Industry Committee on April 30th, 2020

[The Chair, Liberal, Sherry Romanado]

I call this meeting to order.

Before we begin, I'm sure you will join me in sending our thoughts and prayers to the Canadian Armed Forces members and their families. Following last night's tragic helicopter accident off the coast of Greece. To our fellow military families, we are with you.

Welcome to meeting number 11 of the House of Commons Standing Committee on Industry, Science and Technology. Pursuant to the order of reference of Saturday, April 11, the committee is meeting for the purpose of receiving evidence concerning matters related to the government's response to the COVID-19 pandemic. Today's meeting is taking place via video conference and the proceedings will be made available via the House of Commons website.

Members and witnesses, I would like to remind you that, before speaking, please wait until I recognize you by name. When you are ready to speak, please unmute your microphone and then return to mute when you are finished. When speaking, please speak slowly and clearly so that the interpreters can do their work. As per my normal practice, I will hold up the yellow card when you have 30 seconds left in your intervention, and the red card when your time for questions has expired.

I would now like to welcome our witnesses. With us today we have the Honourable Navdeep Bains, Minister of Innovation, Science and Industry; Mr. Simon Kennedy, deputy minister of the Department of Industry; and Mr. Paul Thompson, associate deputy minister, Department of Industry.

Minister Bains, you have 10 minutes to present, after which we will move to the rounds of questions. The floor is yours.

[Navdeep Bains, Liberal, Minister of Innovation]

Thank you very much, Madam Chair.

I want to thank all the committee members for inviting me here today.

I’ve worked closely with this committee over the last four and a half years, and I appreciate the excellent work you do on a range of important issues that impact Canadians and Canadian businesses.

Before I begin, I would like to recognize the efforts of all Canadians to follow the recommendations of public health officials and keep everyone safe.

This is a collective effort by all governments across the country. I've never been prouder to be part of team Canada. My thoughts are with the people who are suffering or who have lost loved ones to this pandemic. I also want to recognize the tremendous work of our front-line workers: the health care providers, the emergency responders, and the many, many Canadians who keep our homes safe and filled with food.

I also want to recognize the contributions of companies big and small, as well as those of our exceptional research community, and thank them for their ongoing work.

Let me start by addressing the restart of the economy.

We know there will be real impacts while the shutdown measures are in place, but we cannot lose sight of the significant gains we have made in keeping people safe. We need to restart the economy only when the time is right, when we are certain we can maintain the health and confidence of Canadians. There needs to be coordination based on science, data and expert advice to realize our shared ambition of seeing our country through this.

I’ll also address Canada’s industrial response to the COVID-19 pandemic.

Over the past month, we have put the full weight of the federal government behind a plan to recalibrate industrial policy and supply chains. We have deployed industry and innovation programming, such as the industrial research assistance program, the strategic innovation fund, the innovation superclusters initiative, innovative solutions Canada and many other programs, to rapidly scale up industrial production of masks, ventilators and other urgently needed goods.

Industry has answered our call. Through our online portal, we have heard from nearly 6,000 Canadian companies that have stepped up to offer their capacity and expertise. These firms are now pivoting towards making face shields, gowns and other much-needed goods to help keep front-line health care workers safe.

The mantra is simple: It’s buy, buy, buy and build, build, build to meet the needs of a pandemic on a scale the country hasn’t seen since Canadian industry mobilized to support the greatest generation overseas, and we are now starting to see the results of these partnerships.

Contracts are now in place for more than 30 million medical gowns. Well-known companies such as Bauer, Stanfield’s, Canada Goose and General Motors have begun producing personal protective equipment and we are working on contracts with 14 different companies to deliver millions of face shields.

Companies such as StarFish Medical have teamed up with key partners to produce ventilators using intellectual property first developed right here in Canada. More than a million litres of ethanol will be provided by Canadian distilleries through the hand sanitizers manufacturing exchange. As well, 55 million masks have been ordered, and we are working to step up mask manufacturing domestically so that we can assure Canada’s access to these vital pieces of personal protective equipment.

This shift has allowed us not only to respond to the need for protective equipment but also to keep many Canadians on payroll.

We've contacted every company that put its hand up. We're working with the other levels of government to leverage Canadian industrial expertise.

