Mr. Olio@
Let me say at the outset that I support the principle of this legislation. Some hon. Members have criticized the advisability of proceeding by means of grants as against tax incentives or tax reductions. Let me point out, having been in business, that there is a difference between the two: Before you get tax credits you must make a profit. The purpose of this legislation is in part to share the risk. It has been said on many occasions that the Government is a partner in the profits-why not in the risk?
Having said this, may I add that I find the resolution something of a paradox. I understand from the definition the Minister gave that these provisions only apply to manufacturing or processing facilities. I put it to the Minister that most of the areas designated are four-square with the tourist industry. Nevertheless, the tourist industry is not included in the definition. I am afraid we regard the tourist industry as not being an industry at all. Mr. Deutsch of the Economic Council has indicated that new jobs will have to be found in the service industries rather than in the manufacturing industries. I put it to the Minister that there is some help already available for manufacturing industries, while no help is available to the tourist industry of this country, to bring it up to date.
DEBATES 3011
Grants to Designated Areas
We should consider the fact that Canadians and Americans will have more time and more money to spend. Despite the many natural attractions of this country they will be reluctant to spend more of these dollars here until our facilities have been improved and brought up to date. Our operators do not have the money to make the necessary improvements. Consider the facilities which are available in New York State where the tourist industry has now become an important full time industry. To cater efficiently to the needs of tourists, local help is necessary, and this is a field which can probably be developed to even more profitable advantage than the relocation of manufacturing and processing.
I have no criticism to make of this measure. I think it will help the general economic situation. But I should like to call attention to the fact that the Government has neglected to include the tourist industry in its definition, and with great respect I suggest the Department of Industry should take another look at this industry, bearing in mind that it may be comparable in employment opportunities to the manufacturing and processing industries in the areas concerned.
Subtopic: PROVISION FOR PAYMENT OF DEVELOPMENT GRANTS IN DESIGNATED AREAS