‘My number one challenge is to ensure that Canada’s aerospace industry is positioned to be a world leader’: Bernier

Industry Minister Maxime Bernier says that on defence procurement- which contributes about $4.5-billion per year to Canada's aerospace and defence industries-"every dollar we spend on defence procurement is matched by a dollar of economic activity in this country."In an e-mail interview with The Hill Times for a policy briefing on Canada's aerospace industry, Mr. Bernier (Beauce, Que.), the minister responsible for the aerospace sector, said a Canada-focused procurement policy will lead to a showcasing of Canadian firms from British Columbia to Atlantic Canada."We will only sign contracts when we are satisfied that there will be industrial benefit to Canada. So yes, on that front we are proudly standing up for Canadian industry," Mr. Bernier said.In November 2005, the former Liberal government released its National Aerospace and Defence Strategic Framework, which at the time the government called "a 20-year vision aimed at helping leaders in the aerospace, defence and space sectors identify where and how they can be globally competitive."The Canadian aerospace industry continues to experience a significant transformation. Original equipment manufacturers (OEMs) are trying to bring products to market far more quickly, not to mention more cheaply, than they have in the past, and have shifted many of their former responsibilities down the chain of supply, focusing more on design, integration and assembly, according to the National Aerospace report released last year.Canada's aerospace industry is strongest around the hubs of Montreal, Toronto and Winnipeg, and with the election of a new Conservative government in January-and the swearing in of Quebec Minister Bernier in February- observers suspect changes in Ottawa's relationship with the $20-billion- plus Canadian aerospace sector.But the Conservatices have not yet staked out a firm policy direction on the industry.When asked whether he would move ahead with the Liberal policy plan on aerospace, Mr. Bernier did not say: "Our new government is taking the time to review proposed frameworks and policies to determine what is in the best interest of our country and this industry."What are your five top priorities and what is your vision for Canada's aerospace industry?"My vision is to have a strong, competitive aerospace industry that is a source of pride."I intend to make sure that the military procurement this new government has announced will deliver high-quality, significant benefits to Canadians, no matter which companies are awarded the contracts."Economic benefits from defence procurements increase Canadian industrial competitiveness, market access, commercialization and investment in hightechnology sectors. For every dollar the government spends on these procurements, an equal amount will be invested in this country. That's a 100-per cent return on investment within the contract duration, which will mean jobs in our world-class aerospace and defence industries for Canadian workers.Industry Minister Maxime Bernier says that on defence procurement- which contributes about $4.5-billion per year to Canada's aerospace and defence industries-"every dollar we spend on defence procurement is matched by a dollar of economic activity in this country."In an e-mail interview with The Hill Times for a policy briefing on Canada's aerospace industry, Mr. Bernier (Beauce, Que.), the minister responsible for the aerospace sector, said a Canada-focused procurement policy will lead to a showcasing of Canadian firms from British Columbia to Atlantic Canada."We will only sign contracts when we are satisfied that there will be industrial benefit to Canada. So yes, on that front we are proudly standing up for Canadian industry," Mr. Bernier said.In November 2005, the former Liberal government released its National Aerospace and Defence Strategic Framework, which at the time the government called "a 20-year vision aimed at helping leaders in the aerospace, defence and space sectors identify where and how they can be globally competitive."The Canadian aerospace industry continues to experience a significant transformation. Original equipment manufacturers (OEMs) are trying to bring products to market far more quickly, not to mention more cheaply, than they have in the past, and have shifted many of their former responsibilities down the chain of supply, focusing more on design, integration and assembly, according to the National Aerospace report released last year.Canada's aerospace industry is strongest around the hubs of Montreal, Toronto and Winnipeg, and with the election of a new Conservative government in January-and the swearing in of Quebec Minister Bernier in February- observers suspect changes in Ottawa's relationship with the $20-billion- plus Canadian aerospace sector.But the Conservatices have not yet staked out a firm policy direction on the industry.When asked whether he would move ahead with the Liberal policy plan on aerospace, Mr. Bernier did not say: "Our new government is taking the time to review proposed frameworks and policies to determine what is in the best interest of our country and this industry."What are your five top priorities and what is your vision for Canada's aerospace industry?"My vision is to have a strong, competitive aerospace industry that is a source of pride."I intend to make sure that the military procurement this new government has announced will deliver high-quality, significant benefits to Canadians, no matter which companies are awarded the contracts."Economic benefits from defence procurements increase Canadian industrial competitiveness, market access, commercialization and investment in hightechnology sectors. For every dollar the government spends on these procurements, an equal amount will be invested in this country. That's a 100-per cent return on investment within the contract duration, which will mean jobs in our world-class aerospace and defence industries for Canadian workers."I intend to promote Canada's industrial sectors at home and abroad. That's why I recently attended the Farnborough International Air Show, this year's largest international aerospace event, and met with industry leaders to hear their views."Finally, I am a firm believer that relieving the tax burden on Canadian industry will spur growth and opportunity and expect the aerospace sector to benefit from this government's new Budget 2006 tax policies."You were recently in Great Britain for the Farnborough air show, accompanied by more than 100 of what you called Canada's "most innovative" aerospace and defence companies. What did you accomplish on the trip? What did you get out of it?"In three days, I met with senior executives of 10 of the world's leading aerospace companies. I told them about our nation's many advantages, and encouraged them to consider Canada as their location of choice for aerospace and defence investments.I promoted our Canadian sector as a cost-competitive supplier of aerospace and defence products and services, and met with many companies inquiring about future business opportunities in Canada."I saw and heard firsthand why the Canadian aerospace sector is such a success and why it has become the fourth largest aerospace sector in the world. Aside from meeting foreign multinationals, I met with almost every one of the 100 Canadian companies that attended. They told me about their products and services, gave me advice on their sector, and what they are looking for from me as the Minister of Industry."You described this trip as the "single most important event for the global industry this year." What made