The Honourable Prabmeet Sarkaria

November 19, 2020

The Empire Club of Canada Presents

The Honourable Prabmeet Sarkaria

Chairman: Kelly Jackson, Vice-President, Board of Directors, Empire Club of Canada

Moderator
The Honourable Lisa Raitt, Vice-Chair, Global Investment Banking, CIBC Capital Markets

Distinguished Guest Speakers
Bradley Mayer-Harman, Chair, Ontario Realtor Party Committee (OREA)
The Honourable Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction for Ontario
Jan Westcott, President & CEO, Spirits Canada

Introduction
It is a great honour for me to be here at the Empire Club of Canada today, which is arguably the most famous and historically relevant speaker’s podium to have ever existed in Canada. It has offered its podium to such international luminaries as Winston Churchill, Ronald Reagan, Audrey Hepburn, the Dalai Lama, Indira Gandhi, and closer to home, from Pierre Trudeau to Justin Trudeau; literally generations of our great nation's leaders, alongside with those of the world's top international diplomats, heads of state, and business and thought leaders.

It is a real honour and distinct privilege to be invited to speak to the Empire Club of Canada, which has been welcoming international diplomats, leaders in business, and in science, and in politics. When they stand at that podium, they speak not only to the entire country, but they can speak to the entire world.

Welcome Address by Kelly Jackson, Vice-President, Board of Directors, Empire Club of Canada
Good afternoon, fellow directors, past presidents, members, and guests. Welcome to the 117th season of the Empire Club of Canada. My name is Kelly Jackson. I am the first Vice-President of the Empire Club and your host for today's virtual event, featuring the Honourable Prabmeet Sarkaria, in conversation with the Honourable Lisa Raitt.

I want to take a moment to recognize our sponsors ,who generously support the Empire Club and make these events possible. Our Lead Event Sponsors today are the Ontario Real Estate Association and Spirits Canada, and our Supporting Sponsors are Hydro One and CAA. Our Season Sponsors are the Canadian Bankers Association and Waste Connections Canada. Thanks, also, to our Event Partner ,VVC and livemeeting.ca, Canada's online event space, for webcasting today's event.

Before we begin today, I have a few logistical items to share with you. First, if you are finding at all during the time of the discussion that your internet feed is slow, please see below and click the switch "Streams Button," and do not hesitate to press the "Request for Help" button if you are experiencing any technical difficulties. A member of our team would be more than happy to help you. It is now my pleasure to call this virtual meeting officially to order.

To begin, I'd like to acknowledge the land we are broadcasting from, and that it is the Traditional Territory of many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, the Haudenosaunee, and the Wendat Peoples, and is now home to many diverse First Nations, Inuit, and Métis Peoples. We also acknowledge that Toronto is covered by Treaty 13 with the Mississaugas of the Credit. For those of you tuning in from regions across the country today, we encourage you to learn more about the Traditional Territory on which you work and live.

In acknowledging Traditional Territories, I do so from a place of understanding the privilege my ancestors and I have had in this country since they have first arrived here in the 1830's. As farmers in southwestern Ontario, I imagine they felt a deep connection to the land, and yet likely did not recognize how that connection was built on the displacement of others. Delivering a land acknowledgement ,for me ,is an important opportunity to reflect on our human connection and responsibility to care for the land, and to recognize that to do so, we must always respect each other.

Now, for today's topic: small businesses, as we all know, are the backbone of our economy and communities. This year, those business owners across Ontario have been faced with unprecedented challenges, and the evolving COVID-19 pandemic continues to hit Main Street hard. The Honourable Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Production, is with us today to discuss the current challenges facing small businesses, and how the provincial government is responding. One example of that is the Better for People, Smarter for Business Act, which the minister just introduced in the legislature earlier this fall. It is the most recent in the government's series of red tape reduction and regulatory modernization efforts. During this time of real uncertainty, his focus remains on unburdening businesses, and getting rid of old-fashioned systems that hold back innovation, business growth, and recovery.

Please welcome Bradley Mayer-Harman, chair of OREA's Ontario Realtor Party Committee, to introduce Minister Sarkaria.

Opening Remarks by Bradley Mayer-Harman, Chair, Ontario Realtor Party Committee (OREA)
Thank you very much, Kelly Jackson, and thank you to your team at the Empire Club of Canada for putting today's event together. My name is Bradley Mayer-Harman, and I'm a realtor at Century 21 Millennium in Brampton. I'm also the Chair of the Ontario Realtor Party Committee at the Ontario Real Estate Association. I'm thrilled to be given the opportunity to introduce Minister Sarkaria today, on behalf of OREA, and our 80,000 members—in particular, my good friends at the Brampton Real Estate Board.

I would like to begin by thanking the minister for his leadership in helping to guide Ontario's small businesses through the current challenges that the province is facing, as a result of this pandemic. This minister understands that small businesses are the backbone of communities like Brampton, where I personally operate my business. He understands that small businesses are the backbone of communities right across Ontario. We saw another example of this recently, with the announcement of the Main Street Recovery Plan, which includes the Main Street Relief Grant, a $60 million-program designed to help Ontario's Main Street businesses cover the cost of PPE, to remain open and stay safe.

