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

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

David Emerson  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-24s:

C-24 (2022) Law Appropriation Act No. 2, 2022-23
C-24 (2021) Law An Act to amend the Employment Insurance Act (additional regular benefits), the Canada Recovery Benefits Act (restriction on eligibility) and another Act in response to COVID-19
C-24 (2016) Law An Act to amend the Salaries Act and to make a consequential amendment to the Financial Administration Act
C-24 (2014) Law Strengthening Canadian Citizenship Act
C-24 (2011) Law Canada–Panama Economic Growth and Prosperity Act
C-24 (2010) Law First Nations Certainty of Land Title Act

Votes

Dec. 6, 2006 Passed That the Bill be now read a third time and do pass.
Dec. 4, 2006 Passed That Bill C-24, 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, as amended, be concurred in at report stage with further amendments.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 50.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 18.
Dec. 4, 2006 Passed That Bill C-24, in Clause 17, be amended by: (a) replacing lines 42 and 43 on page 12 with the following: “product from the charges referred to in sections 10 and 14.” (b) replacing line 3 on page 13 with the following: “charges referred to in sections 10 and 14.”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 17.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 13.
Dec. 4, 2006 Passed That Bill C-24, in Clause 12, be amended by replacing lines 2 to 13 on page 8 with the following: “who is certified under section 25.”
Dec. 4, 2006 Passed That Bill C-24, in Clause 10.1, be amended by: (a) replacing line 27 on page 5 with the following: “referred to in section 10:” (b) replacing line 12 on page 6 with the following: “underwent its first primary processing in one of”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 10.
Dec. 4, 2006 Failed That Bill C-24, in Clause 107, be amended by replacing lines 37 and 38 on page 89 with the following: “which it is made but no earlier than November 1, 2006.”
Dec. 4, 2006 Failed That Bill C-24, in Clause 100, be amended by replacing line 3 on page 87 with the following: “( a) specifying any requirements or conditions that, in the opinion of the Government of Canada, should be met in order for a person to be certified as an independent remanufacturer;”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 8.
Oct. 18, 2006 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Oct. 16, 2006 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “the House decline to proceed with Bill C-24, 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, because it opposes the principle of the bill, which is to abrogate the North American Free Trade Agreement, to condone illegal conduct by Americans, to encourage further violations of the North American Free Trade Agreement and to undermine the Canadian softwood sector by leaving at least $ 1 billion in illegally collected duties in American hands, by failing to provide open market access for Canadian producers, by permitting the United States to escape its obligations within three years, by failing to provide necessary support to Canadian workers, employers and communities in the softwood sector and by imposing coercive and punitive taxation in order to crush dissent with this policy”.
Oct. 4, 2006 Failed That the amendment be amended by adding the following: “specifically because it fails to immediately provide loan guarantees to softwood companies, because it fails to un-suspend outstanding litigation which is almost concluded and which Canada stands to win, and because it punishes companies by imposing questionable double taxation, a provision which was not in the agreement signed by the Minister of International Trade”.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 3:55 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, I will be happy to pick up where I left off yesterday in debating the Group No. 1 amendments to Bill C-24. At the time, I was reminding Canadians everywhere who have not been following the softwood lumber issue perhaps as carefully as those of us who have been seized with the issue, that it seems the government is moving at almost warp speed to shred any competitive advantage that Canada may enjoy over the United States in the case of lumber and, as I will develop further, in the case of wheat.

Just days before Ottawa bludgeoned Canada's lumber industry into this deeply flawed softwood lumber agreement, the Vancouver Sun published the details of a leaked letter from the Bush administration to the U.S. lumber lobby. This is not a conspiracy theory. This was accurately reported in the Vancouver Sun and its veracity has never been challenged. In the letter, the American administration, the Bush administration, confirmed that its objective was to hobble the Canadian industry for seven years. It is no longer paranoid to assume that this was their goal. This was a stated fact.

