Mr. Speaker, I see that the NDP members are patting themselves on the back in their mutual admiration society down there, but some of the propaganda they put forward I think is reprehensible.
They claim that only 50% of the companies actually support this agreement when in fact we know more than 90% of the industry supports the agreement and signed on to the deal.
They claim that the recent ruling on October 13 of the Court of International Trade in the United States would have brought back all the money, as if that were the last court ruling there would have been. Those members ought to know how many court rulings, filings and counter-filings there have been on this file.
It is misleading to the public to suggest that this would not have been appealed. We know that the U.S. industry said it immediately would have appealed that decision and thus tied us up for several more years of punishing duties. This government has taken action.
I also think it is reprehensible for the member to imply that these 4,000 lost jobs are the responsibility of this government. I was elected in the year 2000. The former softwood lumber agreement expired in 2001. It was the previous administration that sat on this for so many years that it resulted in punishing job losses in my riding, as well as the member's, and in other coastal communities and indeed across Canada, while the previous government dithered and failed to take action.
This government, as soon as we took office, did take action. We took action quickly. We made it a priority. The Prime Minister immediately appointed the new ambassador to the United States, Michael Wilson, as our representative, and we made this a high priority file. It got high level meetings, including that between the Prime Minister and the president of the United States, and that got things moving, with teams mobilized on both sides of the border to resolve this issue.
The result of that agreement is that on July 1 we initialed a legal text. By September 12, the Minister of International Trade and U.S. trade representative Susan Schwab had signed an agreement. On September 18, a notice of ways and means was tabled in this House which we are still debating today, with amendments, as we move forward in this process.
The highlights of the agreement include: the revocation of the punishing U.S. countervailing and anti-dumping duties; the return of over $4.4 billion in duties collected by the U.S. since 2002; the safeguarding of the provinces' ability to manage their forest resources; a provision ensuring that revenues from the border measures will stay in Canada; and a range of initiatives to enhance binational cooperation and the development of the North American lumber industry.
By October 30, the first cheques were already going back to our cash-strapped industry, with $950 million being returned to Canadian forestry companies, about half of that to our British Columbia companies, including coastal companies that have been suffering very much as a consequence of those punishing duties.
I want to address an issue that is a big concern for coastal communities, particularly in my riding, and that is the issue of log exports. It is an issue of great concern to coastal communities, particularly on Vancouver Island, and particularly the two central ridings of Nanaimo—Alberni, my own, and the one south of us, Nanaimo—Cowichan.
I am glad to say that there is a review team looking at this issue of log exports. It involves a couple of high profile people with extensive experience. Bill Dumont is the former chief forester at Western Forest Products, a man well respected in the industry, and Don Wright is a former deputy forests minister who is also very well respected in the industry. Mr. Dumont is a Vancouver Island resident with 35 years of forestry experience who served as chief forester for Western Forest Products, where he earned a reputation for sustainable forest management, consultation, and working with first nations, and he is an award winner.
I am glad to say that consultations are under way. I am looking forward to action being taken. We have the possibility, through clause 17 in this bill, of dealing with the log export issue. There is room to deal with this issue. I want to take a moment to explain why the log issue is of concern to mid-Island areas.
As members know in regard to the private lands issue, when we are talking about log exports we have public lands and private lands. About 5.7% of the B.C. land mass is private forest lands, but more than half of that is actually on Vancouver Island, and most of it is in two ridings right in the central Island area. That is because of something that goes all the way back to Confederation: the E & N land grants. More than 139 years ago, that land was committed to building a railroad and the resources attached to it were given to the railroad company. Because of that, we have extraordinarily large masses of terrain that are private lands at present.
I am disappointed that, following the collapse of the agreement of 2001, neither the federal nor the provincial government had the courage to deal with the log export issue. The federal government was responsible for private lands and the provincial government was responsible for public lands. Neither government, the former Liberal government or the newly elected provincial government, had the courage to deal with the log export issue, which had the consequence of having a tariff wall on our finished log softwood lumber products while our logs were being exported without any restriction at all at that time.
It seems to me that a tariff should have been imposed while that dispute was under way. That did not happen. As a consequence, we saw a huge increase in coastal log exports during the time of this dispute.
Tremendous realignment has also been taking place in the forest industry and that is affecting the log export issue. Forest giant Weyerhaeuser conveniently owned mills on both sides of the border. It is a huge company with about $16 billion in assets and is bigger than our four largest forest companies combined. Before Weyerhaeuser sold to a Canadian company called Brascan, it managed to get another large chunk of land near Port Alberni released from public lands into the private sector.
The consequences, particularly for the community mid-Island around Port Alberni, have been rather devastating, in that the large amount of private land creates a situation that allows logs to be exported. The logs are vulnerable to export, particularly from this mid-Island area.
Immediately after Weyerhaeuser sold to Brascan, the company divided into two, separating the lands from the mills. At the same time, one of the largest mills in the Port Alberni area, Island Phoenix Division, happened to be moved to the land sector, Island Timberlands. Almost immediately that mill was dismantled, with the loss of about 300 jobs. Conveniently, that particular site is now available for log exports. That is a concern to people in the mid-Island area. Of concern to all of the workers is the tremendous movement toward facilitating log exports. The mill portion of Cascadia was very soon sold to the Western Forest Products division, which now controls about nine of the remaining coastal mills, and Island Timberlands is simply a land manager that can export those logs according to existing rules.
I am concerned that the existing situation has resulted in a tremendous increase in log exports. Log exports have doubled since 2001. Since 1996, the amount of coastal forest wood being exported as raw logs has increased about 10 times.
I want to say that this agreement in general has been very good for Canada. To end the impasse, the government took action on a very complicated file. Billions of dollars are coming back to our entire Canadian industry, including the coastal forest industry.
Clause 17 of the agreement allows us to take action through the governor in council. We are looking at that right now with the province and the review team to deal with this coastal log export issue. I am hopeful that we will see action. I have been discussing this issue with the Minister of International Trade and the Minister of Natural Resources. I know they are discussing it, as I have with the provincial minister, Rich Coleman, the minister of forests.
I am hopeful about the report tabled by these very capable forest experts from British Columbia on the issue of coastal log exports. There have been discussions and consultations going on over the past year. I know that they have heard from the community and I know the community is very upset.
In particular, people at Port Alberni have been counting the logging trucks coming out of there while the mills have been shut down, impaired or working at partial capacity. Even during the recent salmon festival, a ship pulled into the port to load logs for South Korea to be milled there while we have mills working at less than capacity right there in Port Alberni.
We are concerned about the impact of these coastal log exports. The agreement is a good agreement for Canada. We are going to move ahead, but the sidebar issue here on the coastal log exports is one that I hope we will be able to address through the provisions of clause 17. I hope we will see some action to help keep those logs get processed in Canada and on Vancouver Island and to help keep as many jobs as possible right here at home.