Debates of Nov. 13th, 2007

Opposition Motion—Manufacturing and Forestry

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I will be sharing my time with the member for Chambly-Borduas.

Why are we debating this motion on the manufacturing sector today? Because the Bloc Québécois decided that it could not accept the fact that the finance minister's economic statement had nothing to say about the manufacturing and forestry crisis in Canada. This is old news.

Nearly a year ago, in February 2007, the Standing Committee on Industry, Science and Technology issued a unanimous report entitled “Manufacturing: Moving Forward--Rising to the Challenge”. The committee chair, who is the Conservative member for Edmonton- Leduc, and all the committee members from all parties decided that this report deserved the government's support.

Here is an excerpt from the report, which was released nearly a year ago, in February 2007:

While the rest of the Canadian economy is generally very robust, many industries within the manufacturing sector are struggling to remain competitive against the backdrop of a Canadian dollar that has risen in value by more than 40% in just four years in comparison to its American counterpart, rising and unpredictable energy costs, increasing global competition, particularly from China and India, and excessive and inefficiently designed regulations, to name but a few challenges.

The report also said:

The Committee believes that the Government of Canada should make the preservation of a competitive Canadian manufacturing sector a national goal, and that given the gravity of the challenges facing the sector, the recommendations presented in this report should be implemented in a timely fashion.

The Bloc Québécois members of the committee, of which I was one, supported this report in good faith, because it contained a comprehensive industrial strategy Canada needed in order to give the manufacturing industry a chance. Now, in November 2007, nearly one year later, and especially in the wake of the economic statement in which the government ignored all the committee's recommendations, half of one recommendation on accelerated depreciation was included in the most recent budget. There are still 21 and a half recommendations to be implemented, but the government's current attitude does not give us much hope that this will happen.

The government is acting like the economy is doing well. It keeps saying that the unemployment rate has gone down. In my riding, when people systematically go from jobs that pay $15, $18, $20 or $22 an hour to jobs that pay $8, $10 or $12 an hour, things are not so rosy. In my riding, since the 2006 election alone, Bermatex in the textile industry has closed, as have Consoltex, and Baronet in Beauce and a sawmill in Saint-Juste-de-Bretenière. Whirlpool closed as well, just before that period in 2006. Hundreds of jobs have been lost. The Standing Committee on Industry, Science and Technology tabled a unanimous report on this—with support from all parties—but the government is still unable to follow through. We wonder why this is so. Maybe it is just the Conservatives who are currently in government who think nothing needs to be done.

I have an excerpt of comments made by Mr. Poloz, Senior Vice-President Corporate Affairs and Chief Economist at EDC, Export Development Canada, “Canada’s overall export sector is having a tough go, with growth minimal during the past four years”. Minimal during the past four years! The Conservatives went so far as to add, on page 28 of the finance minister's economic statement, a chart entitled, “Real GDP Growth by Sector Since December 2005”. There is only one sector that has had positive growth and that is the oil sector. All the other sectors, machines, paper and printing, plastics, rubber and metal products, food and beverage, primary processing of metals, textiles, clothing and leather, wood, furniture and non-metallic mineral products, cars and parts, all these sectors have experienced negative growth and it is getting worse.

On page 27 of the economic statement we read:

The manufacturing sector has been impacted the most over the past two years, with real output declining by more than 3 per cent and employment declining by more than 130,000 since December 2005.

How can an elected government, that says it is capable of managing the economy properly, sit back and do nothing? This is not a problem that cropped up yesterday morning; this problem has been around for many years and was raised unanimously by the Standing Committee on Industry, Science and Technology, by members from all the parties, including Conservative members and the chair of the committee himself, who made the observations I mentioned earlier.

That is not all. Recently, the Premier of Quebec and the Premier of Ontario said the same thing, that is, that the federal government must do its part. In Le Soleil, in an editorial entitled “Impervious Harper”, Ms. Breton writes:

It is time [the Prime Minister] saw the cracks in the Canadian economy and did something about them. How can the Prime Minister say the country's economy is as solid as the Canadian Shield, when thousands of jobs have been lost in the manufacturing and forestry sectors, and even more are threatened by the soaring loonie? Of course, the Prime Minister cannot interfere in the responsibilities of the Bank of Canada. It is a fact: it is not up to politicians, but rather, the Bank of Canada to determine monetary policy and set interest rates.

He could use any number of means. There is the entire report produced by the Standing Committee on Industry, Science and Technology. The report is there; all he had to do was act on it. All he had to do was have the Minister of Finance say, with complete logic, based on page 30 of the economic statement, that in order to address these problems, to tackle them and find solutions, he would implement a number of the recommendations unanimously passed by the members of this House. However, he has not had the courage to do so.

