Transport Committee on Jan. 28th, 2021

[The Chair, Liberal, Vance Badawey]

Good afternoon, everyone. Welcome. It's good to see all of you again after Tuesday's meeting.

I welcome all of you to meeting number 13 of the House of Commons Standing Committee on Transport, Infrastructure and Communities. Today's meeting is taking place in a hybrid format, pursuant to the House order of January 25, 2021. The proceedings will be made available via the House of Commons website. So you are aware, the webcast will always show the person speaking rather than the entirety of the committee.

To ensure an orderly meeting, I would like to outline a few rules to follow. Members and witnesses may speak in the official language of their choice. Interpretation services are available for this particular meeting. You have the choice, at the bottom of your screen, of floor, English or French.

For members participating in person, proceed as you usually would when the whole committee is meeting in person in a committee room. Keep in mind the directives from the Board of Internal Economy regarding masking and health protocols.

Before speaking, please wait until I recognize you by name. If you are on video conference, please click on the microphone icon to unmute yourself. For those in the room, your microphone will be controlled as normal by the proceedings and verification officer. I remind you that all comments by members and witnesses should be addressed through the chair. When you are not speaking, your mike should be on mute.

With regard to a speakers list, the committee clerk and I will do the best we can to maintain the order of speaking for all members, whether they are participating virtually or in person. We do have a new icon at the bottom of the screen for hands raised. As I can only see so many per screen, please bear with me as I go through the screens to see if there's a raised hand.

Pursuant to Standing Order 108(2), the committee is meeting today to continue its study on the impact of COVID-19 on the aviation sector.

Before I introduce the witnesses, I will note that many of you have received some attachments from the clerk today with respect to the study budgets. They were all distributed to each and every one of you. I would like to request consent from the members to accept the study budgets—not only to accept them but to adopt those budgets as they have been presented to you. Do I have consent from the members of the committee? Can I see your hands raised? That's the best I can do right now.

[Some hon. members]

Agreed.

[The Chair, Liberal, Vance Badawey]

Okay. I do have consent, Mr. Clerk. Those study budgets are accepted and adopted by members of the committee.

Now it's my pleasure to introduce the witnesses we have before us today. We have, from the Aerospace Industries Association of Canada, Mr. Mike Mueller, senior vice-president; from the Air Canada Pilots Association, Robert Giguere, chief executive officer; from the Atlantic Canada Airports Association, Derrick Stanford, president, as well as Monette Pasher, executive director; from the Canadian Air Traffic Control Association, Doug Best, president and chief executive officer; from the International Association of Machinists and Aerospace Workers in Canada, Derek Ferguson, representative, Grand Lodge; and, from the Vancouver Airport Authority, Mr. Gerry Bruno, executive adviser to the president, and chief executive officer of Future Borders Coalition.

With that, we will start with our witnesses.

I will start with Mr. Mueller, senior vice-president of the Aerospace Industries Association of Canada.

Mr. Mueller, welcome. I'll give you the floor for five minutes.

[Mike Mueller, Senior Vice-President, Aerospace Industries Association of Canada]

Thank you, Mr. Chair.

Good afternoon, everyone.

It's a pleasure to be here on behalf of the Aerospace Industries Association of Canada. As most of you will know, our members represent over 95% of aerospace activity in Canada, covering the civil, defence and space sectors.

Aerospace has been a driving contributor to Canadian prosperity for decades, providing nearly 235,000 jobs and over $28 billion annually to our nation's economy. This hasn't happened by accident.

Eighty years ago, our political and industrial leaders made strategic decisions. They recognized the potential of this great industry to shrink our vast geography, facilitate global trade and commerce, help secure our borders, and raise our quality of life. These political leaders were keenly aware that smart policy decisions and key investments would build Canada into a global aerospace leader. They knew that the investments we made as a country would yield significant dividends, and their vision was correct. Canada became the fifth-largest aerospace industry on the planet and a true source of pride.

