Mr. Speaker, I will be dividing my time with the member for Calgary Shepard.
Every morning from coast to coast Canadians get up and go to work and more than 63,000 of those Canadians are employed in high-value jobs in the defence industry. It is an industry that has historically served a great purpose in helping keep the world safe.
In World War II, for example, Canada was known as the arsenal of democracy. Canadian defence industry production was pivotal in furthering the war effort. It also amounted to almost $10 billion in the production of necessary military arms and equipment, but the price tag is not really important. It is the role that it played. During that time the Canadian industry was able to build more than 800,000 military transport vehicles; 50,000 tanks; 400,000 field, naval, and anti-aircraft guns; 1.7 million small arms; and much more. More importantly, those defence industries kept the world safe, safe from a tyranny of a type never before seen.
My friends in the NDP think that those engaged in the defence industry are engaged in some kind of dirty business. They actually do believe it. They talk about dirty arms traders. They do not want to see any arms trade at all. They regard it as a dirty and shameful business. I respectfully disagree.
I believe it is a noble effort, and in World War II we saw that. We saw those industries rise to meet the existential challenge that our civilization faced. Notably, there were other surprising effects. Women by the tens of thousands entered the workforce through these very defence industries. The social change that resulted despite the unfortunate nature of the impetus for it was an advancement for women and for society. The products produced by those women in the Canadian defence industries helped to keep Canada safe and helped to protect the world, helped to make the world free in a very dangerous context.
While the need for military defence was clearly greater at that time, today our defence industry continues to serve a similar and important role. It also performs an important role in both our economy and the global economy.
The continued existence of the defence industry means that we are doing our part to keep our country safe and secure and should be able to, God forbid it be needed, ramp up that production to meet any future requirements in what is an uncertain and increasingly dangerous global environment. It will ensure that Canada can rise to the occasion to do its part. Should we wipe out that industry, which I would argue is one of the logical outcomes of the motion before us today, Canada would not be able to do its part. Therefore, no, I do not believe as many in the NDP do that defence industries are a dirty business. They are doing important and in fact patriotic work.
The companies that make up the Canadian defence industrial base and the types of jobs they offer are the kinds of jobs Canada needs, the types of jobs governments should value in today's highly competitive global economy. The salaries of Canadians in this industry are 60% higher than the average Canadian industrial wage. The industry contributes $6.7 billion annually to Canada's gross domestic product. This industry serves as a vital and innovative part of Canadian manufacturing. In fact over time we know that some of the greatest innovations in technology, some of the greatest advances, have come out of military imperatives and defence development.
Out of the $10 billion in revenue the defence industry generates annually, approximately 60% of the industry's total revenue is generated through exports. The majority of the industry depends on exports. Without those exports, as I said, the industry simply would not be able to survive.
Typically, national governments are the purchasers of Canadian defence equipment and the unique conditions under which this industry operates results in a circumstance where we have to have confidential agreements with other governments. It is a government-to-government relationship in the end. Reflecting the special nature of those sales for both sides is the fact that purchases are generally made through the Canada Commercial Corporation. It is a crown corporation and this by definition shows that governments regard these purchases as important strategic and tactical decisions.
In those circumstances I pose some common-sense questions.
If a government is looking to purchase important assets for the defence of its country, how much would it want to expose that to open scrutiny its potential enemies could see? Would it want them to know and understand the technical capabilities of the equipment it was acquiring? If it were seeking the customization of equipment to meet its particular needs, would it want those details potentially exposed to its enemies? I can assure the House that in most cases customization is exactly what the customers are looking for to meet their particular national needs.
What is the common-sense answer to these questions? It is pretty clear. If we create a process, as the motion seeks to do, that risks the national security of the potential customers, they will simply go elsewhere.
The agreement for the light armoured vehicles, LAVs, from General Dynamics in London will bring $15 billion into the Canadian economy over the next 14 years and will help employ 3,000 people in London, Ontario. However, the thing to consider above all else is that if they did not buy those LAVs from us, they would simply have gone somewhere else. There were others offering to sell those LAVs. There is a lot of competition out there from suppliers who do not have a process that jeopardizes the security interests of prospective purchasers. More than 10,000 are currently employed in the sector in London, Ontario, and any measures that could drive down exports would be devastating for the local economy and for that entire industrial cluster.
The international marketplace, as I said, is a highly competitive environment for military sales. Winning contracts requires a first-rate product, and it also requires a certainty of process. This is especially so when one considers the fashion in which so many governments support foreign military sales.
If one were to then insert a parliamentary committee into that process, it would simply put an end to most exports for exactly the reasons I said. Countries would simply not be interested in subjecting themselves to the security and tactical risks involved. We know that in the case of the LAVs sale, for example, it is exactly the capabilities of those vehicles that have been raised as one of the objections. People want to know what those capabilities are. The customers naturally do not want to expose capabilities to enemies because that would make them vulnerable.
If we then put that into a public context, into a public committee where those things were aired, it would not only negatively affect the industry's ability to negotiate deals with other governments, it would in fact wipe it out. It would lead to the loss of thousands of jobs.
What New Democrats are proposing today in the motion will undoubtedly not just have a negative impact on Canada's economy and put the defence industry at risk, it would likely wipe out the bulk of that defence industry. That does not bother them because of course they know this will happen. It does not bother them at all because that has actually been the overall goal of the NDP, to shut down the defence industry.
New Democrats regard it as a shameful and a dirty business. They have talked about the arms trade sneeringly, disregarding, I think, its noble history and the noble objectives of it in the future and currently. Seeing the end of that very industry would be a satisfactory outcome to many in the NDP. That is the real purpose of this committee, shutting down that industry, which they regard as an undesirable one they do not want to see in Canada.
New Democrats know that industry relies on those confidentiality agreements. They know the necessity of tactical information being kept secure, of capabilities of equipment being kept secure, and they know that if we then exposed all those things in a parliamentary committee, it would undermine that confidentiality.
I spent some time as trade minister and had the opportunity to work in that capacity with our Canadian Commercial Corporation. I know that we have the utmost controls and protections, both at that level and of course at the export control level. Governments have that ability to determine whether a particular sale makes sense, is in Canada's interests, has regard for human rights, has regard for our national security.
All those things we can protect, but the fashion in which one seeks to protect it is important. If we do it through a process that guarantees the loss of all those sales, that puts at risk the national security of our customers, we know we will have no customers.
That means that once again, another NDP policy initiative, if it were embraced, would result in what happens with most NDP policy initiatives. First, when New Democrats see an industry that is successful, they say regulate it. This is an example. Once it is regulated to death, if it is still going, they say they have to tax it some more. If it is still going after that, once they finally tax it and regulate it enough to start getting it on its knees, then they say it is time to subsidize it. We can expect that in the future if we do this.
I say let those industries continue their good work. They do good work for Canada and for our national security. We should not cripple them and handicap them and cause the tens of thousands who work in very good jobs in the sector to lose those jobs.