What is the underlying reason? I can think of only one. The Conservative government is only interested in promoting the oil and gas companies. Indeed, that sector's economy is doing very well at this time. Canada currently has a two tier economy. There is the economy of the west, where oil and gas companies are growing very rapidly, and the economy of the east, in Quebec and Ontario, where things are very difficult in the manufacturing sector. It is quite surprising and rather appalling that the Conservative government has not seen any measure it could take, among the many recommendations made by the Standing Committee on Industry, Science and Technology. I would like to come back to this, because I think it is very important to do so.

Here are more objections. In a letter addressed to the federal Minister of Finance, Jean-Paul Gagné, who is an editorial writer for the newspaper Les Affaires, wrote: However, allow me to tell you once again that these tax cuts are ill suited. The Prime Minister, who holds a master of economy, and yourself must have learned in university that lowering the GST promotes consumption, but that includes to a large extent imported goods, and this does little for Canada's economic growth.

People have come to realize that lowering the GST by 1 point results in a direct transfer of money to China. This measure did nothing to help our manufacturing industry be competitive and make goods that can be sold at competitive prices. In no way did the Conservative government act to promote that. Rather, the result was a total free market, which means that we are almost subsidizing employment abroad, and that is totally unacceptable.

But let me get back to what Mr. Gagné was telling the Prime Minister: You put political considerations before economic governance and cooperative federalism. The future of several provinces, and even that of the country, is in jeopardy, because public authorities are not investing enough in education and innovation.

So, there is a general opposition to this measure, including by the Standing Committee on Industry, Science and Technology, the Premier of Quebec, the Premier of Ontario, the editorial writer, and particularly the people who are going through tough times in each of the companies that we visited.

Last week, during the break, we heard everywhere news about sawmills going through very difficult times and about the forest industry needing some action by the federal government. As far as the manufacturing sector is concerned, there have been similar messages, but the government has in no way started to move in that direction.

That is why, today, the Bloc Québécois has brought this motion before the House. We hope to have the support of a vast majority of members in this House, Liberals, New Democrats and Conservatives who also encounter this reality in their ridings. There are indeed Conservatives in Quebec who depend on the forest industry and who want the federal government to be told to go back to the drawing board. They think this is important. They want us to let the government know that the economic statement does not deal with the real problems, that there are deep problems and that the government has the financial margin to tackle these problems. In fact, the government has billions of dollars to do that and has the industrial strategy proposed by the Standing Committee on Industry, Science and Technology. The government as a whole has this ability. The Prime Minister and the Minister of Finance must go back to the drawing board and make sure that we will not have to face tomorrow a disaster caused by the Conservative government.

[Louise Thibault, Independent, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I would like to thank the member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup for his speech. He already discussed this, but I would like him to answer a more in-depth question. Anyway, I am giving him the opportunity.

He spoke about the forestry and manufacturing sectors, saying that not only are they now in competition with China, India and other emerging countries, but that this competition was already established and foreseeable. For a variety of reasons, the sectors were not able to prepare or were not ready.

In addition to the emergency measures proposed in this motion—we are talking about a bandaid solution—I would like to know what else there is for citizens and other levels of government that have made a real effort to prepare for the future. We are asking the Conservative government to make tangible plans, here and now, in our regions. How will this be done so that the industry and our people can legitimately generate profits and live well like other Canadians?

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I thank my colleague for her question.

When we speak of the forestry industry, we think of the companies, sawmills and workers in the forest. Now lumber producers are being affected. Mr. Jean-Louis Gagnon, President of the Syndicat des producteurs forestiers du Bas-Saint-Laurent stated: “Producers have been hit hard. In some families, it is the bread and not just the butter that may not be on the table.”

The forestry sector is in a crisis that is affecting not only companies, which are closing one after the other, but the entire sector. This is detrimental to the family incomes derived from this sector in our society.

With regard to the second part of her question, I would like to read the tenth recommendation made by the Standing Committee on Industry, Science and Technology. We submitted a comprehensive strategy. The committee recommended the following:

That the Government of Canada conduct an internal review of Canadian anti-dumping, countervail and safeguard policies, practices and their application to ensure that Canada’s trade remedy laws and practices remain current and effective.

We also recommended that the Copyright Act be amended.

The recommendations overall sought to stop the importing into Canada of goods manufactured in unacceptable environmental or working conditions. We need true globalization where everyone meets the same requirements, which is not the case currently.

The Conservative government is abetting operations carried out in unacceptable environmental and working conditions in an attempt to lower the rate of inflation. This Conservative government must take action in this regard and implement the recommendations of this unanimous report.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I thank my colleague from the other side for his speech regarding the opposition day motion.

I have been sitting here all morning listening to the speeches. My colleagues from the Bloc Québécois have made a number of points. I am very glad that they will never form the Government of Canada. They would drive us so far to the left that we would not be able to see back from that spot. Their tax and spend policies would be unbelievably bad for this country. Thank God they will be always on that side of the House in a small corner, which hopefully will be even smaller after the next election.

