Evidence of meeting #31 for Industry, Science and Technology in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investments.
A video is available from Parliament.
Deputy Minister, Department of Industry
Again, I think these are questions that are best put directly to Statistics Canada. We can take this question on board and come back to you with a specific answer.
Having worked on the preparations for the 2016 census, I know that these are the issues that are at play.
December 4th, 2014 / 10:35 a.m.
Conservative
Joyce Bateman Conservative Winnipeg South Centre, MB
Thank you to all of our witnesses for being here. I really appreciate the work you do. I appreciate the difference you're making in terms of our positioning in the G7. We're all part of the same team here, and you're making a huge impact.
There's one specific part of the minister's remarks that I would like to zero in on. We really have had tremendous growth in the economy since the recession, particularly in manufacturing. You know, it was predicted maybe a decade ago that we wouldn't have much manufacturing. We thought this was an area on the decline. Clearly we have experienced tremendous growth in this field.
I believe the minister said manufacturing accounts for more than $166 billion of our GDP. I thought it was “million”, but it's “billion”. That's 10% of all economic activity in our country. The industry also employs 1.7 million Canadians, and most of them, I understand, enjoy having a full-time job and it's good pay.
Could you explain this? I'm particularly interested in how you are supporting this sector and how you're using.... The estimates indicate that this year you're giving some $294,000,000 to the Atlantic Canada Opportunities Agency, $252,000,000 to the regions of Quebec, and $161,000,000 to western diversification. I've rounded off the figures. In the context of the manufacturing industry, how are you working in partnership with those regional agencies, which are clearly being well funded under this set of estimates, to make a difference for all Canadians and tap into these new trade markets that we have clearly opened up recently?
Deputy Minister, Department of Industry
I'll start and then let Philip Jennings help me out here.
As you said, Canada's manufacturing sector directly contributes 10% to 11% of our GDP and employs over 1.7 million Canadians. Why it's so important, though, is that typically manufacturing is about innovation and also is oriented to exports. In terms of innovation, the manufacturers account for almost half of the total R and D expenditures in Canada among all firms. I believe it is the most export-oriented area of firms in comparison to services or more commodity-based firms.
Minister Moore always refers to the manufacturing sales in Canada and how they have risen by 2.5% to $54 billion in July, and this really has been a pattern that has been in place now in five of the past six months. This is very positive. It's showing that manufacturing is rebounding.
In terms of the question on regional development agencies, I formerly was a vice-president in the Atlantic Canada Opportunities Agency. Typically I meet, as deputy minister of Industry Canada, with my colleague deputies from time to time. They have quarterly meetings, so this year I think I've been twice to their quarterly meetings. They focus very much on supporting businesses in the various regions of the country. Their programming is somewhat different from region to region, reflecting the different needs of those regions. However, overall it's fair to say that they are focused on promoting manufacturing because of its innovation and export orientation.
Conservative
Joyce Bateman Conservative Winnipeg South Centre, MB
How do you work specifically in partnership to achieve that goal and to ensure no overlap?
Deputy Minister, Department of Industry
Well, a very concrete example is the advanced manufacturing fund, which was raised earlier, where we are hoping to soon come out with announcements in that area. The department has been working very closely, in fact, in reviewing the projects related to the advanced manufacturing fund in partnership with FedDev Ontario, which administers the advanced manufacturing fund.
Philip, is there anything you wanted to add on this?
Assistant Deputy Minister, Industry Sector, Department of Industry
Yes.
I'll just mention that in terms of the advanced manufacturing fund, we have a formal arrangement with that agency. For certain elements of the proposals they essentially draw on our expertise to be able to add those insights in terms of their review of the projects. However, there are other programs that other agencies also run where from time to time they actually do consult with Industry Canada and work with us in terms of trying to add in that perspective.
We also have other departments, such as Natural Resources Canada, that run programs where they actually draw on the expertise that exists in the industry department to be able to essentially get some advice on, for example, the market relevance and potential of what is being proposed, or the innovation potential that we see given the sector-specific expertise that exists in the industry department.
Conservative
The Chair Conservative David Sweet
Thank you very much. That's all the time we have, colleagues.
On behalf of the entire committee, thank you very much for your very concise and spot-on answers. There are a couple of follow-ups. I'll wait to receive those from you, and I'll distribute them to the committee.
The meeting is adjourned.
