Christian Paradis

[Agriculture and Agri-food, March 30th, 2007]

Mr. Speaker, let us be clear. We have to start at the root of the problem. The Minister of Agriculture and Agri-Food, in concert with the Minister of International Trade, called for WTO negotiations specifically to put an end to Farm Bill subsidies, which are creating market distortions. In addition to that, we are replacing the CAIS with programs that are much better suited and much more acceptable to farmers. Furthermore, $2 billion was announced in budget 2007, specifically to give grain farmers new opportunities in the area of ethanol. This was very welcome news.

[Agriculture and Agri-food, March 30th, 2007]

Mr. Speaker, I would like to remind my colleague that the government announced no less than $400 million, which will be paid to Canadian farmers to help them face the increasing costs of production. That is something tangible. We are pleased that the Bloc supports us on this, so that our farmers can receive their cheque as soon as possible.

[The Budget, March 27th, 2007]

Mr. Speaker, I thank my colleague for her question. She brings up a very important point.

We know that a certain climate change policy was established over the past 10 years with the previous government. There was a lot of talk, but nothing was done. This is disastrous.

Our government is making things happen. We are introducing clear and concrete regulations that will produce results for Canadians. We are already seeing the positive effects. We can see that it has been well received.

But it is not just about air. Canadians should also be entitled to expect clean water. This was announced in our election platform. Only 14 months after taking over, the Minister of Finance is already introducing a national water policy. He is announcing tangible results and projects.

This is good news for Canada, and we will work on this with the provinces and territories.

[The Budget, March 27th, 2007]

Mr. Speaker, I thank my colleague for his question.

He speaks of repetition. In fact, the there is a great deal of good news from the government. I think that our election platform clearly spelled out our priorities. We wish to support the agricultural sector. Since being elected, we have injected $4.5 billion into the agricultural sector. This sector had been woefully neglected for 13 long years by the Liberals with catastrophic consequences. The sector is reeling and has a lot of catching up to do. This government is determined to put it back on a sound footing.

These are unprecedented measures and we can be proud of them because the agricultural sector is the engine and the foundation of our economy. We must keep this sector in good financial health.

There are extraordinary measures for our seniors. They can split their pension income for tax purposes in order to obtain additional amounts. Furthermore, as I mentioned in my speech, amounts can be transferred to an RRSP or a RRIF.

These concrete measures will put a fair bit of change in taxpayers' pockets. Agriculture and families are the priority, are at the forefront. Let us not play petty politics with that. We can see that the Liberal Party does not know what to attack.

[The Budget, March 27th, 2007]

Mr. Speaker, I will be sharing my time with the member for Palliser.

Before discussing the federal budget, I want to congratulate all the men and women who took part in yesterday's election in Quebec. In particular, I want to congratulate Premier Jean Charest on his reelection, and Mario Dumont on his fine campaign.

I am pleased today to be able to address this House to discuss the merits of the excellent budget tabled a week ago by my colleague, the hon. Minister of Finance. This budget reflects the Government of Canada's unwaivering support for our agriculture and agri-food sector. Our government has confirmed its intention to ensure a prosperous future for our farmers. Quebec's agriculture sector is a major contributor to the Canadian economy. We know that Quebec's producers, just like the producers in the rest of the country, are not asking for a handout. We want them to be able to benefit from solid, predictable programs in order to face the growing challenges they encounter. The new Government of Canada is keeping its promises to improve farm support programs and encourage the production of renewable fuels. We are supporting our producers and protecting the environment at the same time.

The 2007 budget contains an additional $1 billion for producers. Once the cost-shared agreement for the new savings account program is signed with Quebec and the provinces, the government will give $600 million to producers for them to put in their new savings accounts. To help compensate for the increased cost of production over the past four years, the budget also includes an immediate $400 million payment.

The launch of a program focussed on savings accounts for producers is a major step in replacing the Canadian agricultural income stabilization program, commonly referred to as CAIS, with programs that are more predictable and better suited to our producers' needs. As I was just saying, we have entered into negotiations with the provinces in order to implement a savings account program. Together, this new program, the disaster relief framework, improved production insurance, and an improved margin-based program will replace CAIS.

