44th Parl. 1st Sess.
April 20, 2023 10:00AM
- Apr/20/23 10:18:30 a.m.
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Mr. Speaker, I tend to disagree with the member on one thing. The Government of Canada has been very supportive of the aerospace industry, virtually from day one. It recognizes the valuable role that the aerospace industry plays in our society, which goes far beyond the industry itself.
In fact, Quebec has led the country in terms of having a diversified aerospace industry. Quite frankly, one can build a plane from beginning to end in the province of Quebec. I think all Canadians are very proud of that. We have an aerospace industry throughout the country. Winnipeg is an important hub of that industry.
The pandemic had a worldwide impact, and the federal government stepped up to support the industry because we recognize just how important those jobs are and how important the industry is to the country as a whole.
Does the member recognize that the pandemic had some very strong, negative impacts on the industry as part of the worldwide impact?
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- Apr/20/23 10:19:41 a.m.
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Mr. Speaker, I would like to thank my colleague from Winnipeg North for his important question.
Do I think the federal government is stepping up? Hardly. Just compare the aerospace sector with the automotive industry in Ontario. The government contributes billions of dollars, tens of billions of dollars, to that industry. However, when it comes to supporting Canada's aerospace economy, it contributes only millions of dollars. I think that is a fundamental difference.
Why do we not have an aerospace supercluster in Quebec based in Montreal and centred on Aéro Montréal? In my opinion, that would be key.
We are talking about an aerospace strategy. We could use industry leadership to send a message. We are one of the only countries without an aerospace strategy. We are talking about risk sharing, the importance of cash flow, and the need to adapt to the needs of SMEs. The economy is also an economy of SMEs, of all the parts suppliers in the orbit of Bombardier, Airbus, Bell Textron, Pratt & Whitney, MDA, Héroux-Devtek and CAE. That is the economy we need to strengthen.
The federal government is not stepping up for the industry. That is what witnesses told our committee.
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- Apr/20/23 10:21:29 a.m.
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Mr. Speaker, I was just thinking of my colleague's leadership when it comes to the importance of the Davie shipyard.
It is important that the government also choose Quebec companies in order to better share the wealth. Too often, we feel that we are not getting our fair share, and the national capital region has the same problem.
In answer to my colleague's question, I want to quote Jean Lapierre who, when he was minister, said that the aerospace industry is to Quebec what the automotive industry is to Ontario.
What does the aerospace industry in Quebec represent? It represents 400,000 direct jobs and 100,000 indirect jobs; 220 businesses, including 200 SMEs; $18 billion in revenue; 80% of production for export, since it is Quebec's largest exporter; 12% of manufacturing exports; 50% of jobs in Quebec; 60% of sales; 70% of research and development compared to the rest of Canada; and 55% of industrial research in Quebec. It is the third-largest aerospace hub in the world after Seattle, with Boeing, and Toulouse, with Airbus. It is clearly an integrated industry.
There are only three places in the world with suppliers that are capable of manufacturing all of the components of an aircraft from A to Z, and the greater Montreal area is one of them. It is an absolutely vital industry, and we need to do more to support it.
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- Apr/20/23 10:22:46 a.m.
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Mr. Speaker, I want to thank my colleague for tabling the report and for his comments this morning.
I noticed that my colleague's comments left out part of the story. Just a few months ago, our government made the biggest announcement in Canadian history for Quebec's aerospace sector. We made that announcement in Montreal, alongside Premier Legault. This shows how much we care about aerospace workers.
My colleague mentioned CAE. Bombardier came up. We can talk about Airbus, Safran, Héroux Devtek. We on this side of the House are well aware that innovation, that the heart of aviation, is in Quebec, as my colleague so aptly said.
Aerospace is not just in Montreal. Two other companies come to mind. The two biggest companies in my region, Mauricie, are in the aerospace sector, specifically Delastek and Placeteco.
I would say to my colleague that we obviously want to continue to support the aerospace industry. However, I would like him to acknowledge to the Canadians who may be watching this morning that we made a historic announcement to support investment in the aerospace industry, not only in Canada, but specifically in Quebec.
