Industry and Technology

The House of Commons Standing Committee on Industry and Technology (INDU) met on May 25, 2026, to study the Main Estimates 2026-27, with the Honourable Mélanie Joly, Minister of Industry, and Mark Schaan, Associate Deputy Minister of the Department of Industry, appearing as witnesses.

Minister Joly opened by stating that Canada is in a trade war with the United States and outlined a three-part government plan to protect jobs, create new industries, and attract talent and investment. She cited recent investments in steel, aerospace, and defence, including a $1-billion BDC program for economic resilience, a $500-million regional tariff response initiative, and a $3-billion strategic response fund. She also highlighted the AirAsia order for 150 Airbus A220 aircraft and the defence industrial strategy as key achievements, and she defended the agreement to import 49,000 Chinese electric vehicles as a small increase from 2023 levels that supports agricultural and fishery exports.

Mark Schaan, Associate Deputy Minister, addressed questions on the automotive remissions framework, explaining that a public consultation is exploring a tradable credit system to reward domestic production. He noted that the department’s analysis of the auto sector is continuous rather than a single study, and he committed to providing the committee with available data on the sector’s state. On foreign investment, he said the department balances openness to capital with the ability to block investments harmful to Canadian sovereignty under the Investment Canada Act. He also stated that the department is on track to meet its 2030 broadband connectivity goal and that AI investments from Budget 2024 are rolling out, with a supercomputer RFP recently closed.

On the EV mandate, Minister Joly reiterated that there is no federal mandate and that it is her priority to repeal it quickly, though she acknowledged a need to clarify this with industry representatives. She declined to answer detailed questions on the security implications of Chinese EV software, directing them to the Minister of Public Safety. Regarding the forestry crisis, she said adjustments to BDC programs are being considered and that good news is expected soon from colleague Tim Hodgson. She also noted that the aerospace sector is currently well-served by the defence industrial strategy and that no separate aerospace strategy is planned.

On performance pay, Schaan explained that 99.4% of executives receiving bonuses reflects withheld base pay for basic performance, not exceptional rewards, and that the framework is set by the Treasury Board Secretariat. He also said the department is making targeted spending cuts as part of a three-year review, with details to come in the next departmental plan. On clean-tech projects, he argued that the apparent 87% drop in project numbers is misleading because clean-tech components are now integrated into other sectoral programs.

The committee disposed of the votes on the Main Estimates, with the votes carrying on division.