Nor does it end there. The most shocking thing has been pointed out in great detail and with great courage and strength, I might add, by my colleague from Burnaby—New Westminster, who has been perhaps the sole champion on behalf of the Canadian public on this issue through committee stage and still is now as this plods through the House of Commons. Perhaps the most horrifying statistic that my colleague from Burnaby—New Westminster pointed out is that fully $450 million of the $1.3 billion that we left on the table in illegal duties, which the Americans will get to keep, will re-grease the re-election wheels for the protectionist Republicans.

Canada's timber industry will thus be forced to subsidize the ongoing illicit attack on itself, all with the explicit consent of the Canadian government. Let us imagine it. We are fueling the administration by the $450 million in this fund to continue these attacks, and not only on our lumber industry, because the Americans will have won that battle. Who knows what other industry sectors they will be targeting next? I will talk about the Wheat Board in a moment, and my colleague from Hamilton raised the issue of the steel industry, which is of course very concerned.

There is even more. The softwood deal is trade that is managed of, by and for the American lumber lobby. A supposedly sovereign nation, Canada, has signed on to an unprecedented clause in this agreement, a clause that requires provinces to first vet any changes in their own forestry policy with Washington. I say that with some emphasis, because I myself was shocked. I have not been following this softwood lumber agreement as carefully as have some of my colleagues, such as my colleagues from Skeena and Vancouver Island North, where the lumber industry is key and integral to the very viability of their economic regions.

I was dumbfounded, but what confused me even more is that my colleagues from the Bloc Québécois who are in support of the softwood lumber deal are the enablers that are allowing the Conservatives to ram this deal down our throats. On the issue of sovereignty alone, one would think that my colleagues from the Bloc would have blown the whistle on the bill and refused to participate in it to any degree. They, of all people, should acknowledge what an insult to the sovereignty of Canada it is to have to go cap in hand to Washington to make any substantive changes to the way we administer our own forestry industry.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 3:55 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Traditional sovereignists.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 3:55 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Traditional sovereignists, as my colleague from Skeena says.

I am just stating this clearly for the folks at home who may be watching. I am not sure that Canadians fully understand the impact of this hastily thrown together sellout of Canadian sovereignty. It is not only the dollar figure; perhaps this clause I have mentioned is even more damaging than the $1.3 billion we left on the table.

For the record, this is the second time that a Conservative government has snatched defeat out of the jaws of victory on a lumber file. For the historical record, I remind my colleagues in the House that in 1986 the GATT, the World Trade Organization's predecessor, issued a preliminary finding on the legality of U.S. lumber duties against Canada.

Brian Mulroney's government at the time, hell bent on negotiating a free trade agreement with the U.S., abruptly aborted the challenge that we were winning. The preliminary finding was issued in our favour, and even though we were winning and would have perhaps put this whole issue to bed at that early stage of this longstanding challenge, he aborted it, so the findings were never officially published.

It does not take a suspicious mind to assume that Mr. Mulroney did not want the ruling to become part of the permanent record. He did not want to offend the Americans in any way at that fragile stage of his newly crafted free trade agreement. I can only say that I cannot condemn enough that kind of sellout of Canadian sovereignty and well-being.

Let me make a comparison that I wanted to draw in my opening remarks. There is a connection to be made. The Conservative government is doing the Americans' dirty work for them, not only on this big trade irritant that was the softwood lumber issue, but also on the Canadian Wheat Board, which has offended Americans for years. The Americans do not like this collective action on the part of Canadian farmers.

The Americans filed 11 separate trade challenges against the Canadian Wheat Board and lost every single one of them, but now the Conservative government has promised to do what the Americans could not do by any legal challenges. The government has served notice that it intends to do away with the Canadian Wheat Board in spite of all the empirical evidence that the Canadian Wheat Board serves the interests of Canadian farmers well and is an important prairie institution.

I will take members back in history again. We should take note of the fact that there was a dual market voluntary wheat board at one time. It failed in one of the most catastrophic bankruptcies that Canada had known to that time. It failed in 1935 in a spectacular bankruptcy.

