Industry and Technology Committee on Feb. 9th, 2026

[The Chair, Liberal, Ben Carr]

I call the meeting to order.

Good afternoon.

I hope that everybody had a good weekend in their constituencies.

Colleagues, just as a reminder, if your earpieces are not in use, please ensure that they are on the sticker in front of you to protect the health and well-being of the interpreters, who are working hard on our behalf here today.

Pursuant to Standing Order 108(2), the committee is resuming its study on the subject matter of Bill C-15, an act to implement certain provisions of the budget, and, in particular, clauses 389 to 398, 589 to 591 and 597 and 598. You will recall I received a letter from the chair of the finance committee asking us to undertake some of the work in relation to Bill C-15, as is common practice, to reduce the workload. We have done so.

We already heard from witnesses in relation to this last week. Joining us today, we have Mélanie Joly, Minister of Industry.

The minister is joined by Charles Vincent, senior assistant deputy minister, industry sector; and Samir Chhabra, director general, marketplace framework policy branch.

[Charles Vincent, Senior Assistant Deputy Minister, Industry Sector, Department of Industry]

I'd be pleased to speak in both languages.

[The Chair, Liberal, Ben Carr]

All right.

This is Canada, so I can choose to pronounce your name in either language.

[Charles Vincent]

Absolutely.

I'm comfortable speaking both languages.

[The Chair, Liberal, Ben Carr]

Well, then, we'll go fifty-fifty.

Colleagues, this is a nice change of pace from the in camera reviews of studies we've been doing, so I welcome the opportunity for the discussion.

Minister, you have 10 minutes for your opening remarks.

We will then proceed to questions from members of the various parties, as usual.

The floor is yours, Minister.

[Mélanie Joly, Liberal, Minister of Industry]

Thank you, Mr. Chair.

I'm pleased to be here today to talk about why the budget implementation act really matters, and why it's such a key part on how we move Canada's industrial strategy forward.

Right now the global economy is changing fast; we know that. Competition is intense; supply chains are being reshaped, and countries around the world are moving aggressively to secure the industries of the future. In that context, Canada cannot afford to stand still. We need to be strategic, consistent and, above all, able to act. That's exactly what the BIA allows us to do. It's the tool that turns policy direction into real-world action. It strengthens confidence in our markets, modernizes the rules that govern our economy and gives businesses the predictability they need to invest and create jobs here at home.

I say this with a sense of real concern because, at a time when workers and communities are looking to Parliament for leadership, the continued delays around the BIA are preventing support from reaching people when they need it most. These measures were designed to respond to very real pressures facing workers and key industries, yet progress is being slowed, not by substance but by obstruction. It is disappointing to see Conservative members choose delay over delivery, and the consequences are not political; they are human. Workers are left waiting; communities are left uncertain, and businesses that want to invest are left without the clarity they need.

Budget 2025 Implementation Act, No. 1, will help us support key sectors: clean technology, advanced manufacturing, critical minerals and the digital economy. Governments around the world are moving quickly in these sectors, but so can Canada.

The strategic response fund is a good example, giving the government the ability to support major projects, attract significant investments and protect critical industries. This legislation lays out the rules for the fund to do what it is supposed to.

Canada's auto strategy supports that approach. It is designed to strengthen the entire chain, from critical minerals and battery manufacturing to the assembly of zero-emission vehicles. Budget 2025 Implementation Act, No. 1, will support the strategy by ensuring clear, modern and predictable market rules for a sector in the midst of a major transformation.

In this context, I would like to take a moment to highlight the working group that we're setting up, which brings together partners from the Government of Ontario and the federal government.

The objective over the coming weeks is clear: Bring the right players together to develop a solid and credible engagement plan to move forward. In practical terms, this means convening and inviting decision-makers to the table. We will work with key mayors, including those of Ingersoll, Brampton and Oshawa, as well as other mayors from Ontario's group of automotive municipalities. Among our immediate goals are building the next Honda Civic in Canada and securing the production of the next generation of the Toyota RAV4. We also want to hear from other companies about their plans so that we can maintain and grow automotive production in Canada. We will use our defence industrial strategy as leverage.

I'm also pleased to announce today that the members of this task force committee will be Flavio Volpe, president of the Automotive Parts Manufacturers' Association; Lana Payne, national president of Unifor; the Honourable Vic Fedeli, Ontario's Minister of Economic Development; Premier Doug Ford; and me. The task force will first begin with these members. However, we will seek to bring in additional partners, including representatives from the new technology sectors—because we know we have the best and brightest in the country—and including also the Ontario Auto Mayors, the Global Automakers of Canada, Toyota, Honda and the Canadian Vehicle Manufacturers' Association. Their expertise and leadership both at the federal and provincial levels will be essential assets in guiding the group's work and ensuring constructive dialogue with all partners. The overall objective is simple: to write the next chapter of Canada's automotive industry together.

