Good morning, Mr. Chair and distinguished members of the committee. I have the pleasure to be here today with one of the members of the Canadian Clean Technology Coalition, Nova Scotia-based LED Roadway Lighting.
The Canadian clean technology industry is globally competitive and is a potential driver of the country's economic productivity. We are an emerging sector—often under-appreciated—that can mean wealth, job creation, investment and international trade opportunities.
But we must take time now to nurture the fundamentals that we discovered in our research, a report called the “2010 SDTC Cleantech Growth and Go-To-Market Report.”
There are more than 400 clean technology companies already in Canada. Our industry is national, broad, and deep, with B.C., the Prairies, Ontario, and Quebec each contributing between 90 and 110 companies and Atlantic Canada contributing its fair share.
Our technology products and services span nine sub-sectors, as indicated in the materials we've circulated.
The Canadian clean technology industry is made up of companies that improve efficiencies in the production and use of energy, water, and resources. We do more with less. You should know that over 320 of these technology SMEs have products that are being sold today, and 80% are engaged in export sales.
Newly published information from the U.S. trade department suggests that Canada has as many exporting clean technology companies, in absolute terms, as does the U.S. This is an opportunity that we should not squander.
We are exactly the kinds of companies that will help stimulate and extend economic recovery. This is a sector that invests in research and development, brings products to market and can create jobs. During the economic recession in 2007 and 2008, Canadian clean technology companies grew on average by close to 50% annually, with the fastest growing among them achieving 170% growth. This sets our sector apart.
But there is a caveat. Today, we risk our leadership because many of these Canadian companies could be sold before they reach their potential. The market for the purchase of these companies is heating up, and even since we took the census of the industry nine months ago, some of the country's very best companies have already been bought. For this reason, we would like the members of the finance committee to support establishing a federal strategy for this sector, an “own the podium” plan for Canadian clean technologies. The U.S. already has one.
We are calling for the Canadian Cleantech 20 by 2020, a plan that has, as its objective, the establishment of 20 Canadian clean technology companies having achieved annual revenues of more than $100 million by 2020. To do this requires not only patient investment, but also patient public policy and continued nurturing from both the federal and provincial governments.
We can build on work already under way in several government departments: Natural Resources, Foreign Affairs, Environment, and Industry Canada, as well as others. As a first critical step, we strongly advise that the government establish a mass adoption approach for clean technology that builds on the $40 million merit-based procurement program at Public Works so that SMEs can sell Canadian technology at home. This is a simple but powerful step with many benefits. It marries green government policy and Canadian technology, and it will support commercialization at a critical stage.
I'm joined by Curtis Cartmill, whose company represents a living example of what we found in our study.