INST Committee Report
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CHAIR’S FOREWORD
On September 11, 2001, the world witnessed a series of horrific terrorist attacks directed at targets in the United States of America. On that day, four jetliners were commandeered by Muslim extremists for suicide missions; two planes targeted the World Trade Center in New York and another plane targeted the Pentagon in Washington, D.C. An attack against another target (possibly the White House) was thwarted by passengers on the fourth plane; that plane crashed in a field southeast of Pittsburgh. Some evidence suggests that there were likely more acts of terrorism planned but aborted by the immediate grounding, or diversion to Canada, of all civilian aircraft in U.S. airspace on that day. Although a final or official tally of the loss of human life has not yet been made, it is known that approximately 4,000 people, including 24 Canadians, perished in these barbaric acts.
The terrorists aimed their hostilities directly at American symbols or centres of commerce, military power and democratic office; however, it is more accurate to conclude that it was the freedom of the democratic world that was under assault on that day. Indeed, by no other means have so many innocent lives of peoples of different countries, nationalities and faiths ever been lost in a single day, and never have so many families and friends from across the globe been forever touched by terrorism.
Although the economic losses suffered cannot compare to the magnitude of human losses, the House of Commons Standing Committee on Industry, Science and Technology nevertheless feels that it is important to turn to the task of measuring the economic impact on Canada of the September 11 events and ensuing bioterrorism attacks. Recognizing that the Government of Canada has begun to take immediate remedial action, the Committee’s work is intended to assist the federal government in devising a coherent long-term plan for arresting the adverse economic shock set in motion by these acts of violence and for responding effectively to the new security threat. More specifically, the Committee’s mission is to anticipate the many, but not necessarily obvious, economic consequences of terrorism and to counsel governments, regulators and their agencies on how to effectively respond to the post-September 11 security-conscious environment in a way that minimizes any further adverse impacts on the Canadian economy.
With these objectives in mind, the Committee organized several intensive meetings with many of Canada’s business leaders, representatives from industry umbrella associations — the ones most directly affected by the economic shock that followed the tragedy — and representatives from the United States. Their messages were clear and forthright; interestingly, a general consensus was reached on the need for increased military and anti-terrorist spending by the federal government that is financed by reduced and deferred spending on lower priority items. Such a plan, it is believed, would ensure that the Government of Canada does not fall back into deficit, thus restoring consumer and investor confidence for a general economic recovery in early 2002. At the same time, the message from the business community was clear that the adoption of new security measures must not impede the flow of goods and people across the Canada-U.S. border.
I would like to thank those who participated in our hearings process and who shared their insights with us. I am confident that the public will agree that this report reflects both its concerns and common Canadian values and priorities in the post-September 11 security-conscious environment.
Finally, the Committee would like to dedicate this work to the memory of those who lost their lives at the World Trade Center, the Pentagon and in a field outside Pittsburgh, Pennsylvania, on September 11, 2001.