Mr. Speaker, I want to assure the member that we are looking at the shipbuilding industry.
I thank the hon. member for the opportunity to talk about Canada's shipbuilding industry. The Canadian shipbuilding industry has a long and proud history. Today we have firms recognized as world leaders in the manufacture and repair of ships, the building of offshore oil and gas structures and supplying shipyard related services.
Key stakeholders for our shipbuilding and marine industrial sector include offshore oil and gas exploration, marine transportation, and defence and security.
As the member opposite should know, the Government of Canada supports the shipbuilding industry in a variety of ways. With budget 2006 Canada's new government is working to ensure an economy durable enough to withstand the up and down cycles of world markets by creating a business climate that will attract investment to Canada for the benefit of all Canadians. Budget 2006 demonstrates our commitment to keeping this strong economy moving forward and signals how we want to proceed as a government.
One way is through the economic boost that will come from 29 tax cuts for Canadian businesses and individuals, reductions worth $20 billion over the next two years. Small business owners will have more money to invest in their businesses because we raised the income ceiling for the small business income tax rate and then cut that tax rate from 12% to 11% by 2009.
In budget 2006 we are reducing the general corporate tax rate from 21% to 19% by 2010. We eliminated both the federal capital tax and the corporate surtax. The unemployment rate in Canada remains near its lowest level in more than 30 years, while the employment rate is near its highest on record. This is because, despite challenges in some parts of the manufacturing sector, Canadian companies continue to grow and create more jobs.
Our government is reviewing various industrial sectors with a view to increasing our economic competitiveness. For Canada to compete globally, we have to establish an environment for investment where those who wish to innovate and bring new products to market have the opportunity to do so.
It should be noted that the Canadian shipbuilding industry sees government support in two more direct ways: a 25% duty on vessels imported from countries with which we do not have a free trade agreement; and in June the government announced a $2.9 billion joint support ship project for Canada's navy.
This project will deliver three multi-role vessels for Canada's navy and includes a base cost of $2.1 billion, plus an estimated $800 million in contracted in-service support over 20 years. The Canadian shipbuilding industry is well positioned to play a significant role as the joint support ship project proceeds.
The Government of Canada recognizes the global commercial and trade environment is changing and we are evaluating our policies to meet that new reality.
In the weeks and months ahead, the government will review what is the most effective role for it to undertake with respect to the Canadian shipbuilding industry. We are committed to the competitiveness of Canadian industry and to fostering a climate where all businesses, including shipbuilding, can thrive.