Mr. Speaker, I thank the member from Lévis for giving me this opportunity to speak. As he mentioned we visited the Port Weller dry docks, and I thank him for that.
The hon. member is well aware of the generous package. People need to understand that there is a very generous package in the shipbuilding industry, especially the accelerated capital cost allowance. That is a very quick writeoff.
I keep repeating that the following items are in place: duty on ship imports, domestic procurement for all government shipbuilding and ship repairs, Export Development Corporation financing, and a very favourable research and development tax credit.
Also the federal government participated in an industry led rationalization process that culminated in a more streamlined and viable industry. The federal government contributed $200 million between 1986 and 1993.
Let me talk about shipbuilding in Quebec. The federal government invested $1.6 billion in Davie Industries during the period from 1983 to 1996 in the form of contracts, contributions and loan guarantees. Moreover, commercial arrangements for EDC are currently moving forward to provide additional support to this company through a loan guarantee on the Spirit of Columbus .
As the member acknowledged we have an overcapacity of shipbuilding, in fact 40%. The OECD workshop on shipbuilding policies reported that there would be 40% world overcapacity by the year 2005.
Canada is poised to be a leader in a global knowledge based economy for the 21st century. While focus is based on these knowledge intensive sectors where we are strong, where the opportunity for growth and leadership is highest and where the opportunities for young Canadians are greatest, the government has not and will not abandon an important sector like shipbuilding. In fact the EDC—