Government Operations Committee on Nov. 29th, 2023

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

I will. In fact, I want to talk about—

[The Chair, Conservative, Kelly McCauley]

Allow me to finish.

Please be aware of the repetition issue, Mr. Sousa. Please go ahead.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

I'm very sensitive to that as well.

I appreciate the member's concerns about it, because what is repetitive is the fact that they have continuously misinformed and suggested that there are excessive numbers of foreign workers coming to Canada on a permanent basis, suggesting that all of the taxpayers' money is being put up front, when in fact that's not the case. That's why I think it's important for us to take a look at what Stellantis, in regard to this amendment, is putting forward. It's a major milestone that will create thousands of Canadian jobs for a net-zero emissions economy in the future.

Here is what happened in Ottawa when we announced this. The future of Canada's transportation sector is green, and so to create middle-class jobs and position our economy for success in a low-carbon world, the government is bringing major international investments to Canada that will secure a strong electric vehicle battery supply chain. That is the crux of what we're doing here.

What's important isn't what we're saying. It's not just what we're putting forward. The Premier of Ontario and the mayor of Windsor, alongside the Minister of Innovation, Science and Industry, went on to do a joint venture that will see a total investment of over $5 billion Canadian in a facility to manufacture batteries for EVs in Canada. This will position Canada as a global leader in the EV manufacturing supply chain. The battery facility will be located in Windsor, Ontario, and will supply Stellantis plants in Windsor and across North America. The facility will be operational by 2025. It's not just about what we're supplying in Windsor and in that trade corridor. It's all across Canada that will benefit.

The Government of Canada has been working closely with both of these companies to secure this investment, given that the project aligns with the government's commitment to develop a Canadian battery ecosystem that supports clean technology and industrial transformation. This announcement and what's built into this amendment within these contracts is yet another step forward. The project, as noted, should create around 2,500 well-paying permanent jobs. More importantly, this investment will not only position Canada as a global leader in the production of EV batteries, but it will also support the development of a sustainable domestic battery manufacturing sector in Canada.

It's interesting that we hear some of the concerns, and I appreciate that because we all want to know as much as we can about the impacts it will have on the Canadian economy and on Canada's investment through its position. In some respects, as noted in the past, it's like our putting up some equity in the deal. The primary equity, the initial tranche, as I mentioned, is coming from Stellantis.

This is what the Conservative Minister of Economic Development, Job Creation and Trade had to say on this very issue back in March. He said that, “Through...strategic investments across integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion annually”, we're able to claim our leadership in the emerging North American EV battery industry. He noted that this partnership with the federal government, Stellantis and other players in Windsor enables us to be at the forefront of a new EV industry, not unlike what has been happening in former industry investments. The fact that we do not participate in amending this motion will give cause for concern to those partners.

The Conservative premier of the province—the cousins of the members opposite who are trying to jeopardize this very contract—said this:

Attracting this multi-billion dollar investment will secure Ontario's place as a North American hub for building the cars and batteries of the future. As we secure game-changing investments, we're also connecting resources, industries and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains. Every region of Ontario will benefit with thousands of jobs being created and a—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I have a point of order.

[The Chair, Conservative, Kelly McCauley]

We have a point of order, Mr. Sousa.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

What is the relevance to the motion, which is about the secrecy of the contracts and not about a dissertation from somebody else about the battery industry? The motion is not about the validity of the battery industry; it's about the secrecy. If the member could stick to the secrecy amendment he put forward and why he thinks it should be secret and not public in spending that money, it would be appreciated.

[The Chair, Conservative, Kelly McCauley]

Thank you, Mr. Perkins.

He does have a point there, Mr. Sousa, if you could please get back to your amendment.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Yes, I'd like to clarify.

I appreciate the member's concern, but the amendment is not about secrecy. The amendment is about disclosure. The amendment is about ensuring that the disclosure is made. It's not in secret. It's enabling members opposite to appreciate what is being put forward.

I can read the amendment to clarify, for your benefit, that this is not about secrecy.

[The Chair, Conservative, Kelly McCauley]

That would be repetition.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Then I will continue, Mr. Chair, about the issue as to why the Conservative premier of this province is very concerned about this investment and the notion of disclosing confidential material that puts at jeopardy the very issue.

The Premier of Ontario says that this places Ontario in the future. He says, “As we secure these game-changing investments, we're also connecting resources, industries and workers in northern Ontario.” He also says that “Ontario will benefit with thousands of jobs being created, and a stronger economy that works for everyone [in every region].”

Stellantis is concerned about this very issue. You're putting them on notice. You're giving them the risk of disclosure that you'll benefit from seeing.

I remind everyone watching that the members in this committee will have the right to review the documents. They will have the right to see the material to protect the interests of the taxpayer and of Canadians. They'll have the opportunity to see exactly what's being put forward.

The mayor of Windsor states:

Stellantis is Windsor's largest employer [right now] and has a rich history in this community. Chrysler began operations in this community in 1928 and has employed generations of Windsor–Essex...at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor's strategic location as the home of Canada's electric vehicle future—

Let's be mindful. This investment is the crux of enabling that EV future.

