Madam Speaker, it is always for me an honour, a pleasure and a privilege to speak in this House on behalf of the people of Shefford who elected me.
As you know, Madam Speaker, my region of Granby has been hit hard by the unemployment problem plaguing the country. In this speech, I want to express my support for the defence industry conversion program. I strongly support the motion of my colleague from Hochelaga-Maisonneuve, which condemns the government for its inaction in this vital sector with the potential to create high-tech jobs.
How can the government sit on its hands on such an important issue after making firm commitments in this regard in the last election campaign? As you know and since they talk about it all the time, these commitments can be found in the Liberal Party's red book and in a March 26, 1993 press release.
What is now left of these moral commitments? To impress upon the government the meaning of the words "active", "alert" and "enterprising", I will quote the motion of my colleague from Hochelaga-Maisonneuve:
That this House condemn the government for its unacceptable delays in developing and implementing a genuine strategy for the conversion of defence industries to civilian production, which would save and create new jobs in high-technology sectors.
I think this motion clearly expresses the goal we want to achieve, namely to convert defence industries to civilian production and create high-tech jobs. In the light of this information, I remind the government that it must honour its commitments and quickly develop a genuine strategy for the conversion of defence industries.
The main reason underlying my position is that, with the collapse of the Soviet Union and the end of the cold war, spending on defence industries is no longer based on the initial strategic foundation. Thus, as a member of the Joint Committee on Defence, I still maintain that the amount spent on military defence is quite high and we need a moratorium to stop the waste of public funds. However, in making cuts in military spending, we must act fairly to the provinces and the various components of the defence industry.
Although the EH-101 helicopter project promised economic benefits for Quebec, we in the Bloc Quebecois were opposed to this program, but we insisted on the need to ensure economic and industrial benefits for Quebec through a project like the high-speed train, and these benefits are not yet forthcoming.
In fact, the government is dragging its feet on several issues that are important for economic recovery. They often quote the red book but they do very, very little. Nevertheless, the companies that were penalized when this helicopter contract was cancelled urgently need government support to convert their defence activities. Since the new world order began, military industries have had a rough time, as everyone here will agree.
The arms production market, estimated at over $450 billion worldwide, has dropped significantly since 1987, by almost 10 per cent. International experts say that it could drop another 25 per cent in the next few years. The main exporting countries, including Canada, are thus directly affected by this problem.
As you probably know, Canada exports about 70 per cent of its production to international markets, of which 80 per cent goes to the United States. Under Canada-U.S. agreements, we are thus tied to this market. Since the late 1980s, the U.S. defence budget has steadily declined. What will the impact be on our local industries?
In this specific sector, the most conservative estimates are that more than 1.6 million jobs will be lost throughout the world by the year 2000. That is a lot. This prognosis is hardly promising for Canada's military industry. In Quebec alone, more than 650 companies of all sizes work directly or indirectly in military production.
In Quebec, the most dynamic sectors are communication electronics, aerospace, shipbuilding and munitions. More than 11,000 jobs in Quebec's military industry have been lost since 1987. The impact is considerable.
Here are some specific examples of layoffs between 1990 and 1994 in Quebec companies that produced weapons or components: Marconi, 1,480 layoffs; MIL Davie, 2,740 layoffs since 1990; Oerlikon, 410 layoffs; Paramax, 1,000 layoffs; Pratt & Whitney, 200 layoffs; Triplex, 200 layoffs; Vickers, 350 layoffs; and there are others. This is scary! It is unbelievable! Just compiling these figures is an exacting process. Between 1990 and 1994, no less than 7,391 jobs have disappeared in those Quebec companies which are formally identified as producing systems or subsystems for military use.
These figures, which merely represent the tip of the iceberg, confirm the dramatic drop in military production for Quebec alone. You can imagine what the figures are for all of Canada.
This illustrates why the need to convert military industries is so urgent and vital for the survival of our manufacturing and high tech industries.
We must act quickly to ensure the conversion of defence industries to civilian production. The elected government has a fundamental role to play in this sector of the economy. So far, federal government support to our defence industry has essentially taken the form of procurement contracts and direct assistance to industries.
This support is mainly given through the Defence Industry Productivity Program, or DIPP. It seems that it is through this program that support for the conversion of defence industries will come.
The program aims at helping military industries remain competitive on international and Canadian markets. Considering the collapse of world and domestic markets for military equipment, a thorough review of the program is a logical and necessary step.
