That, in the opinion of the House, by providing only $170 million in funding over two years in the latest budget to assist the forestry industry, the government is showing once again its lack of concern for the Quebec economy, which has been hard hit by the forestry crisis, since this amount falls well short of what this industry needs to see it through the current crisis, especially since this funding will serve to extend programs that are ill-suited to the needs of the industry in crisis; the government should therefore establish a real plan as soon as possible to help the forestry industry, a plan including a series of specific, sustainable development measures, including loans and loan guarantees, refundable tax credits for research and development, a policy to encourage the use of lumber in the construction and renovation of federal public buildings and measures to support energy and ethanol production from forestry waste.
He said: Mr. Speaker, as you know, I come from a region, the Saguenay—Lac-Saint-Jean region, which, in recent years, has been hard hit by the forestry crisis. Quite a few of my colleagues from Quebec and Canada are experiencing similar situations. In our respective regions, whenever the sawmill shuts down, the entire local economy is affected.
When I was elected as the member of Parliament for Chicoutimi—Le Fjord in 2004, the forestry industry was going through tough times. In 2004, Abitibi-Consolidated shut down its Port-Alfred plant in La Baie. This resulted in 640 workers being laid off, and the impact could be felt throughout the Saguenay—Lac-Saint-Jean region. Since then, almost 4,000 direct jobs have been lost in the region. That is right, 4,000 jobs. It is as if 15,000 jobs had been lost in the city of Ottawa over the past five years.
The Bloc Québécois has chosen to have an opposition day on the forestry crisis and possible solutions to it because the government has completely failed to support the forestry sector, which is in dire need of support.
The fact is that the forestry industry has been struggling for several years. First, there was the softwood lumber dispute that started in May 2002 and ended in the fall of 2006. During that time, Ottawa systematically refused to support the industry and provide the loan guarantees it needed to stay afloat. As a result, 10,000 jobs were lost in the forestry industry in Quebec between May 2002 and April 2005.
Since April 2005, a further 21,000 jobs have been lost in the forestry industry in Quebec alone. What is worse, the situation is deteriorating each week. AbitibiBowater has just announced temporary closures of its mills in Amos, Dolbeau-Mistassini and Baie-Comeau. That is not including the pulp mill in Saint-Félicien, the lumber mills in Girardville and Saint-Fulgence, Arbec forest products, Coopérative Forestière de Petit Paris and many others that closed for a few weeks or have drastically cut their production.
We are in the midst of a terrible crisis and we have a government that prefers to ignore the plight of the thousands of workers and families.
This is such a serious matter that two weeks ago the president of the Quebec Forest Industry Council testified before the members of the Standing Committee on Finance here in Ottawa to ask for urgent assistance since the industry is at the end of its rope. He came to ask the federal government to establish a refinancing program and a support program in order to be ready for recovery.
According to the president, a number of companies need to do major repairs but they cannot currently access credit. A number of them would like to take advantage of the crisis by innovating but simply cannot invest because they have no money.
The president of the Quebec Forest Industry Council is not the only one raising the alarm: the message is coming from all sides. Last week, Michel Routhier, president of the FTQ Conseil régional du Haut du Lac-Chibougamau-Chapais, said that the budget is not helping the industry and that there is less help now than when there was no crisis.
The crisis being as serious as it is, equipment providers are also calling on the government. Robert Dionne, president of the Association des propriétaires de machinerie forestière du Québec, which represents 250 forestry entrepreneurs, said that his members are worried. They are scrambling to stay afloat. Last week Mr. Dionne said that more than 50 entrepreneurs went out of business in Quebec in 2008 and that the outlook for 2009 is not much brighter.
Lastly, Alain Michaud of Saint-Ludger-de-Milot, whose business is located in the riding of the and member for Roberval—Lac-Saint-Jean, stated that we need to go back to the time when there were tax credits for equipment purchases.
The message in the community is unanimous: the federal government must adopt programs to support forestry entrepreneurs.
The Canadian and Quebec forestry industry is in no less difficulty than the auto industry. It represents 300,000 direct jobs in Canada, and another 450,000 indirect ones, while the figures for the auto industry are 158,000 direct and 335,000 indirect. Nevertheless, the Conservative government's aid to that sector is far higher than that announced for the forestry industry: $2.7 billion for the auto sector but only $170 million for the forestry industry in all of Canada, over two years. Yes, that is disgraceful. Do you see the disproportion in assistance?
As members of Parliament, we are duty bound to find solutions to help thousands of families. Our fellow citizens have asked us to represent them here in Ottawa to defend their interests. Unfortunately, certain members have chosen to promote their party's position rather than to come to the aid of their fellow citizens and relay their message here to Ottawa, to this House.
Among the biggest offenders in this are the members for and . The has been stating at every possible opportunity that he cannot, under the softwood lumber agreement, provide any loan guarantees. Yet he is incapable of stating exactly which section of it prevents him from doing so. Even yesterday in question period he was unable to clearly specify which part of the agreement it was, because there is no section that bans such a service of providing loan guarantees to businesses. Unfortunately, the member is obliged to defend the indefensible to back up his party, the Conservative government, since that government is refusing to provide loan guarantees to the forestry sector for purely ideological reasons.
Even the president of the Fédération québécoise des municipalités, Bernard Généreux, has commented on the member for , the , “It is a matter of bad faith or lack of imagination. It is unthinkable that, with the billions of dollars of support handed out in the last federal budget, to the auto industry among others, they could not have found some money lying around somewhere to invest in the forestry crisis.” Those were the words of Bernard Généreux, a resident of Lac-Saint-Jean, in the riding of the minister responsible for the Economic Development Agency of Canada for the Regions of Quebec.
The position of the hon. member for is also very disappointing. Seeing that his own government will not help the forestry sector, he is now calling for an emergency summit on the forestry crisis. I cannot help but wonder where the minister has been for the past couple of years. This feels a little like putting smoke detectors in your house after it is already on fire. It appears that the members wants to buy some time. The forestry industry does not need time; what it needs is tools to get through this crisis.
I see today as an emergency debate on the issue, to communicate the message and call attention to the reality facing entrepreneurs and workers in the forestry industry.
In our motion, we are proposing four concrete solutions based on a sustainable approach for the forestry sector. We are proposing these four solutions because the funds announced in the federal government's last budget are far from sufficient and do not meet the needs of the forestry industry.
The motion calls on the government to:
...establish a real plan as soon as possible to help the forestry industry, a plan including a series of specific, sustainable development measures, including loans and loan guarantees, refundable tax credits for research and development, a policy to encourage the use of lumber in the construction and renovation of federal public buildings and measures to support energy and ethanol production from forestry waste.
I am going to focus on a policy to encourage the use of lumber in the federal government's construction projects. Such a policy would increase the demand for lumber on the domestic markets of Quebec and Canada, and it could make us less dependent on the United States as regards this resource. When the United States stops building houses or lowers its production, lumber sales in that country go down. We are dependent on that market. When residential construction picks up, the Quebec and Canadian lumber is once again in demand. We must reduce our dependency on the U.S. market and increase lumber demand on the domestic markets of Quebec and Canada.
It is easy to talk about problems, but we should also propose solutions. One solution that would be both useful and symbolic would be to have the federal government encourage the use of lumber in the construction and renovation of its own buildings. Let us not forget that the federal government owns a huge real property inventory. We are talking about 13,782 buildings, including 198 that were built in 2008.
This means that, each year, the government spends a significant amount of money on the construction and maintenance of its own buildings. In 2007-08, the Canadian government's maintenance expenditures for Defence, Public Works, Correctional Service Canada and the RCMP alone totalled $827 million.
A number of governments have come to realize that using more lumber in their buildings was not only a concrete way of reducing greenhouse gas emissions, but that it also provided direct support to the industry. The list of governments that have their own policy on the use of lumber is already quite long and includes Quebec, France, Sweden, Norway, Austria and Finland.
Why does the Canadian government not have its own policy to promote the use of lumber in renovation and construction projects, instead of steel or concrete? It could set an example for private owners of buildings by forcing itself to review in a fair fashion the solution provided by lumber for structural and cosmetic purposes, through its bids and those of its corporations and organizations. If lumber is a relevant option, and if it is beneficial to a project as a whole or to some of its elements, the government's policies should give priority to its use.
By using more lumber, the government itself could reduce the amount of greenhouse gases released by its buildings. For each cubic metre of lumber used instead of concrete or steel, we produce one tonne less of greenhouse gases. For example, during the life cycle of a typical four story building, we could avoid producing 154 tonnes of CO2 by using a structure made of lumber, instead of concrete.
That is the equivalent of driving a car for 36 years.
Forestry resources can be a lever for development, provided we find alternative uses, focus more on processing and use forestry as a tool to foster the development of new market niches. Forestry resources must be used to generate more employment and more wealth by increasing processing activities and the production of energy from wood. We must foster research and development for new products and make the R&D tax credit refundable. We must stimulate the creation and development of new processing businesses. We must support the modernization of companies through a loan and loan guarantee program that will allow them to purchase new, more efficient production equipment and to diversify production. We must restore the funding to diversify forest economies, which was cut by the former Minister of Economic Development, the member for in the fall of 2006, and appoint regional stakeholders to manage it. We must improve the employment insurance plan to prevent workers from leaving the region when their income disappears. When a worker loses his job, becomes unemployed and eventually exhausts his benefits, what does he do? He looks at all possible options, even the possibility of leaving the area, which must be prevented by improving the employment insurance system. We must also put in place an income support program for older workers who are difficult to retrain. We should consider changes to tax rules for private woodlot owners so they can deduct forest management expenses and take advantage of income averaging, particularly when a high income follows a natural catastrophe.
Those are some of the solutions the Conservative government should consider to support the regions and the forestry industry.
I would like to conclude by asking the members of the House, particularly those in the Conservative government, whose ridings are feeling the pinch because of the forestry crisis, to persuade their colleagues to pass the motion I presented this morning.
I would point out that this motion urges the government to implement a real plan to help the forestry industry, and quickly. Things are tough in the auto industry, but the government should be helping the forestry industry too.
Let us not forget that the boreal forest is located on Quebec and Canadian soil. As such, this resource belongs to Quebeckers and Canadians.
Before I wrap up, I would like to summarize the motion, which refers to $170 million over two years. That alone is not enough to help the forestry industry. That amount will not meet the needs of the forestry industry and its workers. The motion proposes a four-part plan: a tax credit to help and support the forestry industry; a loan credit; promoting the use of lumber in construction and renovation; and using forestry waste to make energy.
I would like to conclude by pointing out that, in Quebec, 150 towns are fully dependent on forestry, and another 100 towns are 80% dependent on it. I am therefore asking the members to be compassionate and set aside partisan politics. The industry needs our support, and we are in a position to help.
