Evidence of meeting #18 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.
A recording is available from Parliament.
Don Davies NDP Vancouver Kingsway, BC
Okay, thank you.
Mr. Jung, Europe has a very strong technology sector. I'm wondering if you've done any analysis about the impact of increased competition from European firms in Canada on your sector.
Chief Executive Officer, Canada's Technology Triangle Inc.
We're actually looking at that through comparison to a community called Eindhoven, Holland, which is considered the number one innovative community in the world according to Forbes. They came to visit with us and they believe we have a highly competitive environment in Canada. They are looking at developing partnerships. Even though competition is part of it, collaboration and partnerships are another piece of this puzzle.
NDP
Don Davies NDP Vancouver Kingsway, BC
Labour mobility is a part of CETA. Will that influence your feeling on skilled labour?
I hope I can ask just one more question, because I'll probably run out of time.
I agree with you completely about waiting for the details. That's been the position of our party. We're open to an agreement, but we need to see the details. For a 40 chapter comprehensive agreement, we think that's simply common sense.
This may be an unfair question, but the government has floated a jobs number and has said that CETA will potentially create 80,000 jobs, so I ask this of every industry and sector: Do you have any idea of the number of jobs that your sector will create as a result of CETA?
Chief Executive Officer, Canada's Technology Triangle Inc.
In the IT sector, we have 30,000 now and we believe that should grow, because competition and partnership will grow at both ends. I think the biggest issue is how we retain them if we want to try to keep them in a particular community. That's an issue all of our communities are trying to deal with. I don't have an answer for that. I do know that it's top of mind. In fact most recently, the president of the University of Waterloo made that one of his key platforms.
I can't give you a direct answer.
Conservative
Conservative
Erin O'Toole Conservative Durham, ON
Thank you to the witnesses for appearing today. It's nice to see you two days in a row, Mr. Jung, although we didn't get to speak at the lunch with the EU and the European ambassadors yesterday.
There was one thing I wanted to ask you as a follow-up. You may recall at the lunch in Toronto that Jason Langrish, one of the speakers, talked about one of the big benefits from CETA being the centre of excellence concept for a lot of major global players, European and Canadian. Do you see that aspect of increased direct investment in Canada benefiting our communities that already have those sorts of centre of excellence cluster benefits, such as Kitchener-Waterloo?
Chief Executive Officer, Canada's Technology Triangle Inc.
Absolutely, I think we have the opportunity to showcase our communities around the world. By showcasing them as centres of excellence, as we have at the accelerator in the Communitech Hub and so forth in Waterloo, we know that people will come and be a part of it. Whey want to be a part of it. Similarly, I know they want to be a part of it in places like I just mentioned, Eindhoven and elsewhere.
Strategically, we need to figure out how to work together. With these tariffs removed and with obstacles removed, I think the private sector and the public, private, and institutional—they call it a triple helix—will be able to perform better.
Some of the labour movement that's expected as part of this can also strategically help in terms of bringing the right kinds of people back and forth to the right kinds of projects. I think that will help to motivate and move some of these projects to a higher level.
Conservative
Erin O'Toole Conservative Durham, ON
My colleague Mr. Holder and I are from Ontario and we certainly know the strength of your sector and your community and the work your organization is doing.
Could you suggest a few other communities, centres of excellence clusters across the country that could have this added benefit from investment from global players much like your company?
Chief Executive Officer, Canada's Technology Triangle Inc.
Absolutely, I can tell you right now. I mentioned this organization of alliance of Canadian cities called Consider Canada's City Alliance, CCCA, that works with Invest in Canada. It has a website and you can see each of those cities across Canada, 12 of them signed up right away.
Ottawa, Toronto, and Waterloo have the Ontario tech corridor, and there are centres of excellence in each of those cities. We have across Canada—and I was just explaining this to my colleague here—more than 20 cities that have been recognized globally as smart and intelligent communities. Those clusters exist from Vancouver all the way to the east coast.
