Evidence of meeting #3 for International Trade in the 40th Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was efta.
A recording is available from Parliament.
President, Local 1, Canadian Auto Workers Shipbuilding, Waterways and Marine Workers Council
That owner got SFF and also ACCA through his own country.
Conservative
President, Local 1, Canadian Auto Workers Shipbuilding, Waterways and Marine Workers Council
Now you would want to check that with our company and Mr. McArthur, but that's my understanding.
Director of Defence and Marine, Department of Industry
It's my understanding, as previously mentioned, that a foreign company may be able to utilize a capital cost allowance regime within their country, but I don't see how that can apply in Canada.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Okay. Could you just enlarge upon that a little bit? So a Canadian company can't access both, but a foreign company can? I don't see how a foreign company can access both.
Director of Defence and Marine, Department of Industry
I think that was my point. A domestic applicant to the SFF would have the option of utilizing the SFF or the ACCA.
Conservative
Director of Defence and Marine, Department of Industry
Right. A foreign company can make use of the benefits of the SFF but not within the Canadian tax regime.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Because the accelerated capital cost allowance is only for Canadian companies buying Canadian product--
Conservative
Director of Defence and Marine, Department of Industry
Correct. Sorry, you have my apologies if I misled you.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
--or if they're upgrading to better metal-cutting facilities or better technology.
Conservative
Bloc
Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you, Mr. Chair.
Good day, gentlemen, Madam.
You are absolutely right, Mr. Risser. This agreement does pose a threat to the shipbuilding industry. Rest assured that the Bloc Québécois is well aware of this fact. We will do everything in our power to urge the government to bring in a policy to develop the shipbuilding industry in Quebec. I myself am from eastern Quebec. I am the President of the eastern Quebec caucus and the marine industry in this region is vitally important and deserves to be developed. I want you to know that Bloc Québécois supports these initiatives.
Moreover, the Bloc Québécois is disturbed to see the government proposing projects on this scale without even bothering to do an impact assessment first. The agreement under discussion today, one that involves the European Free Trade Association, contains some interesting provisions concerning nickel, aluminum and the pharmaceutical sector. However, it represents a threat to the shipbuilding industry. There are no solid studies in place to assist us in the decision-making process. I find that truly deplorable.
My question is for the officials. I would imagine that you have some figures on investments made in recent years in the marine industry. Have government investments in this sector in recent years decreased, remained the same or increased?
Director of Defence and Marine, Department of Industry
Clearly part of the intent of the SFF is to ensure that the capability and capacity exist in Canada to help realize the procurements that have been identified, the $43 billion worth over the next 30 years, and also as identified in Budget 2009, the $175 million for coast guard vessels.
In terms of shipyard investments, as I said, this particular program is to help ensure that the necessary infrastructure is in place, whether that be capital or labour.
Bloc
Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC
Regarding the announcement made in recent weeks, can you tell me more about how the $175 million announced in this budget will be invested this year and over the next few years?
Director of Defence and Marine, Department of Industry
While these dollars have been allocated to the Department of Fisheries and Oceans for the Canadian Coast Guard, I don't have intimate details.
I do know there is a series of smaller vessels. There are some inshore scientific vessels, etc., but in terms of the allocation of funding for the specific vessels, I'm not privy to that. That would fall under the purview of the Department of Fisheries and Oceans.
Senior Chief, International Trade Policy Division, International Trade and Finance, Department of Finance
Perhaps I could add to that, Gary. Budget 2009 does allocate $175 million, over the next two years, for the procurement of 98 new coast guard vessels, refits to 35 fleet vessels, and vessel life extensions for five vessels.
As the industry relies primarily on the domestic market, these funds will provide an economic stimulus to the industry and create jobs during the economic downturn. Construction and repair work will be undertaken by shipyards in Canada and, where possible, by shipyards located within the regions of the vessel's home port.
On the vessel refits, we have an allocation of seven in the Pacific, five in central and Atlantic, seven in Quebec, seven in the Maritimes, and nine in Newfoundland and Labrador.
Bloc
Bloc
Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC
If I understand correctly, there is nothing budgeted in this $175 million envelope to help the shipbuilding industry make upgrades in order to be more competitive. Is that correct?
