Thank you, Martin (Brassard, Vice President, Director General, Landing Gear, Héroux-Devtek), and good morning everyone.
Let me begin by congratulating our hosts, Héroux-Devtek, on the construction of this magnificent building. I know last fall, you consolidated your engineering and design functions and your testing lab here.
To me, this place represents the future of Héroux-Devtek. I know company officials feel the same way.
With more than 70 years of accomplishments to its credit, your company makes me proud—both as the Minister of Industry and the Minister responsible for Quebec.
Think for a moment about how far it has come since 1942, when Eugène Héroux began tooling aircraft parts in a garage on Chambly Road in Longueuil.
Over the following decades, the company that bore his name came to stand for Canadian manufacturing excellence. Then, by the late 1960s, you could say it saw its fortunes skyrocket.
As most of us know, the company produced landing gear for the Lunar Modules of NASA's Apollo space program. From then on, it had a distinguished place on technology's cutting edge.
Today's announcement, aimed at supporting research and development, holds the promise of even greater things to come.
That is why I am extremely pleased to announce a repayable contribution of up to $48.9 million through the Strategic Aerospace and Defence Initiative for an R&D project by Héroux-Devtek.
This project will see the company use its manufacturing experience and R&D capacity to become more competitive by developing and integrating new technologies into the design of its landing gear systems. Héroux-Devtek will increase the energy efficiency of its products, making them both lighter and higher performing.
The return on this investment will be felt throughout the sector. Both private sector and academic R&D collaborators, as well as a large number of Héroux-Devtek's Canadian-based suppliers, will benefit from this project.
These are exactly the kinds of projects that SADI was designed to promote. Through this program, our government is helping Canadian aerospace companies become even more innovative and competitive.
To date, we have committed $890 million to fund 29 advanced research and development projects.
As announced in Economic Action Plan 2013—and as part of early federal action in response to the 2012 Aerospace Review headed by former cabinet minister David Emerson—we are going even further to support this proven program.
Over the next five years, our government is backing SADI with nearly $1 billion in funding. Some of this money will go toward creating an Aerospace Technology Demonstration Program, which will support large-scale technology projects that exhibit strong commercialization potential and support collaboration among firms and with research institutions.
Also in response to the Emerson review, we will consult stakeholders on the establishment of a National Aerospace Research and Technology Network. I encourage all of you to play an active role in feeding into this consultation.
SADI is about innovation and commercialization. We know innovation drives growth, improves productivity and raises our living standards. And it is the best way for a high-wage economy such as ours to compete with low-wage countries around the world.
Few sectors understand that better than Canada's aerospace and space industries. Together, they contribute over $22 billion to the economy and employ close to 70,000 people in highly skilled jobs.
Just one week ago, my colleague, Minister Flaherty reiterated our government's commitment to the manufacturing sector in Economic Action Plan 2013. Manufacturing has always been a priority area, but it bears repeating that manufacturers have a partner in our government.
All told, there are nearly 1.8 million manufacturing jobs in Canada, with 60,000 positions in research and development. Manufacturing is the top sector for foreign direct investment and provides more than 63 percent of Canadian merchandise exports.
Today's manufacturing lies where innovation and fabrication intersect, where creative ideas are turned into commercial opportunities. Manufacturing punches well above its weight in terms of research and development, accounting for almost half of all R&D done in Canada.
Quite simply, this is not your grandfather's manufacturing sector. It's high-tech, leading-edge and highly skilled.
And that's critical, because in tomorrow's economy what really counts is grey matter—the ideas, innovation and ingenuity that create new technologies, new products and new ways of doing things.
Of course, neither Canada's manufacturers nor our economy as a whole operates in isolation. We face an uncertain global economy.
The U.S., our largest trading partner, is struggling with massive debt and modest growth. And the euro zone remains in recession.
In times like these, the most important contribution a government can make is to bolster confidence by maintaining a sound fiscal position. And that's just what we have done—by paying down debt, lowering taxes, reducing red tape and managing prudently.
The result? Canada has dealt with the economic downturn better than most.
