:
Mr. Speaker, obviously it is a little melancholy to rise to speak about something that will impact a lot of families in a specific region of Canada, Oshawa, families who want to have better futures for their children, want to see a better day when they wake up and whose careers have been altered by today's announcement.
It goes without saying, and we have all commented tonight about how deeply saddened and concerned we are about General Motors' overnight announcement and this morning's confirmation that it would be shutting down a number of facilities in North America and one in Korea. The automotive parts sector and manufacturing industry is close to my heart.
In my riding last week, I spent a considerable amount of time with the CEO and president of Martinrea, Rob Wildeboer. We toured the oil field facility in my riding, which employs about 550 people in good, middle-class jobs. In talking to some of the folks who work there, I could just imagine, and in some ways just try to empathize with, what the folks in Oshawa are going through in finding out that their jobs will most likely not be there in a few months. It is devastating, and we always need to think about that.
Under the leadership of the , our government has been a big supporter of the automotive industry. Last year, he came to my riding and visited an auto parts facility owned by The Woodbridge Group. We spent some time there talking to some of the employees. We could see the diversity that Canada is about, and how the people there go to work with pride, much like the pride demonstrated day in, day out for the last 100 years by the folks who work at the Oshawa facility.
In the time I covered the auto sector, both at a credit rating agency and later at a bond desk, year in, year out the Oshawa facility was rated as one of the most efficient facilities and as producing one of the highest quality products. J.D. Power gives annual rankings, and the Oshawa facility would always come out on top. Unfortunately, we know some of those products were recently taken out of Oshawa, which is what we call “product cadence”, and production volumes over the years have declined. It was something I was very cognizant of.
However, my conversation last week with the CEO of Martinrea affirmed to me that there is a future for the automotive industry in Canada, and that our government is providing the right policies and regulatory environment and support. Rob praised our negotiating team for the recent USMCA. He worked very closely with our team, and he praised the minister of global affairs for the job the team had done. That was something I took back and was very proud of. I spent several hours with him and his team at Alfield, which supplies the General Motors facility in Ingersoll, Ontario. Actually, my wife and I drive a Chevrolet Equinox, and that is where that vehicle was made. I am proud to drive that very good quality vehicle.
as I said, our government has been unwavering in its support for the automotive industry since 2015. A number of my colleagues have commented on that today, and I would like to re-emphasize that our government has invested $389 million, leveraging $4.1 billion in investments, in the sector, leading to a total investment of $5.6 billion. Our strategy continues to do that.
What we must understand is that the automotive sector, much like a lot of industries these days, is transforming itself. We need to make sure we are focused on the importance of a policy of moving up the value-added production chain, whether it is electric or autonomous vehicles. Our government is there with investments in skills training. The GM facility in Markham is hiring literally hundreds of engineers.
Earlier today, I also had an opportunity speak on another matter, Bill . I mentioned that Canadians are bold and tough people, who expect the same thing their government. They expect us to be bold, tough and decisive. One thing I know I have learned since I have been here is that our government will have the backs of these employees, that they can rest assured of that. We will have the backs of the automotive industry.
In the time I spent covering the auto sector, I had the opportunity to travel to BMW in Munich and to Würzburg, as well as to Volkswagen, and over to Asia and, obviously, to Detroit. They were the big three at the time, which has since changed because it used to be DaimlerChrysler, which is now FCA, and Ford and General Motors.
The industry has changed a lot. The 2008-09 crisis taught us that we need to work together. The provincial government worked alongside the federal government, two different parties, to save those jobs, to save the supply chain, which was the right decision.
If we fast forward to today, our government continues to ensure that key investments are made and that the regulatory environment is favourable for manufacturing here in Ontario and across Canada from coast to coast to coast.
Our government's strategy leverage is to have a broad array of policies intended to support innovation, enhance manufacturing competitiveness and secure investment through a comprehensive approach, including support for auto innovation programs such as the industrial research assistance program, tax incentives through the scientific research and experimental development tax credit and the ACCA allowance for manufacturing.
I would like to speak to that because we did introduce our 2018 fall economic statement last week. I am a pro-business MP from a riding that is very entrepreneurial, with a number of head offices located in it. Magna is located not too far away. Martinrea is about a kilometre from my constituency office. Some of the largest entrepreneurs in the county live and work and employ tens of thousands of Canadians not only in my riding, but also tens of thousands of Canadians across North America.
It was great to see our government put in an accelerated capital cost allowance, the annual incentive for investment.
One thing that we have committed to is skills training and making sure that every Canadian has a career and finds his or her fullest potential. We will do that with these employees in Oshawa. We will ensure that they have a brighter future for their families.
Transition is tough. I grew up in what was basically a one or two industry town in northern British Columbia. My father worked in a pulp mill. Just before he retired the pulp mill closed down, the company went bankrupt, and the pulp mill is no more. It was Redpath Industries.
I can empathize on a personal level with what some of the families are going through this evening and will go through in the following months. It is tough to go through transition, because there are a lot of questions that have to be answered and bills to be paid.
Our government will be there. We have a great , and a who knows the sector. He recently visited FCA's facilities in Windsor. As I said, he came to my humble riding of Vaughan—Woodbridge and visited the wonderful people who work at the Woodbridge Group there, a plant that has been there since just before the Great Depression. The plant's history is phenomenal.
I have believed in the sector for a long time. I have covered it and met with many industry leaders, from CEOs down to treasurers. I can still remember the conversations about how great the industry was to operate in Canada, our highly skilled labour force, the quality of our supply chains, the tool and dye makers all over southwestern Ontario into central Toronto. We need to remember that.
We can look at other industries worldwide that have gone through similar transformations, whether the steel industry in Pittsburgh or industries in Cleveland, where tens of thousands of people were once employed. We have had to change and transform. This sector is to a certain extent like that.
We need to be at the forefront, and our government is at the forefront by investing in skills training, making investments and partnering in autonomous vehicles. We have had some success with Honda, Toyota, Ford, and other OEMs and General Motors, especially in Ingersoll and its other facility. We will continue to do that.
With respect to Oshawa, we will make sure that we have the employees back. We will make sure that we can do something. We will look at all options. These folks are skilled and talented. They have a future. We are doing the right things to ensure that manufacturing in Canada, especially highly value-added manufacturing, remains robust. That is what we are seeing.
I hear it everyday when I speak to stakeholders in my riding, whether it is Vision, Vision Products or Martinrea and Kisko. I could name about 20 or 30 of them that operate in my riding and that are doing very well and are proud to be Canadian and to continue to invest in Canada.
:
Mr. Speaker, I am sharing my time with the hon. member for , who is a great member of Parliament.
Like many today, and the thousands of General Motors employees and pensioners, I too stand here stunned at the news of the General Motors closure in Oshawa.
As we all know, General Motors confirmed today that as part of its global restructuring plan, the Oshawa assembly plant will cease operations at the end of 2019, thus ending a long and proud tradition in Oshawa, which has been a reliable home to General Motors for decades. There are over 2,500 Canadian workers and their families who will now have a very different Christmas than the one they envisioned just a few days ago.
There is more at stake, though, than just the 2,500 jobs at the plant. The closure of this assembly plant will wipe out $1 billion in GDP and will ripple throughout the supply chain, putting tens of thousands of jobs at risk. We are talking about truck drivers, restaurant workers, employees who work in auto parts manufacturing, retail employees and the list goes on.
Let us also not forget about those who worked for decades at GM, the over 37,000 pensioners who built the most productive and versatile assembly plant in the world. They have been calling my office in Lindsay today, and rightly so, concerned about what this might mean for their retirement.
In 2009, the automotive industry faced one crisis in particular. General Motors was facing bankruptcy. Canadian taxpayers stepped up and ensured that the automotive industry would remain healthy and would continue in southern Ontario.
GM employees stepped up, and they did what they needed to do to ensure that taxpayer dollars were not wasted. GM employees in Oshawa worked hard and stepped up their game. They put their best efforts forward, and as a result, they earned the best productivity ratings of any GM plant in the world.
