Madam Speaker, the Conservative Party believes in cleaning up the environment. We believe in clean air and clean water, and we believe that this should be a priority for government. We also believe that we can do this without decimating our key industries and without implementing unrealistic legislation, placing our key industries at an economic disadvantage internationally. Therefore, I rise today in opposition of this NDP motion.
As the representative for Oshawa, I cannot believe that the opposition party would put forth such an irresponsible, short-sighted proposition. If this motion were to pass, it would have a devastating effect on Canada's auto industry. Canada's Kyoto protocol-defined reduction is very aggressive and not possible to achieve.
Oshawa is famous for producing the best quality automobiles in North America. A big part of the reason we produce such excellent quality vehicles is due to the quality people who put together these cars. Oshawa's auto workers are dedicated professionals whose eye for detail has contributed to a prosperous auto industry in Canada. Today I rise in defence of auto worker jobs and union jobs. The truth is that numerous auto jobs in my constituency will be put in jeopardy if this motion passes requiring mandatory improvements to vehicle efficiency.
The NDP has put forth a motion that does not address the realities of the auto industry and the economic implications of the proposed legislation. This motion proves that the protection and the retention of auto jobs in Canada and the global competitiveness of the auto industry are clearly not a priority of the NDP.
In Canada we build mid to large size vehicles, minivans, cars and trucks. If this motion goes through, it will mean that virtually every car, truck and minivan built in Canada could not be sold here. As chair of the Conservative auto caucus, I had the opportunity to visit each of Canada's five vehicle manufacturers. They were unanimous in what they told me. They told me that legislating a mandatory reduction in fuel consumption of 25% by 2010 would have a devastating effect on the auto industry. As one auto exec bluntly told me, “If we cannot sell the cars here, why would we build them here?”
What the NDP is trying to do is akin to legislating the garment industry into making size two dresses only and demanding that everyone fit into them. That should fix the problem.
If the NDP motion is put through it would greatly restrict Canadian consumer choice. It would mean that Canadians could only drive subcompact cars, such as the Chevy Aveo and the Toyota Echo. What would my constituents who are in the trades drive? I actually have a friend who is 6'3”. His wife is 6'1”. He has two rather tall kids. On the weekend he drives to the cottage with his family, his gear, the dog and sometimes grandma. Which car does my NDP colleague want him to drive, the Aveo or the Echo?
Madam Speaker, I want to let you know that I am splitting my time with my colleague from Edmonton--Leduc.
It is essential that we improve emissions standards, but that we do so in a manner that strengthens not weakens the auto industry. The NDP motion calls for legislation that will undermine the economic and competitive position of the Canadian auto industry. As the representative for Oshawa, I refuse to let auto workers in my constituency be unduly affected by legislation that disproportionately penalizes the auto sector. Look at the time and resources it has taken to elicit a voluntary commitment from one industry to deliver less than 1.8% of the national greenhouse gas reduction obligations that Canada accepted in ratifying the Kyoto protocol.
The fact is that mandatory improvements for the auto industry under Kyoto are unrealistic. The plan calls for a reduction in emissions by 5.2 million tonnes by 2010. A 25% fuel reduction approach is touted as a means to achieve that goal. The lead time for design change in automotive manufacturing is roughly four years. Product plans are already underway for vehicles that will be manufactured by the end of 2010. Product development takes time: time to plan, engineer, design and manufacture. Efficiency improvements are typically implemented as new vehicle programs are initiated and are not suited to mid-product cycle.
The NDP is looking to legislate mandatory improvements when it clearly does not understand the challenges the automotive industry faces today, such as unfair competition from offshore manufacturers and challenges identified in the CAPC report.
Mandatory improvements are unlikely to take into account important variables like differences among the many vehicles various companies produce. Regulation and legislation insensitive to the industry could lead to disproportionate effects on the sector, with devastating effects on workers, plants and dealerships.
The reality is that the Canadian auto industry represents 9% of an integrated North American market. If the NDP members had bothered to check, they would have realized that the United States, Canada's largest trading partner, has not signed on to the Kyoto accord. Canada deals with a 90% auto export rate to the U.S. Attempts to make substantial engineering changes solely for the Canadian market would result in excessive costs, restricted consumer choice and a competitive disadvantage.
It is also a reality that the NDP motion calls for mandatory emission standards when there is no agreed upon cost analysis for the new technology. Independent research by Sierra Research Associates estimates costs based on North America wide application of technologies at as much as $2,600 for cars and over $4,600 for trucks and says that the lead time for compliance with a 25% requirement by the end of 2010 is not sufficient. If the 25% is required on a Canada only basis, the cost would be much higher.
The auto industry has committed to drive greenhouse gas reductions through new technologies, publicly partner with the government in the fight for climate change and support automotive R and D in Canada.
In order to reach those goals, the auto industry is prepared to partner with the government to continue to aggressively pursue the introduction of cost effective, energy efficient technologies and alternate fuel offerings that use lower carbon fuels, and it is committed to a joint government-industry committee to measure progress toward its 5.2 million tonne goal. The industry also has agreed to a joint reporting committee with the government to monitor annual progress.
The industry's voluntary integrated agreement addresses the reality of the continental industry. It combines new vehicle technologies that save fuel with the broader availability of alternative fuels such as ethanol and biodiesels and provides communication support to help consumers adapt driving behaviours and enable them to afford more efficient vehicles in Canada.
The NDP has argued that we should adopt California standards. If the NDP would bother to step outside today and get some fresh air instead of the hot air they are promoting today, they might realize we are not like California.
First, Canada is colder than California. Driving in colder climates consumes more gasoline.
Second, California does not have an industry to speak of. It has one plant. It has little to risk. Canada has a dozen plants and much to risk by adopting unrealistic legislation.
Third, according to the CAW, Canada employs over 150,000 people directly in auto assembly and parts, with a spinoff of seven jobs for every one; this means that for every assembly job seven other jobs are created. Over 500,000 Canadians owe their jobs directly to the auto industry. Is it sensible to risk these jobs for little actual improvement to global greenhouse gas reduction?
Finally, CAW findings show that the Canadian auto industry generated a positive trade balance for Canada of $20 billion in 2001. This trade balance is fragile and depends on the free flow of goods across the Canada-U.S. border.
The NDP has not presented any economic impact studies indicating the cost to industry and costs in jobs in making such drastic legislation.
Canada alone is responsible for only 2% of global greenhouse gases. It is irresponsible to bet our entire auto industry in order to fulfill an ideological mandate. To legislate mandatory emissions standards at this time would be careless.
The Conservative Party is committed to cleaning up the environment while acknowledging the realities of the auto industry and what is attainable within it.
The industry itself is also deeply committed to producing cleaner cars. In fact, the industry has already reduced smog emissions by 99.6% since 1970 through sophisticated emission control technology.
My colleague needs to come clean and admit that not only is this motion irresponsible at this time, but it puts the well-being of the Canadian auto industry and its workers dead last on the list of national priorities for the NDP.