moved that Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, be read the second time and referred to a committee.
Mr. Speaker, I rise today to speak to Bill C-309. This proposed legislation looks to take the current federal economic development initiative for northern Ontario, otherwise known as FedNor, and convert it into an agency.
Before I go into the details why I believe FedNor ought to become a full-fledged government agency, I would like to discuss two main facts about the Canadian economy.
The economy of Canada is not one homogeneous entity. Different regions face different challenges. They have different growth rates, different strengths, and different weaknesses. Each region is unique and deserves special attention so that it can flourish and allow its residents to provide for their families and to live a decent and prosperous life.
Contrary to what the Conservative government believes, the federal government does not have an important role to play in promoting and encouraging the full potential of Canada's regions.
Having said this, there are a number of steps that can be taken by all levels of government to promote regional economic development.
First, there must be a fundamental recognition and understanding of the fact that different regions require different policies to develop their full economic potential. One size does not fit all when it comes to economic development. It is only by understanding that regions have different economic potential, that the essential building blocks can be put in place to ensure that full advantage can be taken of all available resources.
Second, the structure or, perhaps more important, the people who operate the structure have to understand the impact that they have on the economy, so that adjustments can be made on an ongoing basis to ensure that the economic realities of that region are being properly addressed. These changes are most effective when they are proposed by local people who are most directly affected by the impact of their recommendations.
So, having the structure in place is important. What is crucial, however, is that the people in charge understand what is happening in the regional economy. That being said, I would like to talk about the programs we have in place at this time.
Prior to the announcement made in budget 2009, the government had four regional economic development organizations. There were three agencies, which were the Atlantic Canada Opportunities Agency, better known as ACOA, Canada Economic Development for Quebec Regions, better known as DEQ, and Western Economic Diversification Canada.
Then after the 2009 budget SODA was added, Southern Ontario Development Agency, as well as the new regional economic development agency for the north. Now we have five different entities. One is a program and the rest are agencies. Why is northern Ontario different than all the rest?
Let us look at the difference between a program and an agency. The minister will tell us that words “program” and “agency” have no effect under Canadian law. He is right. Under Canadian law, there is no difference, but as far as Parliament goes, there is a difference. What separates FedNor from its counterparts is that each of the counterparts has an act of Parliament establishing it as a separate entity and outlining its mandate and powers, while FedNor does not.
The status of an agency in legislation means that the federal government requires the consent of Parliament to change or alter the agency's powers or its mandate.
In essence, a program can be changed, manipulated or even eliminated on a whim. We know the Prime Minister has often spoken of eliminating regional economic development programs and agencies. He does not believe in them. This is something that really worries me, losing everything we have because the Prime Minister decides he does not believe in them any more.
This bill would protect us from all governments, future and present. We know the present one does not believe in it, but future governments have to be protected as well.
The regions have their differences and those differences have to be respected. The Conservatives will claim that the free market system will take care of everything. We know that is not the case. We have just gone through the last six months, which have been outrageous, and it really has not worked for us. If we go with a free market system as the Conservatives would like, we would end up with some major centres in Canada, perhaps five large urban centres where the mass of the population would live and the regions would have nothing. There would be a vast waste land in between them. Everything would gravitate to where it is cheapest for large providers to provide services. That is not my Canada.
One of the other arguments that comes up is financial reporting. Currently FedNor's performance and financial reports are included as a chapter of Industry Canada's reports on plans and priorities and departmental performance reports. It is not a big chapter.
As a separate agency, under the Financial Administration Act, FedNor would be required to file detailed financial and performance reports for tabling in Parliament. The reports on plans and priorities would outline the agency's objectives, programs, spending plans and departmental performance reports, which evaluate whether the objectives have been met and provide the details of previous spending.
Let me elaborate on what that means in simpler terms. As an agency FedNor, would file estimates. Estimates give full details of what is planned for the coming year. From this, one can take a much closer look at the list of proposed funding and activities that are being planned and managed for the upcoming year, so they have a good vision of where the economic development is going in a certain region.
As a program on the other hand, the details become lost as part of the budget of Industry Canada. This means that as it stands now FedNor, as a program, really has no details. There is no breakdown of activities. There is nothing but a few numbers which imply that the program can be played with by the Prime Minister at his will or the minister himself.
