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The House of Commons Standing Committee on Industry, Science and Technology Tables Interim Report on the Challenges Facing the Canadian Manufacturing Sector.

Ottawa, June 21, 2006 - The House of Commons Standing Committee on Industry, Science and Technology tabled in Parliament today the Committee’s interim report on the challenges facing the Canadian manufacturing sector.

“Canada’s manufacturing sector is a vital component of our economy. While the rest of the Canadian economy is generally very robust, many industries within the manufacturing sector are struggling to remain competitive” said Mr. Rajotte. “The Committee is examining four major challenges that are affecting the competitiveness of Canada’s manufacturing sector: (1) the rapid appreciation in the value of the Canadian dollar against the U.S. dollar; (2) rising energy costs; (3) increasing global competition; and (4) the availability of skilled labour.”

The Committee began its study of the challenges facing the manufacturing sector in May 2006, with the aim of providing specific recommendations to the Government of Canada on how it can help the sector adapt to its challenges. Although the Committee intends to continue its study when Parliament resumes sitting in the fall, the Committee believes that it is important at this time to table an interim report, entitled Challenges Facing the Canadian Manufacturing Sector, so that the federal government is made aware of both the difficulties confronting the sector and solutions proposed by witnesses who have appeared to date.

“The proposed solutions submitted by witnesses covered a number of areas of federal public policy, including monetary, taxation, international and inter-provincial trade, labour skills, industrial and regulatory policy, as well as Canada’s energy framework” said Mr. Rajotte.

The Committee believes that these suggested solutions, along with others forthcoming in the fall, will provide ample options for it to consider as recommendations to the Government of Canada in its final report.

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