Minister Sarkaria has also announced that his government would be further helping small businesses overcome the unique challenges created by the pandemic, with 50 temporary regulatory changes that will help them adapt to the current business climate. Now more than ever, it is important to cut unnecessary red tape, to provide small businesses with every tool at their disposal to succeed during these challenging times.

Minister, as a small business person, who does most of my business in Brampton, I want you to know that your efforts are making a real difference for small businesses in Brampton, and right across Ontario. Ladies and gentlemen, it is my pleasure to formally introduce Ontario's Associate Minister of Small Business and Red Tape Reduction and MPP for Brampton South, the Honourable Prabhmeet Sarkaria.

The Honourable Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction for Ontario
Well, thank you very much, Bradley. I really appreciate that very kind introduction, and this opportunity to speak before all of you. And I want to also take the opportunity to thank the Empire Club, and Kelly, for the introduction, and similarly, for all the great work, and help in putting this event together, to bring forward this opportunity.

I've had the opportunity to speak to so many businesses all across the province. But I'd really like to take a moment to acknowledge everyone that's joining us today, you know, reaching out virtually, when we can't connect in person. It's really important, I think, right now. It means a lot to me, and I hope it does to you as well. Coming together to share experiences and explore ways we can support each other is a powerful response to the isolation of COVID-19. Sadly, it's really affected all of us wherever we live.

As a son, a husband, and a new father, my heart really breaks for the lives this pandemic has taken, and the families it has devastated. And as a member of the government, you know, I recognize that I'm in a privileged position. One where I can help protect the people in my community, and across the province. It's something that I don't try to take for granted. It's why I talk to people every single day, to hear their concerns, and learn what I can do to help them through this terrible time. To see what our government can do to really get them through this very difficult period of time. Protecting people's lives will always come first for our government, and supporting the businesses that are the source of our livelihoods is a close second.

In my portfolio as the Associate Minister of Small Business and Red Tape Reduction, my role is to support small and Main Street businesses that we all so desperately depend on. It's a delicate balancing act, one the small business owners on the line can probably relate to. I've had conversations with small business owners all across the province. But more importantly, I am, actually, the son of two Ontario small business owners. I have experienced the worries, the pressures, and the juggling it takes to run a small business. Keeping so many balls in the air takes foresight and flexibility. You know, when you're responsible for supporting your family and much of your community, you need to plan for each and every scenario.

When I was growing up, as a son of, you know, two small business owners, you know, a family of immigrants, I really, truly believe that a province like Ontario is the only one that could really have afforded me the opportunity, and my family the opportunity. I believe that, you know, this province gives everyone an equal opportunity to succeed. And as we come out of this pandemic, it's really an opportunity for us to strengthen the recovery, strengthen the fundamentals on which small businesses are founded on. And we need to make sure that we can continue that dream for generations to come. Because that is the most important thing that we can do for small businesses, for the future generations of our province, as we look into the future.

Now, in the dozens of roundtables I've hosted before and after this pandemic, I've seen my family's story in the experience of the job creators, the entrepreneurs trying to grow their business, and struggling to really keep the lights on. It reminds me of every single decision that comes before small business owners. But I recognize that, although, I have these experiences, none of us could really have expected the impact that COVID-19 has really had. You know, it's taken the lives of loved ones, while threatening the social fabric of the communities we so dearly cherish. Woven into these communities are the thriving Main Streets, that bring us together to work, shop, eat, and play. There you'll find the small businesses that serve diverse needs. The ones featured in holiday parades, or silkscreened on sports jerseys. The gems that attract all the tourists and generate all the Instagram buzz. These are the businesses that bring character and pride to our communities. And they've been suffering from unforeseen closures, to unexpected, and seemingly unrelenting, demands. And they have borne an unfair share of COVID-19's economic burdens.

Yet through it all, they have never given up. I'm sure we've all seen the examples of this throughout our own communities across the province: retailers closing their doors to do businesses, curbside services, limiting in-person visits to physically distance in some tight spaces, restaurants building new patios, redesigning their menus for takeout. Small businesses have gone above and beyond to keep serving the people of Ontario, often at a great cost to themselves, their employees, and their families.

When I look around my community, I'm humbled by their selflessness, and inspired by their ingenuity. Of course, no amount of hard work or dedication can resist the effects of a global pandemic. So, while many small businesses have managed to sustain their operations, none have gone back to business as usual. Main Streets all over the province are losing traffic. And it's draining the livelihoods of our families, and the vitality from our communities. It's something our government takes very seriously. And we will not rest until we shore up our small businesses through the second wave, and set them up for success beyond it.

As we look to the future, you know, a lot of people underestimate the impact that these small enterprises have, or can have, on our economy. And in 2019, Ontario's small businesses employed about 2.4 million people, and accounted for 98 percent of all businesses in the province. That represents about 30 percent more, 36 percent, more than a third of our total employment. They strengthen productivity, link supply chains, and give rise to countless innovations. Eventually, many of them will grow into the game-changing companies our province is known for worldwide. Our economy, our communities, and our way of life are strengthened by the diversity and output of small businesses. And our government is determined to equip Ontario's small businesses to survive this pandemic while preparing them to thrive on the other side.

