- Member of Parliament
- Member of Parliament
- Liberal
- Nepean
- Ontario
- Voting Attendance: 67%
- Expenses Last Quarter: $104,578.46
- Government Page
- May/10/24 12:25:24 p.m.
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Mr. Speaker, the legislative agenda sometimes moves at its own pace, but the key thing is that the measures we have taken since the last fall economic statement and the budget that we announced have already started yielding results. Today, Statistics Canada came out with a report that shows a gain of 60,000 jobs against an expected gain of just 20,000 jobs. The unemployment rate has actually remained steady at 6.1%.
As I have been saying for the last 11 to 12 months, the interest rate will start getting reversed about the middle of this year. The Bank of Canada has already indicated that inflation is coming down. I think it is around 2.9%. It is within the Bank of Canada's range.
With the economy showing progress, we have achieved a soft landing, which many predicted would not happen. Rather, many had predicted that we would go into a recession, which has not happened. It does not matter when it is getting implemented. The effects of our measures have already started yielding results.
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Madam Speaker, I am pleased to speak on Bill C-59, an act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023, and certain provisions of the budget tabled in Parliament on March 28, 2023. The bill would advance the government's economic plan to make life more affordable, build more homes faster and build an economy that works for everyone.
To build an economy that works for everyone, the bill delivers critical pieces of our fall economic statement. It would help make life more affordable. We are rolling out new measures to strengthen our economy, combat climate change and forge excellent career opportunities for Canadians, now and in the future.
The Liberals' plan is already yielding results and we continue to push forward. We are advancing Canada's clean economy with a clear timeline for deploying all investment tax credits by 2024. We are launching the Canada growth fund as the primary federal issuer of carbon contracts for difference. We are progressing the indigenous loan guarantee program.
Canada's economic prosperity increasingly depends on a focused strategy to boost growth, particularly in a globally competitive environment. The nation's future success relies on enhancing productivity, innovation and investments in pivotal sectors, such as technology, clean energy and advanced manufacturing. These fields are vital not only for generating high-quality jobs but also for maintaining Canada's competitive edge internationally.
Additionally, empowering small and medium-sized enterprises with supportive policies and tax benefits is crucial to foster entrepreneurship and economic expansion. Equally critical is attracting and retaining top talent. Policies that encourage skilled immigrants to settle in Canada, coupled with significant investments in the education and training of Canadians, are essential to develop a workforce capable of leading in a high-tech, competitive global market.
Canada stands out among G7 countries for maintaining the lowest deficit and net debt-to-GDP ratios, showcasing exceptional fiscal management. This indicates a more sustainable economic position compared to other G7 countries like the U.S., U.K., Germany, France, Italy and Japan, which generally face higher debts and deficits relative to their GDPs.
This fiscal prudence in Canada supports economic stability and investor confidence. Canada's strategic financial policies enable it to better manage economic fluctuations and invest in future growth.
Among G7 nations, Canada's credit rating is ranked near the top. Major credit rating agencies frequently cite Canada’s prudent fiscal policies, low debt-to-GDP ratio and robust institutional framework as key factors supporting its high rating. This strong credit status enhances Canada's ability to attract foreign investment and borrow at lower interest rates, significantly benefiting the economic environment relative to other G7 countries.
On advanced technologies like artificial intelligence, our approach in promoting reflects a robust and proactive strategy aimed at both fostering innovation and ensuring responsible development within the sector. Canada is globally recognized for its influential role in the artificial intelligence sector, distinguished by its significant contribution to AI research and development.
The nation's focus on AI underscores its dedication to technological progress and strategic economic integration. Leading the way in AI innovation are Canadian universities and research centres, which are vital in producing cutting-edge research and attracting international talent. AI's relevance to the Canadian economy is substantial, serving as a key economic engine.
This is supported by major governmental investments, including the $2-billion artificial intelligence compute access fund and the Canadian sovereign compute strategy, aimed at equipping Canada with the infrastructure and resources needed to sustain its competitive advantage in this critical field.
Artificial intelligence technologies in Canada find applications across diverse sectors, such as health care, environmental protection, agriculture, manufacturing and finance, promising to elevate productivity, competitiveness and job quality. For the companies in these sectors to adapt these AI technologies in their operations, we have provided $200 million. By proactively enhancing its AI ecosystem, Canada not only bolsters its global stature but also secures its economic future, positioning AI as a fundamental pillar of its national strategy for long-term growth and innovation.
Canada is strategically established as a significant contributor to the global supply chain for the critical minerals necessary for manufacturing advanced batteries in electric vehicles and energy storage systems. The country's abundant resources of lithium, cobalt, nickel and graphite make it a key player in the clean energy transition.