We know that the dual desk cannot work for one simple reason, that is, if the initial offering price is higher than the market price, the Wheat Board will get all kinds of grain delivered to it and will have to sell the grain at a loss, and if the initial offering price is lower than the outside market, the Wheat Board will not get any deliveries. Then, boom, the board will be out of business in one or two years.

We know that it will be the death rattle of the Canadian Wheat Board to do away with single desk marketing, yet the government seems to be on a mad crusade to do the bidding of the Americans, to do their dirty work and do away with this great prairie institution.

Those of us on the NDP benches shake our heads and wonder why--

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4 p.m.

The Acting Speaker Andrew Scheer

I apologize to the member, but the time for his speech has run out.

The hon. member for Skeena—Bulkley Valley.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, it is unfortunate that the time ran out so quickly because I know my hon. colleague takes these issues of intergovernmental relations very seriously. The defence of our national interests is of pre-eminent importance to the member.

I wonder if the member would comment on what type of precedent this sets, if in fact it is a precedent, because I believe the Conservative Party has a long and sordid history of selling out Canadians to our American neighbours. What type of precedent does this set and what type of message are we sending to our American partners in the way that we trade with them, in the way that we seek fairness in our trade?

Has the signal been sent by Canada that we will continue to fight unfair trade practices? Or are we simply going to draw up our own pieces of legislation, deeply flawed as this one is, and cave on every major issue that our American partners ask for?

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:05 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, it is troubling and worrisome that we have done such a terrible job of representing Canadian interests in the process of these negotiations.

I come from a trade union background. I have negotiated a lot of collective agreements. One thing I can tell members without any hesitation is that we are not going to get much of a package if we announce ahead of time that we give up.

That is virtually what our Minister of Industry did. Before the negotiations were even over, he announced that this was the best deal we were going to get. The Conservatives' bargaining strategy was to be on their knees, which is not a bargaining strategy at all. It is not coming from a position of strength; it is coming from a position of weakness.

I do not know who we sent down there to bargain on our behalf. I think the people who negotiated the free trade agreement should be dragged into the streets and shot, frankly, and as for the people who negotiated this agreement, it borders on economic treason to sell the economic interests of Canada down the river for God knows what other secondary objective they may be trying to achieve.

What I can tell members is that the one thing has been ignored in all this hype about how thankful we should be that the Conservatives get along so well with the Americans is this reality: Canada tossed away a significant victory that was won not just before the North American Free Trade Agreement panels but before the U.S. Court of International Trade. On April 7, the U.S. Court of International Trade ruled that the duties on softwood lumber were illegal. Within days of that very time, we were rolling over and accepting a deal that left $1.3 billion on the table.

My colleague from Trinity—Spadina was itemizing what that $1 billion we left behind could buy in terms of other necessary social spending. At a period of time when the Conservative government was nickel-and-diming all these important programs across the country, it was cavalierly leaving $1 billion on the bargaining table in the United States. It does boggle the mind as to how they can be so cavalier and frivolous with massive amounts of money and so miserly, to the point of almost being cruel, with $100,000 here and there that would keep an important program going in one of our communities.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:05 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I hope the member for Winnipeg Centre can draw some sort of connection or parallel, as he was doing in his speech, between Canada's new position on the Wheat Board and its dovetailing with what the Americans are hoping to achieve across all our economic sectors.

Is there some sort of game afoot, does he suspect, between Ottawa and Washington right now to break down the very tools and mechanisms that Canadians have relied upon for our own economic success?

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:05 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, that is a very thoughtful remark. If I could go back to my opening comments, it seems that the new Conservative government is hell bent and determined to shred any competitive advantage that we may enjoy over the U.S. in any industry sector where that may occur.

Whether the Conservatives are just yielding to pressure from the U.S. or whether they have ruled that we should harmonize in some way, why would we voluntarily give up our advantages such as those in the resource sector, where we are blessed with abundant natural resources? Why would we sign a deal that would actually encourage the export of raw logs and discourage the value-adding of that lumber before it gets shipped across the border? It is inexplicable.

To put it in simple terms, when we strip down this agreement into a couple of pages of what it actually does, Canadians will be horrified. They deserve--

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:05 p.m.