These partnerships highlight the innovative and collaborative spirit of Canadian industry, and we continue to challenge industry to come up with new and even more innovative solutions.

Throughout this process, companies of all sizes and all types, from every region of the country, have stepped forward with passion and commitment to do everything possible to help us fight the virus and keep Canadians safe.

In addition to working with industry, the government has been supporting Canada’s world-class scientists, medical experts and researchers in fighting COVID-19.

We're investing aggressively to develop a safe and effective vaccine. We want Canadians to have access to the vaccine and to treatments as soon as they're available.

Ultimately, we want to deliver a vaccine and other treatments so Canadians can return to their regular routines. We want to get the economy moving again and to pave the way for a smooth rebound in the aftermath of this pandemic. Whether we're talking about Canadian companies or world-class researchers at our universities, the co-operation has been excellent.

We all just want to get the job done. That is, after all, the Canadian way.

That concludes my remarks. Again, thank you for the opportunity to speak with your committee today. I'll be pleased to answer your questions.

Thank you.

[The Chair, Liberal, Sherry Romanado]

Thank you very much, Minister.

With that, we will move to our first six-minute round of questions.

The first person to have the floor is MP Tracy Gray.

You have six minutes.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you, Madam Chair.

Minister Bains, as you're aware, several provinces have put up checkpoints to screen or restrict those travelling interprovincially over the past month. Maintaining supply chains to get our essential goods moving across Canada is very critical during this time. I have heard concerns from truckers and shippers that further restrictions could hurt their ability to move these goods within a reasonable time frame.

Have you reached out to your provincial colleagues to ensure that supply chains aren't affected by these decisions?

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

I agree it's important to make sure that we recognize that as we move forward around restrictions, that is done with the sole purpose and goal of protecting Canadians' health and well-being. We are working very closely with our provincial and territorial counterparts. I am in continuous engagement and constantly in contact with my provincial and territorial counterparts regarding supply chains and the movement of essential goods, particularly when it comes to food supplies and medical supplies. Those are absolutely essential as we deal with this current health care crisis.

As we work with the provinces to remove some of these restrictions, we want to do so in a coordinated fashion.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Great. Thank you, Minister. Maintaining supply chains is essential during this pandemic and it's very critical.

Last Friday on CBC you weren't able to say the number of PPEs we've received internationally that were defective. Do you have this number now?

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

As you know, we're going to have challenges and issues when we procure personal protective equipment from our international suppliers. That's why I highlighted in my remarks on that interview and today as well the importance of building up domestic capacity.

I don't have a specific number to disclose at this moment, but I can assure you that we are ramping up domestic supply to deal with challenges we will face with our international supply chains, with our global partners, in procuring this very important piece of equipment. There is—

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you, Minister.

The question is, do we have the domestic capacity at this moment to make up the shortfall in those international deliveries? If you're not able to disclose to us what those numbers were, do we have the capacity to fill the exact shortfall in those deliveries?

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

We assess what we need by working very closely with our provincial and territorial counterparts. My colleagues Minister Anand and Minister Hajdu work with their provincial counterparts to understand their needs. We recognize that we need to do more, not less. We have to have sufficient amounts in the short term but also as we reopen the economy.

I can tell you right now that every single day we are ramping up domestic capacity in a significant way to deal with any potential challenges we will have with personal protective equipment.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you, Minister.

You've said in the past and you've said it here today, and I will quote you, “buy, buy, buy and build, build, build”.

How many PPEs has the government bought and how many are being built? Can you give us some specific numbers today?

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

Sure. Thank you very much for that question.

On face shields, with respect to how many we've purchased, it's close to 35 million, and deliveries have already started.

With regard to gowns, it's 30 million gowns that we've purchased, primarily from a lot of Canadian companies like Stanfield's and Canada Goose that have stepped up in a big way, and many other apparel companies as well. Those deliveries have started.

On hand sanitizer, again, it's 79 million units, with a significant amount being produced domestically as well.

For N95 masks, we have again ordered in the millions, and over five million have been delivered so far.

For surgical masks, over 300 million, again, have been purchased or have been ordered, and we've received 18 million thus far.

