Evidence of meeting #55 for International Trade in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was markets.
A recording is available from Parliament.
11:50 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
The first thing you need to admit is that the softwood lumber industry and other parts of the forest industry are going through a very difficult time right now. It does not relate to the softwood lumber agreement.
11:50 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
It relates to a very severe downturn in the United States housing market. It is affecting many sectors of the U.S. economy. It is something that happens on a regular cyclical basis.
Yes, there are some job losses in the forest industry, but I can tell you absolutely that if we did not have the softwood lumber agreement in place, and the infusion of over $5 billion into Canadian lumber companies to help them tool up and survive the downturn they're now facing, that industry in this country would be in very serious trouble.
11:50 a.m.
Conservative
The Chair Conservative Leon Benoit
Mr. Julian, you're out of time. I gave you an extra minute.
We will now go to the second round, starting with the official opposition.
Mr. Maloney will start, and if there is time left, we'll go to Mr. Temelkovski.
11:50 a.m.
Liberal
John Maloney Liberal Welland, ON
I have three quick questions, Mr. Minister, two of local interest, one of general interest.
Of local interest--to Mr. Allison and me--you mentioned $2.1 billion in funding to support gateways and border crossings. You specifically referenced Windsor-Detroit. In Niagara there is an anticipated border crossing, a new bridge, between Buffalo and Fort Erie. They're almost ready to have the shovels go in the ground. Would you anticipate that this funding pool would be available to that bridge authority as well?
Two, there is also a mid-peninsula vehicular corridor being planned, from the western portion of the GTA area to the border. Would that come under your gateway, in partnership with the provinces?
And in general application, you made reference to the EDC making strategic equity investments. Would that also include perhaps the ability to finance imports that are also critical to Canadian exports?
Then Mr. Temelkovski has a few more questions.
11:55 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
Let me deal first with the gateway questions.
My portfolio includes responsibility for the Asia-Pacific gateways and corridors initiative. That is essentially a pan-western Canadian initiative, as you know, to build up the transportation corridors, the ports, the transportation systems that connect the heartland of North America with the heartland of Asia. That's really where my jurisdiction is.
It has big implications for Ontario, as you're alluding to, because the Asia-Pacific gateways and corridors in many cases feed right into Ontario, and then either feed products into the Ontario marketplace or possibly transship them on down into the United States.
The budget also contains a larger gateways and corridors infrastructure envelope. The projects you describe I think would properly fit in that broader gateways and corridors envelope. But it wouldn't be one that I would control; it would be one that Minister Cannon would be responsible for.
11:55 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
Well, Export Development Canada has a pretty broad mandate. You asked whether it would get involved in helping to finance imports that are...?
11:55 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
Yes.
I believe their mandate would allow them to do that. I don't know the degree to which they do that right now; I would have to ask my colleague. But I think their mandate is clearly broad enough.
11:55 a.m.
Conservative
The Chair Conservative Leon Benoit
Could you send some information to the committee on what their mandate is, whether it does allow that now, and how much it is used?
11:55 a.m.
Conservative
The Chair Conservative Leon Benoit
Thank you very much.
Mr. Temelkovski, you still have three minutes.
11:55 a.m.
Liberal
Lui Temelkovski Liberal Oak Ridges—Markham, ON
Thank you very much, Mr. Chair, and thank you, Mr. Minister.
Just to follow up on the very capable parliamentary secretary here, citing some of the numbers, prior to January 2006, 36 consulates were closed and 43 were opened. Since January 2006 until today, four closed, zero opened--not that the dates matter.
11:55 a.m.
Some hon. members
Oh, oh!
11:55 a.m.
Liberal
Lui Temelkovski Liberal Oak Ridges—Markham, ON
Mr. Minister, you mentioned in the global commerce strategy that you're looking to hire a sector of business experts to help provide intelligence, tools, and advice. Can you expand on some of these tools and the advice, but most of all, maybe on the intelligence that's required?
11:55 a.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
I'd be happy to do that.
But first I always anchor it back with global value chains, global supply chains. I'll give you an example.
