Mr. Speaker, on December 7, 2007 the hon. member for Thunder Bay—Rainy River implied that the forestry plan his party presented in the run-up to the last election would have saved the industry.
We all know what voters thought of that party's bag of election goodies. They rejected them. Canadians placed their confidence in this government. We take this responsibility seriously and are providing Canadians with the leadership that they deserve.
I do not wish to make light of the serious challenges facing the forestry industry today. We are witnessing a decline in the U.S. housing starts, a decline in the North American newsprint market, and increased low-cost competition from offshore.
These pressures have intensified over the past year, especially with the rapid depreciation of the U.S. dollar.
Further, higher housing inventories and difficulties in the U.S. sub-prime lending market have meant significant declines in U.S. residential construction; the key driver of lumber and panel consumption in North America.
These challenges have hit the industry hard. Good paying jobs have been lost and communities are being impacted.
However, the government has not been sitting on the sidelines. On January 10 our government unveiled a $1 billion community development trust, designed to help vulnerable communities dependent on a single employer or sector.
Provinces and territories will be able to use this funding for a variety of uses, ranging from investing in job training and skills development to developing community transition plans aimed at diversifying local economies.
That is not all. Through our budgets, economic statements and “Advantage Canada”, we have created, and we continue to create, a supportive business environment for all industries, including the forestry products sector; one that promotes competitiveness, innovation and success.
In short, the government is working diligently to create an environment in which all industries can succeed. And the same is true for the forest products industry.
The forest industry plan to which the hon. member refers included a loan insurance program and an industry support program. These programs were to provide short term relief to firms pending the resolution of the softwood lumber dispute. The party opposite had to offer these programs because it could not resolve the longstanding dispute. However, this government did. Less than nine months after taking office, the government made good on its pledge to resolve the softwood lumber dispute.
The softwood lumber agreement offers many benefits to Canadian producers, not the least of which is the return of over $5 billion. This contributes to the industry's stability, thereby benefiting workers and supporting the economic development of rural communities.
Further, the government has invested $400 million in the forestry sector. We have contributed $127.5 million to encourage the long term competitiveness of the forestry industry, which will in turn help advance a prosperous forestry industry, and the communities and workers that depend upon it.
We are devoting $72.5 million to the targeted initiative for older workers, a cost-shared program with the provinces and territories. It focuses on the needs of older workers who have lost their jobs in communities where the local economy is facing ongoing unemployment or where industries, such as forestry, are affected by downsizing and closures.
We are investing $200 million to combat the spread and consequences of the mountain pine beetle infestation in western Canada.
In closing, the government has supported, and will continue to support, the Canadian forestry industry. The Speech from the Throne highlighted the government's ongoing commitment to stand up for Canada's traditional industries, including the forestry industry, and that is what we are doing.