I take a little offence with some of the comments, not just from the member, but the Bloc members who spoke previously, in talking about big bad companies doing things. I am from a riding which has a number of small manufacturers, not that the forest industry is a small manufacturer, but they are desperate for employees. Things are tough, obviously, with the dollar. They understand that. At the end of the day, it is people in Canada, employees, who make things, not big bad companies, as if they do not exist. Companies would not exist without people.

Does the member not understand that the unemployment rate is at an all time low in this country? What would the Bloc do to improve the unemployment rate?

[The Acting Speaker, Conservative, Royal Galipeau]

The hon. member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup must know that his time has expired, but I will give him a few seconds to respond.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I just want to tell my colleague that there are socialists in the Conservative Party also. The chairman of the Standing Committee on Industry, Science and Technology is a Conservative. Four Conservative members were in favour of implementing the recommendations contained in this unanimous committee report, but the Conservative government did absolutely nothing to follow up on that.

Was it a mistake on the part of the members or did the government not take its responsibilities?

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, first of all I want to congratulate and thank my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup for his speech and, of course, for the exceptional work he did when he was our party's critic for human resources and social development, as he is doing now as finance critic.

As for everything else in this House, we always try to show discipline out of respect for our colleagues. I would appreciate it if our colleagues would do the same today out of respect for this House.

Earlier, my colleague clearly showed that this obvious political choice on the part of the Conservative Party is based on the same pillars as those used by the Bush government in the United States. This means that the strength of the economy must come from the military industry and the oil industry, as my colleague so aptly illustrated. Right now, oil is to our economy what EPO is to some athletes who resort to doping. It is the only industry that gives some impetus to the Canadian economy since all other sectors are in trouble, particularly the manufacturing and forestry sectors.

I would say to our colleagues from Quebec in the Conservative party—and I would say the same thing to the Liberals—that, when we, the Bloc Québécois, appear at any meetings or gatherings, people tell us all the time that we look as though we are working very hard. I always tell them that, in the Bloc Québécois, we have to work hard because we are working for 75 members, even though there are only 49 of us. Why? It is because there are federalist party members who are definitely working against the interests of the population, who are primarily concerned about the interests of the powerful, especially the oil companies. It is true. This is about more than just grandstanding.

My colleague said so awhile ago. Look at page 30 of the economic statement. All industrial sectors are there. At present, the only one that gets ongoing financial support from the Canadian government is the oil industry, those I would call the oil barons.

Meanwhile, in Quebec, our economy is based heavily on the manufacturing sector. The manufacturing sector is so crucial that in Quebec there are three times more revenues generated by the manufacturing sector than what Alberta, for example, produces through the oil industry, that is, 536,000 jobs with a payroll of $22 billion.

This is the economic impact the manufacturing sector has in Quebec, a sector that accounts for 90% of international exports. Thus, of the $69 billion in exports, $63 billion comes from the manufacturing sector.

The production of goods generates the most wealth in Quebec. But when measures to revitalize the manufacturing sector are not accepted, this amounts to policies that run completely counter to Quebec’s interests.

To illustrate my remarks, I remind the House that 135,000 manufacturing jobs have been lost in Quebec, or the equivalent of one worker in five, since December 31, 2002. That is 65,000 jobs lost since the arrival of the Conservatives.

This morning our colleagues listed the measures designed to help the manufacturing sector. It would have been far better if they had not put them in place because I get the impression that the measures they have taken have done more harm than good to the manufacturing sector.

One colleague said: “Do not tell us what has happened, tell us what you are going to do.” You made a commitment—and you are doing so again today—to provide help for the manufacturing sector, but you are not announcing anything.

The Bloc’s motion, put forward today, has the advantage of getting each party to take a position to ensure concrete measures with a view to helping the manufacturing sector. In Quebec, some 275,000 jobs have been lost in the manufacturing sector alone.

Let us speak now of the forestry crisis. From May 2002 to April 2005, a total of 10,000 jobs were lost in sawmills and paper mills. That was before 2005. Since April 2005, 21,000 more jobs have been lost. This is the Conservatives. The last MPs elected in byelections were Conservative members. I come back to this often, because it is important for citizens to realize that there are people in this House who got themselves elected on platforms which clearly distorted the truth. The member forRoberval—Lac-Saint-Jean got himself elected by telling the forestry industry that he would help it out, by asking it to bring him to power in this government. His first speech in the House was concerned with idolizing his leader. He spoke about “a certain Albertan”. He used just about every term available to sing his praises, but no terms to describe the measures that had to be taken to give some dignity to the people he represents in his constituency. The only way to give that dignity is to propose concrete measures for the forestry industry.