What about that taxpayer loan of 2009? CBC is reporting today that the quietly wrote off a loan last March, leading to speculation that it could be in the automotive industry.
For years we have been warning this government that investment is fleeing this country to more business-friendly jurisdictions. This has become more pronounced in the last year in the energy sector. We have watched in disbelief as Alberta oil and gas has been decimated by the Liberal government. The has created a toxic environment for resource investment in this country, raising taxes and creating new regulations at the precise time that other countries are lowering theirs. This has driven billions of dollars of oil and gas investment and thousands of jobs out of this country. We are faced with trade uncertainty and sector-crippling steel and aluminum tariffs.
The Parliamentary Budget Officer found that the Liberal carbon tax will take $10 billion out of the Canadian economy by 2022, while other estimates argue the cost could be as much as $35 billion a year.
Let us not forget that this year's deficit is more than three times what the said it would be, and the Prime Minister has added $60 billion in new debt. Next year, the deficit will be even higher. The Liberals have no plan to return to balance, and as we all know, more debt today means higher taxes tomorrow and even service cuts.
As a result of the 's reckless borrowing, last year the Liberals spent $23 billion servicing the national debt alone. By 2023, the Parliamentary Budget Officer says that amount will rise to $37 billion, which is a 60% increase. At that point, the Liberals will be spending more on debt interest than we currently pay in health transfers.
Just last week the presented a fall economic update to Canadians that painted a rosy picture of Canada's economy. Despite mounting debt and deficits, rising inflation and interest rates, billions in lost investment in the energy and resource sectors and a continuing crisis in the resource sector with no plan to get us out of it, the Prime Minister insisted that all was well. We know how that turned out. Only days later, we learned of this closure.
I have been critical up to this point, but members must understand that I am quite frustrated. I represent part of north Durham. As we all know, the city of Oshawa is in the Durham region, so in my riding, there are a lot of people who work at the GM plant and a lot more pensioners.
Not only that, I think we all witnessed that with General Electric in Peterborough. Many of those workers lived in my riding of Haliburton—Kawartha Lakes—Brock. They lost their jobs when the Liberal government failed energy east. It had a contract to build motors for that pipeline. That was the straw that broke the camel's back. That plant closed after that announcement was made. Now we are seeing the same thing again. However, I must remind myself that we are here to find solutions. We owe it to General Motors workers and their families to not give up on day one.
For decades, GM workers have contributed to the economy of southern Ontario and have contributed directly to their community as coaches, volunteer firefighters, neighbourhood volunteers and the list goes on. As I mentioned, we see this in my communities in the townships of Brock and Cavan Monaghan, and in Kawartha Lakes. Now more than ever we need to focus on how we can get those affected back on their feet.
As I mentioned, we are not ready to throw in the towel yet, because we know that if we do not fight for the jobs today, they probably will not be back tomorrow. Therefore, we need to push for increasing investment attractiveness here in Canada to create business-friendly environments for future generations. I and many of my constituents know there is much more the government can do to improve the business climate here in Canada. I keep repeating that I am not willing to give up the fight just yet.
General Motors mentioned in its press release that there is a possibility the plant could be retooled. I want to be optimistic and I see this as an opportunity to get our foot in the door before it is closed for good. As such, I would encourage the government to look at all available options in its tool box to save these jobs.
In the General Motors announcements of the plant closures, the company talked about transforming its business to focus more on electric and autonomous vehicles over the next two years. I think we would all agree that is good news. Canadians are number one in the world in green technology. If GM said it will refocus and redirect resources to autonomous and zero-emission vehicles, I say perfect. Let us build them here, though.
Perhaps there is a partnership the government can facilitate between GM and our green technology entrepreneurs. We have built centres of excellence for other sectors before. There are places of convergence, places to explore, discuss and create ideas. With the right investments, we can create a green vehicle technology hub and work with GM and other interested automotive companies to reach their business goals, protect the environment and create jobs and wealth for Canadians. That is just one idea. Of course, there are many more, and we have heard them all this evening in this emergency debate. I encourage the government to take some of these suggestions back with it, explore these ideas, and not give up on Oshawa.
As we all know, GM workers have shown resiliency before and they will do so again. As parliamentarians, we need to stand side by side with them and ensure that we have done everything possible before throwing in the towel. I think we all believe there is a future for automotive manufacturing here in Canada. That is why the Conservatives have asked for this emergency debate this evening, to discuss what immediate action the Liberal government will take in response to the significant number of job losses due to this Oshawa plant closure.
Conservatives and Canadians stood up for GM workers in 2009 and we will continue to stand up for them now.
:
Mr. Speaker, I wish I could give everybody great hope. I am from the city of St. Thomas where, back on January 23, 2006, the day of the federal election, Ford Motor Company announced that it would be reducing down to one shift. On October 14, 2008, our next federal election, the Sterling truck plant announced that very day that it was closing. Therefore, I come from a city and region that has felt this economic impact so greatly, and that is what I want to focus on. We do need hope here, but we also have to have some reality checks. Tonight is going to be a difficult debate. I have seen so many families who have gone through this.
As I have always mention in this House, I was the proud assistant of Joe Preston, the member of Parliament from 2004 to 2015, and that gave me the opportunity to work with so many individuals who had worked at the Ford Motor Company and the Sterling truck plant. These were very difficult times. People were coming in and saying they had lost their jobs. They usually blamed it on the government, which I understand because, at the end of the day, there is some part that the government has to play. That is why, when we have talked about competitiveness and about tariffs, all of those pieces are part of the puzzle and we cannot forget that.
Back in 2006 when it was announced, it was a very difficult day.
In 1967, the Ford Motor Company came to the city of St. Thomas and people leaving high school were able to get fantastic-paying jobs. Students were able to pay for their college and university, just based on their summer jobs there. People were able to work Fridays and Saturdays for 12-hour shifts and, once again, pay for their university and college. There were so many opportunities, and all of those opportunities disappeared when the Ford Motor Company disappeared.
It was the same thing with the Sterling truck plant. In 2008, it announced that it was leaving. As I said, it was the federal election day. It seemed to always happen to Joe and me as we were working on these federal elections. We just did not know what was going to happen. In 2011 and 2015, when we escaped with no terrible announcements, we were very pleased.
We have to recognize it is not just the 2,800 jobs, but it is also all of those secondary and tertiary jobs that really matter. It is much greater than the 2,500 unionized staff and the 300 non-unionized staff. That is why I want to speak about the challenges we saw in St. Thomas as well.
The day that the Ford plant closed in St. Thomas, it was noted in the Financial Post, “Making matters worse is that a number of Ford’s suppliers in the area, including Lear Seating, have also announced they will be closing their own doors as a result of the plant’s demise.”
We still have about one in four jobs in St. Thomas that are tied to manufacturing, and many of those are still in the automotive parts. In that year, we lost Lear and Schulman. Schulman did not deal with the fabrications per se, but with the plastics that had to do with the steering wheels. We lost people who worked in the cafeteria, who prepared over 4,000 meals a day. Those were great jobs and people knew they could go to work and get paid, but we lost them. One other huge part of our industry that was really impacted was Auto Holloway. I remember going to school with many kids whose parents worked at Auto Holloway. It had great-paying jobs. My brother worked for the company, and when the Ford Motor Company left, that job was gone as well.
We are not just talking about the cars once they are manufactured and shipped off; we are talking about the tires, the engines and all of the different parts of the cars that are brought in by CN Rail or CP or by the 400 road series. All of these jobs are lost as well. Therefore, today as we are talking about Oshawa and about the 2,800 jobs, we have to recognize all of the spinoff effects and impacts and ripple effects that this is going to have on that community.
It is important for the government to step up. I am hoping that during this emergency debate the Liberals will step up and work with the opposition parties that asked for this emergency debate. We need to make sure it is not just about employment insurance, but that it is about what we can do next. Employment insurance is a band-aid solution. Although Service Canada will set up in special areas where people will work with the workers, that has to be seen as a short-term fix. Employment insurance is only meant to get people through the rough spots.