In response to the growing importance of these minerals for the global economy and environmental sustainability, we are actively expanding our mining and refining capabilities. This enhancement not only meets domestic demands for EV production but also serves international markets, especially those transitioning to greener technologies. We support this sector with favourable policies, substantial investment and collaborations with private companies and international partners. These initiatives aim to create a secure, sustainable and competitive supply chain that utilizes Canada’s natural resources responsibly.
Additionally, we prioritize partnerships with indigenous communities in mineral resource development, promoting inclusive growth and sustainable practices, thereby reinforcing Canada's reputation as a reliable and ethical source of critical minerals internationally. We are also promoting “one project, one environmental impact assessment” to speed up the implementation of projects.
Our strategic focus on economic growth ensures the sustainability of social programs and the continuation of high living standards amid an uncertain global landscape. After a contraction of 0.1% in the third quarter of 2023, Canada's GDP rebounded with 0.2% growth in the fourth quarter. In February, Canada's inflation rate was 2.8%, down from 2.9% in January. It rose slightly to 2.9% in March, roughly in line with the Bank of Canada's forecast.
Statistics Canada reported today that the economy added approximately 90,000 jobs, far exceeding the anticipated 20,000 positions. This marked the most robust month for job creation since January 2023. Nevertheless, the unemployment rate remained constant at 6.1%. These figures indicate that employers are ready and capable of hiring additional staff, despite the economic challenges posed by increased interest rates.
Bank of Canada governor Tiff Macklem has mentioned a possible rate reduction as soon as June. I have been saying for the last 12 months that we will see interest rate reversals starting mid-2024. Recent months have seen quicker-than-expected easing of price pressures, boosting the Bank of Canada’s confidence that inflation is returning to target levels.
The current high interest rates, which aim to curb borrowing and cool inflation by making debt more expensive, may not need to be maintained much longer. We are achieving a soft landing of the economy, though many had predicted we would fall into recession
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- Apr/30/24 1:32:50 p.m.
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Madam Speaker, the hon. member talked on many points, but he forgot to mention the one key thing for Quebec, and that is the knowledge-based sector in Quebec and Montreal. For example, the Montreal-based artificial intelligence industry is leading the world. This budget, to give a couple of examples, would provide $2 billion toward the AI compute access fund and $200 million to help sectors like agriculture, manufacturing and minerals to use artificial intelligence in their operations.
Does the member not recognize that this budget would provide for the growth of Quebec's knowledge-based economy and knowledge-based corporate sector so it can be a leader in technology in the world?
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- Apr/30/24 11:14:32 a.m.
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Mr. Speaker, my hon. colleague has covered many important points that are in the budget. I would like to ask him to comment on the things that this budget would do to spur the economic growth of Canada and how this budget would provide investments in advanced manufacturing and advanced technologies, like artificial intelligence, so that Canada continues to be ready for the new knowledge-based economy that is happening in the world today.
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- Apr/18/24 12:44:19 p.m.
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Madam Speaker, I will be sharing my time with the member for Milton.
I entered politics with three main objectives: first, affordable housing for all Canadians; second, provide secure retirement income security to 11 million working Canadians without workplace pensions; and third, ensure Canadian society and the economy remain robust and competitive in the global knowledge-based economy thus securing prosperity for our children and grandchildren.
On my first objective, in the budget, we have announced tremendous investments for housing, continuing our focus on what we had earlier introduced, the national housing strategy. On my second objective, we have reformed the Canada pension plan to secure retirement income for Canadians, and we have also introduced various targeted programs to support seniors. On my third objective on securing Canada's position in the changing global knowledge-based economy, we have redoubled our efforts through this budget.
Canada has been the best country in the world because of our rich natural resources like oil and gas, minerals and metals, strong agricultural sector, and the hard work of several generations of Canadians, including the present day seniors. However, there are major changes happening in the global economy that have a direct impact on the Canadian economy, which have consequences on Canadian prosperity.
Globalization as we knew it for last several decades has disappeared. Now we are moving toward onshoring, nearshoring and friend-shoring. The world is in this great transition phase and Canada has to act fast to secure our place in the new global economic order.
We foresaw this coming and hence adopted policies to strengthen our manufacturing sector and focused on the knowledge-based sector. We have made, and continue make, major investments in many economic sectors, including the manufacturing sector and sectors focused on advanced technologies.
Before I continue on the budget focus of advanced technologies, including artificial intelligence, let me first note few points.
In the fall, we set three very specific fiscal guideposts. In this budget, each one of the three objectives we set last fall are being met and so is our fiscal anchor, with a declining federal debt-to-GDP ratio over the medium term. In fact, Canada has the lowest deficit-to-GDP ratio and net debt-to-GDP ratio in the G7, and we continue to maintain our AAA credit rating. We have a vision for Canada’s future that is innovative, inclusive and industrious.
