Madam Speaker, I am pleased to rise in the House today to offer my support during third reading of this important legislation. I wish in particular to briefly highlight the anticipated benefits of adopting the proposed international interests in mobile equipment act.
It is clear that we all agree that a strong competitive aviation industry is an important component of Canada's economy in the upcoming century. Adopting the bill will help the Canadian airline and aerospace industries compete more effectively in the global economy by facilitating their access to capital markets. It is for this reason that both the industry and leaders support the bill and it is apparent that most members of the House do as well.
On March 31, 2004, 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.
Extensive consultations with interested parties were held throughout the process. Representatives of the Canadian industry were present and participated in many of the meetings leading up to the diplomatic conference in Cape Town as well as the meeting that formally adopted the instruments.
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, much like a mortgage or a lease. Adopting legislation to implement the convention and protocol will reduce the financial risk to creditors, allowing them to make greater levels of financing available for the purchase of aircraft. This could 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 is greater security for creditors, an increase in the global competitiveness of the Canadian aerospace and airline industries, and very important, maintaining jobs in Canada and spinoff effects for various regions within Canada.
If Canada were to ratify the convention and protocol and adopt implementing legislation in a timely manner, Canadian purchasers would be able to benefit from reduced exposure fees. For example, 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 services 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 spinoff benefits for the aircraft manufacturing sector. The airline and aerospace manufacturing industries generate many high paid specialized jobs. The importance of such jobs and their spinoff effects in the economy cannot and should not be ignored.
In the west, Alberta and western Canada will benefit from WestJet's increased competitiveness. As the home of Air Canada, Jetsgo, Pratt and Whitney Canada and Bombardier, Quebec will no doubt enjoy a boost in its economy.
The reason that I am pleased to stand today is that CanJet and Pratt and Whitney Canada in eastern Canada will provide a positive economic impact for eastern provinces. Nova Scotia is one of the provinces that fully supports the bill and is ready to adopt the protocol and convention. It will assist our growing aerospace industry.
Nova Scotia is more known for shipbuilding, another industry that we must keep our eye on and for which we must ensure support. However, the aerospace industry has grown in Nova Scotia and it sees great potential for further growth.
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 this will provide.
Bill C-4 is an important step toward strengthening Canada's aviation industry which will generate competitive and other spinoff benefits right across the country.