Hon. Danièle Henkel: Senator Moreau, I’m pleased to have a question for you in your new role. Once again, congratulations and good luck.

As you may have noticed, I am sitting in your old seat. I hope it’s not an ejection seat.

As we all know, the Bank of Canada has once again lowered its key interest rate by a quarter point. The government cited stagnant inflation, U.S. trade uncertainty and the risk of weaker domestic demand.

It also emphasized the significant decline in business investment. The rate cut will have a positive impact on business investment, although it will remain limited. What does the government plan to do to maximize this impact?

Hon. Pierre Moreau (Government Representative in the Senate): Madam Senator, I am happy to see someone as distinguished as yourself occupying my former seat. Please keep it warm.

I know you have a particular interest in small and medium-sized businesses. The government is well aware that SMEs are the backbone of the Canadian economy. As such, the government is very open to suggestions for improving their situation.

The government has taken measures to help SMEs, including allocating $500 million to the Business Development Bank of Canada to provide resources and advice to help SMEs cope with the current tariffs. I am sure that the government will always be a committed partner for SMEs, given their importance in the Canadian economy.

Senator Henkel: The Canadian Federation of Independent Business is proposing returning some of the billions of dollars generated by the countertariffs to SMEs through a temporary reduction in the tax rate or a targeted direct rebate.

Is the government prepared to implement this sort of measure to amplify the effects of the lower interest rate and give SMEs the stability they need to invest and grow?

Senator Moreau: Senator, as you know, the government will be tabling a budget on November 4. We will see whether that budget contains specific measures for small businesses. However, the government has already taken additional measures, such as deferring GST remittances and corporate income tax payments from April 2 to June 30, 2025. The government has also waived interest on the GST, particularly on second-quarter tax installments that were required to be paid between April 2 and June 30, 2025.