Bill C-574 (Historical)

An Act to amend the Department of Public Works and Government Services Act (use of wood)

This enactment amends the Department of Public Works and Government Services Act to require the Minister, before soliciting bids, to give preference to the concept that promotes the use of wood while taking into account the factors of cost and greenhouse gas emissions.

Department of Public Works and Government Services Act

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Madam Speaker, the Bloc Québécois is obviously in favour of Bill S‑222. In fact, I feel like saying “finally”, even though the bill may not go far enough.

The Bloc Québécois has long been committed to promoting the forestry sector and the ecological value of forestry products. We have long proposed that the federal government use its procurement policy to support the forestry sector. Since memories tend to fade, I will take the liberty of sharing the history of our commitment to this issue.

In March 2010, during the 3rd session of the 40th Parliament, elected representatives in the House debated a bill proposed by the Bloc Québécois, Bill C‑429, which was sponsored by Manicouagan MP Gérard Asselin. The text of this bill was very similar to that of Bill S‑222, which is the subject of the current debate. At that time, the Bloc Québécois was already proposing to amend the Department of Public Works and Government Services Act to encourage construction projects involving greater use of wood products.

Unfortunately, neither the then-Conservative government nor the NDP official opposition supported the Bloc's solution, which was something the industry had asked for. In February of 2014, during the 2nd session of the 41st Parliament, we proposed the same solution again with Bill C‑574 from the member for Jonquière—Alma, Claude Patry. Again, the Conservatives voted against our bill, along with a good number of New Democrats.

In September 2020, the Bloc Québécois presented its green recovery plan focused on Quebec's regions, the result of extensive consultations held across the province. It offered concrete solutions to fight against COVID‑19 and to get the economy going again, including through investments in sustainable forests.

In October 2020, thanks to the initiative of my colleague from Jonquière, the natural resources critic for the Bloc Québécois, the House of Commons Standing Committee on Natural Resources undertook a study on the forestry sector. The committee recommended that the government renew its support for the sector and develop a value chain for that industry by creating new market opportunities. It also recommended that the government create a public procurement policy to encourage buying and using low-carbon products, including wood products, by including carbon footprint as one of the criteria for the awarding of contracts.

That is a good idea. It seems timely to me because with climate change and the natural disasters that are on the rise and intensifying, I cannot believe that anyone still doubts the need to act with rigour and vigour. Incidentally, in parallel to Bill S‑222, which specifically focuses on the use of wood in construction, we should also consider the government's broader green procurement policy.

Let us come back to the genesis of this. In April 2021, the Bloc Québécois organized in Trois‑Rivières a forum on forests and climate change.

This event allowed partners from the college and university research community, people from industry, community and politics to discuss a key issue to Quebec's socio-economic development, the forest bioeconomy.

During the 2021 campaign, the Bloc Québécois proposed a plan to maximize the potential of Quebec's forests whose goal was local transformation, technological innovations development and increased productivity in a labour shortage context. The Bloc Québécois's plan also sought to reduce Quebec's vulnerability to trade agreements. We have certainly had a taste of that. It also seeks to alleviate pressure on primary resources by increasing job diversity, including through transformation. It also focuses on developing exportable green technologies. That is the constructive and positive work of the Bloc Québécois.

We have been asking for years for Quebec's forestry sector to get its rightful share of federal investments. People are not fooled. Everybody knows that, historically, the federal government has prioritized the auto sector in Ontario and the oil and gas industry in western Canada over Quebec's wood. Federal support should, among other things, be subject to a public procurement policy that encourages the use of wood products. The use of wood products in the construction sector is on the rise, and its contribution to the fight against climate change is well established and recognized. To choose wood as a building material is to choose a product that is locally sourced, sustainable and renewable. A life-cycle analysis of wood shows that it has a very good environmental performance.

Continuing its historic commitment, the Bloc Québécois has made a concrete contribution in recent years by presenting the federal government with detailed proposed actions that would support the forestry sector.

The Bloc Québécois idea is simple: The more a company pollutes, the less public money it receives and, the less a company pollutes, the more government support it receives. The Bloc Québécois is out there in the trenches, so it is always up to date on the major issues and the direction Quebec industry wants to move in. Everyone welcomes this option with open arms.

Incidentally, in its green recovery plan, the Bloc Québécois proposed establishing the carbon footprint variable as a criterion for awarding contracts and purchasing in government procurement policies. In short, with figures to back it up, Quebec is counting on the forestry sector to support regional economies and contribute to the fight against climate change. For years, the Bloc Québécois has been demanding that the federal government give Quebeckers their fair share of public assistance.

It is important to note that Quebec is definitely not lagging behind other provinces in that regard. On the contrary, it is a pioneer of best practices in the use of wood products. Quebec's policy of using wood as a building material is built upon five forward-looking principles: promoting Quebec's economic development, contributing to the fight against climate change, ensuring the safety and well-being of occupants, focusing on learning, and promoting the multiple uses of wood.

Unfortunately, the interests of the Canadian oil state all too often take precedence over those of the Quebec forest state. Here are a few numbers. From 2017 to 2020, tens of billions of dollars were given to the country's most polluting sector. Over the same period, the entire forestry sector in Canada received only $952 million, nearly 75% of which are repayable contributions. Quebec's share, assuming that it gets 22.5% of that amount, is a paltry $71 million per year. Let me remind the House that forestry is the economic sector that is best positioned to reduce greenhouse gas emissions and capture carbon already in the atmosphere. It also has a lot of potential in terms of jobs, economic growth and innovation.

It is high time we pull our heads out of the sand and start to urgently address the state of the planet. This partisan foot-dragging on both sides of the House has, over the years, contributed to disadvantaging Quebec's forestry industry, as well as the industry's direct and indirect economic players. Waiting in vain for Canada to understand what works in Quebec is costly, both in terms of the economy and the environment. Clearly, the energy transition, forestry, fisheries, aerospace, agriculture, tourism and culture are all working, but we are not moving as fast as we should. Canada is not keeping up. Canada is a pro-oil state and that is becoming less and less acceptable to Quebeckers. It will be wonderful to regain our self-determination so we can choose the cutting-edge supports for and direction of Quebec's industries to ensure that they are sustainably developed.

We must immediately make every effort to tackle climate change since we are already behind. For some, this will start with acknowledging it. Others, who are more forward looking and have already started, need our support. It is our duty to act and support our forestry industries for our children and our future.

[Luc Desilets, Bloc, Rivière-des-Mille-Îles, QC]

Madam Speaker, on this Valentine's Day, I would like to celebrate a little event. My precious daughter, Sarah, who already has one son with my son-in-law, Simon, is pregnant. I just found out it is a girl, and I am so happy. Congratulations to them. They are an amazing couple.

Also, on this Valentine's Day, as I am destined not to spend my evening in better company, I will declare my love for forests, a priceless resource for all Quebeckers and Canadians to enjoy and benefit from.

The title of Bill S‑222 is an act to amend the Department of Public Works and Government Services Act. This bill is about the use of wood, and it is sponsored by former senator Diane F. Griffin of PEI. It went through first reading in the Senate on November 24, 2021, and is now at second reading in the House. It amends section 7 of the Department of Public Works and Government Services Act by adding the following after subsection 1:

In developing requirements with respect to the construction, maintenance and repair of public works, federal real property and federal immovables, the Minister shall consider any potential reduction in greenhouse gas emissions and any other environmental benefits and may allow the use of wood or any other thing — including a material, product or sustainable resource — that achieves such benefits.

