Evidence of meeting #52 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Bédos  Co-Founder, Alliance for Visitor's Tax Refund
Lee  President, Frontier Duty Free Association
Scoffield  Chief Executive Officer, The Canadian Tax Observatory
Lefebvre  Richmond—Arthabaska—des-Sources, CPC
Mueller  President and Chief Executive Officer, Aerospace Industries Association of Canada
Arcand  Chief Economist, Canadian Manufacturers and Exporters
Petelle  President and Chief Executive Officer, CropLife Canada

October 6th, 2026 / 1 p.m.

President and Chief Executive Officer, Aerospace Industries Association of Canada

Mike Mueller

Thank you for the question.

Again, I haven't seen the legislation, but we would be in support of what you described.

Again, we're supportive of the outcomes that are required with respect to defence procurement. The defence procurement industry is very much looking towards, as I said in my opening remarks, an efficient, effective and timely investment into the industry and building up the industry across the board, so we're very supportive of any mechanism that does that.

When I say “effective”, that's where we can unpack some of the items that we are looking towards. Again, it's that predictable, long-term demand signal for industry that's required. My hope and expectation is that the new legislation will enable that organization to have clear transparency around the rules of procurement that are there, which need to continue, and then again, continual engagement with industry so that industry is brought into the discussion earlier versus being left at the back end of the procurement process, which then involves some of the issues that I talked about before.

Again, I'm more focused on the outcome of this versus the specific nuances and how we get there. As long as we get to that outcome, we're supportive.

1 p.m.

Liberal

Steeve Lavoie Liberal Beauport—Limoilou, QC

Thank you, Mr. Mueller.

Mr. Arcand, thank you for being here.

Earlier in the meeting, you talked about the productivity megadeduction for businesses, which is a key point for businesses in Canada, Quebec and my riding of Beauport—Limoilou. It's quite a significant measure. From one end of the country to the other, it's clear that Canada is really making a difference.

How do you see that from a business perspective? Will it enable businesses to manage their liquidity better, and better reinvest in their growth? How do you see things playing out in terms of the economic impact this can have on the market?

1:05 p.m.

Chief Economist, Canadian Manufacturers and Exporters

Alan Arcand

I don't have specific numbers about the impact, but obviously it's a challenging time for manufacturers, and investment has been trending down given the U.S. trade disruption and the underlying uncertainty.

The fact that this program is permanent is really key. Referring back to the Defence Investment Agency talk about long-term demand and the fact that this sector operates on a very long time frame, now that they know that this program is going to be in place down the road, they're more confident about making that first investment. They get the immediate expensing right away, but they know equipment's going to depreciate and they're going to have to make this investment again in five, 10 or 15 years, and they know that program's there. I think it really helps with bringing that initial investment in.

Steeve Lavoie Liberal Beauport—Limoilou, QC

Do you think that provides predictability for businesses?

1:05 p.m.

Chief Economist, Canadian Manufacturers and Exporters

Alan Arcand

Yes, for sure. There's definitely more predictability, absolutely. They know the program's going to be there forever now, and that's obviously positive for investment.

Steeve Lavoie Liberal Beauport—Limoilou, QC

Thank you.

The Chair Liberal Karina Gould

Great. Thank you very much, Mr. Lavoie.

On behalf of the committee, I would like to thank our witnesses.

If it is the will of the committee, we shall adjourn.

The meeting is adjourned.