John Carmichael

[Economic Action Plan 2014 Act, No. 1, April 3rd, 2014]

Mr. Speaker, I am delighted to rise today in support of Bill C-31.

We Canadians are tremendously privileged to live in a country with such an abundance of natural resources. So much so, in fact, that the harnessing of those resources has had a direct link to our nation's prosperity.

Canada's manufacturing sector will be the focus of my speech today in support of economic action plan 2014 act, no. 1. It is but one example of a sector that has benefited tremendously from our land's abundance of natural resources. Manufacturing in Canada began with the production of simple items in small volumes. This was due primarily to our geographic diversity and to the absence of large consumer markets. Confederation in 1867 dramatically changed this sporadic consumer landscape, stimulating growth not only in Canada's manufacturing sector, but indeed in Canada's entire economy.

Following Confederation came the Canadian Pacific Railway, which led to new settlements and further increased our nation's population, skills, and capital. In 1871, a group dedicated to promoting the growth of manufacturing in Canada came together to establish the Canadian Manufacturers’ Association. Eight years later, Sir John A. Macdonald's national policy introduced high tariffs on imported manufactured items in order to protect Canada's manufacturing sector. This policy was instrumental not only to the development of Canada's manufacturing sector but also in creating a unified nation, independent of the United States.

The horrors of World War I brought about drastic diversification to manufacturing in Canada, as developments in the steel, shipbuilding, and pulp and paper industries reached unfathomable heights. By 1920, manufacturing directly employed about 17% of Canada's total labour force.

World War II brought about even more expansion and diversification to Canada's manufacturing sector, including to the automotive, aircraft, armaments, shipbuilding, and steel industries. By the mid-40s, more than a quarter of Canada's labour force was directly employed in the manufacturing sector.

Manufacturing also contributed significantly to the economic well-being and prosperity of all Canadians in the 20th century, accounting for a high of 24% and a low of 15% of Canada's GDP between 1945 and 1999.

The 21st century, unfortunately, has not been so kind to Canada's—and indeed the global—manufacturing sector. In fact, between 2004 and 2008, about one in seven manufacturing jobs disappeared across Canada, with similar declines experienced in the majority of OECD member countries. Contributing factors included production moving to countries such as China, an aging population, tariff reduction and, of course, the 2008 financial crisis.

Despite this downward trend, manufacturing is still a major contributor to the Canadian economy, accounting for almost 11% of Canada's GDP and employing over 1.7 million Canadians, with more than 95% of them being full-time, high-quality, well-paying jobs.

While manufacturing is centred on the production of goods, most Canadians do not realize that most high-value growth opportunities lie in the area of services, in such activities as research, engineering, design, marketing, and logistics. As such, manufacturing is an important source of innovation and global competitiveness for Canada, accounting for almost half of total business R & D expenditures. Incidentally, advanced manufacturing and strong knowledge-intensive industrial clusters continue to drive innovation and productivity across Canada.

The manufacturing sector employs a healthy mix of highly skilled Canadians in engineering, design, skilled trades, and research positions. In fact, the sector employed more than 58,000 R & D personnel in 2011, or 41% of all research personnel in Canada. Incidentally, the new Canada job grant will better align training and labour market needs by encouraging greater employer participation in skills training decisions and ensuring that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages, in sectors like manufacturing.

Along with the Canada job grant, our government has introduced a number of measures to continue strengthening the competitiveness of our manufacturing sector. These include reducing the corporate income tax rate to 15% from 22%, extending the temporary accelerated capital cost allowance for two years, eliminating tariffs on machinery, simplifying and streamlining the SR&ED tax incentive program, and doubling the IRAP program to an additional $110 million per year.

Economic action plan 2014 outlines a number of new measures that would do even more to assist this vital sector. These include building on the work of the red tape reduction commission by reducing the tax compliance and regulatory burden for small and medium-sized businesses; providing an additional $500 million over two years to the automotive innovation fund to support significant new strategic research and development projects and long-term investments in the Canadian automotive sector; moving forward with the new Windsor-Detroit international crossing; investing in federal bridges in Montreal to support the movement of goods, to create construction jobs, and to strengthen the manufacturing sector; creating the new Canada first research excellence fund, with $1.5 billion in funding over the next decade, available to all post-secondary institutions striving to excel globally in research areas that create long-term economic advantages for Canada; and finally, creating the Canada apprentice loan by expanding the Canada student loans program to help registered apprentices in Red Seal trades.

