Mr. Chair, I want to begin by saying that I will be sharing my time with the member for Abitibi—Témiscamingue.
This debate is about one of the most emblematic industries for Canada and Ottawa. That does not mean that this industry is not fragile, but it is certainly something that Canada's elite are constantly obsessed with, to the point of forgetting all other industries.
They are nowhere to be found when it comes to fighting for softwood lumber. They are nowhere to be found when it comes to fighting for the aerospace sector. There is no strategy or anything whatsoever for that. The auto sector would probably not matter so much to the elite in Ottawa if it were located in Quebec.
Let me give some historical background. The auto pact was signed in 1965. At the time, the industry supported some free trade, on the condition that 10% of production could remain on Canadian soil. Before that, manufacturers were forced to have plants in both countries, meaning in the U.S. and in Canada. Afterwards, since the 10% could have been threatened, members will recall that Ontario was vehemently opposed to free trade, while Quebec supported it when this debate came up during Brian Mulroney's re-election. That election was a referendum on free trade, and Quebec sovereigntists were strongly in favour. Back then, Jacques Parizeau used to say that if he were Ontarian, he would have opposed free trade because it was not in the interests of Ontario, but as a Quebecker, he supported it because it was in the interests of Quebec.
I would like to provide some facts and figures. The government has subsidized the auto industry at every turn in recent years. In 2023, it gave Volkswagen financial support for an EV battery manufacturing plant. The amount is estimated at $13.2 billion in production subsidies. The Parliamentary Budget Officer's estimate was $18 billion, which is higher than what was announced.
Also in 2023, the federal government and the Ontario government announced production subsidies for the Stellantis battery manufacturing plant, up to an overall cap of $15 billion. This would bring the total amount of production subsidies for Stellantis and Volkswagen to $28.2 billion by the end of 2032. The subsidies were so high that the Parliamentary Budget Officer estimated in 2023 that it would take 20 years for the government to break even. This is in addition to the $3 billion pumped into Chrysler's operations and the nearly $11 billion for General Motors during the 2008 and 2009 financial crisis. The loans given out during the crisis were subsequently written off for the most part. I should note, however, that when GM came knocking on the government's door for help with modernizing its plant in Sainte-Thérèse, Quebec, Ottawa did not lift a finger. The plant closed in 2022, and that was the end of the auto assembly sector in Quebec.
For the past 18 years, the auto industry has been underpinned by a strategy developed jointly by Ottawa and the Ontario government, whereas there is still no aerospace strategy, as I mentioned.
In March of this year, the government rushed to announce $2 billion in support for the auto industry before the U.S. tariffs even came into effect, whereas Quebec's forestry industry, which represents a similar number of jobs, was left hanging for a very long time.
Even for the battery industry, Ontario comes out ahead. There were two possible strategies for developing the battery sector: leverage the enormous comparative advantage afforded by the critical minerals under our feet to develop a strategy for processing our resources into batteries; or compete with the Americans on their own turf by subsidizing the modernization of the auto industry. In 2022, the Standing Committee on Industry and Technology recommended that the government adopt a strategy to support resource processing. Ottawa, however, went with the subsidy strategy.
In Ontario, the Ford government went ahead and did what the Trump administration did not even dare to do in its first term, and that was to eliminate the incentives. The Ford government went further than almost any other government in removing EV incentives. However, that did not prevent Ontario from pocketing more than 90% of the money, while Quebec was left with scraps. Quebec projects were largely abandoned by Ottawa, leaving them weakened and undermining the battery industry.
I have a lot more to say, but unfortunately, my time is up.