Madam Speaker, I am pleased that the hon. member for Lévis has given me the opportunity to speak on the subject of federal shipbuilding policy. I appreciate some of his concerns.
Let me first say that most Canadian shipyards are generally in good shape, providing repair and refit services and some new construction to the commercial marine market and government fleets.
However, Canada is only one of many players in shipbuilding internationally. We must recognize that fact and ensure that our industry is geared to realistic market opportunities. That is why between 1986 and 1993 the federal government spent nearly $200 million on an industry-led rationalization process. The industry itself decided it was necessary to reduce its capacity so that the remaining shipyards could survive and remain competitive.
I must also stress that this government already has a shipbuilding policy. It consists of support to the industry in the form of the following measures and the Minister of Industry has repeated them over and over in this House: domestic procurement by the federal government for all its ship construction and repair requirements where it is feasible to do so; a 25% tariff on most non-NAFTA foreign built ships; an accelerated capital cost allowance of 33.3% on new ships built in Canada, which many other sectors have requested; financing through the Export Development Corporation for commercially viable transactions; and a favourable R and D tax credit system that encourages shipbuilders to keep pace with new technology.
I work with various shipbuilding and repair companies. I encourage them to become more and more competitive, but subsidies are not an answer.
In summary, this government is now and always has been supportive of the shipbuilding industry and we will continue to encourage its development.