Mr. Speaker, as my colleague, the hon. member for Lévis-et-Chutes-de-la-Chaudière has said, this is a very important matter, one that affects his riding and mine, and a number of others across Canada. I am pleased to respond to the hon. member.
As the hon. member has said, on June 19 the hon. Minister of Industry announced the launching of the new policy framework on shipbuilding and industrial marine industries.
The culmination of a lengthy process of consultation with Canadians, this new policy framework focuses on opportunity, growth and innovation in niche markets where Canada can compete. This policy is designed expressly to help the industry capture domestic opportunities, look globally, use innovation as a key to competitiveness, find financing and build stronger partnerships.
The new policy framework includes 24 measures to support new works with a value of between $200 million and $300 million, which is double the current production. The structured financing facility now in operation is a key element of this framework.
The purpose of this facility is to stimulate the demand for new Canadian ships in existing Canadian shipyards, by offering financial benefits to Canadian and foreign buyers and lessees.
This facility includes two main elements: the first one is the interest rate, which can provide a reduction of up to 10% of the purchase price of a Canadian built vessel, while the second one is a credit insurance that insures part of a loan or lease to buy ships built in Canada.
The structured financing facility will help the Canadian shipbuilding and industrial marine industry to seize new opportunities by allowing for the setting of competitive prices for buyers and lessees of high quality ships built in Canada.
I am pleased to inform the House that this initiative is well underway and that we are currently receiving applications for assistance under the structured financing facility.
Even before the program was introduced, however, the federal government already provided assistance to the industry in the following forms: accelerated capital cost allowance for Canadian-built ships; a 25% tariff on most non-NAFTA ship imports; domestic procurement by the federal government; Export Development Corporation financing for commercially viable transactions; and a very favourable research and development tax credit system. These important elements of the federal policy continue to help the shipbuilding industry.
The reality of the private sector means that all companies have their share of troubles. The shipbuilding and industrial marine industry, and a company such as Davie in particular, are no exception.
The federal government is continuing to monitor the situation closely and the Minister of Industry met with representatives of Davie on September 20 to discuss the current financial situation. He also met with Mrs. Marois, Quebec's minister of finance, to discuss Davie's request for financial assistance. Although the government of Quebec indicated that it could not support the projects proposed at the time because it found them unrealistic, the federal government remains prepared to work with the government of Quebec and all other stakeholders to help them find a solution.
The new policy framework represents a serious commitment on the part of the federal government to continue to help the industry. The policy benefits from the support of a new organization, within Industry Canada, responsible for the energy and marine sectors.