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- Apr/20/23 10:24:01 a.m.
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Mr. Speaker, I am very pleased to acknowledge that this was a major step. In my opinion, this step is a direct result of the study done by the Standing Committee on Industry and Technology a few months before the announcement. The industry came before the committee and clearly stated its needs to the government of Canada.
Yes, the response was issued within a pre-election context, but this response must go beyond just one step. What we need is a truly comprehensive national aerospace strategy that will bring predictability for the next 15 years. The federal government must send a clear message to the Quebec economy underlining the importance of the aerospace industry.
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- Apr/20/23 10:34:19 a.m.
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Mr. Speaker, in the previous question, I made reference to the importance of the aerospace industry, in particular in the province of Quebec. However, it is important for us to recognize that the aerospace industry goes far beyond the province of Quebec or even planes. When we talk about the aerospace industry, we talk about everything from satellite developments to helicopters. The best helicopters in the world are arguably made in the province of Quebec. There is satellite technology and development in the province of Manitoba; the wings for the F-35, for example, are made in the province of Manitoba.
This is an industry that goes beyond the province of Quebec, and it is important, as the federal government has recognized, that we continue to work with the stakeholders, those businesses, small and big, within the sector, and with the provincial governments in order to protect the tens of thousands of jobs that are there and the many contributions that the industry makes to our communities throughout the country. Would the member not agree?
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- Apr/20/23 10:35:20 a.m.
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Mr. Speaker, I agree, but let me rephrase a few things.
First of all, the member talked about helicopters made in Quebec. Indeed, we have Bell Textron, an amazing company. However, it is really sad that Bell Textron has never been able to bid on federal government contracts. Is that a coincidence? I wonder why that is. Therefore, the member might consider refraining from mentioning these companies.
I would also rephrase the member's words. Yes, I agree that we need to work with this industry. However, instead of saying that they are continuing to work with it, I would say they are starting to do so.
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- Apr/20/23 10:38:03 a.m.
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Mr. Speaker, I work with my colleague who sits on the committee. Clearly, these demands will not be ignored.
Of course, this also concerns the regions, as was mentioned a little earlier. The aerospace industry is not just in Montreal. It is also present in many places, in many areas. Small suppliers and small businesses are found all over.
A member said earlier that it is a constellation, a cluster. I want to emphasize that point because I believe that people are not fully aware of it. Quebec is one of the three places in the world where a plane can be fully assembled. Think about it. This means that all the parts can be manufactured and assembled in Quebec. This area is sustained by this important industry.
The luxury tax is a threat to at least 2,000 jobs, and some of them are definitely in the regions.
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- Apr/20/23 11:00:23 a.m.
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Mr. Speaker, my colleague has clearly done his homework on several aspects of the report of the Standing Committee on Industry and Technology. I would like to take this moment to acknowledge the excellent working relationship I had with his colleague, the member for Windsor West, on the issue of the aerospace industry, in particular.
The committee's report contains seven recommendations that touch on important themes: the idea of a centre of excellence, research and development, basic research, greener aircraft, energy transition, the circular economy, recycling, maintenance, innovation and procurement.
The member will no doubt appreciate recommendation 7 of the report, which reads as follows:
That the Government of Canada collaborate with provinces and territories to fund post-secondary training across all sectors of the aerospace industry, adequately accessible all over Canada.
I believe that is one of the things the member brought up.
I would also like to talk about recommendation 5, which he touched on quickly:
That the Government of Canada, following consultation with industrial partners and labour representatives, develop a national strategy for its aerospace sector.
That is fundamental to a vision for the future.
Is the NDP ready to work with the Bloc Québécois to put pressure on the government to implement this strategy and a vision for the future of Quebec's economy for the next 20, 30 or 50 years?
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- Apr/20/23 11:07:15 a.m.
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Mr. Speaker, I want to begin by saying that I will be sharing my time with my colleague from Mission—Matsqui—Fraser Canyon. He told me that his was the most beautiful riding in Canada. I am sorry to tell him that mine is the most beautiful. Sadly for him he represents the second most beautiful riding.