Those concrete measures can be found in the motion. Here are the solutions: better tax support for research and development, particular attention to the resource regions, investment in development of new products. We could have filled pages with them, but managed to summarize things in a single motion. Will they vote for this today? This is the hour of truth for the people who got themselves elected on the promise to help out these workers and these entrepreneurs.

Earlier, a colleague was talking about employment insurance. We have just proposed concrete measures to help out the industry. However, when workers suffer inevitable job losses, they are willing to go back to work. They are brave people who want to work. So they go and take courses and attend back-to-work sessions, when there are jobs. But what happens when there are none?

They have been beset by two misfortunes. First, they were faced with a Liberal government that destroyed the employment insurance program. Then, the Conservative government went back on its commitments, namely that it would restore the employment insurance program, specifically by setting up an independent employment insurance fund so that the government would stop dipping into the fund for other purposes. However, there are older workers who no longer have an income, who find themselves on welfare, even though they have contributed to employment insurance all their life. The Liberal government eliminated the POWA, and the Conservatives promised to restore it. However they are maintaining the position of the Liberal government.

It is the same thing with employment insurance. At the end of this month, we will have the second hour of debate at third reading of Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system). This bill is intended to restore the employment insurance system by providing benefits to people who have contributed to the fund and who are the only ones, with their employers, who have done so. And all the money needed to do this is there. In fact, there is another $3,300,000,000 surplus this year, so we have what is needed to be able to meet the obligations of Bill C-269. And yet the government continues to impose constraints on workers who lose their jobs.

I in turn invite my colleagues to vote for this motion, so that this government will take concrete steps to help these two sectors, manufacturing and forestry, to get out of this crisis.

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I was listening to the member's speech and it is just another example of how he has not done his homework because in the motion the Bloc is asking us to do things that we have already done.

For example, on lowering taxes, in our economic statement last week we had over $60 billion in tax cuts for businesses, manufacturing and their families. What did the member do? He voted against it.

The previous member talked about the 22 INDU recommendations. We addressed 21 of these and he says that that is nothing. He is saying that $400 million for the Windsor-Detroit border is nothing. He voted against it. There was $500 million for labour retraining. He is saying that that is nothing. There was the creation of an older workers program. This is exactly what he just spoke about three minutes before, and he is not supporting that. There is the accelerated capital cost allowance and again he is saying no to that. There is our science and technology strategy, advancing all these different investments for record research and development. He is not supporting that. He is saying we are doing nothing. Is he calling that nothing?

Right now we are looking at reviewing the SR and ED tax credit and our biofuels program. All these things are exactly what the Bloc is asking for and exactly what we have already done, but the Bloc has not come forth and come clean with the people of Quebec. He says he supports manufacturers, but then the Bloc has this radical environmental program that if implemented would be the nail in the coffin to the manufacturing industry. It would increase the cost of fuel and heating. It would increase the cost to manufacturers.

I want him to stand in the House today and acknowledge how he is going to support manufacturers but also support this radical environmental program that the Bloc Québécois wants to put forward.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, my colleague is not playing very nicely here. He knows very well that a tax cut is quite different from a tax credit. A tax credit can be used by businesses, for example, that experience losses, but a tax cut does nothing for businesses not generating profits.

This year, the big winners when it came to tax cuts were the oil companies. Together, they got over $500 million more out of this economic statement, but there is nothing for paper mills and the manufacturing industries. Why? Because they do not generate profits? Now it is clear.

Why is the member playing this game? It is not very nice. I know I must choose my words carefully, but it has to be said. It is not appropriate to say such things.

When he talks about programs created, he is talking about programs that the Conservatives recycled because they had modest results. So they recycled them. They got rid of them only to reinstate them. There is nothing new.

The examples the member gave us have nothing to do with Quebec and are not examples that exist in the manufacturing industry. When a bridge is built or refurbished, this has nothing to do with manufacturing or forestry. That is what he needs to understand. We will eventually get him to see this.

[The Acting Speaker, Conservative, Royal Galipeau]

The hon. member for Rimouski-Neigette—Témiscouata—Les Basques with a brief question, please.

[Louise Thibault, Independent, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I would like to thank my colleague from Chambly—Borduas for his speech.

What really struck me as my Conservative colleague was speaking was that he was verging on intellectual dishonesty—I am choosing my words carefully here—when he talked about reducing taxes. He knows perfectly well that we are talking about companies that are in dire straits and are not making a profit. Everyone here understands that, and the public does too.

I want to focus on one aspect of the debate. I would like to ask my colleague whether he can comment on the measures in the motion that deal with the resource regions I come from. I hate calling them “resource regions” because that suggests that others come in, take our resources, and then abandon us to our fate.

Would he be kind enough to tell us what he hopes to accomplish with these measures for resource regions?

[The Acting Speaker, Conservative, Royal Galipeau]

The hon. member for Chambly—Borduas has 40 seconds to respond.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, I would like to thank my colleague for her question.

