Finance committee  It's the investment cycle, and new product cycle. Because the competition is so great in other jurisdictions, the next round of investments has to be that much more competitive. We have to be not just competitive but we have to create an edge to attract that investment away from those jurisdictions.

Finance committee  We'll talk some more.

Finance committee  We're in support of the CETA because one of the key aspects is that it puts a placeholder in there that recognizes the integration of the industry. As and when the EU-U.S. agreement comes forward, we will be able to accumulate content that is important for the rules of origin. If we can't meet the rules of origin requirements, we're dead in the water.

Finance committee  These are programs in response to what other jurisdictions are doing and they need to evolve. Some changes were made to the SR and ED program that actually diminished the value of the program to our companies. That needs to be addressed. The AIF money is very helpful but it needs to evolve in response to what other jurisdictions are doing as well.

Finance committee  Canada-U.S. harmonization is the primary...and we have global forums in which we're going to look at global harmonization.

Finance committee  It is indeed, and we just have to get the other side of that.

Finance committee  It's the Oakville Ford plant. The key thing with new investment and product mandate is to have a global platform so that we can actually export from Canada. Yes, our companies generally build where we sell, but the idea now is to maximize capacity utilization, find global mandates, and export product from Canada.

Finance committee  Mr. Van Kesteren, if I could say though, we are now at the next cycle, so decisions have to be made now for the next round of investment. We've seen 17 new investments go into Mexico, as an example.

Finance committee  I'll give you three, and then one proposed. First off is the automotive investment fund. Certainly the top-up of that fund was extremely important. Certainly, we wouldn't be where we are right now if it wasn't for that fund, as well as SR and ED, as well as the accelerated capital cost allowance.

Finance committee  In very simple terms I think the answer to that would be yes. One thing that I didn't get a chance to mention was the SR and ED credit system. Changes were made to that program which made it less effective than it had been previously.

Finance committee  The changes to the program, to reduce the credit and eliminate capital and other required expenditures from the total, make it less of an incentive to draw and secure new research and development in Canada. For instance, the ability for large companies to exchange unused SR and ED tax credits for direct funding when used for new R and D projects would be an improvement.

Finance committee  The single window approach, with ProMéxico as an example, is exactly that: it's a government agency that basically works with all levels of government. It removes any sort of regulatory impediments. It coordinates the incentives that would be given as part of a package, a single package.

Finance committee  Correct. Municipal, state, federal: all of these levels of government come together under ProMéxico, as an example. Similarly, Tennessee has done that, and they've been very successful in bringing new investment. Why? They can process applications more quickly. They respond to the companies' needs.

Finance committee  Correct.

Finance committee  Thank you very much, Mr. Chairman, and thank you as well, honourable members, for inviting me here today for this important discussion. I represent Chrysler, Ford, and General Motors Canada. Collectively our members account for approximately 60% of all vehicles produced annually in Canada.