Mr. Speaker, I thank the House for the opportunity to comment on today's motion, which calls upon the government to act on Motion No. 164, adopted in the 38th Parliament.
As a brief reminder, it proposed two somewhat ill-defined measures to help Canadian textile and apparel industries. Chief among them was the establishment of an industrial assistance policy and an older worker income support program.
The apparel and textile industries play a significant role in the country's economy, serving as a source of skilled employment in cities and communities primarily located in Quebec, Ontario, the Maritimes, British Columbia and Manitoba. These industries, however, are facing continual and far-reaching pressures from an increasingly competitive global market.
As Canadian Apparel Federation executive director Bob Kirke notes his industry faces heavy offshore competition from fashion designers as well as factory workers, remarking “you have to be really good to survive”.
These pressures have made the transformation of the textile and apparel industries from national to globally integrated industries a necessity. There is no sign such challenges will abate in the future. Indeed, the trends suggest an even more competitive global outlook.
The elimination of global textile and apparel import quotas in January 2005, pursuant to Canada's World Trade Organization commitments, resulted in significantly increased competition from low wage countries for Canadian producers.
Although the need to adapt to increased competition is not unique to the apparel and textile industries, or even to the Canadian economy, changes in the global marketplace are nevertheless having a significant impact upon the environment in which both industries have and continue to operate.
What is our government doing? In the face of such challenges, our new government is demonstrating its commitment to the long term viability of both the apparel and textile industries, actively working with them to turn the challenges of today into the opportunities of tomorrow.
To assist the two industries in their efforts to compete effectively and efficiently in the changing global markets, we are working with our U.S. and Mexican counterparts to facilitate the access of textile and apparel companies to world-class inputs. We are reviewing proposals for an outward processing program that may provide new market opportunities for the textile and apparel industries. We are continuing to protect against illegal shipment of imported apparel and textile products. We are working, through the employment insurance program, to continue to meet the needs of workers adjusting to changes in the industry.
We are ensuring, through ongoing support for human resource sector councils, that workers obtain the necessary skills to respond to the challenges of a rapidly changing labour market and identifying and reducing tariffs on imported textile inputs to improve the industry's cost competitiveness.
To underline our commitment to this last point, Canada's new government recently announced the implementation of measures to reduce or eliminate tariffs on a number of textile fabrics used in the apparel industry. These measures will provide apparel producers with up to $4.5 million in annual duty savings.
Canadian Apparel Federation president Elliot Lifson called the announcement “a step in the right direction. The biggest input cost is material so this should encourage manufacturers”.
Such measures are also in line with the goal of “Advantage Canada” to create a Canadian entrepreneurial advantage by encouraging further international trade and investment, while allowing Canadian businesses to do what they do best, invest, expand, and create jobs for hardworking Canadians.
Canada's new government has also demonstrated its continued support of the Canadian apparel and textiles industry program, or CATIP.
Working in partnership with industry associations and other stakeholder organizations, CATIP assists Canadian textile and apparel firms adjust to impacts of globalization through numerous approaches including: industry-wide branding initiatives; support for domestic and international marketing activities such as trade shows, matchmaking events and marketing materials; support for best practices and diagnostic sessions for companies; development of national textiles and apparel portals and e-commerce awareness activities; and, staging of domestic industry conferences.
An additional component of CATIP known as CANtex helps textile companies enhance productivity and reorient production toward higher value-added products for growth markets.
The measures I just outlined clearly demonstrate that our new government is working with both industries to address the challenges of globalization and ensure the continued viability of domestic firms.
We are representing more than the Bloc has ever achieved, or will ever achieve, for the apparel and textile industries. Not only will these measures further boost the competitiveness of these industries, they will ensure continued innovation while making the most out of our key competitive advantages and indepth understanding of niche consumer markets and close proximity to North American consumers.
Canada's new government is confident that by maximizing such competitive advantages we can assist in the renaissance of these important industries. According to Milstein & Co. Consulting a burgeoning renaissance is already underway with a new generation of small clothing manufacturers emerging throughout Canada, stating “The industry will regenerate, there's no doubt about that. It's happening now”.
Additionally, I remind the House of the many measures designed to encourage the entrepreneurial spirit of Canada through the promotion of a more competitive and productive economy.
Accelerating elimination of the federal capital tax, reducing the general corporate income tax and eliminating the corporate surtax will help attract and retain investments in Canada, helping our country respond to the economic challenges of the 21st century.
Before concluding my remarks, I will specifically address the two initiatives referenced in Motion No. 158, namely outward processing and assistance for older workers.
Over the course of the last several months, the Department of Finance along with Industry Canada, the Canada Border Services Agency and Foreign Affairs and International Trade have been working with the Canadian Textile Institute and the Canadian Apparel Federation to develop program options for an outward processing program that would reduce or eliminate the customs duty on imported apparel containing Canadian textiles.
Given that approximately $6 billion of apparel is imported into Canada each year, the textile industry anticipates that such a program would provide new market opportunities for the Canadian textile industry, even if Canadian textiles are used only in a small portion of apparel imports.
In the near future, officials are scheduled to complete their consultations and finalize their evaluation of the options. In conducting this evaluation, consideration will be given to such issues as consistency with Canada's World Trade Organization and NAFTA obligations, and ease of administration.
With regard to the call in Motion No. 158 for increased assistance for older workers, Canada's new government recently brought forward two concrete measures in this respect.
First, this past October, we announced $70 million for the targeted initiative for older workers, to help older workers in vulnerable communities remain active and productive participants in the labour market.
Second, just this January, as promised in budget 2006, we announced the appoint of an expert panel to study labour market conditions affecting older workers.
Clearly, as textile and apparel industries compete in the new era of increasingly challenging global trade, Canada's new government is committed to putting in place the right policies to assist them as they seek to transform these challenges into opportunities.