Mr. Speaker, I am pleased to rise today to speak to the motion. My comments today will focus on the heart of the issue, ensuring that the government uses our taxpayer dollars to support Canadian industry.
It seems like a very simple concept, and it is one that most countries already wholeheartedly follow. Yet in Canada we are continually missing the mark. The concept is one I like to call “apply Canada policy”. The basic principle is this. When public dollars are being used to purchase any number of assets, the government should implement a policy that ensures that Canadian business and labour are given preference for the contract.
Most other countries have policies that encourage local content when awarding a government contract. These countries employ policies requiring certain levels of local content in projects that use public funding. These policies encourage the use of domestic based suppliers that in turn create jobs, tax revenues and other economic benefits in local communities.
The objective of these policies is to ensure that domestic businesses and communities experience some positive impact from public expenditures on infrastructure projects. Polices of this nature often provide in-country suppliers with a distinct competitive advantage over qualified suppliers from other nations.
Canadian manufacturers do not benefit from similar policies in force by their own government. There are no minimal requirements for Canadian content in publicly funded projects. This means Canadian manufacturers are at a distinct disadvantage pursuing contracts in other nations and they also have no particular advantage at home.
The reality is there is very little preventing foreign suppliers from winning Canadian government contracts and then taking the work offshore to benefit labour, business and regions in other nations. Canadian suppliers and manufacturers deserve to compete on an equal footing in the global marketplace. Our businesses, communities,and citizens deserve to enjoy some economic benefit from the projects funded from their own tax dollars.
Many countries around the world employ government policies encouraging or dictating local content levels. This is particularly true for transportation projects. For example, in the United States, which represents 90% of the North American passenger rail market, the buy America act imposes strict regulations for local content. In the area of rail rolling stock, for example, 60% of the components used to manufacture vehicles must come from the United States. Final assembly must also be performed there. In addition, state governments can impose their own local content requirements as well.
New York, one of the biggest rail markets in the world, imposes strict requirements for state based content. Requirements like these limit the ability of Canadian suppliers to access the largest rail market in North America. They also keep suppliers from using Canadian sub-suppliers on any contracts they win. There are no government policies, however, requiring local content when U.S. enterprises compete for contracts in Canada.
Most other countries have employed similar policies. Most of these policies provide for local content regulations for a mix of incentives and regulatory requirements. The Government of Canada currently has no incentives for local content. That is why I put forward a private member's motion for consideration by the House. The motion reads:
That, in the opinion of the House, the government should implement a policy, which is consistent with North American Free Trade Agreement and World Trade Organization policies and guidelines, to mandate Canadian content levels for public transportation projects, and to ensure that public funds are used to provide the best value to Canadians by supporting domestic supplier and labour markets.
I look forward to discussing this issue further when my private member's business comes forward for consideration.
With regard to the motion before the House today, I am very pleased to participate in this discussion, as it relates to the aircraft industry.
In my riding of Thunder Bay—Rainy River, we are privileged to have Confederation College's Aviation Centre of Excellence. Conveniently located at Thunder Bay International Airport, the 59,000 square foot ACE building brings together the programs of Confederation's School of Aviation all under one roof. The Aviation Centre of Excellence offers programs in aerospace manufacturing engineering, aircraft maintenance and aviation flight maintenance and will soon commence a program in avionics.
This centre of excellence makes Thunder Bay ideally suited as a potential candidate to take advantage of regional benefits and economic spinoffs from contracts for aircraft manufacturing and repair services on defence contracts. The Thunder Bay International Airports Authority has also been actively pursuing a variety of aircraft manufacturing opportunities to help diversify the economy of northwestern Ontario.
January 2007 statistics show that northwestern Ontario has already one of the highest unemployment rates in the province. The recent announcement of 500 further job losses in the forest industry will continue to drive those numbers higher.
Whenever possible, Thunder Bay and area needs have to be included in industrial regional benefits on future large contracts to ensure that our highly skilled workforce can continue to find meaningful employment within the community. My region, and regions similar to it, can ill afford the loss of further residents in search of well-paying jobs in the west.
Regretfully, not only are 40-somethings losing their jobs in the forest sector, but this government, a government that has a $13 billion surplus, is also cutting jobs and funding for jobs across the country. It is closing federal offices. The Status of Women was just closed in Thunder Bay. It has cut funding for economic development programs, such as the social economy program and FedNor, and now ACOA. It has eliminated the visitor GST rebate program, a cut that will not only hurt our struggling tourist industry in northwestern Ontario, but all across the country, which will cost us more jobs. It slashed $55 million from the youth employment strategy, which means for small communities in regions of high unemployment it will be an extremely difficult summer for our young people.
All these cuts are hurting our regions and costing jobs for our citizens when there is no need to make the cuts. The money jar is full and overflowing, yet the Harper government continues in the heartless and shameful penny pinching.