However, in recent years, that vision, investment and support has been slipping, and so has Canada's global positioning. The impacts of COVID-19 have meant further challenges, and we’ve fallen even further behind. The industry is reporting losses in revenue of over 40%; 95% of companies are reporting various levels of shutdowns, and over 50% have laid off employees. Support is needed, and it is needed immediately.

While the government's emergency measures have been appreciated and helpful, they're just not enough, not when aviation and aerospace are facing unprecedented challenges, and not when other leading aerospace countries, our competitors, began taking action early on. For example, France invested $26 billion. The U.S. invested $80 billion. Hong Kong invested $5.2 billion. Germany invested $9.8 billion, and on and on. These countries, our competitors, have positioned their sectors for the future. Canada needs to do the same. The future is bleak for aerospace if its customers, the airlines, can't buy its products and services.

The effects of COVID-19 have cascaded throughout the supply chain and throughout the country. Our members are located in every region, and no one has been immune, regardless of the size. Data from leading global aerospace and defence experts warn of the consequences if no action is taken or no long-term strategy developed. The need to protect our highly skilled, well-paying jobs is now.

This industry’s competitive advantage has been our skilled workforce. In the context of COVID-19, this is our strength and our challenge. We need government investment in aerospace so that we can be part of the economic recovery, and post-recovery we can once again be global leaders. But we can't do it alone. We need a partner in the government and, indeed, all parties in the House of Commons.

Finally, I want to touch on innovation, a hallmark of this industry.

Great strides are already being taken by aerospace companies to ensure a greener, more sustainable future. We're ready to help with elements of the government's green agenda. The industry is committed to this. We’re fully committed to working in partnership with you on a national aerospace strategy that takes into account civil, defence and space. This is critical. As I said, every one of our competitor countries has a strategy.

We are also seeking support from government to partner with us to help us transition to new technologies and products, a transition that will keep people employed and ensure that we remain a skilled workforce. With over 80% of what we produce being exported, there are opportunities to build more efficiency and transparency into export market opportunities. There is also an opportunity for the government to support our industry by accelerating planned spends on the defence and space sides.

I'll conclude today by saying that there are tremendous opportunities. Let's ensure that Canadians can continue to take pride in our Canadian aerospace industry, to continue Canada's leadership in R and D and in training, and to protect our skilled workers and good-paying jobs from coast to coast to coast, all while putting aviation and aerospace on a path to a greener future.

We can't be naive. Other countries are, as we speak, actively soliciting Canadian firms to shut down and move to their jurisdictions. Aerospace exists in a fierce, globally competitive marketplace. Once these jobs leave, they don't come back.

It's no accident that a country of just 35 million has such a thriving aerospace sector. On behalf of our industry, we urge all of you to continue the tradition. Stand by this industry. Grow it for the future. Protect its legacy and its jobs.

Thank you.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Mueller. Well done.

We will now go to the Air Canada Pilots Association and to Mr. Giguere, chief executive officer.

You have five minutes. The floor is yours.

[Rob Giguere, Chief Executive Officer, Air Canada Pilots Association]

Thank you very much, and thanks to the committee for inviting me here today.

I've been a pilot and, in the later half of my career, have worked in senior and executive roles in the airline industry. I've seen 9/11 and SARS, which were terrible. The current challenge far exceeds anything we've ever seen before.

Our association today represents 3,800 active pilots. Before COVID hit, we had 4,500 active pilots and we were in the process of hiring another 900. Through a combination of cancelled hiring, furloughs, early retirements, leaves of absence and surplus pilots over 1,800 positions are gone, for a net reduction of 35%. Our remaining pilots are currently at about 65% of their normal salary as part of a mitigation agreement to limit reductions.

Since March 2020, passenger traffic has been down to around 10% of pre-pandemic levels. That has dropped even further in the past couple of weeks.

