Christian Paradis

[Business of Supply, March 1st, 2007]

Mr. Speaker, I am pleased to have this opportunity to speak about the many stringent conditions this government set with Boeing for the purchase of strategic airlift planes.

The motion suggests the government was soft on Boeing during the negotiations. Nothing could be farther from the truth. Economic spinoffs must be high quality and involve high technology. Here are a few examples of acceptable projects: the production of mission avionics for helicopters; the installation of radars and other electronic material in fighter planes; the production of composite high-tech parts for large commercial planes; the establishment of a research and development centre; or investments in Canadian universities for research in aerospace engineering.

But if a company wants to buy raw materials like steel or iron ore, trade wheat, foodstuff or farm products, or goods and services with a low technological content, these proposals would be refused.

Once a company has prepared a proposal for high quality and high technology industrial benefits, that proposal is evaluated according to three strict criteria. First, the work must be generated by the procurement program. Second, the work must be carried out during the period defined in the contract. Third, the work must comply with the growth principle, which is that existing business relationships may be used, but only the new work will count toward meeting the obligation.

Industry Canada then insists that the spinoffs be truly Canadian. To determine this, the department examines the precise value of the Canadian content of the transactions between the principal suppliers and the Canadian suppliers. In other words, officials examine the precise quantity of materials or work from Canadian sources that a transaction involves and award it points.

Consequently, if a contractor buys a product from a Canadian company and the product is entirely manufactured in Canada, it receives full points for that factor. However, if 60% of the product is manufactured in Canada, it will be awarded only 60% of the points assigned for that factor. That also means that the total value of contracts with Canadian companies often exceeds the amount that the government pays the principal supplier. Canadian companies receive that income, and the Canadian economy automatically benefits.

As well, half of Boeing's transactions in relation to industrial spinoffs must be in the aerospace and defence sector. Boeing operates primarily in the aerospace and defence industry, and so a majority of its activities in Canada should be in that industry. However, by imposing that minimum, the government has left the door open for other high technology industries. Boeing must also allocate 30% of its industrial benefits contracts to key technologies, as set out in the list drawn up for that purpose.

The list of key technologies was developed in collaboration with the industry. It sets out the nine main priorities for technologies that will help to preserve and expand the aerospace and defence industry, while ensuring its long-term sustainability. The list includes the following technologies: advanced manufacturing and emerging materials; avionics and missions systems; communications and control; propulsion and power management; security and protection; sensors; simulation, training and synthetic environment; space; and unmanned vehicle systems. Boeing has already identified a number of transactions that meet the requirements of the key technologies list. The company will be undertaking major projects that use technologies relating to composite materials, simulation and training, communications and control, and space.

Finally, 15% of Boeing's industrial benefits contracts must be awarded to small and medium sized businesses. These are vital to ensuring the growth and viability of the aerospace and defence sector and of the economy as a whole. These have proven their lead role in economic growth models. Boeing is a huge company with multiple divisions and it is often hard for small businesses to make a place for themselves in Boeing's supply chain. This is why it is important to ensure that these businesses will also be able to take advantage of this opportunity.

To date, the industrial benefits relating to the strategic airlift project have been solid in all these sectors and show promise as far as potential long term impact on the Canadian economy is concerned. Through Industry Canada, the new government of Canada places strong emphasis on the importance of Canada-wide participation and showcasing the skills of Canadian companies. Our government is making every effort to ensure that international corporations are aware of the scope of Canadian industry and of its many and varied assets.

Industry Canada officials will be working closely with the regional development agencies, that is the Atlantic Canada Opportunities Agency, Western Economic Diversification and the Economic Development Agency of Canada for the Regions of Quebec. Together they will seek out Canadian businesses with a potential interest in the opportunities available.

In addition, departmental officials will work directly with Canadian businesses throughout Canada in order to draw attention to existing opportunities and to help companies interested in obtaining contracts, in order to underscore the importance of Canada-wide participation and to showcase these companies' abilities.

We also make it very clear to potential bidders that they are expected to work with companies throughout Canada. Boeing, for example, held four sessions with regional industries, one in each region of Canada. The one in the Atlantic region was held on September 7 and 8, 2006 in conjunction with the Halifax air show. They were in Calgary for the western region on October 3 and 4, 2006, in Montreal for the Quebec region on October 24 and 25, 2006, and in Toronto for the Ontario region on November 7 and 8, 2006. Boeing was thus able to meet hundreds of Canadian businesses and to gauge the strengths and abilities of companies all over the country. Boeing has undertaken to work with Canadian businesses in order to achieve 100% industrial benefits. This will be achieved through logical business relations leading to real markets and the forging of lasting and viable partnerships.

The spinoffs in Canada are serious contract obligations. Industry Canada requires annual reports, audits and performance guarantees. Each year, contractors must report on what they have accomplished in that respect. Financial penalties can even be applied in case of a failure to comply, but until now, it has never been necessary to impose such penalties.

