Madam Speaker, I am pleased the hon. member for Halifax West has given me the opportunity to speak on the subject of shipbuilding.
Most Canadian shipyards are generally in good shape, providing repair and refit services and some new construction to commercial marine market and government fleets.
The federal government supports the shipbuilding industry in several ways. Our shipbuilding policy initiatives include the following.
First, we have made a commitment to use Canadian shipbuilders for the renewal, repair and overhaul of government fleets. We will continue the policy of domestic procurement for all federal ships and repairs where it is possible to do so.
Second, we have a 25% tariff on non-NAFTA foreign built ships with the exception of fishing vessels over 100 feet.
Third, tax measures are available to ship owners in the form of an accelerated capital cost allowance of 33.3% on new ships built in Canada.
Fourth, shipbuilders are also encouraged to keep pace with the new technology through a very favourable R & D tax credit system.
Fifth, our shipbuilding policy includes financing for commercially viable projects through the Export Development Corporation.
Finally, the federal government worked with the shipbuilding industry on an industry led rationalization process between 1986 and 1993. The industry decided it was necessary to reduce its capacity so that remaining shipyards could survive and remain competitive. The government supported these efforts at a cost of $198 million.
I conclude by saying that the federal government has given substantial support to the shipbuilding industry in the past and will continue to provide support through the initiatives I have just outlined.
Any changes to the existing policy must be looked at in the context of our existing financial commitment and our overall jobs and growth strategy.