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Decentralized Democracy

House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
  • May/19/22 6:49:42 p.m.
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Madam Chair, we are really proud of our national shipbuilding strategy. The investments we make into that strategy pay off. The economic benefits pay off, and it is not just for the large shipyards. Small businesses benefit as well.
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  • May/19/22 6:52:23 p.m.
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Madam Chair, just so that we are aware, I want to point out some of the benefits that the national shipbuilding strategy and the investments that we are making are having on Canadians. First, there is the creation of jobs, which includes the creation of over 18,000 jobs per year that are created or maintained. In terms of the economic benefit, it is $1.54 billion annually to the economy. With respect to overruns, I have already mentioned that COVID has had an impact and that does impact some of the overruns that have been faced.
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  • May/19/22 6:57:42 p.m.
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Madam Chair, we are open and transparent in the way we move forward. We have been clear about the benefits with respect to the shipyards and what they produce, such as the economic benefits and the jobs that are being created. We are open and transparent with those numbers because we know that is important to Canadians. We will continue to carry on in that way.
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  • May/19/22 9:07:12 p.m.
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Madam Chair, I am happy to say that in this strong procurement process, which was rigorous and competitive, we gave the highest weighting to economic benefits, and we are very pleased that we were able to do that, because we want to ensure that Canadians, of course, are benefiting from this.
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  • May/19/22 9:07:47 p.m.
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Minister, we know that Lockheed was allowed to bid after the government changed existing ITB rules requiring 100% offsets. Innovation, Science and Economic Development decided to allow F-35 to submit a best-efforts ITB proposal that would be negatively scored, because it was unable to guarantee benefits. Does the minister agree with that?
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  • May/19/22 9:08:17 p.m.
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Madam Chair, what I agree with is the heavy weighting that was given to economic benefits. I think that this was very important, and there are procedures in the process that are set up in order to ensure that those economic benefits are honoured.
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  • May/19/22 9:12:57 p.m.
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Madam Chair, as I referenced earlier, economic benefits are a part of the contracts that we sign and will continue to be.
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  • May/19/22 9:20:23 p.m.
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Madam Chair, again, what I would say is that I am proud of the national shipbuilding strategy. I think the economic benefits for Canada, the jobs that it creates, and the amazing work that is taking place are something that we as Canadians should all be proud of.
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  • May/19/22 9:40:40 p.m.
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Mr. Chair, if I understand the question, for the F-35s, we weighted the highest economic benefits to that project, and that was part of the selection of the final bidder.
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  • May/19/22 9:40:56 p.m.
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Mr. Chair, even with the F-35 program, there are no guaranteed benefits for Canada's aerospace industry. The International Association of Machinists and Aerospace Workers has confirmed that we could lose the contracts our companies currently have. Canada could spend tens of billions of dollars that will go directly into Americans' pockets. Is that not a shame?
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  • May/19/22 9:41:21 p.m.
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Mr. Chair, as I have said, the weighting in this procurement project has given the most significant weighting to economic benefits in our history, and it was a 20% weighting. That was considered in the successful selection of the final bidder.
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  • May/19/22 9:41:44 p.m.
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Mr. Chair, of that 20%, how much of the benefits will go to Quebec, which is the backbone of the aerospace industry?
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  • May/19/22 9:44:06 p.m.
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Mr. Chair, I believe the member is referring to the economic benefits, and as I have said, this is something we have prioritized with respect to this procurement. It is a $19-billion procurement. It is an important procurement, and we of course want to ensure that we are going to receive the economic benefits.
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  • May/19/22 9:46:58 p.m.
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Mr. Chair, we always look for the procurement contract that has the best value with the best economic benefits for Canadians as we take a look at the various contracts that are submitted.
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  • May/19/22 9:47:15 p.m.
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Mr. Chair, the best way to get good economic benefits is to ensure that the training and aircraft maintenance are done here. Will that be the case?
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  • May/19/22 10:10:31 p.m.
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Mr. Chair, I have no question at all about the economic benefits. I have no question about how hard the workers work in all the shipyards. The same work is getting done around the world using the same steel and the same technology, yet Canada still pays four to five times the amount. Will the minister look into this and find out how this can be?
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