In short, Bill S-222 encourages the federal government to support the forestry industry in reducing its carbon footprint. As a tireless advocate for the Quebec forestry industry, the Bloc Québécois will obviously be voting in favour of this bill.

In fact, the Bloc Québécois has proposed similar legislative measures in the past, although ours may have had more teeth. That was the case in 2010 with Bill C-429, sponsored by the former member for Manicouagan, Gérard Asselin. It was also the case in 2014 with Bill C-574, which was introduced by the member for Jonquière—Alma, Claude Patry. Unfortunately, each time, the Conservatives and the NDP voted down these bills.

If Quebec were a country—it is a nation, but a country in the making—our 900,000 square kilometres of forest would rank us sixth in the world in terms of total forested area. Economically, Quebec's forests represent 57,000 jobs, $12 billion in exports and a contribution of $6 billion per year to Quebec's GDP. Underestimating this wealth would obviously be a huge mistake.

With the decline of pulp and paper, modernizing the wood industry is obviously important and it is becoming increasingly so. The federal government has a huge opportunity right now to contribute to the revitalization of secondary and tertiary processing sectors in so-called weakened communities.

By secondary and tertiary processing, I am referring in particular to woodworking products and mass timber construction. Some of the world's leaders in the design and manufacture of wood buildings are located in Quebec. Chantiers Chibougamau and its Nordic Structures division come to mind. Although these businesses still do work in Quebec and Canada, their order books are largely filled by U.S. customers.

The Canadian government must stop dragging its feet. It needs to start encouraging the wood building industry in residential construction here.

On another note, I would remind the House that the Intergovernmental Panel on Climate Change, or IPCC, has recommended increasing the use of wood in non-residential construction in order to reduce greenhouse gas emissions and help fight climate change.

Wood products can easily replace synthetic materials from the petrochemical industry that have a huge carbon footprint. Transforming wood is a more energy-efficient process that lowers emissions by one tonne of carbon dioxide per cubic metre of wood.

Once processed, wood remains a living material. On average, every single cubic metre of wood captures an additional tonne of carbon dioxide. For example, a building constructed using 80 cubic metres of wood can store 80 tonnes of carbon dioxide during its lifetime, which is equivalent to the emissions released by driving a car for a decade. Imagine the savings for an entire building stock.

The forestry sector is probably the industry that is best positioned to reduce greenhouse gas emissions and capture carbon already in the atmosphere. Meanwhile, between 2017 and 2020, Canada's oil and gas sector received $23 billion in taxpayer subsidies. For the same period, Canada's forestry sector received only $952 million. I would also like to point out that, at their last convention, the Liberals rejected a resolution calling for an end to public funding for fossil fuels. That is pretty weak.

Luckily, the Bloc Québécois will continue to fight for a dynamic forestry sector that focuses on preserving biodiversity, encourages innovation and diversification, and generates wealth.

In this regard, I would like to congratulate my friends and colleagues from Jonquière and Lac-Saint-Jean for their exemplary work on this file. Since 2019, they have undertaken numerous initiatives to bring together all the stakeholders and propose meaningful solutions.

In 2021, the Bloc Québécois developed a four-part road map to maximize forests' potential. First, the federal government could “implement a public procurement policy that would encourage the use of wood products, including establishing the carbon footprint as a criterion for awarding contracts”.

Second, the Bloc Québécois recommends “increasing budgets for basic research and to develop a value chain for the secondary and tertiary transformation of forest resources”.

Third, we suggest protecting exports of lumber from Quebec to the United States, our principal trading partner.

Fourth, we want to find ways to boost productivity tied to annual growth.

That is why my colleagues and I will vote in favour of Bill S‑222.

On this day, February 14, my wish is for the government to show the forestry sector a little love, to help keep jobs in our regions and to fight climate change. It has to stop ignoring that and instead be part of the solution.

Happy St. Valentine's day to everyone.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Madam Speaker,

[Member spoke in Cree]

[English]

I am very proud to be here to support this bill, Bill C-354, which is sponsored by the member for South Okanagan—West Kootenay. It is an act to amend the Department of Public Works and Government Services Act and the use of wood. This bill would amend the Department of Public Works and Government Services Act to require that, in the awarding of certain contracts, preference be given to projects that promote the use of wood.

The purpose of the bill is to give preference to projects to promote the use of wood when awarding contracts for federal construction, maintenance, or repair projects, while taking into account the associated costs and reductions in greenhouse gas emissions. The amendments to the bill align with the government's stated principles for procurement process and ensure compliance with Canada's free trade agreement. The amendments ask that the minister consider the reduction of greenhouse gas emissions that may allow the use of wood or any other suitable material, product, or resource to achieve this benefit.

Two similar iterations of this bill have been previously defeated in the House. Bill C-429, introduced by Bloc Québécois in 2010, was defeated at report stage on December 15, 2010, and Bill C-574, introduced by Bloc Québécois MP Claude Patry in 2014, was defeated at second reading on December 3, 2014.

I am proud that our government has the following frameworks, policies, and programs in place that will promote sustainable construction, including significant investments to strategically support the forestry sector.

One of those is the forest bioeconomy framework. In September 2017, the Canadian Council of Forest Ministers launched the framework to make Canada a global leader in the use of forest biomass for advanced bioproducts and innovative solutions. The framework focuses on creating green jobs, enhancing supply and demand, and supporting innovation in the forestry sector.

We have also put forward the green construction through wood, GCWood, program. In September 2017, the government announced the GCWood program to encourage greater use of wood in construction projects in Canada. We want to catalyze a broader awareness of, and domestic capacity for, innovative tall wood buildings, timber bridges, and low-rise commercial wood buildings. Building with wood offers many benefits, including GHG emission reductions and opportunities for greater economic growth.

Another program that our government has put forward is the assistance package for the forest industry. In June 2017, the government announced its continued support for the softwood lumber industry in the form of an $867-million assistance package for the forestry industry, workers, and communities impacted by recent tariffs imposed unfairly by the United States.

We also put forward the pan-Canadian framework on clean growth and climate change. This framework, adopted in 2016, is a comprehensive plan to reduce emissions across all sectors of the economy, accelerate clean economic growth, and build resilience to the impacts of climate change, which I know all of us here in the House believe in.

The framework's actions, supported by announcements in budget 2017, would enable Canada to meet or even exceed its target to reduce emissions by 30% below 2005 levels by 2030. This is important for our children, especially my children. Under the framework, our government has committed to reducing greenhouse gas emissions from federal government buildings and fleets by 40% below 2005 levels by 2030.

These actions include collaboration among federal, provincial, and territorial governments to encourage the increased use of wood products in construction, including through updated building codes. Natural Resources Canada received $39.8 million over four years through budget 2017 to support projects and activities that increase the use of wood as a greener substitute material in infrastructure projects, to promote the use of wood in construction, and to create new markets for sustainable Canadian products.

We have also been leaders on this side of the House, compared to a former government, to put in place tools to assess environmental impacts. We have committed to assessing the environmental impacts of construction projects. Public Services and Procurement Canada is committed to the use of industry-recognized assessment tools for high environmental performance. These tools would help the department make informed decisions to estimate the environmental impact of construction materials and their use in building projects.

