Industry Committee on Nov. 19th, 2018

Evidence of meeting #138 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was forward.

A video is available from Parliament.

On the agenda

Supplementary Estimates (A), 2018-19: Vote 5a under Atlantic Canada Opportunities Agency, Vote 1a under Canadian Northern Economic Development Agency, Votes 1a and 5a under Canadian Space Agency, Vote 1a under Copyright Board, Votes 1a and 10a under Department of Industry, Vote 5a under Department of Western Economic Diversification, Vote 1a under Federal Economic Development Agency for Southern Ontario, Vote 10a under National Research Council of Canada, Vote 5a under Natural Sciences and Engin

MPs speaking

Also speaking

John Knubley Deputy Minister, Department of Industry

Lisa Setlakwe Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry

Mitch Davies Senior Assistant Deputy Minister, Innovation Canada, Department of Industry

Dan Albas Central Okanagan—Similkameen—Nicola, CPC

Paul Halucha Senior Assistant Deputy Minister, Industry Sector, Department of Industry

David de Burgh Graham Laurentides—Labelle, Lib.

Philippe Thompson Assistant Deputy Minister, Corporate Management Sector, Department of Industry

Éric Dagenais Assistant Deputy Minister, Industry Sector, Department of Industry

Michael Chong Wellington—Halton Hills, CPC

4 p.m.

Senior Assistant Deputy Minister, Innovation Canada, Department of Industry

Mitch Davies

I would profile, in the last budget, the $700 million in new funding for IRAP. It is a singular investment in start-ups. Businesses that at some point we'll know the name of start somewhere and have that initial help.

We're happy that we have this website platform to get people access to the programs that are there and get it to them in two minutes or less, because they don't have time. They need government to be coherent and to be able to give them the answers they need.

I appreciate the time to comment.

4:05 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Thank you.

4:05 p.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you.

We're going to go to Mr. Albas. You have five minutes.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Thank you.

Deputy Minister, earlier in response to my NDP colleague here, you mentioned that you are currently working on a small and medium-sized response, specifically on steel and aluminum tariffs.

Could you just explain what you meant by that?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

I meant what I said. The details of that have not yet been made public, but we are looking at exactly what needs to be done there.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Is there a reason why? Can you maybe elucidate some of the details as to why you're looking into that?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

The simple answer is that the SIF program itself tends to look at larger firms.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

It's over 200 employees usually. Is that what the limit is?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

Yes.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Many small and medium-sized entrepreneurs I've spoken with are either eating the tariffs—and thus the price goes up and their customers are just not making as many orders because the price is higher—or.... Pardon me, it's the reverse there. They're either passing it along or they're eating the tariffs and thus their profitability and their ability to capitalize is an issue.

Is that similar to what you're hearing from small and medium-sized businesses?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

Totally.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Okay.

Can you provide us with an update on the consultations on revisions to the 3,500 megahertz band?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

Well, the consultations took place, and now we are reviewing exactly what the next steps will be on the 3,500 megahertz band.

The decisions have not yet been made, but we hope to come forward with that in due course.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

I've heard from many who are concerned that their Internet service in rural areas may be lost in order for cities to have more 5G.

Will the ministry ensure that no rural customers will lose service due to any changes?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

We will do our darndest to take into account the challenges that the rural citizens have in this area, in the context of the 3,500 megahertz band.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

That leaves me with cold comfort there.

In regard to the Canadian Space Agency, I see there is just over $27 million for funding for RADARSAT Constellation Mission. Is that with the current delays, or is that in anticipation of that? What I mean to say is, will there be further need for funding of that mission due to its current delays?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

No.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Okay.

Since the Ottawa tornado, we've been discussing wind issues at this committee, or at least some of us have been talking about that. We've been asking about industry's preparedness when it comes to these kinds of cases, because Canadians are concerned that in an emergency they may not be able to use their cellphones.

Obviously, being so close to home, I would hope that your ministry has been looking into this. Does any of the funding in this current allocation in the supplementary estimates (A) have anything to do with studying that issue?

4:05 p.m.

Deputy Minister, Department of Industry

John Knubley

I believe that the answer would be no. To reassure you, though, clearly critical infrastructure issues, like the tornado, involve an important telecom component, as you identify.

We look at that on an ongoing basis, working with other agencies, such as the public security agencies, for example.

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Beyond just assuring us that it is a concern, are there any documents or reports that your department has made public in order that the public can be reassured that this is being looked at?

4:05 p.m.

Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry

Lisa Setlakwe

I'm not aware of any reports. We've been in the business of these kinds of emergencies, whether it's forest fires or others, so we are equipped and resourced to deal with that.

However, I'm not aware of any reports per se on this particular—

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Okay. When you say you're equipped and resourced for that, did your department take any swift action during the recent Ottawa incident?

4:05 p.m.

Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry

Lisa Setlakwe

We were at the ready. There's—

4:05 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

What does that mean?

4:05 p.m.

Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry

Lisa Setlakwe

Well, there are staff dedicated to making sure that infrastructure is either in the state it needs to be in to support emergency responders—