Bill C-24 (Historical)

Softwood Lumber Products Export Charge Act, 2006

An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence

The purpose of this enactment is to implement some of Canada’s obligations under the Softwood Lumber Agreement between the Government of Canada and the Government of the United States, by imposing a charge on exports of certain softwood lumber products to the United States and on refunds of certain duty deposits paid to the United States and by amending certain Acts, including the Export and Import Permits Act. The charge on exports will take effect on October 12, 2006 and will be payable by exporters of softwood lumber products. The enactment also authorizes certain payments to be made.

Softwood Lumber Products Export Charge Act, 2006

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I rise on a point of order. I will be corrected by the Chair if I am wrong, but the previous lineup had me following my namesake from across the floor. If that is not correct, we can adjust it. Perhaps you can seek some advice from the list.

[The Acting Speaker, Royal Galipeau]

I have recognized the hon. member for Algoma—Manitoulin—Kapuskasing. Resuming debate.

[Brent St. Denis, Liberal, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, it is an honour for me to participate with my colleagues in the debate on Bill C-24, a bill which has very steep consequences for many forest communities across the country.

In my large riding of Algoma—Manitoulin—Kapuskasing, the forest industry is located along highway 11, whether they are sawmills, pulp and paper mills or panel board plants in Hearst, Kapuskasing or Smooth Rock Falls or workers who live in the small villages in between. On highway 17, there is a pulp and paper plant in Espanola, a sawmill in Nairn or Thessalon, forestry workers and logging companies between Thessalon and Espanola, including Elliot Lake, Iron Bridge and Blind River.

These are communities like others across the country that are facing very difficult times, as some of my colleagues have talked about, with energy costs, exchange rates, even government regulation, and the competing demands for the forests and competition from other countries where forest fibres are very inexpensive. All these things and other factors combine to make it very difficult to operate, to be a worker, small business or contractor in the forestry sector. That is why it has been a real challenge for me to try to understand why the government came up with the deal that it did with the U.S.

The Liberals were in office until January for some 12 and a half years and were actually making considerable progress on that file. It is my understanding that in November, prior to the election being called with the help of the Bloc and NDP supporting the Conservatives, it was possible to have an agreement with the U.S. Whether it was better or worse I am not sure, but a deal was possible at that time and would not have been satisfactory to our communities and to the industry, so the government declined to proceed.

Instead, it took the advice of stakeholders. When people were asked if they wanted to settle with the U.S. industry, if they wanted to compromise the gains they had made, if they wanted to give away progress under the free trade agreements or, rather, pursue their legal rights in the courts, under the NAFTA trade panels or the WTO and negotiate, almost exclusively stakeholders, workers and companies said no. They did not want to negotiate, give away what they had gained in their efforts to find softwood trade peace with the U.S. They wanted a solution which was based in the law and due process.

We were getting there and in fact decisions, even since the government came to office, have proven the correctness of that position to follow due process and get what is right under the law and according to trade agreements. The government, sadly, has rushed to find something maybe to make the Americans happy.

I do not want to be too cynical, so I will not go beyond saying that much, but in a rush to find a solution, any solution it seemed, it was prepared to give away all the progress that was made. That is among the many difficulties in this agreement and one of the hardest things to take. Why give away so much progress?

Let me comment further by saying that I have talked to a lot of people in my riding. One person was Guy Bourgouin, president of the Steelworkers local 12995 in Kapuskasing, who wrote in a letter to me in late August:

However, despite this continuing success,--

The success I referred to:

--Canada appears to have capitulated to American demands. Under the proposed deal we are still faced with restrictions on our access to the US market in the form of a tax and/or quota, we are agreeing to allow American oversight of our provincial forest policies, and we are leaving a billion dollars of illegally collected tariffs south of the border. To top it all off, there is nothing in the agreement to ensure the stability of employment in the forest sector or the ongoing viability of forest dependent communities.

Guy Bourguoin in Kapuskasing, president of that local, has summarized it very well. As well, I have talked to René Fontaine, the former Liberal cabinet minister in Ontario, who is so passionate about our forestry sector needing a good deal with the Americans, not this bad deal.

