:
Thank you, Mr. Chairman.
[Translation]
Thank you, Mr. Chair.
Thank you for the opportunity to make this presentation before the committee today. I am joined by my Deputy Minister, John Knubley, as well as other individuals whose names you just mentioned.
[English]
I'm pleased to be able to speak to you today about much of the important work that our government is doing, and how we have delivered on what we've said was the top priority for Canadians in this session of Parliament, which of course is creating jobs and economic growth. This work begins building the groundwork for our economic future, which I believe is a digital future for Canada.
Last month, in Waterloo, I was pleased to launch Digital Canada 150, an ambitious plan for Canadians to take full advantage of the opportunities in the digital age. It's a plan that sets clear goals for a connected and competitive Canada by the time we celebrate our 150th birthday in 2017. Digital Canada 150 is based on submissions that were received by thousands of Canadians during consultations that were held all across the country. There are five pillars, 39 new initiatives, and one national plan for 35 million Canadians. It's a broad-based plan that will guide Canada's digital future, and I'll give you one example.
In Digital Canada 150, we connect over 280,000 households with access to high-speed Internet at five megabytes per second. That's fast enough to stream high-definition video, enable e-commerce, and connect Canadians with educational and career opportunities in all parts of this country. It's a bold plan when you consider that Canada is the second-largest country in the world in size, but 37th largest in population. To be able to tie us altogether with that digital infrastructure is something that I think we should all be very proud of.
Our plan is also based on and has been praised for its vision. Google Canada called Digital Canada 150 a plan that “will accelerate digital adoption and technological innovation among Canadian businesses, which is essential if we are to remain a global economic power.”
[Translation]
The Federation of Canadian Municipalities published the following statement:
The rural businesses, communities and residents need sufficient bandwidth to participate in today's global economy and today's announcement is good news for Canadians in those regions.
[English]
Finally, OpenText, Canada's largest software company, called Digital Canada 150 “the foundation for a connected and competitive Canada”.
Of course, connecting Canadians also involves making the right decisions to ensure access to wireless spectrum. Canadian consumers increasingly rely on their iPhones, their iPads, their smart phones, tablets, and BlackBerrys, to stay connected with loved ones, to work, to organize their businesses, to organize their studies, and to use it for every aspect of everyday life.
In March, I announced the results of a 700-megahertz spectrum auction, which is the highest quality spectrum ever auctioned in Canada. A 700-megahertz spectrum travels longer distances, it requires fewer cell towers, penetrates building walls, elevators, and even through underground parking lots, which of course means better connectivity, fewer dropped calls, and more effective use of technology.
As you will no double remember, consumers were of course the big winners following the auction results. Ten Canadian companies, in over 100 rounds of bidding that lasted five weeks resulted in a total of 97 licences being awarded to eight Canadian companies. Quality wireless spectrum was acquired by Rogers, Telus, and Bell, with a fourth wireless player obtaining spectrum capacity in every region of Canada. The total revenue generated from this auction was $5.27 billion, proving the critics wrong and earning the greatest return ever for a wireless auction in Canada.
[Translation]
That was one of the many strategic decisions made by our government in the wireless sector in order to achieve a very clear objective—that of delivering more choice, lower prices and better service for Canadian consumers.
[English]
In pursuit of this goal to offer consumers more choice, lower prices, and better services, we have taken deliberate action on a number of fronts in the wireless sector.
[Translation]
First, we will not approve any spectrum transfer request that decreases competition in our wireless sector.
Second, we liberalized foreign investment rules in our telecommunications sector.
[English]
Third, we also believe that communities need to have more say in how cell tower locations are identified and how they move forward. That's why we introduced new rules to require wireless companies to share cell towers whenever they can, so that fewer towers are needed in our communities. We, of course, also mandated community consultation on all cell tower construction to ensure communities have a voice in how new cell towers are offered and introduced into their communities. The Federation of Canadian Municipalities welcomed this and joined me at my announcement. These changes are already making a real difference in communities all across the country.
