Evidence of meeting #45 for Transport, Infrastructure and Communities in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was technology.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Greg Tarasco  President and Chief Executive Officer, Blueprint Energy Inc.
Earl Hughson  President and Chief Executive Officer, Invotronics Inc.
Todd Habicht  President and Chief Executive Officer, HD-Petroleum Inc.
Jack Winram  Vice-President, HD-Petroleum Inc.

Noon

President and Chief Executive Officer, HD-Petroleum Inc.

Todd Habicht

In our case and our experience on the first part—ingenuity—I was fortunate in my grandfather. When he passed away last November, the Globe and Mail ran a full-page obituary on him. He was listed as one of the great inventors of Canada. One of his inventions was the modern-day combine. If we had cereal, pancakes, or toast this morning, we can give thanks to my gramps.

From there he went on to work in road construction, and that's where he became exposed to the disposal of waste motor oil. He felt there was a better way. With no backing of any research facility or any government, he quite literally started tinkering in his backyard. He created it and almost had it figured out, and we've since finished it off. Fortunately, he did live to see the thing work. That was a proud moment for me personally.

But I've had experience since then. I recently had the privilege of touring a place called Brainport in Eindhoven, in the Netherlands. It's a fascinating micro example of university, business, and entrepreneurial ingenuity coming together and working in such an open format that the inventor—the developer—is not concerned that some guy is going to steal his idea and run a no patent to him tomorrow. They work so collaboratively, and with their access to capital, just the physical building, the environment where they work is very stimulating.

Noon

Conservative

Jeff Watson Conservative Essex, ON

If you'll allow me to interrupt for a second, collaboration as a partnership is a good thing, but who drives the research and development in the country? Should it be researchers or business?

Noon

Conservative

The Chair Conservative Larry Miller

Mr. Habicht, would you answer in a couple of seconds? I've given everybody a few extra seconds.

Noon

President and Chief Executive Officer, HD-Petroleum Inc.

Todd Habicht

We think it should be need driven. Where there is a need, it should be driven by the need.

Noon

Conservative

The Chair Conservative Larry Miller

Thank you very much.

Mr. Aubin, you have five minutes.

Noon

NDP

Robert Aubin NDP Trois-Rivières, QC

Thank you, Mr. Chair.

I would like to take a few seconds to congratulate you on your appointment to chair. I was not able to be here last week. It is a pleasure to work under your direction.

Hello gentlemen. Thank you for being here with us. Clearly, five minutes is very little time in which to share so much expertise. We should also exchange business cards so that we can keep in touch.

My first question is for Mr. Hughson. At the very beginning of your presentation, I believe that you gave an important statistic, but I am not sure whether I understood you correctly. You said that, right now, 30% of cars have a high amount of electronic content and that this number is projected to move to 50%. Is this the statistic that you gave?

Noon

President and Chief Executive Officer, Invotronics Inc.

Earl Hughson

The statistics we're seeing are that the electronic content of vehicles has climbed to about 30% of the cost of the vehicle and it's moving towards 50%. This area of technology is very significant compared to the past.

Noon

NDP

Robert Aubin NDP Trois-Rivières, QC

So this is not an objective to achieve but, rather, a consequence of the development of vehicle technology. It was 50% of the cost.

Approximately how many years will it be before 50% of the cost of the car is related to computer technology innovations?

12:05 p.m.

President and Chief Executive Officer, Invotronics Inc.

Earl Hughson

The content is going to increase continuously. This decade is going to see a tremendous amount of growth as the sensors take over the vehicle and as the infotainment systems explode to a very high percentage. It will be gradual over the next ten to fifteen years.

12:05 p.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

How could the federal government become a partner in enhancing Canada's visibility both nationally and internationally so that our country can become a major player or a more important player than it is right now in this field?

12:05 p.m.

President and Chief Executive Officer, Invotronics Inc.

Earl Hughson

I think, again, funding demonstrations of Canadian technologies into this market...the time is now. For example, it's already impossible to take the technology and put it on a 2017 vehicle. If it's already proven in the automotive environment, we are looking at 2018 and 2019. There are all kinds of Canadian technologies available that need to be demonstrated into this environment before some other country or companies do it, technologies that are going to have those very advanced systems going forward.

These are very advanced systems. They're very small. They're very exportable. They're made on highly automated manufacturing systems. They are the ideal sort of product for Canada to get into. The core technologies are here, but I think we need to create a stimulus to find those technologies and do it.

In the last one to two years, I have gone out through my committee. We've found 30 to 50 small Canadian technology companies that have relevant technologies. I took a list of 35 to General Motors Canada and asked, “Are you interested in meeting these?” They took a short list of 28. We set up a demonstration of 28 small Canadian technology companies that are traditionally outside of automotive but have relevant technology.

