International Trade committee  I have nothing more to add. The explanation, as given, is that a Canadian purchaser of a vessel built in Canada has the option of SFF or ACCA. I think Finance has clarified the rules with regard to accelerated capital cost allowance, so I have nothing more to add.

International Trade committee  I do not have a number for that, no.

International Trade committee  Under the structured financing facility, I think we certainly market Canadian capacity and capability internationally. As we know, both foreign firms and domestic firms can apply for this particular program. So in that sense, we do undertake efforts to promote the capability of Canada in specific areas, and certainly, over time, we are developing niche areas.

International Trade committee  While these dollars have been allocated to the Department of Fisheries and Oceans for the Canadian Coast Guard, I don't have intimate details. I do know there is a series of smaller vessels. There are some inshore scientific vessels, etc., but in terms of the allocation of funding for the specific vessels, I'm not privy to that.

International Trade committee  The shorter answer to that question is that the $43 billion is stretched over a 30-year period to basically take into account the kinds of ebbs and flows in the cycle of shipbuilding. There's been a boom and bust for a prolonged period of time. The intent of having the fleet renewals, both for the coast guard and the navy, and having it identified over a period of time, is to help ensure that the level of capacity in specific yards is raised.

International Trade committee  It's my understanding, as previously mentioned, that a foreign company may be able to utilize a capital cost allowance regime within their country, but I don't see how that can apply in Canada.

International Trade committee  I think that was my point. A domestic applicant to the SFF would have the option of utilizing the SFF or the ACCA.

International Trade committee  Right. A foreign company can make use of the benefits of the SFF but not within the Canadian tax regime.

International Trade committee  That's correct.

International Trade committee  That's correct.

International Trade committee  Clearly part of the intent of the SFF is to ensure that the capability and capacity exist in Canada to help realize the procurements that have been identified, the $43 billion worth over the next 30 years, and also as identified in Budget 2009, the $175 million for coast guard vessels.

International Trade committee  Correct. Sorry, you have my apologies if I misled you.

International Trade committee  The simple answer to that is that given the volume of vessels that have been built in, let's say, a country like Norway over a period of time, one finds that the actual cost of constructing a vessel will decrease as the number of vessels produced increases. It's what we call the learning curve.

International Trade committee  From all indications, we are.

International Trade committee  With all due respect, Industry Canada's presence here today was to speak to issues related to EFTA and the shipbuilding. I'm not at liberty, nor do I have the knowledge base, to answer that type of question.