The Acting Speaker Andrew Scheer

Resuming debate, the hon. member for Vancouver Island North.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:05 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, here we are again standing in the House reminding Canadians what a bad deal the softwood agreement is for Canada and for Canadian forestry workers. My friend from Winnipeg was very clear in his comments and reminders to the Canadian public.

I first acknowledge the hard work and determination of one individual in the House, the member for Burnaby—New Westminster. The member has been tireless in his efforts at the committee, bringing forward amendment after amendment and speaking for hours, trying to get the Conservatives, the Liberals and the Bloc to understand what is happening in forest dependent communities across the country and why forestry workers are opposed to this very bad deal. However, all of his amendments were shot down by the other parties, amendments that attempted, in a strong way, to make a very bad deal marginally better. We knew it would not improve it much, but at least he tried.

On behalf of the many forestry workers in my riding and across the country, I thank the member for Burnaby—New Westminster for his commitment and for standing up in the House for Canadian jobs. It is something we do not see enough of, and that is what we are talking about here.

The Conservatives could have used our wins at the NAFTA and WTO tribunals as a bargaining chip to get full redress for Canadian companies and Canadian jobs. Let me once again remind us all that Canada won at every trade dispute, including the ruling on October 13, a mere month ago. The ruling confirmed that Canada was close to a decisive victory, as we had said. My colleagues have been pointing this out for a couple of years now. Instead the Conservative government sold us out. The Conservatives took those wins and they negotiated them away, which is ludicrous. It almost makes me speechless, but I will talk anyway.

These American tariffs have now been struck down by the U.S. courts as well as NAFTA panels, but under this deal Canadian industry will be paying more in punitive tariffs, not less, and that is a shame.

I come from the labour movement. If I were at the bargaining table and negotiated away a huge settlement for the members who I represented, I do not think I would be representing them much longer. In fact, I am sure they would be calling for my demise.

I have to wonder, as many of my constituents do, what was the rush to settle in this way. When we were so close to winning and we knew it, why would we negotiate that settlement away? I know we all wanted to see an end to this trade dispute, but after so many years of stalling by the Liberals, with no negotiations, nothing going on, why would the Conservatives sell Canada out so quickly? Surely they must have known that we were about to win the final victory. It really shows an incredible lack of foresight on their part.

The deal discourages value added production in Canada. The export taxes are based on the value of the exported product. This is why so many forestry workers in my riding and across the country do not support the deal. They see the end of their jobs and their communities and they are very concerned. It is no wonder that in my riding, and probably in other ridings where there are forest dependent communities, we are seeing a massive increase in the export of raw logs and jobs.

Hundreds of thousands of cubic metres of logs are exported every day out of the north island. This means the end of jobs and the closure of mills. Communities are suffering as a result of this. It is a travesty, to say the least, that the communities, which are surrounded by forest, do not see any of the jobs related to them except the cutting down of trees. We support those jobs. Those people also understand and support the workers from the mills who are losing their jobs. Therefore, it is not a question of one worker pitted against the other. Most workers understand what is going on. I know the people who work in the bush and cut down the trees, the fellers, are very supportive of the mill workers and would love to see the communities thrive and grow.

I will talk a little about some of the small communities that I represent in Vancouver Island North, forestry communities that are struggling to make ends meet after their sawmills have closed because there is no value added. Also fishing communities are struggling with unemployment because they cannot get enough fish to keep their processing plants going. It is the same scenario in another industry.

These were once thriving communities. They are surrounded by oceans and forests, yet the bounty of these resource is heading south out of the country across the border to the U.S. or other parts of the world to be processed. This represents the loss of jobs and communities at a devastating level. It does not seem that there is any commitment on the part of the government to maintain these value added jobs in our communities any more.

The impact that it has on the people in those communities is devastating. They are in crisis. Their homes are devalued. They cannot afford to move, but they cannot afford to stay either, especially if they have children and the schools and the hospitals close. There are no services left and all the other businesses leave as well, and they become ghost towns.

