Madam Speaker, I am happy to rise today to second the motion by the hon. member for Thornhill. I will be splitting my time with the member for Bruce—Grey—Owen Sound.
I come from the private sector, and we tend to look at the markets to determine what our customers want. We do not tell them what they need; that is the best way to go out of business. Here, the Liberal government tends to take a different route.
At a press conference in 1986, U.S. President Ronald Reagan said, “the nine most terrifying words in the English language are: I'm from the Government, and I'm here to help.” That is like this legislation. To me, it is pretty terrifying. To wit, I was around this place when the Liberals introduced the national energy program. It was government interference at its very best. We all know what happened to the national energy program when government decided what was best for the consumer and the market, when it dictated how the private sector would produce its goods and ship its product. The evidence suggests it will not work. When we look at this legislation, we see that it is the new carbon tax. It would result in a similar reaction that we have seen across the country over the past several years with the carbon tax.
As industry tries to cope with the mandate that would be imposed on it, I wonder what the government will do when the sector fails to reach the KPIs that are established in the legislation. Again, I am inclined to look at things like this from a business perspective. I know that the private sector and the public sector are two different things, but there needs to be a business case here. We know what the current government looks at when evaluating business cases such as LNG: It says there is no business case while the world is starving for our liquefied natural gas.
Is the market there? It is not, according to the statistics. The government cannot mandate what the private sector does with its production. It cannot mandate investment capital. It cannot, unless it is free, which the government has pretty much done over the last several years with the amount of money that it has put into subsidies for the EV market. However, the market has shifted.
Plants are being halted, and one major plant has gone bankrupt internationally. In my riding, Linamar built a state-of-the-art, 300,000-square-foot gigafactory in Welland. It is a beautiful building. It was going to employ 200 people. The federal government in Ottawa committed $170 million to this plant. Described as a highly integrated casting, machining and coating operation with the first-of-its-kind gigatonnage high-pressure-die-casting capabilities by an auto supplier in North America or Europe, this plant is beautiful, but it never opened. It is now listed for sale on Realtor.ca.
Where do we go from here? Is the infrastructure available in the country? It is not even close.
A member opposite asked a question earlier about whether the Conservatives would support investment in the infrastructure. Does that just mean more tax dollars? I think perhaps that is what she meant: Were the Conservatives supporting the government's paying the bill for infrastructure after paying the bill to build these plants just to see them shut down?
The punitive measures in the legislation are also interesting. To enforce the mandate, the program would put on a harsh penalty structure that implements a $20,000 tax per vehicle on any auto manufacturer that is unable to meet the quota. Put another way, if a company is supposed to sell 1,000 vehicles in 2026 and 200 of those must be EVs, but it ends up selling only 150 EVs, the company is therefore 50 EVs short of its quota and subject to fines.
Kristian Aquilina, president of General Motors Canada, urged the Liberals to scrap the EV mandate and said, “It's unrealistic to believe that the country is going to go from 5 or 6 per cent to 20 per cent by model year '26, which starts now.”
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association said, “The federal EV mandate needs to be repealed before serious damage is done to the auto industry at the worst possible time.”
A study in the Canadian Journal of Economics estimates that the mandate will eliminate 38,000 jobs in the auto sector and cost upward of $138 billion, assuming that the sector never shuts down as a result of this policy.
Let us talk about tariffs. This is the worst possible time to be imposing a new business model on a private sector industry. My colleague for Algonquin—Renfrew—Pembroke was correct when she said that this could devastate the auto sector.
I want to repeat this. This is the new carbon tax. If the government forces this on the economy, be prepared for a lot of pain and no gain. The only thing that this policy does is rehabilitate Elon Musk's reputation. Yes, let us put Elon in charge and see what happens.
Canadians cannot afford another lost Liberal decade driven by bad Liberal policies. This is government interference extraordinaire. I hope the members opposite will support our common-sense motion to repeal this mandate. I will not hold my breath.