:
Mr. Speaker, I am grateful for the opportunity to respond to the motion tabled by the hon. member for . I believe the hon. member would agree that he does not hold a monopoly on concern for the forest industry in the province of Quebec.
All members of the House are aware that, since taking office, this government has listened to Canada's forest industry, has recognized the special challenges this industry faces in all parts of the country and has launched a number of specific initiatives to assist Canada's forest industry.
These initiatives have not been knee-jerk reactions to complex problems. They have been designed to assist the industry in dealing with present day challenges but they have also been designed with the advice of the forest industry, which is to have that industry transition to a stronger, more competitive and sustainable industry in the future.
Of course, the hon. member does not seem to share the concern of the industry in all parts of the country. His concern is only with the industry in the province of Quebec, as if that industry had no connection with the rest of the country. He may not appreciate that measures geared to assist Canada's forest industry as a whole also involve and support the industry in the province of Quebec. It may not occur to him that there is a wider context to the challenges with which he claims to be concerned. It may not occur to him that the solutions proposed to face these challenges must be international as well as regional in scope.
The motion the hon. member has put forward calls for a real plan as though the measures already adopted by this government and the measures proposed in Canada's economic action plan are not real, as though the measures already adopted and being proposed do not have substance, even though the industry, including the forest industry in Quebec, was consulted in devising the plan.
The motion seems to be a form of self-delusion, if not denial. For the specific proposals put forward in the motion as constituting a real plan, they already exist or are being proposed in Canada's economic action plan.
My government is delivering support for an industry that is fundamentally important to our country, an industry that does not exist in one province only and that is facing real challenges. Among these challenges are a world-wide economic downturn, a global increase in competition and a sharp decline in the prices of commodities and products.
The long term outlook for Canada's natural resources remains strong but the current economic situation presents an unprecedented mix of challenges for Canada's forest industry.
In order to fully understand recent developments as they have affected the forest industry and to develop a further strategic appropriate response, the government did not hold a conference in Ottawa. My colleagues and I fanned out across the country and undertook extensive unprecedented consultations. We listened to industry leaders, provincial colleagues, territorial colleagues, communities and other stakeholders. We also listened to the people whose local mill had closed down, in some cases the only mill and the only employment in town.
We listened to the forest industry in all provinces of the country, not just the industry in one province. What did we hear? We heard that even though Canadians recognized that the current economic crisis originated outside our borders, they expected stable leadership that would protect and advance our economy today and in the future. They do not want economic uncertainty compounded by petty political rivalry. They want strong balanced leadership that offers a clear vision for the future and how to capitalize on Canada's advantages to realize that future.
Canadians are also aware that we continue to fare much better than other countries, thanks, in a large part, to the decisions the present government made. Nevertheless, they realize Canada is not an island and that success in meeting today's economic challenges requires leadership in aligning our national interests with the interests of others. This is a global crisis, not a provincial crisis.
We also heard that this crisis affords opportunities, opportunities to put measures in place today that will pay off down the road. In other words, we do not want short term, short-sighted ideological thinking aimed only at achieving immediate relief. Canadians recognize and Canadians in the forest industry recognize that the only worthwhile strategy consists of smart investments, not bailouts, investments that will strengthen Canada's advantage in the long term. This has been the strategy of our government since the day it first took office.
In accordance with that strategy, forest sector stakeholders called on our government for further support in areas such as worker and community adjustment, innovation, market development, access to credit and taxation. Canada's economic action plan includes a variety of such measures.
For example, $1 billion have been committed to a community adjustment fund to create jobs and maintain employment in communities that have been strongly affected by the downturn in the economy, such as forestry communities. This is in addition to the $1 billion already provided through the community development trust, which was established in 2008.
Time and again in our pre-budget consultations with Canadians across the country, we were asked for help to support workers and communities. The community adjustment fund will help immediately by mitigating the short term impacts of restructuring in these communities, such as forestry communities located in Quebec.
The fund will also support activities in areas of science and technology, community transition plans that foster economic development and other measures to promote economic diversification in various communities, such as in resource-based and manufacturing dependent communities. A total of $428 million in investments are being provided to the Province of Quebec, through the community development trust and the community adjustment fund.
I recognize the importance of these measures. I grew up in Cape Breton in the 1980s and the early 1990s. In those years in the community of Sydney, specifically, in Whitney Pier, we saw the closing of the steel mills, the closing of the coal mines and the complete shutdown of the cod fishery. Like the hon. member, I know what can happen to a community when key industries are no longer there and I know the benefits that adjustment funds can bring in these situations.
Our economic action plan provides $170 million over two years to support market diversification and innovation and improve competitiveness in the forest sector. The motion before us refers to this investment as only $170 million in funding. That shows me a lack of concern for the Quebec economy.
This investment includes $80 million for the transformative technologies program administered by FPInnovations headquartered in Quebec and $40 million to develop pilot scale demonstration projects of new products for use in commercial application. Those are precisely the kinds of program cited in the hon. member's motion.
An additional $50 million is earmarked for expanding domestic and international markets for Canadian forest products and to support large scale demonstrations of Canadian use of wood in construction. This includes funding to support efforts to encourage greater use of woods in non-residential construction across North America.
In Quebec, we are pleased to support the cecobois initiative as part of our strategy to grow demand for wood products.
There is a green element to these initiatives that is very important. After all, we cannot get more sustainable than wood. Wood is renewable, it stores carbon, and life-cycle analysis tells us it has a very low carbon footprint. We need to find ways to market wood and wood products to serve a growing need globally for sustainable products.
Sustainable development is our greatest competitive advantage. That is why it must be embraced as an opportunity, not as a cost.
Economically, sustainable development can mean the difference between short- and long-term competitiveness. Socially, it can be a determinant for quality of life and the livelihood of individuals and communities.
Forest industry leaders across Canada also told us that access to credit was a key priority for them. Through a combination of existing measures and new initiatives in the budget, an extraordinary financing framework will allow our government to provide up to $200 billion to improve access to financing for Canadian households and businesses. More specifically, for newer businesses, our economic action plan provides measures that can include at least $5 billion in new financing, to be delivered under our new initative, the business credit availability program.
Budget 2009 also provided Export Development Canada, EDC, with more financial flexibility to support business during the current economic downturn. EDC has working relationships with more than 90% of the Canadian forest industry and has new flexibility to firms in the forest sector and across the economy to address financing gaps in the credit markets.
There will be up to $50 billion in additional insured mortgage pools through the insured mortgage purchase program, bringing the overall size of this initiative to as much as $125 billion.
We are determined that these measures will assist in stimulating house construction and spawn new and innovative businesses with a beneficial effect on the forest industry.
Canada's economic action plan provides one of the largest infrastructure-building programs in our country's history. This too will have a beneficial effect on the forest industry. Infrastructure funding will include $4 billion in new funding for local and regional projects, $2 billion for urgently needed repairs at our universities and colleges, and $1 billion for a green infrastructure fund to support projects such as sustainable energy. This is in addition to the $33 billion for longer term projects our government has already committed under the building Canada plan.
As members know, there will be a new home renovation tax credit, providing eligibility for up to $1,300 in tax relief for Canadians undertaking home renovations. Each time Canadians invest in home renovations, they are helping to create jobs in construction and in building supplies in their own communities. In fact, the budget provides as much as $7.8 billion to build quality housing, stimulate construction, and enhance energy efficiency through the eco-energy home retrofit program.
Given the importance of wood in construction and renovation, this will stimulate additional domestic demand for Canadian wood and Canadian wood products, perhaps more than a billion board feet of lumber and hundreds of thousands of cubic metres of wood panels.
Our budget also builds on earlier measures to give Canada a tax advantage in the global competition for investment in manufacturing. Budget 2009 included an extension of the accelerated capital cost allowance to a flat-line two-year depreciation through the year 2011.
Our economic action plan permanently eliminates tariffs on a range of machinery and equipment, thus lowering costs for Canadian producers in a number of sectors. These include forestry and energy, and this measure is expected to save Canadian industry more than $440 million over the next five years.
To assist workers and their families, there is an $8.3 billion Canada skills and transition strategy to help Canadians by means of a three-pronged approach: to strengthen benefits for workers, to enhance the availability of training, and to keep employment insurance rates low for 2009 and 2010.
Finally, Canada's economic action plan provides a $1 billion investment to establish a clean energy fund to nurture the development and demonstration of clean energy technologies.
These budget measures are not a series of isolated programs designed to prod our economy from different angles. They constitute a whole and integrated approach to economic stimulus in which these programs reinforce and build on each other. They constitute a real plan. The objective is to spur innovation now in ways that will reap even greater benefits later on. Evidence of success can be seen in the variety of initiatives that are appearing in the forest sector today.
For example, FPInnovations, our national forest research institute, has been working with a national network of university experts on the development of paper-based biosensors that can detect, report and destroy toxins and pathogens such as SARS and listeria. This network is pan-Canadian and includes researchers at five different universities in Quebec: McGill University, Concordia, École Polytechnique de Montréal, Université de Montréal and Université du Québec à Trois-Rivières.
In addition, FPInnovations is collaborating with industry to develop next-generation building systems. These systems include design for the construction of six- to eight-storey buildings using a combination of wood, concrete and steel building materials.
Our government's focus is to build on our strengths: our deep and diverse resource endowment, the systems that support its development, and the people and ideas that together are responsible for Canada's resource advantage.
The measures I have mentioned are precisely the kinds of measures cited in the motion before us. Unlike the motion, however, they are not focused exclusively on one province. They are focused on Canada's national forest industry in all provinces, including the province of Quebec. Moreover, they reflect what the industry has told us they want. They reflect what members of the forest industry in the province of Quebec have told us they want.
In conclusion, I would suggest the hon. member not be so fast in characterizing the measures proposed by the industry in his own province as constituting no real plan.
:
Mr. Speaker, the Liberal Party will be splitting its time also and I will be splitting my time today with my hon. colleague, the hon. member for . I think he will be speaking among other things about the softwood lumber deal.
I am very pleased to have the opportunity to speak today about the crisis that is facing our forestry sector. The crisis is affecting thousands of families and their communities in every region and every province.
The minister spoke a few moments ago about the situation in the economy and the government's economic plan. However, one of the things that is very disturbing to us in the opposition and to Canadians across the country is what we are not seeing and what we have not seen in recent months from the government, and that is real action.
We know that in the 2007 budget $4.6 billion was approved for infrastructure. Of that money, only a billion has been spent. If the government were truly concerned, if it were truly awake to the situation facing the economy of this country, we would think that it would have long before now started to get that money moving.
In fact, we have heard claims from the government side that when the government cut the GST nearly two years ago that was really because it knew there were going to be problems in the economy, that it foresaw these economic problems. If that were true, which it clearly is not, surely the government would have also launched spending programs to stimulate the economy to prevent us from having the problems we are now in. Unfortunately, we did not see that.