In a nutshell, this is about helping businesses in the regions to add value to the resources in their regions via secondary and tertiary processing. We have to support them in their research and development efforts. We have to help them take part in the new economy and break into growth sectors in their regions so they can use their own resources and go to market with finished products. I think that is one very concrete measure we could take.

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I am pleased to speak today to Canada's economy and how the Conservative government's policy and initiatives are delivering, in a significant manner, for Canada's manufacturers and our forestry industry.

Less than two years ago, Canadians voted for a change. Canadians voted for a government with clear priorities, for leadership, for accountability and for action, which is exactly what the Conservative government has done. This government stepped up to the plate, assumed its responsibilities and is getting the job done.

Because of the leadership of our Prime Minister, Canada's economy has never been stronger. Despite the rhetoric of the opposition parties, Canada's economy is rock solid. Contrast this to most of our closest trading partners that are experiencing economic uncertainty and flirting with recession.

Canadians now enjoy the lowest unemployment rate in 33 years, 5.8%, which includes the lowest unemployment rate in years for Quebec. This year alone overall employment in Canada has increased by nearly 350,000 jobs and most of these are full time, high quality, good paying jobs. Business investment is expanding and we are experiencing the second longest economic expansion in our nation's history.

We are the only country in the G-7 that has ongoing budget surpluses and a falling debt burden. As our government continues to pay down our debt, we will ensure that the interest payment savings are returned to hard-working Canadians in the form of tax cuts, similar to the $60 billion tax cuts announcement made by the Minister of Finance just two weeks ago, which, by the way, the hypocritical Bloc voted against.

Our economy continues to grow at a solid pace. During the second quarter of 2007, the Canadian economy grew by 3.4% and following first quarter growth of 3.1%. Private sector forecasters expect continued solid growth over the next five years. The world is bullish on Canada and with good reason.

Who is responsible for this success? The answer is very simple. Canadians from all walks of life and across all communities, those who every day are developing and adding value to our resource industries, those working in our manufacturing industries, those innovating and developing in our schools and universities, those maintaining our critical infrastructure, our construction industry and those other Canadians who provide the goods and services that make this nation what it is today.

It is thanks to these Canadians that we can stand up with pride and say that Canadians from coast to coast to coast are building a better, safer and stronger Canada.

What was the role of the Bloc Québécois in attaining these economic feats? The answer is and forever will be that of a bench warmer. The Bloc will always be relegated to the opposition benches and will never be able to deliver a single result for la belle province.

In stark contrast to the party that will always be in proverbial opposition, this government understands the vital role played by the manufacturing sector. We have acknowledged its challenges and have delivered meaningful results.

Manufacturers employ over two million Canadians in our cities and in our rural communities, in small businesses as well as in large firms. Manufacturing directly represents one-sixth of our economy. The economic spin-offs from this important industry reverberate throughout the entire economy. Without a doubt, a strong manufacturing sector is crucial to a vibrant national economy.

If the Bloc had researched the topic, it would have realized that nearly everything in its motion has already been addressed by either the industry committee's manufacturing report or one of the Conservative government's major economic or innovation announcements.

The industry, science and technology committee, which included two Bloc members, heard first-hand how this vital sector has faced challenges over the past several years, including higher and more volatile commodity prices, intense international competition and a slowing United States economy. On top of this, Canadian manufacturers have had to adjust to the sharp rise in the value of the Canadian dollar.

Last February, my good friend and colleague, the member Edmonton—Leduc and chairman of the House of Commons Standing Committee on Industry, Science and Technology. presented the results of our committee study on the challenges facing Canadian manufacturers. The committee heard from over 100 witnesses and, thanks to the hard work of the member for Edmonton--Leduc, the committee produced 22 unanimous recommendations to our government. These recommendations cover taxation, energy, labour, trade and intellectual property rights protection, as well as regulatory, infrastructure, research and development and commercialization policies.

What was the response of the Conservative government? In budget 2007, we successfully delivered on 21 of 22 of the recommendations, which is why many consider budget 2007 the most manufacturing friendly budget ever delivered. Long before the Bloc conceived this petty attempt at playing politics with this critical sector, our government delivered meaningful results.

Our response, “Manufacturing: Moving Forward - Rising to the Challenge”, was a comprehensive and overwhelmingly positive report, demonstrating our commitment to manufacturers, their employees and the communities in which they live. Our response demonstrates leadership and a willingness to act with urgency at a time when manufacturers need it most.

The government's response was quick and decisive and spoke directly to the needs of manufacturers. Our response delivered immediate tax relief. It secured Canada's place as a leader in the production and use of clean and renewable energy sources through strategic investments. It introduced new initiatives and improvements to existing programs to help ensure that Canadian manufacturers have access to a highly skilled and a well educated workforce.