Any amendment made to the Department of Public Works and Government Services Act must be made in accordance with Canada's free trade agreements and abide by the government's procurement principles of fairness, openness, transparency, competition, and integrity.

We have heard there are people who are afraid this may cost jobs. While I agree that sometimes we may fear the future when change happens, what I saw when I used to live in Quebec City was beautiful projects that actually increased the number of jobs in the forestry industry. For instance, in Neufchâtel, a neighbourhood where I lived in Quebec City when I was serving in the Canadian Armed Forces, a soccer complex was built for young people and adults. This complex was entirely built of wood, a gigantic structure with gigantic beams, which were very thick and very solid. Some said that we should not build with wood, but incredibly enough, the mayor of Quebec City, Régis Labeaume, showed leadership. Quebec City even built its new coliseum, or what some have sometimes called the “ice cube”, using an awful lot of wood.

This is a Canadian product and it is something we have a lot of here in Canada. It allows us to create more jobs, because construction projects can perhaps be cheaper and so more people can build homes or large-scale structures that will be as structurally sound as any we might find made of steel or concrete.

I had the opportunity of attending the committee for government public works and listening to testimony surrounding this bill. I was surprised to hear support coming not only from people in the forestry industry but also in the engineering trades. People said that we can use this material and demonstrate in Canada that we can build with our wood and then perhaps create markets overseas to show the building codes are just as strong.

We can make sure we build jobs here in our country. It is important to build jobs in many of the rural areas where the forestry products, the primary resources, are found, because there are also indigenous people who would like to work. If we can use more of these resources in a sustainable manner, use things that are renewable, it will be better for Mother Nature, the earth, and all of us and our children in the long term.

I am very proud to be here to offer my support to the member for South Okanagan—West Kootenay for his bill and his leadership on this issue. I am very proud of the work that goes on in Winnipeg and Manitoba in support of the forestry industry. I know all my colleagues from Manitoba are also very supportive of the forestry industry.

Tapwe akwa khitwam hi hi.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, this is not the first time that I have been able to speak to this legislation. As a former parliamentary secretary for natural resources for six years, I saw a couple of different versions of it. It came out in 2010 as Bill C-429, which was written a bit differently, and then in the last Parliament, in 2014, as Bill C-574. The bills might have had some different text, but the approach was the same as the Bill C-354 that is before us today.

The bill calls on the government to amend section 7 of the Department of Public Works and Government Services Act by highlighting the use of wood. It talks about the following:

In awarding contracts for the construction, maintenance or repair of public works, federal real property or federal immovables, the Minister shall give preference to projects that promote the use of wood, taking into account the associated costs and reductions in greenhouse gas emissions.

I am not sure that the wood industry needs this type of protection and government involvement. As a parliamentary secretary in the past, I saw the strength of the wood industry across Canada. I had an opportunity to go to forest products innovations, FPInnovations, in Vancouver. It has three centres across the country that work on promoting wood. It is a multi-partnership project. The government and private industry worked together to set up a non-profit company so it could study wood and wood manufacturing, new technologies, and the creation of new products. It has certainly been a successful non-partisan project, with both working together.

It is interesting to note the size of the wood industry. I read that the U.S. non-residential market was worth $289 billion in 2010. That is a phenomenal number. In Canada, the industry has been valued at $29 billion. Those are big amounts of money being spent on wood construction in North America, and that is non-residential.

I should touch on the fact that early in our government, we were able to make a softwood lumber agreement that was acceptable across this country. That agreement was extended in 2015 and went to the end of 2015. It brought peace to that industry for a number of years. Canadian companies had the opportunity to go not only around the world with their products, but particularly into the United States. Canada has had access to the U.S. market for so long that it is unfortunate the Liberal government has failed to be able to bring a softwood lumber agreement forward. That has had an impact on the Canadian marketplace, and that will continue.

The Liberal government is talking about sending this legislation to committee, but we are certainly not dealing with some of the bigger issues, the bigger failures, that the government has faced in dealing with this subject.

A number of flaws are created by supporting this legislation. As soon as government picks one industry or one person or one entity over others, there are imbalances and challenges right away, in a number of places in the system.

I would like to point out that picking one product in order to highlight it for construction across Canada certainly, in our opinion, contravenes Canada's legal obligations under a number of provisions in international and domestic trade agreements. Those agreements typically prohibit any kind of discriminatory, unnecessary barriers to trade, and any legislation that then begins to highlight and amend that process will be challenged basically immediately.

With respect to contract tendering requirements, we built provisions into the tendering process so that one type of product could not be highlighted or favoured over others. It is obvious that if that were to happen, other industries, such as steel and concrete, are going to question what is going on when their products are set aside while the government tends to favour a competitive product.

It also would contravene domestic agreements, for example, the agreement on internal trade, if we start talking about government tendering being affected by the use of particular products. That agreement actually prohibits the introduction of any kind of a bias in the form of technological specifications in favour of particular goods or services, unless there is some need in terms of safety or those kinds of things, for that to be there.

We do not believe that Bill C-354 is going to be a good bill for the government to pass. I know it is a private member's bill, but it seems like the message we are getting from the other side, which is a very strange and different one for the government to be giving, is that the government is going to be sending this to committee to be studied. Typically, if that is the case, we see these bills going forward from there.

I do not have very much time to speak to this issue today, but one of the other things we are concerned about is that this could be begin to affect things like NAFTA. The government has failed on NAFTA negotiations as well. It is apparent that things are not going very well there, at all.

The Liberals have never had a commitment to trade. They have never been able to see a way through to getting these free trade agreements done. Certainly we do not want to see something else that is going to start impacting NAFTA, or whatever follows from that. We do not want to see things impacting our WTO agreements. We certainly do not need our free trade agreements to be violated.

The market is a powerful thing. It chooses, based on the quality of the products that are available there. We all believe that wood is very competitive. It is able to compete with concrete and steel. There are other places where the other products are critical. I have watched four high-rise apartments go up in the area where we live here in Ottawa in the last 10 years, and if they did not have concrete and steel in them, they certainly would not have been built to the height that they are.

It is good to see that the new lumber building codes are changing as well, so they can do the four-storey buildings now. They are also looking at six stories, and perhaps up to 10. Those are the kinds of innovations that we need to see, new products and new technology. We do not need the government to be interfering with the marketplace, especially on things as important as construction across this country.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I am pleased to rise in the House to continue the debate on this private member's bill.

I first want to thank the member for South Okanagan—West Kootenay for introducing this bill. In my view, discussions of private members' bills, which advance the ideas and individual interests of MPs and the concerns of their constituents, constitute the most important hours of debate in the House. I do not always agree with all the bills introduced in the House; sometimes I must oppose them, and other times I support them. However, It is always good to see what MPs are interested in when they introduce bills, and also the discussions and ideas that they bring to the House to be debated.

I would like to mention that I worked for a sustainable development department. I was in financial administration, and a special division of this department was responsible for Alberta's forests. I worked very closely with this special division.

After that I was a political advisor to the sustainable development minister, who was responsible for forestry. One of our key roles was to oversee the renegotiation of forestry management agreements with individual companies, something I am very interested in. I also worked with forestry companies in Alberta during those renegotiations.

