Evidence of meeting #25 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 quebec.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Jeffrey Astle  Past President, Intellectual Property Institute of Canada
Michel Gérin  Special Advisor, Intellectual Property Institute of Canada
Pierre Richard  President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association
Réjean Poitras  Vice-President, Board of Administration, President and Executive Officer, Amisco, Quebec Furniture Manufacturers' Association

4:30 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

We're going beyond our area of expertise; however, we do know a bit about the Canadian market.

I would say that in Quebec we are very strong in the residential portion of the industry. In fact, it's higher than the 36% we were talking about in terms of the overall industry. In the residential portion, we're probably closer to 45% of the jobs and of the portion of the market that is made in Canada. As far as office furniture goes, I would say that Ontario is probably slightly stronger in that domain.

Now, why is Quebec as strong in furniture as it is? Perhaps that's also part of the question. I would say that the passion of these entrepreneurs, the owners of these companies, such as Mr. Poitras here, has enabled them to go through hard times, to change the way they used to do business—because that's just not acceptable anymore—and to really drive the quality.

4:30 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

I guess my question is this: what headwinds are you facing in Quebec versus Ontario? In Ontario, our hydro rates affect manufacturing everywhere. The cost of labour, I assume, wouldn't be that much different from Quebec's. What are the headwinds that you're facing in Quebec versus—

4:35 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

That are different from those in the rest of Canada?

4:35 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

Yes.

4:35 p.m.

Vice-President, Board of Administration, President and Executive Officer, Amisco, Quebec Furniture Manufacturers' Association

Réjean Poitras

I think they're very similar. In residential furniture, we all fight against China. Office furniture is a little different, as Pierre said, but in residential furniture, it's pretty much all the same.

4:35 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

Okay.

I've been going through some of the recommendations here. A lot of them are recommendations to either subsidize or provide some sort of financial relief. Do you have a non-monetary set of recommendations?

Quite frankly, I saw some in here that were related to “the implementation of new measures” being done “in collaboration with the industry”, “gradual implementation”, and reasonable timelines. In terms of non-monetary measures, is that the extent of what we should be focusing on in terms of our recommendations?

4:35 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

You're right. Many of the recommendations are monetary.

On the non-monetary side, I would say that the one you just mentioned is very important. When there are changes in government regulation and the industry is not consulted and finds out about it in a memo that's sent to the industry, it can be incredibly damaging to the industry. That's something that we need to be involved in, and when transition measures are possible, that's great.

As far as employment goes, one of the recommendations that's perhaps non-monetary is to help raise awareness that this is an industry where you can actually find a job. Many of the manufacturing sectors or manufacturing industries are not well known. In this market, it's not just about being an ébéniste. It's not just about being a carpenter. Many of these jobs in these companies are in video games. They are appealing to the youth of today, but they just don't have that perception.

We have a job to do in trying to attract people to the regions and also to attract the companies in big centres to raise awareness of what this industry is about. Perhaps that's something the government can do through its programs in raising awareness of the manufacturing benefits of jobs.

4:35 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

Okay. In your opinion, within your region, is there a shortage of skilled trades?

4:35 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

The answer is yes. There is a shortage of skilled trades. Number one is to attract the people. In some cases we can train them up pretty easily, but in other cases you do need labour that is a bit more skilled. That's correct. There is a shortage.

4:35 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

Very quickly, is there a specific skilled trade that there's a major need for?

4:35 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

Right now in Quebec, one of them is rembourrage. We also need people who sew.

4:35 p.m.

Conservative

Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON

Okay.

4:35 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

For sofas, etc., that is one of the areas that is very difficult to find people for at this time.

4:35 p.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you.

4:35 p.m.

Vice-President, Board of Administration, President and Executive Officer, Amisco, Quebec Furniture Manufacturers' Association

Réjean Poitras

We make metal furniture. We need welders.

4:35 p.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you very much.

We're going to jump to Mr. Sheehan. You have five minutes.

4:35 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Thank you very much.

My first question is about intellectual property.

How active is Canada's manufacturing industry in filing for patents, in your experience?

