Industry Committee on April 30th, 2020

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

Yes.

My colleague Maryam Monsef will outline exactly how long this may take and the relevant programs. All I know for sure at this point is that the time frame must be changed, because the current reality is very problematic. This issue is a priority for our government.

[Martin Champoux, Bloc, Drummond, QC]

Thank you.

You also said that you would get this work started as soon as the crisis is over. However, this matter is urgent right now. I imagine that teams are ready to proceed with the installation or, at least, to continue to implement measures to speed up the project. Why can't this work begin immediately, Minister Bains?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

We'll start soon. The strategy and the program already exist. We invested a great deal of money in them in the most recent budget, about $1.7 billion. I'm sure that my colleague Maryam Monsef will be outlining solutions soon.

[Martin Champoux, Bloc, Drummond, QC]

Thank you.

[The Chair, Liberal, Sherry Romanado]

Thank you, Mr. Minister.

Our next six-minute round goes to MP Brian Masse.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

Thank you, Mr. Minister, for being here.

When the Prime Minister was asked in southern Ontario about the most pressing issue, he responded by saying, “transitioning away from manufacturing-based employment as a driver in the economy”. Do you agree with the Prime Minister's assertion?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

I do apologize, Brian.

Can you please just state the initial part? I didn't hear that part because of connectivity.

[Brian Masse, NDP, Windsor West, ON]

That's okay.

When the Prime Minister was in southern Ontario and was asked about the most pressing issue, he responded to the London Free Press by saying “transitioning away from manufacturing-based employment as a driver to the economy”.

Do you agree with the Prime Minister?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

The Prime Minister and I have promoted advanced manufacturing and increasing our footprint and investing in key sectors like the automotive sector and the aerospace sector. The supercluster initiatives for Next Gen underscore that.

Clearly, we're seeing that community mobilized now and we are very supportive of the manufacturing sector.

[Brian Masse, NDP, Windsor West, ON]

My concern is that the overall culture of manufacturing in Canada has been treated poorly over the last number of decades, resulting in a massive decline not only in jobs but also in GDP contribution to the country. Now it's being trumpeted because it's needed. My concerns come in line with some of the investment happening.

I think of Connaught Labs, for example, which was the Canadian laboratory responsible for working on the polio cure and which dates back to 1913. It was [Technical difficulty—Editor] entity.

I think of Nemak. As you know, Mr. Minister, we invested in Nemak, a manufacturing facility here in Windsor, but the research and development are now going to Mexico, and public money that was announced by your government is now being used to produce for Mexico. The work is being moved there right now.

When we're doing some of these contracts and supply initiatives, what is being done to protect that investment to keep it in Canada, including the intellectual property and the investment in the machinery, so that when this is done we will continue to have that investment in Canada? Are those stipulations part of the deals?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

You raise a very good point, which is that we have some world-class manufacturing here in Canada. We want to mobilize that for made-in-Canada solutions. Canadian companies are stepping up. They are providing solutions. They are helping Canadian front-line health care workers. In this process, we're generating intellectual property; we're generating ideas and know-how, and we want to see those benefits in Canada.

When we engage with companies, we make sure that we clearly align ourselves with made-in-Canada solutions that will remain here in Canada, that will benefit Canadians, and that also enable us to help other jurisdictions by exporting to those countries.

That has always been our goal. We want to see Canadian companies succeed within Canada but also succeed internationally, and when it comes to intellectual property, research and development, we want to make sure those efforts remain in Canada.

[Brian Masse, NDP, Windsor West, ON]

With regard to the purchasing of equipment to scale up, is that in binding contracts with the supply chains that we're supporting now?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

That's on a company-to-company basis and depending on what the equipment is, but ideally our overarching goal is to make sure we generate more research and development opportunities in Canada, that we generate more IP in Canada, and that Canadians see those benefits.

[Brian Masse, NDP, Windsor West, ON]

Okay.

One of the challenges we've had in the past with the SR and ED tax credit, for example, has been that it has created micro economies for our researchers and consultants to apply for the grants for companies, and they get a cut of that.

With regard to the contracts we're doing now for the supply chain that you're enhancing, there are some very good stories, which you were really good at outlining. There are many hundreds and thousands of others taking place.

What percentage is being allocated to fees or third party administration? Are they being handled right through by Industry Canada officials themselves directly with the employers, or are we also having part of the government support going to either consultants, advisers or administrators in third party groups?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

We are dealing with the companies directly. As I said, we have a portal and over 6,000 companies stepped up and identified opportunities to scale up and support Canadian efforts to build made-in-Canada solutions for personal protective equipment. On many of the initiatives we've put in place we deal with them directly, as I said.

If you want any particular numbers around how much we have allocated through the different programming, we can let you know, but some of the key programs are innovative solutions Canada, as I highlighted in my opening remarks, the strategic innovation fund, and the industrial research assistance program.

I know that SR and ED is still a very popular program, which is administered, of course, by Finance, and we deal very closely with industry to understand their concerns.

[Brian Masse, NDP, Windsor West, ON]

I can tell you that for the portals you have set up people are getting good service from them, but my concern is that we build that portal system versus hiring third parties or an outsourcing of that, especially if people need answers.

Really quickly, as I know my time is running out, are we doing any contract work with privacy issues that need to be enhanced? The Privacy Commissioner has asked for modernization. You've talked about that before.

[The Chair, Liberal, Sherry Romanado]

Unfortunately, Mr. Masse, that is all the time for this round.

Our next round of questions is a five-minute one, and we will start with MP Rempel Garner.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Thank you, Madam Chair.

Thank you for coming to committee, Minister. It's nice to finally see you here.

Can you confirm that former ambassador MacNaughton is advising the federal government or your department in any way regarding the federal government's response to the COVID-19 pandemic?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

Is Ambassador MacNaughton advising ISED? Is that your question?

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Yes, or the federal government in any way.

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

I'm not aware of any formal commitment from him. I know that he is engaged with many, including me, in giving us solutions and ideas on how to help Canadians, so I speak to him on a regular basis.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Okay. That's good to know. The reason I ask is that The Logic reported today that former ambassador MacNaughton told a CIBC Capital Markets call that Palantir is advising the federal government on its response to the COVID-19 crisis.

Can you confirm what he said, which was that Palantir is advising the federal government's response on the COVID-19 pandemic?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

That's a very good question. We can get back to you on the specifics around that.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Is what he said true, given that you talk to him frequently?

[Navdeep Bains, Liberal, Mississauga—Malton, ON]

I speak to him as a friend. He is someone who has guided me through many personal issues with my kids and my family. He's been someone I've worked with, so it's in that capacity—