This is not the first time Canada's Parliament debates a bill like Bill C-354, an act to amend the Department of Public Works and Government Services Act (use of wood). One hon. member told me that this might be the fourth time; this has been discussed in previous Parliaments. Bills C-429 and C-574 also addressed the topic.

The bill states:

(1.1) In awarding contracts for the construction, maintenance or repair of public works, federal real property or federal immovables, the Minister shall give preference to projects that promote the use of wood, taking into account the associated costs and reductions in greenhouse gas emissions.

Again, I appreciate the intent of this bill, which seeks to strengthen Canada's forestry sector. We can all agree that any effort to strengthen any economic sector in Canada is commendable.

I will be sharing my thoughts on the member's bill. His intention is understandable. However, we must think of the repercussions this bill will have not only on the forestry industry, including sawmills, for example, but also on other industries, like cement manufacturing, public and private construction, and construction in general.

In February 2014, the former member for Jonquière—Alma introduced Bill C-574, which was also supported by some members of his party. The Conservative Party opposed the bill at the time.

As we know, the amendment being made to the act will result in changes to the way the government approaches procurement and how it renovates its buildings. This could be interesting. However, this bill, which will affect the maintenance and repair of federal real property, will cause problems in the public procurement process that will be difficult to solve. I read the debates that have occurred in other Parliaments many times, because I wanted to inject some new ideas. I did not want to merely repeat the same thing other members have already said, because I hope to contribute a more philosophical perspective to this debate. I did not want to just repeat the opportunities this will open for the forestry industry and the repercussions it will have on workers in that sector.

I know that a life-cycle cost analysis produced by the United States Department of Defense some years ago demonstrated that wooden structures cost 40% less per square foot than steel or masonry structures. The cost of construction was 37% less for wood than for other materials.

Operating costs are also less for wood. I always say that a free-trade-based market should be able to benefit from theses sorts of efficiencies and the lower operating costs. Architects and others who decide what type of building will be built and with what materials look at those costs and that type of report.

It is the marketplace that will decide. I think that implementing this sort of legislative measure would require a major regulatory review and update and would put financial pressure on entrepreneurs and some provinces to conduct policy reviews and make changes. What is more, any potential legal challenges from construction sectors other than the wood sector could prove to be long and costly for the government. I believe that the best people to make these types of decisions regarding buildings are construction professionals, architects. They are in the best position to make this sort of decision. We should not rely on a law that would favour one material over another. That would take away the architects' and construction companies' power to choose. They can choose to go with wood if they want to and if they can do so in a way that will cost the government less, or they can do renovations that will reduce the government's operating costs in the future.

I believe that the code of practice and professional standards for architects and builders would be the best place to promote the benefits of wood construction. This building is a very good example. It is built of stone but much of the interior is made of wood. This building has stood for a very long time. We know that building with wood has advantages, and it is also beautiful, as we can see around us. The House was a success for those who built it.

This legislation would also have a major impact on the regulatory regime, as I mentioned. It would probably result in unexpected changes to the regulations of other departments and would establish a precedent that could lead to challenges in other sectors. As I mentioned, the steel and concrete sectors are two examples that come to mind. The National Building Code, which is the basis for provincial building codes, would definitely be affected by this legislation.

When I read the bill, I asked myself what the member's objective was and what effect he hoped it would have on those who bid on projects for the construction of government buildings. If we give preference to wood for the construction and renovation of federal buildings, the bill will indirectly promote one sector over another. All these sectors are vital to Canada's economy. We do not take away from one sector or another. Every sector is vital to Canada's economy to ensure growth and good jobs.

This would favour the economies of certain regions over others, in direct contravention of the mission of Public Works and Government Services Canada, which is to apply an open, fair, and transparent procurement process in order to obtain the best possible value for the government. This for me is the problem with the bill. It could result in job losses in the concrete and steel industries, which would be an economic substitution. There may not necessarily be new growth, but other sectors could lose contracts and be unable to continue working in the construction sector, as concrete, stone, or steel is discarded in favour of wood. I think this is a problem. It does not necessarily lead to new economic growth or to new jobs, but simply replaces one sector's jobs with another's.

In closing, I would like to talk about Frédéric Bastiat, a 19th-century French economist, member of the French National Assembly, and well-known Liberal polemicist who wrote a book called Economic Sophisms. Chapter 7 of his book is known as the Candle Makers' Petition. He wrote this fictitious petition as a way to prove an economic point. The premise is that candle makers are petitioning the government to force everyone to board up all windows and live in the dark so that they will have to buy candles. By depriving people of sunlight, they hope to create economic growth. The petition says that it is not fair for people to have access to sunlight for free and that they should be forced to buy the candle makers' products. This is a bit of an extreme example of sophism.

In simpler terms, this is about the economic substitution effect and consumer choice. In short, new jobs and potential economic growth are not necessarily a source of economic activity. At the end of the day, who will make the decisions? Will it be the architects, the builders, or the MPs in this House? We should allow the architects and the builders to make the best choices they can rather than legislating to impose one choice or another.

[The Speaker, Conservative, Andrew Scheer]

The House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-574 under private members' business.

The House resumed from November 26 consideration of the motion that Bill C-574, an act to amend the Department of Public Works and Government Services Act (use of wood) be read the second time and referred to a committee.

[Claude Patry, Bloc, Jonquière—Alma, QC]

Mr. Speaker, I would like to thank all my colleagues of every political affiliation in the House of Commons for participating in the debate, whether or not they support Bill C-574. This bill was introduced in the House in 2010 and was defeated at second reading.

The forestry sector has been devastated by massive job losses across Canada and Quebec, caused mainly by the recession, the global economy, the stronger Canadian dollar and the structural decline in the demand for paper documents. These no longer exist today because newspapers are going online.

Why did we introduce this bill? It is because in my area, many sawmills and plants have closed and many paper machines have been shut down. In Chambord, a plant has been closed for years. That is why we brought back this bill.

Today, there are many things on the market that promote innovation, new products and new technologies. I realize that the Conservative government has helped the forestry industry, but it could do more.

If the government has given many millions of dollars to this sector, why have so many plants in Canada closed? I do not see how Bill C-574 would violate Canada's obligations under national and international trade agreements such as NAFTA, the WTO Agreement and the Agreement on Internal Trade.

Canadian wood was never specifically identified in the bill, because we did not want the bill to be prejudicial to anyone. Today, we want to use it to construct buildings that are less than seven storeys high and to repair federal buildings.

For example, if the House of Commons chamber were renovated, I would like wood to be used instead of steel. That is the goal of our bill: we want to use wood.

On the weekend I went to watch a hockey tournament in a building made of steel, concrete that had beautiful wood ceilings. All three materials can be used together to build nice buildings. Back home, such buildings are built for tourism and industry. People who come to La Baie on cruise ships can see these beautiful concrete and wood buildings. The materials can be used together.

We never asked that the government be required to choose wood during the bidding process. We simply want it to choose the least expensive option from among wood, steel and concrete. If steel is the least expensive, the decision will not be a hard one.

Back home, a lot of buildings have been built using all of the materials. This has created jobs for a number of employees of plants that were shut down. This contributes to sustainable development. The government should take into account costs and greenhouse gas emissions when Public Works and Government Services Canada solicits bids.

