Madam Speaker, I am pleased to have an opportunity to speak in the debate this evening. I listened with interest when the hon. member for Broadview-Greenwood, the Parliamentary Secretary to the Minister of Industry, made his presentation.
I must say from the outset that for many years I have listened to my hon. colleague from Broadview-Greenwood and I have learned from much of what he has had to say. I have appreciated the sincerity he has always brought to the debate. I appreciate his personal commitment to small business and the funding plight it faces. I have never heard a more pathetic explanation in terms of why the government has done something.
First I want to take him off the hook. I cannot imagine that what he was saying was his own idea. I can only assume that he has been given marching orders from cabinet. As an advocate of small business funding he has stood in the House for years urging the previous government and encouraging the present government to take action. He has led the way on a number of initiatives in terms of support for small business. He has been actively involved in the development of the report called "Funding for Small Business" which had a whole set of recommendations. To make this proposal is not the kind of initiative he would take.
When I first saw Bill C-91 I was elated. I was encouraged because after years and years of the Liberals saying we had to take dramatic action to provide funding for small business here was the opportunity. I read the bill. I suggest we should make another name change.
The bill at the moment is entitled "an act to continue the Federal Business Development Bank under the name Small Business Bank of Canada". Probably a more accurate title would be an act to continue the Federal Business Development Bank with an inadequate mandate, with a pointless mandate, with a wimpy mandate. We could use whatever word we like because in my judgment we have missed a real opportunity, looking at Bill C-91.
At the moment we are talking about the name change. Most members of Parliament were elated when they saw that the government had listened to the committee and had decided to call the Federal Business Development Bank the Small Business Bank of Canada. We could hear cheering from coast to coast to coast. We could hear small business organizations, chambers of commerce and boards of trade saying that finally the federal government had acknowledged the fact that something needed to be done in the country to provide funding for small enterprises.
I am talking about the kind of enterprise that requires a $10,000, $20,000, $50,000, $75,000 or $100,000 loan. All of us have countless cases on our desks that we have worked on over the years. We know small enterprisers, small entrepreneurs or small business people have a difficult time obtaining capital for their operations, to start a new venture or to expand a venture. If they need $20,000 they might as well forget about it because they just cannot go to the traditional lending institutions, the big banks.
We are not here to assist the big banks. Headlines the last few days read: "Banks on track to record profits. The earnings for the first half of 1995 exceed even last year's $4.25 billion pace". In other words, the chartered banks are doing just fine. As a matter of fact they have never done so well. They can take care of the large enterprises, traditional enterprises and so on.
However, we are not here to facilitate the chartered banks. They make profits for their shareholders and that is it. We understand their mandate. We are here as members of Parliament for something else. We are here to provide opportunities for that job creating sector of the economy called the small business sector.
In my judgment, having looked at Bill C-91 for many days, clause by clause, we have missed an incredible opportunity. Part of the opportunity we have missed is betrayed by what the government is now asking us to do. It said it first came up with a winning idea based on the recommendations of the committee to call the FBDB the small business bank of Canada. I say, right on, government. It has done the right thing. However, it now says: "Hold it, we want to change that. We are going to call it the development bank of Canada". What does that mean? What kind of a signal does that send?
By changing the name of this bank, a tremendous cost will accrue to change every bank sign across the country, every letterhead, envelope, and all kinds of other things. It is going to cost hundreds of thousands of dollars, perhaps even millions, to call it the development bank. We do not need another development bank. We have the large chartered banks. We have other federal lending institutions that are able to provide that kind of capital. We need something to assist the small business sector. The name the small business bank of Canada would indicate a new initiative or a new direction or a new mandate for the FBDB. God knows it needs it.
However, according to the legislation this is the purpose of the bank. It reads: "The purpose of the bank is to provide Canadian entrepreneurship by providing financial and management services-in carrying out its activities. The bank must give particular consideration to the needs of small and medium size enterprises".
I have read wimpy legislation and legislation that meant absolutely nothing and this legislation says absolutely nothing. It states that the bank will give some consideration to small and medium size businesses. Well big, bloody deal. What does that mean? What kind of a mandate does that give the bank? What requirements does it give the bank? Absolutely none.
What was going to be called the small business bank of Canada and not called the business development bank of Canada will be just like the Royal Bank of Canada or the Canadian Imperial Bank of Commerce. It will be lending to the very secure borrowers, the larger businesses and so on. Those small entrepreneurs and small business people will still have to be scraping and searching to find capital for their new enterprises. This is wrong. This is a missed opportunity.
I wonder if there is any sensitivity to the fact that we have to encourage the bank to carry out a fair lending practice across Canada so that one region does not benefit over another. Acknowledging that 85 per cent of the new jobs in the future are going to be created by small businesses, will that same business be created in the eastern, central and western part of Canada? No, not with this legislation. Every single cent of this new bank could be put into one province, into one region, into a few cities. Is that the kind of bank we want? Absolutely not. It is a disgrace and a disappointment.
I do not hold my hon. friend from Broadview-Greenwood responsible for this wimpy initiative. I hold the government and the cabinet responsible. I am pleased to see that representatives of the cabinet are here because they have not only done a disservice to the small enterprises of Canada, but they have done a disservice to the incredibly excellent work done by that committee which worked hard for months on end to incorporate diverse points of view and had an excellent set of recommendations. Then the cabinet and the minister said: "We don't care about the work you have done. We don't care about the research that has been done. We don't care what the witnesses said. We want to simply put our stamp on this legislation". That is wrong.
I do not think this is a good piece of legislation. I do not think this is a good amendment. When I vote later tonight I am not going to be voting to do away with the name the small business bank of Canada and replace it with the business development bank of Canada. It is wrong and bad. It sends the wrong signal. It says we do not care about those enterprises that create jobs, that
we want to continue to support the GMs, the Nova Corporations, the big corporations.
I know my friend across the way, the member for Broadview-Greenwood, was making a valiant attempt to explain the government's initiative when he said that the small business title limits and restricts loans, that the government wants to encourage the leading edge technologies to seek funding through this federal bank. So they should.
The fact that small business does not exist in the present name does not preclude small businesses from seeking loans. Calling it a small business bank does not preclude a medium size business from seeking loans. We will do the entrepreneurial sector of Canada a disservice if we pass this amendment.
I call on my colleagues from all sides of the House, from the Bloc, from the Reform and particularly those members of the government that have some sensitivity to small business and some respect for the work of the committee, to give some respect to the people that come into our offices day after day seeking capital to assist their small business enterprises. In other words, listen to the people just once.