—As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all.

We have partnerships with various stakeholders recognizing the importance of what is being done with this investment, and we want everyone to be aware of what that investment means to our GDP, to our positioning and to our future growth, and enabling a green economy and enabling a new economy as we go forward. Instead of being stuck backward, we're trying to move it forward. By disclosing some of what is being put in these contracts, it also exposes us to the possibility of not getting those future investments.

Don't take it from me; take it from LG Energy Solution. Together with Canada and Stellantis, they say:

[We aspire] to become the world's leading battery manufacturer by powering EVs in North America. LGES will position itself as a critical player in setting up a battery value chain in the region as we provide solutions to our potential customers through our collective, unique technical skills and mass-producing capabilities.

They also say, and this is relevant to this contract, that “Creating a joint battery manufacturing plant in Canada, one of the leading nations in renewable energy resources, is all the more critical for LG Energy Solution as we aim to power more EVs around the world.”

It's not just about enabling the manufacturing in Ontario and in Canada, it's enabling us to be at the forefront of exporting to other parts of the world. Imagine, right now we don't have that opportunity. The members opposite will put at risk the opportunity for us to actually be at the forefront, just as they put at risk Avro Arrow back when they did away with that aviation strategy.

We cannot allow EVs to be at risk by doing what you're proposing.

Mr. Chair, the CEO of Stellantis said, “Our joint venture with LG Energy Solution—”

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I have a point of order.

[The Chair, Conservative, Kelly McCauley]

I'm sorry. We have Mr. Perkins, on a point of order.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

This is the third or fourth time during this member's dissertation that I've pointed out relevance. He's not speaking to the actual amendment, which is about viewing the contracts in secret rather than in public as the motion says. Simply repeating what others have said in news releases or articles about their business plans is not relevant to the actual amendment.

[The Chair, Conservative, Kelly McCauley]

Thank you, Mr. Perkins.

This has been brought up repeatedly. The amendment is a lot more narrowly focused than the motion itself. Therefore, the debate should be a lot more narrowly focused. I ask that you please stick to the amendment before we have to move on to another speaker.

Go ahead, Mr. Sousa.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Thank you, Mr. Chair, I appreciate that.

Certainly the amendments that I put forward talk about the relevance of keeping some of the information confidential, with the ability for members opposite to review. I'm reinforcing that message because the disclosures by Stellantis say that their joint venture with LG strategies is a step to achieving an aggressive electrification road map. If they are competing in the U.S. and Canada, in the end, they said they're, “Grateful to the Municipal, Provincial and Federal levels of government for their support and commitment to help position Canada...”, and this—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I have a point of order.

I didn't hear a reference there to the contracts being secret in that quote, so I'm wondering about the relevance.

Again, I think you have warned him—

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

It's not about secrecy.

[The Chair, Conservative, Kelly McCauley]

Continue, Mr. Sousa.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

The member opposite keeps saying it's secret. It's not secret. Nowhere in here does it say secrecy; it says disclosure. It refers to versions of the agreement by which we will disclose, and provide...receipt...“under the supervision of the clerk”, so that members can see it. It talks about other stakeholders and other relevant matters in this contract that are affected by the reckless nature of what the opposition is trying to do, which puts in harm's way the very people I'm speaking to.

They are saying that they are not to be trusted, that Canada can't be trusted to set up an agreement and keep things confidential, and that Canada's not a place to make investments and to receive foreign direct investment.

They are telling people outside Canada that free trade doesn't matter here, that we do not protect free trade, and that we are going to be the kind of government that is going to disclose and put our prosperity at risk because we want to see the contract. Fine.

The amendment would give members the opportunity to see it, but not to jeopardize the deal by showing it to the general public and to their competitors.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I have a point of order.

[The Chair, Conservative, Kelly McCauley]

Can I interrupt you, Mr. Sousa, for another point of order?

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I don't believe a single quote that he had from the company mentions anything about whether or not there's a commercial restriction on this being released publicly. I think he's making things up, and it's not relevant to his motion.

[The Chair, Conservative, Kelly McCauley]

I am reading your amendment, Mr. Sousa, and you're not actually referring to it. You're not referring to anything in your amendment that you just stated. Could you stick to your amendment, please?

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Mr. Chair, it is all about my amendment. I'm not trying to challenge anyone here. Given the fact I put the amendment forward, I recognize the purpose of the amendment, and the purpose of the amendment is to provide some confidentiality. That is what I'm talking about, and that is what you're putting at risk.

LG Energy Solution, the leading global manufacturer delivering advanced lithium batteries to electric vehicles here in Canada, is suggesting that this investment occurs because of that trust. Stellantis, the leading global automaker and mobility provider to offer clean and affordable solutions, is adopting this because it can trust us.

Details of this agreement are subject—

[The Chair, Conservative, Kelly McCauley]

I'm sorry, Mr. Sousa, but I'm going to interrupt you here.

To those at the back of the room, and on all sides, I realize this is captivating for everyone—and probably the four or five people watching on CPAC at home—but if we could have....