We've also capped wholesale wireless roaming rates to promote greater competition. We've also empowered the CRTC to impose financial penalties on wireless carriers that don't play by the rules. In 2015, we will also be holding the 2,500-megahertz spectrum auction with rules specifically designed to benefit consumers, particularly those Canadians who live in rural communities.
Simply put, we are connecting Canadians like never before both with our broadband strategy and with our wireless policies. Of course, Canada's information and communications technology sector is one of Canada's key economic drivers, generating $155 billion in revenue each year, contributing over $67 billion to Canada's economy, and creating over 570,000 well-paying jobs all across this country.
To sustain these considerable contributions, our government is committed to ensuring our employees, students, researchers, and businesses all have the skills and opportunities that are necessary to succeed in our global economy.
[Translation]
Digital Canada 150 will invest $200 million to help small and medium-sized businesses adopt digital technologies. An additional $300 million will be invested in venture capital for digital companies.
Forty million dollars will be allocated to support 3,000 internships in high-demand fields. An additional $100 million will be provided in funding for the Canada Accelerator and Incubator Program. In total, $36 million will be earmarked for the Computers for Schools program, so that public libraries, not-for-profit organizations and aboriginal communities can be provided with the equipment students need to access the digital world.
[English]
Recently, I travelled to Silicon Valley, just south of San Jose and San Francisco, to discuss Canada's digital advantage with some of the world's leading technology companies, including Google, Twitter, Microsoft, and Facebook. There I hosted a digital innovation forum where I partnered with Canadian entrepreneurs to sell Canada as the Silicon Valley of the north. I was told first-hand how Canadian companies across Canada are leading digital technology innovation and positioning Canada as a top investment destination.
Mark Barrenechea, who's the CEO of OpenText, Canada's largest software company, put it this way. He said that they choose Canada because of the highly educated workforce, Canada's strong university partnerships, and our robust and innovative start-up communities. “The digital economy is the engine that will drive [Canada's] growth and prosperity. Technology and innovation is the fuel that will power this engine”.
Of course, our government understands that a strong digital economy requires strong protections for Canadians when they surf the web or shop online. In this Parliament, we've tabled the . Our digital privacy act will require organizations to inform consumers when their personal information has been lost or stolen. Companies that fail to do so, or deliberately break the rules, will face fines of up to $100,000.
[Translation]
The new measures also establish stronger rules to ensure that vulnerable Canadians, particularly children, fully understand the potential consequences of companies collecting and using their personal information.
The Digital Privacy Act will also vest in the privacy commissioner improved powers to take the necessary enforcement action and hold offenders accountable.
Before the bill was introduced, I met with the acting Privacy Commissioner, Chantal Bernier. I want to thank her for supporting the measures our government has implemented.
[English]
Here's what the Privacy Commissioner said about the . She said that “there are some very positive developments for the privacy rights of Canadians”, that she is “pleased” that the government has addressed issues such as breach notification, and that she welcomes the proposals in this bill. Of course, this committee will have an opportunity to study that legislation and offer suggestions on how the bill might be improved as we go forward.
On science, we are working on a renewed science and technology and innovation strategy, a long-term plan to position Canada as a globally recognized leader in research and business innovation. We're making record investments, as a country, in these areas to push the boundaries of knowledge, increase prosperity, and improve the quality of life of Canadians.
As a result, Canada leads the G-7 in research and development investments at universities, colleges, and in research institutions, and has one of the most educated populations in all the world. Canadians who witnessed the extraordinary success of Commander Chris Hadfield as commander of the International Space Station and his mission will know that Canada has an extremely proud history of accomplishment in space. We were the third country in the world to put our own research satellite into orbit and the first to have our own communications satellite.
Earlier this year I announced a new space policy for Canada, a framework that will guide our future in space. I was very pleased to have the support, I must say, of not only Commander Hadfield, and current and past astronauts, but also , a colleague of ours in the House of Commons to whom we reached out prior to tabling this, who offered his support for our policy as well.
As we approach our 150th birthday in 2017, we want to ensure a strong and commercially competitive space industry that will continue to inspire Canadians for years to come, and of course, all the associated sciences.