What are the results? Just last week in my province of Nova Scotia, AbitibiBowater and Minas Basin Pulp and Power announced shutdowns and layoffs that will leave hundreds of families with an uncertain future. Those people are worried about putting groceries on the table, about paying the mortgage and looking after their kids. It is the same story in dozens of communities across Canada, whether it is Domtar, Canfor or Tembec making the headlines.
Like other opposition MPs in other parties, the Liberal caucus is concerned with the fate of an industry that is vital to over 300 Canadian communities and has spinoffs in many other communities. So many of these communities are in rural areas and forestry makes up at least 50% of the economic base, particularly in those rural areas.
When we see employment in this sector fall by 9.1% as it did in 2007, we know that many of these small communities are severely impacted by such significant job losses.
Since 2006 the forestry industry has looked to government to establish a plan of action. The Bloc Québécois motion talks about some specific policies it thinks should be included in our forestry policy: refundable tax credits for research and development and measures to support energy and ethanol production from forestry waste, and we look forward to that being developed because there is a lot of research going on, as we know, into cellulosic ethanol which is a hopeful product for the future and I think that is a very good suggestion; the use of loans for loan guarantees; policies to encourage the use of lumber in construction; and the renovation of federal buildings. I think all of these are worthwhile suggestions.
The fact is the Conservative government should have already developed a plan for the forestry sector. The Conservatives have known, as I was saying earlier, for several years now that in this case, and they may have not really known what has happened to the economy over the past six months, the forestry industry was in trouble. That has been clear for quite a while.
In fact, in June of last year the Standing Committee on Natural Resources produced a report that outlined 23 recommendations but then, like now, the Conservatives failed to recognize how serious the problem was and failed to provide any meaningful assistance.
Here is a news flash. Tax cuts are not much help if one is not making a profit. All the Conservative government has delivered are empty promises, political rhetoric and recycled programs.
Several weeks ago the was in Sydney, Nova Scotia, where she grew up, her home town, to announce a worn over $1 billion community development fund.
You're going to hurt my feelings.
Hon. Geoff Regan: Mr. Speaker, I am sure the hon. minister wants to hear the points I am making and I am sure that he will settle down and listen quietly.
The announcement of the $1 billion community development fund that she made in Sydney looked suspiciously like the same announcement made a year earlier. That is not good enough.
Instead of investing in a stimulus package over a year ago, the Conservatives sat on that $4.6 billion, that I mentioned earlier, that was approved in the 2007 budget for this current fiscal year that ends at the end of this month. Canadians cannot understand why the government was so incompetent that it spent less than $1 billion of that money, especially if, as it claimed, it foresaw all these economic problems. How is that possible? It certainly makes no sense to me and I am sure my hon. colleagues on this side of the House would agree.
In New Brunswick, there is a shovel-ready project that could put 400 people to work for a nominal cost. It is called silviculture. The New Brunswick Forest Products Association has made a request to the federal government but still has not received a decision from Ottawa. The association hopes that someone in the government across the way recognizes that this is important for an industry that has endured thousands of job losses in the past three years. It is warning all of us that time is running out to get that money flowing for the 2009 planting season. I do hope that someone in the Department of Natural Resources or in the government is listening, and that they will get moving on this request and others from across the country.
Is it any wonder that people do not trust the Conservative government when we hear of things like that? The latest performance report for natural resources shows the Conservatives have a history of not getting the job done that goes well beyond its infrastructure investments or the lack thereof.
The NRCan performance report states that “funding for the Forest Industry Long Term Competitiveness Initiative in the amount of $10.4 million was deferred for future year spending”.
That is a little hard to imagine. I was just talking about, and we heard it earlier today, what is happening in the forestry industry. The recent economic problems have added to it, but it is not a brand new problem. There have been problems and difficulties in the forestry industry for the past number of years, and yet here we see that the government, rather than using the money that it has allocated and promised to use to support the industry, has put it off for later. What the heck is that about? How is that competent management of the industry or of our economy? Why would any competent government defer spending on an industry that was obviously facing severe challenges?
I believe this speaks volumes about the government's lack of commitment to a vital sector of our economy and the thousands of families who keep asking why the government has abandoned them in their hour of need. As I said earlier, it is no wonder that Canadians do not trust the government.
Unfortunately, Canadian forestry workers, whether they live in Nova Scotia, Quebec, Ontario, British Columbia or elsewhere, are the ones suffering as a result of a government that failed to invest in their futures, that failed to understand the importance of research and development, and a government that negotiated a sellout softwood lumber deal, about which my colleague from will speak further.
The fallout from the Conservative softwood lumber sellout continues to plague the sector. Saw mills in four provinces are now subject to a 10% export tax. Even in the face of mill closures in Quebec and Ontario, the Conservatives refuse to admit this is a bad deal. Ontario companies will have to pay in excess of $68 million to meet the 10% export charge imposed because of bad decisions by the Conservatives. It is why we are here today.
Canadians know the Conservative government abandoned the forestry sector by not preparing the industry for the current economic downturn several years ago. In contrast, in November 2005, the Liberal government committed $1.5 million for the strength and sustainability of Canada's forestry industry. This strategy included new funding for workers, the industry, communities, long-term innovation, and provided immediate assistance as well.
I see my time is at an end. I look forward to comments and questions.
:
Mr. Speaker, first of all l would like to thank the hon. member for for his insightful comments.
[Translation]
I thank my Bloc colleague for his motion and want him to know right off that I share his opinion on the need to establish a plan to help the forest industry. My party therefore supports the spirit of this motion. However, my colleague will not be surprised to hear me say that the plan should apply to the industry as a whole and not just to the portion of it in la belle province of Quebec.
The forest industry in Quebec, the Maritimes, Ontario, Alberta and British Columbia is facing major challenges these days. If we think back, we will remember that the Liberal government itself put forward a forestry strategy in 2005.
[English]
On November 24, 2005, the Liberal government announced, in partnership with forest industry stakeholders, a true plan for the forestry sector, a forest industry competitiveness strategy committing $1.5 billion over five years. This strategy included: $215 million for the development of new technologies in areas such as the pulp and paper industry to enhance its competitiveness; $50 million to support the forest industry to develop bioenergy and cogeneration power technology; $90 million to support innovation in value-added wood products; $66 million in wood product market development; $10 million to enhance workplace skills in the forest sector; $150 million to help forest dependent communities diversify economically; $800 million in loan support to help Canada's forest companies invest to improve competitiveness; and $100 million in loan support for small forest sector businesses.
We can see that the Liberal government had anticipated quite a bit of what is happening today. Upon forming government in 2006, the Conservatives, however, cancelled the plan. Today Canadian forestry workers are paying the price for that action. Instead of investing then in improving technology, skills and competitiveness to strengthen the industry and to save jobs, Canada now faces tens of thousands of job losses. Since the Conservatives took over government, Canada has lost 18,000 forest sector jobs. Not only that, they negotiated a poor settlement on the softwood lumber dispute and we are paying the price today.
[Translation]
As regards the softwood lumber agreement with the United States, the Liberal Party of Canada has always supported a two-step approach to resolving the dispute over softwood lumber—arbitration by the courts and negotiation.
On September 19, 2006, the Liberal Party voted against the agreement on softwood lumber, and, on December 6, 2006, against Bill on the softwood lumber export fees. The Liberal Party wanted to be sure the Conservative government would respect the North American Free Trade Agreement and keep its election promise to recover all the customs duties collected illegally by the United States.
We believe the softwood lumber agreement is full of holes for the following reasons.
It is a reversal of the position adopted by successive federal governments and supported by NAFTA and World Trade Organization trade panels that our softwood lumber sector is not subsidized.
It compromises Canada's chances of helping a sector already in difficulty, by handing part of our sovereignty over our natural resources to our American competitors. The fallout of such capitulation will be felt in future disputes, which will no doubt arise not only in the softwood lumber industry, but also in other sectors facing the same accusations by our American competitors.
It creates an export tax, which, at the current rate, is in fact higher than the illegal American customs duties of the past.
It strips NAFTA of any credibility as arbitrator of trade disputes and voids the principles governing such discussions.
It drops $500 million into the hands of the American forestry sector, which uses it to fund legal and political attacks against the Canadian industry and another $500 million into the hands of the American government.
And, finally, it contains anti fluctuation provisions that will deny the Canadian industry the flexibility it needs to deal with the unexpected, such as the infestation of the pine beetle.
The Conservatives claim that their softwood lumber agreement put an end to the dispute, but the United States began consultations questioning the forestry policies of Ontario and Quebec within seven months of signing the agreement.
Nova Scotia, British Columbia and Alberta face the same attacks. It is the $500 million the Conservatives handed over to the Americans that is being used to finance these attacks. On April 4, 2007, the Liberal Party announced that a Liberal government would organize a national summit on the forestry sector bringing together the stakeholders—public officials, the localities involved and the forestry sector—to work out responsible measures for the environment and protect jobs in the Canadian localities.
[English]
Instead of being proactive in investing to strengthen the industry, the Conservatives are now being reactive, announcing band-aid programs. The Conservatives' lack of vision has led to this crisis in the forest sector and caused many Canadians their jobs.
For our softwood industry, the Conservatives' softwood lumber deal has also been a failure. The Conservatives rushed into a flawed agreement that left $1 billion in the pockets of the United States. The Conservative government said that the softwood lumber agreement would put an end to litigation, yet Canada is back in court.
Unlike the Conservatives, the Liberal Party believes that there is a role for government to play in helping these sectors and the workers who depend on them.
[Translation]
My party has long recognized that action is essential. Accordingly, it is prepared to support a real plan to help the forest industry, a plan that would include a series of specific measures to ensure sustainable development.
:
Mr. Speaker, I will be splitting my time with the member for .
As the New Democrat critic for forestry, I thank the Bloc Québécois caucus for tabling this motion and for putting the interests of our forestry industry, our forestry dependent communities and our forestry related workers on the legislative agenda.
For many inside and outside of Quebec, the size and importance of this industry and the depth of the crisis in which it is mired is simply not known. I have some facts about this important industry. The forestry industry is an $84 billion a year industry. It directly and indirectly employs 863,000 Canadians. Forestry related manufacturing accounts for a full 12% of Canada's total manufacturing output, and there have been more than 45,000 layoffs and job losses in the industry since 2003.
Between January 2003 and June 2008, there have been at least 26 permanent mill closures in Quebec alone and more than 54 indefinite closures. Together, these closures have cost the forestry industry, communities and the families of Quebec more than 11,000 well-paying jobs. The number of mill closures and job losses related to the forestry industry in Quebec during this period were more than the share of any other province in Canada during this period.
We must make no mistake, the forestry sector in Canada is in a crisis and the forestry industry, communities and families in Quebec are suffering a great deal. I find much I am in agreement with in this motion by the Bloc.
