Industry and Technology Committee on Nov. 3rd, 2025

[The Chair, Liberal, Ben Carr]

Thanks very much.

Mr. Ste‑Marie, you have the floor for two and a half minutes.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Mr. Chair.

It's quite appalling that Stellantis announced and shared the information in such a ridiculous time frame.

Mr. Jennings, I would like to ask you some questions about the PACCAR plant in Sainte‑Thérèse, which exports 90% of its production to the United States. The tariffs are disastrous for this plant. The minister said that she and her colleagues were looking into the possibility of the federal government purchasing trucks manufactured at the PACCAR plant as part of its procurement strategy.

Do you know of any other assistance programs currently available for this plant?

[Philip Jennings]

In September, the government announced a number of programs to support the various sectors affected by the trade war with the United States.

It is still not clear which are the right tools for PACCAR.

A $5-billion fund, the strategic response fund, was announced and earmarked to support the sectors at risk. If PACCAR wants to change course and shift to other markets or products, or to sign a contract with the federal government, which program would be the most appropriate? There is also liquid funding available through Finance Canada, which would be helpful for PACCAR, as well as funding from the Business Development Bank of Canada.

There are also other tools, as the minister indicated. In September, in its announcements, the government really emphasized that it will examine what we could do within our own domestic market, not only at the federal level but also at the provincial and municipal levels, to create a more attractive market for companies. That is still evolving and what was announced in September is an intention. For the time being, things are in development and we are looking into a more Canadian procurement strategy, with all the tools that are available federally. Further, those tools include not only what we purchase directly, but also the funding support we provide to companies, which we could thereby encourage to buy Canadian.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you very much for your answer. I am really keen to see what is in tomorrow's budget.

[The Chair, Liberal, Ben Carr]

Thank you, Mr. Ste-Marie.

Ms. Borrelli, the floor is yours for five minutes.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you, Mr. Chair. I'll be sharing my time with Mr. Falk.

Ms. Tanton, how is Innovation Canada ensuring that Windsor businesses, particularly small and medium-sized manufacturers, have fair access to procurement opportunities from these major projects?

[Stephanie Tanton]

Within Innovation Canada, we have a range of programs and services that we provide to industry to provide supports. The government most recently announced its buy Canada policies, which include considerations on how companies that are receiving contracts, receiving funding through programs and are looking to utilize the Canadian supply chain, so we are including—

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Ms. Tanton, excuse me. I really want you to answer the question with regard to the contract for the NextStar battery plant.

Are there provisions in that contract to make sure that local small and medium-sized enterprises are included in the procurement process?

[Stephanie Tanton]

I would have to look at the contract to see what is in there. I don't know that off the top of my head.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

I understand that, in section 6.1(c), collaboration with SMEs is discussed in the contract.

[Stephanie Tanton]

Yes. In all of our contracts—and we were talking about benefit commitments—we often include collaboration with other companies, whether those are R and D collaborations.... It varies per contract.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Are you telling me that this would exist in the Brampton contract as well?

[Stephanie Tanton]

I can't share the details of the Brampton-Windsor contract. As the deputy has said, we're working with the company at this time to be able to disclose that agreement.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you, Ms. Tanton.

[Ted Falk, Conservative, Provencher, MB]

Thank you, witnesses, for appearing here this morning.

Mr. Jennings, you are the deputy minister.

[Philip Jennings]

Yes, I am.

[Ted Falk, Conservative, Provencher, MB]

The minister has, on several occasions, indicated that she's going to take legal action against Stellantis.

As deputy minister, you would be completely aware of the contract that Stellantis has signed with the Government of Canada. Based on that knowledge, would you say that the Government of Canada has grounds to take Stellantis to court?

[Philip Jennings]

What I can say to this committee is that we have grounds to engage under the process that's in the contract with the company to have a better understanding of what its plans are and whether we can find resolution to the fact that the Jeep Compass was moved to a plant in the U.S.

[Ted Falk, Conservative, Provencher, MB]

Has the contract been breached?

[Philip Jennings]

At this point, the answer is that we think there are potential grounds that are leading up to a breach, but there's a resolution process that we have to follow and that we are following.

As the minister said this morning, she's launched that with a letter to Stellantis, which she sent today.

[Ted Falk, Conservative, Provencher, MB]

Was one of the breaches of the contract related to jobs guarantees?

[Philip Jennings]

I can't disclose the elements of the contract, but we think that they are on track towards a breach, unless we find resolution with the company.

[Ted Falk, Conservative, Provencher, MB]

What's the nature of that breach?

[Philip Jennings]

I'm sorry. I can't comment any further in terms of the specifics. However, there are a number of commitments made in the contract, and there are some of them that we think are on track towards a breach.

[Ted Falk, Conservative, Provencher, MB]

Mr. Jennings, this committee passed a motion that said that we would be examining the short-term and long-term commitments made with Stellantis. In order for us to do our work here, we need to have some answers, so we need to know whether there is a Canada-wide jobs guarantee that is in breach.