I wish to highlight the critical role that innovation and advanced technologies play in shaping the future of Canada’s economy. In a world that is rapidly transforming through technological advancements, it is imperative that Canada not only keeps pace but leads the charge in the global innovation race. Innovation is the cornerstone of economic resilience and growth. It drives productivity, creates high-quality jobs and fosters competitive industries.
Through advanced technologies, we can solve some of our most pressing challenges, from climate change to health care, and enhancing the quality of life for all Canadians while ensuring sustainable development. Canada’s commitment to technological advancement is evident in our strategic investments in sectors like artificial intelligence, quantum computing and clean technology. These sectors are not merely areas of academic interest; they are the engines of our future economy. By investing in these areas, we are setting the stage for a new era of industrial and technological leadership. Advanced technologies also bring tremendous economic benefits. They open up new markets, enable Canadian businesses to compete globally and attract foreign investment.
Every dollar invested in innovation multiplies across the economy, generating wealth and opportunities that extend through every province and sector. Moreover, the adoption of these technologies ensures that Canada remains a desirable destination for talented innovators and entrepreneurs from around the world. By embracing advanced technologies, we are building a robust ecosystem that nurtures creativity and turns innovative ideas into tangible solutions that benefit society as a whole.
As an example of our commitment, let me mention a subject that stands at the very heart of our future economic prosperity and global leadership, artificial intelligence, or AI. Our nation has already made significant strides in this field and it is crucial that we understand and support the ongoing efforts and strategic investments that will solidify Canada's position as a world leader in AI technology.
Since 2017, we have dedicated over $2 billion to nurture our AI ecosystem, establishing Canada as a beacon of innovation and expertise in the global arena. This dedication has borne fruit in numerous ways. We are globally recognized for our strong AI talent, research capabilities and a rapidly growing AI sector that leads the G7 in several key metrics, including the growth of women in AI and year-over-year growth of AI talent.
Our researchers and companies have not only kept pace but have set international benchmarks, publishing more AI-related papers per capita than any other G7 country since 2019. Our AI firms are also at the forefront of innovation, filing patents at three times the average rate in the G7 and attracting a significant portion of venture capital in Canada. Last year alone, the number of actively engaged AI professionals in Canada grew by 29%, underscoring a vibrant and expanding workforce dedicated to advancing this technology.
However, our ambition does not stop with past successes. Recognizing the transformative potential of AI, we have launched pioneering initiatives like the world’s first national AI strategy, the pan-Canadian artificial intelligence strategy, yet we face challenges that could stymie our progress.
Currently, most advanced computing capacity, which is crucial for AI development, is located outside Canada. This not only slows down our research and innovation, but also poses security risks and dependencies on foreign technology. To address these challenges and propel us forward, budget 2024 announced a historic investment in AI, $2.4 billion targeted at enhancing our AI capabilities. This includes $2 billion for establishing the AI compute access fund and the Canadian AI sovereign compute strategy, which aims to catalyze the development of Canadian-owned AI infrastructure and reduce our reliance on external resources. An additional $200 million will support AI start-ups and accelerate AI adoption in crucial sectors like agriculture, health care and manufacturing.
It is only through our collective effort and shared vision that we can realize the full potential of AI and secure Canada’s advantage on this critical frontier.
The importance of innovation and advanced technologies to Canada’s economy cannot be overstated. As we look forward, let us continue to invest in the technologies of tomorrow and ensure that Canada remains at the forefront of global innovation. Let us be bold in our ambitions and steadfast in our commitment to a prosperous, technologically advanced Canada.
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- Apr/18/24 12:05:50 p.m.
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Mr. Speaker, the member mentioned the fiscal issues. I would like to remind him that Canada has the lowest deficit-to-GDP ratio and lowest net debt-to-GDP ratio among all the G7 countries. In fact, Canada not only has a AAA credit rating, but it is also one of only two G7 countries that has a AAA rating from two of the three independent credit agencies.
Quebec has shown the solid move from the carbon-heavy economy to a clean economy. Quebec has very advanced manufacturing and knowledge-based companies. Does the member not recognize the importance this budget has given to knowledge-based companies and specifically how it would help Quebec companies, for example in artificial intelligence, with a $2-billion fund for the AI compute access fund, $200 million for artificial intelligence start-ups, and help for crucial sectors, such as agriculture, health care and manufacturing, to adopt artificial intelligence?
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- Feb/8/24 4:45:39 p.m.
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Madam Speaker, I am sure the hon. member understands the importance of immigrants for the economic development of Canada, whether it is in the housing sector, the manufacturing sector or the tourism sector. I would like to ask her whether she recognizes the need for more skilled immigrants in the country for Canada to keep up its economic growth and improve the growth of the economy?