We would urge the government to take a thoughtful approach to any further restrictions, so they don't have any unintended consequences. While our pilots can tell you that most of the flights they operate have very few passengers, the cargo holds are full. Last week, on an extremely limited flight schedule, our pilots operated flights that carried millions of kilos of essential goods into and across Canada. If you turn off the tap on aviation, you don't want to unintentionally turn off the supply chain of vital goods to Canadians, including mail, personal protective equipment, pharmaceuticals and other goods.

While public health measures may be required to fight the pandemic, further restrictions without direct government financial aid are sure to take an already precarious airline industry and further devastate it. As a reminder, Air Canada is estimated to be burning through $15 million every single day this quarter. That's after the dramatic capacity reductions and layoffs of more than 20,000 employees. The airline is smaller today than it was when I started my career as a pilot in the 1970s.

Other countries are now in their second and third round of direct financial support for their airlines. We're the only G7 country that has not received specific industry aid. While we appreciate the Canada emergency wage subsidy, so many jobs have been lost and some of those losses may never be recovered. If we don't receive assistance soon, Canada may not have an airline industry by the time the recovery comes. The routes that have been cancelled may never return, airlines may not be able to recover costs, and the cargo that needs to get to where it needs to go may not go. Our industry touches in some way virtually every Canadian and every sector of this economy.

While the COVID crisis has hit many industries, airlines are unique in two ways.

First, unlike businesses with traditional offices or warehouses, airlines' most significant investment is in aircraft. Airline fleets are either owned, financed or leased. Airlines have slashed operations to manage these massive costs. Hundreds of planes are parked in the desert—many permanently. Some of the new aircraft are being sold outright or sold and leased back so airlines can generate liquidity to provide cash as they burn through their reserves.

Some might think that if airlines sell assets to create cash, they don't need any help. Selling aircraft one by one is like ripping apart your house, board by board, to keep the fire burning to heat it. Eventually the assets are gone and you have nothing left but a pile of ash and nowhere to live. Airlines cannot just give up their entire fleet and wait for the economy to improve. Government relief for aircraft rent or financing would assist airlines with an expense that is unique to them.

Second, our highly trained workers have skills that are critical, not just to the airline industry, but to the functioning of our economy. Pilots, mechanics and air traffic controllers have essential skills developed through significant investments of money and time. Before their first commercial pilot job, they will have invested years and well over $100,000 to become qualified. Furloughed and inactive pilots have no way to maintain their skills. We can't just bring them back safely if those skills atrophy.

As this committee heard in 2019, a wave of retirements is anticipated over the next five to 10 years. In today's context, young people will not commit to a career that requires upwards of $100,000 and years of training to get qualified, with few or no job prospects. A skilled worker retention program to support inactive pilots would help ensure that we keep these highly skilled workers when we need them for recovery.

In conclusion, Canada's airlines represent a critical infrastructure, like our electrical grid or our highway network. We're a large country, a widely dispersed population and a trading nation. We rely on airlines to carry goods, services and people within and outside of Canada. Canada cannot survive and thrive in the years ahead without a robust aviation sector.

I'll wrap up my remarks here. I look forward to answering any questions the honourable members may have.

Thank you.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Giguere. Well done.

We'll now move on to the Atlantic Canada Airports Association. We have Mr. Stanford and Ms. Pasher.

You both have the floor for five minutes.

[Monette Pasher, Executive Director, Atlantic Canada Airports Association]

I'll start, and then I'll turn it over to Derrick.

Mr. Chair and members of the committee, thank you for the invitation to speak to you today.

There are 12 airports in Atlantic Canada that are part of our association. It is all of the airports in the region with commercial traffic—or should I now say, the ones that used to have passenger traffic prior to the pandemic, because sadly that is the situation we are in. Seven airports in our region have seen their Air Canada service be indefinitely suspended: in communities like Gander, Newfoundland; Goose Bay and Wabush in Labrador; Bathurst, Saint John and the capital city, Fredericton, in New Brunswick; and Sydney, Nova Scotia.

