Mr. Speaker, it is with great pleasure that I rise today to speak on the government's measures relating to the automotive and manufacturing sectors.
Our government knows the importance of the automotive industry to Canada's economy. We know that Canadians build the best cars and trucks in the world and we intend to keep it that way.
It was just a few short years ago that the global economic downturn threatened that and challenged the North American auto industry, including Canada's, like never before, but our government took action by restructuring support for the industry. Our government's investments prevented long-term economic decline for many communities and workers across the country. Because of our support, the automotive industry in Canada prevailed. Companies have returned to profitability and continue to build great cars and trucks in Canada.
The automotive industry is a pillar of the manufacturing sector in the Canadian economy, representing 10% of the manufacturing GDP and 13% of total merchandise exports. The auto sector directly employs more than 117,000 Canadians and indirectly employs about 377,000 Canadians in its supply chain, which comprises more than 730 businesses.
Our government's long-term goal provides the right conditions for a sustainable and viable sector in which Canada maintains and grows its share of auto production and jobs.
On January 4, 2013, the Prime Minister's announcement of the renewal of the automotive innovation fund for $250 million over five years was a clear signal of our government's ongoing commitment to create jobs, growth, and long-term prosperity for all Canadians. In last year's budget, the government doubled down, investing an additional $500 million into the automotive innovation fund. In all, the renewed automotive innovation fund will provide up to $750 million over five years for Canadian auto sector businesses in order to support large-scale strategic projects. This support is in addition to the initial commitment of $250 million over five years in budget 2008.
Thanks to the automotive innovation fund, innovative research and development projects are carried out here in Canada. It supports private sector investment in the auto industry and increases Canada's competitive advantage in international markets. Our government's investment in the automotive innovation fund supports the creation of high-quality, well-paying jobs.
The automotive innovation fund, however, constitutes only a part of what our government has done to support a solid automotive sector in Canada. Our government's approach also includes a fiscal and economic framework that will keep the industry competitive. This framework includes a sound banking system, the lowest overall tax rate on new business investment in the G7, the lowest debt-to-GDP ratio in the G7, and a AAA credit score.
Our government has also supported the automotive industry through the creation of the accelerated capital cost allowance. Through this initiative, our government has provided $1.4 billion in tax relief, helping manufacturers to undertake additional investment and increase productivity. I find it ironic that we are debating a motion today whereby the NDP proposes to extend the accelerated capital cost allowance when just two years ago it voted against extending that very program.
What has our government done? We have eliminated tariffs on machinery and equipment, making Canada the first tariff-free zone for manufacturing equipment imports in the G20. We have also placed a strong emphasis on encouraging innovation and productivity through research and development with programs such as automotive partnership Canada, with a $145 million investment, and auto21, with an investment of $81.1 million.
Our support for the auto industry does not end there. Given the integrated nature of the industry, we have also supported the need to ensure the smooth flow of goods across the border. This includes an investment of $470 million over two years for the new Windsor-Detroit crossing, ensuring the continued integration of the Canadian sector with the North American supply chain.
We are also working hard to ensure the Canadian automotive sector has access to world markets. Through trade agreements such as the Canada-Europe free trade agreement, there will be 500 million new consumers for Canadian-made cars and trucks.
Our government's suite of policies—low taxes, global trade opportunities, investment policies, and a skilled labour force—is working. To date, we have attracted investments of $2.8 billion in the automotive sector. Just last month our government announced a major investment by Linamar in Guelph, Ontario. Because of our actions, Linamar is investing $507 million in expanding its operation in Canada. Linamar could have based this project in other countries, but did not. It chose to take advantage of Canada's manufacturing landscape, our strong supply chain, low taxes, open markets, and talented workforce. This investment will create 1,200 new, well-paying, full-time jobs and will maintain an additional 1,800 jobs.
Last year, the minister announced an investment of $72 million for the Ford Oakville assembly plant, which will transform the plant into a state-of-the-art global manufacturing facility, making it one of the most sophisticated Ford plants in the world. Today, this plant has the flexibility it needs to produce large quantities of 11 of Ford's mid-size vehicle models, such as the redesigned Ford Edge and the Lincoln MKX, on the same platform. This plant will be one of five Ford plants in the world with such an ability. Furthermore, this support has leveraged a $716 million investment by Ford into Canada.
Our government's support for the automotive industry made for an excellent year in 2014. Last summer, Canada posted the largest trade surplus of auto exports in almost six years. As if that alone was not enough, in September Canada saw an increase of 6% in the export of motorized vehicles and auto parts, as well as an increase of 10.2% in the export of passenger vehicles.
The numbers speak for themselves. In 2014, Canadian automakers produced more than 20 types of different vehicles and registered unprecedented sales.
Canada is the destination of choice for automakers. The country has much to offer for both automakers and parts manufacturers, and it is our government that has put in place the right conditions to allow the world-class Canadian auto sector to continue its success. Our government is serious about supporting this industry and the well-paying, highly skilled jobs it represents. We are confident that Canada's suite of policies of low taxes, global trade opportunities, investment policies, and a skilled workforce will keep Canada's auto sector among global leaders.
Before I close my remarks, I want to point out that we are debating an NDP motion that calls upon the government to build a balanced economy, support the middle class, and encourage the manufacturing sector. While the NDP is beginning to see the light after all these years, it is clear that our government has taken action to create jobs and growth that support Canadian families and businesses. Instead of the NDP's piecemeal approach, our government, and only our government, has a plan that will create jobs and growth and lead to long-term prosperity for all Canadians.