That was an election promise and we have kept it. Investments in renewable fuels production will allow Quebec and Canadian producers to help the bioeconomy grow. Budget 2007 will provide $2 billion over seven years for the production of renewable fuels, including $1.5 billion for incentives to produce renewable fuels such as ethanol and biodiesel. In addition, $500 million will be made available to Sustainable Development Technology Canada to invest with the private sector in setting up large facilities producing renewable fuels. These actions show that the Conservative government listened to producers. We keep our promises and we deliver.

I would like to take a moment to explain how the investments this government is making will help producers in Quebec. Budget 2007 builds on the proven ability of the new Government of Canada to provide Canadians and their families with tax relief, including a new working income tax benefit of up to $500 for individuals and $1,000 for families, to reward work and strengthen incentives to work. Workers in Quebec will receive $106.7 million under this new initiative. We also have a new child tax credit that will provide more than 3 million Canadian families with up to $310 in tax relief for each child, resulting in savings of approximately $297.2 million for Quebec parents, and an increase in the basic spousal amount that will provide tax relief of up to $209 to a supporting spouse or a single taxpayer supporting a child or relative. This initiative will translate into savings of approximately $55.7 million for Quebeckers. Also, raising the age limit for registered pension plans, or RPPs, and registered retirement savings plans, or RRSPs, to 71 years of age will save Quebec taxpayers $28.4 million.

The correction of the fiscal imbalance brings unprecedented levels of federal support to Quebec and the provinces. For Quebec, transfers total more than $15.2 billion for 2007-08. Once again, we are keeping our word and delivering the goods. Under a new and improved equalization system, payments will total $12.8 billion in 2007-08, including nearly $7.2 billion for Quebec.

In 2007-08, the Canada health transfer will give Quebec and the provinces cash payments of $21.3 billion in 2007-08, including $5.2 billion for Quebec. The Canadian government will pay $9.5 billion in 2007-08 through the Canada social transfer, including $2.2 billion for Quebec.

In 2008-09, all provinces and territories will benefit from an additional $250 million in the form of permanent CST funding for the creation of child care spaces, as well as an additional $800 million for post-secondary education.

The combination of those two transfers means that Quebec will receive $410.4 million, with an annual increase of 3%.

Furthermore, in 2007 and 2008, all provinces and territories will benefit from an additional $250 million for the creation of new child care spaces. This funding is meant to round out the CST, and includes $97.5 million for Quebec.

Budget 2007 provides $500 million a year for labour market training beginning in 2008-09, including $117 million for Quebec. We have accomplished a great deal, for Canada as well as Quebec.

Overall, Quebec farmers should receive $896 million through various programs begun in 2006. The payments made to Quebec producers during the first three years of the Canadian agricultural income stabilization program should total $598 million. Additionally, Quebec will receive over $51 million of the total budget of $1.5 billion announced for agriculture in budget 2006.

Quebec producers will also benefit as follows: $50 million to cover the additional costs related to changes in the criteria respecting coverage of the negative margin under CAIS; $90 million under the cover crop protection program; and $550 million under the Canadian farm families options program. Quebec’s producers will also benefit from the payment of $46 million under the grains and oilseeds payment program. In addition, the federal government contributed some $22 million to production insurance premiums in 2006 to help Quebec producers manage their production costs.

For Canada’s new government, the long-term prosperity of farm producers also depends on a firm defence of their interests internationally. In fact we think it is crucial to fight the trade distortions caused by domestic aid policies, to work for improved market access and to oppose all export subsidies.

Canada’s new government has demonstrated over and over again that it is prepared to stand up for farmers in Quebec and Canada where our supply management system is concerned. These past years, American corn subsidies have risen to $9 billion a year. That worries us. That is why, last February, Canada held formal consultations at the WTO with the United States about the financial assistance paid to American corn producers with respect to the total level of support for agriculture, which gives rise to a trade distortion, and about some of its export credit programs.

More recently, the Minister of Agriculture once again demonstrated our commitment to defend our supply management system by announcing that Canada’s new government will announce negotiations under GATT Article XXVIII to restrict imports of milk protein concentrates.

I wish to conclude by expressing my pride in this government’s achievements in the agricultural sector in both Quebec and the country as a whole. Thanks to our ongoing action in this sector, we can look forward to a prosperous future for agriculture in our country.

