House of Commons Hansard #101 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was housing.
The Assistant Deputy Speaker NDP Carol Hughes
I would like to inform the member that he will have seven minutes remaining when this matter returns before the House.
A motion to adjourn the House under Standing Order 38 deemed to have been moved.
Tracey Ramsey NDP Essex, ON
Madam Speaker, back in June, I asked the Minister of Agriculture and Agri-Food why the Liberal government has backed away from its commitments to Canadian farmers. There are three specific commitments that I would like to focus my comments on during tonight's debate.
The first one is compensation to farmers and fishers under CETA and the TPP. Today, we heard a hint from the government that there would be some type of compensation package, but, largely, farmers and the fishing community have been left to wonder whether the previous Conservative commitment would be honoured. In fact, when the budget was presented this year, they were quite concerned when it was not part of the actual budget.
We would like to know whether these commitments will be made. The TPP and CETA chip away at supply management, and farmers deserve an answer as to whether this compensation will be available to them.
The second issue I would like to address is the inaction on diafiltered milk. The fix to this problem is simple and quick. The trade committee and the agriculture committee have heard this. The trade committee held an emergency meeting this summer, on August 3. I joined my colleagues and opposition members in pushing for this meeting, because it is critically important that the dairy sector receives some understanding on where the government is at on diafiltered milk. It needs action.
When the Minister of Agriculture appeared before the trade committee on September 20, he refused to give specifics on how this issue would be fixed. The minister actually asked for more time of the dairy farmers and the supply management. This is so incredibly concerning because Canadian dairy has lost $220 million because of diafiltered milk alone.
We want an answer on the inaction of diafiltered milk for farmers in our country.
The third thing I would like to focus on is why the inaction on PACA? This is the Perishable Agricultural Commodities Act.
Earlier this year, I tabled a motion in the House calling upon the government to implement a payment protection program similar to PACA in the U.S., so that Canadian fruit and vegetable growers could export their products south while knowing they have legal recourse if they do not receive payment.
This was a Liberal campaign promise, so it is really quite shocking to see a lack of action on this particular file. It would help the produce and vegetable growers, certainly, in my region in southwestern Ontario. My riding of Essex has many of these producers and being able to have PACA as a way to ensure that they would receive payment for goods that are crossing the border is incredibly important. However, after a year in government, we hear complete silence on PACA.
Farmers really deserve an answer on these very important issues. They have been largely left behind by the government, and the government has been silent on these very important issues.
The questions that I have focus on the compensation. Where is it? When will it be coming, so that farmers can be certain that they will have some type of protection? Why inaction on diafiltered milk, when there already is clearly a path and an understanding of the way to fix this problem that is costing dairy farmers? Why the inaction on PACA, something that was a campaign promise?
Canadian farmers are tired of the silence from the government. We have seen them here protesting on the Hill in anger over the silence that they have heard from the Liberal government. It made many campaign promises to them but has yet to follow through with them.
Why are Liberals backing away from their commitments to Canadian farmers?
Jean-Claude Poissant LiberalParliamentary Secretary to the Minister of Agriculture and Agri-Food
Madam Speaker, I thank the member from Essex for raising this important issue.
As a dairy farmer, I am proud that Canada can count on such a strong and vibrant sector. I will repeat, as we have said all along, that supply management is an important pillar of our agriculture and of the Canadian economy.
We are working hard to find a lasting solution that is acceptable to the entire Canadian dairy industry. We are pleased that Canada and the European Union have signed this historic agreement. It is a progressive agreement that will expand our exports, which may reach up to $1.5 billion a year.
I would like to point out the exceptional work done by the Prime Minister, the Minister of International Trade, and their respective teams to secure the agreement.
It is our belief that the government must help dairy producers and processors to make the transition once CETA is implemented. We consulted dairy producers, their national and local associations, and processors; their input informed the development of programs designed to respond to the challenges faced by the sector and to foster growth. We have shown on many occasions that we are listening to the dairy sector and doing everything we can to find a viable long-term solution.
Of course CETA has not yet taken effect, and we will ensure that the transition assistance programs are announced before it does. We are committed to helping the dairy industry adjust to the new market conditions, and that is exactly what we are going to do.
With regard to the trans-Pacific partnership, we are continuing to consult Canadians in an open and transparent manner. The Conservatives chose to negotiate in secret and the New Democrats chose to oppose the agreement without even looking at it. We promised to consult Canadians and that is exactly what we are doing. We listened to over 450 economic stakeholders and the Standing Committee on International Trade has not yet finished its study of the TPP. It is also important to remember that none of the 11 countries that signed the TPP have ratified it yet.
