Madam Speaker, I am pleased to expand upon the introductory comments made by the Parliamentary Secretary to the Minister of Transport. I will take this opportunity to outline some of the anticipated benefits of adopting the proposed act on international interests in mobile equipment, that is, aircraft equipment, known as Bill C-4.
I believe we all agree that a strong, competitive aviation industry is an important component of Canada's economy in the 21st century. Adopting this bill will help the Canadian airline and aerospace industries compete more effectively in the global economy by facilitating their access to capital markets.
On March 31 of this year Canada signed the convention on international interests in mobile equipment and the protocol to the convention on international interests in mobile equipment on matters specific to aircraft equipment. The convention and protocol will establish an international framework for the financing of aircraft equipment. Within this framework, the value of the aircraft would be used as security for payment, like a mortgage or a lease.
Adopting legislation to implement the convention and protocol will reduce the financial risk to creditors, allowing them to access greater levels of financing available for aircraft purchasing. This would translate into lower costs for airlines purchasing or leasing aircraft, which would enhance their competitiveness and strengthen the airline and aerospace sectors. The expected result is a direct positive impact on airline earnings, investment and overall profitability.
Among the benefits of implementation are: greater security for creditors; an increase in the global competitiveness of the Canadian aerospace and airline industries; maintaining jobs in Canada; and spinoff effects for various regions within Canada. If Canada ratifies the convention and protocol and adopts implementing legislation in a timely manner, Canadian purchasers will be able to benefit from reduced exposure fees.
For example, in the United States, the U.S. Export-Import Bank is offering a one-third reduction in its exposure fee to companies whose home states have signed, ratified and implemented the convention and protocol before September 30, 2005. This offer recognizes that reducing uncertainty translates into lower costs. This kind of advantage would contribute to the industry's competitiveness. As the Canadian aviation industry becomes more cost competitive, the benefits could be passed on to consumers through increased airline service and lower fares.
A healthy aviation industry will of course translate into more jobs for Canadians. As airlines become more competitive and grow, they will expand their workforce. This has associated spinoff benefits for the aircraft manufacturing sector also. The airline and aerospace manufacturing industries generate many highly paid, specialized jobs. The importance of such jobs and their spinoff effects on the economy cannot be ignored.
Alberta and western Canada will benefit from WestJet's increased competitiveness. As the home of Air Canada, Jetsgo, Pratt & Whitney Canada and Bombardier, Quebec will no doubt enjoy a boost in its economy, and the presence of CanJet and Pratt & Whitney Canada in eastern Canada will provide a positive economic impact for these provinces.
Smaller airlines across the country will also enjoy the benefits created by the convention and protocol. In addition, aircraft manufacturers and their numerous subcontractors throughout Canada will be positively affected by the increased certainty that the convention and protocol will generate.
In short, adopting this bill will be an important step toward strengthening Canada's aviation industry, which will generate competitive and other spinoff benefits across this country.