Pre-pandemic, these were well-managed, profitable and fiscally responsible small airports. They have now gone through 10 months of using their cash reserves—accumulated over two decades and normally earmarked for safety infrastructure projects. These airports have cut staff, and they've cut expenses, but they can only cut so far, as our airport runways must stay open for medevac and essential community services.

The impact of COVID has been great, seeing air service that has been in place since 1942 severed, cutting off entire communities and regions. For Gander, Newfoundland, Air Canada has served that market since it was Trans-Canada Airlines, before Newfoundland was even part of Canada.

In Sydney's case, it is cutting the economy there off from the rest of the country. It is five hours from the next nearest airport in Halifax. Think about that for a minute. This is Nova Scotia's second-largest city entirely without air access. It's an economy that relies on tourism, mobile workers moving to the oil fields, and immigration.

We know that government does not want people to travel right now. We are here to serve the essential movement of people and goods, but our infrastructure expenses do not scale, and our revenue model is entirely based on passengers. This government has recognized the need for support for the air sector in the fiscal economic statement, and we look forward to those programs rolling out. The support is urgently needed.

I'll turn it over to my colleague, Derrick.

[Derrick Stanford, President, Atlantic Canada Airports Association]

With COVID cases on the rise in the rest of Canada, new variants, and vaccines just beginning to roll out, the recovery line for the restart of travel is getting further and further out of reach, while our financial losses grow. Atlantic Canada's airports lost over six million passengers in 2020, and $140 million in revenue. Even after all of the cost-cutting, there was a net loss of over $80 million.

The unemployment rate in the Atlantic aviation sector is now over 50%. These were well-paying and secure jobs. The year 2021 is not looking much better. We are down from over 140 routes to just 29, with only nine of those connecting us to the rest of Canada. Our airports have asked for rent relief until this sector recovers. In a good year, Canada's airports have paid $415 million to the federal government in rent. Now, our airports need government support as revenue has completely dried up.

What was announced was a good first step, but it does not go far enough to help Canada's medium-sized and large airports recover. Airports like Halifax Stanfield and St. John's will only receive rent relief for one more year. To put this into perspective, in the case of St. John's, with projected revenues down substantially again in 2021, the airport is forecasting a savings of approximately $450,000 from federal rent relief. By comparison, its borrowing to get through the pandemic is currently anticipated to peak at $30 million. Much more needs to be done.

Our airports have also asked for operational support. We look forward to the details and the rollout of the $206 million in the RATI program. This will be required to help stabilize the losses for our regional airports in Atlantic Canada so that we can get—

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Stanford.

[Derrick Stanford]

Okay. I'm sorry.

We have also asked for infrastructure support through the capital assistance program. In order to recover, our sector needs a nationally consistent, globally aligned approach to testing for the restart of travel. We need this plan right now.

Last, but of significant importance for our region, is the need for financial support for our national air carriers.

Thank you.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Stanford and Ms. Pasher. Well done.

We're now going to move on to the Canadian Air Traffic Control Association.

Mr. Best, the floor is yours for five minutes.

[Doug Best]

Mr. Chair and all honourable members, on behalf of the Canadian Air Traffic Control Association, I truly appreciate the opportunity to appear before your committee.

CATCA is a Unifor local trade union representing all air traffic controllers in Canada. It conducts collective bargaining with Transport Canada, Serco and Nav Canada on behalf of more than 1,800 members. Aviation safety and ensuring responsible working conditions for our members is our number one mission.

Before the pandemic hit, our members were responsible for the safety of three million flights per year. Air traffic controllers were short-staffed by 13% and Nav Canada's overtime bill was $100 million. We had 200 trainees in our system, and Transport Canada had ordered Nav Canada to overhaul its fatigue management system, as the minister had recognized safety was being compromised.

