International Trade Committee on Aug. 21st, 2006

[The Chair, Conservative, Leon Benoit]

Monsieur Paquette.

[Pierre Paquette, Bloc, Joliette, QC]

Could we call the question?

[The Chair, Conservative, Leon Benoit]

Okay, let's go to the question. I don't see--

Mr. Cannan, just before we go to the question.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you, Mr. Chair.

Just to clarify, upon the return of Parliament, is there some sort of timeframe when you're anticipating to arrange this travelling? September 18 is when the House sits, and you heard from Ambassador Wilson that the government is hoping to introduce this legislation within the first week or two of the House sitting.

[The Chair, Conservative, Leon Benoit]

That's, I guess, a situation we'll have to deal with should it happen. But we do know that the Liaison Committee of the House of Commons has to approve any travel by committee. The Liaison Committee probably won't be meeting until the second week that the House sits, and by that time, we'll see whether there's legislation. I understand what you're saying, but of course there isn't certainty.

We'll continue. Let's go to the question, then.

(Motion as amended agreed to)

[The Chair, Conservative, Leon Benoit]

The second motion, Mr. Julian.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Thank you, Mr. Chair.

I believe the House Liaison Committee will be called back earlier to meet on that, so that we can get things going and hold these hearings the first week that Parliament reconvenes. I know there will be a lot of witnesses very interested in meeting with this committee.

The second motion is that the Standing Committee on International Trade recommends that the Government of Canada immediately introduce loan guarantees long called for by the Canadian softwood lumber industry.

That's something that I think all parties have pledged to do and is very timely. Given the fact that there seems to be a lot of opposition to this deal, it's important to have a plan A, and the plan A includes loan guarantees. We've also heard from witnesses who have said that loan guarantees would be extremely important to allow the industry to stabilize as we clear the last two legal hurdles.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. Julian.

Monsieur Paradis.

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Mr. Chairman, as you stated earlier, we will know as early as this evening what is happening with the industry. Why ask for the loan guarantee process to start up again when the current process may well yield very positive results and be quicker?

[The Chair, Conservative, Leon Benoit]

Is there anyone else on the motion?

Mr. Boshcoff.

[Ken Boshcoff, Liberal, Thunder Bay—Rainy River, ON]

Mr. Chair, I'd like to amend it by adding a quantum that loan guarantees be equal to the money illegally kept, so that it be in the vicinity of $1 billion.

[The Chair, Conservative, Leon Benoit]

Let's go to debate on the proposed amendment to the motion.

Does anyone want to speak to the proposed amendment to the motion?

Mr. Julian.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

I certainly appreciate the spirit of Mr. Boshcoff's amendment, although what we're talking about actually is the global package, a loan guarantee that's sufficient to the moneys that have been illegally kept, which allows the cashflow of the industry. They've been stating very clearly since we first started in this new Parliament that they desperately need it, and those loan guarantees have been without. We're not talking about $1 billion; we could be talking about more than that. It is not money that is paid out from taxpayers, as somebody incorrectly stated from the government side. It is simply the government allowing, through loan guarantees, companies to access loans for cashflow requirements. It is very important at this crucial stage in the softwood industry.

[The Chair, Conservative, Leon Benoit]

Mr. Boshcoff, do you want to have a final say on your proposed amendment to the motion?

[Ken Boshcoff, Liberal, Thunder Bay—Rainy River, ON]

In the spirit of passing this resolution quickly and promptly--I'd rather not obfuscate things--I'll withdraw the amendment.

[The Chair, Conservative, Leon Benoit]

Is there agreement with Mr. Boshcoff withdrawing? Okay.

To the motion, is there any other comment?

Yes, Mr. Lemieux.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

I would like to comment as well.

As we've listened to witnesses throughout our many meetings on softwood lumber, what we've heard is that if industry supports the agreement, and the agreement carries, then they don't need, or it's not necessary, that they have loan guarantees. The amount of time and effort it's going to take to set up the loan guarantees and actually implement them so that the companies can benefit from the loan guarantees is longer than it would take to get their money back on the deposits if the agreement passes.

For the second time, I think your motion is not well worded and it's premature. It's like the previous motion that we just voted on. We're going to know tonight where industry stands on this. We will know tonight whether or not they support the agreement and we will have a very good feeling as to whether or not loan guarantees are required or not required and whether these deposits will come back. That's what I wanted to comment on, that this is what we've heard from witnesses.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. Lemieux.

Mr. Paquette.

[Pierre Paquette, Bloc, Joliette, QC]

First of all, I want to point out that the agreement has not yet been signed. We don't know what the industry's response will be. In fact, even if we did know, that would not change the fact that there is still a great deal of uncertainty, particularly as regards the program announced by Minister Emerson in his letter.

He states that the money will be arriving over the next six weeks. However, we have no idea how he is going to obtain the list of companies and determine the amount of cash deposits paid by each and every one of them. Since we have no assurances in that regard, it would be better for the Committee to make recommendations along the lines of what has been requested for quite some time now. Contrary to what you've said, this motion is not premature. This should have been put in place a long time ago. I support the motion. We'll see this evening and in the course of the next few days what comes of the April 27 agreement.

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

A subrogation mechanism has been provided for. Could a loan guarantee program be set up over the course of the next six to eight weeks? In my opinion, Mr. Chairman, that is a pipe dream. And it is premature, despite what my colleague just said.

[The Chair, Conservative, Leon Benoit]

Okay. Is there anyone else on the motion?

We will go to the question.

(Motion agreed to)

[The Chair, Conservative, Leon Benoit]

We will now take a half-hour break for lunch and then we will return.

This meeting is adjourned.