Mr. Speaker, I listened very carefully to the hon. member. What caught my ears was his comments about small business being harassed by government bureaucracy.
He mentioned that 20 per cent of energy went to fill out government forms and what not. He also mentioned that small businesses provided jobs on a local level. I could not agree with him more. If we want to kickstart the economy, if we want to stimulate the economy, we have to help small and medium sized businesses stimulate the economy and create jobs. Then I think we will see the recession behind us.
In canvassing my riding of Parkdale-High Park, which is in the city of Toronto, the complaints I get from small businesses are about the lack of co-operation they get from the banks. Yes, I get some complaints about bureaucracy or red tape, but if they want to modernize their plants and expand to export their products-and he mentioned such products as doors, windows, et cetera-they go to the bank and the bank refuses them capital loans. Under the Small Businesses Loans Act small businesses can borrow up to $250,000 and 90 per cent of the risk is guaranteed by the federal government. Even with that motivation, that stimulus, the banks are not co-operating.
Just yesterday an angry constituent with a small business in real estate called me. He had a client who used to pay him by cheque every month, a $1,000 cheque he would deposit in the bank. The service charge for that was 75 cents. The other day he was paid in cash. He took the cash to the bank and the bank had the gall to charge him $2.20. The principle is that small businesses get angry because of this kind of attitude on the part of banks in Canada.
Is it just businesses in Toronto, businesses in my riding, that have these problems with banks? Or, does he experience the same difficulties with the banks as do small businesses? If so, would he have any recommendations? How can we get after these banks to co-operate in stimulating the economy and not throwing roadblocks in the way of small businesses?