When we consider this deal, if there is one thing among the many measures that we would put at the top of the list of things required, it is stability, at least stability. It is the idea that the deal is bad, but if businesses at least could count on the bad deal for seven to nine years, maybe they could survive. The fact is that this deal can be cancelled by either side, Canada or the U.S., after 23 months. That is not stability. That is not what the industry needs as a top priority.

Yes, we have heard about some U.S. assurances in a letter, assurances that the U.S. will not just casually cancel a deal after roughly two years. What does a commitment like that mean? Our friends to the south went to war in Iraq claiming weapons of mass destruction. They had no evidence for that. So how do we accept some assurance, based on the letter, that they will not cancel this deal after two years? I am sorry with respect to our neighbours to the south who are our friends and our allies, but as neighbours we do expect to be treated fairly. Sadly, we are not.

Let me pick out a few other points that Guy Bourgouin raised in his letter. Let us talk about the over $1 billion that has been left south of the border and which, as some of my colleagues have already pointed out, is being shared. Half of it will go to the industry.

We can be sure that at least some of it will find its way into a legal trust fund for some future challenge once this deal unravels. Those who challenge this deal will be well prepared when it comes to paying for lawyers, court fees, research and so on, whereas our industry has been told by the new government, so new that it is possibly too inexperienced to really understand when it has negotiated a bad deal, that our industry will not be prepared financially to fight back when the other side has a part or all of half a billion dollars to fight with.

The other half-billion is going to be administered through the White House, ostensibly delivering programs, maybe housing, and promoting the use of lumber.

How many among us would actually believe that any of that promotion is going to be of much use to the Canadian industry? I doubt very much that any of it will be of benefit. We are told that the Prime Minister's Office will be consulted on the programs. I will wait to learn if that is actually the case, but I doubt it very much.

There are mid-term elections coming up in the U.S. I suspect that the money will find its way into districts where the Republicans need some help. There is no interest on the side of the U.S. in using that money to help Canadian industry produce lumber here and sell it in the U.S.

I wonder if the stability of this deal depends upon one side or the other determining after two years whether it should abrogate the deal or not. Who is going to make the decision to abrogate the deal? It is not going to be this side. It is going to be the U.S. side. Our side wants stability. Our industry members are fair traders and they are not subsidized.

My colleague from Etobicoke North mentioned the natural advantage. Do we challenge the U.S. because it has more sunlight in a year due to the climate? No, that is its natural advantage.

We have a natural advantage that we are proud of. We have great workers in the industry and great communities, and we deserve a much better deal than we have been shown here.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I have a small question that remains unanswered. I put it to one of the hon. member's colleagues previously. Quite a few years led up to this flawed deal. There were also the previous negotiations by the hon. member's government, only to arrive at an equally flawed deal, one that was maybe even worse according to the government today.

They can decide what cabinet confidences were broken in the delivery of that news, but in all those years leading up to that, there was one thing about small and medium-sized producers in particular. Oftentimes the small and medium-sized mills are family based, with an extremely high ratio of investment dollars per job. This is an important ratio for people to understand, because as the consolidation of this industry has been going on over the last 10 years, it essentially has meant fewer and fewer players in the market, fewer and fewer manufacturers of wood, while provinces, and in particular the Gordon Campbell government in B.C., have increased dramatically the raw log exports going to southern mills and mills in other countries.

Anyone looking at the profile of the softwood industry knows that the greatest good is gathered at the processing level, not at the extraction level. While there are a few jobs out in the bush for taking wood out to the manufacturing level, there are relatively few in comparison to that. With increased technology, there are fewer still.

Through all of this consolidation, this larger format for companies, we have petitioned the hon. member's former government and the current government on loan guarantees, the ability of some of these medium and mid-size manufacturers to acquire the loan guarantees to allow them to compete with some of the bigger players in the market. Those requests fell on deaf ears in the previous Liberal government as well as in the current Conservative government. We simply cannot get anywhere with this. It is something that industry has called for consistently and New Democrats have joined them in that call.

Can the hon. member square this circle somehow and explain to me now how the Liberal Party is actually suddenly interested in those companies and those communities that have suffered for so long?

