Finance Committee on Oct. 6th, 2011

[Howard Sellick]

Yes, that gives us the equipment. We can invest in the equipment and in the people to run that equipment. We really prefer that.

[Brian Masse, NDP, Windsor West, ON]

As well, with regard to the border, there is discussion about a perimeter.

I work with the U.S. and Canadian officials on a regular basis, in Lansing and Washington, and there have been a number of programs announced, so-called, that would de-thicken the border.

Over the last number of years, would you say the border has been relatively unchanged, in terms of your operations getting across there? Would that be fair to say?

[Howard Sellick]

I think the border changed after 9/11. The congestion is just one part of the problem; the other problem is U.S. customs.

[Brian Masse, NDP, Windsor West, ON]

Exactly.

[Howard Sellick]

I'm NEXUS-approved because I'm back and forth. My wife is an American and I have children who live in the U.S. In Canada, the NEXUS program works 100 percent. On the U.S. side, I don't even go in the NEXUS lane any more. It's easier for me to go in the regular lane.

[Brian Masse, NDP, Windsor West, ON]

This is the problem. We've been signing agreements, like the Shiprider agreement and others, which claim they're going to de-thicken the border. They haven't, and it's because of the administrative processing issues that are taking place. The new border crossing we hopefully get in Windsor—we're just waiting for Michigan to finally act—will hopefully open up some new channels and better lanes. But it's also the processing that seems to be lost.

I would like to quickly ask anyone who wants to comment, how has Buy America affected your companies? That's a huge issue. There's the Buy American, which was brought in in 1936, and there is Buy America, which is the current barrier we're facing.

[The Chair, Conservative, James Rajotte]

Mr. Sellick.

[Howard Sellick]

With regard to Buy America, that's a tough one. The hard core of the product that we manufacture has a lot of American content in it, especially when it comes to hydraulics and things of that nature. That's a problem for us, because in order to produce this product and be competitive in the marketplace, we have to source the components from the United States.

[The Chair, Conservative, James Rajotte]

Does someone else want to comment on that question?

Mr. Shaw.

[Sam Shaw]

In terms of global threats, looking at the carbonization of the oil sands is a bigger threat than Buy America right now. I think it's vigilant for us as a Canadian population to tackle that issue, because they are certainly not doing the same thing with the Russian oil and so forth.

I think we need to be vigilant and I think we need to be global.

[The Chair, Conservative, James Rajotte]

Okay, thank you.

We'll go to Mr. Jean, please.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, Mr. Chair.

With regard to that, Russian oil, California crude, Venezuelan crude are all more carbon intense than oil sands from Fort McMurray. Certainly if you look at what's happened in Nigeria—oil flowing freely in the rivers—and the violence that's brought about as a result of different conflicts over oil in different countries, none of that happens in northern Alberta; none of that happens in Canada. It's a great story, and I think we should talk about it a lot more.

In fact I'd like to congratulate Mr. Masse today. There's been more attention by our federal Conservative government in his riding—more money spent than any other constituency in Canada. One of the first bills we passed as a government was Bill C-3, the International Bridges and Tunnels Act, which facilitated the ability of the federal government to move forward on things like international crossings, and the loan to Michigan, etc.

I mean, there's been no more attention paid by this Conservative government to anywhere in Canada than Mr. Masse's riding, and I would think he would do nothing but thank us for that today. Notwithstanding that—

[Brian Masse, NDP, Windsor West, ON]

I'll show you how to get results.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Yes, we're very good at it. Thank you, Mr. Masse.

To the Canadian Solar Industries Association, how many people work full time for the industry in Canada?

[Patrick Bateman]

Within the Ontario photovoltaic industry in 2011, the figure is 8,200. Within the rest of the country, we could expect something in the region of 2,000 individuals.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

So that would be about 10,000 people across Canada.

Now, in this particular industry, 80% of the workers are in Ontario because it's heavily subsidized by the Ontario government. That is the reason why obviously there are more. Is that fair to say?

[Patrick Bateman]

That's correct. The Ontario program is the most comprehensive of all policy frameworks within Canada today.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

In fact, it is my understanding that it is the most comprehensive in most of the world, except for possibly Australia and some places in Europe.

[Patrick Bateman]

That's correct. It's the most attractive.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I'm not going to go into particulars about the studies and how much it would cost to produce solar panels if it weren't subsidized. Let's face facts: you wouldn't be in business.

I would make a comment, though, on LEED buildings. I looked at building a LEED building in downtown Fort McMurray, and the prices I got were substantially more than conventional construction. In fact, the price I got was $32 million, compared to somewhere in the neighbourhood of $27 million.

Would it be fair to say that a LEED building would cost somewhere between 20% and 30% more than a traditional conventional building?

[Patrick Bateman]

To speak to Mr. Brison's points earlier on, the up-front capital cost does have a premium. I wouldn't be entirely familiar with it as a percentage, but over the lifetime of that building, one could expect that the total operational costs would be less or would—

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Over a 30- or 40-year period, yes. I understand that. Thank you for that.

Now, I would like to talk a little bit about the Association of Equipment Manufacturers. I have been in a family business since 1967. It's a great pride for my family to have that opportunity. How many members do you have in Canada and the United States? I looked on your website and I couldn't find the information.

[Howard Sellick]

That's a good question.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

That's why I'm asking.

[Howard Sellick]

It's got to be around 2,000 members.