it so important? What happened?"I believe that having a high-level government presence at this event helped draw attention to the strength of Canada's aerospace sector. The event was a huge success for the Canadian industry."There is no easier way to meet the leaders of the global aerospace industry than to go to the one event they will all attend. My trip to Farnborough provided me with a convenient opportunity to sell Canada's many advantages in terms of both trade and investment opportunities."I left with a better understanding of the global aerospace industry, and Canada's significant place and important role in it."The aerospace industry in Canada is enjoying a recent upturn. What's the story there?"The Canadian aerospace industry historically has had fairly steady sales averages. Canada is linked into global supply chain networks, meaning that the Canadian aerospace and defence industry is perfectly lined up to supply the major aircraft and systems assemblers."There is also increasing demand for turboprops, business jets and helicopters, and major aircraft systems like landing gear and simulators. Canada is a global market leader in these areas and therefore benefits greatly from the increased demand."What's your No. 1 challenge as the minister responsible for Canada's aerospace industry?"My number one challenge is to ensure that Canada's aerospace industry is positioned to be a world leader, with fair opportunities to supply products, components and services. Future measures will be needed to ensure Canada can maintain its competitive position by fostering innovation, technology development and commercialization capability, all essential to future strengthening of our economic foundations. I am carefully considering what direction Canada's new government can take to ensure our aerospace industry reaches its full potential."Do you think you've played a good leadership role on the aerospace file?"Yes. In my short time as Minister of Industry, I have worked to ensure domestic economic benefit from the Canada First defence procurements, an opportunity that will deliver more than $13-billion into the Canadian economy over the coming decades. I have travelled abroad to promote Canada's interests at this year's Farnborough event and met with industry leaders from around the world to hear their thoughts. I have taken what I learned at Farnborough and am considering what directions the new government should take with respect to this important sector.The previous Liberal government finally released the federal government's strategic framework last November before losing to the Conservatives in the 2006 election. Interestingly, it was released by then-Industry minister David Emerson, who's now a Conservative in your Cabinet. What is your Conservative Cabinet doing with the strategy framework and do you agree with it?"Our new government is taking the time to review proposed frameworks and policies to determine what is in the best interest of our country and this industry."How is the current Conservative government assisting the aerospace industry to meet the challenges of globalization? Have the Conservatives changed their views from when they were in opposition and were critical of supporting the aerospace industry?"We will always oppose inefficient or wasteful use of taxpayer funds-that is something that will not change. Our government is examining what efficient and effective ways we can find to promote or support Canada's aerospace industry."As Minister of Industry, I have been clear in voicing the opinion that Canadian aerospace and defence firms from coast to coast can, through their expertise and capabilities, benefit from our recently announced military procurements. I have met with a great number of aerospace companies from around the world, promoting our firms as partners and suppliers of choice, and articulating Canada's competitive advantage as an investment location."The federal government recently announced the spending of billions of dollars for military procurement, including helicopters, ships, trucks and strategic airlift aircraft. The Aerospace Industries Association of Canada says it applauds the government's move, but adds that it's "anxious to learn" more about how the government will "fully leverage these procurements" to assist Canada's aerospace industries. Do you have a plan?"Benefits to Canada sought on these procurements will be guided by our Industrial and Regional Benefits policy, which ensures significant domestic economic activity from large defence purchases such as these. My department and I are working diligently with potential contractors to ensure that they provide lasting, high quality technology based industrial benefits to Canadians."The IRB policy is an effective means to help companies help themselves; we have competitive firms right across the country, and our work provides these firms the opportunity to showcase their capabilities and position themselves as partners and suppliers to the prime contractors."Having said that, multinational contractors I have met who have worked with Canadian suppliers often comment that the excellent quality work of their supplier- partners makes them much more competitive in the global aerospace market."Conservative MPs Gordon O'Connor, who is now Canada's Defence Minister, and James Rajotte, said last summer in The Hill Times' aerospace policy briefing, on Aug. 22, 2005, that the government needs a better aerospace purchasing policy and a focus on domestic procurement to stop the "bleeding of Canadian aerospace jobs overseas." Now that you're in government, have you done anything on that front?"Our government is demanding that every dollar we spend on defence procurement is matched by a dollar of economic activity in this country. As well, we are working to showcase firms, from British Columbia to Atlantic Canada, as partners and suppliers to these projects. We will only sign contracts when we are satisfied that there will be industrial benefit to Canada. So yes, on that front we are proudly standing up for Canadian industry."Have you made the procurement process more transparent?"Our government's procurement activity has been fully transparent, and we are examining ways to further improve the procurement process. We are currently reviewing the time it takes to execute major military procurements with officials from Treasury Board, Public Works, National Defence, Foreign Affairs and International Trade, to improve this process for industry, and to better support the Canadian military. The goal is for a streamlined procurement action plan, making the entire process more efficient and transparent to bidders and the general public alike."Gordon O'Connor and James Rajotte also told The Hill Times last August that the Technology Partnership Canada program must be overhauled and that R&D programs should be diversified. What has the Conservative government done on this front?"One of my first priorities as Minister of Industry was to take steps toward bringing more accountability and transparency to TPC. For example, I recently released the external auditor's final report into compliance issues at TPC. Our government is also the first to have released a report on repayments to the program."I think that kind of accountability and transparency is a good first step. In the weeks and months to come we are examining available options to promote or support R&D and commercialization activity in Canadian industry."

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‘My number one challenge is to ensure that Canada’s aerospace industry is positioned to be a world leader’: Bernier

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