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- Nov/29/23 5:55:01 p.m.
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Madam Speaker, we have signed many free trade agreements across the world, covering about 61% of the world's GDP. If there is one Canadian sector that uses all these free trade agreements, leverages them and takes advantage of them to export, it is the Canadian agriculture and agri-food sector, which has made Canada the fifth-largest exporter in the world. I agree with the hon. member that we need more processing in the manufacturing sector than in the last 20 years across our economy. The share of our manufacturing sector is going down.
One of the problems I hear from entrepreneurs who want to set up processing facilities is that we do not have the skilled workers available to work in processing facilities, from maintenance technicians to skilled workers to production workers. Does the member agree with this assessment?
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Madam Speaker, our budget has made it very clear that the investments we are going to make will be in companies that lead to the clean economy of the future. That has been made very clear and we will continue to stand by it.
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- Apr/18/23 12:51:26 p.m.
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Madam Speaker, Canada has made a remarkable recovery from the COVID recession. Canada’s economic growth is the best among the G7 countries. About 830,000 more Canadians are employed today than before the pandemic. Inflation has been falling for the last eight months. Our unemployment is at a record low, and in February, we had labour force participation for women aged 25 to 54 at a record high of 85.7%.
However, we also face many challenges. As we know, globalization is winding down. We see a sort of Cold War-style era returning to the world now. The unipolar world is no more. It is bifurcating into a bipolar or even a tripolar world. Multilateral agreements that were the basis for global trade are also taking a back seat, with the WTO Appellate Body almost unable to function because of vacancies that are not filled because of issues related to some major countries. What we are seeing now, more than bilateral trade agreements, are free trade agreements among blocs of countries; we are also seeing more friendshoring. In fact, this concept of friendshoring is just starting up.
While it is a challenge, this is also an opportunity for us. Protectionism is growing. This is not just from the traditional countries that were practising protectionism, such as developing countries; rather, protectionism is also growing in developed countries, especially countries like the United States.
A few years back, in this chamber, I talked about the importance of artificial intelligence and how that technology will not only affect the corporate sector and the economy but also the entire society. We are already seeing the impact of artificial intelligence and technologies like robotics and automation on this society.
I will be sharing my time with the member for Richmond Hill.
The budget talks about transforming challenges into opportunities. It mentions a need for investment to manage the structural changes, which will not be limited to one sector or one aspect of the economy. Broad-based investment will be required to grow our economy and create good middle-class jobs in the years to come. The scale of required investment is massive, and the private sector alone is unlikely to mobilize the level of capital required in Canada at sufficient speed. However, although we say the private sector alone cannot mobilize, it is expected to invest about $100 trillion in the global clean economy between now and 2050.
Many of the investments that need to be made will stretch over decades and involve high upfront costs, and that is where governments come in. Moreover, key sectors and technologies will have significant spillover effects by driving development of related industries. For example, fundamental inputs to clean production and the production of clean technologies, such as electricity; critical minerals; and carbon capture, utilization and storage, will provide foundations for an expanding clean economy. For related sectors, such as hydrogen and clean manufacturing, this will boost their productivity, support their resilience and help generate new middle-class jobs. Private investment decisions may not take full account of these spillovers, and this increases the risk of underinvestment.
Without the right policy framework, as stated in the budget 2023 document, Canada could see underinvestment in critical areas and a slow pace of innovation in new clean technology. Together, these factors would result in Canada falling behind the United States and other countries that are moving forward aggressively to build their clean economies, create middle-class jobs and ensure more prosperous futures for their people.
Canada must act decisively to ensure that it remains the location of choice for new investment in these sectors, particularly in the face of the U.S.'s recent passage of the Inflation Reduction Act. In addition to this act, we have to take notice of the U.S.'s CHIPS and Science Act, a $280-billion act. It will not only focus $80 billion on the manufacturing of semiconductors in the United States but also invest in around 20 technology centres focusing on advanced technologies, from transition energy and biotechnology to others.
This combination of the IRA and the CHIPS and Science Act is called a once-in-a-lifetime, once-in-a-generation policy of the United States. It has fundamentally rewritten the entire industrial policy of the United States.
We also have to consider the friendshoring that the U.S. is emphasizing now. That is a challenge for many countries in the world, but it creates opportunities for Canada that we are already seeing in the critical mineral sector. I will talk about this in a minute.
Budget 2023 proposes substantial measures as the next steps in the government's plan to “crowd in” new private investment by leveraging public investment and government policy. The goal of this approach is neither to substitute government for the private sector nor to supplement market-based decision-making. Rather, it is to leverage the tools of government to mobilize the private sector.
