Mr. Speaker, it is a pleasure to rise and answer the question about the Quebec aerospace industry, and the distribution of industrial benefits.
The Government of Canada's approach to industrial benefits recognizes the strengths and capabilities of Canada's aerospace and defence industry from coast to coast. It is fair, it is open, and it is designed to ensure that prime contractors can build long-lasting, sustainable business relationships with Canada's aerospace and defence sector.
Industry Canada has been dealing with the industrial and regional benefits policy for over 20 years now. The department has always allowed companies to make investments in Canada based on best business practices and what makes the most sense to them. The government will continue with that policy to ensure that it is fair across the entire country.
This is an exceptionally good time for Canada's aerospace industry. Canadian aerospace companies have helped to develop one of the world's strongest aerospace industries, an industry that employs about 75,000 highly skilled workers and that adds to the knowledge economy in every region of Canada.
Canada's new government has done a great deal to secure new opportunities for Canada's aerospace and defence industry both inside and outside Quebec. We are securing significant industrial benefits from the “Canada First” defence procurements and we have signed on to the next phase of the joint strike fighter program, again securing billions of dollars of opportunities for our world class companies.
For all procurements, Industry Canada officials work closely with the regional development agencies: the Atlantic Canada Opportunities Agency, Western Economic Diversification, and the Economic Development Agency of Canada for the Regions of Quebec. Together they identify Canadian companies that might be interested in the opportunities available.
They also work directly with Canadian companies from coast to coast to highlight the opportunities that are available, work with the companies that are bidding on contracts to emphasize the importance of cross-country involvement, and highlight the abilities of Canadian companies.
Our position on defence procurement is clear. All regions of Canada will be able to benefit. Canadian aerospace and defence firms have the competence, the expertise and the ability.
For aerospace related projects, we insist that industrial benefits be of high value and high technology. We are asking that at least 30% of the spinoff projects be targeted to nine key technologies that have been identified in collaboration with the industry.
For the C-17 Globemaster procurement, Boeing must provide 100% industrial and regional benefits as measured in Canadian content value. This applies to the purchase of the aircraft and for the portions of the in-service support that Boeing is responsible for. Fifty per cent of benefits must go to the aerospace and defence sector.
There are other requirements, such as 15% participation by small and medium sized businesses, allowing smaller players in the industry to get the best possible benefit now and well into the future from these procurements. We encourage prime contractors to undertake partnerships that make real business sense.
Quebec aerospace companies have the competence, the expertise, and the ability needed to be involved over the life of the contract. We are confident that they will position themselves well within the context of our military procurements.