[Translation]
Canada has a dynamic aerospace and space industry, which provides more than 170,000 individuals with highly paid positions, and it contributes over $27 billion a year to the Canadian economy.
The Aerospace Industries Association of Canada applauded our plan, saying that we have recognized the important role Canadian innovation and our proud heritage play in the space sector.
[English]
Chris Hadfield himself said, he's “glad to see the new Canadian government support for the space industry”, which will contribute to new jobs in the space economy.
On the auto sector, Mr. Chair, the auto industry is, of course, one of the cornerstones of the manufacturing sector of the Canadian economy. It contributes $16.1 billion annually to our economy, which represents about 10% of Canada's total manufacturing GDP. Our budget this year nearly tripled our investment in Canada's manufacturing sector, with an additional $500 million in support to Canada's automotive industry through the automotive innovation fund.
I'll give you an example of how this has worked thus far. Last year I announced a $72 million loan to transform Ford's Oakville assembly plant. Today that plant has the flexibility to produce 11 of Ford's high-volume, mid-sized vehicles, including the newly redesigned Ford Edge and the Lincoln MKX on one platform. This will make this plant one of only five Ford facilities capable of doing this work worldwide.
[Translation]
Sales have increased and are now 20% higher than they were during the recession. A recent report shows that our government is on the right track, with the Canadian manufacturing sector's revenue reaching almost $51 billion in the month of March—the highest it has been since 2008.
[English]
In conclusion, Mr. Chair, our government has promised Canadians that we would return to a balanced budget by 2015, and our government is working diligently to move forward with these measures and others to stand up for our consumers, to strengthen Canada's digital economy, and to boost our financial position through innovation and research. By focusing on these priorities that I've outlined here today, our government is delivering the results for Canadians, for which we asked the mandate to deliver on.
[Translation]
I would now be happy to answer any questions the committee members may have.
[English]
Thank you very much for your time.
I am looking forward to answering your questions.
:
Coming from Winnipeg you know what great institutions look like when they're well organized. Of course, there's the Manitoba Museum with its brilliant display of the Hudson's Bay Company, the new Canadian Museum for Human Rights, which will be opening very soon, and of course the Winnipeg Art Gallery is a brilliant building. Winnipeg, certainly for a city of its size, is host to some of the great cultural institutions of Canada.
You're quite right, as we go forward to our 150th birthday—and part of Digital Canada 150 is about that—once you build the infrastructure and you connect Canadians, once you make it more secure, once you take advantage of the economic opportunities, and once government is acting in a more digital way, which are the first four pillars, the fifth one, which to me is the most fun one, the more interesting one, is you fill all of that with Canadian culture, Canadian content, and Canadian stories going forward to our 150th birthday. It's the responsible thing to do.
We have created the Canadian Museum of History, which was formerly the Canadian Museum of Civilization, given it a new mandate, $25 million new dollars. They have three million items in their collection, and over 90% of them are sitting in storage. We want to get that stuff pulled out of there and moving all across the country through museum partnerships in all the museums of all sizes in all parts of this country, so that local museums can tell stories of either local or national history, develop their own narratives but have access to those three million items in the national collection that are sitting in storage, and get Canadians thinking about, talking about, and building thematics that make sense for local museums all across the country.
Again, contrary to the partisan attacks, it's not us telling museums but giving museums access so that they can tell whatever story that they want to tell and get things moving around this country.
In a digital context, here's one thing that I'm most proud of. I was told about the Memory Project early in 2008, when I became minister. I got very frustrated by the intransigence of, at that time, the Department of Heritage and what it was not doing to support this project. Here is the project in simple form. It makes brilliant sense when you think about it.
In 2011, I believe it was, we sadly lost the last surviving veteran of the First World War. The average age of a World War II veteran today is 91, and the generation is sadly passing away quickly. We failed with the World War I generation to properly catalogue and tell their stories and to treat them as the treasures that they are for future generations.