This approach is not about the government picking individual corporate winners in an effort to engineer a preferred vision for the economy in 2050. That approach did not work in the past, and it is even less likely to work in today's environment of rapid technological change. The tax incentives and investment supports proposed in budget 2023 are designed to set a framework for boosting overall investment while leaving the private sector to determine how best to invest based on market signals.
Canada has been rich and prosperous because of the natural resources we have and the hard work of several generations of Canadians, including present-day seniors. However, the future is changing with the digital economy and the new technologies that are coming up. We have an opportunity, in these challenging times, to invest and grow. One growth aspect is the critical minerals, which are very important for the clean economy that is being envisaged all around the world.
Before touching on that, I just want to mention two fundamental challenges. The first is that many of the investments that will be critical for the realignment of global supply chains and a net-zero future are large-scale, long-term investments. The second challenge, as I have already mentioned, is the U.S.'s IRA, with the related CHIPS and Science Act.
In budget 2022, last year, we committed $3.8 billion to Canada's critical mineral strategy. In March of this year, last month, the government launched the critical minerals infrastructure fund, announcing that this new fund will allocate $1.5 billion towards energy and transportation projects needed to unlock priority mineral deposits.
In addition to this funding, the federal government is entering into bilateral agreements with various provinces. Recently, we signed an agreement with Ontario, what we call the “Ontario table,” where the federal government and the province committed to work together to align resources and timelines and to have a common regulatory approach to promoting the critical minerals required for a clean economy.
I also have to mention that although we have critical minerals and announced investments, and although we have already attracted investments in battery manufacturing and electrical vehicles manufacturing, we still have the stumbling block of the long regulatory processes that are required to see a critical mineral mine start and become operational.
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Madam Speaker, there are a lot of things that overlap all three pieces of legislation that put them under one bill, especially artificial intelligence, which goes beyond one particular domain. It acts on almost every aspect of the Canadian economy and of Canadian society, and it permeates almost everything else it touches. That is the reason the government has brought in one single piece of legislation.
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Madam Speaker, I would like to speak to the investments mentioned in the budget that we are making in the defence and security of our country.
Before I get into specific issues, I would like to mention two things: first, the importance of defence and security industries from the economic point of view; and, second, how Ottawa, as a city, is very well placed to be the hub of companies involved in the ISR, intelligence, surveillance and reconnaissance, segments of the defence and security industries.
The Canadian defence and security industries are an essential service and a critical sector in Canada’s economy. These companies are highly innovative, export intensive and provide high-wage employment. These companies export 54% of their total sales. These companies provide employment to 64,000 people whose salaries are about 60% above the average Canadian manufacturing salaries.
During the last couple of decades, we have seen most of our manufacturing jobs outsourced to low-cost manufacturing countries across the world, but the jobs and manufacturing facilities of Canadian defence and security industries will never be outsourced. Also, for the U.S. defence purchases, which run into hundreds of billions of dollars every year, Canadian companies are considered to be U.S. domestic companies, offering a huge advantage to the Canadian defence and security industries.
Ottawa, as a hub, can be home to ISR companies, similar to hundreds of small companies around Washington, D.C. and the Annapolis beltway. Also, we are just few hours away from the centre of defence establishment in the U.S. We already have several companies in defence and security industries in Ottawa today. We also have Defence Research and Development Canada. Decision-makers on technology and procurements are also located here. All of these make Ottawa an ideal location for promoting it as the hub for ISR industries.
Canada is geographically well placed, with the powerful and friendly United States as our neighbour, who also is our major economic partner. The physical security threats to the country from outside our borders are minimal, and Canada was never worried much about physically protecting our land.
National defence is a fundamental responsibility of the federal government. In addition to protecting Canada from international threats and defending our sovereignty, the Canadian Armed Forces play an important role in making the world a safer place.
Budget 2022 recognized those challenges and proposed new action to respond to them. It invested in Canada’s defence capabilities, and in the alliances that will ensure a strong and coordinated global response to the ongoing challenges that the world faces today. Based on recent events and the changing global environment, the government acknowledged the requirement to reassess Canada’s role, priorities and needs in the face of a changing world.
Budget 2022 announced a defence policy review to allow Canada to update its existing 2017 defence policy, “Strong, Secure, Engaged”. In my view, merely updating the current policy is not enough. There has been a paradigm shift in the kinds of threats facing our country.
First, we have cybersecurity threats, including those that come from foreign actors, that target Canadians, Canadian businesses and our critical infrastructure. As Canadians grow more dependent on digital systems, the potential consequences of cyber-incidents continue to increase, and Canada needs to be ready.
