Speech Article from  Innovation, Science and Economic Development Canada

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Speaking Points

The Honourable Christian Paradis, PC, MP
Minister of Industry

Ottawa, Ontario

May 30, 2013

Check Against Delivery

Thank you, and good afternoon, everyone.

Before I begin, I would like to thank Cassidian and L-3 Communications for sponsoring the lunch session.

And, of course, for inviting me to speak to you this afternoon.

I am proud to see so many Canadian companies here this week.

And even more impressed with the innovative products and technologies you have on display.

I think it's a testament to CADSI—and the calibre of this event—to see so many of the world's leading defence and security companies.

Thank you for organizing this event year after year.

I think the presence of so many international companies also underlines what a great place Canada is to do business.

Our government made it a priority to get the economic conditions right, and the world is taking notice.

We went back to fundamentals:

  • harmonized regulations;
  • reduced red tape;
  • removed the federal capital tax;
  • lowered corporate taxes; and
  • brought in the lowest tax rate on new business investment in the G7.

And we have launched initiatives to help manufacturers across the country.

Manufacturing is the backbone of Canada's economy.

And our government is giving you the tools you need to grow, compete and create high-quality jobs for Canadians.

That is why we have eliminated tariffs on machinery and equipment.

We are making Canada the first tariff-free zone for industrial manufacturers in the G20.

It is also why we committed to extending the temporary accelerated capital cost allowance for new investments in machinery and equipment.

And it is why we launched the most ambitious trade agenda in our history.
To allow you to develop, to become more competitive and to create more jobs…

…we are negotiating trade agreements with some of the most dynamic and influential economies in the world.

From Europe to the Asia-Pacific, we are opening doors to Canadian business.

Canada has a lot to offer.

And so do you. Your contribution to our economy is impressive.

According to a recent report commissioned by the Canadian Association of Defence and Security Industries—CADSI—your industries generate approximately $12.6 billion in sales annually—and over half of that comes from exports.

The stats on jobs are even more impressive—Canada's defence-related industries currently support 90,000 high-value jobs in Canada.

But beyond the numbers, you are renowned for being a leader in innovation.

Defence and security markets are constantly looking for new technologies.

And your companies are always searching for new ways to bring value to these markets.

As we heard from both David Emerson and Tom Jenkins, Canadian aerospace and defence industries must constantly innovate to be globally competitive.

And our government stepped up by providing stable funding of $1 billion to the Strategic Aerospace and Defence Initiative—or SADI.

SADI provides support to help Canadian companies develop technological breakthroughs that become competitive products in the market.

To date, we have committed more than $890 million to fund 29 advanced R&D projects.

In response to the Emerson report, we are also taking a close look at improving the program's administration.

We need to make it more accessible.

An industry that innovates and renews as often as this one needs a program that can keep up.

Economic Action Plan 2013 also announced some early measures in response to the Emerson report such as a Technology Demonstration Program.

Specifically designed to support large-scale collaborative aerospace technology demonstration projects.

And move new technologies out of the laboratory and into the showroom.

Most recently, I was happy to launch consultations on creating a National Aerospace Research and Technology Network.

This network will engage industry, research institutions and government laboratories to facilitate collaborative R&D.

And this builds on our recently implemented changes to the Industrial and Regional Benefits (IRB) policy.

We are providing incentives for companies with IRB obligations to make long-term investments in innovative Canadian companies…

…making it more attractive for contractors to partner with innovative small and medium-sized Canadian enterprises…

…particularly in the areas of R&D and commercialization.

This way we are keeping jobs and growth here at home.

And spurring innovation and economic benefits in communities across the country.

Yesterday, Minister Ambrose spoke about our progress in responding to Mr. Jenkins' recommendations on procurement.

I think we are all focused on the need to do procurement differently.

Building on the lessons learned in recent years.

And we will be looking to industry to assist us.

Nobody understands this business better than the men and women who live and breathe it every day.

I look forward to your input.

We must continue to work together:

  • to leverage defence procurement;
  • to maximize job creation;
  • to support Canadian manufacturing capabilities and innovation; and
  • to bolster economic growth in Canada.

These are exciting times, and we must exploit the opportunities before us.

Ladies and gentlemen, much of our progress is the result of a strong and open relationship between government and industry.

Your association is an effective advocate on behalf of the Canadian defence and security industry.

I look forward to continued collaboration in creating opportunities for Canadian companies around the world.

And helping you grow, compete and create jobs for Canadians.

I wish all of you a productive event.

And I look forward to hearing about your successes throughout the year.

Thank you.

See also:

News Release: Harper Government Positioning Canada as a World Leader in the Defence and Security Sector

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Innovation, Science and Economic Development Canada Science and Technology Economics and Industry Economic Action Plan

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