Through more than a hundred virtual roundtables and discussions since the start of the pandemic, I have been in constant contact with small business owners, employees, entrepreneurs, and associations. I have heard their calls, to both support their survival, and lay a foundation for future growth. It's why our new budget, the first delivered during a global pandemic, was built on three supportive pillars. The first is to protect our health and safety, the second is to support our people and economy, and the third is to recover our economic standing and the way of life.

Ontario's Main Street Recovery Plan rests on these strategic pillars. It will help to support small businesses, and the people that count on them, through this critical period of time, and it will provide them with modern services and tools, so they can recover and rebuild. The plan is a part of the $45 billion in support being made available over three years, in the 2020 budget. This support includes more than $900 million in urgent relief, through our partnership in the Canada Emergency Commercial Rent Assistance program, and a pause on evictions for tenants eligible for the program. The program has helped about 64,000 small business tenants that have employed close to 617,000 people across the province.

As we've entered the second wave of the pandemic, we've proposed to extend this temporary ban on evictions. And in addition, the federal government has announced plans to replace this assistance program with a Canada Emergency Rent Subsidy. It's expected to provide rent and mortgage support until June 2021 for qualifying small businesses, so they can maintain their physical presence now, and into the future.

Since the onset of the pandemic, we have made Ontarians' health and safety our top priority. As wave two has descended on us, we've released Ontario's new COVID-19 response framework to support people, families, and job creators, in a safe and targeted way. In my home region of Peel, which is now in the control stage, we're providing additional public health supports that include increased testing, contact management, and hospital capacity. As we work together with doctors, health experts, and people all over Ontario to turn the tide on the second wave, we are standing by the businesses in these communities. To help businesses that were in regions with modified stage two restrictions or moving forward in areas categorized as control or lockdown, we are providing up to $300 million to cover their property taxes and energy bills. We want these small businesses, and others across Ontario, to be able to keep the lights on through the worst of this dark period.

We also want them to look forward to a brighter future ahead. So, beyond our support during the pandemic, the 2020 budget has proposed new tax measures, to help small businesses to recover and grow beyond it. Starting in 2021, we would allow municipalities to provide a property tax reduction for their small businesses. And our government will consider matching those reductions, to further reduce taxes on small businesses. Depending on how many of our municipal partners take us up, this could provide as much as $385 million in relief to Ontario's small businesses by 2022. With both property tax reductions, a bakery, for example, in Toronto, with an assessment value of $1.5 million, could save $10,500 in property taxes, annually. The budget also features the Employer Health Tax Plan for small businesses. In March, we expanded the EHT exemption for 2020 from $490,000 to a million, and we are now proposing to make this change permanent. It would reduce the Health Tax on a restaurant with a $700,000 payroll from about $4,000 to absolutely zero.

We want our small and Main Street businesses to know that we will be there for them every step of the way, from protection to recovery. That's why we've developed Ontario's Main Street Recovery Plan. It delivers a comprehensive package of legislation, funding programs, and services, that will help more small businesses to operate safely, adapt to new demands, and pursue promising opportunities. First, we're committed to exploring options to permanently allow licenced restaurants and bars to include alcohol with food, as part of a takeout or delivery order. This would enable them to maintain the new revenue streams the government has opened up to them through the pandemic, and it would help them plan for opportunities to grow for the future.

Next, there's the Main Street Recovery Act, a cornerstone of the plan. It would modernize regulations to keep pace with business needs, while creating flexibility for them to innovate. Through this act, we would permanently allow for 24/7 truck deliveries of goods to retailers, restaurants, and distribution centres. This would build on temporary changes made to help keep shelves stocked through the first wave this spring. It would keep supply chains moving, supporting businesses across sectors. It would reassure small and Main Street businesses that they could maintain their operations during this very difficult time, and it would give consumers greater confidence that their local retailer or restaurant, for instance, would have what they need, when they need it.

Two previous pilots have shown that it could also reduce rush hour traffic, lower fuel costs for businesses, and reduce greenhouse gas, and other emissions. So, it could also improve our environment and increase safety for people, as they go about their daily lives. It's about modern regulation. We've taken a team approach to this legislation, working across ministries, breaking down the silos, to support people and job creators. Because if there's one thing this pandemic has taught us, it's that we're all in this together.

Being part of Team Ontario means protecting the things we collectively value: our health, our safety, and the environment. I can't stress enough how our government's modernization work has been designed to uphold these protections. And, in many cases, improve them. We know that regulations and rules are not negative in and of themselves. It's the unnecessary, duplicative, and outdated regulations, that are the problem for businesses and their growth. It's these that we are updating, through the Main Street Recovery Act. Small and Main Street businesses all over Ontario have dealt with unforeseen cash flow, safety, and physical distancing pressures, since the start of the pandemic. Overly complicated, unnecessarily costly, and outdated regulations that don't reflect today's reality, represent additional burdens for stressed businesses.

Smart, modern regulations that are easier to comply with, however, will empower businesses to invest their time and money in what matters right now: keeping people safe and employed. To ease safety and cash flow concerns for Ontario's smallest businesses, our Main Street Recovery Plan is making $60 million in funding available, to help with the cost of personal protective equipment. Many of these businesses occupy small footprints, and require frequent in-person contact with customers, or co-workers, making PPE a new condition of operation. Our Main Street Relief Grant offers funding to help these businesses with a variety of PPE costs, including masks, gloves, and Plexiglas installation. It provides a one-time grant of up to $1,000 for small and Main Street businesses in the retail, food and accommodations, and other service sectors with two-to-nine employees. And it would address key problems identified by nearly every Main Street small business I've talked to: their liquidity issues, affordable access to PPE, and low consumer confidence. Helping these businesses recover the cost of PPE—like the quality Ontario-made PPE found in our Workplace PPE Directory—will protect the lives of employees and customers. And it will support consumer confidence, bringing life back to our Main Streets over the long term.