4:35 p.m.

Special Advisor, Intellectual Property Institute of Canada

Michel Gérin

I don't have exact statistics on that. It's possible that they are available at the Canadian Intellectual Property Office. Generally we know that Canada is lower in patenting than most countries.

The Canadian Chamber of Commerce produces a report on innovation. There's a comparison of countries, and the three main markets are the United States, Japan, and the EU, and more and more in China. Canada is always at the low end of the graphs in terms of per capita or per investment or per investment in R and D in terms of patent filing.

I don't know specifically about manufacturing, but there's the likelihood that it probably fits that overall picture.

4:40 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

That leads to my next question. I was going to ask what other countries are leading the way in filing for patents and intellectual property.

It's not just about saying their names as you did, but why. What do they have? What have they implemented? What kind of strategies, incentives, do they have?

4:40 p.m.

Special Advisor, Intellectual Property Institute of Canada

Michel Gérin

We talked, for example, about innovation bucks that exist in a number of countries—China, the U.K., France, and so on. They're incentivizing commercialization, getting the IP, commercializing the R and D, and so on. That is one aspect.

China also has a broader range of grants in terms of IP. It's also developing the culture. Jeff mentioned the importance of teaching about IP in high schools, universities, and so on. That's part of it too, developing that culture of innovation and a basic knowledge of IP.

That's why we see in the United States that there's a tremendous amount of patenting, and in China as well. In China, at first it was just the manufacturing, and more and more they have realized that they should own their IP as well. They're doing that much more.

It's a question of incentives, culture, legislation. We mentioned at the outset, for example, the privilege to protect communication with agents. On this, Canada was behind. It existed in other countries. That's part, as well, of building that culture and that framework wherein inventors and innovators are comfortable in thinking they should go get a patent or a trademark and hire an agent. They think that's what their neighbour is doing, that's what others are doing. They're comfortable that the system will work for them, that they won't be disadvantaged in court because they don't have that privilege while their American counterpart has it. It's things like that.

Those are things that we have been discussing over the years. Many improvements have been made. More could be done.

With regard to the framework, make sure it works, that it serves the innovators. Make sure people understand the importance of IP, of innovation, and then have the incentives to further encourage it. In those countries that are ahead, it's a combination of those elements.

4:40 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Thank you very much.

My next question will be for the furniture manufacturers.

You've touched a bit on the various sorts of skills needed to work in your industry. I have worked for the Ontario government doing some of that stuff in the past. A lot of the questions have been asked, but one of the questions I have—and you touched on it—is around the need for IT, high tech, the trades and the welding, etc.

As it relates to immigration, we've heard from other witnesses about the good and bad of it. Do you have any comments about immigration as it relates to acquiring the skilled labour, and not just immigration, but cross-provincial skills travel as well?

4:40 p.m.

Vice-President, Board of Administration, President and Executive Officer, Amisco, Quebec Furniture Manufacturers' Association

Réjean Poitras

Some employees come from the Maghreb, for example, and have engineering degrees or similar degrees. The experience we have had has been very good. In the whole group, meaning both businesses, there are about 250 employees, three of whom have technical or engineering degrees and come from that region, meaning Tunisia, Algeria or Morocco. The experience has been very positive.

At the same time, it is difficult to get them into the region. We are east of Quebec City, so it's in the region. However, for those who have chosen to settle there, the experience has been very positive. We would like to have more of them.

4:40 p.m.

President and Chief Executive Officer, Canadian Furniture Show, Quebec Furniture Manufacturers' Association

Pierre Richard

Perhaps I could add an example. One of our companies in the region recently hired five new Canadians who decided to settle in Montreal. Every Monday morning the company puts them on a bus to Lac-Mégantic. They work there until Thursday night. On Friday they get back on the bus and go back to Montreal. They have not integrated totally, because their families are still rooted where the social network is perhaps a bit easier, in Montreal. Hopefully they will take root in the region, but a lot of work is needed to attract skilled workers, or even workers, out into the regions.

4:40 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Thank you.

4:40 p.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you very much.

Mr. Stetski, you have two minutes.