To add insult to injury, because it is such a beautiful area and it is surrounded by the forests and the oceans, when homes sell in a lot of those little towns, at a very low price I might add, they are usually to wealthy Americans, looking for a cheap vacation home. It is a slap in the face to those workers, unfortunately.

It is not that we are against the U.S. and it is not that we are against trade. We want to stand up for Canadians, for our communities and for Canadian jobs. I thought it was our job, as members of Parliament, to stand up for our communities and to make good public policy that respects our resources, our jobs and our communities. I thought that is why we came here. Therefore, I am glad to speak on this ill-advised bill and hopefully convince members in all parties to stand with us and oppose this very bad deal.

I want to talk specifically about one industry that is struggling, a very small value added flooring industry in my community, in the Comox Valley. It is an environmentally sustainable industry. It goes out to get waste wood out of the forest after the logging companies have been there. Whatever is left on the forest floor, whether it is alder, cedar, maple and fir, it makes flooring out of it. It is a fabulous little business. It is doing so well, employing a few people in the valley. Unfortunately, it has been hit with high tariffs on the value added. It is losing over $300,000 a year. For a small business, that is devastating.

The owner is wondering now how he can survive. He cannot set his prices with any certainty because he does not know what the cost will be in the future, and his market is mainly the U.S. He is really struggling with this. It is for him also that I speak, and other businesses. He is just one voice, but I know he has been representing others in opposing this deal. Not only forestry workers are suffering under this very bad deal, but small manufacturing is as well.

All the forestry workers and small lumber companies wanting to have their say are never going to be heard now. There were going to be hearings. The international trade committee had agreed to have hearings across the country. We were looking forward to having a hearing in Vancouver. Many of the companies and workers from my area were going to be witnesses. They wanted to tell the committee and all parties about how they would be impacted by the deal. However, those voices are never going to be heard because the hearings were shut down.

Unfortunately, another piece of our democracy has been taken away from us because we will not hear those voices. It is another tragedy. They want to tell their stories. They are really concerned about what is happening with the country, not only with the resource but with the our communities as well. I think it would have been valuable for all members of the House to have heard the impacts of this very bad deal at the ground level where people live. That is the most important thing that we can do in the House.

Again, I thank my colleague, the hon. member for Burnaby—New Westminster, for his great work on the committee. He has done an exemplary job.

I would like all members in the House to pay attention to what is going on in small communities across the country. The resource industries are the backbone of our country and it is time we respected them.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:20 p.m.

Liberal

Lloyd St. Amand Liberal Brant, ON

Mr. Speaker, the member opposite made a compelling speech on what she terms the ill-advised bill. I have come to know the member opposite relatively well. I am honoured to serve with her on the natural resources committee. I have certainly come to understand how sensitive she is to the needs of her community and how, in a macro way, she understands issues facing Canadians.

She has described the bill as ill-advised. Could she comment on what she would like to see done to remedy or fix the ill-advised motion before the House?

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:20 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, there are many things that can be done, the first of which is for the House defeat this ill-advised bill. Once that is done, members can use their wins at every level, especially the final win, which said that Canada was owed every penny of the $5 billion plus taken in illegal tariffs over the many years that this dispute lingered. That money should come back to Canada. The government would then be in a very good start and end position to ensure that our industry would get the money back so it could re-tool some mills to ensure we could do the value added here.

There is probably more we can do with regard to our natural resource forestry policy, which would see us maintain our forests for the benefits of Canadians. That is not to say we want to stop trade, but we want to ensure the trade is done in the interests of Canadian communities, industry and jobs.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:20 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I was very intrigued by the comments of my colleague, the hon. member for Vancouver Island North. Similar to my riding, the ability to attract investment, create an entrepreneurial spirit and add value to wood products is a struggle each and every day. She talked about examples of value added companies, the manufacturers that were able to get on their feet and put people to work.

Could she comment on what kind of message is being sent to small and medium size businesses that are struggling to make a go of it in rural parts of British Columbia and elsewhere in the country? What signal is sent by the government, without even allowing the possibility of hearings or any testimony to come from those communities and businesses, when it passes such fundamentally atrocious legislation as this one?