[Agriculture and Agri-Food, March 23rd, 2007]

Mr. Speaker, I will continue. You will note that we have solved a lot of issues in a short period of time.

With regard to supply management I would like to quote Mr. Pellerin again:

By moving from words to actions, the government has been able to dispel lingering doubts about its real intentions. This announcement is an acknowledgement of the place of supply management in Canadian agricultural policy.

We will now be making an additional $1 billion investment with an income stabilization savings account—as requested—, bringing our support to $4.5 billion since we formed the government. I repeat: while the Bloc talks, we take action.

[Agriculture and Agri-Food, March 23rd, 2007]

Mr. Speaker, Quebec farmers receive their fair share and they know it. Furthermore, our government looks out for farmers and they know it.

Take supply management for example. This is what Laurent Pellerin wrote about specific measures we introduced. He remarked, “This announcement and the accompanying commitment represents one of the most tangible displays of political support for supply management by a government in 15 years”.

While the Bloc talks, we take action.

[Business of Supply, March 1st, 2007]

Mr. Speaker, I thank my colleague for his question.

Indeed, this is a point that was picked up by the government, that is that small and medium businesses would be targeted by this project. As a matter of fact, Boeing was asked to provide economic spinoffs of 15% specifically for that sector.

What must be understood is that we never had to use this clause, never had to do a follow-up. This requirement has always been met in the past. However, and despite all this, the Department of Industry is quite aware of this risk. This is why, in my speech, I reiterated, on behalf of the Minister of Industry, that a large group of officials would be deployed to ensure a follow-up. This is a legal framework and we want it to be respected. It is strict and a team of officials will do this follow-up. That is why clear benchmarks have been established to ensure there is an adequate follow-up that would respect the very essence of the agreement reached by this government and Boeing.

[Business of Supply, March 1st, 2007]

Mr. Speaker, we have here some good news, on which the Bloc Québécois is trying once again to put a negative spin. We have to understand that there have been 13 years of Liberal negligence with the complicity of the Bloc Québécois. To illustrate this, I would say that the Liberals and the Bloc were satisfied our troops were going off to fight with slingshots. Now, we are allowing them to have access to adequate weaponry and technology. Today, we have 100% Canadian spinoffs, which was not the case before.

Then, the Bloc Québécois was against the softwood lumber agreement. Unions and the Quebec government said that it had to be passed, so the Bloc Québécois flip-flopped. Better still, let us talk about supply management. I read this morning a press release from the member for Richmond—Arthabaska saying that the Minister of International Trade was not clear on this issue. According to Laurent Pellerin, the president of the UPA, this is the most meaningful action that the federal government has taken for supply management in 15 years. When will the Bloc Québécois face reality and finally admit that there is a government that is working at the federal level in Quebec's interests?

[Business of Supply, March 1st, 2007]

Mr. Speaker, I am pleased to have this opportunity to speak about the many stringent conditions this government set with Boeing for the purchase of strategic airlift planes.

The motion suggests the government was soft on Boeing during the negotiations. Nothing could be farther from the truth. Economic spinoffs must be high quality and involve high technology. Here are a few examples of acceptable projects: the production of mission avionics for helicopters; the installation of radars and other electronic material in fighter planes; the production of composite high-tech parts for large commercial planes; the establishment of a research and development centre; or investments in Canadian universities for research in aerospace engineering.

But if a company wants to buy raw materials like steel or iron ore, trade wheat, foodstuff or farm products, or goods and services with a low technological content, these proposals would be refused.

Once a company has prepared a proposal for high quality and high technology industrial benefits, that proposal is evaluated according to three strict criteria. First, the work must be generated by the procurement program. Second, the work must be carried out during the period defined in the contract. Third, the work must comply with the growth principle, which is that existing business relationships may be used, but only the new work will count toward meeting the obligation.

Industry Canada then insists that the spinoffs be truly Canadian. To determine this, the department examines the precise value of the Canadian content of the transactions between the principal suppliers and the Canadian suppliers. In other words, officials examine the precise quantity of materials or work from Canadian sources that a transaction involves and award it points.

Consequently, if a contractor buys a product from a Canadian company and the product is entirely manufactured in Canada, it receives full points for that factor. However, if 60% of the product is manufactured in Canada, it will be awarded only 60% of the points assigned for that factor. That also means that the total value of contracts with Canadian companies often exceeds the amount that the government pays the principal supplier. Canadian companies receive that income, and the Canadian economy automatically benefits.

