Mr. Speaker, let me say that the government has made a substantial commitment to aerospace and other high tech, high growth sectors especially in the Montreal area and across the country. An example of this commitment is Technology Partners of Canada whose budget was increased from $150 million two years ago to $250 million this year.
The Montreal area, where much of Canada's aerospace industry is located, and all of Canada stand to benefit greatly from TPC. There have already been investments in several world class aerospace projects. There have been other investments in the biotechnology, environmental technology and telecommunications sector.
The success of the federal government strategy for promoting partnership for innovation, economic growth and job creation is evident across Canada.
With respect to Pratt & Whitney Canada our commitment has been substantial. Today TPC has invested in two Pratt & Whitney Canada projects totalling $147 million. We are continuing to work closely with Pratt & Whitney Canada to explore all reasonable options that can be pursued to support the company's future development.
The minister recently met with Pratt & Whitney Canada executives to this end. We believe Pratt & Whitney Canada is committed to its Montreal operation and elsewhere in Canada. The Government of Canada is committed to continuing partnership with Pratt & Whitney.
With respect to employment, the impacts are not as immediate or as dramatic as one might be led to believe. Not until the end of 1999 would there be a significant reduction of jobs. This is a normal phenomenon for a cyclical industry like aerospace and largely the result of the completion of earlier research and development projects. As well the company has indicated this will mostly be implemented through early retirement and normal attrition.
Let me say that the aerospace industry is growing at a very favourable 14% rate annually. Although some jobs will be lost at Pratt & Whitney, other local aerospace firms such as Bombardier and Bell Helicopter are still expanding.