Since the pandemic hit, we've been working 50% fewer airplanes. By June 2021, we could be more than 20% short-staffed, and Nav Canada has terminated almost every trainee in our system. We understand that Nav Canada has seen a precipitous drop in their revenue due to the pandemic and needs to find efficiencies, but this cannot come at the cost of safety for air transportation. While Nav Canada is technically a private entity, it is in a unique position in that it is the only civil air navigation service provider in Canada. Their monopoly status allows them to raise fees, utilize government programs and, of course, petition the government for additional financial support to ultimately promote a sector recovery.

As you will have seen in the media, our union has raised grave concerns over Nav Canada issuing layoff notices to more than 100 air traffic controllers. This includes a level-of-service review of air traffic control towers at seven cities, as well as four area control centres. The Gander area control centre has been the hardest hit. Services provided in Gander are critical to Canada's historic role in providing air traffic control services to half of the North Atlantic Ocean airspace, which handles the busiest international oceanic airspace in the world, connecting Europe and North America. The potential layoffs in Gander will affect the North Atlantic as 40% of the more than 60 air traffic controllers who work the airspace have been served layoff notices.

During the level-of-service reviews for the seven affected towers, Nav Canada committed to a fair and transparent process and said the outcome would consider all stakeholders' concerns, review each situation on its own merits and ultimately produce a report in the spring of this year, should it wish to materially modify service at any of our towers. We've been further assured that there was no predetermined outcome as this process ran its course. Actions would only be taken if warranted, but not before the full process was concluded, including concurrence from the Minister of Transport on any proposed changes.

Unfortunately, all of the tower sites undergoing a review of air traffic control service have already issued letters to their employees that clearly state that they intend to close the respective air traffic control towers. It is not acceptable for Nav Canada to issue terms of reference on each engagement and yet have a different behind-the-scenes strategy when not facing hundreds of concerned stakeholders across the country, including what should be their most valuable source—their employees.

These letters confirm our early concerns that the outcome of these reviews was already decided before they began. Our association is calling on Transport Canada to discontinue the service review, due to Nav Canada's failure to act reasonably and in good faith. We are calling on the Minister of Transport to clarify their obligations under the Civil Air Navigation Services Commercialization Act on what it means when a party does not act reasonably and in good faith.

It is the opinion of CATCA that Nav Canada is moving with uncontrolled haste and has not been genuine or forthcoming with its motives. Every one of us understands that safety is being impacted. In addition, Nav Canada management received bonuses in December worth approximately $7 million and unionized members got layoff notices.

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Best.

[Doug Best]

Thank you.

We are calling on this committee to ask the government to provide Nav Canada with whatever financial support is needed in the form of a grant to help them weather this temporary downturn so they no longer need to consider reducing core services for not only control towers and area control centres, but also the other necessary highly skilled unionized professionals who support the air navigation system that serves so many communities across Canada and connects Canada to the world.

Losing the air traffic control services in these key regions would be devastating. We've lost faith in the current process and ask that this committee and the Minister of Transport work collaboratively with us to reset a very unfortunate situation and reassure the travelling public that their safety will not be compromised.

Thank you. I'd be happy to answer any questions.

[The Chair, Liberal, Vance Badawey]

Well done, Mr. Best.

We're now going to move on to the International Association of Machinists and Aerospace Workers in Canada.

Mr. Ferguson, the floor is yours for five minutes.

[Derek Ferguson, Representative, Grand Lodge, International Association of Machinists and Aerospace Workers in Canada]

Good afternoon. I appreciate the opportunity to present to the committee the views of the International Association of Machinists and Aerospace Workers.

The International Association of Machinists and Aerospace Workers is the leading union in the aerospace sector and the air transportation industry. The IAMAW represents over 55,000 members across Canada, of which 22,000 work in the aviation, aerospace and air transportation sector.

As the hardest-hit sector, air transportation is also a sector that is expected to experience a slow recovery, as well as fundamental change. Direct funding is necessary.

