Summaries of the April 23, 29 and 30, 2020, Standing Committee on Industry, Science and Technology

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List of abbreviations

AAFC
Agriculture and Agri-Food Canada
BDC
Business Development Bank of Canada
BQ
Bloc Québécois
CEBA
Canada Emergency Business Account
CEWS
Canada Emergency Wage Subsidy
CFIA
Canadian Food Inspection Agency
CPC
Conservative Party of Canada
CRTC
Canadian Radio-television and Telecommunications Commission
CanNor
Canadian Northern Economic Development Agency
DOJ
Department of Justice
DP3T
Decentralized Privacy-Preserving Proximity Tracing
EDC
Export Development Canada
GAC
Global Affairs Canada
GPC
Green Party of Canada
ICA
Investment Canada Act
INDU
Standing Committee on Industry, Science and Technology
IRAP
Industrial Research Assistance Program
ISED
Innovation, Science and Economic Development
LPC
Liberal Party of Canada
MIN
Minister
NDP
New Democratic Party
PIPEDA
Personal Information Protection and Electronic Documents Act
PPE
Personal Protective Equipment
RDA
Regional Development Agency
RRRF
Regional Relief and Recovery Fund
SHRD
Scientific Research and Experimental Development
TBS
Treasury Board Secretariat of Canada

Committee Report – April 23, 2020

Name of Committee: Standing Committee on Industry, Science and Technology
Prepared by: Gaétan Champagne, Parliamentary Affairs, ISED
Date and Time: April 23, 2020 11:00 a.m. – 1:00 p.m.

Topic of Meeting

Members in Attendance / Membres présents

Witnesses: 11:00 a.m. to 12:00 p.m.

Innovation, Science and Economic Development:

Department of Foreign Affairs and International Trade (International Trade)

Witnesses: 12:00 p.m. to 1:00 p.m.

Innovation, Science and Economic Development:

Department of Foreign Affairs, Trade and Development

Summary / Sommaire

The INDU committee met today via Videoconference to hear from the Minister of Small Business, Export Promotion and International Trade as it began on a study into the Government’s Response to the COVID-19 Pandemic. Minister Ng was accompanied by Senior Officials from both Innovation, Science and Economic Development (ISED) and Global Affairs Canada (GAC).

Technical issues delayed the scheduled beginning of the meeting by approximately 20 minutes.

At the outset of the meeting, Michelle Rempel-Garner raised an issue concerning member of the Green Party participating at this meeting. The Chair explained that a member of the Liberal Party would be sharing their time with the Green Party representative (Paul Manly).

Minister Ng delivered a short opening statement and was the only witness who did deliver a statement.

Following her statement, Gord Johns (NDP) raised an issue with the Minister leaving at noon, noting that this would result in the NDP losing their opportunity at directing questions towards her. The Minister agreed to stay longer than her allotted time.

A number of topics were raised during the meeting.

The meeting was divided into two panels, the first panel consisted of the Minister with her officials and the second panel consisted of the departmental officials.

The unedited transcript of today’s meeting will be forwarded once it is available.

Panel 1 (11:00 a.m. to 12:00 p.m.)

Michelle Rempel-Garner (CPC) (1st Vice-Chair) began her question time by noting the time lost to technical issues and also noted that the Minister of Industry has yet to appear before the INDU committee and commented that this is “completely unacceptable”. Ms. Rempel-Garner then moved a motion that the Minister appear before April 30th on the date that would be at his convenience. Debate on this motion followed. Ms. Rempel-Garner noted that she would be available at whatever time would work for the Minister. Nathaniel Erskine-Smith (L) noted that the Minister should appear “next week”. A recorded vote on the motion was held and the motion was adopted on division (10 - Y / 1 – N).

Following that vote, Ms. Rempel-Garner asked for consensus from the committee that INDU commit to holding two meetings next week on both Tuesday and Thursday, regardless of whether the HoC holds a virtual sitting during the same time that INDU will meet. The Chair committed that she will ensure that INDU will hold two meetings, though acknowledged that due to limited technical capability, this may not be possible.

Ms. Rempel-Garner asked the Minister a series of questions on whether the Government has started to remove the current mass isolation measures in a safe and staged approach and when will the Government table a plan to re-open the economy? The Minister responded that the Government is focused on flattening the curve and will keep working to assist businesses. Ms. Rempel-Garner followed up by noting that a plan to re-open the economy is needed, and continued to ask on when would that plan be forthcoming - and whether there is there any timeline?

Paul Manly (Green Party) who was given time by the Liberal Party noted to the Minister that the issue of rent payment with small businesses is a going concern and asked the Minister if there is plan to assist small businesses with their rent.

Sébastien Lemire (BQ) (2nd Vice-Chair) commented that the Independent Federation of Small Businesses noted concerns with cash flow and some businesses being inadmissible to some of the existing benefit programs and noted that there are a number of holes in the safety nets and asked when details of the small business benefit programs would be available. The Minister noted that the Quebec RDA and the Community Futures Program have received increased funding.

