Madam Speaker, I would like to focus my remarks on Group No. 4, Motions Nos. 7 and 8.
Motion No. 7 basically wants to eliminate the pilot projects as mentioned in the bill. We have had committee hearings and consultations with the stakeholders and we have had an indication of strong support for this innovative pilot project under Bill C-53. The removal of the clause would eliminate the proposed pilot projects which respond to the express support for innovation by the stakeholders and various Senate and Commons committees. As was mentioned in committee, the industry committee would be instrumental in designing the proposed pilot program which would operate independently on a cost recovery basis.
Given these measures the government sees no reason to eliminate an element of this bill which responds to the clearly expressed wishes of various parliamentary committees.
To point out what the Reform Party wants to eliminate, I will use as an example the Merritton Lions Club. It is a very strong club which is non-profit and is volunteer based. It has a large community centre and a large community arena which are operated on a not for profit basis and which address the concerns and needs of the community.
The Merritton Lions Club raises a lot of money to put on Labour Day parades and various other functions. It does good work in the community and returns everything back to the community. As far as I am concerned, it is a very responsible and accountable group and its objective is the betterment of the community.
This non-profit group could borrow money in a pilot program perhaps to renovate the kitchen facilities which have become obsolete. This would better serve the community at large and all visiting teams at the arena and various participants that use the community centre and bowling alley. That could be a typical pilot project.
Eliminating that pilot project would shortchange us for being innovative and looking to the future on how the citizens of Canada could benefit. For that reason I cannot support Motion No. 7.
Motion No. 8 would include working capital as one of the pilot projects. It was clear from the consultations that access to working capital remains a critical problem for small business. However, during our consultations on the Canada business financing act and specifically with the stakeholders, we heard over and over again that this was not the right tool for working capital. Stakeholders, including the Canadian Federation of Independent Business, believe that the risks are too high requiring business owners and lenders to apply more due diligence and monitoring than is currently needed for loans under this program.
The CFIB stated in its presentation to the industry committee just a few weeks ago “We have long been on record as saying that working capital needs should not come under the SBLA because it could ruin the entire program. Lending for working capital purposes is a very different game”.
I want to commend the member for Mercier for her desire to continue to help small business, which is not necessarily the same for most of the parties in the House, except one. Her efforts continue to help small business get on with doing business and creating jobs for this country. I would like to thank her for her work on behalf of small business.
I am sure as a result of her amendment that further discussion needs to be done in the Standing Committee on Industry. She brings forward a very good suggestion. It is probably not the right one at this time, but the industry committee needs to look at how to provide working capital for small business in a better manner. I am sure that the Canadian Federation of Independent Business would be able to add its remarks on how that should be done.
I want to thank members for the opportunity to spend some time explaining Motion Nos. 7 and 8 which are in Group No. 4.