Mr. Speaker, we are here today to talk about Canada's auto industry. For my community, this discussion is about far more than numbers on a spreadsheet, statistics in a report or words delivered here in Parliament. It is about livelihoods, families and the future of a sector that has shaped who we are. In Cambridge and North Dumfries, the auto industry is a huge part of who we are. The paycheques earned in our auto sector help families put food on the table and keep a roof over their heads. The companies themselves give back in ways that matter by sponsoring our kids' sports teams and supporting the charities and food banks that so many people in our community now rely on.
For more than 40 years, Toyota has proudly built vehicles in my hometown, creating thousands of good-paying manufacturing jobs and supporting tens of thousands more in parts supply, logistics, tooling and construction, as well as countless small businesses across our region. Thanks to those jobs, our community has grown and thrived, and our country has earned a reputation as a world-class auto producer and a place for innovators.
Canada is full of so many innovators the government could be supporting. Our very own University of Waterloo is leading groundbreaking research with a new battery that can charge faster and last longer. New innovation, new technology and new opportunities are all things to be proud of right here in Canada. It is critical that we support our local innovators and job creators.
Just a few weeks ago, I had the privilege of joining the workers at Toyota as they unveiled the sixth-generation RAV4 hybrid, which will be built in both Woodstock and Cambridge. I saw first-hand the pride in the eyes of the people who built these vehicles, the pride that comes with knowing that cars they had a hand in making are being driven on roads across North America. This is another remarkable Canadian success story, and is not unique to Cambridge. We will find the same pride in Ingersoll, Windsor, Oshawa, Oakville and auto communities across Ontario and across the country.
Recently, however, that pride has been overshadowed by fear and anxiety, because the truth is undeniable: Canada's auto sector is under serious threat. Since the Prime Minister took office, Canada has lost more than 5,000 jobs in the auto sector alone. Vehicle production has fallen off a cliff, from 2.3 million vehicles in 2016 to just 1.2 million last year, a nearly 50% collapse. Yes, these are the facts. There was a nearly 50% collapse under the current government. Our government has failed to get a deal in time with the United States, and workers are paying the price for trade instability and tariffs that have continued on long after the Prime Minister promised they would be gone.
What the government is doing in response to this crisis, and it is a crisis, is not supporting jobs here at home. Instead, it is subsidizing vehicles produced outside of Canada. Its new electric vehicle rebate, offering up to $5,000 per purchase of an EV, might sound great in a press release, but when we look closely and allow the smoke and mirrors to disappear, a very different scenario begins to emerge, one of reality and not rhetoric.
Approximately 95% of the vehicles eligible for this rebate are not made in Canada; they are imported. The government will not be supporting the manufacturing of Hondas made in Alliston, Chevy trucks made in Oshawa or the RAV4s made in Cambridge. Instead, it is giving away taxpayer dollars to entice people to buy Volkswagens made in Tennessee, Fords built in Kentucky and, yes, even Teslas.
We are now at a time when our auto industry is fighting for its life. Tens of thousands of jobs are hanging in the balance. Families will wonder how they will buy the higher-priced groceries, keep a roof over their head or provide the same opportunities to their children that they grew up with. Right here in Canada, our own government is using Canadian tax dollars to encourage people to buy cars made in the very country we are locked in a trade war with. A real auto strategy begins with a simple principle: Public money should support Canadian jobs first.
Let us be clear about all of this. It is not about opposing electric vehicles; it is about strengthening Canadian manufacturing capacity, instead of undermining it.
There is another serious issue with this EV rebate scheme that we need to talk about. It comes down to who benefits from this policy. Today, a new EV can cost nearly $50,000. Most people in my community, after 10 years of skyrocketing housing costs, which doubled in price, youth and unemployment at double the national average and grocery bills surging, can barely afford a tank of gas, let alone a brand new vehicle. However, this policy asks everyone to give just a little bit more.
A single mom who works in a minimum wage service job and a senior who has to return to the workforce part time just to keep up are now obligated to subsidize the purchase of a $50,000 electric vehicle, one they themselves may never be able to afford. It is asking laid-off parts workers and auto workers who have had their shifts cut to subsidize a policy that actively undermines their own economic security. That is not fairness; that is cruelty disguised as environmental policy.
When I went door to door during the last election, I made a promise to the people in my community. I promised to stand up for local jobs and the dream of Canada. That is why I am standing here in the House today, to defend our workers, our families and our community, all of whom rely on the auto industry. I am proud to serve on a Conservative team that is putting forward practical, straightforward solutions.
First, we believe that no Canadian taxpayer dollars should ever subsidize the purchase of a vehicle that is not made in Canada, built with Canadian labour, Canadian parts and Canadian ingenuity.
Second, we propose removing federal tax from all vehicles built here in Canada. Imagine the impact of this policy. This could save families more than $2,000 on a Canadian-made vehicle. At the same time, it would boost demand for trucks and cars to be assembled in Woodstock, Cambridge and other communities across Canada. More demand means more production. More production means more jobs. More jobs is what makes a stronger community for everyone.
Third, we are calling on the government to treat laid-off workers fairly. They should not have to pay the price for the government's failures by providing tax relief on severance payments. This is something the government has the authority to do, and it should use that authority without hesitation. The government has left the workers at CAMI in Ingersoll out in the cold. The very least the government could do is ensure that those families, who are now wondering where their next meal is coming from, are treated with fairness and dignity during one of the most difficult times of their lives.
None of this should be controversial. Supporting Canadian workers should not be controversial. Keeping Canadian tax dollars here at home to support Canadian jobs should never be controversial. Standing up for communities built on manufacturing should not be controversial. The government has the opportunity to stand with us today to support the auto workers in my community and across the country, and to finally get to work doing what it promised to do so long ago.
We have everything we need to succeed right here in Canada. We have the resources. We have the supply chains. We have the manufacturing capability. Most importantly, we have the skilled, capable labour to make it all possible. What we need is a government that will finally step up here at home instead of selling out to Donald Trump and Elon Musk. We need a government that finally puts Canadian workers first, a government that strengthens, rather than sidelines, the manufacturing jobs we rely on.
We carry our future, Canada's future, in our hands by the decisions that are made in the House. However, it is up to the government as to how it will choose to vote on policies that can make this all happen, even if those policies are Conservative policies, policies to support cars built at Ingersoll, built in Woodstock or built in Cambridge, the place I am proud to call home. It starts with supporting this motion. It starts with taking a stand for fairness and for dignity. It starts with fighting for every single one of our Canadian manufacturing jobs.
Let us unite and fight to support Canada.