This is where I really encourage the government to get a plan for how we can keep this company here in Oshawa and keep people working today, or how, in the future, the government can make sure that these jobs come back.
St. Thomas is in the county of Elgin. We are lumped in with the city of London when it comes to our unemployment rates. During the global economic downturn, we were able to separate that information. In the county of Elgin, in the city of St. Thomas, we were at about a 15% unemployment rate. We had growing poverty, growing job losses, and people were losing their homes.
I had the opportunity to work with many of these people. There were a lot of crying parents. That year our office bought Christmas presents for families we had met. This is what the people of Oshawa are going to go through, not this Christmas but perhaps next Christmas. It is really important that the government is listening, and asking, “How can we do things better?”
One of the things I have always heard is, “Our job as government is to set the field. It is to create the field and create all the opportunities for competitiveness.” This is really important. Our Conservative caucus is saying today that competitiveness has left the building.
It is really important that we recognize that tariffs are having an impact on many of our companies. We can talk about the CPP, about all of the new costs to business. We are seeing this across the country. I truly hope that the government recognizes that until it changes the manner in which it is doing business, this may be the first but it may not be the last. We have to be on top of that.
We also need to talk about labour and talent. We recognize that there are great workers who have worked there. We have talked about some of the products that have been taken off the line. I am sure many of the people in this room tonight and many of the viewers watching at 9:55 p.m. on a Monday evening can remember the Crown Victoria. It is the cop car that we see across Canada. For many years, people in St. Thomas could sit there and say, “That's my car. That's my car. That's my car.” Every time I see a Crown Vic, I know it came off the line in St. Thomas, Ontario.
I have the feeling that the people who work in Oshawa are feeling the exact same way. Many individuals take great pride in the work that they bring forward. Today, as our member for mentioned, we have to remember the children and the families that are being impacted.
I am going to go back to another conversation I had. Many years ago, we did a lot of round tables. We always dealt with manufacturing. As I indicated, one in four jobs in the city of St. Thomas are with manufacturing. One of the biggest things that one of our companies said was that if they could move today, they would, but they could not, they were here, and they had everything set up.
One of the biggest issues for him was the cost of hydro. That is something the Province of Ontario is really working on, and I am really proud of the work that they have done following this last administration's failures.
We also have to understand employment costs. These are really big factors as well. It is really important. I understand that this is a balance between labour rights and family, but we also have to look at the work in the companies to make sure that they are productive. We have to find that balance.
I do not know if the government is consulting enough to make sure that we are actually on the right path all the time. Those are some great concerns of mine.
My final message is that we do have to stay positive. This is a very difficult situation that many of our workers are going through. They are going to be left without jobs. They are going to be left with mortgage payments and bill payments that do not cease just because they have lost their jobs. If they are like the government, they will have credit card bills to pay as well.
There are many things that we need to think about. We need to come up with a plan. I am not saying I am the right person for the plan, but there are 338 members of Parliament who should care enough about Canada and care enough about our economy that, together, we can come up with a non-partisan plan that will keep these people working in Oshawa, and that will keep this country the great country it is.
:
Mr. Speaker, I will be sharing my time with my hon. colleague for .
As many have said, the decision by GM today is a deeply disappointing one. While we understand this is part of its global restructuring plan and affects its operations globally, I cannot start to understand how devastating this must be for the men and women whose jobs are affected, along with their families and community.
Although I represent a riding from Quebec and have lived the last 30 years of my life there, some people will remember that I grew up in Niagara, and General Motors in St. Catharines was a very important part of our ecosystem. I had a cousin who worked there and family members. We knew what was happening with GM and the ecosystem. We understood its impact whenever there was a downturn in the market or an adverse decision was being made.
I understand full well that today's news will have a significant impact on the community of Oshawa surrounding that plant, the network of suppliers that support the Oshawa plant, as well as the other U.S. plants impacted by the General Motors announcement. General Motors has a long and storied presence in Oshawa, going back over 100 years, and it is simply devastating to hear of this plant's closure.
While GM has made this decision in the context of its overall global restructuring plans, a plan that is closing multiple North American plants as well as three global facilities, it is important to highlight that this is not a reflection of the workforce in Canada. Canada's auto workers, and particularly those in Oshawa, have a global reputation as highly skilled and award winning workers.
[Translation]
We will continue to work closely with our provincial counterparts to help those affected by this closure. We are committed to supporting the workers and the community of Oshawa during this difficult time.
[English]
We are also committed to providing assistance to those affected directly by this closure. The government will deliver benefits to employees as they are entitled, with a quality of service that they deserve.
[Translation]
A range of support services and programs is currently available and can be deployed quickly to help workers who may be affected. These services include employment insurance benefits, counselling, job search assistance, and skills training and development provided by the provinces and territories under labour market transfer agreements.
As a government, we will continue to monitor the situation and the impact on workers closely to ensure that those affected receive the assistance they need to quickly find new jobs.
[English]
Our government understands that the automotive industry is a vital component of our economy. Over half a million jobs in Canada directly and indirectly depend on the auto sector. Our government understands the importance of this sector and we remain committed to keeping Canada's automotive manufacturing sector globally competitive and innovative.
[Translation]
Our government's support for innovation in the auto sector is an essential component of our plan to stimulate economic growth and create better opportunities for Canadians.
To that end, we are building on several key policy initiatives to strengthen Canada's auto sector by supporting innovation and technology development and by creating the ecosystem that will help Canada become a leader in designing and building the car of tomorrow.
[English]
We have a plan that builds on and leverages the expertise in the industry and the expertise in technology shaping the industry's future. Our innovation and skills plan helps position Canada as a leader in the global economy with commitments to grow Canada's automotive footprint, support digital innovation and invest in clean technology.
The strategic innovation fund, now a $2 billion program, has provided funding to support innovative projects in the automotive sector. Since November 2015, our government has invested $389 million in 37 projects undertaken by Canada's automotive sector, resulting in leveraging of nearly $4.1 billion in total investments in the sector.
In addition to this, 23 other projects were announced without any federal government support, leading to a minimum of $1.5 billion in additional automotive sector investments. It is about the ecosystem and we are investing in it.
For example, and as mentioned previously, earlier this year we provided $49 million to create 1,500 new jobs and maintain another 8,000 to help Linamar Corporation launch a new innovation centre in Guelph, Ontario, and I am seated next to the member for and honoured he is beside me this evening, dedicated entirely to research and development.
Furthermore, in May, we provided $110 million for Toyota Motor Manufacturing Canada in Cambridge, Ontario, that will help retain 8,000 jobs, create another 450 new jobs and provide 1,000 more co-op placements. That is our future, making Toyota's Canadian plant the largest producer of Toyota hybrid vehicles in North America.
Our innovation superclusters initiative announced earlier this year will invest up to $950 million to support business-led superclusters with the greatest potential to energize the economy and become engines of growth. This new fund is encouraging cross-sector partnerships in investment in areas such as advanced manufacturing, which has a direct impact on the Ontario automotive sector in particular, as well as digital technology and artificial intelligence, all of which go to support the car of the future.
I welcome what was said just a moment ago by the member for with respect to encouraging the kinds of disruptive technologies that will in fact make our economy of the future that much stronger.
[Translation]
Thanks to our global skills strategy, it is now easier for businesses to recruit the talent they need, which helps Canadian businesses grow their operations and create more jobs. The strategy comes with $39.4 million in funding over five years starting in 2017-18 and $6.7 million annually thereafter.
We launched a new agency called Invest in Canada to attract international investments and make it easier for businesses to set up shop in Canada.
[English]
In addition to these policies, we are continuing to encourage investments through tax policy. In the fall economic statement last week, my colleague, the hon. , proposed some important changes to Canada's tax system to encourage more investments, including accelerated write-offs on new investments, with the overall tax rate in Canada on new business investment falling from 17% to 13.8%.
We have heard from Canadians who told us that we needed to work on our competitiveness, and we have with these very measures.
[Translation]
We will continue to work closely with industry, the provinces, municipalities, unions and all other stakeholders to protect and grow Canada's auto industry.