The $170 million for the forestry sector in the budget pales in comparison to the nearly $4 billion in assistance for the auto sector. That is not to say that the auto sector does not clearly need it, but the forestry industry has been completely ignored by the government. These two industries are roughly the same size but the forestry industry employs nearly 400,000 more people and it has had more than four times the real and potential job losses of the auto sector.
The government has shown little interest in Canada's forestry industry, our communities and our workers, and I am glad that this motion states as much.
The Bloc is correct in noting that the forestry industry urgently requires loans and loan guarantees from our federal government. Small and large producers began having their credit lines cut three years ago, so the payroll cuts that have occurred during this period are no surprise. Loans and guarantees will help Canada's modern and efficient mills keep operating, which will keep our small communities active and keep our hard-working families housed and fed during this downturn.
We also need a made in Canada policy for federal procurement so that Canadian lumber is used in all federally subsidized building projects in order to keep our lumber and wood product inventories turning over.
We also need more research, development and utilization of biomass technology and products. The Atikokan Bio-Energy Research Centre is within the boundaries of my riding. If any members of the House, including the , would like a tour, I would be more than happy to show them around.
I am in broad agreement on each of the points in the motion but I wonder why the motion did not state what so many stakeholders and parliamentary committees have stated in the past, that Canada needs a national forestry summit to help our forest industry, communities and families cope with this crisis in the short term and come out of this crisis stronger in the long term.
I do not speak without knowledge, interest or passion about this issue as I am from a forestry dependent community and represent several others in my riding.
Fort Frances counts upon forestry for 67% of its economic activity and wealth. The main employer in Fort Frances is the AbitibiBowater pulp and paper mill. It has a cutting edge biomass furnace just coming on-stream that reuses wood waste to create heat and energy for the processing of pulp and paper. It is as efficient and modern as any plant in Ontario and it has just laid off its entire workforce for the second time in six months.
Ainsworth in Barwick struggles to stay open, even though its value-added product retails for one-third of what it did a few years ago.
Buchanan's Longlac mill, a modern plant, is closed. Ken Buchanan worked hard over the years to stay in northern Ontario and invested in northern workers. In fact, 85% of the labour force at this plant was from first nations communities.
Nickel Lake Lumber, which only sells a value-added product, has 16 employees. It could expand its operations with a little help from the government.
Northern Hardwoods in Thunder Bay, as I speak, is in the process of turning off the lights and heat. When the market improves, it will cost millions of dollars to start up again. It does not need to be this way.
As members can see, the forestry crisis has hit home personally for me. I feel the pain that is being felt in industry towns and households in Quebec. The federal government needs to provide leadership on this issue and develop a plan to assist, not just the forestry industry but the communities and households that are dependent upon the industry for their livelihoods.
I hope the entire Bloc Québécois will support my call for a national forestry summit that will bring together all levels of government in Canada, a variety of ministries and opposition representatives at the federal and provincial levels, industry and union representatives, academics, aboriginal stakeholders and environmental groups interested in sustainable forestry management. Such a national summit would help us find ways to help the forestry industry, dependent communities and working families survive the crisis and prosper once demand for forestry industry products increases to more normal levels.
I thank the Bloc Québécois for putting forward this motion and for putting the national forestry crisis on the legislative agenda. I agree with its position on this matter and hope it will support my call for a national forestry summit to help the Quebec forestry industry, communities and households that have suffered through this crisis. I will be supporting this motion.
:
Mr. Speaker, I am very happy to be able to speak about this issue, which is important not only for the people of my riding, Algoma—Manitoulin—Kapuskasing, but also for many other communities across Canada.
This motion is timely, but it is sad that the government was not aware that it should have used the budget it so recently tabled to respond to the forestry industry's concerns. The government is letting an opportunity go by and if it were not for the opposition parties, the challenges facing the forestry industry would not be raised.
[English]
The forestry industry was one of the first sectors to feel the current economic pinch. When the housing bubble broke in the United States, the effect was seen in the dropping sales of forestry products long before the remainder of the economy began to feel the fallout of that contraction. It would have been a good time to act and then to stem some of the bleeding. It was a time to be proactive and show Canadians that their government was working for them, that it was out to protect them, that it recognized the warning signs and had a plan to help them.
However, the government does not operate that way. To be fair, it is hard to notice these kinds of trends when people have their heads stuck in the sand. Instead, the government is acting as if all is well in the forestry sector. It would like to have people believe that there is nothing but sunshine as a result of the softwood lumber agreement it reached with the United States. It turns out that the softwood issue was a bit of foreshadowing on things to come from the United States. Increasingly, the U.S. has become protectionist, abandoning the nuts and bolts of trade agreements and hiding behind state laws that allow for protectionist procurement.
We see this right now with respect to the steel and iron exports and have seen a protectionist agenda at play with the flawed deal the government negotiated for softwood lumber exports. Now that we have entered a global credit crunch, we see just how bad that agreement is. We also see just how unprepared the government is to deal with real financial challenges. It has no idea what it is meant to do. It throws money at construction and trades and ignores our resource-based jobs. It has a cart on a different track than the horse.
The government is so far off the mark with its stimulus. With only $170 million over two years, there is little in the way of recognition of the severity of the problems that face the forestry sector.
I have done something that I hope many other members have done as well. I have met with forestry companies in my constituency and have discussed the challenges they face. I say hope because I cannot see the evidence that shows me many government MPs have in fact done this. I do not believe the government's response to the sector matches what I was told it required to get through the credit crunch we are experiencing.
First and foremost, companies are asking for access to reasonable credit to keep their operations above water. They are not asking for a bailout. They are only asking for a leg up. However, it will take much more than the $170 million over two years. They are asking for tax incentives for investment and innovation. They are looking for investment to help with developing and promoting products. They would like to see waste from the industry become part of a green solution for our energy needs.
These seem like reasonable requests from an industry we are absolutely certain will rebound from this downturn. We truly believe it is important to keep this sector working. We have too many examples of what can happen when the mills shut down. In northern Ontario, there are many shrinking communities and a pressing need to reverse this trend. We will climb out of this recession. When we do so, we are going to need these communities. We are going to need these workers as well as the forestry products.
The population is dropping at an alarming rate in places like White River. If we do not take the time to protect these small communities, we will have to spend even more to bring these communities back to the vibrant places they are, or have been recently, where a family can live and workers do not have to worry about the basics and can concentrate on putting out a good product. There are tools to help retain these communities. There are ways to ensure that a town does not have to disintegrate because a plant shuts down or a mill closes.
We can use their products as much as possible. We can ensure that the employment insurance system works to keep these workers in their communities and help keep these communities vibrant so they will be there when we need them. We can implement income support programs for those older workers who will have the most difficulty relocating. Economists like to think in terms of market rationalization, cheap, portable labour. These all sound like great concepts until workers realize that they are cheap, portable labour and that the death of their own towns and destruction of their way of life is the market being rational. It is a story that is repeated time and again in northern Ontario and it does not have to be this way.
I am not naive. I realize there will be situations where workers will simply have to go and find another place of employment. We could do something to help with that as well.
The Communications, Energy and Paperworkers Union is calling for the establishment of a national adjustment fund for workers, their families and communities in the event of closure or restructuring, but we have heard nothing from the government about this. Shame on it.
CEP is also calling for the to call a national summit on the future of the forestry industry. We would welcome such a move and would see it as a sign of recognition from the government that there is a problem and that it has a role to play in the remedy.
This makes great sense. The forestry sector is vital to the Canadian economy. It is very comparable to the auto industry, yet is not receiving the same level of attention from the federal government. Perhaps we should be considering government assistance on a level similar to that being proposed for the auto industry. We have to remember that the forest products sector is one of Canada's leading industries, shipping over $40 billion of goods annually. We have to keep our eye on the fact that forestry provides hundreds of thousands more jobs across Canada than the auto industry.
We also must remember that forestry jobs are good jobs. The average wage per employee was $46,300 in 2005. The national average per employee is $37,900. Each of these jobs creates an estimated four spin-off jobs. Most important, we have to remember that the forestry sector is an integral part of our identity and our economy and will require a collaborative effort from industry, labour and government, to create the conditions in which this sustainability can flourish and keep these important jobs in our communities for generations to come.
In my riding I have seen many mill closures and others are just struggling to survive. We really need the government to step up to the plate and provide them the reasonable credit they need and also help them with regard to their energy needs because that is sinking them.
I could go on and on about forestry closures.
The impact of EI in these communities certainly has been great as well. To keep workers there and hopefully find employment, while we look at the return of the forestry sector to what it needs to get to, we need to ensure we have changes to EI. That is fundamental to assist workers when they need it the most.
I cannot tell members too often the importance of the spin-off effect on these jobs. Companies have told me that they will no longer be able to exist and that they will not be able to function properly or even start up again should they close. The government is not coming forward and assisting them. If we lose our forestry sector, the spin-off jobs will be detrimental, not only to Canada as a whole. The government has helped the auto industry, but who will buy cars if our people are unemployed?
I thank the Bloc for its motion.
:
Mr. Speaker, I will begin by advising you that I will be sharing my time with the hon. member for , a colleague who is very familiar with the softwood lumber and forestry file.
It is with great interest that I rise to speak here today on this Bloc Québécois opposition day to address an issue that is very important for Quebec, of course, and all of Canada. Naturally, I am referring to the forestry crisis we are seeing in many areas of Quebec, as well as the Conservative government's refusal to take action on the matter.
The motion we moved here today denounces the Conservatives' failure to act in this file, and particularly the vastly inadequate measures included in the last budget. The motion also proposes to the government a series of measures to help the forestry industry.
While the forestry crisis persists throughout Quebec, the Conservative government's recent budget revealed that it remains completely insensitive to the difficulties facing that industry and the communities that are affected. When will this government understand that its approach is simply unacceptable in the context of the current crisis and that it must immediately start listening to and working with forestry stakeholders to help this industry get though these tough times?
The Quebec forestry industry accounts for nearly 88,000 jobs in various sawmills and pulp and paper plants, or about a third of all Canadian jobs in this sector. The economies of some 230 towns and villages in Quebec are heavily dependent on it, and 160 of them are totally dependent. The forestry industry is going through a severe downturn that poses a grave threat to many of these communities. Just between May 2002 and April 2005, more than 10,000 jobs were lost in the Quebec forestry industry. Since April 2005, the situation has only grown worse, with more than 21,000 job losses in the Quebec forestry industry and related areas.
Left to its own devices during the softwood lumber dispute, when the federal government refused to provide it with the loan guarantees it needed to stay afloat, the forestry industry was unable to face the mounting value of the Canadian dollar at the time. Forestry companies lost their competitive advantage on foreign markets, especially in the United States. Now the Quebec forestry industry has to deal with a U.S. economy that is slowing rapidly and is in crisis, resulting in a major reduction in timber sales and collapsing prices.