We are one of only two G7 countries to have recouped all of the jobs lost during the last recession.
Our debt-to-GDP ratio is the lowest in the G7. And we have set out a clear plan to return to balanced budgets.
All of this progress has not gone unnoticed. Canada is in an enviable position among the world's industrial economies.
Now, we stand among just a handful of nations the world over with a triple-A credit rating. And Government of Canada securities are among the world's most sought-after investments.
This means that investors here and abroad are confident in our government's ability to manage the economy now and into the future.
Beyond establishing sound economic fundamentals, our government has introduced significant measures that benefit manufacturers.
We reduced the corporate tax rate from over 22 percent in 2007 to 15 percent today. We have removed the federal capital tax.
And we are eliminating tariffs on machinery and equipment, making Canada the first tariff-free zone in the G20.
This will represent savings of almost $450 million a year for Canadian businesses.
We have reduced red tape so that companies such as Héroux-Devtek can spend less time filling out forms and more time running their business and creating jobs.
Complementing these measures, Economic Action Plan 2013 proposes an additional $1.4 billion of tax relief through a two-year extension of the accelerated capital cost allowance for new machinery and equipment. This will enable manufacturers to restructure and retool and, ultimately, become more productive and more profitable.
More than 25,000 businesses in the manufacturing and processing sector have taken advantage of this initiative since it was first introduced in 2007. It has provided positive results in terms of investments and we are pleased to be extending it.
Our plan will also increase support for small-business owners by raising the Lifetime Capital Gains Exemption to $800,000 and indexing it going forward. This will make it easier for owners to transfer their family businesses to the next generation of Canadians.
Because manufacturing is a high-tech industry, we need people with the skills and the know-how to be able to succeed. And not just on the factory floor.
Today's manufacturing is also about the information technology specialists in the front office, the designers and engineers and accountants down the street, and the logistic experts and marketing staff around the world.
That's why our government has increased support for skills development.
We have introduced the Canada Job Grant, which could provide $15,000 per person to ensure Canadians are getting the skills employers are seeking. We have expanded and extended the Hiring Credit for Small Business for one year. This will save 560,000 small businesses about $225 million in 2013—money they can reinvest in new jobs.
We have created a targeted initiative for older workers to help them upgrade their skills and remain part of the workforce for as long as they want.
We are moving on foreign credential recognition, including an additional $5 million over six years to strengthen and speed up assessment.
And we are providing support to groups that are under-represented in the job market, such as the disabled, our youth, Aboriginal people and new Canadians, to help them find good jobs.
To ensure that our manufacturers have global markets for the goods they produce, we have also undertaken the most ambitious trade expansion plan in Canadian history. Since 2007, the Global Commerce Strategy has led to new trade agreements with nine countries, representing more than 100 million potential customers.
We have also made progress in negotiating foreign investment promotion and protection agreements with 16 countries. We have deepened trade ties with the largest, most dynamic markets in the world, including Brazil, China, India, Japan and the European Union.
This ambitious new trade strategy is important. It opens doors, creates opportunities to increase Canadian exports to global markets and helps position Canadian manufacturers for long-term prosperity.
So, there you have a number of initiatives on a number of fronts. Taxes. Technology. Trade policy. And training. All critical to the success of Canada's manufacturing sector.
Ladies and gentlemen, since 2006 our government has been a committed partner to manufacturing. Economic Action Plan 2013 builds on that partnership, helping manufacturers compete. Helping them grow. And helping create opportunities for Canadians from coast to coast to coast.
We know that this sector has been through some rough times. But we also know that if we each do our part, its future can be bright.
For government, that means putting in place the economic framework that allows companies to do what they do best—invest in innovation, create jobs and generate growth.
Because at the end of the day, Canada's success in aerospace and space will not depend on what governments do—it will depend on what companies like Héroux-Devtek do. They are the job creators. They are the innovators. And they are the future of advanced manufacturing in Canada.
So congratulations again to everyone here at Héroux-Devtek.
I wish all of you every success for the future.
Thank you.