Last November, the government set in motion its long term economic plan to create five advantages to improve the quality of life and succeed on the world stage: first, a tax advantage that reduces taxes for all Canadians in establishing the lowest tax rate on new business investment in the G-7; second, a fiscal advantage that eliminates Canada's total government debt in less than a generation; third, an entrepreneurial advantage that reduces unnecessary regulation and red tape and increases competition in the Canadian marketplace; fourth, a knowledge advantage that creates the best educated, most skilled and most flexible workforce in the world; fifth, an infrastructure advantage to build the most modern infrastructure that we need; and, sixth, to build a tax advantage, budget 2007 spoke directly to the needs of Canadian manufacturers by introducing tax measures and initiatives that benefit them.

First and foremost, the Conservative government provided a shot of adrenalin to manufacturers by delivering on the number one recommendation of the industry committee report and Canadian manufacturers and exporters of an accelerated capital cost allowance for the purchase of machinery and equipment, allowing for a two year writeoff on these investments. We also increased the capital cost allowance rate for buildings used in manufacturing or processing to 10% from 4%, as well as for other assets. These measures will allow our manufacturers to invest in the buildings, machinery and equipment that will help them remain innovative, productive and competitive.

Budget 2007 also accelerated the elimination of the federal capital tax by two years and eliminated the corporate surtax for all corporations. Again, it was this Conservative government that delivered these measures, while the Bloc will always play the benchwarmer.

Two weeks ago, in his economic statement to the nation, the Minister of Finance announced that our government would further stimulate the manufacturing and processing sectors with additional corporate tax reductions that will provide $2.6 billion in tax relief. This was another bold fiscal measure that was praised by Canadian manufacturers and exporters, again another measure the Bloc could never deliver because it will always be in opposition.

Our bold new tax reduction initiative will lower the general corporate income tax rate to 15% by 2012 from the current rate of 22.1%. With these tax reductions in place, Canada will achieve the lowest overall tax rate on new business investment in the G-7 by 2011 and the lowest corporate statutory income tax rate in the G-7 by 2012. These measures were welcomed by business and manufacturers as an extremely important step in building upon Canada's ability to compete internationally to retain and attract new business investments.

The commitment to eliminate Canada's net debt within a generation will provide for further tax relief in the future. Our Conservative government has committed to return any interest savings from reducing debt back to Canadians directly in the form of lower taxes.

It is imperative to note the height of the Bloc's hypocrisy at this point. Despite the Conservative government providing lower corporate, business and personal taxes, two weeks ago the Bloc stood in this House and voted against each of the measures that will provide substantive assistance to manufacturers when they need it most.

This government has delivered many other measures and initiatives that are enhancing Canada's economy and assisting manufacturers.

A major element of our plan to build an entrepreneurial advantage is to relieve businesses from the paper burden imposed by bureaucracies, which is why we are cutting red tape for small and medium sized companies that often bear a proportionately higher regulatory cost than the larger companies.

Last month, my colleagues, the President of the Treasury Board and the Secretary of State for Small Business and Tourism, took another giant leap toward the reduction of red tape for businesses by eliminating 80,000 requirements and obligations in 13 key regulatory departments and agencies. Our goal is to reduce the federal paperwork burden for businesses by 20% by November 2008. Again, a measure the Bloc will never deliver for Quebec manufacturers.

Another important initiative the government has provided was the announcement of the competition policy review panel as promised in budget 2007 last July. The creation of this panel is another example of how this government is taking seriously Canada's economic place in the world and another sad reminder of the uselessness of the Bloc.

Last week, the competition policy review panel released its consultation paper “Sharpening Canada's Competitive Edge”. The panel will listen to Canadians and make recommendations on how to create the conditions to foster the development of Canadian-based global businesses and how to position Canada to be a world-leading destination for talent, capital and innovation.

To compete in today's global marketplace, manufacturers must be innovative and have access to highly skilled employees. This Conservative government is creating an environment where Canadians firms can harness knowledge, commercialized research and produce innovative products and services.

Canada's long term competitiveness and our standard of living depend on research and development of new ideas. This is why it was no accident that Prime Minister Harper released the national science and technology strategy--

[The Acting Speaker, Conservative, Royal Galipeau]

It is with regret that I interrupt the hon. parliamentary secretary, but he holds an important and trusted position in this House and he should know that we do not refer to other members of the House by their name but by their title or the names of their ridings.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, the Prime Minister released the national science and technology in Waterloo last May, which is a hotbed for innovation. Mobilizing science and technology to Canada's advantage, our S and T strategy is designed to boost private sector investment in research and development and enrolment in university science and the engineering programs.

Our strategy is designed to promote world-class excellence, focus on priorities and encourage partnerships, including collaborations involving the business, academic and public sectors. It focuses on four areas that are important to Canadian manufacturers: natural resources, the environment, health and information technology.

