QUESTION PERIOD — Innovation, Science and Economic Development
Manufacturing Sector
May 6, 2026
Government leader, Canadians are shocked to hear reports that Honda Motor Co. has now cancelled its proposed $15-billion electric vehicle project in Ontario after first delaying it last year. This is another billion-dollar investment gone under your government’s watch.
Just in the past year, Ontario has faced closures, production reductions and investment delays from GM CAMI, Ford, Autoneum and, of course, Stellantis.
Senator Moreau, your government continues to point to external pressures, but Canadians are asking about accountability here at home. At what point will your government acknowledge its role in the loss of billions in investment and take responsibility for restoring investor confidence in Canada’s economy?
Hear, hear.
Thank you for the question, senator. With over 500,000 workers, Canada is an auto-building nation, and the government has brought forward the most comprehensive suite of trade resilience measures in Canadian history. The strategy will enable the government to reach three overarching priorities: first, move efficiently on climate action; second, increase affordability for Canadians; and third, diversify our economic partners and strengthen our supply chains. The auto strategy will achieve these three objectives by allocating $3 billion to the Strategic Response Fund to help terrific companies pivot and adapt, rewarding companies that decide to produce and invest in Canada.
The strategy of the government is clear: We will protect auto workers, and we will continue to invest to make our economy stronger.
Government leader, business leaders across all sectors have warned of a growing gap between your government’s promises and its actions, particularly regarding regulatory reform. Investors, workers and all Canadians are tired of empty promises.
When will we see concrete steps being taken to reduce regulatory burdens and create a competitive environment that attracts, rather than drives away, critical investment?
Canada had the second-largest foreign-direct-investment-stock-to-GDP ratio in the G20 in 2024. Canada has a lower marginal tax rate than any other G7 country, and Canada will be the second-best country in the G20 for doing business in the next five years. Also, among the G7 countries, Canada ranks third with respect to the ease of starting a business.
I think that those are very clear.