[Brent St. Denis, Liberal, Algoma—Manitoulin—Kapuskasing, ON]

Actually, Mr. Speaker, I am very pleased to have the opportunity to clear the record. In fact, it was in the days before the NDP and the Bloc helped the Conservatives cause an election that the former Liberal government put on the table a substantial package including loan guarantees to provide funds to companies against dollars held illegally by the U.S. government. That program, that opportunity, was lost with the election, so I hope the hon. member understands that his party is partly to blame for the predicament facing the forestry sector in this country right now.

I will also say that it is now our position as the Liberal opposition that there be loan guarantees right now to help the industry through a very, very difficult patch. There have always been supports in one form or another to help with the implementation of new technologies, whether it was TPC or other Industry Canada programs like FedNor the case of northern Ontario, to help with the modernization of mills.To use an example, a pulp and paper mill in my riding got some assistance with technology improvement some years ago.

I do not want to speak for the hon. member, but I suggest that this is not really the issue he should be focusing on. In the forestry sector, the government says, some 90% of the people have signed on, but they have been forced to sign on. There are some major players who have not signed on. They will be penalized greatly if they do not sign on. They will have to come up with 19% of the money that is going to stay in the U.S. They will have to come up with their share of 19%.

The record of the former Liberal government when it comes to forestry is clear. We cannot do the provincial government's job when it comes to the forestry sector. The provinces have the principal role in managing the forests, but the federal government has always been there. This is the first time in a long, long time, I believe, maybe going back to the previous Conservative government prior to 1993, that so little has been made available except “take it or leave it”, as we are seeing right now.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I have very much looked forward to my time to enter this debate. For a lot of members of this House, but now fewer and fewer of them, the ability to speak on the experience of watching what mills in their ridings have gone through in the last five to ten years is difficult. It is an extrapolation of the idea. It is an imagination of what it is for communities when they are faced with such trying times.

The reason that there are now fewer members of Parliament who have had that experience is that there are fewer mills across this country. In my region alone, not 30 years ago, there were 280 independently operated sawmills. The consolidation has left us with three or maybe four significant mills after all that time.

It is important for Canadians to understand the context of this deal. Many Canadians, particularly those living in urban ridings, may not have come to appreciate the magnitude of the destruction to the basis of our rural economy over the last decade. Not only have these illegal and punitive duties been slapped on by our American counterparts, but there has been huge devastation to the industry in an amalgamation process that has left small and medium operators completely out of the picture.

As I was saying to a colleague earlier, there are so many aspects to the so-called deal we are looking at today that it is amazing a sellout takes this many pages to be written. I would think that the words “100% total capitulation” would have taken a page to a page and half at most, but I suppose that a lot of legal text and jargon was necessary to keep government lawyers funded.

For far too long, the communities I represent have been suffering under a burden of neglect by the previous Liberal government. Just when things were as bad as they could be, a pine beetle epidemic has swept across our region and now is heading over the Rockies. Unfortunately, the rest of Canada may come to appreciate what it is to watch entire forests devastated.

We have a provincial Liberal government in Victoria that is interested only in massive raw log exports, which does little. For people who are not familiar with the industry, let me say we truly know that the best and greatest advantage and benefit to chopping down a tree is what is done with it once it hits the ground. We simply must manufacture and add value. We have talked about this. Every politician across this country who is dealing with primary resources in any way, shape or form says that we need to transform our economy to add further value to the resources we are endowed with, to the endowment this country has.

Yet the government is forcing industry, the provinces and various players to sign on to a deal that works in a direction that is opposite to the investment needed to actually add value to that wood. In cahoots with the Liberal government in British Columbia, it continues to raise the number and the amount of raw log exports that leave our region. When those logs leave, so too do the jobs.

For small communities in the hinterlands of Canada, there is a struggle to understand why so little attention is paid to them. These communities understand that they might not have the great subway systems, huge art galleries, and the scatterings and smatterings of MPs around every street corner that Toronto, Vancouver and Montreal do, but they cannot understand why, after having contributed so much to the wealth of this nation, they are given so little due and so little attention.

Let us get to the deal itself, for while it is complex, the reading is fine and the conclusions are disturbing. Bill C-24 continues the unfortunate legacy of sell-offs and sellouts that Conservative governments have left Canada with.