This morning I have the pleasure to rise to speak to the report of the Standing Committee on Industry and Technology that was tabled on June 16, 2022. This report, entitled “Development and Support of the Aerospace Industry”, has three chapters.
Chapter one reiterates that the aerospace industry was one of the hardest hit by the COVID‑19 pandemic. The second chapter is an overview of the different points of view on the implementation of support measures for the aerospace industry. The third chapter presents recommendations to the committee on the industry's recovery.
We all know that this industry experienced serious problems during the pandemic. Everyone was affected—the entire industry, not just in Quebec, but across Canada. It is important to emphasize that. It is also important to mention that Quebec is a true leader in the field of aerospace. It is truly world-class.
We know that many large companies have developed in Quebec over the years. Today, Quebec is home to a number of large companies, such as Bell Helicopter, Bombardier Aviation, Textron, CAE, and Pratt & Whitney Canada, as well as many equipment manufacturers and an extremely strong network of subcontractors. Some subcontractors are in my riding of Montmagny—L'Islet—Kamouraska—Rivière-du-Loup and I am proud of that.
We know that, when building an aircraft, safety is obviously the most important thing and all the parts that make up that aircraft must be made with extreme diligence and precision. I am very pleased to know that several companies in my riding contribute to this sector in Canada and Quebec.
Most companies in this industry are located in the greater Montreal area, but Quebec has over 200 aerospace companies and about 20 research centres for which it is renowned. It is renowned for the entire network surrounding aerospace: the university network, research centres, college centres for the transfer of technology, or CCTTs. Incidentally, there are three CCTTs in my hometown, La Pocatière. They are all organizations that, directly or indirectly, contribute to the quality of this industry. The industry generates revenues in excess of $34 billion, representing a contribution of $20 billion to $28 billion to the GDP. Over $700 million is invested each year in research and development. That is a lot of money.
Montreal is one of the world's three aerospace capitals, with Seattle in the United States and Toulouse in France. In Canada, 50% of aerospace production takes place in Quebec. It is a Canada-wide industry, but aerospace is to Quebec what the automotive industry is to Ontario, just as British Columbia has the best vines in Canada. Every Canadian province thus strives to highlight their entire industry, which also explains why Canada is so diverse in the production of all these elements. Our universities and technical colleges, including Montreal's École polytechnique, train over 4,500 students every year, who join a highly skilled workforce. It should be noted that there are 200,000 people working in aerospace in Canada.
This report was prepared by the Standing Committee on Industry and Technology. Before the final report and recommendations were presented, 33 witnesses had appeared. On November 2, 2020, the committee undertook a study of the issues related to the development and support of the aerospace industry. Four meetings were held and, as I said, 33 witnesses appeared.
The testimony highlighted the fact that, even before the COVID‑19 pandemic, the industry was already experiencing difficulties. We have to put this in context: There were significant labour shortages, just as there are in many Canadian and Quebec sectors at present. It was already a reality in the industry. Canada had started to lose highly skilled workers to other countries, and training centres had difficulty providing new workers. This was a very important aspect of all the speeches that were made before the committee. Witnesses came to talk to us about it.
We are in competition with the rest of the world and, obviously, we must have the best training centre and we must be able to integrate the people who arrive in Canada as quickly as possible based on the training that they already have. The same is true for the medical and health care sectors, among others. We must have the best employees in the world in the industry, and we must be ready to welcome them.
The industry was hard hit by the pandemic, and the airlines basically stopped operating. The entire commercial aircraft production chain was broken. Collectively, Canadian companies in the industry lost 40% of their revenue, and more than half of them had to lay off workers. Commercial flights have since resumed, but the aerospace industry is still suffering.
Support for the industry was one of the issues that was raised as part of the study that led to the report. Most of the witnesses that we heard from said that they were in favour of the idea of federal support for the aerospace industry. Many organizations indicated that the industry has been doing a lot of research and development that benefits other industries and Canada's economic growth. Of course, the research in this sector is very important and has an impact on other sectors of the Canadian industry.