The Conservative government said that it would oppose the bill, but I would like to quote from a 2011 interview with my colleague from Roberval—Lac-Saint-Jean, who is also a minister. He said that he wanted to promote the use of wood in the construction of public buildings. I will quote the whole paragraph:

In the coming months, it will be important to introduce bills to encourage the use of wood in public buildings, while also ensuring that current federal and provincial codes can fully meet requirements. That way, our engineers and architects can take wood into account when doing their calculations and the professionals already in operation will have the means, tools, software and techniques to safely carry out these projects using wood.

The Conservatives are opposing the bill, but in 2011 the minister said that the government needed to encourage the use of wood.

We need to encourage the use of wood throughout Canada and Quebec. The plants that have closed could reopen, there could be renovations and the industry could get up and running again. Instead of investing millions that only translate into closures, the government should require that people use wood for their repairs. Anything is possible. The bill's wording may not be very broad, but that was our intention. The same bill was introduced in 2010. MPs rejected the bill at second reading, but in any case, I am pleased to have discussed this topic with my work colleagues.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, since I have only three minutes, I will get right to the heart of the matter.

I am going to support Bill C-574 on the use of wood at second reading.

As the deputy environment critic, I moved a motion on energy efficiency at the request of my constituents in Drummond and many other people across the country. In addition to being good for the environment, energy efficiency also creates jobs and lowers energy bills.

The use of wood provides economic benefits to the regions—as my colleague from Trois-Rivières so clearly explained—as well as environmental benefits. For example, from an environmental perspective, wood compares favourably to other building materials, such as steel and concrete. Steel uses 26% to 34% more energy and emits 57% to 81% more greenhouse gases than wood.

I am pleased to rise in the House to talk about the importance of using wood in construction. This bill would allow the Minister of Public Works and Government Services to give preference to the concept that promotes the use of wood, while taking into account the factors of cost and greenhouse gas emissions, before soliciting bids for the construction, maintenance or repair of public works, federal immovables and federal real property.

Unfortunately, the Conservatives voted against my motion on energy efficiency, when it would have been a good starting point with regard to the use of wood as well.

The motion that I moved on energy efficiency stated:

That, in the opinion of the House, the government should implement an energy efficiency program to encourage owners of houses, residential buildings, shops and businesses to reduce their energy consumption, with a view to: (a) combatting climate change; [we will soon be attending the International Conference on Climate Change in Lima and we need to be ready] (b) lowering the energy bills of Canadians; and (c) creating jobs and stimulating the economy.

This motion would have covered all of the good points. Unfortunately, the Conservatives did not understand that because they voted against it.

This bill is similar in that it is good for the economies of the regions and job creation.

I did not have very much time, but I would like to thank the House for allowing me to speak to this bill.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, given that I live in Mauricie in the riding of Trois-Rivières, I could hardly turn down the invitation to participate in the debate on Bill C-574. This is an important bill that we are debating because it promotes the use of wood in the construction and renovation of federal buildings and emphasizes the role that the Department of Public Works and Government Services can play in meeting this objective.

To begin, I would like to say that I support Bill C-574 at second reading because it gives us the opportunity to promote an economically viable renewable resource that can both help to reduce greenhouse gas emissions and stimulate the economy in my region and my riding. It is a perfect example—as if we needed further evidence—of how economic development and environmental protection are not mutually exclusive but go hand in hand.

That being said, Bill C-574 could have gone much further had it been part of a national strategy for the wood industry. I will come back to that a little later.

Wood is much more energy efficient than steel or concrete. The world's population is increasing as quickly as the demand for resources, so a renewable resource like wood is a responsible choice for consumers and society as a whole.

Furthermore, applied research shows that much less energy is expended to manufacture wood products than to produce concrete, plastic or other materials. A study conducted by a research institute in the United States compared the environmental effects of houses framed with wood, steel and concrete. As one might expect, steel or concrete frame houses produce 26% more greenhouse gases and release far more atmospheric pollutants.

Wood is energy efficient and economically efficient. According to the U.S. Department of Defense, wood structures cost much less than steel or masonry structures.

Environmentally speaking, concrete or steel structures can emit up to 81% more greenhouse gases into the atmosphere. In other words, concrete and steel are energy guzzlers, while much less energy is used to build largely comparable structures out of wood.

I would also like to point out the importance of the national building code in the development of multi-level wood frame buildings. When the right technical conditions are in place, the national building code authorizes the construction of wood frame buildings as tall as four storeys. It even authorizes some exceptions when justified by the standards. That is a first step in and of itself.

However, the government could also learn more from the national building code and should even take a look at international experience and expertise in this area. Norway, for example, is often cited for the work it does in combatting inequality, and it is also exemplary with respect to the use of wood in construction. In the city of Kirkenes there are plans to build a 17-storey wood frame building. That is far higher than the 4-storey buildings that are permitted under our national building code. I believe it would be worthwhile to at least look at that project.

Countries such as Germany and Sweden do not limit the height of wood frame buildings. Assessing the environmental impact of wood demonstrates that it is, by far, the most environmentally responsible choice, as well as the most economically viable and energy-efficient one.

In addition, the national building code offers options that the minister could use as the basis for increasing the use of wood in the construction of federal buildings. However, after looking closely at this bill, I think—and I said this at the beginning—it could have gone much much further, and the NDP goes further.

My colleague, the member for Abitibi—Témiscamingue, moved a motion calling for a national strategy for the wood industry. As we all know, the drastic drop in demand for construction wood and international competition are the main reasons for the decline of the forestry industry.

According to Forest Canada, the closure of 80 mills resulted in over 11,000 layoffs. It is hard to quantify the human tragedy behind those numbers. Despite the seriousness of the situation, I think that our forestry industry's potential remains largely untapped, just like the potential of Bill C-574.

I would like to point out that Canada has 10% of the world's forest cover and 30% of the world's boreal forest. Those are major natural assets that we can leverage to support a sustainable and competitive economy. In light of that, it is clear that there should be a comprehensive strategy for Canada's forestry sector so that it can achieve its full potential.

I would like to focus for a minute on my riding, Trois-Rivières, which is at the centre of this debate. Just last summer, Kruger launched the first cellulose filament demonstration plant.

I just want to add that the Conservative government is not investing enough in the recovery of the forestry industry, nor is it investing enough in conducting, funding and supporting the basic research required for projects as important as the one I just mentioned.

This new biomaterial, cellulose filaments, is revolutionary. It has huge potential for the Canadian forestry industry because it can be combined with a number of other materials to create high-value products. More importantly, cellulose filaments are becoming indispensable to the Canadian pulp and paper industry.

One can therefore understand my enthusiasm for our local jewel, because it will produce diversified high-value products that are highly sought after by Canadian and international industries. Thanks to this innovation, the pulp and paper industry in Trois-Rivières could recover and fuel the region's economy once again. What is more, the Forest Products Association of Canada could succeed in international markets.

The creativity of the people of Trois-Rivières knows no bounds. I could also talk about UQTR, a university known for its pulp and paper industry research centres, which is also contributing to research and the economic recovery of my region.

Patrice Mangin, a professor in the chemical engineering department, said:

We have 650,000 tonnes of wood waste in Mauricie alone, which could be used to make diesel. Imagine the jobs this could create—1,500 to 2,000 jobs in Mauricie alone.

With the motion moved by my colleague from Abitibi—Témiscamingue, we could achieve three objectives that go further than Bill C-574. First of all, we could improve our competitiveness in order to compete with international industries; second, we could diversify our export market to be less dependent on the U.S. housing market; and third, we could help reduce greenhouse gas emissions.