As you've all noticed, Main Street businesses truly shine when they reflect the communities they're a part of. To help them access direct local support, our government has linked 47 Small Business Enterprise Centres into the new Small Business COVID-19 Recovery Network. Through this network, Small Business Enterprise Centres will be able to offer more recovery advice, and tools that are tailored to the owners and entrepreneurs in their communities. It will provide local Main Street businesses with the clear information and guidance they need, where they need it.

On top of this, we recognize that times seemed pretty bleak for small businesses, lately. We want to ensure them that there are areas for hope. One is their embrace of digitization and e-commerce. The digital space has provided a new world of opportunities for small businesses to sustain their operations, and to grow them. To help more small and Main Street businesses tap into the e-commerce market, our plan has Main Street Squads going live across the province. The squads, composed of talented graduates and students with strong technology and marketing backgrounds, provide one-on-one help with digital assessments, social media advertising, and e-commerce platforms. They are part of our Digital Main Street Program, which is helping close to 23 Main Street businesses go digital, with grants of up to $2,500 to get them started, along with continued support.

Lately, we've been hearing from many businesses that have been able to use the program's innovative supports to get online. You know, I read a great story recently about Manitoulin Island's Jar Market and Café, which was able to cut six months off the time needed to build their e-commerce site. And they're not only boosting their own sales through the new ManitoulinMarketplace.ca site; they're promoting other local businesses with it as well. It's another example of small and Main Street businesses giving back to their communities.

While retail sales were falling by nearly 20 percent between February and May, StatsCanada reported that online sales surged 99 percent. In fact, year-over-year, e-commerce more than doubled, with a 110-percent increase, compared to May 2019, and a record $3.9 billion in sales. But we can't just let large e-retailers occupy the digital space all for themselves. We need to help Main Street businesses and consumers understand that shopping local and shopping digital can go hand-in-hand. That's why, in addition to Digital Main Street, our government is promoting Shop Local. We're encouraging people to support small businesses, either in person or online. On Ontario.ca/SmallBusiness, you can find downloadable posters, safety guidelines, and information on the Post-Promise, a nationwide commitment that helps boost consumer confidence. We'll also be using social media tools to promote Ontario's small and Main Street businesses this holiday season. It's an opportunity to support the small businesses that mean so much to our communities, by buying a gift, or ordering with the people who mean so much to us, and all of our communities.

Whatever the season, it's always a good time to support Ontario's small and Main Street businesses. They've been there for us through the worst of this crisis; now it's time for us to be there for them. Our government's comprehensive plan will help give small businesses what they need to stay safe, stay solvent, and stay competitive through this pandemic. And as COVID-19 evolves, we'll continue to explore new ways to support small business recovery. One thing that won't change is our commitment to their long-term success.

Our vision is to ensure that Ontario's smallest enterprises have what they need to recover, rebuild, and reclaim their right to succeed. I look forward to working with all of you to make this vision a reality, starting with shopping locally and staying safe. Thank you very much, and back over to you.

Kelly Jackson
Thank you very much, Minister. I now have the pleasure of introducing the Honourable Lisa Raitt, Vice-Chair, Global Investment Banking, CIBC Capital Markets. Lisa joined CIBC Capital Markets in January 2020, where her current focus is on senior client coverage and business development, with clients in the energy, infrastructure, and industrial sectors. For many years, Lisa was one of Canada's most recognizable and impactful politicians. Lisa was elected to the House of Commons in 2008, where she went on to hold three senior portfolios, serving as Minister of Natural Resources, Minister of Labour, and Minister of Transport. Lisa was also the Deputy Leader of the Official Opposition, and the Conservative Party of Canada.

Prior to entering politics, Lisa was the President and CEO of the Toronto Port Authority. She holds a Bachelor of Science from Santa Fe University, a master's degree in chemistry from the University of Guelph, and an LLP from Osgoode Hall Law School, and was called to the Ontario Bar in 1998. And in 2020, she was named Global Fellow of the Canada Institute at the Woodrow Wilson Centre.

It is a real honour to have these two powerhouse-people together to have a great conversation. But before we get to that, I just have a couple of quick reminders for the audience. This is interactive; we want to hear from you, and we encourage you to take advantage of the question box that you will find located to the right of your screen. Let us know what's on your mind, and if you have any questions. And again, if you need any assistance, you can use the "Request Help," technical assistance button, and we'd be happy to support you. Okay, Lisa, over to you.

The Honourable Lisa Raitt, Vice-Chair, Global Investment Banking, CIBC Capital Markets
Excellent, thank you, Kelly, much appreciated. And Minister, it's awfully nice to be sharing a podium with you—kinda sorta, here we are on Zoom—I liked your first idea that we'd actually do this in a restaurant. But I get we're not really in the position where we can enjoy those things. Makes a lot more sense for us to do it safely from our own homes. But you owe me lunch, that's what I'm gonna say, at the end of the day, and I know that I can count on you for it.

