Mr. Speaker, in this time of crisis in the manufacturing sector, we are missing once again an opportunity to support our Canadian workers.
I was disappointed, and I am sure members of the House were also, that in relation to our major trading partners, such as China, the United States, the EU and Mexico, Canada stands alone in the absence of a federal policy which ensures Canadian content in transportation projects that are funded through federal taxes.
I was even more surprised to learn that as I speak this is the first time that Canadian content requirements will have ever been debated in the House of Commons.
First, the government should ensure that public funds as a rule are not used to assist the transfer of jobs abroad. That is a first principle. At a time when the manufacturing sector has lost hundreds of thousands of jobs, every job we can keep in Canada counts.
The indirect economic contribution of manufacturing and exporting companies to the Canadian economy is significant. One out of every three jobs in Canada depends on our capacity to export our products abroad. Manufacturing businesses are responsible for two-thirds of goods and services exports and three-quarters of all the private sector research and development done in Canada.
Public investment in transportation equipment and infrastructure in Canada must be used to leverage business opportunities for Canadian industry, create a globally competitive business environment here in Canada, attract foreign investment, and generate the greatest possible economic benefit for Canadians.
Canadian manufacturers are being shut out of our markets by fierce competition and, on top of it, are not able to benefit from transportation projects in the EU, other G-8 nations and China, as these countries have implemented policies that set mandatory domestic content levels to ensure that their tax dollars create domestic growth.
In Canada, when the federal government funds infrastructure or transportation projects with taxpayers' money, the funding is not dependent on conditions that ensure even minimum local economic benefits. Unless the government views infrastructure investments as economic development tools and enacts a clear policy to make sure that Canadian manufacturers benefit economically, our manufacturing sector will not be able to compete.
Unfortunately, a company currently has a better chance of supplying the North American market from the United States rather than from Canada. Because of restrictions based on U.S. content, for example, the buy America act, and the absence of such rules in Canada, Canadian manufacturers in the construction products and public transit equipment manufacturing sector have a vested interest in moving their production activities to the United States.
The federal government announced that it will invest $33 billion in infrastructure over seven years, a significant proportion of which is directed to roads and highways, public transit and bridges. Provinces and municipalities have also announced significant investments in transportation infrastructure and mass transit over the coming decade.
Renewing Canada's infrastructure is a major opportunity to invest in this country's future. It also is a great opportunity to invest in Canadian manufacturing and industry.
Legislation should be in line with what Canada's main economic partners are doing domestically to support their industry, in particular, the United States, Mexico and the European Union. In order, therefore, to enable our transportation industry to be a global leader and a strong competitor in an increasingly tough market, there has to be legislation that mandates Canadian content levels for public transportation projects.
By favouring domestic companies, governments use public funds to stimulate the development of the local manufacturing industry while allowing competition that is based on fair rules for all vendors. What we are asking for here is not protectionism but fair trade.
Let us look at all the restrictions that a Canadian company has to face when trying to sell to a government procurement market in the United States. According to the Canadian Manufacturers and Exporters, if the United States government or one of its agencies awards a contract, Canadian companies can bid as equal partners only if the value of the contract being awarded is greater than approximately $8,000. This exemption was negotiated by the United States through NAFTA, and these contracts are exempt from NAFTA's chapter 10 and do not guarantee equal access to Canadian companies.
Other buy American provisions can also apply if the project concerns a public transit system, an airport, a road, a bridge, a ferry or other types of transportation. These contracts always include national preference rules and regulations and require certificates and the fulfillment of other conditions. Finally, under the buy American regime, if the project is funded by a state or local government, then they can impose their own conditions.
On the other hand, U.S. companies that want to sell to the Government of Canada face no such obstacles. Only provinces may impose local content restrictions if they wish to do so. More often than not, however, provinces do not use government procurement to favour Canadian industry or industry from their province.
Canadians expect more from their government when it comes to protecting their jobs and the economic vitality of our country. The policies in place to protect and foster the Canadian transportation industry up to this point are inadequate and outdated. In our increasingly competitive global marketplace, it is crucial that we as lawmakers support the economic development of local industries.
In drafting legislation on Canadian content levels, we must strive to strike the right balance between promoting our manufacturers and respecting international trade obligations. Therefore, I call on my hon. colleagues to support Motion No. 183 for the benefit of all working Canadians and the future vitality and competitiveness of our manufacturing sector.
I would like to congratulate my colleague, the member from Thunder Bay, on his initiative. I have had deputations from the aerospace industry who equally have pointed out this inequity in terms of providing access to our Canadian markets but being shut out of aerospace opportunities that exist in the United States and in other countries.
This legislation is an attempt to find a balance, not to be protective and not to be hiding behind tariff barriers, but to give equity and the competitive ability to Canadian workers and to Canadian technology, which we know is so well placed in terms of it being state of the art.
Given a level playing field internationally, I know that the Canadian worker, the Canadian investor and the Canadian economy can compete and prosper, but this kind of legislation is absolutely needed as it applies to and bridges investments that Canadian taxpayers are making in the transportation sector. I hope this legislation and the proposals being put forward by my colleague will find the acceptance and the support of the members of this House.