In cities like Fredericton, Moncton, and Saint John in New Brunswick, even as far north as Nunavut, there are opportunities in every corner of Canada where knowledge-centric opportunities exist. We know this is taking place.
If we could have even more opportunities for free trade and movement, we'd be able to exceed even our greatest expectations right now.
Conservative
Erin O'Toole Conservative Durham, ON
Thank you.
I have a few questions for Mr. Lewis-Manning.
First off, I certainly know the professionalism and operating excellence of many of your members from my time in the Navy and the interaction we had with some of the merchant shippers.
You talked about the establishment of your organization in 1903. How many operating members are there in your organization? I mean actual operators, not support, or tug, or that sort of thing.
President, Canadian Shipowners Association
The fleet consists of five companies delivering cargo.
Conservative
Erin O'Toole Conservative Durham, ON
Five companies, you say.
Certainly I think most members of this committee would know Canada Steamship Lines well, particularly here in Ottawa, and Algoma Central, some of these great companies that have long track records of operating excellence and very strong corporate backing from very prominent Canadian business leaders. Would it not be fair to say that their history and experience on our lakes and channels, the geographic advantage that an operator here would have.... Do you really feel that competition from Europe would be as disruptive to the industry as, say, my colleague Mr. Davies is suggesting?
President, Canadian Shipowners Association
I would suggest that it doesn't necessarily have to be disruptive. It's not the fact that the concept is included in the agreement; it's more likely the details of the implementation.
It's important to look at other models, where other countries have faced similar changes. I think Australia is one we watch closely as a model to learn from. The potential is for it to not be disruptive, and it really depends on how it's implemented, to be quite frank.
I don't want to give you the impression that the sky is falling. That's not the case.
Conservative
Erin O'Toole Conservative Durham, ON
In particular, in terms of some of the short haul and feeder services you described, which specific channels do you think there might be increased competition on? Certainly there would not be a business case for many European-based operators to try to compete on some short-run work here. Are there one or two specific routes you're going to watch closely?
President, Canadian Shipowners Association
My understanding of the industry would tell me that the cost and complexity of operating into the Great Lakes, for example, is significant. That's why companies like the ones you've described have been successful, because they've had the right policies, regulatory frameworks, and investment to be able to do that type of trade.
When you look outside of the Great Lakes, it's probably the area that we focus more attention on with respect to the agreement, because the opportunities may be greater. The reality is that the competitive nature can exist under the current regime, so it's difficult to say whether....
We could speculate as to whether there's an opportunity for EU investment in east coast trades, for example. The reality is that the potential negative consequences in the long term....
Quite frankly, if that competition were there, that's fine. The concern is that when that competition goes away, a lot of the investments that need to happen to maintain the capability in those waters may be neglected over time.
Conservative
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you to the witnesses for coming today.
I have a couple of quick questions for you, Mr. Jung.
You're a technology company, but in your brief you say:
Of course we haven’t seen the details of the CETA agreement, so some sectors, especially in the agricultural and food processing industry, will want to learn more.
Why is that important for your industry?
Chief Executive Officer, Canada's Technology Triangle Inc.
You're misreading what our organization's about.
Liberal
Chief Executive Officer, Canada's Technology Triangle Inc.
Canada's Technology Triangle Inc. is a public-private partnership made up of the municipalities, the colleges and universities, and the private sector that make up the Waterloo region. We aren't a technology company. We are a public-private organization not very different from Invest Ottawa, which you're familiar with here.
We're interested in across-the-board industries. We look at the diversity of the community, and we try to bring in businesses from all around the world that branch all of the industry sectors. Food processing and all those things are as equally important for us as our ICT companies that are there.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
What particular area in agricultural and food processing would you have a concern with?
Chief Executive Officer, Canada's Technology Triangle Inc.
We haven't actually had any kind of focus group at this stage. At this point, we're just interested in learning more.
As I said, we will be holding our first regional economic development strategy over the next year. We've hired a staff person now to undertake that strategy for the region. I believe that CETA will form part of that strategy.