The government initially went to the table for the FTA and then NAFTA. In that negotiation, the Americans wanted access to our energy. That was one of the clear negotiating pieces of the American interests. We know this because the negotiators who were at that table have since written books, essays and discourses on what it was like to be there.

I remember one chief American negotiator calling it not so much a negotiation as a capitulation and a dictation from the American side. The Americans were dictating to us. They wanted access to Canada's vast energy resources. Energy resources were clearly seen as something important for the growth of the U.S. economy, but Canada was reluctant, knowing how important these energy resources were for our own growth. The trade-off became that the Americans would offer us a dispute resolution panel because they understood that the two negotiating partners were not in balance, that one was clearly economically stronger than the other, with the Americans having a larger, more powerful and protected market.

A dispute resolution panel was established to allow us to settle our disputes and now we have a deal that takes that dispute resolution panel and tosses it out the window. It simply says that when we win, when we are right, in fact we lose and we are wrong. All it takes is a certain amount of political pressure and opportunism by a government for us to get the short end of the stick one more time.

Oftentimes the government will try to talk about certainty and that the industry is looking for certainty. The investments that the softwood industry has to make are large and expensive and can only be paid off over a certain amount of time. Certainty for their products is important and yet, having just cut a cheque for $450 million to put into the war chest of the lobbyists who first launched this agreement against us, leaving over $400 million in the coffers of the very same people who are fighting and illegally pushing the U.S. Congress and Senate to put tariffs on our own duties, we have ensured anything but certainty. We have ensured that this fight will continue another day, because what else is one going to do with $450 million, if one is a lobbyist for the U.S. softwood industry, other than go after the Canadian industry and ensure that a fair fight cannot be fought?

We have also left half a billion dollars for President Bush's electoral campaign in November. I am not sure if such a sizeable cheque has ever been written by a Canadian government to assist a Republican president, but certainly the Americans are thankful. This is money well needed by an administration in the United States that is on the verge of bankrupting its own nation. It is so-called conservative economics at play once again.

What about the money returning to Canada? I have spoken with some of the CEOs who have been advocating for this deal and I asked them what encouragement the Canadian government gave them to take the 80% of the money that will be returned and actually invest it in Canada. Their reply was that the government had given them no encouragement to invest a single dollar in Canada.

While the money is supposed to be returning, many of these companies involved in this negotiation, due to the consolidation that has happened in this industry for the last decade or more, work both sides of the border. They have plants and operations on both sides of the border. Canadians need to ask themselves, if a company has mills both in Washington state and in British Columbia, why would it process a stick of wood in B.C. if it can move it across the border as a raw log and avoid the punitive tariff that our own government is placing upon a processed piece of timber or product. Why would anyone invest a nickel in an operation where they eventually will be punished for processing that wood?

It has created a disincentive for Canadian and multinational firms that operate in Canada and actually invest in Canada and create the types of jobs that we all hope for, for all these communities that have been through so much over the last number of years.

As time runs down, it is important to talk about the producers who are actually affected. I am thinking of a sawmill in one of my communities, which is Terrace, that has been through much. It is struggling to get reasonable access to timber to provide 60 or 120 jobs. For a community of 10,000 people that has struggled so much with an absolutely disastrous housing market and little space and room for companies to invest, this was important. They are looking at this deal as a small producer and wondering where they are in this.

A second important piece of what we have capitulated here is a basic notion of sovereignty, about how it is that we manage the forestry sector. Every member of Parliament will know that it is now provincial jurisdiction. The provinces decide how and where to cut wood and under what stipulations. However, in Article XVIII of the agreement, neither party shall take action that circumvents or offsets the commitments set out in this agreement and specifically any change in a provincial timber pricing or forest management system as it existed on April 27, 2006.

It is black and white. Washington has the ability to dictate terms over the provincial government's own jurisdiction, which our own federal government does not have.

What is important is that the system and the sellout that has been signed determines the cap by region and once that cap is broken then the duties start to increase and the tariffs and penalties go up. When a company chooses to flood any particular region with wood, it will punish a company that chooses not to. This is collectivism gone wrong. It is insane. How can we punish a company down the road that is actually abiding by the law when it is a larger company, which is what it will be, that wishes to glut the market?