The government will foster a competitive and dynamic business environment, pursue public-private research and commercialization partnerships and increase the impact of federal business R and D assistance programs. We are forging ahead to deliver on these commitments.

To address another of the unanimous targeted tax recommendations from the industry committee's report, supported by the Bloc, the Minister of Finance and the Minister of National Revenue recently launched consultations on how to make the scientific research and experimental development, or the SR and ED tax credit program, more effective for Canadian business, including manufacturers.

The SR and ED tax credit is one of the most generous programs of its type in the world. Yet manufacturers are not taking full advantage of it. We will fix that as we strive to improve the program to make it more relevant and more accessible to businesses, including manufacturers.

Again, this is another example of how the Bloc can only recommend, but in the end, it has no place to deliver real results for Quebec.

The Conservative government did not stop there. Just four weeks ago the Minister of Industry and the Minister of Finance announced $105 million to seven centres of excellence, focused on priority issues of research and commercialization for Canada. This funding will help Canada achieve world-class success in strategic areas of scientific opportunity and competitive advantage. I have no doubt that much of the work in these centres will benefit manufacturers.

Progressive steps the Conservative government has made keep going.

On October 18, the Minister of Industry announced the appointment of 17 members to the new Science, Technology and Innovation Council. This council will play a vital role in providing science and technology advice on issues identified by government, which are critical to Canada's economic development and well-being. A number of these members have worked in Canada's manufacturing sector and they understand manufacturers' needs.

I would like to boast of one private-public success story. The Minister of Industry recently visited the Canadian Space Agency David Florida Laboratory to view the next generation commercial satellite, RADARSAT-2. This state of the art technology demonstrates what investment in science and technology can produce. It is a product of the unique public-private sector partnerships and is manufactured right here in Canada. It is a testimony of what can be made here in Canada and in a high tech manufacturing environment by highly skilled Canadians.

The government has set out the kind of measures and initiatives that allow manufacturers to adapt and innovate, again, measures the Bloc will never be able to deliver.

Finally, to create an infrastructure advantage, the Conservative government is intent on supporting a climate of success for manufacturers by investing in critical infrastructure across Canada.

Recently, on November 6, the Prime Minister, Premier Gordon Campbell and the Minister of Transport, Infrastructure and Communities signed a historic Canada-B.C. agreement to launch “Building Canada”. Building Canada is a historic $33 billion infrastructure plan that will build a stronger, safer and better Canada. Building Canada will provide more funding over a longer period of time, from 2007 to 2014, than any previous federal infrastructure initiative. This plan includes investment of $1 billion for the Asia-Pacific gateway and corridor initiative and of $2.1 billion for the gateways and border crossings fund, which will help improve the flow of goods between Canada and the rest of the world, essential for our manufacturers and our exporters.

A part of this announcement included $400 million for the construction of the Windsor-Detroit crossing and access road, which was another recommendation by the industry committee.

As more and more of our manufacturers are integrated across local, national and global supply chains, they depend on reliable, secure and strong infrastructure.

Unlike the members of the Bloc Québécois, who will always be relegated to the position of benchwarmer who play politics with one of the most crucial components of Canada's economy and will never deliver results for Quebec's manufacturers, the Conservative government has delivered and will continue to deliver real results for manufacturers and workers. We will continue to work with industry, ensuring that we are setting the right climate for Canadian manufacturers to thrive in the global economy, thereby securing good high paying jobs for Canadians and Quebeckers.

The government has provided the support that Canadians expect, and we are delivering for our communities and our commitments. We are addressing the major challenges that manufacturers and their workers are facing head-on and we will continue to demonstrate real leadership for all Canadians.

[Roger Valley, Liberal, Kenora, ON]

Mr. Speaker, I thank my colleague for those comments, although it is quite galling he takes credit for a lot of past excesses from former governments. He talks about paying down the debt. I remind him that the debt was created by a former prime minister named Mulroney, who almost bankrupt Canada at the time. We have tried to pay that down. Thanks to legislation, the Conservatives have money left over from good governments previous to them to pay it down.

With all the rhetoric and all the talk about how good the Conservatives are doing, what is the hon. member going to do for families in northern Ontario, families that no longer have jobs because of the crisis in the forestry sector? Could he tell me what they are going to do for Christmas when they do not work. They provide tax cuts. They do not have jobs to pay taxes. Could you tell me what you will do today for those families in northern Ontario and across Canada that no longer have jobs in forestry related businesses because of issues you have done?

[The Acting Speaker, Conservative, Royal Galipeau]

The hon. member for Kenora should know that when addressing the House through the Speaker it should be in the third person not in the second person.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, the government's first thoughts are with families that lose their jobs. That is why it is so important we make a climate for businesses and for our manufacturers. That is why we are so pleased to say we are at the lowest unemployment rate in over 33 years.

I think it is quite rich that the member brings about his bragging rights about the previous government . The truth is if the Liberals did anything right, we would not be in the position we are in today.