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:20 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, I know the member for Skeena—Bulkley Valley lives in an area similar to mine and he has many of the same issues. His riding is also surrounded by forest, water and beautiful scenery. I know he understands very well what the impacts are on industry and workers in his community.

The message the government sends to individuals, workers, communities and small business is that it really does not care what anyone thinks. Unfortunately, we will not hear their voices. They were shut out of the hearings and coming to the committee. This very bad deal, which will affect them in such an adverse way, basically tells them that they do not matter in society. To me, that is absolutely the wrong way to go.

It is time we stood up for our industry in Canada. Small business is the backbone of our country and we need to recognize that. We need to support it and ensure that the value added sector is able to thrive. We do not need to put restrictions on its ability to trade and get its product out. It is ludicrous. We want to ensure that the industry can do business, employ people and keep our communities going.

I thank the member for Skeena—Bulkley Valley for interest and commitment to his community.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Government Orders

November 22nd, 2006 / 4:25 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, while it is a pleasure to join in this debate, it is a sincere displeasure to have to again rail against a government's misguided, arbitrary and bullheaded position on the softwood lumber file.

For many years the region and communities that I represent have sought certainty, resolution, and some level of justice when dealing with the unfair illegal tariffs that our American neighbours were slapping on our value added products. For years communities sought some sort of support. The businesses and industries sought some measure of effort and strength from the federal government to say to them that they matter, that the communities in our country that produce the wood products that are used throughout our country and around our world matter enough for the government to fight.

Lo and behold, there was an election last winter and a government came forward with a new mandate. Unfortunately, it used the same minister that was bungling the file before and it produced a deal that was flawed completely. It is so flawed in fact that mill managers in my communities, people who are deeply invested in this industry, who have their own personal money invested as mill owners are turning to me and scratching their heads, and wondering for what possible purpose the federal Government of Canada sold them down the river.

They asked me whether there was some kind of horse trade that went on between Ottawa and Washington to arrive at such a deeply flawed deal. Challenge after challenge and finally we arrived at the international court in the United States, the last place of refuge for the scoundrels in the United States who were perpetrating this trade fraud upon Canada. When we arrived at a decision that was favourable and every single dollar collected illegally from Canada was to be returned to Canada, Canada caved, completely rolled over, and asked the Americans to beat us again.

This time it was wood. The next time it might be cattle, fruit or some sort of product that will affect another part of this country. I can only wonder what will happen to those members in this place who represent communities that are trying to survive and trying to make it in the international competitive market. When their time comes calling, the Americans will go after their products when a very narrow interest and lobby group, and a few members of congress will get together and decide to target the next product out of Canada because they had so much success and fun going after softwood. They were able to beat us so soundly that even though we won in the courts, we were willing to throw the whole deal away at the last minute for some narrow interest, some narrow political victory that the government of the day was seeking.

The government came into office and said it was going to strike new relations with the United States. I almost wish back for the bad relations because if the new relations produce deals that hurt the communities that I represent like this one does, I worry for the future.

I will speak specifically of those communities because a lot of members listening to this debate and citizens watching it on television have a hard time contextualizing this. Who are we talking about? What kind of communities are we talking about? We are talking about Prince Rupert, Terrace, Skidegate, Queen Charlotte Islands, and communities right across our country. These communities have, in their very DNA, the hewing of wood and hauling of water. These are communities that were formed on the principle that they can make an honest buck, that people can go out into the woods, knock down trees, mill them, and send them to a market that will be appreciative and pay an honest dollar for them. These are communities right across my region.

My region is over 300,000 square kilometres, the most beautiful area in the most beautiful country in the world. In these communities we rely on our ability to use the natural resources we are endowed with and sell them on fair terms to the marketplace. Under the NAFTA, something we negotiated our energy away in order to have, we were meant to have the ability to go and freely, and fairly, trade with our partners to the south.

