Good afternoon and thank you, Mr. Chair. I want to thank the committee for having me.
First of all, I'd like to introduce the people with me. They are Richard Dicerni, Deputy Minister at Industry Canada; Carole Swan, Senior Associate Deputy Minister at Industry Canada; and Kevin Lindsay, Chief Financial Officer. As you can see, my team is highly qualified.
I'll be pleased to answer all your questions, but first, I'm going to take the time allotted to me to tell you a little about the direction Industry Canada has taken in the past few months. Being five months since my last presentation to the committee, I would like to take a few moments to do a bit of a review.
As you know, Industry Canada's mandate is to expand and encourage the growth of the Canadian economy. We think it is necessary to continue modernizing and improving Canada's market place frameworks in order to ensure stability, fair conduct and competition for businesses, consumers and all Canadians.
We want to encourage investment in innovation. By creating a positive business climate through the measures in Budget 2006, we see greater access to capital, thriving entrepreneurship and efficient and productive allocation of resources. Canada's new government is working to reduce barriers to entry to Canadian markets, as well as to reinforce business confidence and consumer trust in their economy.
Since I last appeared before the committee, I have had the opportunity to meet my provincial counterparts in Halifax, in September. As a result of that meeting, I firmly believe that the governments — the provincial and territorial governments, as well as the federal government — will be able to work together to make progress on the issue of interprovincial trade. At that meeting, we issued a press release in which we stated our will to see that, by 2009, there is real freedom of movement of individuals across the country.
We firmly believe in internal trade, and we believe that the more we lower barriers to internal trade, the more Canadian businesses will be able to establish themselves in global markets and achieve economies of scale.
Canada's new government is aware that foreign investment plays an important role in the Canadian economy. Foreign investors bring knowledge, capabilities and technology that can help increase the productivity, efficiency and competitiveness of Canadian firms.
As you know, the international competition for foreign investment is intense. Canada must create and maintain a positive environment that signals to the rest of the world that this is a great place to do business and that our country is open to international trade.
Your manufacturing study identifies certain challenges. I had the opportunity to read your preliminary report, and I see you've clearly defined a number of indicators that the manufacturing sector has a challenge to take up with regard to competition, that is the rising Canadian dollar — some say we should call it the weakness of the U.S. dollar — increased energy costs and emerging competition from the Asian countries. All Canadians, together, must find creative solutions to attract foreign investment and achieve the goals we have set for ourselves, which are a more productive and more open economy.
These issues that you have clearly defined are a reality for most industrial sectors. You have had occasion to meet the stakeholders of various industries, who have come to tell you all about their challenges.
It will be a pleasure for me to read your final report in the coming weeks and to forge a consensus with you on an action plan for the manufacturing sector.
Let's talk about our Canadian manufacturing sector for a few minutes, more specifically the aerospace and defence industry. I'll also talk about other industries a little later. The Canadian aerospace industry is a world leader that enables us to have fair business opportunities. It supplies products, services and components of a very high technological level.
I met with Canadian companies while at the Farnborough International Air Show this summer and again at the national association meeting this fall. I understand the dynamics of the aerospace industry in which they operate. We can only be proud of the way this industry meets the challenges it faces. Our government is still committed to supporting the aerospace and defence sectors so that they continue to be highly dynamic.
Canada's automotive sector has been called the industrial backbone of our nation. I recently had the opportunity to meet with the Canadian Automotive Partnership Council. I had occasion to meet the industry people in Toronto and to visit businesses in the automotive sector. I was very pleased to see how the groups and people cooperate on a number of common issues. My department and I are going to continue meeting with these people and attending their forums so that we can develop a highly competitive automotive sector.
Our government knows that some of our sectors, such as manufacturing, have major problems. The clothing, textile and wood products sectors have been particularly hard-hit. I'm very pleased that this committee is focusing on solutions in detail. I look forward to reviewing your report's findings for ensuring that those industries remain competitive. As you know, there have been job losses in the manufacturing sector, but it must be emphasized that those losses have been more than offset by the strong job gains in other areas. So far this year, 210,000 new jobs have been created in Canada.