This is a bad deal for communities and a bad deal for Canada.

[Helena Guergis, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, I would like to ask the hon. member why the NDP members never pushed for anything for the softwood lumber industry when they made their backroom budget deal with Paul Martin. They had an opportunity to pretty much ask for anything they wanted at that time but they never really cared.

[The Acting Speaker, Royal Galipeau]

I am sorry to interrupt the hon. member but she is an experienced member and she knows that we do not name by name other members of the House.

[Helena Guergis, Conservative, Simcoe—Grey, ON]

My apologies, Mr. Speaker.

I wonder if the hon. member could please let us know why the NDP did not care about the softwood lumber industry at that time or care about Canadians and the forestry industry then. I would like an explanation.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I heard the call out around the House that it was a fantastic deal.

Let me talk about the NDP budget for a moment because it was a remarkable moment in parliamentary history. For those of us in the House who have studied the history of this place in any fashion whatsoever, we know that never before has an opposition party rewritten a budget, and what a budget it was.

We had $4.5 billion in an unannounced tax cut for the largest and most successful corporations in Canada that had not even asked for. It was not even mentioned in the pre-consultation arrangements by the government. The previous Liberal government suddenly popped up and said that the money was an early Christmas present. The NDP stood up on principle and said “absolutely not”. This was the first time in Canadian history that something like this happened. It was remarkable to watch the Liberal Party of Canada follow through on a commitment that it had made in an election. Thank goodness it took the New Democrats to actually make that happen. We saw $4.5 billion being invested into what Canadians actually wanted, such as post-secondary education, environmental initiatives and in overseas funding of international programs, which were things we all talked about and wished for.

I remember when the leader of the New Democratic Party stood in the House and asked the then prime minister if he would consider changing his budget. Lo and behold, the prime minister said that we should make him an offer and did we ever. We made an offer that worked for Canadians. It is just one of the most remarkable things to still talk about.

I thank my hon. colleague for the opportunity to once again talk about what was one of the most remarkable moments in our history as a House of Commons.

[Roy Cullen, Liberal, Etobicoke North, ON]

Mr. Speaker, I wonder if my colleague would comment on the issue of raw log exports. I know this is a big deal in his part of the world.

I had the great pleasure to do some work up in Stewart, British Columbia on the issue of raw log exports. It is an important and sensitive issue. Why should we be exporting raw logs when we can process them here in Canada where there are very strict rules about how that operates?

It was in the third countervailing duty battle that the U.S. imputed a figure of something like 6.8% or 6.9% of a total countervailing duty claim of around 15%. The U.S. argued that restricting the export of raw logs was an effective subsidy because it had an effect on domestic log prices and deflated them, et cetera. If that were adopted, we could not really set our own forest policy in Canada and say that we want more value added In Canada.

More recently, a Chapter 11 lawsuit has been filed by a big U.S. company that has some private land in British Columbia. It wants to export its raw logs into its sawmills in the United States. That has been denied so it is suing under Chapter 11.

Could the member comment on raw log exports in the context of this deal, particularly the anti-circumvention clause that might allow the Americans to say that we now need to export raw logs to the U.S., raw logs in British Columbia that are feeding U.S. sawmills in Washington state and Oregon state? I am not talking about a few logs. I am talking about maybe enough logs to feed three or four sawmills in Washington state and in Oregon.

What does the member for Skeena—Bulkley Valley feel about this deal in that particular context?

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, let me talk about the NDP budget a little bit more.

The important thing to consider, when we look at raw log exports, is to understand the vastness of the economic damage done when we take what is Crown property and simply chop it, chuck into the ocean and ship it down in massive booms to the United States, and sometimes to other countries by putting it on container ships, only to have the Americans process the wood and sell it back to us. This is a large amount of revenue that is lost to federal, provincial and municipal coffers when processing jobs are moved out of the country and put somewhere else.

I actually do not share my hon. colleague's concern about the Americans wanting to pull out of this deal in the next 18 months because it is such a good deal for them. When they can use many different elements to hammer away at us and destroy the very basis of the manufacturing base in British Columbia and other provinces, it would be insane for them to pull out of this agreement. Our government could have arranged a better deal, and it knows it, but the previous government did not even try.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I am pleased to speak today in opposition to this flawed bill.