With regard to ventilators, this is an issue that's obviously of concern and that has received a lot of attention. We have produced or plan to produce over 30,000 ventilators in Canada, made-in-Canada solutions. Those deliveries have started as well.

Those are some numbers I can share with you today.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you, Minister.

As we're moving forward with this, what is your plan to move all of these essential goods between the provinces and territories?

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

As I indicated, my colleague, Minister Anand, works very closely with her provincial and territorial counterparts. They have a table set up between the federal government and the provinces, not only to identify the unique needs of each jurisdiction but also to understand how we can logistically make sure we're able to get the supplies out to them. We are coordinating with our provincial counterparts, and Minister Anand is the point person making sure that's done in a timely manner.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Minister Bains, breweries, wineries and distilleries have been hit hard with restaurant closures, event cancellations and few at-the-door sales. Some distilleries have answered Canada's call and are now producing sanitizers and disinfectants in our ongoing fight against COVID-19.

Have you spoken to your provincial colleagues about opening up interprovincial direct-to-consumer shipping to help these growing and now dramatically affected industries?

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

That's a great question.

This is something I've dealt with often with my provincial and territorial counterparts, but my colleague, Minister Freeland, is the minister responsible for intergovernmental relations as they relate to the Canadian Free Trade Agreement, and how we can better protect consumers and ensure that we have a better flow of goods. This is an issue that I will make sure to raise with her to convey to our provincial counterparts.

[The Chair, Liberal, Sherry Romanado]

Thank you, Minister Bains.

The next six-minute round goes to MP Erskine-Smith.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Thanks very much, Minister, for being here.

I want to focus on testing capacity. We are currently seeing 25,000 tests per day. We have the lab space and human resources to do more, and there are some challenges with supplies. Can you speak to some of the work your department has undertaken to ensure that we have the reagent and swabs that we need?

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

This is an issue that's really important because testing is another priority that we've identified with the provinces. One example that highlights how we dealt with that issue in a meaningful way is we received a significant shipment of essential chemicals required for the production of the reagent you identified. It arrived in Canada, and it essentially allows a company called LuminUltra to produce enough reagent for months of production.

As we continue to ramp up testing, we have that key ingredient, which allows a chemical reaction to detect the virus. That's an initiative that came about when that company, LuminUltra, approached us through that portal, and said that they could build that reagent capacity but needed some essential chemicals in order to do it. We were able to make sure they received that in a timely manner in order for us to continue to ramp up our testing.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Are you confident that we have the reagent capacity now to hit 60,000 tests per day?

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

The example I highlighted significantly ramps it up to about 500,000 tests weekly for the foreseeable months. We're also building up other measures to make sure that we have a sufficient amount of reagent. I can say that in the short term we have what we need.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Presumably, Health is setting the targets for us to hit with respect to testing capacity. Do you have a sense of the capacity that we require and that you are tasked with helping to build?

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

There have been different elements to this.

Of course, Health wants to work with the provinces, see what capacity they have and build that capacity. That's really been the goal. Flattening the curve is one aspect, but so is building up capacity and testing capacity.

We are working with the provinces to identify what kind of testing solution they're looking for. Really, they have the ability to ramp up testing, and we want to be there to support them. We are in constant contact with them through the Health department and the Minister of Health.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Minister, with respect to viral testing, we obviously have the lab tests, and with that New Brunswick company, we hope to have an answer to swab supplies, and to be able to ramp up to a minimum of 60,000, the day that we have the lab and human resource capacity for it. On the rapid testing, how much has the government invested so far with Spartan Bioscience?

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

That's a great initiative. Spartan Bioscience is an example of a Canadian company that we engaged early on through the industrial research assistance program to help with their prototype and proof of concept, with this diagnostic equipment that would allow for testing to be done up front and provide a rapid response, as you indicated.

We made a significant procurement purchase order with them to make sure that we can conduct over eight million tests. This is going to be critical for many of our rural and remote communities, as well as many of the clinics that are dealing with patients. As we look to open up the economy on the front lines, like the airports, this will be an essential tool.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

I can't agree with you enough that it is an essential tool for reopening. A capacity of a million tests doesn't go very far, I would say, as we look to reopen the economy.

Do we have a sense of what our investment translates into, in terms of tests and how much more investment is required to scale up to the necessary level?