Witnesses recommended actions rooted in four main areas: direct funding; research, development and training; procurement; and strategy and regulation. After hearing from all witnesses, the committee made some recommendations, the most important of which I am going to share.
We know that this government is extremely wasteful. That is nothing new; we have seen huge deficits for the last eight years. As a Conservative, it would be rather ill-advised of me to ask the government to spend even more and loosen the purse strings even more. At the same time, there are concrete solutions, incentives and measures that the government could put in place to help the aerospace industry while remaining fiscally prudent.
Here is the first recommendation:
That the Government of Canada ensure that a Center of Excellence on Aeronautics 4.0 be created and that it can bring together university- and college-level expertise in this field, and that this Center increase research capacities and development in this sector.
I spoke earlier about the college centres for the transfer of technology, the university network and the government of Canada's research centres. Earlier, I heard members talking about airplanes that could become electric. If we got all these people to the same table, we would be working together. As recently as yesterday, I saw a report about the first airplane with an electric motor, a small aircraft that is now authorized to fly in Canada. We need to continue to do research in that field.
Here is the second recommendation:
That the Government of Canada ensure that significant financial incentives be put in place for basic research, including to develop a greener aircraft...
This is what I just talked about.
This same recommendation requests the following:
That the Government of Canada promote a circular economy approach in order to establish a policy for recycling aircraft that are taken out of service.
We are currently conducting another study on plastics and battery recycling. All of these elements must be integrated with one another. Of course, we did not think about it as much when we started talking about electric vehicles. This will be another very important aspect in terms of pollution. It is one thing to collect all the raw materials to make batteries, but it is quite another to dispose of them after they have been used, and recycle them to make other batteries that can be used in other sectors, or even in the auto sector. It will be the same with aircraft, and we have to start thinking about it now.
I will read another of the recommendations, which I think is one of the most important ones:
That the Government of Canada...develop a national strategy for its aerospace sector.
A national strategy would essentially bring together all the players, not only in Quebec, but across Canada, to push us even further in terms of what we can achieve in this industry. Obviously, we are talking about airplanes, but aerospace is much broader than that. It includes a whole sector of activity, essentially anything related to the sky.
I think we need to do better and do more for the aerospace industry and more for Quebec. We know that aerospace is especially important in Quebec, just like the auto industry is important in Ontario, as I was saying earlier, and vineyards are important in British Columbia. I am sure my colleague will get into that. We have everything to gain as a country from developing this industry even better and regulating it even better.
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- Apr/20/23 11:18:33 a.m.
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Mr. Speaker, I understand my colleague's question, that the pandemic had a global impact on the industry. The impact in Canada is even greater. The Canadian industry is so developed that we are not only supplying aircraft to Canadian companies such as Air Canada, WestJet and others, but we are selling aircraft, and aircraft engines and parts around the world. Obviously there was an impact.
My colleague's question is interesting because he talked about the automobile sector. He said that this had repercussions across Canada, which seems obvious to me. In my riding, there is a company called Liberty Spring. It supplies half the shocks of all the vehicles built around the world. We can be extremely proud of that kind of business. Its headquarters are in Montmagny, in my riding. I am a business owner myself. We can be proud of what business owners have done to develop this industry for over a century now in Quebec and Canada. The same goes for the auto industry. These industries are not in competition, and we should not frame them as such.
We all have to work together in this country.
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- Apr/20/23 11:21:12 a.m.
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Mr. Speaker, I must lower the member's expectations. I am far from being appointed minister. We are far from that. Actually, only one person can do that in a government, and that is the Prime Minister himself. The member is right to say that the Prime Minister is waiting. We hope he will not be waiting too long. The future Prime Minister of Canada is sitting on this side of the House.
He was once a member of the Standing Committee on Industry and Technology. One thing is certain, we will make sure that the aerospace industry as a whole can continue to grow as robustly as possible, not only in Quebec, but right across the country.
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- Apr/20/23 12:07:02 p.m.
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Madam Speaker, I rise today to speak to the report entitled “Development and Support of the Aerospace Industry”, which was tabled in the House of Commons on June 16, 2022.
