Mr. Speaker, there has been much said recently about what the various levels of government should be doing to attract new investments to the Canadian automobile sector.
Last year we created the Canadian Automotive Partnership Council in order to find ways of strengthening the Canadian auto sector. It met for the first time on September 4, 2002 and again in December 2003. The next meeting is scheduled for May 30, 2003.
Through this collaborative effort, we are seeking ways to bring auto sector initiatives in line with the government's priorities on innovation, skill enhancement and infrastructure.
The Government of Canada remains determined to create a climate that is more conducive to investment in all Canadian sectors. We will continue , in conjunction with the Canadian Automotive Partnership Council, to address the issues affecting the auto sector with a view to maintaining its viability and prosperity. We will continue to work to create a national auto policy.
First, I must stress the point that I too wish to see Canada attract as much new investment in the auto sector as possible. That is the main reason that the Canadian Automotive Partnership Council was created, in order to enable the industry and the government to work together on joint strategies to ensure the growth and long term prosperity of the Canadian auto sector.
On the council we work in conjunction with auto manufacturers, parts makers, unions and the provinces in order to create a cooperative approach to the difficulties being encountered by the industry.
We have heard it said that Canada ought to offer the same incentives as some of the American states in order to attract new investments in the auto sector. It is too easy to say that Canada has lost auto plants to the competition because there is no direct government assistance.
What we need to do instead is to address the whole range of factors involved in investment decisions, whether these be in the area of economics, public policy or some other area.
All levels of government are important stakeholders in this, and we are working in a number of sectors at the federal level, particularly in connection with programs relating to infrastructure and innovation.
The Canadian auto sector is very strong. It is competitive internationally and productivity is very good. The auto sector has received over $5 billion in investments in the past five years. All automobile manufacturers have reinvestment plans.
Over the past ten years, average annual growth in the Canadian auto sector has been 7%, compared to just 3% for the rest of the economy. Over the same period, the production of light duty vehicles in Canada has increased by 570,000 units. This figure represents two or three typical assembly plants. I think this is impressive, given that Canada only sells 8% of the vehicles in North America, and that our share of North American production remains around 16% for this period.
Figures on vehicles produced over the past ten years lead me to conclude that Canada's policy of focusing on the fundamental economic issues in order to create an environment that fosters new investment and growth has worked well for the auto sector. The government's objective has been to ensure that the overall business climate attracts investment in all sectors. We have reduced the debt, interest rates and inflation rates, balanced the budget, encouraged innovation, funded new infrastructure and introduced initiatives to promote trade.
New measures announced in the 2003 budget will also benefit the auto sector directly: eliminating the federal capital tax, as the Canadian Automotive Partnership Council had called for; $2 billion over five years to implement the Climate Change Plan for Canada; support for the 30 point Canada-U.S. action plan—