I am proud of the work that has been accomplished to date, and we intend to keep building on that. The government will continue to promote the commercial interests of Canada's agricultural industry. That includes supply-managed sectors as well as those that will benefit from new trade access, such as the beef, hog, grain, fruit and vegetable, and processed foods industries.
Our message is very clear. We are the ones who implemented the supply management system and we fully support it. We understand that transition programs are important for the dairy industry. Such assistance is being developed and will be available when the agreement takes effect.
I can assure the House that we are working with all industry stakeholders and listening to their points of view.
Tracey Ramsey NDP Essex, ON
Madam Speaker, I thank the parliamentary secretary for his compliment to the trade committee, of which I am vice-chair.
I know well the amount of consultation that has taken place on the trans-Pacific partnership. Unfortunately, what is missing for Canadians, and certainly for Canadian farmers, is consultation on CETA. The Liberal government adopted a Conservative-negotiated deal, slapped a gold star on it, and said that it is the best deal it has ever seen, yet it is not bringing this deal to the Canadian people. Where is the same consultation with Canadians on CETA?
I am happy to hear that the parliamentary secretary is a dairy producer himself. I could not agree more that supply management is incredibly important. As a matter of fact, when the trade committee was visiting the eastern provinces, we heard that they will lose half their dairy farms under CETA and the TPP.
The government needs to stand up on behalf of farmers, and that starts with action. The words are done. They have been nice, but what farmers are looking for is action.
Jean-Claude Poissant Liberal La Prairie, QC
Madam Speaker, the federal government's investments in innovation, agricultural programs, green jobs, and broadband Internet service will benefit the agriculture and agri-food industry as a whole.
We recognize the importance of helping supply-managed sectors with the transition under the Canada-European Union comprehensive economic and trade agreement.
We will keep the lines of communication open with farmers across the country. In preparation for the development of the new strategic agricultural framework, which will launch in 2018, we are also meeting with industry stakeholders to hear their thoughts on the current framework.
Canada's agricultural industry and all supply-managed sectors have some exciting new opportunities that spell big gains for them. We are all working together to cultivate a prosperous future for all of Canada's farmers.
Erin Weir NDP Regina—Lewvan, SK
Madam Speaker, I had asked in the House why only 19% of the steel used in the new Champlain Bridge will be made in Canada. This is one of the largest federal infrastructure projects. I also asked whether Canadian or offshore steel would be used in several other infrastructure projects: the Alexandra Bridge, the Alaska Highway, and the Esquimalt Graving Dock. We have not heard an answer to those questions, but I am hoping the parliamentary secretary will be able to speak to the use of Canadian steel in those projects this evening.
It is very strange that the Government of Canada is importing steel while Canadian steel mills are laying off workers. I would consider why the Government of Canada might be doing that. One possibility is that it is cheaper to buy the steel from abroad. However, the rationale for these infrastructure projects is not simply to build the infrastructure at the lowest cost but to boost economic growth and to create jobs in Canada. The government itself has made that argument. If that is the goal, then clearly the government should be trying to procure the inputs from the Canadian economy. Doing so would generate more tax revenue in our country, which could certainly offset any higher cost of the steel.
The second reason we might be procuring steel from offshore for public infrastructure could be as a result of some sort of reciprocity; we want our steel mills to be able to sell Canadian steel for public infrastructure in other countries. While our biggest trading relationship is with the United States, we have relatively balanced trade in steel with the U.S. If the U.S. were to grant a Canadian exemption from buy-American policies, then it would make sense for us to also consider American steel in Canadian public infrastructure projects. However, there is no reciprocity in Canada's steel trade with the rest of the world. We export only about $1 billion a year of steel offshore, yet we import more than $4 billion of steel per year from offshore. There simply is no reciprocity to be achieved there.
I have mostly talked about steel procurement in economic terms, but we also need to consider some important environmental arguments. Steel is very heavy. It takes a lot of energy to transport it. The carbon emissions are much less if we are able to use Canadian-made steel rather than having it shipped from overseas. Similarly, it emits a lot less carbon to produce the steel in Canada, because our country has a much cleaner energy mix and also has much stronger environmental regulations. Producing a tonne of steel in China emits about 14 times more carbon than producing a tonne of steel in Canada.