It may also be faced with surge in protectionist sentiment in the United States, which would further undermine sales south of the border. I recently attended the winter meeting of the National Governors Association in Washington. I had an opportunity to discuss some pressing issues, such as the trade in softwood lumber we are currently debating, with a number of U.S. governors and congressmen. We were told that some senators and governors from southern states were critical of U.S. imports of Canadian softwood lumber and were asking the American President “to take whatever action is necessary to fully address Canadian unfair trade practices in the softwood lumber sector”.
Even if these approaches to the American President are politically motivated, I think we need to be very vigilant. They show that there is a definite protectionist trend in the United States. As I was saying before, there is a major crisis in the forestry industry in Quebec and urgent action is needed at least to mitigate its effects. The government does not seem to understand this and is being negligent in providing assistance in its last budget that is not nearly enough, and I would even say, that is shameful and insulting.
With the support of the Liberals, the Conservative government provided the forestry sector with no more than a mere $170 million in its last budget. That is a disgrace. At the same time it decided, with the support of the Liberals and the Conservative members from Quebec, to invest more than $2.7 billion to support the automobile industry in Ontario. We are not opposed to this, but we think that the Quebec forestry industry is just as important, and even more important in terms of jobs. In the opinion even of the Québec Forest Industry Council, the $170 million that was announced over two years is far from enough and hardly reflects the needs flowing from the crisis in the Quebec forestry industry.
The Conservatives and the Liberals are showing their contempt for this industry which is the lifeblood for many Quebec regions. However, the Bloc Québécois is proposing a series of measures to support our forestry companies: loan guarantees for the purchase of more efficient production equipment; massive investments or tax measures to promote innovation; R and D for the industry; making the R and D tax credit refundable so that companies not turning a profit can innovate and develop new products.
In addition, it is important to mention that none of these measures contravenes the softwood lumber agreement, no matter what the Conservative minister says. For weeks, the Bloc Québécois has been asking the government and its Quebec ministers which section of the softwood lumber agreement prevents the federal government from providing loans and loan guarantees to the Quebec forestry industry. This government does not have an answer and chooses to ignore us. No one in the government, including the can quote the section in NAFTA or in the softwood lumber agreement.
Why? Because the agreement does not prohibit the use of loan guarantees. This position is shared by the Quebec Forest Industry Council and the Government of Quebec, which allowed Investissement Québec to provide guarantees.
The position of the Conservative government, including the Quebec MPs, only shows that it prefers to bow down to the U.S. protectionist lobbies that complain about the smallest initiative that will help the forestry sector. But above all, it proves that this government does not want to help Quebec's industry. During this time, what have Quebec Conservatives done? They have remained silent and have refused to stand up for Quebec.
In closing, this motion addresses the needs of the forestry industry and the communities that are dependent on it. For that reason I am asking that all members, especially Quebec members, support this motion.
:
Madam Speaker, I will try not to get carried away during this debate, because I know our interpreters sometimes have a hard time translating what I say when I get carried away. I will try to stay calm, but this is a debate that quickly becomes emotional for me, because the Abitibi—Témiscamingue region has been hard hit by the softwood lumber crisis.
But first, Madam Speaker, I would like to congratulate you. I have not had the chance to speak in the House since you were appointed as deputy chair of committees of the whole, and for the time being, you are presiding over the work of the House. Congratulations.
That being said, I am extremely concerned about the softwood lumber situation. I will give some examples. I have a specific example of what is happening in our area. In 2006, we approached the Conservative government that had been elected. We will all recall that there was a softwood lumber crisis. At the time, when the softwood lumber agreement was signed, the NDP and the Liberals voted against it and we voted with the Conservatives to support the agreement. We supported the agreement for several reasons. First, because the workers, the employers and the municipalities asked us to, because otherwise they were all going to shut down. That is the nub of the problem. I may have the Minister’s answer, since he does not want to give an answer regarding the section that deals with the softwood lumber crisis and the reason why he does not want to give loan guarantees. We asked the government then and we are asking it again—we asked the Speaker and the Minister—to clarify the so-called anti-circumvention clause. I am going to speak a little on that subject.
I know I have only 10 minutes, but this is an extremely important clause and it was so vague. We told the government: “Be careful, this absolutely has to be clarified with officials at Canada Economic Development and the Department of International Trade,” because they are going to come back to us and say: “The assistance works like this, it does not work like that, and you cannot do that.” Here is an example. In Barraute, in Abitibi-Témiscamingue, there is a company that manufactures wood box springs for beds. That company asked for assistance from the federal government and CED said: “Listen, it is not clear. We do not know whether you are going to be able to ship that to the American market. If you ship that to the American market, it comes under the anti-circumvention clause and it might violate the agreement.”
That is the issue. The government absolutely has to help companies get through the crisis, and there are not a lot of ways of doing that, there is only one. These companies have to be given loan guarantees.
In my riding, there are Tembec, Abitibi Bowater, Kruger, Domtar and four independent companies. The first four I just named—I will repeat them: Domtar, Kruger, Abitibi Bowater and Tembec—are not doing well. They are actually on life support. We were expecting Abitibi Bowater to declare bankruptcy yesterday or today. That has not happened, luckily for us. But for us in Abitibi—Témiscamingue, this means more than 2,000 direct jobs. For a region with a population of 130,000, if we lose 2,000 direct jobs, plus another 4,000 indirect jobs, we have just shut down several villages. As it stands, Launay has shut down, Béarn has shut down.
My colleague from Abitibi—Baie-James—Nunavik—Eeyou will be talking about Lebel-sur-Quévillon again. But in my riding, I have to say that Tembec is not doing well. They have asked the federal government for assistance.
If the ministers on the other side could listen to me for 30 seconds—I am thinking about the , and especially the—if they could get together and understand that a situation like that is dangerous for our regions, then we would have made some progress. We might think they do not talk to one another. We might think that the ministers and departments find it very difficult to talk to one another.
I know this because we have worked with Tembec on applications to Canada Economic Development. CED told us it would help us, but Export Development Canada thinks that this would violate the softwood lumber agreement. That agreement has really hurt us. It was a negotiated agreement, but to use an expression from legal jargon, it was “with a gun to our head”. Sign it or you die. That is exactly what is happening now. We have proposed 15 measures that could be useful, and I am going to review a few of them for the benefit of my colleagues opposite.
The forestry resource could generate more jobs. Recovery is an option. Some companies, such as Cyclofor, in my riding, need help. When Cyclofor goes to cut blocks, it recovers everything left in the cutting area to the level of about three 3 centimetres of sediment and chips the residue. What does it do with the chips? They are not selling anymore. It has to transform them into something else. It needs help with research and development to come up with new products and find new uses.
I will not talk about stimulating the creation and development of new processing industries. This crisis may give some regions an opportunity to reassess and to change their tack. The forest is like a ship, and needs to change tack significantly in order to change the focus of its production. We must stop exporting 2x4s. This expression is understood in the forestry industry. At the moment, 2x4s are shipped out. Houses built there are transformed, and often the 2x4s leave Abitibi-Témiscamingue, head off to Toronto, cross over at Detroit and come back to be sold to us. This is unacceptable.
Our motion today encourages the government to do its homework. New product research and development must be stimulated. How? Personally, I sent three proposals to Canada Economic Development, for example. One department is not doing its job, and it is the Department of the Environment. That department could help the forestry industry hugely by assisting research on producing ethanol from forestry residues. Instead of making ethanol from corn, it could be made from forestry residue. The mills are there. The people are there who can work their way out of this.
I have another example. There is talk of establishing pellet mills, processing tiny bits of wood into the fuel used in slow-burning wood stoves. Pellets can be used in place of wood. One example is Écoflamme in Témiscamingue. Tembec has its head office there. If it fails, some 500 jobs will be lost and everything around it will close.
We are in a crisis. I will close by asking the government to be sensitive and concerned about the affected regions and to think about helping them.
The measures we have taken are vital. The government could hep us if it wanted to.
:
Madam Speaker, I am very pleased to rise today because it will help me set at least a few things straight. I will be sharing my time with the hon. member for .
For a few weeks now, the Bloc and its allies have been engaging in another witch hunt, this time on the backs of workers in the forestry industry, in order to score political points. That is how they operate, as we all know, regardless of the subject or the people they use. They try to divide people, turn them against each other, in order to separate “us” from “them”.
Before and during the last election campaign, the favourite ploy of the Bloc and its allies was to set Quebec against Alberta. Now they are trying to turn Quebec against Ontario. It is always the same ploy, only the names change.
I myself am from one of the regions and return there every weekend. And every weekend, I am visiting the villages we are discussing today. The working people there know very well what they are facing and what we are doing for them. I can understand they want more. I am with them in the field every weekend. The economic health of my riding depends to a large extent on the forestry industry, which is currently in such difficulty. We are fully aware of the problems that the families of working people have been dealing with for several years now. People should not be fooled, though, and take as gospel truth what the Bloc and company say because their real aim is to divide people, stir up quarrels regardless of what they are about, in order to promote their desire to separate Quebec from Canada and get elected or re-elected.
This crisis is nothing new, as we all know. There has been a crisis in the Quebec forestry industry for a number of years, as can easily be seen by the general context. First there was the Coulombe report, which recommended a 20% reduction in the allowable cut. Then there was the chief forester, who basically confirmed this and even imposed more in percentage terms for certain regions and species. A northern limit was also imposed. In addition, there have been the anti-forestry campaigns of Greenpeace and other groups. We have also had all the losses due to the pine beetle in western Canada and the spruce budworm.
There were a lot of other factors as well, including the changes in the value of the Canadian dollar, the cost of energy, corporate mergers, and the falling prices of wood and paper. These have not all been under the control of a single government.
The current problem with plant closures is linked to market conditions. No company ever closed down plants because they were selling too much. The problem we are facing now has to do with the markets where we sell our products. Ninety-six percent of the softwood lumber exported by Quebec goes to the United States. Eighty-three percent of Canadian lumber goes to the United States. More than a million houses are now up for sale in the United States, and it is easy to see what the impact is on our forestry industry.
Considering all these factors, one understands why, since it was elected in 2006, our Conservative government has adopted a series of measures to support forestry workers. The government’s actions since we came into office must be looked at as a whole, and particularly within our limits for intervention, since the largest part of the forestry sector comes under provincial jurisdiction. Our possible areas of intervention include secondary and tertiary processing, innovative projects—research was mentioned earlier—and the development of new markets, which is essential. Everyone in this House knows that but ignores it when it comes time to assign blame.
Even before tabling Canada’s economic action plan, on January 27, our Conservative government had settled the softwood lumber dispute, which produced $5 billion for the forestry industry, including $1 billion for Quebec, while at the same time ensuring stability for the workers who depend on this sector.
We also took other measures, while respecting the agreement with our American partners. We reduced the fiscal burden on Canadians by $200 billion. We established the community development trust with funding of $1 billion, of which $217 million was allocated for Quebec. We invested $72 million in targeted support for older workers.
