Speech

The Honourable James Moore, PC, MP
Minister of Industry

Montréal, Quebec

December 3, 2013

Check Against Delivery

First off, I'd like to thank Aéro Montréal for hosting this conference, which is an important forum for generating meaningful policy discourse and measured outcomes.

I would also like to thank Aéro Montréal for inviting me to be here today to address Canada's globally recognized innovators in aerospace and space.

The focus of this forum, of course, is innovation, which is vital for growth and prosperity in all sectors of the economy.

This is especially the case in our aerospace and space industries, where innovation is essential for long-term competitiveness.

And Canada's aerospace and space industries continue to excel on the world stage:

• Canada is ranked third in the world for civil aircraft production.
• Our aerospace manufacturing sector is the fifth largest in the world.
• We are world leaders in training and simulation.

Here at home, these industries have a big impact on Canada's economy. Aerospace and space account for more than 170,000 quality jobs and add over $27 billion annually to Canada's GDP.

Part of the reason for such significant numbers is that these industries keep pushing the envelope.

I was indeed very pleased to see the successful flight of Bombardier's CSeries jet. This is a truly important moment for Canada. By entering a niche market in the aerospace industry with a sticker price that is 20 to 25 percent lower than that offered by Airbus and Boeing and with a 25-percent-lower maintenance cost than similar jets, and by using green technology, this jet will do tremendous things for Canada's aerospace industry, while continuing to create jobs all across this country.

We want to see Canadian companies continue to grow, challenge each other, innovate and excel—even beyond the CSeries.

And that's exactly why our government asked the Honourable David Emerson to review Canada's aerospace and space programs and policies.

I know many of you contributed to his report.

I am pleased to say that we have listened to your recommendations, and we are taking action.

Many of you in this room lead companies that have grown their operations and earned our country's accolades with help from the Strategic Aerospace and Defence Initiative (SADI). It only made sense to ensure the program's future. That is why in Budget 2013, we announced stable funding of close to $1 billion over five years for this program.

I am just as pleased to announce common sense reforms to SADI's administration as recommended in the Emerson report. These changes to the program's terms and conditions will:

• add more incentive for firms to invest in R&D;
• reduce administrative burden;
• respond to the needs of small business; and
• ensure that Canada benefits by securing the high-value business opportunities that result from our support for R&D.

Now, in addition to SADI, I'm sure you all have heard about the launch of our Technology Demonstration Program. Canada has some brilliant minds and some incredibly talented people. We are great at inventing things and coming up with fantastic ideas, but seeing those products fully realized in the marketplace to the benefit of the Canadian economy is not something that we are great at. We need to do better. This is a program that's long been asked for by the industry, and now we've delivered.

I look forward to learning more about the products you want to see marketed when you submit your first Tech Demo Statements of Interest later this week.

I am also pleased to announce today the government's support for using the Consortium for Research and Innovation in Aerospace in Quebec's (CRIAQ) approach to collaborative research as the basis for a new national aerospace research and technology network. Mr. Emerson recommended a national initiative to enhance collaboration, and we look forward to working with the Aerospace Industries Association of Canada, CRIAQ, the provinces and others to make this a reality.

We didn't stop there.

Transport Canada is reviewing cost-recovery rates for aircraft safety certification.

And to support supplier development, we will continue to work with you to build on successes to date.

As you can see, we worked hard to respond to Mr. Emerson's advice. He drew heavily on your advice during the Review, so I want to thank you for your contributions and the AIAC in particular, which has played a key role in this process under Jim Quick's leadership. I look forward to your continued support and enthusiasm as we move into the next phase of our work.

Now, as we mark the one-year anniversary of the Emerson report, we turn our focus to space.

Historically, Canada has played an important role in space exploration. We are known for the Canadarm, Canadarm2, Dextre and the extraordinary success of Commander Chris Hadfield's mission aboard the International Space Station, which just celebrated its fifteenth anniversary. Our companies are leaders in optics, robotics, radar imagery and satellite communications.

But we will not stop at this success. And certainly Mr. Emerson has given us some recommendations on how to strengthen our reputation even further.

That's why we worked closely with your industries to develop a course of action for space.

And so, today I am pleased to announce the Government of Canada's response to Mr. Emerson's recommendations for space.

In terms of how the government's activities are governed, we will create the Space Advisory Board, to be led by the president of the CSA, Walter Natynczyk, on my behalf. This board will be made up of representatives from the research and academic communities, federal departments and agencies, and Canada's space industry. I will meet with the board annually for updates on progress.

We listened to what the industry asked of the government, and today we are pleased to deliver. We will stabilize federal funding for the CSA's Space Technologies Development Program at $20 million per year by 2016. This will bring the kind of predictability and stability that you asked for and will help you develop more groundbreaking space technologies that Canadian space companies are so recognized for.

We will also enhance the process for space procurement. It is our goal to improve the industry's capacity for more competitive procurement processes. Our approach to space procurement will align with the broader government review of defence procurement in response to Tom Jenkins' report.

In the same vein, our government will examine all opportunities to work with the private sector and international partners in our space activities to bolster partnership and encourage innovation.

To guide all of these efforts, our government is working on Canada's Space Policy Framework. This framework will provide the foundation for the next phase of our country's space program. It will be based on the principles of partnership with other countries and the private sector, catering to our strengths and inspiring Canadians. In the new year, I will announce our plan for space.

Without the input of industry representatives and organizations both big and small from across the country, many of which are here today, we would not be taking these pivotal steps. As we did for aerospace, our government is delivering for Canada's space industry. I look forward to continuing to work together to build our constructive, positive relationships.

I would be remiss if I did not quickly mention our recently signed trade agreement with the European Union. For many of you, CETA provides an important advantage when you need it most. It will eliminate the majority of existing EU tariffs on advanced manufactured products, which include some of the very products you manufacture.

This agreement will help you increase your exports to the EU. And not only does it represent thousands of new jobs for Canadians, but it will also contribute significantly to economic growth.

In closing, let me reiterate that Canada's success depends on a strong, competitive and innovative space industry. We want to lead internationally in exploration and the development of space to the benefit of all Canadians.

Our government remains focused on jobs, growth and the economy. You asked for changes, and we delivered because we recognize the integral role that the aerospace and space industries play in keeping our economy on the right track.

Over the coming year, we will take further action to ensure that companies in Canada's aerospace and space sectors continue to be leaders in innovation and job creation.

We can be sure that Canada's brilliant, young energetic space industry will lead the world with strong leadership from Prime Minister Stephen Harper; Minister of Finance Jim Flaherty; CSA president, General (Retired) Walt Natynczyk; and Jim Quick from the AIAC.

With support from private sector investors and expert advice from Mr. Emerson, I am positive we will continue to strengthen our aerospace and space sectors, which all Canadians can be incredibly proud to call their own.

Thank you very much.

By:news.gc.ca