The Hon. Prabmeet Sarkaria
For sure, one hundred percent. We'll find some good Indian food in Brampton, next time we can, and have a great lunch.

The Hon. Lisa Raitt
I'm gonna look forward to it. Okay, so it's June 2019, you're 30 years old—it's not about the Raptors winning, by the way—you're 30 years old, and you become a minister. And not only are you becoming a minister, which is an amazing thing, you're getting a portfolio that is meaningful to you, because both of your parents are small business owners. And you're in charge of bringing more sense to regulation, and you're reducing regulation, and you're in charge of the small business file.

And then you fast forward about a year, and you realize that ,in this portfolio, you're sitting pretty much at ground zero. And I listened to your speech, and how you talked about how many groups that you've met, like a hundred roundtables you did. Was there anything that you heard from them, in all of these roundtables and all of the outreach that you did, that really stuck with you? Something that you, you kind of went, "Yeah, I really need to help with this."

The Hon. Prabmeet Sarkaria
That's a great question, Lisa. But before I answer that, I just want to take an opportunity to really thank you for doing this with me. You've been a trailblazer, whether it's in political office or in the private sector. So, you know, thank you for your leadership. You know, as a younger member of cabinet, we can always look up to leaders like you that have done such an incredible job. So, thank you for doing this. It's an absolute honour.

But, you know, to that, to that point and to that question, you know, I've been on those roundtables, and, you know, I see so much of those conversations that many of these small business owners put forward. And they really resonate with me, because I see families that have invested their life savings, they've invested, they've, you know, taken out a loan on their house, on their principal residence, and they've invested into this idea, this business. And then all of a sudden, you know, we're going through some of, you know, when we look at Ontario from 2018 to March of 2020, we saw record growth, from whether it was in employment, job creation—you know, since we got into government in 2018, to the start of the pandemic, there was over 300,000 new jobs in the province of Ontario. And so, we saw great economic times. And then all of a sudden, something that none of us could have predicted, you know, comes before us. And then I'm having these conversations.

So, what really sticks to me is that, you know, I see so many of these individuals on the opposite end of the line. And I see their, my, my, the story of my parents, the story of myself growing up, helping out wherever I could. I could see that in them. And that really sticks with you, the emotional toll, the personal toll that, you know, the pandemic has really had. But it gives you a good viewpoint when, whether it's I'm at the cabinet table, when I'm able to put forward policies that I think can help support these small businesses, because it gives me that unique perspective. And many of our colleagues are actually small business owners, and are, within our government as well. So, it's something that is really close to not only my heart, but the premier's heart, who is also a small business owner. But it gives us this great perspective, to really understand the needs and the challenges that come ahead of us.

QUESTION & ANSWER

The Hon. Lisa Raitt
Yeah, absolutely. So, you know, we're getting questions coming in from people who are watching. So, I'm going to go to one of theirs right now. And it's a specific question from Adie: what role does the minister see standards playing in reducing red tape? How can you use standards as a way to help with getting rid of some regulation or red tape?

The Hon. Prabmeet Sarkaria
So, I think one of the key things when it comes to standards is really harmonization. So, you have the province of Ontario that is usually the leader across all of Canada, or even North America. But when there's a lot of businesses ,and there's a lot of industries that operate, you know, all across the world. Whether it's specific designations, safety ratings. There's a great number of examples where, if the government of, you know, Ontario, or even the government of Canada, you know, used harmonization with standards of international standards, you know, well-respected safety or other guideline standards, you could significantly reduce the cost of doing business in the province of Ontario, and making it more attractive.

You know, a couple of examples that we see is whether it's, you know, in the upcoming area of data and the regulation of data, when you look at the European Model, there's a significant model that's already very well-adopted all across the world. And so, as we, you know, bring forward our own data plan, it would only be, it only makes sense for a government to adapt to those international standards, rather than creating new standards that will then cost businesses more to comply with. So, our, the whole motive, here, is to make sure that we have smarter regulation, more modern regulation, that really lets businesses protect the safety, health, and the environment, but also gives opportunity for businesses to spend more time growing their business, investing more time in their employees, and creating more opportunities across the province.

The Hon. Lisa Raitt
It's so true. When I was Minister of Transport, I had lots of round tables and meetings both in Brampton and in Milton, and your colleague Parm Gill, who is my MPP, will tell you the same thing. Some of these weird problems you have about, literally, what stickers the trucks have to have as they cross over not international borders, interprovincial borders, just really don't make any sense at all. But it just needs somebody focusing on it like you're doing right now. And I'm really glad to hear that you guys are taking a hard look at it, because there are simple things you can do to make life a lot easier for people who are putting the heart and soul into a business every day. We've got another question from Lisa—beautiful name, by the way—Lisa wants to know, what steps can small businesses take, to ensure that they are able to receive the rent subsidy you mentioned—especially if they are businesses that opened up during the pandemic? So, a new business opens up during the pandemic, still being impacted. What things should they be thinking of doing, in order to learn about the rent subsidy that you mentioned, and how they can ensure that they're going to be able to qualify?

