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RNNR Committee Report

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New Democratic Party supplementary opinion

This study on the renewal of the forestry industry allowed the committee to hear many witnesses who presented perspectives on this sector’s future and on ways available to the federal government to help and improve this future.
The New Democratic Party submits this supplementary opinion.

Section II: Regional Economic Development

Canada’s forestry sector is defined by our country’s vast regions that are host to distinct forest types, ecosystems, and corresponding product types. As such, the federal government must acknowledge and be responsive to fluctuations in international supplies and demands of various product types, the occurrence and spread of various pests, the unique cultures and legislation of the provinces, and the sharing of these resources with First Nation communities. Any forestry related policies put forward by the federal government must be responsive to unique regional challenges and opportunities and they must be adaptive to the often rapid situational changes that may occur in isolation or in concert with those in other regions. Therefore, given the unique regional aspects of Canada and its forestry sector, New Democrats make the following recommendations:

A. Emerging Economic Challenges and Opportunities

1. The Government of Canada take an active role in combatting the spruce budworm epidemic and others that negatively affect the health of Canada’s forests.

2. The Government of Canada invests in Northern Canada's forestry sector with the purpose of business development, training and capacity building, and to ensure that accurate information is available to track forest renewal.

B. Employment and Skills Development

3. The Government of Canada ensure that occupational training programs are adapted to meet the needs of the evolving forestry sector.

4. The Government of Canada, in partnership with First Nations communities, technical schools, community colleges and private entreprise, establish and fund a national training program for First Nations youth to provide a wide array of skills including, for example: upgrading and laddering, forestry technician, trades and training for the forestry sector, forestry management, and related forestry business.

5. Employment Insurance conditions be revised to allow increased flexibility for recipients by allowing them to take up forestry related occupational training without losing any portion of their benefits.

C. Investment and Infrastructure

6. The Government of Canada provide incentives to encourage new investments in Canada in infrastructure for the production of innovative forest products.

7. The Government of Canada invest in transportation infrastructure, and encourage railways to invest in rail capacity, to assist forestry companies in transporting their goods to market in a safe and timely manner.

D. Environmental Performance and Sustainable Development

8. The Government of Canada, in consultation with the provinces and territories and relevant experts, undertake a process to identify and report on any significant gaps in monitoring of the sustainability of Canadian forests.

9. The Government of Canada invest increased resources for research on potential cumulative impacts to the sustainability or our forests.

10. The Government of Canada ensure that any federal environmental assessments include the identification and measures addressing mitigation of potential to impacts to forests, including any potential cumulative impacts.

11. The Government of Canada undertake an evaluation of the potential value of Canadian forests in mitigating climate change impacts.

12. The Government of Canada support the United Nations Environment Programme’s construction standards within the climate change initiative.

13. The Government of Canada, in relation to the forestry sector, ensure that determinations and decisions on potential impacts for species-at-risk be based on sound science and give due consideration to potential impacts on treaty or aboriginal rights so as to maintain integrity of the Crown. 

Section III: Sector and Market Diversification

Many witnesses suggested that the federal government needs to play a leadership role in order to develop new sectors of activity and new markets for the forestry sector. The NDP supports this statement from Mrs. Marianne Bérubé, of Ontario Wood WORKS!:

“[W]e’d like to see the federal government at least consider wood on an equal playing field because of all the new advancements in technology.”

Also, while we also believe that international trade is important for the forestry sector, trade agreements must meet clear criteria and be in the best interest of Canada. Our recommendations to this end are as follows:

A. Opportunities and Challenges In Select Sectors

1. Wood Construction

14. The Government of Canada give consideration to increased use of wood products in the construction of federal government buildings.

15. The Government of Canada support further reserach and education in wood-based engineering and architecture by investing in research and development programs, including universities, technical schools and institutes.

16. The Government of Canada ensure full consultation with Canadian firefighters on any consideration to revising the national building code to allow expanded allowances for use of wood in building construction to ensure that any safety issues or measures are considered and addressed.

2. Pulp and Paper

17. The Government of Canada take direct action to encourage the domestic production of more value added products in Canada’s pulp and paper sector.

18. The Government of Canada work with the provinces to support research and development towards the transformation of Canada's newsprint industry through the development of new products.