It has been a full year since COVID-19 became a reality in Canada, yet to date there has not been any targeted support for this industry. With a full recovery not expected until 2025, it is unrealistic to expect that aviation and air transportation will survive on raising funds independently. Without a planned sector-specific strategy, several industries face decimation.

The Canadian government was quick in responding to the economic crisis triggered by the pandemic and made available the CEWS, although most employers did not top up the 25% of workers' wages and would only use the subsidy for active employees. This went against the original intent of the program, which was to reduce layoffs and to help employers maintain workers on the payroll.

The pandemic has had a broad effect on many industries, not just the airlines. Operation of airports, pre-boarding screening services and aerospace, aircraft and component manufacturing are just some of the industries that have been impacted by the decline in air transportation.

For workers, the decline in the industry has translated into massive layoffs. In the air transportation sector alone, 10,000 of our members are currently laid off. Laid-off workers lose more than just a job. They lose their health benefits, and their pension contributions cease. Many of these laid-off workers will not be able to find comparable jobs in the current labour market. Many more will face the grim economic reality and rely on an overburdened, ill-equipped public services system for assistance.

Passenger capacity is down by more than 90% and 28 domestic stations are closed. Station closures of regional airports impact not only workers who depend on those jobs, but entire communities that are now disconnected from the large urban centres.

We urge the federal government to recognize the true impact of the pandemic by acknowledging that this is a sector-specific issue that requires an urgent sector-specific response.

In terms of recommendations, to facilitate policy development, the IAMAW recommends the establishment of a sector council working group consisting of government, industry and union representation. Support for smaller air carriers and fostering regional air networks are essential. A comprehensive and sound policy will ensure the long-term viability of Canadian air carriers, large and regional. The IAMAW has been advocating for a national labour strategy in both aerospace and air transportation. Now is the time to enhance education and training of the next generation of workers.

We also recommend a repatriation plan that secures the jobs of the Canadian aircraft maintenance and technical operations workers. The IAMAW represents members in aircraft technical operations classifications across the country, and their main concern is that the work that should have been done by our members is now being done out of country. Seventy-nine aircraft have been grounded permanently and 200 aircraft have been grounded outside the country. This is what our members can and should be doing here in Canada.

The IAMAW is committed to working with all relevant stakeholders. Ultimately, we call for the development of a sector-specific action plan with goals that will stimulate and rebuild the industry. However, the health and safety of the travelling public and our members are at the forefront of any plan and strategy. Clear boundaries must be set on how public money is used, to prevent paying out bonuses, share buybacks and any other scheme that does not directly benefit the industry.

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Ferguson.

[Derek Ferguson]

Any support must be worker-centric. If there are no workers left in this industry when the pandemic eases, then there will be no industry. Not only will missing this opportunity be disastrous in the short term, but the failure to act will have far-reaching devastating consequences.

In conclusion, we should all be in agreement. Canada's air transportation is at a critical juncture. The lack of action on behalf of the government on this issue cannot continue. Around the world, governments are stepping up to support their airlines. Canada is the exception. Canada needs to directly support the air transportation and aerospace sector.

On behalf of the IAMAW, I thank you for the invitation to participate and for your time.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Ferguson. Well done.

We're now going to move on to the Vancouver Airport Authority.

It's great to see you again, Mr. Bruno. You have the floor for five minutes.

[Gerry Bruno, Executive Advisor to the President and Chief Executive Officer, Vancouver Airport Authority]

Thank you.

Good afternoon, Mr. Chair and members of the committee. Thank you for the invitation to speak to you today.

I am Gerry Bruno, executive adviser to the president and CEO of the Vancouver Airport Authority, Tamara Vrooman. The Vancouver Airport Authority is the private, non-share capital corporation that operates the Vancouver airport—or, as we are more commonly known, YVR.

Since our time together is limited, I will jump right in.