The Hon. Prabmeet Sarkaria
That's a great question. So, we had the opportunity to work with the federal government on the initial launch of the program, which covered rents right after the pandemic, all the way up until September. It was a $1.2 billion, a $900 million dollar investment by the province of Ontario, to join our federal counterparts in that program. And, you know, one of the things that we heard from a lot of small business owners at that time was some issues around receiving payments, of landlords having to opt-in. And that was where we've gone back to the table with some of our federal partners—who have now, actually, launched a revised version of it, which is, should be out hopefully in the next couple of days and weeks.

But I think the key change that will be very helpful for small businesses, like Lisa said, is that it will be a tenant direct payment. So, many of those weren't able to apply before because maybe there was an issue with a landlord, or there wasn't a buy-in from both parties, this will give direct support to those business owners, to be able to cover the costs. And if you're in a restricted zone, like much of Peel, Toronto, and York is, you can receive up to 90 percent of those supports. So, we're going to try to do anything and everything we can, to work with all levels of government to ensure our businesses have the supports they need to get through this, and to be able to receive the support in a timely manner, as well.

The Hon. Lisa Raitt
Yeah. So, Mike has written in, Minister, and he it's a really good question. It's the one that politicians do have to answer to. And it's: what assurances can your ministry give small businesses that the red tape concerns that are brought to them will not only be heard, but as well, followed up with concrete solutions?

The Hon. Prabmeet Sarkaria
That's a great question, and something that we've really done, here, you know, to institutionalize red tape reduction in not only our ministry, but within the government, as we've committed to two pieces of legislation a year. So, I put forward a piece of legislation just a couple of weeks ago; we're going to be putting forward another piece of legislation in the next session in February, March, at whatever time we can get it to the House. But we've made a public commitment to ensure that we get as much registered legislation focused on red tape as we can.

On top of that, we've made online portals to take and track in these ideas. So, for example, the academic we launched the Tackling the Barriers Web Portal, which allowed businesses to pitch the government on ideas that would change, or make easier, the opportunity for businesses to operate in a COVID environment. So, one of those examples that many people have probably heard of is allowing restaurants to serve alcohol with their takeout orders. So, it's something that small business owners—I remember being on a round table with small business owners, and them pitching this idea, and saying: hey, we have a lot of inventory. If we could, if you guys, you know, if the government could, you know, modernize some of this regulation, you know, it could be a help to us, and it could increase our profits, it could increase some of our sales.

And so, that was an example of something that came directly from some of our, you know, from our small businesses on a round table in action. And then we put it through, whether it's today, whether it's, you know, input from stakeholders that continues to come to us throughout the year. All of that is then fed into our partner ministries. We try to break down the silos and work together to put comprehensive support packages together from legislative vehicles, like we have in the past.

The Hon. Lisa Raitt
Yeah. Tell me a little bit about the whole of government, because I see it in both documents that you've put out from your ministry, the Main Street documents, and Helping Ontarians Do Better document. Tell me about the whole of government. I also see you all the time with Minister Phillips, too. There's lots of roundtables that you guys take part in. It seems like a really close working relationship, in terms of a cabinet. Let us know how it's working out.

The Hon. Prabmeet Sarkaria
Well, I think one thing that we've all recognized is the need for all of us to work together. And I think, you know, unprecedented times like these, you know, I've been fortunate to have incredible cabinet colleagues like Minister Phillips, Minister Fedeli, who have—seasoned veterans, and have a great deal of private sector and public experience, that have been able to, to really collectively work together. I've done a number of roundtables with Minister Phillips feeding right into his Jobs and Recovery Committee, which then actually ended up with a lot of the ideas from those committees and those roundtables formulated into this budget document that we put forward, just last week.

But I think it's imperative that government breaks down those silos. For too long, there's these inefficiencies created within government that, you know, for example, you know, the Ministry of maybe, you know, Economic Development won't talk to the Ministry of Health or Government Consumer Services. So, being able to have that communication, and that horizontal approach, and breaking down those barriers internally, only improves outcomes, and only improves policy outcomes and policies that are put forward. It's just collaboration, smarter government, modern government, and really just delivers a better end-user experience for the people of this province. And we've seen a lot of work through digitization, and other ways that, you know, breaking down those barriers has really helped with.

The Hon. Lisa Raitt
Yeah, no, it's definitely for the benefit of all Ontarians. Next question, I'm very excited about, I have to tell you. And I'll give it a little bit of an introduction. When I was—my first ministerial job was the Minister of Natural Resources. And in there, we started a hydrogen project, a pilot project for hydrogen buses, to coincide with the 2010 Vancouver Olympics. Way back then, we were talking about hydrogen. Today, your colleague, Minister Yurich—and this is a question from James—announced the Ontario Hydrogen Strategy Discussion Paper, which is pretty awesome, because it is one of those fuels of the future. And you're talking just now about how there's a whole government approach. Do you have any thoughts on how you can see Ontario's SME's, small and medium-sized manufacturers, play in this new hydrogen value chain?