In closing, and for once I think I have managed my time almost perfectly, I would remind the House that wood is a renewable resource that is efficient in several respects. Industrial, academic and environmental stakeholders all agree on the merits of wood, and I hope the House can reach the same consensus.

I therefore support the bill at second reading, and touch wood, I hope the government will support it too.

The House resumed from October 3 consideration of the motion that Bill C-574, An Act to amend the Department of Public Works and Government Services Act (use of wood), be read the second time and referred to a committee.

[Kelly Block, Conservative, Parliamentary Secretary to the Minister of Natural Resources]

Mr. Speaker, as we know, forestry is part of our history and identity as Canadians, and I would like to thank the member for Jonquière—Alma for introducing the bill. It provides me with an opportunity to discuss our country's vital forest sector.

While the bill is problematic, and I will touch on some of my concerns later on in my remarks, I can appreciate the desire to support our forestry industry. Our government shares this appreciation, and is in fact already acting upon this in significant ways.

Further to the points previously raised by the Parliamentary Secretary to the Minister of Public Works and Government Services, allow me to describe in greater detail some of the ways that our government has demonstrated consistent support for the forestry sector.

Economic action plan 2014 continues to make unprecedented investments to innovate Canada's forestry sector and to protect it from the threat of pests. Today this sector provides direct employment for over 235,000 workers in every part of our country, and it is a particularly important employer in rural and remote communities. In fact, in 200 communities, it accounts for at least half of the economic base.

However, the forestry sector has faced some challenges over the last decade. These challenges have come about due to a variety of factors, including the worldwide economic downturn, the stronger Canadian dollar, a structural decline in North American newsprint demand, and increased competition from other forest products.

Yet, the tide is turning. I am pleased to report that forestry sector markets are rebounding and market expansion efforts are proving successful. Jobs and the economy are the top priorities of this government, and since 2006 our government has provided over $1.8 billion in various initiatives to support the economic competitiveness and environmental sustainability of Canada's forestry sector. This includes investments in developing new markets, supporting innovation, and reducing the industry's environmental footprint. Thanks in part to this support, Canada's forestry industry is reinventing itself, by becoming more innovative, more environmentally friendly, and more global in reach. It is adopting innovation as part of its new business model.

How is all of this happening? A main hub of the forest sector innovation system in Canada is the not-for-profit organization FPInnovations, which our government helped to create in 2007. Today, FPInnovations is the world's largest public-private forest products research institute. Comprised of Canada's three national research institutes and Natural Resources Canada's Canadian Wood Fibre Centre, FPInnovations focuses on the development of emerging and breakthrough technologies, such as biomass harvesting and conversion, and nanotechnology. It conducts forest products research under NRCan's forest innovation program and is a partner in deploying promising new technologies into the forest products industry.

The investments in the forest industry transformation program, or IFIT, go another step forward. Through this program, our government is helping to see that new first-of-their-kind products, technologies, and processes with demonstrated value are brought to market. Our government has already supported 14 world-class or Canada-first projects, and economic action plan 2014 has committed more than $90 million to the program over the next four years.

A great example of a project that has benefited from IFIT is the one at Lauzon, in Papineauville, Quebec, a collaboration with the Centre de recherche industrielle du Québec and FPInnovations. In a global first, Lauzon is piloting Canadian-developed scanning technology that allows it to classify and sort logs in order to increase the amount of wood fibre recovered to 70%, compared to the current industry standard of 40%.

The capacity to convert low-quality wood fibre into customized unfinished flooring planks greatly increases the value that Lauzon obtains from each log. This technology could potentially be replicated in other hardwood flooring mills, thus benefiting the wider industry.

In another great project, Kruger Biomaterials Inc. is building a demonstration plant in Trois-Rivières for the commercialization of cellulose filaments, which are used in papermaking to soften, strengthen, and brighten paper. This Canadian innovation is another exciting world first, and as such will provide Canada with an immediate competitive advantage.

Strong, light, recyclable, and made without effluents, cellulose filaments have such a wide array of non-traditional uses that they have the potential to radically transform Canada's forestry sector.

Last December, Natural Resources Canada announced a $15 million investment in the commercialization facility, complementing earlier investments in R and D undertaken by FPinnovations. It is investments like these that are helping to shape the forestry sector of tomorrow.

Other investments have helped develop and expand markets.

In economic action plan 2012, $105 million over two years was announced to support forestry sector innovation and market development.

In economic action plan 2013, our government committed to an additional $92 million over two years, starting in 2014-15, to develop innovative new products and to diversify our markets. This market diversification strategy has helped Canada's wood products sector increase its exports in some rapidly growing Asian economies over the last decade.

For example, our government's focus on expanding export markets has resulted in a 1,000% increase of Canadian softwood lumber exports to China. Further, the value of Canadian wood products exports to China increased almost 24-fold between 2002 and 2012 to $1.4 billion.

In other trade-related activities, in 2012 our government announced the extension of the Canada-U.S. Softwood Lumber Agreement until October 2015, providing stable access to the U.S. market, and under the Canada-European Union Comprehensive Economic and Trade Agreement announced last fall, our world-class wood products would enjoy preferential access to, and increased demand from, the EU's member states.

It is no secret that expanding markets mean more jobs for Canadians, and that is good news for the economy and good news for Canadian families.

There are many other initiatives I could mention. However, with my limited time remaining, let me just mention the $18 million over four years announced in economic action plan 2014 for an action plan to assist eastern Canada in combatting the spruce budworm outbreak. Along with our government's other strategic investments, this investment is intended to help the industry and communities maintain their recovery momentum

I would now like to turn my attention to the reasons that I cannot support the bill.

While I certainly appreciate the desire to assist the forestry industry, this legislation has fundamental flaws that make it very problematic. If passed, Bill C-574 would contravene Canada's obligations under its international and domestic trade agreements, such as NAFTA, WTO, and the Agreement on Internal Trade.

Furthermore, by advocating an amendment to the Department of Public Works and Government Services Act to mandate the use of wood in the construction, maintenance, or repair of public works real property, the bill is in effect introducing an untenable bias into the procurement process.

Government contracting and procurement processes are in place to ensure openness, fairness, and transparency. Mandating the drafting of tender requirements to include a preference for wood products would grant an unfair advantage to suppliers proposing wood solutions at the expense of other important sectors of our economy, such as the steel industry and the concrete industry, for example.

In closing, our government's top priority is to create jobs, economic growth, and long-term prosperity for all sectors of our economy, including the forestry industry. That is why we are making significant investments in forest industry innovation and expanding markets for Canada's wood products sector, and it is why we are committed to continuing to support the forest sector and to achieve real results for Canadians, something the bill fails to do.

[Lise St-Denis, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, we need to once again address the difficulties that producers and processors in the forestry industry are grappling with. Bill C-574 is fundamentally related to the ongoing crisis in one of our country's oldest industries. We have been helplessly watching the demise of our forestry industry in forests from British Columbia to New Brunswick. Paper mills are dropping like flies and the recent announcement of the mill closures in East Angus and Shawinigan, in Quebec, confirm this strong trend that is undermining our industry.

Forestry producers are not only required to go further to get raw materials, but they also have to compete with new technologies and other replacement products in the construction industry.