In the 2008 budget we added another $90 million and in our economic action plan, we provided an additional $60 million for older workers. We set aside $127 million for innovation and development of new markets. We know how valuable innovation and new markets are.
In our January 27 economic action plan, we added $170 million in support for innovative projects and development of new markets. We have established a $1 billion community adjustment fund to assist communities affected by the economic crisis, and more than $200 million of that will go to Quebec.
That, of course, includes forestry communities that are seeking to diversify their economies and to offer new work opportunities for young people living in those areas.
We have also introduced a green infrastructure fund, which includes forestry biomass and new energy sources, and measures to encourage renovation and construction that should stimulate the demand for lumber.
I am also very proud that our plan responds to the immediate needs of workers and communities. We have targeted an amount of $8.3 billion to help Canadian workers, through improved employment insurance benefits and increased access to training. For example, we have provided an additional $500 million for claimants in long-term training programs. We are also extending work sharing agreements by 14 weeks to a new maximum of 52 weeks. This program is very popular and much appreciated at this time in all regions of Quebec and the entire country.
In addition to freezing employment insurance premiums, we have extended the eligibility period by five weeks to help workers who have lost their jobs over a long period. Our economic action plan also provides more money to help companies through Export Development Canada, which works with some 90% of the forestry companies in Canada.
Mr. Avrim Lzar, president and CEO of the Forest Products Association of Canada, in other words for the entire country, had this to say about the budget:
“The government has clearly heard the message and embraced our vision of becoming the producers of the best quality, most innovative and greenest forest products in the world. And it understands that in order to get there Canada needs to attract investment and secure the jobs of nearly 300,000 skilled Canadians forest workers and the communities they work in... We are very encouraged by the budget measures aimed at ensuring access to credit for Canadian businesses, particularly the expansion of the powers and financing authorities of the EDC, and we look forward to working with the government to determine how these measures can help our companies and workers .
I would remind hon. members that Mr. Lazar represents a large number of Canadian forestry companies, including AbitibiBowater, Canfor, Kruger, Louisiana-Pacific Canada, Tembec, Weyerhaeuser Company, to name but a few. If anyone wonders how important Mr. Lazar is in the world of Canadian forestry products, he is the head of the largest Canadian association.
So we have proof that it is as false as false can be to claim that the government has not done all it could in this sad situation. What is more, it must be noted that the arbitration ruling on softwood lumber has just been brought down, on February 26, and requires Canada, the provinces and the forestry companies to pay $68 million in penalties, and this is a ruling that cannot be appealed. This ought to serve as a reminder of how cautious we need to be when dealing with the forestry industry as well as a reminder of the softwood lumber agreement.
So we must keep in mind that caution is of the essence. Mr. Lazar has also said: —the government cannot do much without the risk of creating new problems at the border”. In his opinion, any direct aid following the model of the assistance given to the auto industry might jeopardize the industry's access to the US market, and that must be avoided at all cost.
I would add one more thing: the forestry sector is, of course, the industries, but it is more than that. It is a natural resource. It is workers, independent contractors, loggers, truckers, and many other people who are often our friends or family members. We are working every day to find better solutions to help those families, and we will continue to do so.
I would like to end with a reminder of something that is of the utmost importance. The Bloc and its allies have chosen to play petty politics at the expense of the workers. That is their choice. I will not play their game, because I feel it is more appropriate to work with people who are looking for solutions to the world economic difficulties that are having repercussions here. I am in favour of bringing people together, not dividing them.
I must, however, reply to the Bloc members, and in particular the hon. member for . Can you name a single project or a single job that has been created by your actions , with the exception of your own job and those of the people who work for you, since you became a member? Obviously the answer is as simple as it is short: no. As for me, my priority is people, not partisan interests.
:
Madam Speaker, it is an honour to take part in today's debate on the forestry industry.
It reminds me of the fact that my father started off as a timber scaler. He received his training in Sainte-Croix, near Quebec City. He was said to be very good at flipping the famous 2x4s over to assess their quality. He even worked at the Union catholique des cultivateurs for a wood producers union. As we can see, the forestry industry is linked not only to my family history but to Quebec's history, and that it is deeply rooted in our province. The forestry industry is a renewable resource. We are surrounded with objects made of wood in this chamber. We want efforts to be made to reintroduce wood in major construction works, so as to pass on this desire to future generations.
As the member of Parliament for Lévis—Bellechasse, I have in my riding, and particularly in the county of Les Etchemins, many forestry companies. I think of Rotobec, an export and manufacturing company — products are imported from around the world. I also think of the Audet sawmill, Bois Carvin, and a company from Lévis which was taken under the umbrella of the Ag-Bio Centre, a business incubator that received subsidies from the Economic Development Agency, and developed a biopesticide.
The forestry industry is a pillar of our economy. I have statistics here from the Quebec Forestry Industry Council. In Quebec alone, the economic activity is estimated at $12.9 billion, with nearly $4 billion going to wages and $1 billion going back to our governments. The forestry industry is profitable for governments, and it is in our interest to ensure that it does well. Across Canada, we are talking about close to 300,000 direct jobs and 450,000 indirect ones. This goes to show how important the forestry industry, an industry facing admittedly major challenges, is to our country.
In Quebec, because we export so much to the United States, a one-cent difference in the exchange rate can result in $100 million in losses to the industry in energy costs. This industry has been mismanaged over the past few years. Among other factors, there is the cost of the raw materials, whether they come from public or private forests. Several factors have combined to make our forestry industry vulnerable to plant closures—one in six in Quebec—and job losses.
Even if all Quebec companies together did $13 billion worth of business, they still would not be among the 10 largest companies. There has been some consolidation. A major global phenomenon is happening, and we want to stand by our forestry industry and help it.
I would like to cite one last statistic. Seventy-five per cent of the softwood fibre harvested is used to make lumber or newsprint. Demand for these products is declining, and they are among the least value-added forestry products. Today, I agree with those of my colleagues in the House who have said that it is important to invest in innovation and research, to create new sectors so that our forestry industry can find a niche where it can perform well. I wanted to paint a picture of this extremely important industry.
I would now like to turn to the measures we have included in our economic action plan to support the forestry industry through this crisis. As my hon. colleague, the just explained, we will continue working with the forestry industry to help it get through this crisis.
This is a market problem, due in part to the problems our American ally is going through, but it is also a credit problem. We want to work closely with the industry, and that is what we are doing, to help it maintain liquidity so that it can keep making high-quality forest products and stay competitive on the world market.
Access to credit is not only key for the forestry industry, but also for all manufacturing sectors, be it mining or other Canadian companies. That is why the economic action plan is providing $200 billion for companies, all industrial sectors and families: to help them and ensure that our companies can access cash.
The $200 billion in the economic action plan has been approved. It was approved here last week with the support of my colleagues, those from other provinces and the support of my colleague from as well as the member for . These measures are in place, and we hope to get them off the ground to support our industry, in particular our forestry industry.
We also want to create demand. We know that there is a problem and that there is not much demand. We want to increase demand by improving Canada's building inventory and by stimulating investments in home renovations. That is why we have set aside $7.8 billion. Perhaps there is someone at home listening today who wants to renovate, invest $10,000, replace windows or finish a basement. All of these projects require wood. The government can give him up to $1,350 to encourage him to modernize and protect his assets. That will increase the demand for wood. If only one person does it, that is not much, but if there is $7.8 billion for the entire country, it means that many households can do something to stimulate our forestry industry.
As my colleague, the minister and member for , said a moment ago, we are working closely with aboriginal communities in Quebec and everywhere in Canada. There will be $400 million injected to improve housing. We know this is a major need. That too will be grist for our mill, our paper mills, as is obviously the case, and we will stimulate demand on that side.
In the economic action plan, we are investing nearly $12 billion in our infrastructures, and we hope that this will generate economic activity that will help our forestry sector. Certainly the measures proposed in the economic action plan lay a solid foundation to help our forestry product and mining sectors, and the communities that depend on them. In spite of all the measures we put in place in Canada, with the decline in demand in the United States, there may be setbacks, and that is why, in a time of economic upheaval, we have proposed measures for communities and workers, for heads of household who are directly affected by the crisis. We have instituted an older worker adjustment and community adjustment program. We have also implemented measures to promote innovation, develop markets, provide access to credit, as I mentioned, and provide tax relief.
To come back to the measure for communities, that is $1 billion. We hear the opposition saying there is only $170 million for forestry. If that money is invested well, it can help our forestry sector, but that is just one of the measures we have implemented. Those other measures include the $1 billion for communities. That money will go primarily to the forestry sector and other sectors affected by the economic upheaval. This means that $1 billion will be injected into communities that are vulnerable because of the situation we are experiencing. Those measures will help our workers make the transition, preserve their ability to keep working and, as they say, put bread on the table.
I referred to $170 million. That is the amount to be spent on innovation. We are talking about it a lot today because that is how we hope to help our forestry sector stimulate its industry.
I would also mention that nearly $440 million will be available to enable our forestry industries to invest. In the late 1970s, the forestry industry invested and that is what allowed it to make a significant recovery. In the 1980s, the paper mills also invested in treating their waste water, and that is entirely to their credit. They are good corporate citizens that got their emissions under control. So we are stimulating them and creating a favourable situation for them to be able to invest.
I also want to say that we will be supporting workers with an $8.3 billion program to help them stay in the work force, whether in the company or once they have left the company.
We will continue to support the forestry sector. On this side of the House, we will continue to look for solutions, working with our partners and with industry, so that our industry comes out of this crisis in a better position in global terms.
:
Madam Speaker, I will share my time with the member for , who does some excellent work.
As a member of the Bloc Québécois, I have the pleasure to speak to the motion put forward by our party.
Let us take the time to read together the motion put forward by the Bloc Québécois.
That, in the opinion of the House, by providing only $170 million in funding over two years in the latest budget to assist the forestry industry, the government is showing once again its lack of concern for the Quebec economy, which has been hard hit by the forestry crisis, since this amount falls well short of what this industry needs to see it through the current crisis, especially since this funding will serve to extend programs that are ill-suited to the needs of the industry in crisis; the government should therefore establish a real plan as soon as possible to help the forestry industry, a plan including a series of specific, sustainable development measures, including loans and loan guarantees, refundable tax credits for research and development, a policy to encourage the use of lumber in the construction and renovation of federal public buildings and measures to support energy and ethanol production from forestry waste.
The Bloc Québécois motion is intended to be complete in itself. Our colleagues in the other parties should follow the Bloc's example. Quebec is a diversified society in a number of the sectors of its economy. One of the major sectors is the forestry industry. My riding of Argenteuil—Papineau—Mirabel has one of the highest concentrations of hardwood forests in North America. We need to keep abreast of developments in the hardwood forestry industry. In times of economic crisis, that industry faces a rather difficult situation. According to this morning's, Le Droit, one of our companies has just had to apply for protection under the Bankruptcy and Insolvency Act because of the weakness of the market. The newspaper was referring to a hardwood floor company in difficulty that has a number of employees. In the Papineau sector of my riding of Argenteuil—Papineau—Mirabel, 45% of jobs are connected to the forestry sector.
