Mr. Speaker, what are northern Ontario's concerns about the softwood lumber deal? Why would this deal be called a sellout or a capitulation? There are many concerns, and clearly most have not received satisfactory answers, in spite of repeated reasonable questioning. Lumber groups and associations, private companies, exporters, manufacturers and labour have identified several tragic flaws.
First, the deal allows the Americans to keep 20% of the tariffs that were collected illegally. Recent reports suggest that the White House will receive $480 million, to be used at the discretion of President Bush. There are no controls on the use of these funds, so the fear is that they will be used in the Republican campaign or as third party funding in the next Canadian election. Five hundred million dollars will go to U.S. lumber interests to pay their legal bills from the past years or for future challenges to Canadian exporters. No interest will be paid for the funds that have been illegally held for such a long period of time.
Second, as for free trade, it eliminates the dispute panel, which means that all of Canada's hard-won victories in proving our case are thrown out. Already other American industries are challenging Canadian products such as corn, knowing that it will not cost them anything to stop us.
Third, this deal was rejected many times previously because it simply gave away too much. However, the dire straits of the industry may make any deal seem attractive in order to at least temporarily stop the bleeding. This situation easily could have been offset by the Liberal forestry plan of $1.5 billion, which was put in the funding envelope immediately prior to the November 2005 election call. Certain victory in the courts would have compelled the Americans to return all of the money, with interest.
Why have 80 Canadian companies now filed suit against the United States? Why have the major forest companies and many associations filed their protests? Why are both the Canadian and American governments being sued for selling out?
The main reason for all of the above is the special conditions that give free access only if current conditions stay the same. If there are changes, Canadian industries will suffer more penalties. We are still paying $40 million a month. So much for the good faith.
Just because there is a deal does not mean it is good. Northwestern Ontario will suffer heavily. It is predicted that 20% of Canadian sawmills will close. This is unacceptable.
Provincial and federal governments will not be permitted to change forest policies in any manner that could be interpreted as assisting the forest industries because of the terminology of the anti-circumvention measure, nor can any new assistance be provided. Should regional energy pricing come to the northwest, the Americans can overrule it.
The deal has been called an outright political surrender, but it is not too late, even now. I stand here today to let the Prime Minister know that northwestern Ontario will not be subjected to President Bush's hidden agenda.
For four years, Canada has been winning this battle. We do not have to give everything away just to end the war. The government must stand up for Canada.