The manufacturing sector is responsible for 64% of total Canadian merchandise exports and is the number one sector for foreign direct investment in Canada. It accounted for 29% of total FDI in 2012. That is why our government is committed to opening new markets through our ambitious trade agenda. The comprehensive economic and trade agreement with the European Union, agreed to in principle on October 18, 2013, and the free trade agreement with South Korea, which concluded negotiations on March 11 of this year, are but two of the most recent examples.

Combined, these agreements open markets to hundreds of millions of consumers globally and are expected to boost Canada's economy by $13.7 billion. Put another way, this is the economic equivalent of adding over $1,000 to the average Canadian family's income or around 80,000 new jobs to the Canadian economy.

Incidentally, since taking office in 2006, our government has signed and entered into force five free trade agreements. These include the free trade agreement between Canada and the countries of the European Free Trade Association: Iceland, Lichtenstein, Norway, and Switzerland. It also includes agreements with Peru, Colombia, Jordan, and Panama. In addition, Canada signed an agreement with Honduras on November 5, 2013, but this has yet to enter into force. All of these agreements have included the lowering and elimination of tariffs on various Canadian exports, which significantly benefits Canada's manufacturing sector.

Canada's automotive industry is a key component of Canada's manufacturing sector. It employs about 480,000 Canadians directly and indirectly and represents 10% of manufacturing GDP. Our government is committed to ensuring that Canada's world-class automotive sector continues to have the right conditions for growth, not only in sales and jobs but also in cutting-edge technology, research, and development. The automotive innovation fund will create and maintain well-paying, good-quality jobs by supporting private sector investment in the Canadian automotive sector, increasing Canada's competitive advantage in the global marketplace. In total, the renewed fund will provide $750 million over five years, 2013 to 2018, to automotive companies in Canada in support of strategic large-scale research and development projects.

While Canada's manufacturing sector is going through some tough times, it will remain a critical component of Canada's economy. The production, sale, and distribution of finished products will continue to contribute to consumer and labour markets and to secure Canada's position as an economic leader among developed nations.

[Loran Scholar, April 3rd, 2014]

Mr. Speaker, I am pleased to stand today to recognize one of this year's Loran Scholars, Mr. Sachin Pasricha.

After 25 years, the Loran Scholar program is Canada's largest and most unconventional merit award, recognizing a mix of academic achievement, extracurricular activity, and leadership potential.

This year, 30 Loran scholars were selected from an initial pool of nearly 3,500 applicants, for their integrity, determination, entrepreneurial spirit, and overall leadership promise.

A student at Upper Canada College and a proud resident of Don Valley West, Sachin was recognized for his character, service, and leadership potential.

Sachin has chaired Ontario Model Parliament for two years, and previously co-founded a student-run publication for the program. He is also the news editor for his school newspaper and captain of the cross-country team. In the summer, he works as a special needs counsellor.

Well done, Sachin.

[Law Enforcement, March 25th, 2014]

Mr. Speaker, our Conservative government supports the great work that our law enforcement officers do each and every day to keep their fellow Canadians safe.

Recently, thanks to a tip from the Toronto Police and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, Canada Border Services Agency officers were able to intercept smugglers who were attempting to bring several handguns and grenades into Canada.

After they were detained and their home was searched, nearly two dozen other illegal firearms were located. An investigation by Toronto Police has linked one of the guns illegally imported by these smugglers to an attempted murder.

Thanks to the great work of our law enforcement officers, Canadians will be kept safe. Our Conservative government is proud to stand up for these officers who keep us safe each and every day.

[Canada-Honduras Economic Growth and Prosperity Act, March 6th, 2014]

Mr. Speaker, what we are hearing clearly demonstrates the type of values the opposition members bring to the House, values that are anti-trade and close-minded, and which just do not allow for expansionist thinking and opportunity.

I do not know if the member was in the room when I presented my speech, but the Canada-Honduras free trade agreement includes provisions on corporate social responsibility. We are sharing those provisions and our responsibilities with our partners on the other side of this agreement.

