Evidence of meeting #46 for Government Operations and Estimates in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was aluminum.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Ryan  Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
Nicol  Advisor-Analyst, Office of the Parliamentary Budget Officer
Cloutier  Quebec Director, Unifor
Laramée  Chief Executive Officer, Quebec Aluminum Industrial Cluster
Marcil  Vice-President, Public Affairs and Communications, Alstom

5:25 p.m.

Vice-President, Public Affairs and Communications, Alstom

Olivier Marcil

I'll start with the workers. We're going to design, prototype and engineer the new subway train in Montreal. We will do all the subcomponents. The car body and shell will be welded in La Pocatière, Quebec, and shipped to Thunder Bay for all the final assembly. We're going to test the train in Kingston, and finally it will be commissioned in Toronto.

Of the people who will work on this train, 85% will be Canadian. In terms of working hours, it has a tremendous impact. We've talked about over 900 direct jobs for people working on it, and 600 will be at Alstom alone. That's for the working hours.

After that, it's about the expertise of the supply chain. The aluminum will come from Quebec, and the carbon steel will come from Ontario. Different components will come from all across Canada. In terms of the value of the goods and products that will be in the train, it will reach 55% Canadian. Obviously, we would like to go higher than that at some point, but there's a limit to what the supply chain can deliver, and some components are not in Canada, for all sorts of reasons.

People say a lot that sometimes we're paying a bit more for our products because they are Canadian instead of being from low-cost countries. That's true. We need investments in Canada to produce here, but the return on investment for the taxpayer is different. It's not just about the cost of buying the product; it's about what stays in the economy, what is circling back into the economy and what is coming back in taxes for the treasury. All of this needs to be counted when we're looking at a very large project like NST.

Vince Gasparro Liberal Eglinton—Lawrence, ON

Clearly you're a supporter of the buy Canadian policy.

5:25 p.m.

Vice-President, Public Affairs and Communications, Alstom

Vince Gasparro Liberal Eglinton—Lawrence, ON

You talked about investment. I'd like to just drill down a bit on that, Mr. Marcil. Have you found that the buy Canadian policy has given your company the confidence to invest and reinvest in Canadian facilities and in workforce development more broadly?

5:25 p.m.

Vice-President, Public Affairs and Communications, Alstom

Olivier Marcil

It is giving us that confidence. It is giving confidence to the whole industry, not just Alstom—and even to the competition. Our competitors will be incentivized to localize in Canada following this.

That's exactly what we saw, for instance, in Australia, which has a strong buy local policy. It's the same thing in the United States, Israel and South Africa. Even in Europe there are some elements of buy local within the European Union. That has a strong industrial impact in the long run.

We need to have consistency, stability and predictability within the policies moving forward when all the large projects come to the market. That's important for the whole industry.

Vince Gasparro Liberal Eglinton—Lawrence, ON

Well, you'll definitely get stability from our government.

Thank you.

The Chair Conservative Kelly McCauley

Thank you, everyone.

Witnesses, thank you very much.

Mr. Cloutier, thank you for joining us again after last week.

Ms. Laramée, I have one quick question. Has your industry asked for the government to launch an anti-dumping investigation into some of the items that...?

5:30 p.m.

Chief Executive Officer, Quebec Aluminum Industrial Cluster

Charlotte Laramée

Not officially, but we are making a lot of representations to say that we have to protect local industry.

5:30 p.m.

Conservative

The Chair Conservative Kelly McCauley

Wonderful. Thank you very much.

Colleagues, if there's nothing else, we will adjourn. Whether the House is rising or not, depending on the rumours, we are still here Thursday for Canada Post.

We are adjourned.