Unlike an agency, reports for a program can only be seen at year end. To add insult to injury, it takes another six to eight months before those numbers come out, if we are lucky. After year end, we have to look at the detailed compilation of expenses, activities and reviews, but that is as much as 18 months after the beginning of the process.
It is like driving a car and concentrating on the rear view mirror. We cannot really look to the future. We are seeing what is behind us all the time. With regional economic development, we really have to look ahead and see where we will go, where we want to be and what kind of programs we want to have in place.
A prime example of what I am talking is this. Recently at the industry, science and technology committee, I asked the minister for detailed estimates for FedNor for the upcoming year. When I asked for those details, he said that he could give me something called “Northern Spirit”, which is a brochure. It is very colourful, it has beautiful pictures and it has all kinds of neat stories in it. I am sure some of the members on the other side were disappointed because the pictures were already coloured in. It was a really pretty brochure with no numbers, not one. It was basically a pamphlet that was handed out. We looked at it and put it aside.
What we are looking for is estimates, something that breaks down exactly what we can expect over the next year, and then plan for it.
Another problem is that the program does not have a minister to look after that and that alone. Under the Liberals, we had a minister of state for FedNor. Since the Conservative government has been in power, there has been no minister for FedNor. That portfolio now comes under Industry Canada, and that worries me.
Just this morning, I was speaking with a municipal councillor from northern Ontario. He said FedNor has received a number of applications, but they are still sitting on the minister's desk. They are sitting there and have not been approved. From what I have heard, nearly $8 million could be put into the economy. That money is not in the economy; it is sitting on the minister's desk. I understand that industry is a large portfolio and I am sure the minster must be very busy. However, we cannot forget the smaller regions. I know he is kept busy by the auto industry and many others, but northern industries like forestry are vital to northern Ontario. It is very important that these investments be approved so they can return to northern Ontario's economy.
Something I often think about is the fact that the people of northern Ontario are not second class citizens. We are Canadians like everyone else, like all voters. So, if a program exists, it should be given the same level of respect as an agency. That is the goal of my bill.
The Conservatives said previously that they did not intend to support Bill C-309 because it would lead to an increase in costs in bureaucracy. That is nonsense. Corporate services is one of the big areas at which they look. They say that every agency will need corporate services and that Industry Canada takes care of it for FedNor. That is not true. FedNor already has its own corporate services and communications division. If it were turned into a separate agency, creating these divisions would not be an issue. Some Conservatives will also argue against the conversion for FedNor.
We know, overall, Conservatives are not known for nation-building. They do not instinctively bring people together. They are use to wedging, getting groups apart and conquering, which is one way of doing things. I am not here to judge anybody and telling them whether it is right or wrong, but that is not the way the Liberals do it. The Conservatives do not look at the big picture. Everybody does their own thing. That is not the way to build a nation.
If the Conservatives had it their way, and we have heard the Prime Minister say it before, they would leave the economy to its own devices. In light of what we have seen over the last six months, that is not always possible and I do not think it works in the long-term. That may work in short spurts in the short-term and then we get booms, but the busts are what hurts. Government does play a role in what is done in the economy.
If we left the economy to its own devices, we would see a migration of people from regions to major centres. They would migrate to a few metropolitan areas and that would be it for Canada. Canada would be very sparsely populated in between because the concentration would be in the large cities, and we can understand that.
That is not my Canada. I do not believe most Canadians want that. They want to know they have the possibility of earning a living anywhere in Canada. This is not about being in just an urban centre. It is about being everywhere in Canada. My Canada includes northern regions and rural regions. My Canada includes all of Canada.
Since the Conservatives took office in 2006, the FedNor budget has been slashed by nearly $6 million. Bill C-309 is designed to ensure that FedNor would not be subjected to further cuts or elimination altogether.
Bill C-309 is designed to promote economic development, economic diversification and job creation in communities throughout northern Ontario. A FedNor agency would demand greater accountability and would be required to report to Parliament on a regular basis.
My Liberal colleagues and I are committed to ensuring that the residents of northern Ontario are given every opportunity to develop and maintain a strong regional economy, as well as diversify strength in their employment base. Residents of northern Ontario expect and deserve the same opportunities, the same access and accountability and the same quality of service as their fellow Canadians in all other parts of the country.
Bill C-309 has received widespread support from municipalities throughout northern Ontario, including the Federation of Northern Ontario Municipalities. I trust my hon. colleagues from the three parties in the House will also support the bill based on its merits.