As the second largest manufacturing sector in Canada, the auto industry generates roughly 130,000 jobs and contributes $18.1 billion to the GDP. This sector is vital to our economy, and we are deeply committed to supporting it.
[English]
As technology is rapidly transforming the future of mobility to one that is connected, automated, zero emission and shared, the government continues to amplify Canada's automotive manufacturing strengths, innovative research capabilities, technological expertise and talent. Together, with a robust supply chain comprised largely of small and medium-sized enterprises, these strengths contribute to the ecosystem, which makes Canada a location of choice for the design, development and manufacturing of the car of the future.
Our hearts go out to the people of Oshawa. Our government has said that it will remain open to all possibilities to not just help those workers or the transition that may happen, but also to continue to invest in the automotive ecosystem, not just in southern Ontario and not just in Oshawa, but across Canada, when we talk about those supply chains.
:
Mr. Speaker, as many of us have noted today, the closure of the General Motors plant in Oshawa is devastating news. As a member of a community with a strong automotive sector, Fiat Chrysler in Brampton, and many suppliers, such as Magna, I can understand the devastation today's news has brought to those in Oshawa and others all around Canada.
I cannot reiterate enough that we stand behind all the affected workers and their families. We are taking every step possible to make sure that we continue to support Canada's automotive workers and protect Canadian jobs. There is no doubt that our automotive industry is vital to Canada's economy and that we will be working together with the province, the unions and all stakeholders involved to minimize any potential impacts from General Motors' global restructuring plan.
GM Canada is one of five automotive original equipment manufacturers operating in Canada and currently employs 8,100 workers, with approximately 2,500 at its Oshawa assembly facility. It has been an integral part of the Oshawa community for over 100 years, and I cannot imagine what the closure means to the community. As a government, we are committed to supporting Canada's automotive workers, who are vital to our national economy.
The automotive industry is one of Canada's largest manufacturing sectors and largest export industries, contributing over 130,900 direct jobs and $18 billion to Canada's GDP. Canada is home to an incredible automotive ecosystem. We have approximately 700 suppliers, 40 academic institutions and a world-class workforce that produces high-quality products. Our integrated supply chain with the United States means that an automotive part can cross the border up to six times before it ends up in a finished vehicle, a testament to the importance and strength of Canada's automotive environment.
Canada is also home to world-renowned experts who work in many of the technical areas that contribute to automotive innovation and are redefining the car of the future, including cybersecurity, battery or fuel cell technology, ICT, sensors, lightweight materials and alternative powertrains.
Since November 2015, our government has invested $389 million in the automotive industry, leveraging nearly $4.1 billion in investments in the sector and contributing to a total of $5.6 billion in automotive sector investments. The recently released fall economic statement is proposing to provide a further $800 million over five years to the strategic innovation fund to accelerate support for business innovation in Canada and to continue to support innovative investments in Canada's automotive sector.
The fall economic statement is also proposing to improve competitiveness in our automotive sector by allowing the full cost of machinery and equipment used in the manufacturing and processing of goods to be written off immediately for tax purposes and by introducing accelerated investment incentives to support investment by businesses of all sizes and across all sectors of the economy. It also introduces the export diversification strategy, which is aimed at increasing Canada's overseas exports by 50% by 2025.
Through a range of current and previous federal programs, the Government of Canada has worked to attract and support high-quality business investment, promote technology development, accelerate areas of economic growth and job creation and strengthen and expand the role of Canadian firms in regional and global supply chains.
We recognize that our highly skilled workforce is the driving force behind the success of our automotive industry and is on the front line of innovative and clean technologies. This is why the government's innovation and skills plan focuses on people, technologies and companies to help to position Canada as a leader in the global economy, with commitments to grow Canada's automotive footprint. The plan aims to equip Canadians with the skills necessary for the digital economy and to connect Canadian employers and research institutions with the world-leading talent that will accelerate innovation, help build Canada's future workforce and create opportunities for Canadians.
We are committed to assisting those who have directly been affected by today's decision and will deliver benefits to those employees who are entitled to them. We will continue to engage actively with affected workers to ensure that those workers and their families have the assistance they need. A suite of services and programs is currently available and can be quickly deployed to assist workers. These include income supports through employment insurance and counselling, job search assistance and training and skills development programs delivered by provinces and territories through labour market transfer agreements.
Today's news is devastating for all of Canada, but we remain committed to supporting the automotive industry.
:
Madam Speaker, I will be sharing my time with the hon. member for .
Tonight's debate is very serious. This is much more than a conversation about a plant closure. This is about employees. It is about families. It is about a community, and it is even broader than that. It is about suppliers and ultimately it is about workers across this country who are rightly saying that if this can happen to a solid industry like the auto industry that has existed as a foundation of the Canadian economy since 1908, and governments over time have dedicated time and attention to this industry, then clearly it can happen to any industry in Canada.
Therefore, I know I speak for all Canadians when I say that our hearts go out to all of those families who are sitting at home discussing tonight how they will build a future after these potential job losses; to the pensioners who have retired from GM who are concerned that perhaps their fate might be similar to the fate of pensioners of other companies like Sears who have left this country, which they might not be protected from and wondering how they will endure in their retirement; and to suppliers, who are wondering what GM's plant closure is going to do to them in their industry. For all of those affected, directly or indirectly, by today's announcement, I say that the game is not up yet, we have work to do and, yes, we must hold the government to account for the role it has played and will play in addressing the issue and positioning for success in the future.
To arrive at solutions, a way forward, we must critically assess the situation that we are in and the role of governments in contributing to the circumstances that we currently find ourselves in, and the solutions that they may arrive at. The current government has said that GM is laying off lots of people south of the border and that this is not about Canada, but a business decision that GM is making, and that Canada really has no part to play in these restructuring announcements, because it is just business as usual and these are decisions that businesses make.
I can say that I was employed in a multinational global corporation at IBM and at Bombardier, and to say that Canada has no role in the decisions that GM has made is to be incredibly naive and uninformed. Global corporations make decisions on a daily basis about which jurisdictions they are going to invest in. They make these decisions internally within their corporations in almost as competitive a way as externally with other organizations. These corporations are looking at the terms and conditions within a nation to decide whether they are going to continue to invest in that nation. Therefore, yes, the terms and conditions or the foundations of the economic structure of Canada have a significant impact on whether GM will decide to put future business here in Canada or future business in the U.S. or in Europe or somewhere else. Therefore, to say that the current government's actions have absolutely no impact, again, is to be uninformed.
Last week, the said that everything is fantastic with the Canadian economy, that things are moving in the direction we need them to go and that Canada is in a sound economic and competitive position. I will say that GM's decision today is the ultimate vote of non-confidence in the Canadian economy.
Let us understand why that is. What are the factors that perhaps contributed to the decision GM made?
First of all, we are looking at this new negotiated USMCA agreement. In this agreement, yes, we avoided auto tariffs, but we did not really. We were able to avoid auto tariffs under a certain point. What that means is that for the first time ever, the growth potential of Canada's auto industry sector has been capped. An auto industry invests a significant amount of money in its operations. Why would it invest significant money in the future business of a corporation if it knew, before it even got out of the gate, that the maximum amount it can ever achieve is capped? It would say that it is going to another jurisdiction where, if it made that same investment, it would not be capped. It would do so because it is not going to risk having its growth constrained by having to pay tariffs. That is the first thing.
The second thing is our tax structure. When it campaigned in 2015, that government said that it was going to fundamentally change and reform the tax structure, because it understood the competitive implications of a tax structure attracting and retaining global corporations in Canada. However, that is not what it did. Our tax structure has now put us in a position where we are not an attractive jurisdiction relative to our peers and other competitors. That is the second thing.
First is the cap in the USMCA; second is our tax structure. The third is the national security tariffs. We heard the clearly tell us that anyone considering us as a national security threat is clearly delusional. No one in their right mind would look at Canada as being a national security threat, yet the Americans imposed national security tariffs, which have had a punishing effect on our steel and aluminum industry, jeopardizing the competitiveness of our industry. That has also affected the auto industry.