Let me first say that I very much value the aerospace industry. The industry is critical to Canada.
Before I continue, I will be sharing my time with the member for Lac-Saint-Louis.
As I was saying, I value the aerospace industry because it is critical to Canada. It is also critical to my own home province of Nova Scotia, where IMP Aerospace & Defence is located. It is a proud Canadian organization that employs over 2,400 people across Canada in all areas of aerospace and aviation. It employs over a thousand people in my province of Nova Scotia and close to 100 in my riding of Halifax West, so one can see the importance of that industry right in my backyard.
I want to underscore the importance of the aerospace sector. This sector provides jobs, draws talent and contributes significantly to the economy of Quebec, Canada and Nova Scotia.
The aerospace sector provides jobs and talent and contributes significantly to our economy.
I want to talk about the aerospace industry and the support the federal government has provided to this sector and these workers since taking office in 2015.
The Government of Canada appreciates the committee's work and welcomes the testimony and recommendations it received from the aerospace industry in March 2021, as reflected in the committee's report entitled “Development and Support of the Aerospace Industry”.
The aerospace industry in Quebec and Nova Scotia is a vital part of the economy, and the government recognizes the extraordinary contributions this sector has made. We recognize, of course, that this is one of the most innovative and export-driven industries in Canada.
The COVID-19 pandemic and subsequent decline in global air travel has had a significant and lasting impact on the industry. Indeed, the global decline in commercial and business air travel has resulted in significant reductions in demand.
The reduction has been in the demand for aircraft, for aircraft maintenance and for parts.
In fact, in 2021, the Canadian aerospace industry, comprising the aerospace manufacturing and maintenance, repair and overhaul sectors, contributed over $24 billion in gross domestic product to the Canadian economy and nearly 200,000 jobs. This is a decrease of $0.9 billion in GDP and 7,300 jobs since 2020, and a total decrease of $9.4 billion in GDP and 35,200 jobs since the prepandemic levels of 2019.
The global industry has been gradually recovering from the pandemic over the past year, and Canada's aerospace manufacturing revenues declined at a significantly slower rate in 2020-21 compared to 2019-20, and at an even slower rate in 2021-22.
Moreover, despite the challenges, Canada's aerospace industry continued to rank first in research and development among all Canadian manufacturing industries in 2021, with investments totalling $934 million, as well as in its position as a world leader. In the production of civil flight simulators, we were first in the world. For civil engines, we were third in the world, and we were fourth in the world for civil aircraft.
The Canadian aerospace industry is expected to be well positioned for the recovery due to its diverse product portfolio, including a strong focus on regional business aviation.
The government's response tabled in the House last year outlines the government measures designed to respond to the committee's recommendations. They are organized into four categories.
I look forward to speaking, during questions and answers, on those four categories.
The first category is financial support, both direct and for research and development. The second is support for skills development and training. The third is support through procurement and the fourth is support through strengthened regulations.
Under each category, the government response highlights which committee recommendation is being addressed and provides examples of programs and initiatives to support Canada’s aerospace sector.
I want to take the last little while to thank the aerospace industry and highlight the impact that the industry has had on my own province of Nova Scotia. At the beginning, I spoke about IMP Aerospace & Defence, a proud Canadian organization that really has great local roots in my own backyard in Nova Scotia.
Last year, a number of my Nova Scotian colleagues and I had the opportunity to tour the hangar at the Halifax Stanfield International Airport. We met with employees working, maintaining and upgrading planes and helicopters used in search and rescue operations to extend their lifespan. We spoke directly to them and to the executive there. These are great-paying, middle-class local jobs for people who live in our communities.
I will highlight one person in particular because he stuck out in my mind. I do not believe I ever met him before, but his name was Mr. Keith Toon. He recognized my name through one of my daughters who plays soccer. She started playing soccer before she was five years of age. He was a soccer coach for decades. My daughter grew up to be a competitive soccer player, ending up playing university soccer; she is now on the women's soccer team.
