Thank you, Mr. Chair and members of the committee, for the invitation to appear today. Mr. Justice Gomery has done his work. I'm pleased to add 15 minutes. That's not a difficulty.
I must say I look forward to the discussion today. I have enormous respect for the work of this committee, for what's been achieved over a number of years by the committee. I look forward to a strong, positive working relationship.
As I begin, I should just say I do have three officials with me. There are many fine people who work for the Government of Canada, but I can say categorically that I have here with me amongst three of the finest I've experienced in my time in government: Mr. Dicerni, who is one of the most experienced deputies in the government; Paul Boothe, an associate deputy who we have recruited as a bright light from western Canada to the Government of Canada; and Mr. Legault, who is my legal counsel, who is a fine lawyer whose counsel I rely heavily upon. So I'm pleased they're here with me.
Today I'm going to take the opportunity to discuss several items: firstly, the proposed sale of part of MacDonald Dettwiler and Associates, MDA, to Alliant Techsystems Inc., ATK; secondly, counterfeit and intellectual property; thirdly, the service sector; and fourthly, the challenges facing the manufacturing and forestry sectors.
With such a broad range of issues on the table, I will try to keep my opening remarks reasonably brief to allow ample time for questioning. We will stay a little longer, as required.
Firstly, I would like to speak to the proposed acquisition of MDA by Alliant Techsystems. As you may know, the strict confidentiality provisions of the Investment Canada Act apply and do not allow me to make specific comments on specific cases.
Now, with the agreement of Alliant Techsystems, I can confirm that I have received an application for review under the Investment Canada Act. I can assure you that any investment review conducted under the act is performed rigorously, and it includes consultations with affected provinces and other federal government departments and agencies. Members can rest assured that I will not approve this investment unless it demonstrates a net benefit to Canada.
I have with me a two-page letter that I would like to table with the committee, Mr. Chair, and perhaps it can be circulated. I understand there are copies in both official languages. It deals with the issue of confidentiality and the restrictions I face as the minister. This specifically arises from subsection 36(1) of the statute--the Investment Canada Act--which basically says that all information obtained, essentially in the administration of the act, is subject to a confidentiality restriction that actually contains criminal sanction if it is knowingly violated. I think this will be familiar to some of the people at the table. It places some challenges for us as parliamentarians in terms of responding to some specific questions. I would be pleased to discuss the letter, Mr. Chair, after everyone has had a chance to read it.
I can assure you that the government--myself as minister--will take all the steps necessary to ensure that the company's contractual and other obligations are respected and that the interests of the Canadian taxpayers are protected, regardless of the ownership of MDA. I know we'll discuss this in more particularity.
I'd like to also address, in passing, the issue of copyright. I think it's fair to say, Mr. Chair, we live in a world that is getting faster. Intense global competition, information technology, and the Internet are reshaping how businesses compete and how commerce functions. The prerequisites for economic success today are quite different from what they were only a few years ago.
Sometimes when I speak publicly I like to point out to people that when you throw away one of those greeting cards that sings a tune as you open it--to your mother or daughter, as the case may be--you're actually discarding the same amount of computing power the world had at the end of the Second World War. That puts in context just how quickly the world moves today and how fast commerce unfolds.
The real engine of growth on the way forward is the human mind, designing innovative projects, transforming services, and creating whole industries on the strength of an idea or a Canadian innovation. This is a world in which applying ingenuity and bringing new products and services to market is what will distinguish leading-edge economies from economies that don't succeed. We need to be in the successful group.
Members of the committee, a strong and effective copyright framework is essential to all of that. It's essential to a faster-growing, competitive, knowledge-based economy, and it's vital for promoting the creativity required to maintain Canadian status as a cutting-edge competitive economy. Updating and improving the Copyright Act will serve to strengthen this innovation and creativity, and it will have a positive effect across the entire Canadian economy.
The government is aware, and I'm well aware as minister, that there are many differences of opinion on how best to update the statute. While some advocate stronger protections, these protections must be crafted in a manner that protects the broader Canadian public and society. Recognizing these differences, the government will be looking into moving ahead with updating and improving the act.
You also expressed an interest in your motion in discussing Canada's service sector. I would say to you that this is a good news story. Our service sector has shown a remarkable record of achievement. It's the single largest sector of the Canadian economy, and it's been responsible for most of the recent employment growth in our country. Average wages in some service sectors are well above the national average, and the sector has also recorded remarkable productivity enhancements in recent years.
I'll turn briefly to the manufacturing and forestry sectors.
Manufacturers and processors are major contributors to Canada's economy and employ Canadians in many communities across our nation. I am well aware that many manufacturers face challenges. There are no simple answers for this. Manufacturers will have to adjust to remain competitive; our policies are helping manufacturers do exactly that, by creating the right business climate to succeed and to compete.
The government's actions to implement the Advantage Canada framework have delivered important benefits for manufacturers and processors by helping them to invest and compete.
The government's actions to implement the Advantage Canada framework have delivered important benefits for manufacturers and processors by helping them to invest and compete. We've improved the overall business climate by providing tax relief: we've lowered corporate tax rates and we've eliminated the federal capital tax, all to help improve liquidity.
Budget 2008 builds on strengthening Canada's tax advantage by providing an additional $1 billion in support of Canada's manufacturing sector, with an additional three years of accelerated capital cost allowance treatment for new investment in machinery and equipment. This will continue to help the manufacturing industry to invest and to improve productivity.
We introduced an S and T strategy in 2007, and it has received wide acclaim. Budget 2008 provides an additional $654 million over the next three years to secure our leadership in the global marketplace through research and innovation.
The auto sector, which we will speak of today, is a major driver of the Canadian economy. The sector has to be at the forefront of innovation in order to remain competitive. Budget 2008 provides $250 million over five years for an automotive innovation fund and will support the development of greener and more efficient vehicles. This will be good for the environment and will also help preserve high-quality, high-paying jobs in Canada.
The government continues to work on reducing as well the administrative and paper burden on Canadian businesses. This will help business be more competitive, but that is not all, ladies and gentlemen. With the $33 billion Building Canada plan, we are modernizing Canada's infrastructure, with a focus on transportation corridors, on gateways, and on infrastructure that will benefit business, including manufacturers.
The government is also investing in people, in skills, and in training so that manufacturers will continue to have access to the best educated, most skilled, and most flexible workforce in the world.
In short, we are working to create an environment in which manufacturers and other businesses can be more productive and innovative. We are therefore also working to create well-paid jobs for Canadians.
We will continue to work with Canadian manufacturers and other stakeholders to further improve the business environment, and we have urged the provinces to take complementary action.
Mr. Chair, as I draw to a close, I would mention that we are committed to ensuring that the forest product sector is strong and successful as well. We are working hard to lay the groundwork for an environment where this industry can succeed and prosper. Budget 2006 provided $400 million to encourage long-term competitiveness, to assist worker adjustment, and, in the context of western Canada, to address pine beetle infestation.
The new $1 billion Community Development Trust, announced in January 2008, is also in place to assist vulnerable regions and laid-off workers.
In closing, through Advantage Canada, we have attempted to introduce measures to stimulate business by lowering taxes, by reducing unnecessary regulations and red tape, by building new border capacity, and by creating a skilled workforce.
We are determined to ensure that favourable conditions are in place to support Canadian business.
Going forward, we will continue to enhance our competitiveness and our capacity for productivity, innovation, and investment.
I'm pleased to respond to your questions, Mr. Chairman.
