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

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Richard Cannings  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Second reading (Senate), as of May 7, 2019
(This bill did not become law.)

Summary

This is from the published bill.

This enactment amends the Department of Public Works and Government Services Act to require that the Minister may, in developing requirements for public works, allow the use of wood or any other thing that achieves environmental benefits.

Similar bills

S-222 (current session) Law An Act to amend the Department of Public Works and Government Services Act (use of wood)
S-220 (43rd Parliament, 2nd session) An Act to amend the Department of Public Works and Government Services Act (use of wood)
S-206 (43rd Parliament, 1st session) An Act to amend the Department of Public Works and Government Services Act (use of wood)
C-574 (41st Parliament, 2nd session) An Act to amend the Department of Public Works and Government Services Act (use of wood)
C-429 (40th Parliament, 3rd session) An Act to amend the Department of Public Works and Government Services Act (use of wood)

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-354s:

C-354 (2023) An Act to amend the Canadian Radio-television and Telecommunications Commission Act (Quebec’s cultural distinctiveness and French-speaking communities)
C-354 (2013) Defence of Canada Medal Act (1946-1989)
C-354 (2011) Defence of Canada Medal Act (1946-1989)
C-354 (2010) An Act to amend the Federal Courts Act (international promotion and protection of human rights)
C-354 (2009) An Act to amend the Federal Courts Act (international promotion and protection of human rights)
C-354 (2007) An Act to amend the Holidays Act (Remembrance Day)

Votes

May 23, 2018 Passed 3rd reading and adoption of Bill C-354, An Act to amend the Department of Public Works and Government Services Act (use of wood)
Feb. 7, 2018 Passed 2nd reading of Bill C-354, An Act to amend the Department of Public Works and Government Services Act (use of wood)

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6 p.m.

Northumberland—Peterborough South Ontario

Liberal

Kim Rudd LiberalParliamentary Secretary to the Minister of Natural Resources

Madam Speaker, I want to thank the hon. member for South Okanagan—West Kootenay for this important and timely bill, and to thank him for his hospitality. He took me around to meet some of the operations in his riding.

This is important because Canada's forest industry is a major driver of our economy, employing more than 210,000 Canadians and contributing some $23 billion a year to our GDP. In fact, forestry creates more jobs per dollar than any other resource sector, and we export more than 34 billion dollars' worth of forest products to 100 countries around the world.

Across the country, it remains the lifeblood of rural Canada and a major source of income for about one in seven municipalities. Just as significant is its role in the lives and livelihood of indigenous peoples, 70% of whom live in forested regions. Not surprisingly, forestry is one of the leading employers of indigenous people, providing some 9,700 well-paying jobs across Canada. These jobs are creating the potential for enduring prosperity and bringing hope to communities for lasting change.

The hon. member's bill is also timely, for a number of reasons. First is that this has been a difficult year for the industry and it needs our support. Over the past 12 months, the industry has faced historic fires, devastating infestations, and punitive protectionism from our largest trading partner on products from softwood to newsprint.

Our government's position has been clear and unequivocal. The U.S. duties are unfair, unwarranted, and unjustifiable. We are vigorously defending Canadian workers by challenging the duties before the World Trade Organization and the through the North American Free Trade Agreement. We will continue to fight and we expect to win, as we have in the past. However, we also know that in the meantime families and communities are hurting.

When the duties were announced, our government stepped up with an $867 million softwood lumber action plan, a plan that included loan guarantees for industry, access to work-sharing programs for employees, funding to help provinces support workers, investments in forest innovation programs, and access to programs that will help companies reach new markets.

The hon. member's bill is also timely because it speaks to an industry that is in the midst of an historic transformation. It was not so long ago that this sector seemed to be on the ropes, its prospects grim, its potential limited, and its practices criticized. To many it seemed like an outdated and dying industry. However, instead of wringing its hands, it rolled up its sleeves and began a transformation whose best chapters are still yet to be written.

Forest industry leaders reached out to their critics, listened to their concerns, and made changes to their operations. With government support, it invested in research, developed new products, and established new offshore markets, creating not only a new image but a new vision of what forest products could be.

The result is that forestry is now one of the most innovative parts of our economy, writing a success story most Canadians do not know well or hear about often. Few areas demonstrate the renaissance of forest products better than its use in construction. New, stronger, and more environmentally friendly products are coming to market every single day. Engineered wood, for example, is as strong as steel, making it safe and practical, not only in buildings but also in infrastructure such as bridges.