I would like to sum up the strict requirements which I just described. Boeing must ensure that there are high quality spinoffs worth 100% of the eventual contract value. The company musk work with businesses throughout Canada, including Quebec. At least 50% of the spinoffs must be for the aerospace and defence industry, at least 30% for the nine key technologies identified by the aerospace and defence industry and at least 15% for small and medium sized businesses. The value of the spinoffs in Canada must equal 100% of the contract value.

The work must come from the acquisition program. It must be performed during the period defined in the contract. It must be in agreement with the principle of growth. Existing business relationships may be used, but only new work counts in assessing compliance with the obligation. These are rigorous conditions which define a serious contract obligation.

The government is very serious about its responsibility to negotiate firmly with potential suppliers and to obtain optimal spinoffs for all of Canada. The government has respected its obligations.

I will stop here in order to be able the share my time with the member for Beauport—Limoilou.

[Manufacturing Sector, February 16th, 2007]

Mr. Speaker, I should mention to my Bloc Québécois colleagues that Economic Development Canada participated in 785 manufacturing sector projects between 2004 and 2006, creating 937 jobs and now, 1,862 jobs.

One thing I can say for sure is that my colleague, the Minister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec has brought in measures for regions that are having a hard time remaining economically vibrant. There are programs designed to address that, and things are going well. Requests are coming in and the projects are moving along at a good pace. That is a real strategy. That is not just talk; it is action.

[Canadian Wheat Board, February 16th, 2007]

Mr. Speaker, one thing is clear: an unprecedented amount of money will be paid to the farmers. I can assure you that 2006 will be a record year, if we take the BSE crisis out of the equation.

Let us be clear. Our government is listening to farmers and taking action.

[Canadian Wheat Board, February 16th, 2007]

Mr. Speaker, this government's commitment is clear and that is to respect the will of the farmers. We have had requests and we support farmers marketing barley if they want to. A plebiscite is under way with a democratic process and clear questions. Our government will take action accordingly.

[Agriculture and Agri-food, February 16th, 2007]

Mr. Speaker, my colleague can throw out all kinds of statistics. One thing is clear: a decision was made last week in support of supply management. We were accused of being against supply management. Measures have been taken that the Bloc will never be able to take.

Furthermore, we are working on providing a fair income for everyone. Officials agree on this and we are headed in the right direction. My colleague knows quite well that he will never be able to do anything in this matter.

[Agriculture and Agri-food, February 16th, 2007]

Mr. Speaker, the Minister of Agriculture and Agri-Food was clear. We are currently working on improving programs to adapt to what is happening. Market conditions change and we want to adapt.

We are taking action. Recently, important initiatives were announced in Quebec and we are continuing our work. We are working on behalf of our farmers.

[Agriculture, February 9th, 2007]

Mr. Speaker, the minister was very clear on Wednesday, when he said that he would take action promptly, as my friend has described. We will gladly make a point of letting the hon. member know when action has been taken.

[Business of Supply, February 8th, 2007]

Mr. Speaker, I want to thank my colleague for his question. When we have a serious problem, what do we do? We set mandatory standards. That has never been done. Never has a government dared to do that before us. Never will the Bloc Québécois have the audacity to say it will regulate.

I currently sit on the legislative committee dealing with Bill C-30. We have heard experts such as Claude Villeneuve say yesterday that, in the current state of affairs and since nothing happened in the past 10 years, we cannot meet our obligations in the very short term.

We have to set mandatory targets and that is what we are trying to do. We are introducing a bill. We are asking the Bloc Québécois to help pass this bill so that we can finally set restrictive targets. However, as long as this bill is blocked, we will not be able to do anything. People need to realize that this government is determined to act in a clear, compelling and concrete manner.

[Business of Supply, February 8th, 2007]

Mr. Speaker, I thank the honourable member for his comments.

I will use his metaphor. Let us be clear and honest. When the previous government signed the Kyoto protocol, it was the beginning of the season. The government said: "If you feel like winning, go ahead. If not, there is nothing to worry about. It will all be voluntary action".

So, when we took over, a year ago, we had to pick up the pieces. Even the leader of the official opposition now says that the targets cannot be attained in the short term.

This government came and said that there needed to be a change of culture. The lack of discipline needed to stop. Now we say: "If you do not win, you will not make the playoffs". This is somewhat the metaphor my colleague was using.

For the first time, a government will impose mandatory targets, and industries will have to comply. Canada will become a world leader, and we will have the credibility to convince large emitters, such as China and the United States, to join us because the problem has now become severe.

[Business of Supply, February 8th, 2007]

Mr. Speaker, I am pleased to address the House today to speak to the government's commitment to the environment in Canada and Quebec. Canada's new government understands Canadians' concerns about the environment and the quality of the air that we all breathe, and has made this a priority.

