Evidence of meeting #137 for Industry, Science and Technology in the 44th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was telesat.
A recording is available from Parliament.
Liberal
The Chair Liberal Joël Lightbound
It seems the interpretation isn't working.
I'll speak in English for a bit to see if the translation is working.
Is it working, Mr. Garon?
Liberal
Liberal
Chandra Arya Liberal Nepean, ON
Thank you.
When it comes to protecting these industries.... They are the most vocal companies. In fact, we rightly put a tariff on Chinese steel products coming into Canada, but we also put a tariff on steel products that are not manufactured in Canada, indirectly benefiting the foreign owners of steel industries, who can export to Canada from their manufacturing plants elsewhere in the world.
Again, steel and aluminum companies export only to North America. At least for the steel industry, I know very well that 90% of their exports are only to the United States and Mexico. It's probably almost the same case with the aluminum sector. We have signed 15 or 20 trade agreements with 51 countries across the world, but these two sectors, where we have an inherent advantage.... We are not exporting anywhere else. We talk about the Indo-Pacific strategy. ASEAN is a big, growing market for Canadian products, but not in these two sectors.
Why is it that we continue to protect foreign-owned steel industries while not encouraging them to increase installed capacity and employment in those sectors?
Acting Deputy Minister, Department of Industry
Thank you. I appreciate the question.
The dynamics around the steel and aluminum industry are complex and global, so the dynamics the Canadian industry is facing are not, as you know, an entirely domestic creation. It's directly linked to overcapacity and overproduction worldwide.
That, in part, is why the government has put tariffs in place.
Liberal
Chandra Arya Liberal Nepean, ON
I'm sorry. You know, everybody says that the Chinese are selling cheap, subsidized steel and aluminum, but foreign owners have plants all across the world, and they're all profitable. The argument that Chinese manufacturing in steel and aluminum is killing the industry worldwide is wrong.
When we give concessions, subsidies and protection to domestic companies, why are we not demanding that they increase their installed capacity here?
Acting Deputy Minister, Department of Industry
I take your point on government policy. Again, I think the action to date of the government has been on tariffs. Within our own industries, and within industries like defence, where there is significant spending, we focus on, generally, Canadian supply chains.
However, I take your point. It's a valid one.
Liberal
Chandra Arya Liberal Nepean, ON
Okay.
I'll come back to the mines to mobility strategy.
One of the key factors that does not get discussed much is the demand for electricity in the coming years and decades as we move towards electric vehicles. In my view, we can crank up power generation quickly with natural gas production—use natural gas to produce electricity. However, when it comes to the grid for the transmission and distribution of that electricity, because of the jurisdiction problems.... Jurisdiction is with the provinces. I don't think investments are being made in anticipation of the increased demand for electricity. While, as I said, we can generate more electricity in a short period of time, establishing the grid for transmission and distribution is not taking place.
Is the federal government doing something about that?
Acting Deputy Minister, Department of Industry
Again, regarding issues of jurisdiction around electricity and its production.... Obviously, there's the grid, and then there's production. The role of our department is primarily to spur and invest in innovation in that space. That's why we do investments in things like SMRs.
With regard to the production of electricity, which, as you noted, is under provincial jurisdiction, I will leave it to colleagues at NRCan or to the provinces to comment on that.
Liberal
Chandra Arya Liberal Nepean, ON
How can we succeed in our mines to mobility strategy if one key component is not in your jurisdiction?
What action is the federal government taking jointly with the provincial governments to address this issue?
Liberal
The Chair Liberal Joël Lightbound
Mr. Arya, those are very interesting questions, and I appreciate the conversation. I wish we could go on for longer; however, we've reached the end of the time for this committee meeting.
Thanks to you all for your participation.
I want to thank the witnesses for being here today. Mr. Bilodeau, Mr. Tessier and Ms. Gregory, thank you for taking part in our work.
Have a good day.
The meeting is adjourned.