He talked about the previous debt. It was started by a Liberal government many years before. His government had the opportunity to do things for over 13 years, but what did it do? It did absolutely nothing. It was up to this government, which took immediate action on the softwood lumber disagreement. Within a short period of months, 13 months, we delivered and we returned over $5 billion worth of taxation taken from Canadian companies. We allowed guaranteed access to the American market, which is our largest market.

What did the Liberals do for 13 years? They did absolutely nothing. That is the difference between the previous government and this government. We are a government of action and we will work maintain our leading edge in the world.

[France Bonsant, Bloc, Compton—Stanstead, QC]

Mr. Speaker, on one hand, hearing people criticizing the Bloc Québécois always makes me laugh, but democracy has spoken also in Quebec.

On the other hand, in the riding of Oshawa, GM manufactures pick-up trucks called Sierra and Silverado. Given that income tax and GST cuts, I want to know what answer this wonderful government will give to the 1,000 workers who will lose their jobs by Christmas in the member's riding. What excuse will they be able to give them?

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, again, I do not take advice from that Bloc member for anything with regard to my constituents.

I feel bad and the government feels bad when there is a reorganization of manufacturing. In Oshawa, while there is a 1,200 worker layoff at the truck plant, I remind her that there is actually a 14.1% increase in truck sales in Canada.

The difficulty we have is the Canadian government can do what it needs to for the Canadian economy. We cannot worry about other economies. Much of the problems in manufacturing right now are due to the problems in the American economy. The U.S. economy is struggling right now while ours remains strong.

As I said, we have record unemployment rates. We are paying down debt. We have just lowered taxation to the lowest that will be in the G-7. The purpose of that is, and what the Bloc does not understand because the Bloc only wants to raise taxes, Canada is a global player and we are trying to compete with global companies to attract business to our country. By continuing to raise taxes, as members of the Bloc Québécois would like to do to pay for some of their radical programs, it will push manufacturers away. The reason we have the lowest unemployment rate now is because the government is doing the right things for Quebeckers and the right things for all Canadians.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the member for Oshawa did not talk about the feebate program. Right now, as his constituents are being laid off, their tax dollars are being paid into a feebate program that is sending money to South Korea, Japan and other parts of the world. His constituents are subsidizing auto jobs, which are taking jobs away from Canadians, and he has done nothing to stop it.

The member has also not addressed the fact that we still do not have a TPC program for the automotive industry. Quebec and Ontario have one for the aerospace industry, but nothing for the automotive industry.

My last point is really interesting when we hear the rhetoric that has come out of the member's speech. He mentioned that 21 out of 22 recommendations from the industry committee have been taken care of. I sat on that committee. He said the number one recommendation had been fulfilled, but it was not. It is fraud to suggest that it has happened. The recommendation was quite specific. It was for a five year capital cost reduction allowance plus a review for another five years. That is very important when it comes to the third, fourth and fifth year of investment.

How can that member get up in this chamber in front of his constituents and say that was delivered when it was not?

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, it is obvious the member for Windsor West is very angry, and I can understand why he is angry.

He was on the industry committee. That committee provided a report containing 22 unanimous recommendations. Guess what. The member's leader made him vote against them in the last budget. I would be upset too if I had no credibility with my constituents.

Let me talk about the capital cost allowance. We addressed that. As the Minister of Finance has stated quite clearly, there is room in the future to address these things even further.

The member is not addressing the fact that we have just spent $33 billion on our infrastructure program, which includes $400 million for the Windsor-Detroit border right in his own constituency. What did that NDP member do? He voted against that. He voted against $500 million for labour retraining that would help the people laid off in his constituency. He voted against the creation of an older workers' program. He voted against our science and technology strategy. I have been to Windsor to see the record investments that we have made in research and development. The member voted against that too.

There is no credibility coming from the NDP members. They are like the Bloc. They can strategize about anything, but we are the government that is actually taking action on these things.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I continue to read the motion in front of us today. Part of it reads:

--specifically including a program to support businesses that wish to update their production facilities, a series of investments and tax measures to support research and development...a review of the trade laws to better protect our companies against unfair competition--

My question to the parliamentary secretary is this. Is this not exactly what we are doing? Why is the Bloc Québécois trying to bring this forward? Those members should be celebrating and thanking the government for moving on these items instead of saying that we are not doing anything when we are actually doing something. Could the parliamentary secretary comment on that item?

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I thank the member for Burlington for all his good work with the manufacturing sector.

What he said in his comment is exactly true. We are already addressing the things in the Bloc's motion. This is the tragedy for Quebec right now. The Bloc Québécois does not do its homework. Those members have no ability to deliver anything for Quebec. Even when they have the opportunity to criticize, they are criticizing things that we have already done. This just further shows the irrelevance of the people of Quebec to the Bloc Québécois.