The Hon. Prabmeet Sarkaria
Well, I think this is a significant part of our plan, and something that, you know, we look at innovations, Ontario has always been ahead of the curve. And in the ingenuity of our entrepreneurs all across Ontario. So, you know, I'm very happy that Minister Phillips was able to put this forward. You know, hydrogen is very exciting. We know that electrification will not only solve, you know, the problems of today, but can actually, legitimately, become a great tool for economic development. And if we can lead that charge, here in the province of Ontario, and have that visionary thought, forward-linking thought, it's just, you know, it's really gives us the ability to help fill those gaps that electricity will not be able, or cannot fill to, to this day.

So, it's definitely exciting, any time we can use innovation to support economic growth, I think it's always exciting. And it's always incredible to see the ingenuity that comes from so many of these—you know, and all the opportunities that can come from an employment opportunity. So, I think it's a really good opportunity for us to look at. I'm always, you know, from the red tape lens, we're always looking at trying to see how we can better support innovation here. And a lot of times, when you're innovating, there's a lot of red tape. Because you're trying to do something new that's never been done before, and regulation comes in the way, sometimes. So, that's where we love to excel, and break down those barriers, and make it happen. So...

The Hon. Lisa Raitt
Yeah.

The Hon. Prabmeet Sarkaria
...I'm very excited about that.

The Hon. Lisa Raitt
Yeah, I see where the puck is going, it, you know, and it lines up. I'm sure Minister Fedeli is very excited about this, because it lines up very well with the new Biden administration talking about two things: hydrogen as being important, but as well, advanced nuclear reactors—which of course, Ontario has an incredible supply chain, many of them are your folks in the small business area as well.

You know. I tend—like a lot of Ontarians right now, I am probably visiting take out in restaurants a lot more than I ever have in the past. And that's a good thing, I want to support the folks. But as, you know, and I know, when you meet the folks who are running these restaurants, they're pretty tired, Minister. They're tired, and they're really concerned about what is coming next. But they are resolute, and they are sticking it out. So, I'm just wondering if you can give us an idea, what is going to be, what impact is there going to be on these, these small restaurants, these small takeout places, with the helps that you're bringing in from your government? How, how are, specifically, how can you talk to them, and let them know that things are going to be okay?

The Hon. Prabmeet Sarkaria
Yeah, and, you know, when I see the resolve, when I talk to these business owners, it's incredible to see the sacrifices they've made, you know, the pivoting they've done, in today's world. I see so many businesses that I've known before, really embrace e-commerce, digitization—and I spoke to it a bit in my speech, as well—but I think there's been a significant shift in behaviours over the past couple of months, especially with the onset of the pandemic. And I think many entrepreneurs have been able to really build on this, and capture that shift in behaviour during this pandemic. But I think it really underscores the need for us to be there for small businesses. You know, for example, the support programs that we put, put out. Not just, you know, temporary measures, like the 300-million-dollar, the PPE Grant Program, you know, the Rent Subsidy. But our budget, fundamentally, looks at ways to make businesses more competitive for the future of this province.

I look at, you know, our changes in the budget that are going to reduce hydro rates for employers from 14 to 60 percent on average. You know, it's a 1.3-billion-dollar investment, after we saw a total mismanagement of this file under a previous administration. This became one of the leading causes for many manufacturing industries to leave this province. And to be able to, not only for smaller businesses, but manufacturing and all other industries, bring forward changes that are going to significantly reduce their costs of operating on hydro, about 14 to 16 percent, I think will be very successful.

On top of that, you know, changes to property taxes that are going to deliver 450 million dollars of support for over 200, 000 small businesses across the province. So, it's not just about temporary supports right now. We're trying to give businesses confidence that, as they go into recovery ,as they try to rebuild and emerge stronger than ever, that we're going to have a significantly more competitive business environment in the province of Ontario.

The Hon. Lisa Raitt
Yeah, hang on, because it's going to be worth it.

The Hon. Prabmeet Sarkaria
I agree.

The Hon. Lisa Raitt
I have another question from Angelo: how can you help reduce red tape to get building permits coming out of the pandemic?

The Hon. Prabmeet Sarkaria
So, this is a, I would say, you know, something that I hear at a significant amount of round tables that we have. It's really about, you know, working with not only our provincial, but municipal leaders. And the premier and I have launched a working group as part of the Red Tape Bill, that will, you know, we're the first government that will actually work together to streamline a lot of those permitting and building processes, so it's something that, you know, from our ministry, and from all other, you know, partner ministries—whether it's, you know, Municipal Affairs, Energy, whether it's Transportation—a lot of these developments, a lot of these zoning materials, or permitting, have a significant delay or impact. And the efficiencies that we see by streamlining these processes, is something that is very significant.

So, we're very committed to working with our municipal partners, to see where we can find these efficiencies. And we're really trying to promote this at all levels across government. Because we think that, you know, the key to economic development, now, is to ensure that we get projects up and running as quick as we can, get our economy moving again, get people back, back into jobs, and back working again. And if we could do that by significantly, you know, increasing the time that—or reducing the time to get shovels in the ground, I think it will be something that's beneficial for all of us. So, remove that tape and get shovels in the ground as quick as possible, and let's see our economy grow. I think there's significant potential all across the province.

The Hon. Lisa Raitt
Yeah. I agree. So, Minister, we're wrapping up, we've run out of time here today, and I want to thank you very much for the time you've spent with me. But I teased you before we went on camera that I was going to ask you a question, I'm going to put you on the spot, here, but not on the specific question I asked you before. You and I are big Raptors fans—I mean, our whole, our whole country is in love with the Raptors, but I don't think anyone's as big of Raptors fan as you are, to be honest, that I know of—so I'd like to know, what are your thoughts about coming into this new season for the Raptors? What do you think?