These are the foundational elements that the industry is looking at when it is making that decision, whether or not to invest here. This is not limited to the auto industry. This expands far beyond the auto industry. This is merely the beginning of what is a frightening trend. Bombardier Aerospace announced that it is laying off 3,000 personnel. That is significant. That is just one example in a very long list of manufacturing companies in this country that, as a result of the actions of the government, are no longer viewing Canada as a competitive jurisdiction.
Do not be fooled. The actions of the government matter. The actions of the government determine whether or not the basic foundations and elements of the competitive nature of this country attract and retain manufacturing industries here.
Where does that leave us? The government has not set out the critical conditions necessary to ensure Canada's competitiveness. That is why we are seeing these manufacturing jobs and foreign investment leave. We, on this side of the House, are not about 10-second soundbites. We are not about throwing money at something without any outcomes and measurable connections to those investments. We understand that the foundational elements of the economy must be restructured, so that not only can we keep the auto industry here and help it to choose this jurisdiction as an opportunity for electric vehicles in the future and to retool our plants, but also encourage all manufacturing in Canada to ensure that Canada remains competitive and can move forward not only for the next 10 years but also the next 20, 50 and 100 years.
:
Madam Speaker, the first thing I would like to do is thank the Speaker for granting this emergency debate today. I sat through all of it tonight with sincere concern for the families in Oshawa and, in fact, the families around Durham region.
In general terms, the tone of the debate has been very, very strong with a strong level of concern. Some solutions have been proposed. That is the reason we are here tonight, to try to find solutions and to work not just with the government, but also with the community and labour, along with the employees and all those who are affected as a result of the very devastating news from Oshawa today.
I have been spending a lot of time, actually, in Oshawa over the last several years. My son plays for the Oshawa Generals. By the way, the Generals are named after General Motors. I go to the games as much as I can. I talk to a lot of people. People who recognize me because they have seen me on TV or CPAC or whatever come up to me and we talk politics. Just on Friday night, a gentleman came up to me at the Tribute Communities Centre arena. We talked about pensions and the need to protect pensions and how important that was to those employees at General Motors. We had a long conversation about it. This is a conversation that is happening over and over again in the Oshawa community.
I think of those people who I saw at the Friday night hockey game and those people who I am going to see this coming weekend at a couple of games in Oshawa. I will give them a hug if they need it. I am sure there are some of them who are up tonight watching this debate with great interest after the devastating day that they had today and are trying to find out what, if any, solutions the Government of Canada and this Parliament of Canada can come up with.
If we look back, a certain amount of prophecy happened back in May. Magna International's chief executive officer, Don Walker, was talking about overall competitiveness in the automotive industry. He was doing this at a shareholder relations meeting. He said:
[I]nitiatives such as Ontario’s cap and trade program, as well as rising electricity costs and new labour legislation are making it increasingly difficult to remain competitive against other jurisdictions that don’t face “all these burdens.” “I’m worried about what’s going on in Canada,” Walker told employees and shareholders gathered in Markham, Ont. on Thursday.
“I get very frustrated when I see the decisions being made that put undue administrative costs and inefficiencies on our plants, specifically here in Ontario, because we have to compete… We’re not going to get business if we’re forced to be uncompetitive.”
Walker was talking specifically about some of the initiatives in Ontario with respect to the Fair Workplaces, Better Jobs Act as an example of how the government is affecting business and competitiveness.
I think the same could be said of any of us who have been in Ontario over the course of the last 15 years. Those of us who represent Ontario know just how devastating some of the policies of the Wynne and McGuinty government have been to business. This announcement today is the culmination of not just those policies in Ontario, but I would also suggest the policies of the current federal Liberal government. The reason is simple. I have said many times in this House that those who are running Ontario into the ground are now running the 's Office and, therefore, by extension, running Canada into the ground as well. Those failed policies in Ontario are not going to work here federally. It has been proven that they do not work. It is quite concerning in just three short years.
It is funny because I think back to the last election when I had debates and I was talking about this very issue. I would ask people why we would want to go down the same path federally as Ontario did. Why would we want that? We knew there was no difference between the Ontario Liberal Party and the federal Liberal Party.
Canada, in general, and the state of our economy and competitiveness have really taken a hit over the course of the last three years. There are several reasons for that, such as regulatory requirements, environmental requirements, tax requirements, when seemingly our biggest competitors are going in a completely opposite direction. When it comes to tax and regulatory regimes, Canada is going in the opposite direction, and we are imposing more regulation and taxes on businesses, which is creating more uncertainty, not just in the automotive sector but also in the energy sector. We have seen hundreds of billions of dollars that have left the energy industry. We have seen hundreds of thousands of jobs that have been lost. That uncertainty is cascading throughout the economy.
The other side will talk about the 500,000 jobs that have been created, or the 700,000 jobs. Nobody on the other side seems to get that number right. However, the reality is that there is doubt and uncertainty that exists within our country. Any time there is doubt, it limits investment. In fact, it restricts investment, because the one thing that businesses do not like is uncertainty and they will not make the investments they need to make in an uncertain economic business environment.
What is causing that uncertainty? Well, the was in Barrie in August. We held a round table. We had some of the largest manufacturers. Napoleon was represented there, a large steel and aluminum manufacturing facility, and there were others as well. Every single one of them talked about the impact of steel and aluminum tariffs on our country, and not just what was imposed by the United States, but the retaliatory tariffs that we imposed on ourselves as causing a problem and creating this uncertainty.
I walked away from that meeting remembering what one of the largest employers in central Ontario said to me. He said, “The one thing the Liberal government needs to understand is that my money is portable. I can take it anywhere I want. I can take it to another country or another continent. I can set up shop there and hire people there. I choose to be here because these are my roots, but as long as this continues to go on, this doubt and uncertainty within the business environment, there is no reason for me to stay here when I could take my money somewhere else, and it is portable.”
That is a warning, just like the warning from the CEO of Magna that every Canadian should be heeding right now. We have been heading down a path over the course of the last three years that has put us in an uncompetitive environment in almost every sector of our economy. It is concerning, and it certainly came to light today with this announcement at GM.
We want to come up with solutions. We do not want to just complain about what is happening to this country, although what is happening within this country is very real. However, let us talk about competitiveness. The hon. member for said it right when he started off this debate earlier this evening. We have to work together to find a way to retool this plant. We have some of the best skilled labour, some of the most innovative people in North America, arguably around the world. We could use that expertise to figure out how we can retool this plant. We have to look after these employees. It has been said many times tonight that it is through job training, benefits and pensions. It is just like the gentleman who approached me at the Tribute Communities Centre the other night said about protecting the pensions. That has to be critical for these employees.
I talked about tax competitiveness and aligning with the provinces a tax competitive regime so that when one end of government tries to give a credit or benefit, the other end is not trying to take it away. That has to be an option.
As well, for God's sake, we have to stop this carbon tax now. It is putting us in an incredibly uncompetitive position, and that is coming from every business sector in this country. We have to look at regulatory competitiveness and make sure that the carbon tax is not imposed on businesses, especially small and medium-sized enterprises.
The new NAFTA agreement, the USMCA, is causing uncertainty. There are the steel and aluminum tariffs. I mentioned the retaliatory tariffs. We have to eliminate those. That is what business is telling us they need in order to move away from this doubt and uncertainty.
I will conclude with this—
:
Madam Speaker, I will be sharing my time with the soon-to-be wed member for , the leader of the Green Party, who I congratulate on her engagement.
Any of us who have grown up in and around the Golden Horseshoe know of the presence of the Oshawa plant. As we drive down the 401, we see the smokestacks and the workers filing in. People who have been at the Oshawa GO station to catch a train to Ottawa know of the gravity of the situation. I have been part of organizations that have experienced layoffs, and we know of the devastation of layoffs, not just for the people whose careers and jobs disappear but also their partners, and the teachers, doctors and people in the community. It ripples through a place like Oshawa, Hamilton and small towns that have large employers like this. Tonight, our thoughts, as a government and as Canadians, are with the people of Oshawa, the impacted families, the community at large and the region.