If I chose any other riding in the regions of Quebec, the figures would be more or less the same, that is somewhere between 25% and 55% of the labour force is connected to the forestry sector. The same goes for other provinces in Canada. Every day, the Bloc rises in this House to defend the interests of Quebeckers, but we are glad when it also helps other regions of Canada.
One cannot remain unmoved by this crisis, which started long before the financial crisis announced in 2008. It is more than five years since the forestry industry started to ring the alarm bells and to warn the government. We had the softwood lumber crisis and the agreement with the US, which the Bloc Québécois supported precisely because the Quebec forestry industry asked it to. The industrial sector was unanimous on this. The NDP often accuses us of all manner of things in this area, but the Bloc Québécois has always been in symbiosis with those industries. It is all very well to live in a dream world, like the NDP, but there is a hard reality: people are losing their jobs. Business owners are saying they would rather lose a billion dollars than to risk losing it all. That is the choice business made at the time, and we endorsed that choice. That is what it means to be a political party that listens to business and its needs.
This is why we are proposing this motion today. We are still listening to business. The industry has been asking for loans and loan guarantees for several years, not several months. It has been done for the auto industry, but this government is refusing to do it for the forest and manufacturing sectors although it is allowed by international law. This is the reality. Why? Because in a time of crisis, it is rather difficult to obtain financing from the banks. This is the reality. Forestry companies have been in a crisis situation for many years. Even in budget 2008, had identified the forestry and manufacturing sectors as simply being in recession. They were already in recession then. Signs were present well before the financial crisis became evident in 2008.
Obviously, when a whole segment of the economy is suffering both in Québec and in other Canadian provinces, it is impossible for us not to be on the lookout and not to try to listen. The Conservatives have proposed a stimulus package with only $170 million for this sector. This is just peanuts. Excuse me for saying this, but compared to companies' needs, this is close to nothing. This is why we are today asking the government to open their eyes. We need a true plan to help the forestry industry. There is a package for the auto industry. We are not criticizing this plan, quite the opposite. What we wanted in the stimulus package for the auto industry was protection for subcontractors because many of them are in Québec as well as other parts of Canada. We were hoping the plan would have a clause to prevent manufacturers from subcontracting outside of Canada and outside of Québec, but once more, the Conservatives did not listen.
The Conservatives made a choice by tabling a budget that provides only $170 million for the forestry sector. As hon. members can well imagine, for that reason alone the Bloc Québécois could not support this budget, because we cannot abandon workers in this sector. For example, in my riding, in the Papineau area, 45% of all jobs are in the forestry sector. We simply cannot ignore that industry. As I said, the same is true in all regions of Quebec.
Today, we are proposing loans, loan guarantees and refundable tax credits for research and development. We are not talking about mere tax credits for research and development. In order to get tax credits, one must first pay taxes. However, when companies are going through crises and cannot finance themselves, they are definitely not making profits. If that were the case, they would have no problems finding money. This means that if we only give them tax credits, these companies will not be able to benefit from them. Instead, we are asking for refundable tax credits. If a business has not made profits but is investing, then it would get a cheque from Ottawa. This would also help that company make investments.
We are asking for a policy to encourage the use of lumber in the construction and renovation of federal public buildings. This makes sense. Canada is one of the world's largest producers of lumber. It would only make sense if, in the federal buildings, some of the construction projects would involve the use of lumber. Finally, we are asking for measures to support energy and ethanol production from forestry waste, or biomass. Now is the time to do that. If we want to help these companies, we must invest. One way of diversifying their activities would be to use biomass to produce energy. This could help them increase their production.
Again, if Conservative, Liberal and New Democrat members were aware of what Quebeckers are going through, they would support the motion brought forward by the Bloc Québécois.
:
): Madam Speaker, it is a pleasure for me to rise today in the House to speak about the forestry industry.
Many years ago, Trois-Rivières was the world capital of paper, and there are still many jobs in the paper mills, which are currently in such difficulty. The Mauricie in general has very large numbers of people who work in the forestry industry. An entire segment of our industrial base is redefining itself and trying to find new niches and novel ways of doing things. That is the main reason why we are proposing this motion today in support of this industry.
It is going through very difficult times. The recent economic and financial crisis has only aggravated a situation that was already very alarming and that the Bloc Québécois has been condemning and debating in the House for years. We certainly must condemn this laissez-faire policy, which prevents us from providing adequate support to this important part of the Quebec economy. In providing only $170 million over two years in its last budget, Ottawa has flatly turned its back on the entire forestry industry, with the connivance of the Liberal Party.
Over the years, the Bloc Québécois has brought forward a number of ideas to deal with the crisis. For reasons that are often unfortunately purely partisan or ideological, our proposals were ignored, to the detriment of Quebec and its regions. We have suggested a number of specific measures, including loans, loan guarantees, refundable tax credits for research and development, policies to encourage the use of wood in the construction and renovation of federal public buildings, and measures to support the production of energy using ethanol and forestry waste. All these measures should help the industry emerge from a crisis that has lasted too long and should ensure sustainable, viable, profitable development for all the Quebec economy and Quebec society.
I want to say a bit more about these loans and loan guarantees. Ottawa refused to help the forestry industry during the entire softwood lumber crisis. It thereby prevented the industry from modernizing its means of production and improving its productivity. The industry was unable to invest in new equipment and in the development of new products. These investments are necessary, though, for the very survival of the industry. So now the forestry companies are left without resources, totally unable to make the necessary investments. It is all especially obvious in our region of the Mauricie.
Yesterday, Monday, workers in total support of our demands demonstrated in favour of loan guarantees for the industry. AbitibiBowater—the Laurentian plant in Grand-Mère—is asking for special measures to guarantee loans to the forestry industry by the end of March. Last year, the company renewed loans worth $350 million. Since then, the market has been in trouble, as everyone knows, and demand has shrunk significantly. That is why the employees found themselves out on the street. If loan guarantees were given to this industry, we could keep our workers on the job.
In the St. Maurice Region, the Smurfit-Stone plant in La Tuque applied for protection under Quebec financial legislation. Now we have another 250 employees in the street. This is very disturbing. In the case of AbitibiBowater in Quebec, there are 7,600 employees and 8,900 retirees.
As we can see, therefore, the Bloc's motion today hits the nail on the head in terms of workers' concerns. These investments are important.
Respecting the trade agreement on softwood lumber with the United States was not easy. It was a necessary evil. The government must now, in the wake of the difficulties created by the agreement, help the industry with loans and loan guarantees. It has to support the industry.
This form of assistance, I might point out, is in compliance with the softwood lumber agreement and with NAFTA. The government keeps saying that it can do nothing and is bound by the agreement. We do not think that is the case. We are still awaiting an answer from the member for on the number of the section preventing such forms of assistance.
Right now, the forestry industry is considered high risk by the bankers. This industry therefore pays a high risk premium when it turns to the financial institutions. The result is that a number of them are unable to get funding. This is why the federal government must guarantee loans. In almost all cases, this measure costs next to nothing. It is not a subsidy. The company repays the money at term. So it is hard to understand the government's refusal to act.
According to the Quebec Forestry Industry Council, if the government guaranteed the loans by the banks to the forestry industry, the rates of interest would be more reasonable, and new projects might even be undertaken. For this reason, the Bloc Québécois, the sole defender of the Quebec forestry industry in Ottawa, is presenting this motion to correct the errors of both the Liberals and the Conservatives and to have the federal government grant loans and loan guarantees to the businesses hit so hard by the crisis in the manufacturing sector and for so many years.
Let us now talk about the second measure proposed in this motion, namely refundable tax credits for research and development. Research, innovation and development are the pillars on which an industry shapes its future. Increasing productivity, discovering new products and accessing new markets are critical to the development and survival of the Quebec and Canadian forestry industry.
During a crisis such as the one that the forestry sector is experiencing, the industry cannot be left to fend for itself. That is why, in our stimulus package, in our motion today, and in fact since the beginning of the crisis, the Bloc Québécois has been proposing refundable tax credits for the forestry industry.
I want to say a few words on measures to support energy and ethanol production from forestry waste. All the governments have come to realize that in order to find our way out of the crisis—as we can see in the United States—we must not only intervene in the economy, we must also help and fund tomorrow's economy, so that it will create jobs and opportunities for the future. The U.S. administration understands that and is investing in green and renewable energies.
Producing energy and ethanol from forestry waste is a perfect example of a traditional economy trying to develop new markets. For example, the Mauricie is one of four regions in Quebec that have been selected for calls to tenders to use forestry biomass to gradually replace fossil fuel. I should also mention that, as early as in 2010, the Amqui hospital centre, in Quebec's Matapédia Valley, is going to be heated with forestry biomass. It will be the first facility to do so in eastern Quebec.
In the Mauricie region, and elsewhere, we have reconciled the economy and the environment. Using that approach allows us to reduce our greenhouse gas emissions, diversify opportunities for our forestry industry, and make our region wealthier. Implementing measures to support energy and ethanol production from forestry waste would help diversify markets for forestry companies, revitalize regional economies that depend on this resource, reduce our dependency on oil, lower our energy costs, and give our entrepreneurs the help they really need in their plans for the future.
In conclusion, we must realize that the moneys committed to the Conservative trust in 2008 are inadequate. The distribution of the money from that trust between the provinces is unfair. Quebec is getting $2,300 for each job lost, while Alberta is receiving $25,000. Let us not forget that 40% of all communities that depend on the forestry sector are located in Quebec. That is why I am urging hon. members to support this motion presented by the Bloc Québécois. The solutions that it proposes will help this important industry in all of Quebec.
:
Madam Speaker, it is an honour to stand in the House today to discuss this very important issue.
Coming from the province of Newfoundland and Labrador, forestry certainly plays a great role. In my hometown of Bishop's Falls, which is in the Exploits Valley next to Grand Falls—Windsor, the major centre, forestry has played an essential role for my family, as well as others in my community.
Over the years, whether it be through the sawmills, the newsprint industry itself or the lumberyards, forestry has been an essential component to the economy of the area I represent, which is so rich in its natural resources. Yes, we do have the fisheries as one of our mainstays, and it has been described as the backbone of the economy of the outport of Newfoundland and Labrador, but forestry has played a role in that as well.
I will comment on the history, where we have been and eventually explore where we are going in a few moments but first I will discuss the motion that was introduced by my hon. colleague from the Bloc.
The opposition day motion states:
That, in the opinion of the House, by providing only $170 million in funding over two years in the latest budget to assist the forestry industry, the government is showing once again its lack of concern for the Quebec economy, which has been hard hit by the forestry crisis....