Somewhere we have to start to build a bridge. I hear the member on some of the issues, but I do not believe that closing ourselves off, staying entirely in Canada, being anti-trade and anti-growth and anti-prosperity, is going to do what we need to do in the rest of the world. We need to expand global markets.

[Canada-Honduras Economic Growth and Prosperity Act, March 6th, 2014]

Mr. Speaker, I have not been to Honduras, but I have had an opportunity to meet with some of those in the extractive sector, in the mining industry, who talk about social responsibility and an opportunity to give back to the communities where they work and employ local inhabitants. In doing so, they are not only growing those environments, those neighbourhoods, creating a more prosperous environment for people to live in within a more sustainable world, but also taking there the medical and dental practices lacking in those countries as an example, to help people in need where they do not have those skill sets available.

[Canada-Honduras Economic Growth and Prosperity Act, March 6th, 2014]

Mr. Speaker, we are a pro-trade government. That is what we do. We believe in trade. We believe in jobs, job creation, and prosperity for all Canadians. In entering a agreement like this, employing some of the standards and priorities that I have just articulated, it is critical that we work with our partners to ensure that they are carry those same values.

While the member certainly can promote an isolationist-type of environment, where we just stay at home, where we are anti-trade and do not participate in global markets, that is not the government's approach and not the one we on our side of the House will take in this agreement.

[Canada-Honduras Economic Growth and Prosperity Act, March 6th, 2014]

Mr. Speaker, I thank my colleague from South Surrey—White Rock—Cloverdale for his excellent presentation. From a tourism perspective, there is not a nicer part of the country to visit.

It is with great pleasure that I rise today in this place to speak to the Canada-Honduras free trade agreement. In particular, I would like to say a few words about the issue of corporate social responsibility and how it relates to this agreement.

Corporate social responsibility can be defined as the voluntary activities undertaken by a company to operate in an economically, socially, and environmentally sustainable manner. It is also increasingly referred to as responsible business practices. It covers a broad range of activities, including environmental protection, human rights, labour relations, corporate governance, transparency, community relations, peace and security, and anti-corruption measures.

Our government recognizes the importance of corporate social responsibility in a globally competitive, well-regarded extractive sector. Our government encourages and expects Canadian companies working internationally to respect all applicable laws and international standards, to operate transparently and in consultation with host governments and local communities, and to develop and implement corporate social responsibility best practices.

Canada has a long-standing commitment to promoting and encouraging responsible business practices by Canadian companies operating overseas. For instance, Canada has been a key driver and supporter of the numerous other important international instruments, including the International Finance Corporation's Performance Standards on Social and Environmental Sustainability, the Extractive Industry Transparency Initiative, the Voluntary Principles on Security and Human Rights, and most recently, the United Nations' Guiding Principles on Business and Human Rights.

This clearly demonstrates that this government's commitment to international corporate social responsibility standards is a fundamental ongoing priority. Our government has turned this commitment into concrete action in a number of ways, including by integrating robust corporate social responsibility provisions into many bilateral and multilateral free trade agreements, of which the Canada-Honduras free trade agreement is no exception.

Another concrete example is Canada's corporate social responsibility strategy for the international extractive sector, also known as building the Canadian advantage. The strategy was announced in March 2009 after extensive cross-country consultations with a number of key stakeholders. It has proven to be a strong framework by which our government encourages and promotes responsibility, responsible business practices by Canadian companies working internationally in the extractive sector.

Our support for the international corporate social responsibility guidelines in principle extends this reach to all business sectors operating anywhere in the world. Therefore, our government encourages and expects Canadian companies working internationally to, one, respect all applicable laws and international standards, including those that pertain to human rights and environment, and two, operate transparently and in consultation with host governments and local communities.

I want to be clear. The vast majority of Canadian companies conduct their operations in line with international standards for responsible business conduct. This is a key reason why Canadian companies are highly regarded and respected around the globe. It is also one of the reasons why Canada is a leader in the global extraction sector.

I wish to comment briefly on Canada's approach, which emphasizes voluntary activities as opposed to regulations, obligatory actions, and punitive measures. Canada has worked hard in support of many corporate social responsibility guidelines, as we understand their value to Canadian companies operating abroad. In fact, they often provide valuable guidance, which allows our companies to succeed. This is reinforced by actions of Canadian companies. There has been a substantial transformation on the part of the private sector with respect to corporate social responsibility.