What this means to us is that we will take meaningful action, action that is concrete and realistic, to reduce harmful pollutants in the air that Canadians breathe, pollutants that are a constant threat to our health, our economy and our quality of life.

The previous government embarked on a plan that did nothing to solve the problem of the smog that threatens Canadians' health. It is wholly unacceptable for Canadians who suffer from asthma to be getting regular warnings to stay inside on a summer afternoon because of smog. The most vulnerable people in our society, our children and the elderly, deserve better.

That is why Canada's new government is taking unprecedented action to reduce both air pollution and greenhouse gases. Despite all the rhetoric spouted by the Liberals and the Bloc Québécois, the fact remains that since the previous government signed the Kyoto protocol, greenhouse gas levels have been rising constantly in Canada.

This government has not been content to talk about the need to reduce greenhouse gases; we have taken steps to do it.

Our government will tackle all sources of atmospheric emissions, but today I would like to focus on the concrete measures that we are proposing to Canadians to fight emissions generated by transportation.

Transportation is one of the biggest sources of air pollution and greenhouse gas emissions in Canada. It will play a key role in efforts to improve air quality for all Canadians.

Total greenhouse gas emissions associated with transportation rose by 25% between 1990 and 2003, and the situation is even worst in Quebec, where transportation is the largest source of greenhouse gases, accounting for nearly 40% of emissions.

That is why I am so proud of the many achievements of our government in significantly reducing emissions from that source, as my colleague said earlier.

I am thinking, in particular, of the amendments we are proposing to the Motor Vehicle Fuel Consumption Standards Act, which will, for the first time, allow the government of Canada to establish mandatory standards for motor vehicle energy efficiency.

I am also proud of the series of measures we included in our 2006 budget, only a few months after being elected. We have for example allocated $1.3 billion to public transit in order to ease traffic congestion in urban areas, reduce carbon dioxide emissions and improve the quality of life in our cities. We have also invested $900 million in a trust that will support capital investments in public transit infrastructure, as well as $400 million in funding to be provided through agreements with the provinces and territories.

Since September 2006, all appropriate authorities have had access to this public transit trust, and most of the agreements have been signed. We have also maintained part of the federal gas tax transfer to the provinces and territories, which will amount to $5 billion over five years. The funding coming from the gas tax fund should help the creation of ecologically viable municipal infrastructures, including public transit.

We also want to encourage people to leave their cars at home and use public transit systems. This is why we have created a new tax credit for those who buy transit passes valid for at least one month. An individual who buys an $80 pass every month will save up to $150 in taxes over a year.

Believe it or not, even though these accomplishments are impressive, they are not all. Our government has also made a firm promise to ensure that a rising proportion of the gasoline consumed in Canada consists of renewable fuel. For starters we have proposed a regulation that will require an annual average of at least 5% renewable fuel calculated on the basis of gasoline volume beginning in 2010.

Canada’s new government also intends to require an average 2% content of renewable fuel in diesel and fuel oil, after having reviewed the use of renewable diesel fuel in Canadian conditions. This requirement should take effect by 2012.

These new requirements will make it possible to reduce greenhouse gas emissions by about four megatonnes a year, which is the equivalent of about a million vehicles taken out of circulation insofar as greenhouse gases are concerned.

In December, we announced $345 million to finance two agricultural programs supporting the development of biofuels and other bioproducts. The $145-million agricultural bioproducts innovation program and the $200-million capital formation assistance program for renewable fuels production will help strengthen Canada’s position in the realm of biofuels. These programs will provide farmers with the capital they need to build or expand biofuel and biomass production facilities.

These programs are important steps forward toward achieving the government’s 2010 and 2012 targets, while at the same time creating new economic opportunities for our farmers here in Canada. The more farmers help to produce biofuels, the faster we will achieve our cleaner air targets for 2010 and 2012.

Canada’s new government also believes that it is important for farmers to have a role in making biofuels enhance rural prosperity by investing in their farms and enhancing their contribution to the value chain. This is not just idle talk. We will provide all of Canada’s regions with real opportunities to take a green route.

Canada will not be satisfied with empty rhetoric. After 13 years of Liberal inaction and neglect, Canada’s new government has made the environment one of its priorities. As for the Bloc Québécois, it can keep on making fine speeches that will never amount to anything.

I am proud as a Quebecker of the leadership Quebec has shown on climate change. We have a shining reputation for renewable energy and energy efficiency.

I firmly believe that the road chosen by our government will allow Quebeckers and other Canadians to benefit from a healthy environment in years to come, and that is what counts above all.

Our success will depend on the concerted effort of all levels of government, the private sector and all Canadians. I am convinced that, as in the past, we will be up to the challenge and we will deliver.