As we know, the need for paper is dropping. Research and development in Canada is at a standstill, despite the importance of the forestry industry to our economy. Tens of thousands of jobs depend on this industry, which is hundreds of years old. In Mauricie, entire communities depend on wood—from logging to its transport, processing and marketing.

We are still shocked by the slow erosion of our forestry industry and especially by the inaction of governments in response to the disappearance of thousands of specialized jobs in Canada. Since the first lumber camps opened in Mauricie, forestry has fed families and communities and has been a part of the region's social and economic fabric.

Much like other regions of Canada that rely on forestry, we are still waiting for concrete action to revitalize these companies that are being threatened by changing technologies and globalization. However, using more wood is a realistic solution to address the economic problems of the regions, if only because of the diversity of production and our expertise.

From timber to softwood lumber, there are many possible solutions to address today's industrial needs. We have been blessed with all this wood around us, but considering that the government's efforts have been largely symbolic, we cannot say that we are out of the woods.

Legislation on the use of wood in federal building projects is a no-brainer, but why is it that we have not already developed the instinct to include our own primary resources in our infrastructure? These days, many young people are leaving the regions because there are no jobs. The federal government, with its employment insurance system, sends them a clear message that they should leave rather than invest in their communities.

It is strange, to say the least, that we have to convince this government of the regenerating capacity of our forests. Logs from our forests are fueling softwood lumber industries all around the world. When will we get a real lumber policy that will make a difference here at home, in our communities?

The time has come to take action in response to the plant closures that are tearing our industrial base apart. We need forestry policies right now to save an industry that operates in many regions across Canada. Our country has always had these vast forests that, over the centuries, have helped us prosper around the world. What kind of policies can we create now to develop this industry in the context of globalization and bilateral and multilateral agreements?

The resource is there, and as new technologies emerge, we need to take action. Sustainable development and air pollution are the focus of public debate, and without a doubt, our forestry resources are part of the solution.

At the local level, municipalities and business owners support including wood and wood waste in the economic cycle of production and consumption. Efforts such as using biomass to heat institutional facilities are starting to pay off.

We are at the dawn of a wood revolution, and we are seeing wood included in new technologies. We need to give ourselves the chance to continue to prosper, with the help of these industries that are the backbone of our regions. Let us be forward thinking and develop policies to promote the forestry industry, not just because it has economic value, but also because these products have environmental value and have no equivalent in the construction industry.

It goes without saying that we should incorporate wood into our federal infrastructure, but the ultimate goal is for the government to promote wood production at the national level. We are distressed by the recent closure of paper mills in Quebec, and we urge decision-makers to agree on a national wood policy in order to put an end to the demolition of an industry that helped build our nation. Jobs are being lost and communities are dying. When will the government react and invest in research and development?

We are not asking for government funds to be allocated without any kind of coordination or planning. We are looking for a national policy that will include solutions that come from the industry itself.

[Élaine Michaud, NDP, Portneuf—Jacques-Cartier, QC]

Mr. Speaker, I am very pleased to speak to today's debate on Bill C-574. Contrary to what my Conservative colleague just said, this bill is proposing a rather interesting idea that deserves to be explored further in the House.

The idea is to require that the Minister of Public Works and Government Services, before soliciting bids for the construction, maintenance or repair of public works, federal buildings and federal real property, give preference to the concept that promotes the use of wood while taking into account the factors of cost and greenhouse gas emissions.

This idea is part of a sustainable development approach, which might partly explain why the Conservative government does not seem to want to support it. Sustainable development does not seem to be on its radar. We see how the government allows the haphazard and unrestricted development of our natural resources at the expense of a number of economic sectors and the lives of Canadians.

Sustainable development is important to the NDP. It is with that in mind that I am supporting Bill C-574 at second reading, in the hope that we continue to study it in committee. If there are any problems with the bill, that would be the best time to discuss it and propose amendments that might be needed. However, to do so, we need to study the bill more closely. The bill therefore needs to be referred to committee.

The use of wood in construction is a concept that is starting to take off, especially in Quebec, but also in other regions of Canada. Last year, the Government of Quebec adopted a wood charter, in order to have public works managers assess, for each publicly funded project, the possibility of using wood as construction material. This would also include calculating the greenhouse gas emissions in comparison with other types of materials.

Because that charter was adopted, contractors in Quebec can now build buildings up to six storeys high out of wood, as well as other kinds of infrastructure, such as bridges, for example. Since wood is a sustainable and renewable resource that compares favourably to other building materials, specifically regarding greenhouse gas emissions, I think this alternative needs to be explored.

By using more wood, the government could also save a lot of money, not only when public buildings are being built, but also in the long term. Operating and maintenance costs for buildings made of wood are 55% lower than for buildings made of other materials.

Never mind the issue of sustainable development, I will speak a language that the Conservatives understand: economics. Saving 55% on operating and maintenance costs is significant, to say nothing of the savings that can be had at the time of construction by using wood. These factors should not be dismissed out of hand when new federal building projects are assessed.

Furthermore, the new opportunities that would arise from the increased use of wood in various construction projects could definitely help create more good jobs in rural or remote regions of Quebec, of course, but also many other areas of Canada. This is very important.

The Canadian forest products industry is one of Canada's largest employers. It provides 230,000 direct jobs in 200 communities across Canada. The benefits of using more wood in federal buildings would be visible from coast to coast to coast. We must bear that in mind when evaluating this kind of legislation. This could mean economic benefits for every province and territory. This is very important.

Among the 200 communities that boast jobs directly related to the forestry industy, several are municipalities in my riding of Portneuf—Jacques-Cartier, where the forestry industry has always played a very important role in the regional economy. For instance, in the Portneuf RCM, which includes 18 municipalities, over 1,400 people are employed in the forestry industry, mainly in wood processing.

In addition to veneer, door and window plants, there are also many sawmills in the Portneuf RCM. The forestry industry also played a major role in first attracting people to live in the Portneuf RCM.

The situation is similar in the Jacques-Cartier RCM, which includes nine municipalities. In addition to its historic role in the settlement and development of the Jacques-Cartier region, the forestry industry continues to be important to the regional economy, mainly because of the businesses working in secondary and tertiary processing of wood products.

By passing a bill such as Bill C-574, we could create good jobs in ridings such as mine and in a sector that has experienced major difficulties in recent years. My riding was not spared by the crises in the manufacturing and forestry industries. A few years ago, the AbitibiBowater plant in Donnacona closed its doors, leaving employees without jobs, resources or pensions. The Conservative government of the day refused to take action, which was very unfortunate. The MP at the time—I cannot remember if he was an independent or a Conservative—was not of much help to the people of Donnacona, who were directly affected by the AbitibiBowater plant closure.

That is why members introduce bills such as Bill C-574. They do so to address some of the problems in remote rural regions where it can be difficult to create good jobs that provide adequate income for households in the area.

At present, in my riding of Portneuf—Jacques-Cartier, municipalities have used wood in a number of commercial buildings. The results are quite interesting. This was made possible by the leadership of the municipal councils, but also with the support of the Province of Quebec, which strongly supports the use of wood as a construction material in public buildings and public works.