Together, Budget 2025 Implementation Act, No. 1, the strategic response fund and the auto strategy form an integrated, consistent approach, one that gives us the tools to act, support workers and communities, and ensure Canada's attractiveness as an investment destination for the industries of the future.

Budget 2025 Implementation Act, No. 1 is more than just numbers on a page—it's a strategic tool. It builds confidence, modernizes rules and gives Canada the ability to act decisively in a rapidly changing global economy.

I would now be pleased to answer the committee's questions.

[The Chair, Liberal, Ben Carr]

Thank you very much, Minister.

Colleagues, before we begin, as I reflect on the last time we had an opportunity to gather in such a setting, I'll give you a friendly reminder that I will be very generous in ensuring that folks have the opportunity to ask questions and answer questions. I'll be fair with the clock. There is no need for us to try to fight for that space. I will gladly and generously create it for us.

With that, we will enter into our line of questioning.

Ms. Dancho, the floor is yours for six minutes.

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

Thank you, Mr. Chair.

Thank you, Minister, for being with us again today.

Last week, you and the Prime Minister announced a $2.3-billion taxpayer-funded subsidy for Canadians to purchase electric vehicles. As you know, the subsidy is available for American-made electric cars, which we found quite shocking given what the Americans are trying to do to our auto sector. You're well aware that 5,000 jobs have been lost and countless others.

Can you explain the rationale of allowing taxpayer-funded subsidies, up to $2.3 billion, to go towards the purchase of American-made electric vehicles?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

With regard to the auto strategy, the objectives are clear. There are two of them. The first is to support auto production in Canada, which I think we all agree on here. The second is to make sure that we help the industry get to a place where the rest of the industry in the world is, which is basically electrification. By 2039, 40% of all the cars sold in the world will be EVs. While the Americans are taking their own decisions, we will be at the forefront of this industry. We won't just stay idle.

To your point, I want to make sure that we're supporting auto production in Canada—

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

Minister, the point is that you created a subsidy program, a very generous one of $2.3 billion, a significant taxpayer investment for electric vehicles.

Why did you not disallow the American vehicle market to have access to that? Given what the Americans are doing to our auto sector market, it is odd to me, as well as to everyone at this table and the auto sector workers who have lost their jobs, that our tax dollars can go towards subsidizing the American market.

You mentioned that we should be helping all auto sectors. I don't agree that we should be helping the American auto sector. I'm not sure why you do.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

First and foremost, everybody—industry, Premier Ford, unions and consumer groups—is in favour of the strategy. Why is that? They get the fact that we're supporting those who invest in us.

What is important in your question—which the Conservatives have, unfortunately, not alluded to—is the fact that we have countertariffs on U.S.-made vehicles. However, the reality is—

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

I appreciate that, Minister, but I am trying to watch the clock.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I'm sorry. I want to make sure I finish.

[The Chair, Liberal, Ben Carr]

Yes, Minister. You have 20 seconds.

Madam Dancho, I've paused it for the duration of her answer.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

We have countermeasures. When American automakers reduce their production in Canada, we reduce their market access. We just did that with Stellantis, where 50% of the cars they used to send to Canada now, if they're sent, have tariffs. It's the same for GM, which has 24.2% less market access.

If you look at them, the incentives are linked to the fact that it is all to support domestic production in Canada.

[The Chair, Liberal, Ben Carr]

Thank you, Minister.

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

One or possibly two vehicles manufactured in Canada are eligible for this subsidy. The last time your government brought forward a similar EV subsidy, 99% of it went to foreign electric vehicles. We can assume a similar situation will happen with the EV subsidy you announced today. Again, I'm not quite sure why you would design a program wherein Canadian taxpayer dollars could go towards benefiting the American auto sector.

Can you explain why that's ethical in the situation we're in today with job losses, which is the explicit goal of the Trump administration?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Obviously, the U.S. tariffs are creating this.

Unfortunately, the Conservatives have been long to denounce the tariffs against the auto sector. You even had a colleague, the member from Oshawa North, who was freelancing last week. Until he was reminded that he was representing GM, and that GM auto workers were being impacted by the tariffs, he said nothing about it.

That being said and if we put that aside, what is important is that we are all about affordability. We want to make sure people have access to cheap EVs, that they can embrace electrification—

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

That's including American EVs.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—and that we can have more EV auto production in Canada. It's also so that people can have access to cheaper EVs—

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

There aren't a lot of options to buy Canadian-made EVs, as you know.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—which is what Canadians are looking for.

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

That leaves very little option for Canadians. There are a number of options in the U.S. within the subsidy rules as you've established them. Again, we're quite shocked that you've created a program wherein Canadian taxpayer dollars will benefit the American auto sector.

It's quite simple. Do you agree that this is ethical given what they're doing to our auto sector?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

The reality is that we have auto manufacturers from the U.S. here in Canada. We have GM in Oshawa. We do. We have Stellantis in Windsor. We have Ford in Oakville. We want to make sure we keep their footprint—

[Raquel Dancho, Conservative, Kildonan—St. Paul, MB]

Are you saying it's a negotiation strategy?