Second, we have the spread of misinformation and disinformation that is directly challenging the stability of even the most long-standing democracies. Foreign threats to democracy, including state-sponsored disinformation, which is misinformation that is deliberately targeted to deceive people, have continued to grow amidst rising geopolitical tensions, a global pandemic and the rapid evolution of technology.
Third is biological threats that know no boundaries. The nature and severity of biological threats has grown in recent years. The COVID-19 pandemic has highlighted the potentially catastrophic impacts of a deliberate biological event. Concerns are growing that the pandemic's unprecedented scale and reach could inspire terrorists to turn to biological weapons. United Nations Secretary-General Guterres has understood this threat. He warned:
The weaknesses and lack of preparedness exposed by this pandemic provide a window onto how a bioterrorist attack might unfold – and may increase its risks. Non-state groups could gain access to virulent strains that could pose similar devastation to societies around the globe.
The threat due to domestic terrorism is on the rise due to increasing hate and due to the spread of misinformation and disinformation. During the latest occupy movement, the cross-border connections between the extremist groups were alarming. Based on these threats, in my view, merely updating the current policy is not enough. We need a change in our approach to national security. We need a unified approach to defence. We need a unified approach between all government departments to seamlessly share the information for a unified response. We need a unified command to address the modern needs of security.
The existing policy document, “Strong, Secure, Engaged”, stated:
This policy is deliberately ambitious and focuses, first and foremost, on the heart of the Canadian Armed Forces – the brave women and men who wear the uniform.
We know how this worked out.
The document was geared more toward the big-ticket items like ships and fighter aircraft, which, while important, do not address the major threat that Canada and Canadians are facing.
In the current policy document, “Strong, Secure, Engaged”, which is 113 pages long, the word “misinformation” is mentioned only once. Similarly, the word “disinformation” is also mentioned only once. Also in this policy, the investment in cybersecurity was under “Joint Capabilities”. It was grouped with IT and communications, signal intelligence, chemical, biological, radiological, nuclear and explosive detection and response capabilities. All of these had just a $4.6-billion investment over 20 years out of about $164 billion in proposed spending.
We should stop saying threats involving guns and bullets or ships and fighter planes from foreigners invading our land and sea are the only responsibility of the Canadian Armed Forces; or that cybersecurity threats are the responsibility of the Communications Security Establishment alone; or that biological threats should be handled by the Public health Agency of Canada and the Canadian Armed Forces role is limited to providing a few medics; or that threats posed by misinformation and disinformation are the responsibility of maybe Canadian Heritage or the Canadian Security Intelligence Service; or that the threat from domestic terrorism is the responsibility of the RCMP, CSIS and local law enforcement agencies.
We should stop compartmentalizing the threats and divide the responsibility. We need to act cohesively.
We need generals who have a Ph.D. in artificial intelligence and other leading technologies. We need generals with a Ph.D. in biology. We need to completely start afresh and come up with a comprehensive strategy and policy. The existing policy document “Strong, Secure, Engaged” focused on a $164-billion investment in procurement of traditional assets and tools, including ships, fighter aircraft, etc.
When we review this policy, it may be a good idea where the new high-technology companies are going. As an example, a Silicon Valley company called Anduril is succeeding commercially in transforming the U.S. and allied military capabilities with advanced technology. It says that the next generation of military technology will depend less on advances in shipbuilding and aircraft design than on advances in software engineering and computing. Unlike traditional defence contractors who focus primarily on hardware, its core system is an autonomous sense-making and command and control platform that serves as the core platform for its suite of capabilities.
Ideas are turned into deployed capabilities in months, not years, saving the government and taxpayers money along the way. The company combines military veterans with engineers who are experts in artificial intelligence, robotics, advanced sensors, secure networking, aerospace, virtual reality technology, aircraft modelling and simulation. We should look at companies like this to see what is happening elsewhere and where the defence systems are going.
I would like to quote extensively from the report, “A National Security Strategy for the 2020s”, prepared by the Task Force on National Security and the University of Ottawa’s Graduate School of Public and International Affairs.
It said:
We are living in a time of intense global instability when the security of Canada and other liberal democracies is under growing threat. An increasingly aggressive Russia is only one of a series of threats, both old and new, that endanger national security in Canada. It exemplifies the worrying re-emergence of great-power rivalry. It also interacts with or amplifies other threats, such as the use of new technologies to wage cyber-warfare, an increase in ideological extremism at home and abroad, attacks on democratic institutions, and transnational threats such as climate change and pandemics. We witnessed a different constellation of such threats in the protests that blocked border crossings and disrupted Canada's capital in early 2022. Where once the state was the focus of these threats, individuals and societies have also become targets.