We have heard expressed by the members from southern Ontario tonight that the GM plant does not just impact Oshawa. The supply chain reaches every corner of the province and there are many people tonight, business owners and families in communities far away from Oshawa, who are sharing the nervousness and worry as to what will happen next.
When I listen to the debate, what I am not hearing are views about what happens next. I am not hearing optimism about the extraordinary investment in education and training, the hiring of engineers, the $5.6 billion we have invested in the automotive sector, which has secured plants in Alliston, St. Catharines and Windsor, even in Oshawa, with the innovation centre that was put there by GM. I am not hearing a sense that we can get through this; I am hearing that we have to surrender.
I listen to the other side talk about trying to out-trump Trump, that we should mimic the tax cuts that have added $1 trillion to the U.S. debt. The party that pretends to balance budgets is now pretending to care about deficit financing, but to mimic the Trump tax cuts would be to add $1 trillion in equivalent Canadian debt. That is insane. Even though those tax cuts were put in place by the United States, even though the tariffs were put in place by the United States and even though there is no carbon tax in Indiana or Michigan, those states are losing auto plants tonight, just like Oshawa is. Clearly, this is not being driven by any individual policy that governments on either side of the border has put into place.
If we read the article that the members opposite keep referring to by Dennis DesRosiers, he talks about a massive disruption in the auto industry that is driving change through all parts of the sector. Because the GM plant has been operating at about one-third capacity due to its product line not selling as well as others, GM has made a decision that will have a devastating impact on the community. Unfortunately, it is understandable from a whole series of different perspectives, but it is not the tax cuts of Trump that are going to save or define this issue. What is going to save, define and build a strong future in Oshawa is a rethinking of the technology, the application of that technology in the transportation sector and getting out in front of change, as opposed to being dragged through the process, as we have just seen happen in Oshawa.
When we look at electric vehicles in this country and the investments this government has made in technology and innovation in the auto sector in supporting local economic development, there are some great success stories. I was at the CUTA conference in Toronto just the other day and spoke to three different bus companies, one from Edmonton, one from Winnipeg and one from Quebec, about the close to 260 buses they are supplying to the Toronto Transit Commission in the next year and a half. All three of those manufacturing sectors have substantial orders not just in Toronto and in Canada, but also around the world. In fact, the factory in Edmonton has a massive contract selling buses to China.
We have the opportunity here to rethink the auto industry and the transportation sector and to invest in it, with the principles of a clean, green economy driving some of the vision, a vision that recognizes that engineers are a critical part of driving this industry forward and the investments that have been made, including smart investments in the technology institute in Oshawa, smart investments in Waterloo a generation ago, smart investments in the community college sector that trains the workforce.
We can build a better auto industry if we decide we will fight for the future instead of arguing about the past. The past is that sense of just cutting taxes and not making the investments that are required to generate the new industry.
We are not going to save Oshawa with tax cuts. We are going to save it by rebuilding that plant, by supporting investments in that plant, supporting training for that plant and building a future in that plant, which is about where the auto industry is going.
The side opposite says environmental regulations kill the auto industry. The fastest growing auto sector in the United States right now is the electronic private vehicle market. Guess which state is growing that market? It is California, a state with a carbon tax and strong environmental regulations. In fact, that is what is driving those sales. It is getting factories, startups, investments and auto plants with a future, not just on the horizon but arriving day by day in that part of the world.
It was not tax cuts in California that did it. It was smart investment by the private sector, paired with good, strong government policy, combined with a highly-trained workforce and a forward looking set of government policies, which include putting a price on pollution. That has delivered security.
Indiana and Michigan did not do that. They have been cutting taxes. They have been supporting a president who put in the very same steel tariffs that we are talking about here. GM said today in Reuters, when announcing the cuts in the United States, that the American move to put tariffs on steel and aluminum cost GM $1 billion in the United States. That is the dynamic we are dealing with here.
For the people of Oshawa, let us be very clear. This government, all of Canada, all of the Parliament of Canada are here for them tonight, but more important, we will be here with them next week, next month, next year. We see a future in the plant. We see a future in the city, in the region and in the supply chain. We know the investments we are making in the auto sector are going to drive that change.
Therefore, when we talk about the three bus companies I mentioned, the one in Quebec, the one in Manitoba and the in one Alberta, when we ask their leadership what has made the difference, it was the investment in infrastructure by our government. It has allowed Toronto, for example, to have the youngest bus fleet ever and to lead the country in ordering and delivering electronic buses. That has given those companies the platform not just to provide clean transportation for citizens in our country, but a platform to take on the world. As I said, BYD in Edmonton is selling thousands of buses into China.
That is creating good, strong, sustainable jobs, but, again, it is an investment in technology. It is an investment in education and in training. It is changing EI to ensure the training programs support lifelong learning. It is about investments in the auto sector, but most important, it is about investment in Canadians. It is why we have created 500,000 full-time jobs, 700,000 full-time and part-time jobs, if the member opposite wants clarification. It is why we have one of the fastest growing economies in the G7 and why our government is committed to the plan we put in place since being elected.
We are growing the middle class, working hard to ensure those people who are close to joining it get the support they need to get across that line and ensuring every city in the country, from Oshawa to Ottawa and every city in between gets the support it needs to build an economy into the future that not only talks about their needs but the country's needs.
I am proud of what our government has done, but I know we have hard work to do in Oshawa. I hope to goodness the side opposite joins us in this fight and does not simply trade it away for a few tax cuts.
:
Madam Speaker, I want to thank the hon. parliamentary secretary for splitting his time with me.
I want to start by saying how deeply distressing it is to lose jobs in any industry at any time, and we know that families are suffering and individuals are faced with great uncertainty. We have seen job losses in the past in industries or sectors where people suddenly lose their jobs and overnight a government has wanted to respond. Therefore, I want to talk about the things that governments have done in the past that did not work. I want to come to that later.
I want to focus first on the irony of something that we might generally call “disruptive technologies”. It brings us back to thinking about a 2006 documentary, which is ironic as we stand here tonight as the clock ticks toward midnight. There was a 2006 film that was enormously popular, a documentary called Who Killed the Electric Car? It documented efforts back in the mid-1990s by the State of California to pursue zero-emission vehicles, both because of the acute health impacts of smog in the Los Angeles area and the climate crisis, in order to move us away from the dependence on fossil fuels.
Who Killed the Electric Car? is a fascinating story of the development of the EV1, an electric car made available at the behest of government pressure. It was manufactured by General Motors, and the industry fought that electric car. General Motors bought back every EV1 to destroy it. Therefore, Who Killed the Electric Car? ironically dealt with an early effort to convince General Motors that the future lay with electric vehicles. This was pushed back by those in the big three who wanted to continue with the internal combustion engine.
Earlier in debate tonight, it was mentioned, when I put it in a question for one of my friends in the Conservative Party, that the Oshawa closure was anticipated, that more than year ago General Motors said that it would be moving away from the internal combustion engine, wanting to move toward zero-emission vehicles, electric vehicles, and that we did not prepare for that in Canada. We did not start thinking about how we would protect those jobs in Oshawa. The response by my Conservative colleague was to say that consumer choice would rule, that people would buy what they want to buy.
Let us revisit this. In Canada and right now in the year 2018, the move toward electric vehicles is not a result of governments demanding it. If anything, the Trump administration is moving in a different direction. The move to electric vehicles is a result of a disruptive technology that is better than the one we now have. In the face of this, there were electric vehicle rebates put in place by the former government of Paul Martin. They were eliminated at the federal level by the government of Stephen Harper and, to my bafflement, they have not been brought back by the new Liberal government, which still needs to embrace every possible tool in the federal tool kit to have anything that looks like a plan to fight climate change. We have very little that has been done on electric vehicles by the current government federally, but it is true that disruptive technologies do not really need government help. It really helps if disruptive technologies are not obstructed by government efforts to prop up industries that are on their way out.
