover, joined with the Société québécoise de la main-d'oeuvre to start up a program to promote and encourage women's initiatives in conjunction with a Bank of Montreal program to train and develop business women.
Together with the Maison régionale de l'industrie in Sherbrooke, the Federal Regional Development Office designed a program to advise and train new exporters. The power to establish partnerships is no different from similar provisions in legislation governing other crown corporations, including the Farm Credit Corporation and the Export Development Corporation.
I must point out at this point that the ability to enter into partnerships certainly follows one of the recommendations of "Taking Care of Business", the report which the Standing Committee on Industry released in October 1994. I had the pleasure to sit on that committee. The committee recommended that the mandate of the bank be confirmed and refocused as a complementary lender to small and medium size businesses and that it be authorized to use new financial instruments to fulfil its mandate. The two members of the Bloc Quebecois who sit on that committee were in full agreement with that recommendation.
Bill C-91 is an important element in creating the supportive environment for small and medium size enterprises across Canada which will contribute to building a long and lasting prosperity. This bill is one part of the future we are building for small businesses and for Canada's economic prosperity.
There is no doubt about the importance of small and medium size businesses to our economy today and tomorrow. Small businesses employ more than half of the Canadians working in the private sector. Since the early 1980s small businesses have created over 87 per cent of all new jobs in Canada.
Small and medium size businesses will continue to be a source of jobs and wealth in Canada. Our goal is to create a climate in which businesses will be able to continue to create jobs for Canadians, and to contribute to the wealth of the country.
We are taking action on this basis, and moving toward our goal. In 1994, we asked several groups and organizations in the public and private sectors, including the committee, how the government could create a suitable climate to foster the growth of small businesses.
Everybody agreed that small and medium size businesses have great potential to create even more jobs and wealth. Unfortunately, that potential is too often left untapped. The groups and organizations we consulted said that, in order to tap this potential, the government had to start with reducing the deficit. The first step was taken by the finance minister in his last budget.
Moreover, they told us that we must develop more efficient, more effective, and more relevant programs for small businesses. Finally, we must recognize that the government cannot, on its own, foster, in the small business community, the vitality and the growth the country needs.
On the basis of these recommendations, we outlined in our report entitled Building a More Innovative Economy a wide range of initiatives aimed at fostering the growth of small business in Canada.
In the vital area of financing, we have pressed the banks to improve their relationship with small businesses. We have taken steps to ease access to capital for innovative projects. We are refocusing federal government financing programs to fill in the gaps left by the private sector.
At our urging, the Canadian Bankers Association developed a code of conduct to help ensure accountability, understandable contracts, more efficient credit processing, and an effective method in dealing with complaints. Member banks are incorporating these standards into their own codes of conduct.
The federal regional agencies, such as the Atlantic Canada Opportunities Agency, the Federal Office of Regional Development in Quebec, western diversification, and the federal office of regional economic development for northern Ontario, have all refocused their programs almost entirely on small businesses. Federal agencies now focus on recoverable contributions and information to businesses.
At the end of the 1994 fiscal year, we amended the Small Businesses Loans Act by increasing the credit ceiling to $12 billion in order to meet the ever growing demand.
On April 1, we implemented other amendments allowing for cost recovery in accordance with our overall deficit reduction goal. These amendments will also help identify the main beneficiaries of the program.
In the next few weeks, we will table further amendments to the SBLA in order to get on with the process of recovering all program costs and make other minor changes affecting lenders and borrowers.
The review of the small business policy clearly showed that one of the most pressing problems facing small and medium size businesses is access to capital.
The review of the role and mandate of the Federal Business Development Bank was a key element of the government's efforts to improve this access.
The Federal Business Development Bank, since it started almost 50 years ago as the former Industrial Development Bank, has helped Canadian businesses respond to the changing demands of the economy through timely and innovative financing and management services. As the economy changes again, the time has now come to change the Federal Business Development Act as it stands.
The purpose of Bill C-91 is to modernize the bank's mandate. It is based on the experience and skills acquired to provide the financial and administrative leadership needed by small and medium size businesses in the knowledge-based economy, without neglecting traditional finance sectors.
The Business Development Bank of Canada will be an important source of support to small business, as it will be able to fill in what I would call the "gaps" faced by small and medium size businesses across the country.
Bill C-91 in no way intrudes on provincial jurisdiction. It does not take powers away from any province. It does, however, make this very important institution more flexible and more responsive to the needs of small and medium sized businesses for the benefit of all Canadians.