The Memory Project came from the Historica-Dominion Institute, now just Historica Canada, and they had a very simple, very cheap but very effective idea. They said they wanted to work with veterans organizations and legions all across the country and go to them and reach out to veterans of the Second World War and invite them to tell their stories. They would go to them and digitize their stories, with a video camera if they were comfortable, or just audio if they were comfortable with that. They could tell of whatever aspect of their time in service that they were comfortable with, if it was their training, their time in battle, their time after the war, or maybe they met the love of their life, maybe they experienced the most traumatic loss of their life of a friend.
Whatever aspect of their service that they wanted to share, in whatever format they wanted to share it, they would go to them and they would meet and share the story, digitize it, protect it forever, and house it at the Canadian War Museum, which is also part of the Canadian Museum of History. They've done that now, and we've provided extra funding for that to make sure it was complete. Now they're extending it as well to the Korean War generation, from 1950 to 1953, and that generation is also of course getting older as well. We want to digitize and protect, and for a very small amount of money we've been able to do that.
Digital Canada 150 is not just about cell towers and PIPEDA and intellectual property law, it's greater than that. You build the infrastructure and you connect Canadians together. Why? To take advantage of the economic opportunities, of course. But most importantly for me, the great task of any government is always to leave this country more united and prosperous than the way in which it found it. It's the forever challenge of Canada, making sure that this country stays united and strong going forward.
We can't stay united and strong when young Canadians don't know our history, when we can't name our previous prime ministers, when we don't know the sacrifices that people have made, and we don't appreciate our collective history, not just our individual history. We need to be able to tell our stories one to another. That's why we built the history museum, that's why its a central piece of the Digital Canada 150 policy, to make sure that we're telling our stories to one another in a comprehensive way.
There's a lot to be said. Obviously, this is an industry that has had its challenges, but we, I think, have responded effectively as a government over the years to the challenges of Canada's auto industry. Of course, the Canadian taxpayers were very generous to the auto industry during the recession. The money has come back from those firms, largely. It is a real challenge, particularly when you counterbalance that with what we're facing in the United States. When the dollar is near par, that creates a real stress and challenge for Canadian industry. When, frankly, straight-up corporate welfare.... As the Government of Canada we have the automotive innovation fund, which is a repayable loan that is taxable, and it comes back to Canadian taxpayers.
There was an example in the state of Kentucky, just the one state, where $700 million in cash and a greenfield site were offered to an auto assembly-manufacturing plant to go to the state of Kentucky. That is a policy with which we should not and cannot compete as a country. What we can do is other things that are, in my view, more fiscally responsible, are more conservative, and more effective.
First is that we sign the Canada-Europe trade agreement, CETA, the Comprehensive Economic and Trade Agreement. CETA will create 500 million new customers for any automobile that's manufactured in Canada. That's an advantage for an auto assembler-manufacturer in Canada, which does not exist in the United States.
Canada has a 13% lower corporate tax rate here than they have in the United States. We also have, frankly, socialized medicine in Canada, a financial burden on firms in the United States that doesn't exist in Canada, which is a big economic advantage.
We have an educated and thoughtful workforce in Canada. You look at the Brampton plants of Chrysler and others that are operating past 100% full capacity, and they're turning out phenomenal, award-winning products around the world. Add to that the fact that we're twinning the Detroit-Windsor border crossing. We have the beyond the border initiative so that cars that are manufactured in Canada have easier access to the United States.
You take all those things together—support through the recession, lower taxes, the European free trade deal, advantages on social programs and training, making the border more seamless with the United States—all of that taken together, plus the automotive innovation fund, creates a very effective package of public policies that support industry, versus what's happening in Mexico or versus what's happening in the United States, where they're driving forward with greenfield sites, straight corporate welfare, driving to “right to work” states, in a way that frankly we can't compete with in Canada, and we ought not to, certainly on the financial side.
We have our challenges with the auto industry. It will continue to be a file that we'll have to watch going forward, but there are some good stats. The auto industry posted its best April sales ever with a 4% jump this year from April of last year. Chrysler recorded a rise in sales of 6%, its best April in over a quarter of a century. Nissan Canada posted a 30% sales gain in April. So we do have some good news from the auto sector. We're going to continue to be challenged because of the dynamic in the United States, but we'll react effectively because it's a critical part of the Canadian economy.