As well, half of Boeing's transactions in relation to industrial spinoffs must be in the aerospace and defence sector. Boeing operates primarily in the aerospace and defence industry, and so a majority of its activities in Canada should be in that industry. However, by imposing that minimum, the government has left the door open for other high technology industries. Boeing must also allocate 30% of its industrial benefits contracts to key technologies, as set out in the list drawn up for that purpose.

The list of key technologies was developed in collaboration with the industry. It sets out the nine main priorities for technologies that will help to preserve and expand the aerospace and defence industry, while ensuring its long-term sustainability. The list includes the following technologies: advanced manufacturing and emerging materials; avionics and missions systems; communications and control; propulsion and power management; security and protection; sensors; simulation, training and synthetic environment; space; and unmanned vehicle systems. Boeing has already identified a number of transactions that meet the requirements of the key technologies list. The company will be undertaking major projects that use technologies relating to composite materials, simulation and training, communications and control, and space.

Finally, 15% of Boeing's industrial benefits contracts must be awarded to small and medium sized businesses. These are vital to ensuring the growth and viability of the aerospace and defence sector and of the economy as a whole. These have proven their lead role in economic growth models. Boeing is a huge company with multiple divisions and it is often hard for small businesses to make a place for themselves in Boeing's supply chain. This is why it is important to ensure that these businesses will also be able to take advantage of this opportunity.

To date, the industrial benefits relating to the strategic airlift project have been solid in all these sectors and show promise as far as potential long term impact on the Canadian economy is concerned. Through Industry Canada, the new government of Canada places strong emphasis on the importance of Canada-wide participation and showcasing the skills of Canadian companies. Our government is making every effort to ensure that international corporations are aware of the scope of Canadian industry and of its many and varied assets.

Industry Canada officials will be working closely with the regional development agencies, that is the Atlantic Canada Opportunities Agency, Western Economic Diversification and the Economic Development Agency of Canada for the Regions of Quebec. Together they will seek out Canadian businesses with a potential interest in the opportunities available.

In addition, departmental officials will work directly with Canadian businesses throughout Canada in order to draw attention to existing opportunities and to help companies interested in obtaining contracts, in order to underscore the importance of Canada-wide participation and to showcase these companies' abilities.

We also make it very clear to potential bidders that they are expected to work with companies throughout Canada. Boeing, for example, held four sessions with regional industries, one in each region of Canada. The one in the Atlantic region was held on September 7 and 8, 2006 in conjunction with the Halifax air show. They were in Calgary for the western region on October 3 and 4, 2006, in Montreal for the Quebec region on October 24 and 25, 2006, and in Toronto for the Ontario region on November 7 and 8, 2006. Boeing was thus able to meet hundreds of Canadian businesses and to gauge the strengths and abilities of companies all over the country. Boeing has undertaken to work with Canadian businesses in order to achieve 100% industrial benefits. This will be achieved through logical business relations leading to real markets and the forging of lasting and viable partnerships.

The spinoffs in Canada are serious contract obligations. Industry Canada requires annual reports, audits and performance guarantees. Each year, contractors must report on what they have accomplished in that respect. Financial penalties can even be applied in case of a failure to comply, but until now, it has never been necessary to impose such penalties.

I would like to sum up the strict requirements which I just described. Boeing must ensure that there are high quality spinoffs worth 100% of the eventual contract value. The company musk work with businesses throughout Canada, including Quebec. At least 50% of the spinoffs must be for the aerospace and defence industry, at least 30% for the nine key technologies identified by the aerospace and defence industry and at least 15% for small and medium sized businesses. The value of the spinoffs in Canada must equal 100% of the contract value.

The work must come from the acquisition program. It must be performed during the period defined in the contract. It must be in agreement with the principle of growth. Existing business relationships may be used, but only new work counts in assessing compliance with the obligation. These are rigorous conditions which define a serious contract obligation.

The government is very serious about its responsibility to negotiate firmly with potential suppliers and to obtain optimal spinoffs for all of Canada. The government has respected its obligations.

I will stop here in order to be able the share my time with the member for Beauport—Limoilou.