The impacts to our industry run deep. You received detailed accounts back in December from our colleagues at the Canadian Airports Council and the National Airlines Council of Canada, and you also heard distressing stories from my industry colleagues here today. YVR is no exception.

Our passenger numbers dropped 88% last year, our year-over-year revenues declined 63%, and 2021 is looking to be even more severe. We took drastic measures to reduce expenses, consolidating our operations and eliminating all but essential spending on capital projects, and had to secure an additional $600-million loan to allow us to operate with limited revenue for the next couple of years. We're basically operating on borrowed money.

We recognize that we need to fight this pandemic together. As was the case at airports across the country, YVR proactively introduced new measures in our terminals to ensure a safe and healthy environment for passengers and employees. We also partnered with government and invested in a testing pilot to gather scientific data that will help inform policy decisions. Our trial with UBC, Providence Health Care and WestJet explores the use of pre-departure rapid antigen testing, focusing on cutting off risk at the point of origin. We turned our empty parking lots into one of the largest drive-through COVID-19 testing sites in British Columbia. We continue to offer our infrastructure, technology and resources to assist the vaccine distribution of our nation.

However, our industry continues to be in peril and our airports need assistance today. The reality is that 2021 is shaping up to be even harder for our industry than 2020. Recovery is expected to take many years, and experts anticipate that we will not reach mass global vaccination for some time. The aviation industry simply cannot afford to rely on vaccines alone as the solution to this health emergency for the foreseeable future.

You have heard from our industry on the financial assistance we desperately need. We are also extremely concerned about the competitiveness of our transportation systems vis-à-vis the U.S., whose airlines and airports have received tens of billions of dollars in government support. The competitive gap we were experiencing in the past is going to be even greater as we emerge from this pandemic.

Today, I want to focus on the measures we need for a safe and orderly return of travel once the immediate public health concerns have been dealt with.

We require careful planning and coordination by governments and industry today to ensure we are well prepared for the resumption of travel. We need a comprehensive, layered testing framework in place—a national approach and standard that ensures safety in air travel and helps rebuild trust and confidence in our sector. Even with the vaccines in place, travellers will still require testing. There is a lot that is still unknown about the vaccine.

As our borders reopen, governments will need to be confident in the accuracy of passengers' health status, including testing results and vaccination records. This will require government investment in technology that will enable a touchless journey, biometric identity confirmation, collection of verifiable health records, and strong privacy protection.

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Bruno.

[Gerry Bruno]

Thank you.

Not all support measures require significant dollar investments. When the time comes to reopen travel, countries around the world will be competing for [Technical difficulty—Editor]. How can we compete?

One way is by expanding the electronic travel authorization to additional countries. That will stimulate international passenger traffic to and through Canada. Also, the movement of goods will be equally important in Canada's economic recovery and competitiveness. Introducing real free trade zones will contribute to Canada's economic recovery by repatriating and attracting manufacturing, particularly for industries like pharmaceuticals, PPE, and critical emergency supplies. Removing restrictions on value-added manufacturing within those zones, as is done in the U.S. and other countries, could stimulate domestic production and create up to 44,000 middle-class jobs across Canada.

Thank you for your time. I am happy to take your questions.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Bruno. Great job.

We're now going to move on to our first round of questions. We have, for six minutes each, Mrs. Kusie of the CPC, followed by Ms. Jaczek of the Liberal Party, followed by Mr. Barsalou-Duval of the Bloc and concluded by Mr. Bachrach of the NDP.

Mrs. Kusie, you have the floor for six minutes.

[Stephanie Kusie, Conservative, Calgary Midnapore, AB]

Thank you, Chair.

Thank you to all of our witnesses appearing here today.

Mr. Mueller, it's very good to see you again. I would like to know why after such a strong strategy in 2018, a national strategy for the aerospace sector, this government hasn't made it a priority to renew their commitment to doing a strategy for the aerospace industry.