3. Wood Pellets

19. The Government of Canada promote the use of forest biomass residue by putting in place policies to promote the sustainable use of natural resources to produce renewable energy and bio-products.

20. The Government of Canada support the domestic wood pellet sector including the production of advanced pellets, and the facilitation of wood pellet conversion at the household level and in federal buildings.

21. The Government of Canada continue to support northern biomass programs through FPInnovations in the Northwest Territories and the Yukon.

4. Value Added, Niche Markets, and Non-Timber Industries

22. The Government of Canada encourage and support the creation of an ‘umbrella’ organization to provide a unified voice for Canada’s secondary wood product manufacturers.

23. The Government of Canada encourage a diversified wood products industry, both large scale and within smaller, local markets.

24. The Government of Canada introduce a procurement policy to encourage the commercialization of new products from small forestry companies.

25. The Government of Canada develop financial support programs and investment incentives for diversified forest products for First Nations-owned forest product companies.

26. The Government of Canada support community ownership models in the forestry sector by providing loan guarantees or other financing programs.

27. The Government of Canada create a secure and stable funding program for First Nations start-up businesses in the forestry sector.

B. INTERNATIONAL TRADE CONSIDERATIONS

The NDP tabled this motion in the House and it should still be acted upon.

“[The committee recommends that] the government should: (a) consider committing to monitoring the implementation of potentially unfair subsidies and trade practices related to the forestry sector in foreign jurisdictions, such as the former Black Liquor tax credit and the Biomass Crop Assistance Plan regimes in the United States; and (b) as appropriate, negotiate an end to those subsidies or match the benefits for domestic producers dollar for dollar.”

1. Canada–U.S. Trade and the Softwood Lumber Agreement

28. The Government of Canada make public by June 30, 2015, the status of the negotiations with the United States regarding the Softwood Lumber Agreement set to expire October 2015

29. The Government of Canada prioritize the reinvestment of the duties collected under the terms of the Softwood Lumber Agreement in increased R&D to encourage product and market diversification, in cooperation with universities and the industry.

2. Canada’s Growing Trade with China

30. The Government of Canada develop a plan, along with the provinces and territories, to support processing of logs in Canada and minimize the export of raw logs on the West Coast.

3. Other Trade Opportunities

31. The Government of Canada pursues opportunities to diversify exports markets for the forestry sector, to minimize the dependence on the United States and China as Canada's main export destinations.

32. The Government of Canada extend increased support to the pursuit of commercialization and export markets for diversification and innovation in wood products, including through the Forest Industry Transformation (IFIT) Program and the National Research Council.

Section IV: Strategic Innovation

We believe that support from the federal government for innovation is important in order to allow businesses in the forestry sector to secure their future, and of communities who live off forestry. Jocelyn Lessard, from the Québec’s Federation of Forestry Cooperative explained:

“In terms of bioeconomy conversion, which should play a bigger role in the Canadian economy, biomaterials, environmentally responsible construction products, green chemistry and bioenergy should be developed. The federation would like the Canadian government to be involved in this conversion, for instance by encouraging investments to help the industry position itself in these new opportunities.”

The following NDP recommendations support the innovation necessary for a  strong future for Canada’s forestry sector:

i)  Recommendations regarding the bio-economy

33. The Government of Canada assist with Canada’s bio-economy conversion by encouraging investments in that sector.

(ii)        Recommendations regarding product development

34. The Government of Canada facilitate new product development and innovation by investing in sustainable forestry products and technologies.

(iii)       Recommendations regarding the establishment of a forest strategy

35. The Government of Canada, through the Department of Natural Resources and other federal agencies, provide leadership in working cooperatively with the provinces, territories and aboriginal governments, forest sector and public to develop a national forestry strategy, including new models of governance, equitable benefits and sustainability.

36. The Government of Canada lend support to the territories for the development of a pan-territorial forestry strategy.

(iv)       Other recommendations

37. The Government of Canada continue to develop a reliable, sustainable source of fibre at competitive prices, especially through forestry research.

38. The Government of Canada extend, for a minimum of five more years, the measure announced in the 2013 budget supporting companies involved in producing biomass energy.

39. The Government of Canada provide leadership and enhanced support to research and deployment of innovations, new technologies and diversified production and exports to ensure value-added use of our forest resources.

40. The Government of Canada ensures long-term, stable funding to FPInnovation, instead of two-year renewable funding programs.