I would like to give an example that is quite beautiful to see. I invite you to come and visit this building. In 2010, the Fédération québécoise des chasseurs et pêcheurs built its head office in Saint-Augustin-de-Desmaures in my riding. It decided to use wood for both the interior and the exterior of the building. The result is beautiful, and the building blends in well with its natural surroundings. In 2011, this building and the Fédération québécoise des chasseurs et pêcheurs even received a cecobois award of excellence. The Centre d'expertise sur la construction commerciale en bois or cecobois is an organization that seeks to promote and support the use of wood in multi-family and non-residential construction in Quebec. Of course, it also promotes the use of local resources, such as wood, and tries to reduce greenhouse gas emissions, while supporting more responsible economic development based on the principles of sustainable development. An organization that demonstrated this type of leadership can be found in Saint-Augustin-de-Desmaures.

More recently, on September 24, the Centre d'expertise sur la construction commerciale en bois also presented two awards of excellence to municipalities in the Portneuf RCM: Cap-Santé and Portneuf. Cap-Santé built a multi-purpose facility, called the Maison des générations, which will be used by various organizations in the community. A lot of wood was used, and the results are extraordinary. In Portneuf, Bishop Bridge is a wonderful structure made predominantly of wood.

These two municipalities are good models, and the government should look at what was done and how the communities benefited from these projects. It should play a leadership role to try to ensure that the principles of sustainable development are upheld, to help Canadians save money and to promote development in a sector that has lost a lot of jobs in recent years.

That is why I support Bill C-574. I hope that we will have the opportunity to take this bill further and at least examine it in committee so that we can seriously discuss and study it.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Public Works and Government Services]

Mr. Speaker, I am pleased to rise on behalf of the government to speak to Bill C-574, an act to amend the Department of Public Works and Government Services Act (use of wood).

Let me begin by saying that I appreciate the intent of the bill, which is to strengthen the forestry sector. No one would dispute that seeking to strengthen various economic sectors of our country is a laudable goal. That is precisely why our government is so focused on jobs, economic growth, and prosperity for all sectors and all regions of our country.

That said, however, members who were present for the debate in 2010 on Bill C-429, which was identical to this legislation and which was defeated, will know that there are several reasons that this bill is fundamentally flawed. In fact, there is no evidence to suggest that, even if passed, this legislation would strengthen the Canadian forestry sector it claims to help.

While I could elaborate at length on the problems with this proposed legislation, I will limit my remarks to the key reasons that our government cannot support the bill.

First, the proposed bill contravenes Canada's legal obligation under the procurement provisions within our country's international and domestic trade agreements.

These agreements prohibit discrimination and unnecessary barriers to trade. Any legislation that were to amend the contract tendering requirements to encourage the use of forestry products or to give preference to a supplier who makes it a policy to use them would contravene Canada's trade obligations under NAFTA, the WTO Agreement on Government Procurement and our free trade agreements with Chile and Peru.

This bill does not just contravene international trade agreements. In fact, under the Agreement on Internal Trade, government tender documents cannot require the use of specific materials unless they are needed for technical or operational reasons.

The Agreement on Internal Trade prohibits the introduction of a bias in the form of technological specifications in favour of, or against, particular goods or services, including those goods and services included in construction contracts.

Bill C-574 would also impair the capacity of the Minister of Public Works and Government Services to fulfill her mandate as stipulated in her own legislation, the Department of Public Works and Government Services Act.

By giving preference to the use of wood in the construction and renovation of federal buildings, the bill indirectly promotes one sector over other, also essential, sectors of the Canadian economy. This would, by extension, favour the economies of some regions over others, in direct conflict with the mandate of Public Works and Government Services Canada, which has procurement processes in place to ensure openness, fairness, and transparency in order to obtain best value for the crown.

Let me also note that most PWGSC projects are large office buildings of more than four storeys, and the current national building code does not easily permit the use of combustible materials for the construction of buildings higher than four storeys.

That said, PWGSC already uses a large quantity of wood when fulfilling its responsibility to maintain buildings owned by the federal government and provide office space for public servants. The department spends approximately $160 million a year on office space and furnishings, and approximately 15% of that amount is put towards wood products.

While the Department of Public Works remains an important consumer of wood, our government also recognizes the importance of the forestry industry. It provides, and continues to provide, significant support to the forestry sector.

Given its long-standing importance to our country and to many communities, particularly smaller ones, the forestry sector has received a great deal of government attention in recent years.

Since 2006, our government has supported the forestry sector to the level of $1.8 billion, and it continues to invest in innovative new products, maintaining existing markets and pursuing new markets for Canadian forest products.

To cite some examples, in 2010 the investments in forestry industry transformation program, or IFIT, was created to enable Canadian forest companies to lead the world in developing innovative technologies that improve efficiency, reduce environmental impacts, and create non-traditional, high-value products from Canada's world-class forest resources, and there have been some tremendous successes.

IFIT funding, for example, to the Tolko Industries Ltd. mill in Meadow Lake, Saskatchewan, helped the company develop innovative technology that allowed it to become the first in North America to produce different types of oriented strand board on a single production line.

Under Canada's economic action plan 2014, IFIT was renewed for four more years to the tune of $90.4 million so that it can help support more breakthroughs like this one across the country.

The 2012 and 2013 economic action plans provided the forest innovation program with $197 million over four years. That program helps forestry companies innovate and adopt new technology. For example, the tall wood demonstration project initiative helped increase the export potential for forestry companies in both traditional markets and emerging onces, including China, India and the Middle East.

On the trade side, in 2012, the government announced the extension of the softwood lumber agreement between Canada and the United States through to the end of October 2015. That guaranteed that Canada's softwood lumber producers would have stable access to and fair market value in U.S. markets. That agreement came into effect in October 2006 and meant that more than $5 billion in U.S. tariffs went back into the pockets of Canadian producers.

It is also important to consider the possible unforeseen consequences if the bill were to pass. Greater demand for wood could lead to greater imports of wood products and that would certainly be of no help to the Canadian forest sector.

As I said earlier, the bill poses many legal and procurement issues that make it impossible for our government to support. In fact, in 2010 when the previous version of the bill was being debated, it is interesting to note that both opposition parties could not agree on a unified position when it came to the bill. The votes were split along regional and provincial lines and even many opposition members could see that the bill was fundamentally flawed and did not support it.

Of note, let me quote the current NDP critic for Public Works, the member for Winnipeg North, who during consideration of the previous identical version of the bill at committee said:

We really shouldn't be seized of the issue of what kind of flooring we're going to put into the next public building that we build. It's almost insulting, frankly, for us to be using our time on this. I mean, are we going to have a private members' bill to dictate what kind of curtains we put in the next building we build? I'm starting to get frustrated with this.

While most of the NDP caucus voted against the bill, the current leader of the NDP, the member for Outremont, supported it.

Interestingly enough, the Liberal Party was also deeply divided on this legislation, with the current Liberal Finance and National Revenue critic, the member for Kings—Hants, voting against the bill and the current Liberal leader, the member for Papineau, supporting it.

It will be interesting to see if the current NDP and Liberal leaders will continue to support this flawed legislation, which clearly seeks to unfairly favour one sector over the others and, by extension, seeks to unfairly favour one province and region at the expense of others.

I would like to reiterate that the legislation and its fundamental flaws will not allow our government to support the bill. Today we are seeing Canada's forest sector evolve into a modern, innovative industry with its sights set on new markets, new ways of using wood and new ways to maximize value from forest fibre. Our government is happy and proud to continue playing an important role in supporting these exciting new developments and we do just that because we recognize how important it is to our economy and to our country.