If you look at Canada's relationship with the United States, you can break it down regionally and say, what is our trade and investment relationship with California? Then within California you quickly get into Silicon Valley, and you discover that the largest venture capital pools in the world and the largest reservoirs of innovative, new technologies come out of Silicon Valley.
So what we will do is hire people. And ideally--this is Emerson talking, not necessarily staff--we want to hire more people with industry knowledge and expertise, people who have been in the industry and who know the technologies, know the companies, and know how to create private sector wealth. So what we will do is hire, in some cases, on contract. In some cases, we'll deploy public servants to ensure that we are able to understand the new technologies that are developing in California and the research that's going on in the universities in California, and we will be able to interface that with Canada's industry. We'll look for Canadian industries that should be tying in more closely with the venture capital pools of California, with the technology opportunities, and with the universities. So we'll look for people who can do that.
Now, I gave you the California example. If you went to China, you'd want a different type of individual. You'd want someone who had a familiarity with the opportunities in China in a very specific way.
There's no point going into a foreign market and just waving the Canadian flag, saying “Buy Canadian”. A little bit of that, I guess, goes a short distance, but not very far. You've actually got to get into the market and understand, in depth, what kinds of services are needed and what kinds of Canadian companies are technically capable, or whether in fact it's not a company needed but a combination of Canadian companies that puts together a constellation of skills, products, and expertise.
And then what role does government play? In some markets, government plays a bigger role. China would be an example of that, where if you don't have government present, you're going to have trouble. We know that. So you look at each market separately and you hire the kinds of people who can create wealth for Canadian companies in that market.
Noon
Conservative
The Chair Conservative Leon Benoit
Thank you very much, Minister.
Now we'll go to the Bloc Québécois. Monsieur André, for five minutes.
Noon
Bloc
Guy André Bloc Berthier—Maskinongé, QC
Minister, I beg to differ with you when you claim that the government is doing a pretty a good job, particularly in the case of Quebec's manufacturing sector. Since your government came to power, we've lost over 70,000 manufacturing jobs in the province. At this rate, in three years' time, there will no longer be a manufacturing sector in Quebec. We've crunched the numbers. Urgent action is warranted.
Alberta's manufacturing sector accounts for 7% of that province's economic activity, whereas in Quebec, the sector represents 90% of our exports. Overall, 59% of our GDP is impacted by these policies.
In the budget, you proposed capital cost allowance programs to assist production. That might work. A tax reduction program for businesses was also proposed. However, when businesses aren't making any money because they've gone bankrupt, they aren't paying taxes. This measure doesn't really help businesses.
I really want to know what you intend to do. Clearly, the sector is adrift right now, and if the government negotiates more agreements with China, Korea and other nations, the situation will only get worse for us.
What steps does the government intend to take to address this situation? If action isn't taken quickly, we will be in a fine mess.
What solution do you foresee to resolve this serious, alarming problem?
Noon
Conservative
David Emerson Conservative Vancouver Kingsway, BC
Again, my portfolio is international trade, but I will venture beyond my mandate a little bit here.
Let's take some examples. Let's take the shipbuilding industry. We are putting in place a procurement program that will have a massive procurement opportunity for shipyards. As you know, the Davie shipyard has now been acquired by a Norwegian company, so there again is an example of a government initiative that is really running counter to the competitive marketplace.
We're saying we need a stable, secure, vibrant shipbuilding industry in Canada. You need to have the manufacturing of vessels here if you want to have maintenance. We need maintenance for security and other reasons, going forward, so we're buying into that.
If you look at what we're doing on aerospace and defence, again there is aggressive acquisition of defence-related procurements, with very strong commitments to ensure benefits to companies in the Canadian aerospace and defence sectors. Technologically, those are the richest sectors for technology and research in Canada.
A disproportionate amount--I know it's not enough, according to your party--of the benefits will go to Quebec.
12:05 p.m.
Bloc
12:05 p.m.
Conservative
David Emerson Conservative Vancouver Kingsway, BC
Your party has articulated that you want 60%, for example—