Simon-Pierre Savard Tremblay (BQ) followed up with the same line of questioning as his BQ colleague, Mr. Lemire.

Gord Johns (NDP) noted issues with many restaurants indicating that they are not expecting to re-open mostly due to issue with rent payments coming due. Mr. Johns commented that these businesses need to know when the Government and the Provinces will have a deal in place to assist restaurant owners - not so much with loans but with subsidies. The Minister responded that she understands the urgency of this issue. Mr. Johns noted that “Gross Revenue” should be the measurement by which benefits are determined. The Minister responded that the Government will continue to listen to businesses and the Government continues to works on this.

Tracy Gray (CPC) followed up with more questions on when the economy is expected to re-open and what is the Government’s plan. Ms. Gray commented that other countries are farther ahead than Canada with respect to the opening of their economies and asked whether the Government is following these “best practices” and studying other models. Ms. Gray followed up with questions concerning work between the Federal Government and the Provinces and Territories with respect to testing and test kits.

Ali Ehsassi (L) asked the Minister to express her concerns for the hardships that small businesses are currently undergoing. The Minister responded that moving too quickly could result in a resurgence of the virus and that job #1 is to halt the flow of the virus and that the Government is trying to save businesses, save jobs and keep Canadians safe.

Panel 2 (12:00 p.m. to 1:00 p.m.)

Earl Dreeshen (CPC) spoke of the importance of having a “relaunch strategy”, commenting that this is something that is critical and remarked that small businesses know how to social distance. Mr. Dreeshen asked the ISED Deputy Minister to explain when the Government will provide tangible liquidity measures to help small and medium sized businesses and how much help can they expect to see? The ISED Deputy Minister (Simon Kennedy) responded that this was a question better directed to Finance, though he did note that the Government is working closely with the BDC. Mr. Dreeshen followed up with a question concerning Agricultural businesses.

Emmanuella Lambropoulos (L) commented that many businesses in her riding are happy with the measure undertaken by the Government, but are asking what other measures are being considered. The Associate Deputy Minister (Paul Thompson) responded that BDC and EDC are providing new supports including rent relief and noted that extensive efforts are ongoing between the Federal and Provincial Governments. Ms. Lambropoulos asked the GAC officials as to respond on what efforts are going on to bring in more PPE.

Simon-Pierre Savard Tremblay (BQ) asked the GAC officials whether other countries have restrictions on exporting essential equipment. The GAC officials acknowledged that other countries have put restrictions in place.

Gord Johns (NDP) noted that 49% of small businesses with staff of less than 5 are not eligible for CEBA (and referred community municipal officials as an example). Mr. Thompson responded that exclusions are for Federal officials only and at Mr. Johns request committed to following up on his behalf.

Jeremy Patzer (CPC) asked the ISED Deputy Minister whether there are any parts of the supply chain at risk of disruption. Mr. Kennedy responded that this is being tracked closely and disruptions are minimized. Mr. Patzer wanted to know where there are other issues with the supply chain. The ISED Deputy Minister noted shortages and challenges with the manufacturing of PPE. Mr. Patzer asked Mr. Kennedy to table a report on the work that has been done between the Department and manufacturers who are interested in re-tooling or volunteering to assist. Mr. Patzer also asked whether the Government has given the department any direction on a plan to re-open the economy.

Majid Jowhari (L) followed on the issue of PPEs and asked both the ISED Deputy Minister and the GAC Minister questions. Specifically to GAC, he asked for example of partnering with other countries. To the ISED Deputy Minister, he asked for the criteria and the assessment templates that potential manufacturers would need to follow.

Michelle Rempel-Garner (CPC) (1st Vice-Chair) followed up on the series undertakings that were generated during the Supplementary B appearance in late February and asked whether the responses had now been tabled with the committee (they had) and whether the ISED Deputy Minister finds it acceptable that it took 3 months to table these responses. The Deputy Minister confirmed that it is always his intention to respond as quickly as possible.

Nathaniel Erskine-Smith (L) had questions concerning eligibility criteria for CEBA, and asked ISED to explain the rationale for the $20,000 threshold. Mr. Thompon responded that this issue is being discussed with Finance. Concerning digital contact tracing, Mr. Erskine-Smith asked for an update on where the Government is at, noting that he had yet to see a clear plan. Mr. Kennedy responding that the department is working closely with Health Canada and the provinces. Mr. Erskine-Smith asked whether the department could provide a backgrounder on what has been done? Mr. Kennedy responded that this could be provided. Concerning testing, what is goal for tests per day? Mr. Kennedy responded that this question would be directed to Health Canada.