These innovations are placing Canada at the forefront of tall wood building. In Vancouver, Natural Resources Canada supported the University of British Columbia in constructing a new student residence that is the tallest hybrid wood building in the world, towering 18 storeys. This magnificent structure is not only an engineering and architectural showpiece, it is also an environmental game-changer, storing more than 1,700 metric tons of carbon and saving nearly 700 metric tons in greenhouse gas emissions. That is like taking 500 cars off the road per year, and UBC is just the start.

Our government is also supporting the construction of a 13-storey cross-laminated timber condo building in Quebec City. The Origine project consists of a 12-floor solid wood structure on a concrete podium, and because cross-laminated timber has no gaps through which heat can transfer, it will have lower energy costs, about 40% less than a traditional building.

Canadian innovation in wood construction is not only creating magnificent new buildings at home but is opening up exciting new opportunities abroad. In Tianjin, China, a new eco-district covers almost two square kilometres and is built using Canadian lumber, ingenuity, and expertise. With its success, there are opportunities to reproduce it right across China.

These new building techniques and technologies also play a major role in combatting climate change. Most of us remember enough of our high school science to know that trees absorb vast amounts of carbon dioxide from the atmosphere. What we might not realize is that the carbon remains sequestered even after it is turned into building materials, which means that wood buildings hold carbon for decades. Building with lumber also emits far fewer greenhouse gases than traditional building materials. It is no surprise then that the forest industry is a key part of the pan-Canadian framework on clean growth and climate change. Quite simply, increasing the use of wood for construction will help Canada meet its 2030 climate commitments.

Our government is supporting wood construction, including through our green construction through wood program, which invests nearly $40 million over four years to use wood in non-traditional construction projects. This program is expected to reduce carbon emissions by as much as six megatonnes by 2030.

For all of these reasons, any bill that encourages greater use of wood in construction is to be applauded for the jobs it creates, the markets it opens, and the environmental benefits it brings. The bill before this House seeks to increase wood construction, but while its aim is worthy, its wording is problematic. As other members have pointed out, it raises questions of fairness in procurement by giving preference to one building material over another. It also risks running contrary to Canada's trade obligations, including possibly discriminating against regions that do not produce wood, and by prescribing technical specifications related to design or descriptive character, it might be seen to create unnecessary obstacles to trade, contrary to trade agreements.

While these concerns are significant, they are not insurmountable and I believe could be addressed through amendment. I would therefore encourage hon. members to support this bill in principle so that it can proceed and the appropriate amendments made.

I want to again thank the hon. member for South Okanagan—West Kootenay for all of his work on this initiative, on the natural resources committee, and what I know he will do in the future.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:05 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, it is a pleasure for me to join the debate on Bill C-354. It is a bill that seeks to encourage the use of more wood in construction. Up to this point in the debate, members have talked about their belief in the importance of the forestry sector.

A debate like this provides members with an opportunity to attest to their love for wood and their love for the forestry sector. However, what distinguishes our party is that when we were in government, we actually took action to support the forestry sector. When Conservatives were in government, it was not just a matter of words and professions but a matter of concrete steps that we took to ensure the health and vitality of Canada's forestry sector.

I had the pleasure of working as a political staffer for the then industry minister, a current member who is doing a great job still. In the context of the financial crisis in 2008-09, the work that he did and that we were able to do as his political staff to support Canada's forestry sector through those difficult economic times were a great credit to the last government. Frankly, the current government is far behind where we were in terms of understanding and appreciating the value of Canada's forestry sector.

When it comes to this particular bill, I generally do not like the words “virtue signal”, because I think they bring virtue ethics as a philosophical concept into disrepute, but they are often used when individuals want to signal their support for an idea, cause, or group but are not actually taking the right or necessary substantive actions to support them. There is an effort to send a signal but there are problems with the detail and a lack of action on substance.

The bill, in particular, would add language to the Department of Public Works and Government Services Act, which would say 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.

Now, there is not a huge amount of clarity on the mechanism, the way in which the minister would give preference, taking into account other things, but it certainly does seek to direct and in a certain sense limit the flexibility of action for a minister, who I think most Canadians would agree should be looking at the best value for taxpayers, the best long-term value, as well as taking into consideration the broader public interest issues like environmental well-being and impacts on communities. All of these things are and should be taken into consideration.

However, the bill in a way seeks to give preference for one kind of building material over another. Of course, there are a range of other building materials that are produced in Canada that benefit Canadian workers, families, and communities. Therefore, it is not obvious to me why we should write into legislation a requirement to preference one kind of building material over another.

