moved:
That this House calls on the government to develop a new national shipbuilding policy to support the revitalization of the Canadian shipbuilding industry by maintaining and advancing the degree of excellence and the technologies for which Canada is historically renowned, given that Canada has the longest coastline of any nation in the world and that historically Canadians are among the finest shipbuilders in the world.
Mr. Speaker, I will be splitting my time with the hon. member for Burin—St. George's.
A new shipbuilding policy is a pan-Canadian issue. Shipyards are located across Canada, in British Columbia, Ontario, Quebec, New Brunswick, Nova Scotia, P.E.I and Newfoundland. Many ridings from coast to coast in Canada, including my riding of Saint John in New Brunswick, are suffering from the lack of leadership from this government on the very important issue of a national shipbuilding policy.
Twice in the past six years the Liberal Party of Canada passed resolutions at its 1993 and 1998 national meetings stating that it considered shipbuilding to be a priority and that it was going to establish a new, modern, national shipbuilding policy. We are still waiting for it.
This government has let the industry slide to the point of near extinction in Canada. Many shipbuilding companies are on the verge of shutting down without a policy from this government to bring our industry to a competing level with our competitors around the world. How can a Canadian shipbuilding company survive when our ships end up being almost twice the cost of those built half a world away?
We are not winning contracts. Just to give hon. members an example, if Saint John Shipbuilding does not land a contract soon, it will be closing its doors. Saint John Shipbuilding is the most modern shipyard in the world, but it will have no choice. It has bid on over 50 contracts around the world and it is unable to compete.
Canadian shipbuilding at its peak employed almost 12,000 people. It is not unrealistic to think that the number of spinoff jobs was around the same, for a total of 24,000 people across Canada employed, happy, contributing to the tax rolls and the economy and contributing to their communities as well.
Now at its lowest point, the Canadian shipbuilding industry employs roughly 4,000 people across the country. Again, the number of spinoff jobs is about the same. Through this government's lack of initiative, approximately 20,000 people are out of work. This is simply not acceptable.
Back in the days when the government was in opposition the Minister of Industry was the transport critic. Many pieces of correspondence, of which I have copies, were sent to the shipbuilding industry members by the transport critic, now our Minister of Industry. He claimed that the issue of a revamped modern shipbuilding policy was an utmost priority. This sentiment was echoed by the current Prime Minister when he was in opposition. I quote from one of those letters. The Prime Minister when in opposition stated “It is safe to say that most people recognize that something needs to be done to create a much more competitive shipbuilding industry”. Today where is the Prime Minister and the Minister of Industry?
In 1993 the Liberal Party membership voted in favour of developing a new national shipbuilding policy. In 1993 the Liberal Party became the government. It was being given the chance to make the changes that it for so long decreed as necessary.
Suddenly the sentiment of the government changed. In further correspondence with members of the shipbuilding industry the current Minister of Industry started to change his tune. He stated “Your proposals were insightful and creative; however, to implement these would require the dedication of significant resources which are not presently allocated to shipbuilding”.
A national shipbuilding policy was no longer on the top of his agenda nor on the top of the agenda of this government. It was relegated to the bottom of the list apparently, because after six years of being in government, no sign of a modern national shipbuilding policy has been seen.
What happened to the Liberal promise of change? Need I ask? It has gone to the same black hole with other Liberal promises from the red book, just like the GST, the helicopter situation and the Pearson airport deal.
The last Tory government considered national shipbuilding to be a priority and developed many initiatives to promote our skill in this field.
For example, the Canadian patrol frigate program produced thousands of jobs in Atlantic Canada and Quebec through contracts that produced 12 new frigates. This program brought worldwide attention to Canada's capability to design, integrate, test, construct and manage large projects.
Also in 1991 we awarded 12 maritime coastal defence vessels for the Canadian navy, designed and built here in Canada. The contract for the MCDVs created a steady flow of work into the shipbuilding industry.
The following is from experts and is in today's Ottawa Citizen :
Unlike other countries, the Canadian military has no dedicated transport ships necessary to move equipment overseas. It must either rent commercial vessels to go to a conflict area or hitch a ride from its allies.
That is a disgrace.
The PC government in its time was in an era of fiscal responsibility and had to reduce total transportation subsidies. However we took the steps to ensure the viability of the shipbuilding industry because of the many positive spinoffs to Canada.
We are asking the current Liberal government to recognize the importance of a national shipbuilding policy and to develop it immediately so that people will still be working in our shipyards across the country at the turn of the new millennium.
In discussions with members of the shipbuilding industry, we have determined what the industry requires in order to survive. There are four things: one, exclusion of new construction ships built in Canadian shipyards from the present Revenue Canada leasing regulations; two, provision of an improved export financing and loan guarantee program similar to the title XI program in the U.S.; three, provision of a refundable tax credit to Canadian shipowners of shipbuilders who contract to build a ship or contract for conversion with change of emission, mid-life refit or major refit; and four, eliminate the one-sided aspects of NAFTA which allow the U.S. to sell new or used ships duty free in Canada yet absolutely prohibit Canadian access to the U.S. market.
I am asking the government today to live up to the promises the Liberals made to get elected and form the government in 1993 and again in 1998. The Liberal government adopted resolutions, as I have stated, that this situation with shipbuilding would be rectified. The Liberal government has not followed through and the people are still waiting.
These highly skilled workers will have to leave this great country of ours and find work in the U.S. if we do not get a new national shipbuilding policy immediately. I say that because they came up from Louisiana, U.S.A. to my riding a month ago and offered jobs in the United States to 200 men.
To make sure these people can stay in Canada to raise their children on Canadian soil and be proud to be among the best shipbuilders in the world, please let us all work together in this House. Let us develop this new shipbuilding policy with this end as our goal for our people.