The most appropriate solution to help our defence industries is undoubtedly the implementation of a conversion program funded with DIPP's budget.
In fact, the House of Commons Sub-committee on Arms Export asked, in its recommendation 18, that the DIPP be extended so as to include assistance for conversion and diversification. The Liberal members who sat on that sub-committee signed the report, thus confirming their party's position when they formed the opposition. Is it possible that such a change could occur when you change sides in this House? This is incredible! It is unacceptable!
Considering that stand from the Liberals, and given the need to implement a conversion program to help defence industries, it is important that the DIPP plays an accessory role in this transition from military to civilian production.
While ideas seemed to have been developing for some time, and while consultations seemed to support a quick transformation of this program into a conversion program, it now seems that the Liberal Party is hesitant to launch such a support program. The Liberals are now undecided. What happened to them since they took office? It is hard to tell. What happened to those nice promises made on every platform by the Liberals during the election campaign?
Even the leader of the Liberal Party, the current Prime Minister, tried to outmatch everyone else in a press release dated March 26, 1993, where he said: "Canadians deserve a government which can show them the way, come up with new ideas and new strategies, and help them to adapt to change. Our defence conversion policy is a good example of how a Liberal government", as he put it, "would meet the needs of Canadians during the 1990s."
Unfortunately, I must say that all these promises went unheeded, so much so that, in his budget, the Minister of Finance kept quiet about all the new programs the Liberals had promised.
If the government does not develop a defence conversion policy for the years to come, Quebec and the rest of Canada stand to lose tens of thousands of jobs in technological indus-
tries. Our capacity to create jobs will keep eroding, and the government is very much aware of the situation.
Recently, when questioned by my colleague, the hon. member for Hochelaga-Maisonneuve, the Minister of Industry was rather smug and cynical. He said that the federal government already has all the tools needed to promote conversion and that the existing programs were enough to help them fill their mandate. Is this the new tactic the Liberals are going to use?
The Minister of Industry probably confused the support provided to military production within the DIPP program with a conversion program that the government has yet to develop.
The Minister of Industry should, as soon as possible, review the existing programs. He would notice a difference between what he thinks is out there and the conversion program we are proposing.
By the way, I urge my colleagues opposite to read the statement released, on March 26, 1993, by the office of the then leader of the opposition, now the Prime Minister of Canada.
With the help of the current Minister of Human Resources Development and others, they came up with these proposals, while they were sitting in the opposition. People say life is easier when you are in the opposition, but still, if you are serious, when you are in office you try to do what you said you would do. At the time, the government promised Canadians jobs and now all it is talking about is the deficit. It was the Conservatives who talked about the deficit during the election campaign, not the Liberals. The Liberals promised us jobs. What happened?
The Liberal government has fallen into the trap. Caught without any conversion policy, the government must, once again, trust the market forces. Can you imagine? They keep telling us: "Wait and see. Wait and see." That is exactly what we are doing. We are waiting.
For its part, the Bloc Quebecois firmly believes that the government must take initiatives that can provide jobs for our fellow citizens.
A plan to encourage manufacturers of military equipment to move away from this type of production and export and onto other fields. A well-defined strategy is the key to success for the conversion of high-technology defence industries to civilian production.
Defence industries are a pillar of the high-technology, research and development sector, and our competitiveness and our future depend in part on high technology. That is very important.
A strong industrial fabric is essential to economic prosperity and job creation. High technology offers high-paying jobs and, furthermore, it uses our natural resources as well as products and services from our enterprises.
I want to enunciate the three main recommendations of the strategy we advocate. First, the government should create a conversion fund as part of its comprehensive industrial conversion strategy.
The main mission of this fund would be to improve and add to the assistance provided within existing programs, with the objective of ensuring defence facilities and businesses an adequate and long-term support in their conversion and diversification undertakings.
Second, the government will have to create conversion advisory committees at local and regional levels. Finally, the government will have to form an independent committee to examine the different existing programs that could be used.
Needless to say that this strategy must be aimed first and foremost at completely reforming the DIPP.
The federal government must assume a part of the responsibilities. When you are elected, you must assume responsibility for these businesses' dependency towards arms production.
My intervention today indicates well that we will continue our representations, and I hope that the federal government will respond as soon as possible to the legitimate expectations of businesses from Quebec and Canada.