Environment and Sustainable Development
Date: 2023_04_20
Chamber: HOUSE OF COMMONS
Mr. Sebastien Lemire: I move that the fifth report of the Standing Committee on Industry and Technology, presented on June 16, 2022, be concurred in. I am honoured to rise in the House to promote and defend the aerospace industry, especially Quebec's. As we know, it is a leading industry. I have been waiting for this moment for years now. This matter has already been debated and studied at the Standing Committee on Industry and Technology in a previous Parliament. I want to especially thank my colleagues at the time, who contributed to this debate. I am therefore taking this opportunity today to have a frank discussion with my colleagues in the House about support for the aerospace sector. I will be sharing my time with my colleague, the Bloc member from Saint-Hyacinthe--Bagot , and I would like to recognize his leadership and initiative in promoting the development of the aerospace industry. Air carriers were hit hard during the pandemic and are slowly recovering. However, there are still many challenges and the federal government is not treating them fairly. This has to stop. I devoted several hours to this study. Many testimonials from across the country have helped identify challenges and lay out the vision needed to support the industry's development. I would like to acknowledge the contribution of the International Association of Machinists and Aerospace Workers, the IAMAW, and in particular that of David Chartrand and Eric Rancourt. What is a national aerospace strategy? It is a table at which all stakeholders, including workers, companies and the Quebec government, gather to share their reality and their needs, much like what Ottawa does for the auto industry. These are specific programs adapted to the sector's reality. They provide predictable, long-term support that enables stakeholders to engage in more long-term projects. Let me emphasize the word "predictable". It is a global vision that includes every link in the chain, a military procurement policy that takes into account benefits for the industry, a long-term commitment that strengthens the entire cluster. Risk sharing is a fundamental aspect of the industry, especially when it comes to the risks associated with larger projects. It is a review of research and development support programs to ensure they respond better. It is also credit for buyers who purchase Canadian aircraft. There is currently a shortage of 6,000 aircraft worldwide. Airlines are renewing their fleets, and other markets are growing. Quebec can play a major role here. What is the federal government doing right now? It has just now done the opposite of what the industry has been saying over and over. We need a strong signal. We could do better, and the government knows it. It knows it because the Bloc Quebecois has reminded it many times of the needs expressed by the aerospace industry. The report of the Standing Committee on Industry and Technology is clear. What is the aerospace industry in Quebec? It is an industry that, thanks to the Quebec government, benefits from the presence of a dynamic industrial cluster that brings together businesses, research centres and post-secondary institutions. This concentration of expertise and resources fosters innovation and competitiveness in the industry. It is an industry that plays a key role and that generates about $16 billion in revenues annually. Quebec's aerospace industry employs over 40,000 people directly and over 20,000 others indirectly, which represents about 45% of the entire Canadian aerospace industry. That is something. The main stakeholders in Quebec's aerospace industry include Bombardier, Pratt & Whitney Canada, CAE, Bell Textron Canada and Heroux-Devtek. Many of these companies took part in the study. They manufacture airplanes, helicopters, engines, pilot training systems, and aircraft simulation and maintenance systems, and are involved in aircraft recycling. In fact, Quebec could play a major role in the circular economy by recycling retired aircraft. Quebec has several post-secondary institutions that offer aerospace training programs, which helps provide a highly skilled workforce. World-class innovation zones support a cutting-edge high-tech industrial ecosystem and the capacity to work on long-term projects. Quebec is a major research and development hub for the aerospace industry, with research programs supported by universities and research centres like the Consortium for Research and Innovation in Aerospace in Quebec, or CRIAQ, and the Innovative Vehicle Institute, or IVI. In short, Quebec's aviation industry is an important pillar of the province's economy. It creates jobs and promotes economic growth, while offering innovative solutions to meet aerospace challenges. Quebec's aerospace strategy puts the emphasis on the latest technological developments and new trends in the industry, such as the reduction of greenhouse gas emissions, enhanced security and safety, digitization and connectivity. It is essential that we improve the efficiency and adaptability of the aerospace supply chain, which is complex and comprises many players, such as parts suppliers, aircraft manufacturers, airlines and maintenance companies. To ensure optimal management of the supply chain, we are considering the benefits for the future of all industries, such as artificial intelligence, automatic learning and connected automation. These can play a crucial role and support production predictability, improve delivery performance and make it possible to respond quickly to minimize production interruptions. Connected automation allows for voluntary transparency between businesses and the supply chain and can be used to connect the various players and allow for real-time collaboration and visibility for the entire chain. IoT sensors can also be used to track and monitor the condition of products, which allows for better production and delivery planning. Order processing can also be automated to reduce errors and delays. This shows the whole potential of what can be developed, but that would take a federal aerospace strategy in Canada. It is fair to say that the Minister of Innovation, Science and Industry formally committed to fund the strategic innovation fund as part of his government mandate to stimulate innovation and R and D in Canada. However, as I have showed this morning, the industry's needs are far greater. The government needs to take real action if we are to truly improve the competitiveness of our aerospace industry. Some stakeholders in the industry have criticized the lack of funding and inadequate government support to implement the strategy's initiatives. They also point out that the strategy does not address important issues such as foreign competition, regulations and sustainable development. It is clear that the implementation and long-term effectiveness of the federal initiatives we have seen so far remain a concern. With respect to Quebec's innovations in the aerospace sector, one of the most remarkable is Heroux-Devtek's development of a new electric landing gear system for aircraft. To get back to the report of the Standing Committee on Industry and Technology, we received a response from the government, and I think it is important to address certain aspects. One of the most important recommendations made by the committee and supported by the people in the industry is the whole question of a national aerospace policy. Predictability and long-term vision are extremely important. Investing in an airplane means investing over 10 or 20 years, or even longer, in research and technology. These are major investments in risk capital. These major companies are jewels of Quebec's economy. We know that the federal government has provided little support so far. When it withdrew from the pharmaceutical industry, we lost some of the leaders of Quebec's economy. That is why a Canadian aerospace strategy is essential. I welcome the leadership of the minister, who could make this vision a reality and give our industries the predictability they need to innovate. If we want green aircraft to take flight, we need to give these companies predictability and substantial risk capital. The minister's response to this recommendation acknowledges that this is needed. He stated the following: "By no means exhaustive, these actions are the pillars of the Government's pandemic response and its strategic plan for the recovery of Canada's aerospace sector." Those are fine words, but that acknowledgement should be accompanied by funding to protect these long-term investments. The committee made recommendations in the context of COVID-19. Now that the pandemic is behind us, we have to be able to implement strategies. Allow me to touch on another problem affecting regional air travel. It is a basic need, but it is not working right now. Air Canada cancels almost one in five flights without notice. This is a problem throughout Abitibi-Temiscamingue and in every region. How could we provide better support for companies in the aerospace industry? Air Canada may not be the key player anymore. Maybe we should rely more on regional airlines, like Propair or Air Creebec in Quebec. There is also Transport Canada's remote air services program, which is in place but could be enhanced to ensure a better vision. The last thing I want to mention is that the government promised investments of around $400 million on July 15, 2021, during the election campaign. That is substantial, but it does not meet the industry's needs when it comes to everything we could be developing to maintain Quebec's competitiveness in the aerospace sector.