After we did a one-day technology show at GM's Oshawa engineering centre, six or seven of those companies started moving forward with General Motors. This same group of companies is looking for demonstrations because car companies are saying, “Show us.”

12:05 p.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

You are talking about demonstrations, but can you give me concrete examples? Are we talking here about renting a booth at a car show to demonstrate a technology or are we taking about creating prototypes that could be seen on our roads?

12:05 p.m.

President and Chief Executive Officer, Invotronics Inc.

Earl Hughson

What we need are vehicles equipped with the technology in a functional manner such that they can be demonstrated to the major tier ones and the OEMs—manufacturers. What I'm finding is that a lot of these companies are spinoffs of universities, with developed technology. They may be spinoffs from people who came from some of the large Canadian telecom companies and who have a unique idea on how to apply this. They're fairly small businesses that have the technology and are moving in this direction.

As for funding and the association, what we can do, if they can present the technology the way the companies need to see it—in a very practical application—is put them in front of the vice-presidents of the car companies globally. The Canadian embassies are doing a fantastic job of supporting this effort. We need to get these small companies into a position where they can get their technology out of a PowerPoint and into a car.

12:05 p.m.

Conservative

The Chair Conservative Larry Miller

Thank you, Mr. Aubin. Your time has just expired.

Mr. Holder, you have five minutes.

12:05 p.m.

Conservative

Ed Holder Conservative London West, ON

Thank you, Chair.

I thank our guests for attending this morning. This has been fascinating.

I'd like to reinforce earlier comments that we would ask you to undertake to provide the clerk with any specific regulatory change requests you might have. I think time is of the essence; as I say that, I think you'll understand.

If I may, I'd like to start with Mr. Habicht. Did I say that right?

12:05 p.m.

President and Chief Executive Officer, HD-Petroleum Inc.

Todd Habicht

That's very good.

12:05 p.m.

Conservative

Ed Holder Conservative London West, ON

All right.

You talk about your technology removing some 96% of sulphur as you recycle waste motor oil. You also made a reference going back to grade school; I actually can't ever recall getting 96%—not even close.

But you know, my Cape Breton mom used to say, “Don't let great get in the way of the good.” I think 96% is actually better than good. Can you help me understand what that issue is for you and what that extra 4% means?

12:05 p.m.

President and Chief Executive Officer, HD-Petroleum Inc.

Todd Habicht

Yes. I am going to turn that over to Jack, because I hear that in our office all the time. Jack comes around mumbling that—

12:10 p.m.

Conservative

Ed Holder Conservative London West, ON

Are you from Cape Breton, Jack?

12:10 p.m.

Vice-President, HD-Petroleum Inc.

Jack Winram

No, I'm not. I'm from Manitoba, but the perfect is the enemy of the good, which I believe, if I'm not mistaken, is a Churchill quote.

12:10 p.m.

Conservative

Ed Holder Conservative London West, ON

He learned it from my mother.

12:10 p.m.

Voices

Oh, oh!

12:10 p.m.

Vice-President, HD-Petroleum Inc.

Jack Winram

To go back to what our ask is in terms of regulation, in time, as Todd said, we can get there, but the legislation does not allow any opportunity for a reprieve to allow us that time to get there.

Right now the limit on sulphur is 15 parts per million. We can get to under 100 parts per million, down from a fuel that is currently being burned at 3,500 to 5,000, sometimes even 6,000, parts per million. One might ask why not simply ban the burning of used oil if it's so nasty. Sulphur is not the only thing in it. I can provide you with a whole list of really nasty things that go into our atmosphere and therefore into the water table, like acid rain, like asthma-causing gases, like carcinogens, that pollute our land and water. Basically we want to create an alternative for those industries without banning it.

The Province of Ontario actually tried to ban the burning of used oil. There was some pushback from stakeholders in that industry, who said “You can't ban it; you don't have a solution for us to do anything with it. If you ban the burning of waste oil, what happens to it? It simply builds up in inventory. You haven't provided a solution.” So they had to back off from their legislation and they exempted industry, agriculture, and all northern communities, because those industries and those communities won't have anything to do with it.

We're asking for not necessarily a change in regulation, but an opportunity to have a regulation that will allow us to ask for either an exemption—I don't know what the mechanism is, whether it's a ministerial exemption—

12:10 p.m.

Conservative

Ed Holder Conservative London West, ON

I'm sorry, I've got limited time, but I would say that I'm sure that will be clear in your submission to us. Time is of the essence.

12:10 p.m.

Vice-President, HD-Petroleum Inc.

Jack Winram

Absolutely.