When these and other threats reach the scale and potential to endanger what matters most to us as a country - our people, our democratic values and institutions, our economy, our society and our sovereignty - Canadians expect their government to protect them. Yet Canadians and their governments rarely take national security seriously. Taking shelter under the American umbrella has worked well for us.... We have not experienced a direct violent attack against our citizens in recent memory on the same scale as some of our allies, with the last major one being the Air India attack of 1985. This has made us complacent and paved the way for our neglect of national security....
Our peers, including our partners in the Five Eyes partnership (Australia, New Zealand, the United Kingdom, and the United States) are reacting to this rapidly changing situation by revamping policies, identifying new tools and authorities, reforming institutions, devoting new resources to security and seeking new partnerships. They possess not only a deeper appreciation of the threats facing the West but also a more sophisticated national security culture writ large.
The report makes the case that Canada is not ready to face this new world. As a country, it says we urgently need to rethink national security.
The best part of the report is that the core recommendations do not require massive amounts of new spending, but, rather, focus on making better use of the tools we already have and improving co-operation among key partners.
The report makes recommendations in four broad categories.
Number one is to develop new strategies. Canada needs a national security strategy that reflects today’s realities. We can no longer count on some of the traditional pillars that have guaranteed our security and prosperity for decades. The essential first step is to hold a public review of national security. A thorough and transparent review would help inform the public, highlight priorities, identify the policies and tools required to address them, and point to the required changes to governance. In reviewing its national security strategy, the government should also take a hard look at whether its foreign, defence and development policies are adequate. This does not mean an isolated update in each case, but a holistic approach that examines all our national security assets in a coordinated fashion.
Number two is to strengthen existing tools and create new ones. Canada must build new tools and make better use of existing ones to deal with this diversifying and intensifying range of threats. More specifically, Canada should invest more in the following areas: sharing information within government, sharing information with other levels of government, reviewing outdated legislation, enhancing the use of open-source intelligence, strengthening cybersecurity, protecting economic security, guarding against foreign interference, and deterring organized crime and money laundering.
Number three is to enhance governance. Canada needs to rethink its national security governance framework: how decisions are made, policies developed and information shared.
Number four is to increase transparency and engagement. Many Canadians today mistrust government. This has major implications for national security. This erosion of trust opens space for misinformation and disinformation to spread, which weakens democratic institutions and contributes to a vacuum that hostile actors do not hesitate to fill. In this context, the national security community’s tradition of secrecy is outdated and counterproductive. As such, the report strongly recommends that the national security community’s recent engagement efforts be significantly ramped up, both with the public, including civil society, the private sector, the media and academia, and with Parliament. The community, moreover, must continue and intensify its efforts to increase diversity within its ranks.
It has been over 15 years since we produced a national security or foreign policy statement. We have not seriously reviewed the Canadian Security Intelligence Service Act since CSIS was established in 1984. We need to have an integrated approach involving the Canadian Armed Forces, the Canadian Security Establishment, the Canadian Security Intelligence Service, the Public Health Agency of Canada and other agencies dealing with defence and security.
I will conclude with a quote from Alex Deep. In his article “Hybrid War: Old Concept, New Techniques”, in the Small Wars Journal, he mentions that we need “an adaptable and versatile military” to overcome the complex threats posed by the modern hybrid war, which combines all the conventional and irregular components.
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- May/10/22 1:04:36 p.m.
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Madam Speaker, I certainly agree with my hon. colleague in relation to the issues he mentioned, because there are issues that are facing our country. The knowledge-based economy is taking over the world, and we have to work hard to make sure that Canada is in the forefront of this new economy. We have to invest in new technologies, in artificial intelligence, in battery technologies, in genomics. These are the kinds of things we have to discuss, debate and legislate upon, not this particular issue.
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- Apr/25/22 12:30:29 p.m.
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Madam Speaker, I will be sharing my time with the member for Fleetwood—Port Kells.
I would like to focus my talk on the following important items in the budget.
The first is Canada's critical minerals and clean industrial strategies. In my view, this is, at the same time, the biggest opportunity and the most critical need for Canada today. Daniel Yergin is an economic historian and writer about whom Time magazine said, “If there's one man whose opinion matters more than any other on global energy markets, it's Daniel Yergin.” Mr. Yergin said in his latest book, “You're creating whole new supply chains that don't exist, and you're trying to do it in a very fast time. That means transitioning from Big Oil to Big Shovel.”
The second is launching a world-leading Canada growth fund with $15 billion, which will help attract $45 billion in private capital. We need to transform our economy at speed and at scale.
The third is creating a Canadian innovation and investment agency, a market-oriented agency, one with private sector leadership and expertise similar to those that have helped countries like Finland and Israel transform themselves into global innovation leaders.
The fourth is the review of tax support to R and D. The decades-old scientific research and experimental development program has been a cornerstone of Canada's innovation strategy, which provides tax incentives to encourage Canadian businesses of all sizes in all sectors to conduct R and D.