In my riding of Nanaimo—Cowichan, forestry has been a long and proud tradition. We have a long history in forestry, the sawmills, the pulp and paper mills and the men and women who have worked in the forestry but we are seeing dislocation in my community that is impacting not only the workers and their families, but also their suppliers. It is impacting on municipal councils and cities to make long range plans and decisions that will support the vitality in our communities.

I want to remind the House why this is such a bad deal for Canadians and for British Columbians. Many of my colleagues, including the member for Skeena—Bulkley Valley, have spoken quite eloquently around the impacts, but I think some of these points deserve repeating.

Part of the reason that this is such a flawed agreement is that it is based on some falsehoods. Let us just call it what it is. It is based on the falsehood that the Canadian softwood lumber industries are subsidized. This falsehood has been exposed and rejected time after time by both the NAFTA and the U.S. commercial court rulings that have ruled in favour of the Canadian softwood lumber industry.

This agreement gives away $500 million in funds that are owed to the Canadian softwood industry. This is just a massive giveaway to the U.S. industry and to the U.S. government.

We often talk about accountability in this House and when we talk about accountability we expect good value for our dollar. I would question the fact that we are giving $450 million in funds to the Bush administration, funds that can be used at the discretion of Congress with no accountability attached to them. It seems to me to be a very strange way to talk about accountability.

I heard an echo in the background here talking about subsidy, and it does seem like a subsidy to activities that are detrimental to our industry here in Canada.

The other thing we talked about is the fact that this agreement can be cancelled unilaterally at any time. With that kind of uncertainty, how does that provide any stability to our softwood industry? We have seen this lack of stability played out over the last number of years as companies have been unable to invest in upgrading their equipment, as we have failed to invest in training and education for workers, as we have failed to provide that stability to our small communities.

This agreement also kills the credibility of the NAFTA dispute settlement mechanism. I have already mentioned the fact that we have had these rulings in our favour. This agreement goes outside of the NAFTA dispute settlement mechanism and goes ahead and talks about the fact that part of these illegally obtained $5.3 billion in duties are being sent back to the U.S. to fund further activity against Canadian softwood. It also does nothing for the thousands of workers who have lost their livelihood over the past five years. There is nothing in the softwood lumber agreement to deal with the major disruption that the U.S. abusive trade rules have caused to working families and their communities.

I talked earlier about my own riding. Whether we can directly attribute this to the softwood lumber industry or whether it is a secondary spinoff, we have seen mills close. The Youbou mill in my riding closed four years ago but I continue to hear from people who talk about the impact this has had on their livelihood and on their families. Some of those workers are still not employed on a regular basis four years later.

A little later I will talk about some other spinoffs that have happened that have put the continuing squeeze on this industry, and some of this is about actual deaths in the woods.

While the softwood lumber agreement supplies $450 million of Canadian money to the U.S. to help U.S. communities and workers, there is not one cent in this agreement for the transition for our own workers in our own communities. Many of the workers in our communities have already been displaced. Where is the funding for training and education that helps with the transition that is taking place daily in this industry? Where is the recognition of the value of the workers in our own communities who deserve to have some assistance with training and education as the industry changes? Some of these training and education dollars should go directly toward helping people gain the skills as the industry itself changes but some of these funds also need to be applied to help workers who need to transition out of the industry.

One of the other things, which is hopefully is an unanticipated consequence of the agreement, is that many people feel that this will discourage value added production and stimulate raw log exports. The deal fails to close a loophole that gives raw logs from private lands a competitive edge over logs processed here.

On Vancouver Island, in my riding, a significant proportion of the land is private land. The softwood lumber agreement fails to secure that those logs would be processed in British Columbia. People talked about a made in Canada solution. We do need a made in B.C. and made in Canada solution that considers our industry, our workers and our communities.

The member for Burnaby—New Westminster has consistently called for hearings that to take place from coast to coast to coast so communities, labour and industry have some input into crafting the agreement. I would strongly urge the House to support the fact that we want to see these hearings in communities across the country.