This is very similar to the problem we are facing in Canada right, where we want to pretend that there is a future for the oil sands. There may be a future for the oil sands, but not in mining bitumen for fuel. The future for the oil sands might be in mining bitumen for petrochemical industries for other products, but the reality is that disruptive technologies happen very fast and if we were not subsidizing fossil fuels as much as we are, we would be seeing much more uptake of renewable energy.
Let me just quickly describe historical examples of a couple of disruptive technologies, so they will resonate. When the automobile, the Model T Ford, came along—ironically again this is an automobile example—the horse and buggy disappeared. There were not organized lobbies in those days for people who made horse whips and buggies and people who drove the horse-drawn carriages. The disruptive technology was simply more attractive and better. There was an industrial revolution to take up the individual car and it took place within a decade.
There is an even earlier example, from the 1850s. In the 1850s, every household was lit by lamps burning whale oil. We were not yet running out of whales, although the damage done by the whaling industry was devastating on specific species. The whale oil industry did not end because of a public movement to stop the killing of whales for oil. After we had discovered coal, the whale oil industry was done in when a Nova Scotian, Gesner, figured out he could adapt that product into kerosene, which burned brighter, was cheaper and was a disruptive technology that ended the whaling industry.
There is an interesting thing about these disruptive technologies, which has been demonstrated by Amory Lovins out of Rocky Mountain Institute, who has written books on this that I recommend to members. He pointed out that the price falls for something before the demand falls. The current drop in oil prices has a lot to do with the fact that we are moving away from fossil fuels.
The larger context needs to be remembered when we look at these things. Amory Lovins actually has a classic photograph of the Easter parade in Manhattan, with a caption like “Can you see the car?”, and there is one Model T Ford somewhere in the background. Then 10 years later, he asks, “Can you spot the horse and buggy?”, because at that point, the streets are clogged with cars.
When we look at this, we have to recognize that General Motors is now making a decision, because the future is moving and General Motors does not want to be left behind. The future is moving to electric vehicles. The Canadian government should not want to be left behind. We need to assist individuals in moving to electric vehicles and insist on it. We need EV charging stations to be consistent across the country. I noticed that in the budget update we received last week there is a reference to one section of highway in Canada that is getting electric vehicle chargers.
The Government of Canada has the largest purchasing power of any purchaser in Canada. It should decide not to buy any cars with internal combustion engines and only buy electric vehicles. That drives the marketplace and that gives us a chance to compete. When we look at what is being manufactured in Oshawa, we should make sure those jobs are protected, but not through manufacturing internal combustion engines. Should workers be building windmill components there? Should they be building electric vehicles there?
We need to bear in mind the principle of just transition for workers. I turn to the situations I can remember in which lots of workers lost their jobs all at once in Canada, and to the really poor responses of government.
Certainly one of the worst I can recall involved Hawker Siddeley. Being from Nova Scotia, I remember it clearly, as my friend from would, as she mentioned earlier in debate tonight that she is also from Cape Breton.
When Hawker Siddeley decided to close its steel mill in the late 1960s, the government panicked and decided it could not lose all those jobs and that it would buy the steel mill. I remember Gordon Ritchie telling me once that he had advised Allan MacEachen that it would be cheaper if every year the government had a helicopter hover over the doors of the steel plant to drop a bag with $60,000 for every worker, telling them all to go home for the year. That would save the taxpayers of Canada a lot of money. As I recall, Allan J. MacEachen told Gordon Ritchie, “That is probably true, but this is an election year.”
The result of that foolish decision was the creation of the largest toxic waste site in Canada, which took $400 million to bury. It was never cleaned up.
Another poor example of government response was when we lost our North Atlantic cod fishery, which was destroyed by bad Department of Fisheries and Oceans policies. I could go into that, but simply put, our fishery was destroyed by DFO mismanagement.
The response to the individual fishers was to give them new jobs. The department was going to train them up for something new. What did DFO think of? I remember the slogan, “Trade the fish net for the Internet”. A lot of these fishers, who were decent, hard-working people, had never completed high school. “Trade the fish net for the Internet” became such a cruel joke.
If we are serious about just transition for these workers, we should start figuring out what just transition is going to really look like. We have trained-up people who are some of the best workers in Canada. Can we train them up for other jobs, like the new clean-tech jobs? By the way, we have massive shortages of skilled people in many other sectors. Can they be retrained to work in the mining industry or to build different components right in Oshawa for things we really need?
We must not abandon these workers. We do not protect these workers by destroying their children's futures, just as we did in creating toxic waste in the Sydney tar ponds that killed not only the workers but their children. We do not support these workers by letting their grandchildren die by clinging to fossil fuels and the internal combustion engine. We move into the future.
:
Madam Speaker, I am truly glad to rise today to speak to this very sad situation. Talking about cars is a joy, but it is unspeakably sad to learn, as we did today, that 3,000 Ontario workers will be losing their jobs. It is appalling.
I said it is a joy because cars are one of humanity's guilty pleasures. I am 55 years old; I was born in 1963. When I was younger, I dreamed of owning a Duster with big tires and side pipes. That was my dream for years. I have been driving a Prius for the past 17 years, and it may not be terribly exciting, but it is the right thing to do. The problem with the Prius is that it is imported, so it does not really support Canadian industry. The Oshawa plant that will be closing its doors has been open since 1930, if memory serves. People have been making cars in that part of the country for a long time.
Which vehicles are made there today? They make the Chevrolet Impala, a small police car. I have had one as a rental car on occasion, and it is pretty nice to drive. Surprisingly, it is relatively good on gas. When the speedometer was showing 110 or 115 kilometres an hour—yes, I drive 15 kilometres over the speed limit—the car used 6.7 litres per 100 kilometres, if I remember correctly. That is pretty good, but that is not the current market trend, as my Conservative colleague said. People want big cars and SUVs. It is too bad, since we need to think about the environment right now, but that is the market trend.
The GM plant manufactures the Impala, the Cadillac XTS and the Equinox. Anyone, including the , can see that those models are on their last legs. Those old models are not very trendy. The Chevrolet Equinox probably still sells well, but it is definitely not the car of the future. Everybody knows that everything is built on platforms. I do not know the name of the platform used to manufacture the Impala and the Cadillac XTS, but it is a platform that has reached the end of its life cycle.
My colleague from talked about the Chevrolet Volt. That car was manufactured in a plant in the United States that also shut down. I do not think that the closure of the American plant is an indication that hybrid vehicles have no future. The reality is that the Chevrolet Volt is built on the Chevrolet Cruze platform. The Chevrolet Volt is a hybrid of the Chevrolet Cruze. It is not the plug-in hybrid technology that is being abandoned, but the look of the Volt. Anyone who knows a little about cars will notice the similarities between the two, particularly with regard to the way the cabin is built. Only the look of the Volt is changing. The car will eventually be back in a different form. Obviously, that is what is intended because it was a great commercial success.
When I bought my first Prius in 2001, everyone laughed at me, even Jacques Duval. Today, he is a great supporter of the Tesla, but at the time, he said that these cars were ridiculous and that they were not going anywhere. Toyota gambled on hybrid vehicles and won. That is why we are proud to know that some Toyota hybrids are built here in Canada. Hybrid cars popularized the idea of driving a vehicle powered by something other than a combustion engine.
The Chevrolet Volt is a commercial success. Quebeckers love that car. The Chevrolet dealership in Rawdon is the top dealership in North America. It is no doubt the General Motors dealership that sells the most cars like the Volt, the Sonic, or perhaps the Sprint, and the Bolt, both by volume and per capita. It gets the lion's share. Many Ontarians buy from that dealership because Quebec offers a lot of incentives for purchasing an electric vehicle. The Volt is a major seller, and I find that reassuring. In my opinion, that model will come back on another platform.
Canada's auto manufacturers always end up with the short end of the stick. Having spoken to workers' groups and representatives of Canadian manufacturers, I can see that companies are fond of describing themselves as international players. They do not want to say that their made-in-Canada cars are better than the others. They do not want to get into regionalization. As members can imagine, this would not be beneficial for them. At the very least, they do not see it as a positive.