Simon-Pierre Savard Tremblay (BQ) concerning the business credits offered by the BDC, has the Government considered a debt crisis and is a solution being considered. Mr. Thompson responded that there have been many measures that have been taken and the Government is working with many stakeholders and as of now the Government is focusing on loans and the benefit programs such as the Emergency Wage Subsidy program.

Gord Johns (NDP) wanted to know what the Banks are being asked to do. Mr. Thompson noted that Banks are providing rent and loans relief. Mr. Johns also raised the issue on whether the Government is ensuring that benefit assistance stays in Canada.

Follow-up Items:

During the second panel:

Next Steps

Please note: Once the transcript of the meeting will be available, ISED will review it to properly identify all possible follow-ups.

The INDU Committee will continue its study at its next meeting currently scheduled for Tuesday, April 28th.

Committee Report – April 29, 2020

Name of Committee: Standing Committee on Industry, Science and Technology

Date: April 29, 2020

Time: 6:00 p.m. to 8:00 p.m.

Topic of Meeting / Sujet de la réunion

Members in Attendance

Witnesses: 6:00 p.m. to 7:30 p.m.

Department of Industry

Canadian Food Inspection Agency

Department of Agriculture and Agri-Food

Witnesses: 6:00 p.m. to 8:00 p.m.

Department of Industry

Canadian Food Inspection Agency

Department of Agriculture and Agri-Food

Summary / Sommaire

The INDU committee met today via Videoconference to hear from the Hon. Mélanie Joly, Minister of Economic Development and Official Languages and the Hon. Marie-Claude Bibeau, Minister of Agriculture and Agri-Food as it continued on its study into the Government’s Response to the COVID-19 Pandemic. Ministers Joly and Bibeau were accompanied by Senior Officials from both Innovation, Science and Economic Development (ISED), the Canadian Food Inspection Agency (CFIA) and and Agriculture and Agri-Food (Ag-Food).

The tone of this meeting was respectful somewhat collaborative. There were not any procedural issues or points of orders that came up. The questions appeared to be evenly divided between the two Ministers and their portfolios.

The CPC members were notably interested in Agricultural issues and some Tourism issues. Ms. Rempel-Garner’s questions focused on the Oil and Gas sector.

The BQ members were evenly divided between Agriculture and Industry (Small Business) issues.

The NDP member was mostly interested in Tourism issues and had some questions related to BDC loan rates.

The Green Party member was focused on Agricultural issues.

The unedited transcript of today’s meeting will be forwarded once it is available.

Panel 1 (6:00 p.m. to 7:30 p.m.)

Minister Joly opened the meeting with brief opening comments - a few highlights:

- We are hearing that our efforts are having tangible benefits:

Minister Bibeau followed up with her own opening comments - a few highlights:

Questions

John Barlow (CPC):

Ali Ehsassi (L):

Sébastien Lemire (BQ) (2nd Vice-Chair)

Brian Masse (NDP) (3rd Vice-Chair):

Earl Dreeshen (CPC):

Majid Jowhari (L):

Tracy Gray (CPC):

Emmanuella Lambropoulos (L):

Yves Perron (BQ):

Brian Masse (NDP) (3rd Vice-Chair):

Jeremy Patzer (CPC)

Terry Duguid (L):

Michelle Rempel-Garner (CPC) (1st Vice-Chair)

Lloyd Longfield (L)

Paul Manly (Green Party)

Sébastien Lemire (BQ) (2nd Vice-Chair)

Brian Masse (NDP) (3rd Vice-Chair):

Earl Dreeshen (CPC):

Lloyd Longfield (L)

Ali Ehsassi (L):

Follow-up Items:

There did not appear to be any requested or promised undertakings back to the committee.

Ms. Joly noted to follow-up with two Cabinet colleagues on issues related to their respective mandates.

Next Steps

The INDU Committee will continue its study tomorrow, Thursday, April 30, 2020.

11:00 a.m. to 12:00 p.m.

Appearing

11:00 a.m. to 1:00 p.m.

Witnesses

Department of Industry

Committee Report – April 30, 2020

Name of Committee: Standing Committee on Industry, Science and Technology

Report prepared by: Gaëtan Champagne, ISED, 613-219-9840

Date and time: April 30, 11am-1pm

Location: Videoconference / West Block, Room 125-B

Topic of Meeting

Members and associate members in attendance:

Witness(es):

Appearing

Witnesses

Department of Innovation, Science and Economic Development (ISED)

Overview of hearing:

The tone of the meeting was mainly cordial with one exception.

Michelle Rempel-Garner (CPC) kept pushing the Minister to point to provisions within Personal Information Protection and Electronic Documents Act (PIPEDA) that would protect Canadians privacy. She made it known that she did not like the Minister’s answers.

Highlights of hearing:

The Liberals focused their questions on the following:

The Conservatives focused their questions on the following:

Questions posées par le BQ

The NDP focused their questions on the following:

The GPC focused their questions on the following:

Follow-up required/Next steps:

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