Today, Canadian companies operating abroad recognize that corporate social responsibility and responsible business practices are fundamentally important to their ultimate success and their bottom line, including shareholder value. They recognize that a commitment to responsible business practice is a commitment to their own success. In a sense, corporate social responsibility has been mainstreamed into the management and operational structure of Canadian companies.

Last June, the Prime Minister announced that our government will be establishing new mandatory reporting standards for Canadian extractive companies, with a view to enhancing transparency on the payments they make to governments. This effort, which will also help to ensure that citizens in resource-rich countries around the world are better informed and benefit from the natural resources in their country, builds on Canada's key role as a supporting country of the Extractive Industries Transparency Initiative. These initiatives on transparency highlight our government's commitment to working with our trading partners to pursue policies that support a responsible and sustainable investment environment in the best interests of host communities and businesses.

Responsible business conduct reinforces the positive effects that trade and investment can have on human rights, labour standards, the environment, and competitiveness. At the same time, it has a significant positive effect on the communities in which the businesses operate. The Canada-Honduras free trade agreement includes provisions on corporate social responsibility because our government believes that liberalized, rules-based trade and social and environmental responsibility go hand in hand.

The parallel agreements on labour co-operation and environmental co-operation ensure that increased business between our two nations does not come at the expense of our social and environmental responsibilities. Activities to promote responsible business practices can also be undertaken in the form of trade-related co-operation. Provisions in these agreements encourage both governments to promote voluntary principles of responsible business conduct with their business communities. Not only do these agreements advance our government's efforts to promote corporate social responsibility; they also provide an opportunity to engage partners to increase its promotion.

Both Canada and Honduras have agreed to support positive corporate social responsibility practices and to remind companies of the importance of incorporating corporate social responsibility standards in their internal practices. A fundamentally important aspect of this bilateral approach is that it helps level the playing field for Canadian investors when they invest in Honduras, by encouraging corporate social responsibility principles amongst all investors. At its core, responsible business practices incorporate social, economic, and environmental concerns into the daily operations of firms to benefit industry and society, with particular consideration for the community in which they are operating. Given that Canada and Honduras have a significant investment relationship, it was critical to include corporate social responsibility in these important agreements.

Our government has shown its commitment to promoting corporate social responsibility and responsible business practices internationally and is pleased to work with trade partners to broaden this commitment. The Canada-Honduras free trade agreement recognizes this and is an important mechanism to create jobs, opportunities, and prosperity for Canadians in a socially and environmentally responsible manner.

For these reasons, I ask all hon. members for their support of this very important agreement.

[Small Business, March 5th, 2014]

Mr. Speaker, Canadian small businesses are the engine of Canada's economy and are responsible for creating high quality jobs and economic growth in communities from coast to coast to coast. Our government recognizes the important role that small businesses play in our economy.

Could the Minister of State for Small Business and Tourism, and Agriculture please update this House on what else our government is doing to help Canada's small businesses grow and remain competitive?

[Committees of the House, March 4th, 2014]

Mr. Speaker, it is hard to imagine.

In this day of instant messaging and instant information, we hear about crises that are occurring by the minute and in real time. Clearly 825,000 refugees who, I guess, almost went into obscurity suffered all of the same horrors as the refugees we watch today.

I cannot explain the situation other than to say that it is time we recognized it. Today's debate is an important opportunity to in fact take that time.

[Committees of the House, March 4th, 2014]

Mr. Speaker, I will begin by saying how privileged I am to have the opportunity to address this issue here today. This is an important debate.

My colleague for York Centre spoke about the Prime Minister's recent state visit to Israel, the West Bank, and Syria. However, throughout the morning we have heard much debate on where the priorities are. Is it the Speaker's ruling? Is it the Ukraine? Is it Syria?

There are many issues today that are very relevant, and all of them need to be discussed. This one brings me particularly poignantly to the issue of refugees.

On this recent trip to Jordan, I had the good fortune to travel by helicopter to the Syrian-Jordanian border. I witnessed hundreds upon hundreds of men, women, and children carrying their worldly belongings across the border. I can tell members that it was heart-wrenching to see the plight of the Syrian refugees as they fled for their lives with all that they could carry.

This issue is of particular importance. The timing is now. We have the opportunity to discuss it, and I think we should carry this debate to its conclusion.