Mr. Speaker, I am pleased to rise today to speak to Bill C-41, because I have companies in my riding that have made use of the services of the Canadian Commercial Corporation.
Over the past 50 years, the Canadian Commercial Corporation has built up a solid record of achievement and has served Canada considerably both at home and abroad.
As Canada's intermediary in sales in public markets in other countries, the CCC provides a unique contracting and export sales service that has given Canadians a solid reputation as a reliable suppliers in the context of large scale sales to foreign governments.
Over the years, the CCC has developed contracts with foreign buyers for the sale of goods and services worth over $30 billion. These export sales have not only enabled thousands of Canadian companies, large and small, some of which are in my riding, to expand their sales, but have also helped promote high quality jobs for thousands of Canadians from British Columbia to Newfoundland and Labrador, including Quebec, which is part of Canada. These high quality jobs for tens of thousands of Canadians have been created, as I have just said, in communities across the country.
Since its inception in 1946, the CCC has developed unique expertise in the sale of Canadian goods and services in international government markets. The corporation is known especially for its role in defence and aviation orders of other governments, especially the U.S. Department of Defense, its biggest customer.
What is important to note is that today the CCC is much more than a defence specialist. In recent years, it has acquired considerable expertise in sectors of public markets that have nothing to do with defence.
The CCC is currently carrying 30% of its activities in the information technology and communications sectors, in environmental and transportation services, just to name a few. These non military sectors of foreign public markets offer great opportunities.
The CCC is now targeting foreign markets and sectors that offer potential and are of strategic importance to Canada. Besides traditional sectors such as defence and aviation, as well as the new priority sectors of information technology and communications, environmental and transportation technologies, the CCC is also focusing on oil and gas development, mining equipment, as well as housing and building.
As an organization supporting exports, the CCC helps Canadian exporters to research and get contracts through the following services: negotiation of sales and contracts, access to pre-shipment export financing by business sources and contract performance guarantee to foreign buyers.
In recent years, the CCC has established many contacts and has acquired a wide experience in foreign government supply markets. When the CCC acts as the main contractor in international markets, Canadian companies, as subcontractors, benefit from its expertise. The CCC provides Canadian exporters advice on international contracting, help during negotiations and support in dispute settlements.
Quite often, buyers from foreign governments want a contract performance guarantee that may be difficult to provide, particularly for SMEs.
This is very important, because the CCC counts the bulk of small and medium businesses among its clients. As we know, these are what keeps Canada, Canada's economy, rolling, and they are playing an increasingly large role in international markets.
In addition to the credibility offered by the CCC to foreign buyers, the corporation can also provide the financial guarantees demanded by government purchasers, thus conferring upon Canadian suppliers an advantage over the competition on the international level.
For example, under the progress payment program, small and medium businesses may draw against lines of credit of up to $2 million in connection with a project, at a preferential rate of interest.
According to surveys of CCC client companies, these attach a great deal of value to the services they receive. The corporation has determined that a value could be set for invoicing these services, based on the value to clients.
As the Parliamentary Secretary to the Minister for International Trade has said, the corporation has already put into place a cost-recovery mechanism for certain of its services for the expansion of international markets.
The method proposed in this bill would be based on this experiment and would set a fee schedule reflecting a fair balance between applied costs and value received.
Even if approximately 70% of the corporation's clients are small and medium businesses, the new fee schedule will allow it to expand its clientele of such businesses with complete independence.
This bill will enhance the tools and trading flexibility the CCC requires, and will enable it to work effectively on behalf of Canadian exporters in foreign public markets.
The bill enables the corporation to set reasonable charges for its services, to become more self-sufficient and to expand its client base. Thus the CCC will be in a position to support higher levels of export by Canadian corporations, which will have the effect of increasing employment and adding to the wealth these corporations provide to Canadians.
I might cite the examples of three companies, clients of the CCC, that are located in my riding and have created jobs within that riding.
The first one is Anachemia Canada Inc. which is located in Lachine, Quebec. This company provides hazardous waste management and recycling services. It came into contact with the CCC a number of years ago through an original contract with CIDA. Since then Anachemia has done business through CCC in the United States, Europe and Australia. This is a success story. It is a success story for the company, the client, and also a success story for CCC and for Canada.
Another company is Canada Allied Diesel or better known as CAD, which is also in Lachine and is an example of CCC's expansion into new areas like transportation. CAD works on refurbishing railway cars and is currently working with CCC on a CIDA project with the Tanzanian Railway Corporation.
The last company in my riding that I would like to mention is Invensys Performance Solution. CCC is supporting Invensys on a $9.5 million U.S. contract for an airport security and safety program in Bolivia.
Those are examples of how CCC is a success and how the amendments in the bill will improve its efficacy and its efficiency.