The Hon. Prabmeet Sarkaria
So, I'm pretty excited. I think, you know, it's going to be a bit tough. We've got a lot of free agents; we've got a lot of roster movement that might happen. But, you know, I think we've got one of the best teams, we've got, you know, Masai and Nick Nurse have really built an incredible culture around the Raptors, and it's got all of Ontario and all of Canada—it's Canada's team. So, I think, any time you watch the Raptors play, you feel a great sense of pride, not just for the City of Toronto, but this entire country. And I think it really helps them, and it pushes them forward. And I'm really excited to see what they're going to be able to do. We had the draft last night. We had—although, not a high pick, but some exciting...

The Hon. Lisa Raitt
Yeah, second last.

The Hon. Prabmeet Sarkaria
Second-last pick, so—but hey, we, Fred VanVleet was undrafted, I believe, so, you know, the Raptors make magic happen. So, we've got one of the best front offices and teams in the entire league, and I'm really excited for the season to start and get back up and running again.

The Hon. Lisa Raitt
I agree. I think it's a nice bit of normalcy that we're all looking for, isn't it ?

The Hon. Prabmeet Sarkaria
Exactly, exactly. Can't wait to get back out to a game, one of these days. It's going to be exciting—it's a bit distant, but I'm sure we'll get there, get through this together.

The Hon. Lisa Raitt
Excellent, yeah. Absolutely. Well, thank you very much, Minister, I appreciate it. I'm going to ask Kelly Jackson to come back on the line, here, and wrap us up. And Minister, you know what? I meet a lot of politicians, and I meet a lot of wannabe politicians. We met a long time ago, when you were so kind as to guide me around a Temple on a celebratory day. And you struck me at that point in time as someone to watch, and I'm absolutely delighted to say that I was very correct. And I wish you all the best in your career, and I'm really looking forward to seeing great things you can do for Ontarians.

The Hon. Prabmeet Sarkaria
Thank you so much, I really appreciate it. Absolute pleasure.

Kelly Jackson
Thank you, Lisa, for leading a really great conversation, and being able to definitely connect some of our audience questions directly into that, so that we could hear from them from the minister. I would like to now introduce Jan Westcott, President and CEO of Spirits Canada, to provide appreciation remarks

Note of Appreciation by Jan Westcott, President & CEO, Spirits Canada
Thank you very much, Kelly. Minister, it is hugely encouraging that the government recognizes the vital role of smaller businesses and has designated a minister to make sure that their voices are represented and heard at the cabinet table, and in caucuses where policies are being discussed. I think this is critical. And based on the work that you've outlined and the things that we've seen, the premier obviously picked the right person to head this up. So, thank you very much.

You referenced the fact that small businesses can be successful and grow into medium-sized and large businesses. Some of my members represent that. So, they all started out as small businesses. We have, one member who is the largest distillery in North America. But when they started, they were a small business. And more recently, we have another small business over in the Niagara Peninsula that has grown into a medium-sized business. So, the opportunity is certainly there, and we're now seeing the creation of dozens of new small distillers across the province.

One thing that I would mention: when you summon the courage to start a business, you're aware that it's going to take some time to establish yourself, and actually generate a profit. My point in saying this is that the pandemic is having a similar effect. And it's going to take time for businesses to bounce back. And so, I'm encouraged that you're looking at this, not just as while the pandemic is ongoing, but there are going to have to be things that are done for businesses as they go forward over the next several years, to rebuild their position. So, that's encouraging. We do need to look at innovative new ways of driving forward. I'm glad you're doing that. I think there's huge opportunity. Crises often produce breakthroughs that you wouldn't otherwise see.

So, thank you for taking the time to share with us what you're doing, how you're coming about that, and the work that's going on in the government. It's hugely appreciated, critically necessary, and, as I said, I think the premier made the right choice in making you the minister responsible. So, on behalf of the Empire Club, thank you very much. Kelly, back to you.

Concluding Remarks by Kelly Jackson
Thank you, Jan. So, before we close off the meeting formally, I do want to highlight a couple of our upcoming events. The first is on November 20th, featuring Blake Hutcheson, President and CEO of OMERS. The next is on November 26th, with Sean Finn, Executive Vice-President, Corporate Services, and Chief Legal Officer for CN. On December 3rd, we will have one of the minister's colleagues joining us, the Honourable Doug Downey, Attorney General of Ontario, who will be in conversation with Vivene Salmon, Past President of the Canadian Bar Association. And finally, on December 10th, we have our signature Nation Builder of the Year Award. This year, the award is being provided to, or essentially, we're recognizing all of Canada's frontline workers. We have a great event, with a lot of VIPs and celebrities who are lined up to join us that day. So, I encourage you to join us as well. If you know of somebody who is a frontline worker that you think deserves to have their story told, please go to the Empire Club of Canada.com. You can submit a testimonial, and that person will have a chance to win $5,000.

All of the events that I mentioned are free, and so, we really hope that you'll have the opportunity to join us for those. This meeting is now formally adjourned. Thank you for joining us, and have a great afternoon.