Notes for an address by

The Honourable Lynne Yelich
Minister of State for Western Economic Diversification

Celebration Reception

Check Against Delivery

Thank you Pete Peterson (Canada Country Executive Boeing Defense, Space and Secruity); Gwen Kopsie (Boeing Defense, Space and Security, Director of Industrial Participation); Pete Hoffman (Global Research and Development Strategy Director for Boeing Research & Technology); and  Dr. Anoush Poursartip (AH-NOOSH POHR-SAR-TIP) (Canadian Composites Manufacturing Research and Development Chairman and Director for Convergent Technologies).

Ladies and Gentlemen, I am pleased to be here today on behalf of the Government of Canada and my colleague, the Honourable Tony Clement, Minister of Industry.

Thank you to Boeing for the opportunity to participate in this celebration.

Boeing is recognized internationally as having a tradition of aerospace leadership and innovation.  This announcement demonstrates the importance the company places on this commitment and developing partnerships to achieve a goal.

Boeing is a major contributor to the Canadian economy, particularly in the aerospace sector.  You heard from Pete Peterson a few moments ago that the company generates $1 billion in business annually and employs people in Nova Scotia, Quebec, Ontario, Manitoba, Alberta, and British Columbia.

The Canadian Composites Manufacturing Research and Development consortium being celebrated this evening, is an important step forward and creates a virtual centre of excellence.

It brings together major aerospace companies and small-and-medium sized enterprises to develop and transform the latest technical and academic knowledge on advanced composite materials into practical solutions.

I am particularly pleased to recognize the Composites Innovation Centre (CIC) in Winnipeg which will run the consortium and be the centre of focus.  I have had the opportunity to visit CIC in Winnipeg and meet with Sean McKay—who is here today. Western Economic Diversification Canada has supported the Composites Innovation Centre since its inception in 2003 when it opened its doors.To date, a total of $10.3 million in WD funding has been committed to CIC.  They have an outstanding track record in coordinating industrial research projects for Canadian manufacturing industries.

The consortium is an example of how partnerships increase opportunities for success. By bringing together the Composites Innovation Centre, the National Research Council Canada’s Institute for Aerospace Research, and Boeing, I am confident that Canada’s competitive position in the manufacturing of advanced composites will be strengthened.

This will be further enhanced by the member companies from across Canada, including:

Our Government is committed to supporting economic development and growth in key sectors such as the aerospace industry.

The investment from Boeing is a result of their Industrial and Regional Benefits – or IRB as we call it – commitment, associated with the government’s acquisition of 15 CH-147 medium-to-heavy-lift helicopters which was announced in the summer of 2009.

As you know, the IRB policy requires prime contractors awarded major defence and security contracts to provide Canada with new business activities equal to 100 per cent of the contract value. Our government believes it is important that Canadians and Canadian businesses throughout the country benefit from government defence and security purchases. Many companies from coast to coast have benefited from work packages on the current procurements.  Last Fall, the government announced new changes to the IRB policy that will facilitate further high value activities with Canadian industry, among other benefits.  By modernizing and improving the government's IRB policy, we are supporting research and helping bring new technologies to market.

Boeing’s investment into the CCMRD is the first use of the IRB policy change to provide an incentive for the creation of Public-Private Consortia. This policy initiative is designed to encourage industry-government-academia Consortia to develop next-generation technologies and services in aerospace, defence and related sectors.The investment into the CCMRD is an excellent example of not only our IRB policy at work, but of the new improvements to the policy.

Currently, the IRB policy has a portfolio nearing $20 billion in commitments that are creating jobs and opportunities for Canadian companies. Under the Canada First Defence Strategy, the current IRB portfolio could double – into the $40 billion range – with all of the new, planned procurements in the coming years.

A key priority for my department is securing high-quality Industrial and Regional Benefits for the West. Our vision is to leverage IRBs to develop and diversify the economy of Western Canada.

How are we achieving this vision?

• First, we identify key federal procurement opportunities for the West;
• Second, we promote western Canadian companies and capabilities, and connect them with global aerospace and defence companies;
• And third, we work collaboratively to build the knowledge infrastructure required to build and sustain this industry in the future.

The government recognizes the strategic importance of the Canadian aerospace industry. Aerospace in Western Canada directly supports over 15,000 jobs and generates more than $4 billion in annual revenue.

The Canadian economy is emerging from the downturn as one of the strongest and most resilient in the developed world.  However, we need to continue to be vigilant and find ways to make it stronger.

We will continue our work creating and protecting jobs, building infrastructure, easing the tax burden on families, supporting Canadians who have lost their jobs, helping threatened industries, and laying the foundation for our future prosperity.

We know that Canada’s prosperity depends not just on meeting the challenges of today, but on building the dynamic economy that will create opportunities and better jobs for Canadians in the future.

Today is evidence that together we are working to build a stronger Canada.

Thank you / merci.