Remarks by the Deputy Prime Minister on investing in Newfoundland and Labrador’s clean economy

August 28, 2023 - Port of Argentia, Newfoundland and Labrador

I first want to acknowledge that we are gathered on the ancestral homelands of the Mi’kmaq and Beothuk.

I am so happy to be here at the Port of Argentia today. It was great to see with my own eyes what you are doing here.

I cannot emphasize too much the extent to which you—the people of Argentia, the people here right now—are at the centre of probably the most important thing happening in the world today. You are in the vanguard.

You are so close to becoming a global hub for renewable energy, to becoming a first mover in hydrogen. I’m very moved and proud to be here to talk to the people making it happen,  to see what you are doing, and to learn from you the things that we as a government need to keep on doing to make this happen, to help you get to the next stage.

We have heard about the investment of nearly $40 million to improve the flow of cargo just last month.

I would like to talk about where the Canadian economy is today.  

We have had a hard year with high inflation. The good news is inflation is coming down.

It was 3.3 per cent last month—that is down from a high of 8.1 per cent in June of last year.

Canada had the strongest economic growth in the G7 over the course of 2022, and both the IMF and OECD project that Canada will have the strongest economic growth in the G7 on average over the course of this year and next.

There are nearly a million more Canadians working today than when COVID first hit. That includes a record high labour force participation rate of 85.7 percent in July for Canadian women in their prime working years—supported by our Canada-wide system of early learning and child care.

At five percent, wage growth outpaced inflation in July—just as it has done for the past six months—and at just 5.5 percent, unemployment is near historic lows.

Since 2015, our government has helped to lift 2.3 million Canadians out of poverty.

And from $10-a-day child care to a new Canadian Dental Care Plan, we have strengthened the social safety net that millions of Canadians count on—all while ensuring Canada maintains the lowest deficit and net debt-to-GDP ratio in the G7.

Our economic plan is delivering for Canadians and it is fiscally responsible.

That is really important as we deliver major investments to build Canada’s clean economy and create great middle-class careers for people across this province, and from coast-to-coast-to-coast.

The race to build the global clean economy is the most significant economic transformation in the whole world since the Industrial Revolution—and here in Canada, here in Newfoundland and Labrador, this represents an incredible economic opportunity.

This province has the expertise, the remarkable workers, the wind and the resources that Canada—and the world—really needs right now.

Low-carbon nickel from Voisey’s Bay. Clean LNG. Energy powered by offshore wind.

And hydrogen produced right here in this incredible province by companies like Pattern Energy.

Newfoundland and Labrador is becoming a global hydrogen leader.

You are at the forefront, and I am so excited about that and so proud of you.

The agreement Canada signed with Germany last year—to provide clean hydrogen from Newfoundland and Labrador to help power the German economy as it transitions to clean energy—is proof of that.

Our government believes in the remarkable potential of Newfoundland and Labrador—and that has been a driving force behind so many of the major investments we have made in the future of Canada’s clean economy.

The [Honourable Seamus O’Regan, Minister of Labour and Seniors], talked about our suite of green industrial policy measures, of those tax credits that we unveiled in the Budget in the spring.

They include something really important for you, which is an investment tax credit for clean hydrogen–covering up to 40 percent of project costs—for investments in clean hydrogen that will help companies like Pattern Energy create great careers here in Newfoundland and Labrador.

We have been in touch with the people running this project—with Pattern Energy—as we finalize the details of that tax credit because we know it is important to be sure it works for this project and for people here.

The clean hydrogen tax credit is one of a suite of significant credits which are part of our $120 billion clean economy jobs plan.  This includes tax credits for clean tech manufacturing, electricity, and carbon capture, utilization, and storage.

These tax credits are giving businesses the certainty they need to make major investments in Canada, something we are seeing the proof of, right here.

And something we have done with our clean hydrogen tax credit - and across the suite of our clean economy tax credits—is to attach labour requirements to them.

What we are saying with these tax credits, and what we are saying to businesses and investors is:  if you want to take advantage of the maximum benefit of these generous credits, you need to pay your employees the prevailing union wage. You need to create apprenticeship opportunities.

Because as the global economy moves towards clean, low-carbon energy sources, the expertise of working people here in Newfoundland and Labrador is more valuable than ever.

Newfoundland and Labrador is going to be at the forefront of Canada’s clean economy and workers from across this great province are leading the way.

The years ahead are a remarkable opportunity for companies like Pattern Energy and for the people and community leaders I met here today.

There is a race right now to build these projects. Smart countries, smart leaders, smart communities around the world are competing for capital to be in the vanguard, to lead this new industrial revolution for the world. I am proud of the work people in Argentia have done to be at the forefront. I want you to know, the Government of Canada believes in what you are doing.

We are here to be part of that and to support that because that is so important for this community, for this province and for our entire country.

I have never been more optimistic about the future of Canada—about the promise of our amazing country than I am today—thanks to work of people like you.

Thank you very much.