QUESTION PERIOD — Innovation, Science and Economic Development
Canadian Innovation
June 1, 2023
My question is for the Honourable Senator Gold, the Government Representative in the Senate.
Senator Gold, earlier in the chamber I mentioned the great entrepreneurship and charity of organizations like Dairy Distillery. Not only are they supporting and growing Canada’s economy, they are giving back in times of need and pitching in to support the greening of Canada. Despite their hard work, the company continues to be inhibited by red tape and the lack of governmental support in expanding their work.
As a result, Dairy Distillery has begun construction on an ethanol production facility using dairy permeate to produce some of the greenest ethanol in North America. For every tonne of permeate they process into ethanol, they displace 1.2 tonnes of carbon. They’ve identified 50,000 tonnes of available permeate in Eastern Canada that, if converted to ethanol, would offset 60,000 tonnes of carbon a year.
The thing is, they’ll be building their plant in the state of Michigan.
This Canadian company has had little government support or any level of regulatory assistance, and could only financially succeed in the United States with support from programs like the Inflation Reduction Act.
If Canada can’t be competitive for its small businesses, we will lose Canadian businesses to the United States.
My question, Senator Gold, is: How will the Canadian government continue to support Canadian businesses that are competing with companies in the U.S. being supported by the American Inflation Reduction Act, and what will your government do to reduce regulatory red tape that forces Canadian companies out of the country, taking innovative progress and countless jobs with them? Thank you, meegwetch.
Thank you for your question, Senator, and congratulations on your French. It is nice to hear and an example to us all. I would therefore like to answer the question like a proper Montrealer: in both official languages.
The government continues to work hard to support businesses across this country, along with the provinces, territories and, in some cases, the municipalities, in order that Canadian businesses can profit from the changes that are taking place as we transition and move towards a greener and more sustainable economy.
The government has responded to the changes in the economic environment that was brought on by the Inflation Reduction Act in the Fall Economic Statement, where Minister Freeland put forward tax credits in a number of areas for clean energy, capital costs and hydrogen production.
The federal government plays a role, and, as I said, so do other levels of government. I’m advised the Government of Canada continues to evaluate ways in which to assist Canadian businesses, such as the one to which you referred, so as to benefit from the changes in the economic environment that, without question, were brought on by the introduction of the Inflation Reduction Act in the United States.
That altered the playing field with respect to the level of support the federal, provincial and territorial governments need to contemplate. The economic power differential is massive. That said, when it comes to Volkswagen and other issues before Parliament and in the press, the government needs to pitch in and make sure Canadian companies benefit from increased support on the part of the federal government.
