January 27, 1970

ORAL QUESTION PERIOD

INDUSTRY

PC

Robert Lorne Stanfield (Leader of the Official Opposition)

Progressive Conservative

Hon. Robert L. Stanfield (Leader of the Opposition):

Mr. Speaker, I wish to direct a question to the Minister of Industry, Trade and Commerce. In view of the growing number of lay-offs in the automobile industry and the great economic importance of this industry, I ask the minister what information he has from the automobile industry as to the extent of the lay-offs this winter in the Canadian aspect of this industry?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Hon. Jean-Luc Pepin (Minister of Industry, Trade and Commerce):

Mr. Speaker, I have recently had meetings with the heads of the automobile industry and reference was made to this in our discussion. It is well known that there is a levelling in growth in that industry at this time. The lay-offs that have taken place in the recent past have been justified either by internal restructuring or by the need to reduce excessive inventories.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
PC

Robert Lorne Stanfield (Leader of the Official Opposition)

Progressive Conservative

Mr. Stanfield:

A supplementary question, Mr. Speaker. Has the minister any estimate of the extent of lay-offs to be expected and has he any assurance that the lay-offs that are effected will be fair and pro rata under the automobile agreement as between Canada and the United States?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Mr. Pepin:

I believe it is so, Mr. Speaker, but I cannot be very specific today. I will look into this matter more closely and will give a more precise answer Thursday.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
NDP

John Edward Broadbent

New Democratic Party

Mr. J. Edward Broadbent (Oshawa-Whil-by):

A supplementary question, Mr. Speaker. Has the minister attempted to get an assurance from the heads of the automotive companies that they will give advance notice to workers who are going to be laid off of not less than two months before such lay-offs take place?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Mr. Pepin:

I understand the practice has been to that effect in recent times in the automobile industry, but I will have another look at the record.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
PC

Gerald William Baldwin (Official Opposition House Leader; Progressive Conservative Party House Leader)

Progressive Conservative

Mr. G. W. Baldwin (Peace River):

A supplementary question. Will the minister take this problem into account in the negotiations in connection with the Canada-United States automotive trade pact and attempt to reduce the differential in prices in order to reduce inflation and provide for greater possibility of sales?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Mr. Pepin:

All these factors and many others are being taken into account in our negotiations with the United States. If one is concerned with differentials, one should be encouraged by the progressive reduction in the prices of automobiles and in the reduction in the productivity differentials that existed between the two industries at the time the pact was negotiated. One should be rather satisfied with the progress made in these areas.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
PC

Marcel Joseph Aimé Lambert

Progressive Conservative

Hon. Marcel Lambert (Edmonton West):

My

question is on the same subject. In his examination of the problem, will the minister look at the agreement to see if there are any guarantees that the Canadian government could invoke under the agreement to prohibit the export of unemployment in view of the fact that there are many reports of very extensive lay-offs in the automotive industry in the United States?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Mr. Pepin:

We have used all the guarantees that were available in the agreement and in the letters given by the companies to the government in 1965. The general idea is that these guarantees now constitute a floor under which production cannot be allowed to fall. However, as hon. members know, there is no guarantee as to employment; it is by increasing the Canadian value added that further employment is generated.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
PC

Marcel Joseph Aimé Lambert

Progressive Conservative

Mr. Lambert (Edmonton West):

The minister will appreciate that since decisions in these matters are made in Detroit, the volume of production, either here or in the United States, is subject to decisions made outside Canada. That is why I am drawing the minister's attention to this question of a guarantee

January 27, 1970

Inquiries of the Ministry in relation to the non-export of unemploy- Mr. Pepin: I say yes to that, Mr. Speaker, ment. May we have a statement on this par- but the figure is wrong-it is not as high as ticular aspect at the first opportunity? that.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Mr. Pepin:

On this particular subject the presidents of the automobile companies in Canada have assured me that decisions being taken in this industry in Detroit or anywhere else are now made on the basis of economic returns. This is cheering information, because it was one of the purposes of the automobile agreement that decisions should be made on such a basis. The hon. member smiles, and I can understand why he does so. We try by every reasonable means available to us to make sure that decisions are taken on the basis of economic return; we insist as much as we can-sometimes even more.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AUTOMOBILES-EXTENT OF LAY-OFFS OF EMPLOYEES
Permalink

AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE

NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. T. C. Douglas (Nanaimo-Cowichan-The Islands):

May I direct a supplementary question to the minister with respect to possible lay-offs in the aircraft industry. Has the government made any decision with respect to the application of the Hawker-Siddeley Company for financial assistance to enable them to put into production the DHC-7 which could put Canada in the forefront in exports of this particular type of aircraft? Has any decision been reached in this regard and, if not, when will one be taken?

Topic:   AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE
Permalink
LIB

Jean-Luc Pepin (Minister of Industry, Trade and Commerce)

Liberal

Hon. Jean-Luc Pepin (Minister of Industry, Trade and Commerce):

A decision was made some time ago, Mr. Speaker, and a program is now in progress in my department to encourage the next phase in the development of the DeHavilland and the STOL aircraft. However, the company has experienced some difficulty arising from the slow development of the use of the STOL aircraft in the world. As hon. members will appreciate, production has to be tied to the use of this aircraft, particularly in the United States; we can only go as far as markets are available for this aircraft. There is in my department now a rhythm of implementation of this program which ties in with the development of potential markets. I am well aware of the importance of this development in terms of the well-being of the aircraft industry in Canada.

Topic:   AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE
Permalink
NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. Douglas (Nanaimo-Cowichan-The Islands):

Has the government decided whether or not to accede to the application for some part of the $50 million needed to put this plane into production if feasibility studies warrant it?

Topic:   AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE
Permalink
PC

Robert Muir

Progressive Conservative

Mr. Muir (Cape Brelon-The Sydneys):

May

I direct a question to the Prime Minister?

Topic:   AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE
Permalink
IND

Lucien Lamoureux (Speaker of the House of Commons)

Independent

Mr. Speaker:

Order. I believe the hon. member for Calgary North has a supplementary.

Topic:   AIRCRAFT-POSSIBLE LAY-OFFS-HAWKER - SIDDELEY APPLICATION FOR FINANCIAL ASSISTANCE
Permalink

January 27, 1970