Lo and behold, when the deal did not work for some in the United States, they threw up tariffs and our government somehow caved. It caved to the point where we self-imposed a tariff that we know was illegal. We will impose a tariff on our own products that we know is wrong and impact the communities that have added value to this wood, and have struggled over the years to maintain those jobs.

Through ups and downs, thick and thin, they have been able to keep those jobs going, paying into the coffers that pay the salaries of members in this place, that pay for the functioning of the government, and pay for the health care services and education that we all rely on.

When those people needed the government to stand up for them, it could not be found. It was so busy running around K Street in Washington hoping to make nice with the Bush government. It did not for a moment stop to think about the economic future of the communities that I and other members in this place represent, and for the economic future of our country.

It is in the DNA of the people who I represent and we must consider the forests, the trees and the endowment with which we are privileged to be blessed. The first nations communities, for millennia, have relied upon these resources to sustain our communities. When the white settlers first showed up, it was one of the first things we did. We opened up these small lumber mills and soon the industries grew in sophistication and size, but were always based upon our ability to access a market.

These are hard-working people. They are honest people. They get up every day, go to work and bring their lunch pails. I was curious in my first term here in this place to find out how much in fact we contributed to the federal coffers, how much in fact we contributed just in economic terms to the health and well-being of this nation.

I asked the Library of Parliament researchers to do a little study for me. It turned out to be a long study, three months. I have boxes piled high in my office. I asked them to calculate, estimate as best they could, how much money was sent out of my region, out of Skeena—Bulkley Valley, into the federal coffers and then how much was returned in payments and services from the federal government.

After three months of study the researchers came back to me and said the very best guess they could make over the last 10 years was that there has been a 10 to 1 ratio every single year. For every $10 our community sent out, $1 came back in services. One would think we would be complaining about it, but these are honest hard-working Canadians who do not even mind a little bit. That is fair. We have the privilege of living in one of the greatest countries in the world and one of the best regions in which to live. That is well and good.

However, here we are working hard contributing $10 for every $1 that comes back. Money was sent from the good people of Skeena—Bulkley Valley to help pay for the negotiators, help pay for the lawyers, and the members of Parliament and cabinet minister who sit in the government to go out and fight on our behalf. What did they come back with? A complete and total failure.

They came back with the idea that we are going to leave $1 billion on the table, half of which is going to get used by the very lobbyists who launched this case in the first place to fight against us again another day. There was over $450 million left for that sole purpose, and another $500 million in change left over for Mr. Bush to fight another election.

The economic base of my communities are absolutely ensconced in this sector. The forestry sector provides over $120 million as an easy estimate annually to our region. The government response to the shutting down of mills, to the loss of jobs, and to the exodus of our young people across my region has been what? It has been to freeze the funds of Western Economic Diversification, to not allow any of that funding to go out that allows the communities to actually diversify their economies, to not in fact deliver on any of the pine beetle money because we have also had this near perfect storm created, an absolutely devastating infestation which according to the Forestry Council of Canada has been caused by global warming which the government refuses to address.

We have had a provincial government hell bent on providing as much raw log exports as is humanely possible and then ramping it up every year beyond that thereby eliminating any real incentive to add value to the wood products that we have in our communities. Add this to a promise made by the government to deliver more than $400 million in economic development money to compensate for what has happened with the pine beetle, which has not shown up, but in fact has been reduced by $12 million for some absolutely ludicrous reason.

The perfect storm has been created for my communities, a storm in which it is absolutely of no value or purpose for anyone to enter into our communities, to bring the investment dollars, and to create those industries, small, medium and large to add value to the wood products with which we are endowed.

I worry deeply for my communities and I worry deeply for the future that it holds. When I speak to high schools and colleges and I look upon the young people and talk about what their future means in our region, there is not a lot of hope.

I stood in front of a class in Hazelton, B.C., which has lost all three of its mills. I asked for a show of hands among the hundred students as to how many were planning to stay, live and work in the community of Hazelton. A single hand went up amongst the 100 students. The government response to this growing tragedy in my region has been silence and a sellout deal. It must be rejected.