There is also a voice that has been absent in this agreement. I believe first nations were only mentioned once or twice in this entire lengthy document. First nations must be at the table and must be considered in the consultations around softwood. In British Columbia, in particular, we are engaged in treaty process, land claims and the management of resources. First nations must be at the table as equal partners in any discussions that go forward.

I want to talk a bit about statistics, and I know many in the House are thrilled with statistics. There is a need for an industrial strategy in Canada. According to the B.C. government, since 1999, British Columbia has lost 20% of our workforce alone. The workforce around direct forestry activity has declined from 31,000 to 21,000. This kind of massive dislocation in an industry calls for a national strategy. We as a country must determine whether we will commit to us being a processor, a hewer of logs, and we must have an industrial strategy that talks about the kind of reinvestment that keeps us competitive, both domestically and internationally.

According to the United Steelworkers, and it uses the government's own statistics on this, we can talk about the value that is lost both in our province and in our country. In 2001 logging produced revenues of $5.2 billion while solid lumber and pulp and paper mills produced revenues of $11.2 billion and $6.5 billion respectively. It is clear that the real value in our wood is when it is milled, not when it is shipped as raw logs. For every $1 million that forest companies invest, they create 3.9 direct jobs in their industry and 5.9 indirect jobs. In 2005, 3,300 direct jobs were forgone due to exports, which means $250 million in lost earnings.

If we just want to talk about economy, we need to talk about the fact that the more we do closer to home, the more it results in not only direct jobs in our community, but indirect jobs in terms of suppliers, transporters and all those other industries that support our forestry industry.

We talk about economics and industry, but let us talk about real life, on the ground, what happens to people in their families and their lives. Overall it feels like there has been increasing pressure on industry over this last several years and there has been little relief for them. The NDP has called for loan guarantees to help the industry over this tough time. We have called for an additional investment in training and education. The sad reality is there is increasing pressure on the industry. This agreement contributes to that overall pressure.

I talked about this being not just about dollars. I want to talk about last week's inquest into the death of Ted Gramlich in my hometown of Duncan. As a result of this inquiry, a number of health and safety issue have been exposed about the new regulations in the B.C. woods.

Responsibility for health and safety has been downloaded to individuals and contractors instead of the companies that buy the wood, creating huge gaps in the safety net. Last year 43 loggers lost their lives on the job. The Vancouver Island Loggers Safety Group continues to work to raise awareness among politicians and the private side as a whole.

My time is up, but I make a plea to the House to consider the impact, not only on the industry, but on communities and individual lives. This agreement will have a long ranging impact. I would urge us to think very carefully before members of the House support such a deeply flawed bill.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I thank my colleague, the member for Nanaimo—Cowichan for expressing her passion for this issue and the experience she brings to it. Many members of the government seem lost on what it is to process a stick of wood and what it is to add some value and create the type of wealth for communities like hers and for many of the communities that I represent. This deal is an excellent sell-out. It is quite remarkable in its consistency page after page and in its depth of advocating the interest of exporting more jobs to other countries and then buying the products back.

The member quoted the statistics from British Columbia, 10,000 jobs out of a sector. If there are other sectors maybe a little more politically salient for the new government and for the previous government, we would have had a deal that would have actually met the requirements of our country and our interests.

Could the member comment on what the effects are in the community of Nanaimo and those surrounding it when even a single job or a set of jobs from a particular mill are lost and moved across the border or overseas?

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I will talk specifically about British Columbia in this context because it is one of the largest softwood lumber producers in the country. Ninety-five per cent of the land in British Columbia is provincial crown land.

I talked earlier about an industrial strategy. It seems to me that between the federal government and the provincial government we need to reinstate that social contract that says that when we have crown land where we are producing logs, there needs be some direct benefit to Canadians.

We see forestry workers cutting logs. We have seen transportation benefit from shipping the logs south. However, I know the Steelworkers, local 180 in my riding, is clearly calling for an industrial strategy that says that these forests must benefit all of British Columbia. We must reinstate the social contract that says not only do we cut the logs, but we process them close to home and that we ensure our communities remain viable and sustainable and our communities benefit directly, which keeps our province health and vital. We should not just be hewers of logs who ship them somewhere else to be processed.

It is absolutely critical that we examine the softwood lumber agreement in that light and that we call for those reinvestments in industry and in our communities.