Debates of May 19th, 2022

Public Works and Government Services—Main Estimates, 2022-23

[Parm Bains, Liberal, Steveston—Richmond East, BC]

Mr. Chair, we heard a little about the shipyards. My questions are coming from Richmond, British Columbia, so the marine sector is extremely important to us over here on the west coast. I am curious to know about some of the work that is being done at the Vancouver Shipyard, Seaspan and the economic impacts around that.

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Chair, again, as I mentioned, we have invested $21 billion in the economy through the national shipbuilding strategy. Of that, the amount that has gone to Seaspan, with the spinoff effects in the member's riding, is $5.26 billion. That is not to talk about the indirect benefits that go to companies that are doing business with that shipyard.

I appreciate the hon. member's interest in this issue, and I look forward to continuing to work with him and all of our colleagues in investing in the Canadian economy.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, I would like to know the official cost of the Arctic and offshore patrol ships and whether it is possible to break down those costs.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, the first two AOPS were delivered in July 2020 and July 2021, and the next three are under construction. The project budget is $4.3 billion.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, will the budget be respected?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, we always try to respect the budgets.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, can the minister officially confirm that the budget will be respected?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, as I said earlier, there are cost pressures because of COVID, but we always attempt to have those budgets respected.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, I would like to know why the icebreaker contract was split between two shipyards. That reduces the expertise, so I would like to know why the contract was split.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, in these contracts, we are always looking for the best value that can be provided, and this is based on the production timing as well.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, I would like to know why, in the bidding process for the F-35 aircraft, the government has abandoned its industrial and technological benefits policy.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, I am sorry. I had a problem with interpretation, just the last sentence.

[The Chair, Conservative, Chris d'Entremont]

I invite the hon. member to put her question again.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, I would like to know why, in the bidding process for the F-35 aircraft, the government has abandoned its industrial and technological benefits policy.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, if I understand the question, for the F-35s, we weighted the highest economic benefits to that project, and that was part of the selection of the final bidder.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, even with the F-35 program, there are no guaranteed benefits for Canada's aerospace industry.

The International Association of Machinists and Aerospace Workers has confirmed that we could lose the contracts our companies currently have. Canada could spend tens of billions of dollars that will go directly into Americans' pockets. Is that not a shame?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, as I have said, the weighting in this procurement project has given the most significant weighting to economic benefits in our history, and it was a 20% weighting. That was considered in the successful selection of the final bidder.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, of that 20%, how much of the benefits will go to Quebec, which is the backbone of the aerospace industry?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, I appreciate the member's advocacy but that has not been determined yet.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, this is not about advocacy. It is about saving very important, highly specialized, good-paying jobs not only for individuals, but also for the GDP as a whole, in both Quebec and Canada.

It is important to protect these specialized jobs during crises and shortages. Quebec's aerospace industry is equivalent to Ontario's auto industry. Our GDP needs to be protected just as much.

That said, according to the Defence Development Sharing Agreement between Canada and the United States of America, Canada is the United States' only industrial defence partner. It is therefore possible to require that F-35 maintenance be done here, in Canada. Will the minister demand that this maintenance be done here?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, the negotiation process is ongoing with respect to the F-35s. We expect that a contract will be signed by the end of the year in this finalization stage. We are hopeful for that. Terms will be worked out in that contract.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, will the terms of the contract ensure that the Defence Development Sharing Agreement is respected?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, the terms of the contract will be respected. This is a very significant investment we are making, at $19 billion. We want to make sure that we get it right. It is important to have the details right in this contract. We are going to make every effort to ensure those details are there and respected.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Chair, I hope that the terms of the contract will be respected, but will this contract respect the Defence Development Sharing Agreement?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Chair, I believe the member is referring to the economic benefits, and as I have said, this is something we have prioritized with respect to this procurement. It is a $19-billion procurement. It is an important procurement, and we of course want to ensure that we are going to receive the economic benefits.