If we are concerned about economic development in our country, if we are concerned about our environment, we should be using Canadian-made steel in federal infrastructure projects.
Leona Alleslev LiberalParliamentary Secretary to the Minister of Public Services and Procurement
Madam Speaker, I appreciate the interest of the member opposite in this issue. The Government of Canada wants all sectors of our economy to prosper, and at the same time it must carry out its procurement activities in a manner that enhances access, competition, and fairness. To provide more opportunities for Canadian suppliers, Canada has negotiated access to foreign government procurement markets through international trade agreements such as the North American Free Trade Agreement.
Trade agreements place the legal obligations for competition into a global environment, while greatly expanding the marketplace for Canadian goods and services and resulting in more opportunities for Canadian steel.
An open trade and investment environment allows firms to thrive and helps create better jobs for the middle class. This is particularly important for the Canadian steel industry, which is highly dependent on export markets and is part of an integrated North American market. Some 48% of Canadian steel shipments are exported, of which 81% go to the United States.
There are a number of ways the Government of Canada can favour Canadian industry. The Canadian content policy, for example, encourages industrial development in Canada by limiting procurement opportunities to suppliers of Canadian goods and services when there is sufficient competition. Sufficient competition is defined as at least two potential suppliers of Canadian goods or services. The Canadian content policy is applied to most publicly advertised, competitive procurements by the departments of Public Services and Procurement and National Defence valued at $25,000 or more.
To be considered Canadian, a good has to be wholly originated in Canada or, if it contains imported components, must have undergone a certain degree of transformation in Canada. A service is considered Canadian if it is provided by a company based in Canada.
Another procurement mechanism used to promote Canadian industry is the industrial technological benefits policy, managed by the department of Innovation, Science and Economic Development. This policy requires companies that are awarded defence and security contracts by the Government of Canada to undertake business activities in Canada valued at 100% of the contract award. Over the last three decades, the policy has been applied to 125 procurements and has led to $38 billion in obligations. These are just some of the ways that the Government of Canada seeks to maximize benefits for Canada in its procurements, and we are always looking for more.
My final point is that our government has an overarching strategy to spur economic growth across the country, and we believe strongly that the best way to foster future prosperity is by investing in the economy today.
The Alexandra Bridge project is covered by the Agreement on Internal Trade. The competitively tendered construction contract was awarded on August 1, 2016, to Stellaire Construction Inc. While the tender did not require that bidders provide Canadian steel, the specifications required that the steel quality meet the standards of the Canadian Standard Association, among others.
Public Services and Procurement Canada provides Infrastructure Canada, which leads the—
Erin Weir NDP Regina—Lewvan, SK
Madam Speaker, it is interesting that the parliamentary secretary made an argument that I very much anticipated, which is that we supposedly need to buy foreign steel for our public infrastructure in order to keep foreign markets open to Canadian steel. In fact, the parliamentary secretary went so far as to suggest that the North American Free Trade Agreement requires this. But as I pointed out, the United States has Buy American policies for public infrastructure. I would be all for negotiating a Canadian exception to that and giving reciprocal treatment to the United States. Perhaps in her final minute, the parliamentary secretary can let us know whether her government is actually doing that.
However, the bigger point is that with offshore markets there really is not any of this reciprocity. China is dumping steel into Canada; it is not buying any of our steel in exchange. So a far better policy would be to use public procurement here.
Leona Alleslev Liberal Aurora—Oak Ridges—Richmond Hill, ON
Madam Speaker, federal procurement activities operate within a complex framework of rules, policies, mechanisms, and international trade agreements that ensure fairness, and taken together are beneficial to Canadian suppliers of goods and services, as well as the Canadian economy.
Additionally, our government’s plan for investment in the Canadian economy includes revitalizing public infrastructure. Canadians will see benefits in terms of job creation across the country, particularly in the construction, engineering, and manufacturing sectors, and in the ensuing economic spinoff activity.
The Assistant Deputy Speaker NDP Carol Hughes
The hon. member for Beauport—Limoilou not being present to raise the matter for which adjournment notice has been given, the notice is deemed withdrawn.
The motion to adjourn the House is now deemed to have been adopted. Accordingly, the House stands adjourned until tomorrow at 10 a.m., pursuant to Standing Order 24(1).
I wish everyone a happy Hallowe'en.
(The House adjourned at 6:51 p.m.)