Thank you, Madam Chair, for the invitation to be here today.
My name is Simon Kennedy. I'm the deputy minister of Innovation, Science and Economic Development Canada.
I'm joined here today by my colleague, Mary Gregory, who is the associate assistant deputy minister of the industry sector at ISED.
As you may be aware, ISED is responsible for carrying out one of the three objectives under Canada's defence procurement strategy, which is to leverage defence and security procurement to create highly skilled jobs and economic growth in communities across Canada.
A primary tool to achieve this objective is the application of the industrial and technological benefits policy, otherwise known as the ITB policy, which requires contractors to undertake economic activities in Canada equal to the contract value.
In addition, the national shipbuilding strategy value proposition requires that large vessel shipyards, including the upcoming third shipyard, invest 0.5% of the value of their national shipbuilding strategy contracts into the greater Canadian marine industry to ensure its long-term sustainability. Those investments are designed to support human resources development, technology investments and industrial development.
I can report that the national shipbuilding strategy shipyards are meeting their economic leveraging obligations to date, and my department will continue to work with these yards to ensure that their economic benefits obligations are met. For example, national shipbuilding strategy contracts issued between 2012 and December 2020 are estimated to contribute close to $20.1 billion, or $1.8 billion annually, by 2022, to Canada's gross domestic product, and to create or maintain more than 16,900 jobs annually, through the marine industry and its Canadian suppliers.
Between 2016 and 2018, marine sector sales increased by 16% to $4.1 billion, with export growth of 33%, to a value of $1.1 billion in 2018. Canadian companies are having demonstrable success in the global market, with over 80% of Canadian-developed naval systems present on global fleets. This success can be attributed, at least in part, to the ability to leverage experience on domestic projects to pursue work internationally.
I'll conclude my remarks there, Madam Chair, but would be pleased to answer your questions as part of today's appearance.
Thank you very much.