What I am saying is that this highlights the significance of these employees and others working in these good jobs in our own communities. They are doing great work by volunteering and giving back. Yes, the aerospace industry is very critical in our province and in our country.
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- Apr/20/23 12:18:08 p.m.
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Madam Speaker, I really appreciate my colleague from Longueuil—Saint‑Hubert. We worked together in the area of francophone affairs. I am very proud to be in the House with him this morning and to answer his question. I know that he is a proud Quebecker.
The Government of Canada looks forward very much to working with all colleagues from Quebec and those from all the other provinces in the House of Commons.
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- Apr/20/23 2:03:01 p.m.
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Mr. Speaker, today I want to pay tribute to a great constituent and a great Quebecker. I recently had the pleasure of bestowing, with my own hands, an honorary plaque acknowledging the full life and career of Yves Michaud.
Originally from Saint‑Hyacinthe, he cut his teeth as a war correspondent and editorial writer at Clairon de Saint‑Hyacinthe. As such, he was a pioneer in the fight against obscurantism. He then became an MNA with the party of the Quiet Revolution, founder of the newspaper Le Jour, which published separatist ideas, diplomat as the delegate general of Quebec in Paris, president and CEO of the Montreal convention centre, precursor of the discovery of good French wine in Quebec and crusader against the abuses of powerful financial corporations as the “Robin Hood of the banks”.
Yves Michaud has conducted his entire life as an unwavering patriot and a proud separatist. He deserves our utmost appreciation and honours from every Parliament.
Thank you for everything, Mr. Michaud.
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- Apr/20/23 2:53:33 p.m.
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Mr. Speaker, a lot of people in the House wonder what interests members of the opposition.
In my opinion, there is at least one thing that should interest them. I am referring to the huge, fantastic announcement made a few weeks ago at the Davie shipyard, in the greater Quebec City area. I know that my colleagues from across Quebec, including my Conservative colleagues, will realize what a game-changer the creation of a major international shipbuilding hub will be for the economy, the industry and the technological environment of the greater Quebec City region.
I am sure that even my Conservative colleagues I see here in the House ought to be delighted by this announcement.
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- Apr/20/23 2:54:12 p.m.
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Mr. Speaker, Quebec was already outraged to see Ottawa offer Boeing a $9-billion contract for military aircraft without a call for tenders and without a penny in spinoffs for Quebec.
However, it is worse now that we know that the American jets that Ottawa wants to buy are lemons. According to La Presse, the U.S. defence department itself has said that there are so many issues with the Poseidon P‑8As that they were in for repairs half the time from 2018 to 2020.
We will not pay $9 billion for American lemons when we can build better aircraft in Quebec. When will the government hold a real call for tenders?
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- Apr/20/23 2:54:54 p.m.
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Mr. Speaker, I want to thank my colleague for his question.
On this side of the House, we all recognize the importance of the aerospace industry across the country, particularly in Quebec.
I have been in contact with Bombardier executives, and everyone in the House agrees that Bombardier is a leading Canadian company that we can all be proud of. We were there for Bombardier at every opportunity, and we will always be there for Bombardier, both now and in the future.
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- Apr/20/23 2:55:25 p.m.
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Mr. Speaker, that was not particularly convincing.
To sum up, Ottawa is pushing aside Quebec's expertise and opting for American planes that even the Americans do not want. This is high treason towards our aerospace industry. Quebec has all the components to assemble an aircraft from A to Z. Ottawa does not have the right to offer Boeing $9 billion of taxpayers' money without a call for tenders, especially for planes that do not even meet the maintenance criteria.
Will the government back down and issue a real call for tenders? That is basic common sense.
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- Apr/20/23 2:56:02 p.m.
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Mr. Speaker, on this side of the House, we will never back down. We will always push to defend Quebec's aerospace industry. I think my colleagues are clear on that.
As I was saying to my colleague, we are in touch with the aerospace industry, we are in touch with Bombardier.
My colleague left out part of the story. Not too long ago, alongside the Quebec government, we announced the largest aerospace investment ever in Canadian history. There is plenty to celebrate in the aerospace industry. We will always be there for the workers.
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