We have to do this, at least as much as our trade agreements allow us to. We should be proud of what is manufactured here. We should be promoting the vehicles manufactured by our workers.
Earlier I said that a long time ago, in 2003, Jack Layton pushed for a plan, a vision, to renew Canada's automotive sector.
I understand that Canadian auto workers look down on Japanese vehicles or other vehicles that come from elsewhere. Unfortunately, up until now, the electric vehicle movement was essentially limited to imports.
Our relationship with the auto industry in general is not one of equals. It is the epitome of cynicism. If I look at the notes we had on GM, it would seem that bailing out companies is inevitable. Two days later, the boss gives himself a bonus before closing up shop. In this case, the government gave GM a $14-billion tax break just last week.
In the meantime, we cannot be so self-centred as to ignore reality. GM is facing challenges. According to the numbers I saw and the consultations I have held, the company is very profitable. It is in the process of downsizing. We see it quite often. These companies are posting profits, but in this case it was not enough, because 2,500 jobs are being cut in Oshawa. It is cynical. It is even more so when we consider that it was just given a lovely $14-billion gift. The company got financial assistance when it needed it, and now it is closing its doors.
That said, what I want to focus on is the pride we should take in what we make. In Canada, we manufacture vehicles that may seem a bit outdated, a bit last-generation. However, not many people know that we also make cars like the Toyota Corolla, a top seller with broad appeal. Normally, the plant should not have to close. Of course, the Cruze is a whole different story, because the platform needs to change.
In Canada, we manufacture the Toyota Corolla, the Toyota RAV4, the Lexus RX 350 and the Lexus RX 450H, which is the hybrid model. We also manufacture the RAV4 hybrid. Not many people know that.
Once the car is in the dealer showroom, is there anything preventing us from saying that the car was built in Canada or that it is a modern, environmentally friendly car? I would think that would be a plus, yet nothing is ever said about that.
The last time I went to California, I drove through strawberry country and saw signs saying “America's best strawberries”. Americans are always tooting their own horn. In Canada, we never brag about what we do. I think that is a bit of a shame.
Toyota manufactures its cars here because we have good workers who do an excellent job of assembling cars and who know how to do it. They know very well that they are going to sell those cars to their neighbours, and they want them to be made right. We can be proud of our workers. Unfortunately, I do not know why we are so embarrassed about this.
I want to point out that there are a lot of RAV4 hybrids in the government's fleet. This is a good thing, and I am proud of it.
In addition to those three GM vehicles, we also make the Ford Flex, which, I must admit, will soon be discontinued. This model was quite unique, but it is clearly not a car of the future. The Ford Edge and its equivalent at Lincoln, the MKT, are interesting vehicles, but as far as I know, they will soon be discontinued. We have been making these cars for quite a while, so this is a bit worrisome.
As a politician in Ottawa, I do not find it reassuring to know that we make the Ford Flex, the Lincoln MKT and the Ford Edge. These are old models. We also make the Ford GT, an extremely prestigious car with a short run, but I still think it is worth pointing out that skilled Canadians hands manufactured such a prestigious vehicle.
Before I talk about Chrysler, I need to talk about Honda, which manufactures the popular Civic. Something tells me that this model is not going anywhere. I would be shocked if there were problems at that plant. We also manufacture the Honda CR-V, a much larger, but extremely popular, model. I have no concerns about this plant either, although I cannot say the same about Ford's.
Next, I wanted to talk about Chrysler, for I am not at all reassured, given that in Brampton, a suburb of Toronto, the price of a bungalow keeps going up, not to mention all the rumours going around. I am pretty sure that neither management nor the union would disagree with me on this: the Brampton plant just completely renovated its paint facility. I think tens of million of dollars were invested in it.
That is where the Chrysler 300, the Challenger and the infamous and aptly named Demon are manufactured. I think the Demon has 700 horsepower under the hood, which is about the same as eight Honda Civic engines. It is a beast. These are limited editions, and they can be very exciting and quite beautiful. However, they are relics of transportation prehistory on our planet, since they are powered by engines that produce an appalling level of pollution.
The Dodge Charger, Dodge Challenger and Chrysler 300 are three very nice cars that many young men might find exciting, but honestly, we have to admit that their future does not look bright.
Now we come to the model that interests me the most. Yes, I am interested in the Dodge Caravan, but I especially like the Chrysler Pacifica. My colleague from mentioned the movie Who Killed the Electric Car. I went to the Windsor and Detroit area and had the chance to see the sites that are interesting to people who are into cars.
First, I saw the first versions of the Pacifica, which is delivered with a rechargeable hybrid engine. It is a regular car for a regular family. I agree that it could be less expensive, and could be better supported, but it is equipped with a rechargeable hybrid system.
That means it is not unreasonable to think that a family living in a Toronto suburb with a Pacifica Hybrid could leave their house, drop off the children at day care and school, go to work, park the car, not plug in, all without using a drop of gas. Then when they go to visit grandma in Muskoka, the engine will start. At the end of the day, the family will fill up the gas tank once every two months. That is not bad as far as I am concerned. It is progress.
Has anyone really ever heard of this vehicle, though? It would appear that even the government has never heard of it, because I have been keeping an eye on it for two years now. There were two vehicles here in front of Parliament for the Canada 150 celebrations. This year, another official vehicle was used for the Canada Day celebrations and it ran on gas. What a bad idea.
There was no shortage of tourists that could have been shown those vehicles and who would have thought to themselves, “It's probably built in Windsor and it's all electric”. People can tell when a car is electric because they do not hear it pull up. It runs clean without exhaust emissions. We will not talk about it though. It is far too great of a Canadian success to actually talk about.
I visit Windsor to see that plant and that truck. People who like cars and who visit Windsor also go across the way to Detroit, Motor City, while they are there. Detroit is home to the headquarters of GM and the big towers that are right across from Windsor. Detroit is also home to the famous plant where the Ford F-150 is built.
I was therefore pleased to learn, even though this still surprises me, that the Ford F-150 is the best-selling vehicle in North America. It outsells the Honda Civic and other brands of pickup trucks.
There is a reason for that, however. A lot of people need a pickup truck, and that is fine. I have a few doubts about my neighbour in Longueuil who has a really big pickup and, as far as I know, does not have to tow a trailer full of tools, a fifth-wheel trailer, or anything like that. Does he really need a truck like that to go to Jean Coutu? I have my doubts. It seems to me that it may not be a very good choice, but overall it is top selling vehicle.
I was delighted to see it at the plant and to see a plant like that one. I have not visited plants in Canada, but I can say that the Ford F-150 plant in Rouge River is a marvel of automation. The employees there work in a lab-like setting with gloves and little mitts. It is a model factory very much inspired by the man who invented the assembly line, Mr. Ford himself. I visited that place, and I was overjoyed to see that the gas tank is made in my riding, in Boucherville, by Spectra Premium Industries.
Obviously, this will have a huge impact on jobs and the economy. Anyway, I took a little detour to go see the Henry Ford Museum of American Innovation. While there, I saw GM's famous EV1, the electric car that debuted in the 1990s through Saturn. That model was destroyed, put out of commission by the oil industry. That was such a shame, and I have never really forgiven GM for making something so wonderful and then selling out to the oil lobby.
Today, in 2018, the Chrysler Pacifica hybrid is a vehicle that is well suited to the needs of Canadian families. Unfortunately, there is no sense of pride, no Canada-wide incentives, for this vehicle. We also do not have a vision for what we could do to improve Canada's automotive sector.
Unfortunately, the dealers that have these cars do not promote them. They do not want to sell them and would rather sell the regular Caravan minivan, which carries a profit margin of $1,200. The Pacifica does not have such incentives, and the margin is just $200 or $300. They would rather not convince a customer to buy a $50,000 van to earn just $300.
What this means is that I am worried for the Pacifica Hybrid, a vehicle than can be plugged in and that is manufactured in Windsor. This is the most futuristic vehicle ever manufactured in Canada, and I think that if we do not do something, we will lose it. We need to wake up, have some vision and be proud.