The fifth is cutting taxes for Canada's growing small businesses, enabling more small businesses to avail themselves of the reduced federal tax rate of 9% compared to the general federal corporate tax of 15%.
The sixth is supporting Canada's innovation clusters for innovation ecosystems for plant-based protein alternatives, ocean-based industries, advanced manufacturing, digital technologies and artificial intelligence.
Before I speak on these six items, I would like to recognize this budget as prudent and fiscally responsible. My personal political ideology is at the centre of the political spectrum, and for me being fiscally responsible is very important. I notice that our fiscal anchor, the debt-to-GDP ratio, is expected to fall to 45.1% this year, and go down to 41.5% by 2026-27, closer to the prepandemic levels. We need to go in this direction so that we have the same fiscal strength if we get hit by another disaster like the current pandemic.
Related to this is the composition of our borrowing. We had very low interest rates for a long period of time, and now they have started to trend upward. When the rates were low, our government locked in these interest rates with increasing the size of our long-term borrowing. In the decade prior to the pandemic, on average, about 20% of the bonds issued by the government were issued at maturities of 10 years or greater. Over the course of the last year, the federal government allocation of long-term bonds was about 45%, which is a good thing.
The third general observation about this budget is what I have been asking for a couple of years. I have been asking that we launch a comprehensive review of government programs. Some of the programs have been around for many years, and some were introduced in recent times as part of our urgent need to fight the pandemic. We need to evaluate if the programs are delivering what they were intended for. We need to know whether the objectives or the end results are still relevant and/or effective use of taxpayers' dollars. I have said that we need to repurpose or reallocate resources to programs that contribute to quality economic development. I am glad the budget announced the launch of a comprehensive strategic policy review to assess program effectiveness and to identify opportunities to save and reallocate resources to adapt government programs and operations to a new postpandemic reality.
Last, the budget dealt with housing, immigration, skills and child care. Yes, these are social policies, but what is just as important is that they are economic policies, too. I entered politics with three objectives. My first objective was affordable housing for all who need it. I am happy to note that the budget builds on the national housing strategy and addresses both affordable housing and housing affordability.
Now, I move on to development of critical minerals. As I said earlier, a big opportunity for Canada, and at the same time a critical necessity for Canada today, is developing and implementing critical minerals and clean industrial strategies. The global energy market is worth $10 trillion, and it is undergoing tremendous change. Many significant geopolitical events during the past 100 years were due to energy market considerations, so much so that some have said many countries' foreign policies are totally based on their energy policies.
Now, another dimension has been added. What was behind the scenes is now in the front. Energy is a national security issue for all countries. It is both an opportunity and a necessity for Canada to focus on the energy industry. The nature of the energy industry is changing. The transportation sector is going from gasoline-powered vehicles to battery-operated vehicles. Renewable energy sources, such as wind energy and solar energy, are not only becoming financially feasible on their own, but can enhance their standing with battery energy storage systems.
Right now, the battery industry is dominated by China. To secure continued availability of batteries in a future battery-dominated world, we need to have our own supply of batteries manufactured in Canada. We have one strong advantage that many countries do not have: We have the critical minerals required to manufacture batteries. Critical minerals are also central to major global industries such as green technology, health care, aerospace and computing. They are used in our phones, our computers and even our cars.
Critical minerals are already essential to the global economy and will be in even greater demand in the years to come. We are talking about nickel, lithium, cobalt, graphite, copper, rare earth elements, vanadium, tellurium, gallium, scandium, titanium, magnesium, zinc, the platinum group of metals and uranium. Canada has an abundance of these valuable critical minerals, but we need to make significant investments to make the most of these resources.
A thousand-pound electric battery requires about 500,000 pounds of earth to be moved. As Daniel Yergin said, “You're creating whole new supply chains that don't exist, and you're trying to do it in a very fast time. That means transitioning from Big Oil to Big Shovel.”
In Canada, we have knowledge, expertise and a long track record of financing and developing mineral projects. We are indeed the world leaders, but we need to move fast now. We need to support the industry with incentives, which this budget proposes. More importantly, we should make the critical minerals regulation process simpler so companies seeking to invest look for a balanced and predictable regulatory environment and a collaborative approach among different orders of government. I am glad that the budget would make important investments in improving our regulatory processes.
I will touch on just one other aspect: the Canadian innovation and investment agency. Let us face the bitter truth about innovation in Canada. Our main innovation challenges are the low rate of private business investment in research and development, and the uptake of new technologies. These are key requirements for our knowledge-based quality economic growth and for creating very good-quality jobs. This agency is being modelled similar to those that have helped Finland and Israel transform themselves into global innovation leaders.
I look forward to hearing the questions.
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