To a great extent, I understand where the Bloc members are coming from and I understand the gist of what they are saying but it leaves a lot of the more vulnerable people in the forest industry out there. It leaves them sort of tethered to hopes that have been vanquished in recent years because of the economy and because of the industry itself. Even before the recession that we have slid into, there were always problems with the newsprint industry with the onslaught of modern communications and technology advances being what they are. Obviously, this has been become a key issue for the entire industry, and not just for Quebec in this particular situation.
I understand this is a major issue in Quebec and, on a per capita basis, there certainly is a greater dollar value than probably any other jurisdiction in North America. However, it also reflects on the entire nation and the entire continent of North America.
I have mentioned before in this House the fact that we have a closure upon us in the town of Grand Falls—Windsor that will affect the bottom line of the entire province given that its output was so great. That mill was owned by AbitibiBowater. It decided a few months back to close the mill after 100 years of existence. We can all imagine how important this is. It will put close to 1,000 people, including loggers, mill workers and the stevedores in the town of Botwood, out of work. This will have a lasting impact.
That is the major reason I am talking about this issue today but I also wanted to reflect upon why we are here, which is to voice the concerns of our constituents in the case of this particular industry. I do believe the government has a great role to play in this industry.
Moving along on this particular motion, it also talks about a plan for certain areas in which it hopes the government will invest, which would certainly be of benefit to the region. However, the question now becomes whether it goes as far as it should and, personally, I do not think it does.
The Bloc motion does put forward some particular measures that I feel are very important, such as the sustainable development measures. We are dealing with a renewable resource, one that has anchored many communities in rural Canada for the last 100, 200, 300 years. Some communities were built upon it. Communities exist today because of it and will continue to proceed whether they have a large newsprint mill, a paper production mill or an integrated lumberyard. Opportunities still exist for them.
However, the government has a role to play here and one that I believe is key. I do not want to divide this debate into what is a bailout as opposed to an investment. That is where we come in. Where the two sides of the House may differ on this argument is on exactly what they consider to be a bailout. There is always the connotation in a bailout that it is some kind of a waste of government money. I do not know whether that is true or not. I do not think we as politicians sit down and weigh the pros and cons of each particular investment to the point where we decide whether it is good or not for our constituencies.
The other thing the Bloc motion talked about was the refundable tax credits for research and development, which is absolutely key. A wood product has so much value and so many areas go untouched, areas that provide so much potential for all these communities, not just for the particular companies or individuals who own sawmills or lumberyards, but for the entire community itself. We are talking about year-round employment that provides a great deal of income for families to sustain larger families. We all know the traditions by which paper towns grew up. The children of many of the people who have great jobs in mills also get the same jobs and so on and so forth.
The mill in my riding has been around for 100 years and, as I mentioned earlier, it sustained my family and my neighbour's family. This is why we are here to talk about this important issue. I applaud the initiative that is coming from the Bloc and just how important this is. However, I would caution the Bloc members to expand it beyond just one particular jurisdiction. I hope they will address that in the next little while.
The motion also calls for a policy to encourage the use of lumber in the construction and renovation of federal public buildings and measures to support energy and ethanol production from forestry waste. That is a very good idea and a good option at hand that we do not talk about too much.
However, it is not just about the construction of buildings. I will give the House a fine example. In Europe right now there is a tremendous market for wood pellets as a source of energy and heat. This is one area, at least in my area of the country, that we have not explored to its fullest. When we think about it, with energy costs rising, wood pellets provide a cheaper alternative, depending, of course, on the price of the product one is buying, the actual wood pellets.
Therefore, the industry of developing, marketing and the production of wood pellets needs to evolve and mature to a place where we can provide a low cost product when it comes to energy. That is a good example where government can play a huge role. It could give subsidies to the individual consumer, which the provincial government did recently, but also incentives for the industry to basically make a greater profit.
One of the ways the industry can do that is for the government to be a good valued customer for wood pellets. It is possible not only in federal government buildings but some of the incentives that the government talks about when it comes to home renovations. This could be used, I hope, for this particular scenario. It is environmentally sustainable and it is a renewable resource. I hope the federal government as well as the provincial governments across the country will look at this as a good opportunity for economic development. That is one example that this particular industry can lend itself toward not only creating jobs but also reducing energy costs for the individual and for industry itself.
I would like to talk briefly on the history of the forest industry in my province. A lot of this will parallel many of the other situations across the country on just how the forest industry has evolved to create such great value added products.
For the first 400 years after the discovery of Newfoundland and Labrador, the forest was used almost exclusively as a support for the fishery. It became this tertiary activity to support a much larger effort. In addition to the construction of premises, wood was essential for fuel. It was then and it is today. It was also used for boat building, the construction of stages and flakes that, 400 years ago, were so essential.
We will find that a lot of communities, as I stressed earlier, were based upon their ability to take the wood from the forest and turn it into something else for the value of other industries. That is essentially what we havecome down to. The industries in my area, all over the province and all over Atlantic Canada still take full advantage of that.
By the mid-1800s, it was apparent that the fishing industry could not support the population entirely. Therefore, to assist in diversifying the economy and developing the forest and mineral resources of the interior of Newfoundland, a railway was constructed across the island. The trans-island railway was completed in 1898 and it had two major influences on the province. One was access to the interior and two was the 145 blocks of land comprising nearly 4,000 square miles granted to the reconstruction railway. However, it also allowed interior regions of my province, much like others, to develop the forest industry 100 to 150 years ago. That was an essential component to the development of a lot of our economies.
That is the historical impact of the forest industry. I know we have debated this issue so much because it means so much to us. It is not just a rural component or issue. This also helps develop the cities in which we live and the entire economy itself. A tremendous amount of workers across the country rely on the forest industry and, in many cases, they get unheralded.
I do not mean to take away from other industries that are also lining up for stimulus money and for investments from the government to allow their industry to flourish, and I speak of the auto sector and agriculture. However, the forest industry, with its historical context alone, should tell us that this should always be at the forefront. On every agenda, whether it is a federal agenda, a provincial agenda or a municipal agenda, forestry should always be in that front part. There is so much value added into these products and we have so much to gain from this.
I commend the people from all parties who have spoken already on this. They truly know the importance of this industry.
Up until the early 1900s, it was not considered necessary to protect the forest resource. I guess it is one of those things that maybe has suffered from neglect because the debate was always about other industries and forestry was sort of just shoved to the side.
Unfortunately, in many situations that happens to this day. That is why we stand in the House and argue so vehemently for the right investments in this industry. I cannot think of a better time to be talking about this than now, during the economic crisis that we are under. One thing we have to realize is this. If we are to harvest a resource, if the people we represent are to be the principal beneficiaries of every natural resource, then it is a responsibility for us to allow industry to develop a product to its fullest. Value-added products, whether it be the fishery, manufacturing, textiles or forestry, is where we fit in to allow these people to extract as much profit as they can from this resource but, at the same time, to sustain the communities and the resource. That is what is imperative to us.
I do not think government should just get out of the way. Let us talk about that right now.
A lot of people will say that if the forest industry is what we say it is, then it will survive on its own. That is not necessarily the case. The problem is communities die as a result of this. It is so labour intensive and it takes so much from our land. It is not only about the wood; it is about the power we harness on the rivers in order to fire up the mills. It is also about the community living structure, the social structure in which we live. To me that represents the key to this argument. That is why we have to get involved and play a role. That is why we stand here today and debate.
We can talk about the fine points. We can talk about the profit margins for a particular company. We can talk about the fact that we want to provide the incentive for a lumber yard to branch out into other types of products. That is what is key. We operate on the margins, but the bulk of the industry relies on the people who work day and night in our forests and also in the mills and in the ports that ship it out. This is why we stand here today.
I will take a moment to bring forward a few quotes.
These are some of the points I received in an email from Bob Dingwall, president and CEO of Jamestown Lumber. I would rather bring his points out than just my own because he is someone who is absolutely hands-on with the entire industry. He writes that forestry, of course, is the mainstay of rural economies in many parts of Canada. He says, “Canada's forestry infrastructure, which includes huge amounts of human-skilled capital, in addition to the physical assets associated with the production of forest products cannot be allowed to further dissipate. It can't be pulled off the shelf for the next generation's benefit in the future global economy”.
That is very true. Forestry cannot be thought of in two, three, four-year increments. We have to start talking about generations of rural Canadians, urban Canadians and Newfoundlanders and Labradorians. We have to plan for the next generation forestry workers. Will they be different than today's workers? Most likely, yes, but at some point we have to grasp the vision as to what this industry will be. It is essential for that community. There is no way around this.
Unfortunately, being involved in politics, where we run on four-year mandates, or in this Parliament maybe one or two-year mandates, we have to realize that the long-term vision is key to what we debate. If we lose sight of that long-term vision, our rural communities and the entire nation in general does not have anything on which to hang. Sometimes, as I said earlier, we push forestry aside to its detriment.
We are not asking for a nationalized institution for the way forestry is run. We want to encourage private investment, but there has to be a positive influence by all levels of government.
Mr. Dingwall brought up other points. One was Scotiabank's commodity price index, which is a very important fact. In some of the other industries, such as metals and mining, the commodity price index assigns an index weight. Metals and mining is 16.6% as an index and oil and gas is 16.8%.
According to Scotiabank's commodity price index, what is its assignment of an index weight? It is 39.8%. That is how much value is placed on what we produce. Many people rely on this industry and that one piece of lumber, that one tree, and the harvesting of it.
Yes, we cut it down. Yes, we can create wood pellets and byproducts of wood, such as wood shavings, wood chips, the actual lumber itself, which is the massive part of this, and, on the back end, newsprint, paper products. All of this stuff is taken from a renewable resource.
One thing the federal government has neglected in the past little while is silviculture. I hope that in the near future we will have a debate on the role of the federal government involved in silviculture, which is why I endorse the idea of a national summit for the forest industry.
Some people might ask why we would gather all these people in one city to talk about forestry. That is where can have a frank discussion among government, industry and the unions as well, such as the Communications, Energy & Paperworkers Union. These are the stakeholders. They have a vested interest in seeing this resource replenished and in ensuring we get the value from this resource.
I also want to talk about the situation in Bonavista—Gander—Grand Falls—Windsor. As I mentioned, it has been around for about 100 years. Earlier this year the mill closure was devastating news. However, keep in mind that the resource at the very base of this mill belongs to the people. Should we expropriate the rights on the river to harness the power and to go into the forest to cut down trees for profit? Yes, we own it and we have to be the stewards of that resource. We are the ones who have to protect the concept that the principal beneficiary of this resource is the collective, the people who put us in power.
I would like to make that point clear because I think a lot of people have lost that point. Industry has a role, but it is not the be-all and end-all of harvesting this resource.
Hopefully I will get some time following question period to continue my thoughts. I thank the House for listening to me and I welcome any questions or comments.