Members have given eloquent speeches about the benefits of wood, and I applaud those members and I applaud those sentiments. However, certainly, given all of those benefits, a specific preference written into legislation is not needed. In recognizing those benefits, the environmental benefits and the benefits to the Canadian economy, when decisions are made on the basis of an objective criteria between different building materials, the best option should always rise to the top if there is an effective, dispassionate analysis of the merits of different types of proposals.

Our inclination would be to not introduce into legislation a particular preference for a particular kind of industry over another industry, especially recognizing our obligations in terms of international trade and recognizing that Canadians work in different kinds of industries. It is not for the government to be trying to pick who the winner and loser will be in that kind of competition. Rather, it is in the public interest for these evaluations to happen in an objective way.

Any time we introduce additional considerations, additional factors to consider, besides that clear objective public interest analysis, it adds potential costs and leads to a situation where, because of a presumed preference, an outcome might be different from what it would have otherwise been if the criteria had been a simple evaluation of which material makes the most sense in the context of this particular project. We in the Conservative Party strongly support the forestry sector, but we do not think that support has to involve hurting other sectors. We do not believe in what seems to be a bit of a tendency on the economic left to believe that wealth is finite and that if we give support to one person we have to take it away from someone else. We think that governments should develop economic policies that benefit all sectors rather than choosing one sector over another.

The kinds of initiatives that we undertook when we were in government to support the forestry sector were on that basis. We sought international trade opportunities that would benefit all Canadian sectors. We lowered taxes in order to benefit all Canadian sectors. We lowered business taxes. We lowered the small business tax. We cut employment insurance premiums. We sought to remove regulations that prevented all sectors from succeeding in this country.

We now have a government that wants to go in the opposite direction. The Liberals are nickelling and diming all sectors. They are raising taxes through their new national carbon tax proposal. The initial proposal was to raise the small business tax rate. Then they unbroke the breaking of that promise. Across the board we see efforts by the government to impose new regulatory as well as tax burdens on all sectors. I am sorry to say that it simply is not good enough for the Liberals to try to come back from that disastrous record and say to the forestry sector, “As much as we are overburdening you with new taxes, we are going to have an ambiguous section of this bill that is going to involve giving some preference to the forestry sector over other sectors.” I say let us work on policies that will mean a rising tide lifts all boats whether they are made of wood or not.

In terms of the specific issues that the government needs to address and has failed to address thus far, one of the clearest areas affecting Canada's forestry sector is the total failure of the government to effectively engage on the international trade front. Let us contrast that with the work done under the previous government. When Stephen Harper became prime minister, he immediately said to the Americans that addressing the softwood lumber issue was a core priority. He said that directly to the president of the United States, and within a few months they got it done. The then prime minister secured a good deal for Canada, and one that lasted a very long time, until we had a new government.

The current Prime Minister has thus far dealt with two different presidents in the United States, two presidents who, dare I say, are relatively different in their approach and outlook. The first president that the current government dealt with was President Obama. We heard a lot about bromance and “dudeplomacy”. Unfortunately, this “dudeplomacy” did not get us anywhere. The diplomacy part of “dudeplomacy” was totally missing from the Prime Minister's engagement with President Obama, so he did not get it done. In the infamous words of Michael Ignatieff, he “did not get it done”. Now we have President Trump, a different president, again with no progress or results with respect to the softwood lumber issue.

The government wants to try and send a signal. It is loading up this industry with more and more taxes. It is failing to stand up for its interests with respect to international trade. It dropped the ball with President Obama. It is dropping the ball again. Now the government is saying, “We have an idea. We will support this change to the procurement rules that suggests we might, maybe in certain circumstances, give a preference for wood.” That is not good enough. The government should stop simply trying to send signals and should start doing its job by standing up for Canada's forestry sector.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:15 p.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, I am proud to rise today to reply to the second reading debate on my private member's bill, Bill C-354, an act to amend the Department of Public Works and Government Services Act with regard to the use of wood in government infrastructure. I want to begin by thanking all the members who have taken part in the debate. I really appreciate that engagement, and all the views that have been put forward.

This is a critical time for our forest industry and for our fight against climate change. This bill could play an important role in both those issues.

The bill is timely, as the Parliamentary Secretary to the Minister of Natural Resources said, because we are at the cusp of a significant change in how we construct buildings. For over a century, large building have been built with concrete and steel. While that will continue for years to come, we have new engineered wood, or mass timber technology that can replace some or all of the concrete and steel in buildings. This is a very small part of the construction market right now, but Canadian manufacturers of engineered wood are industry leaders in North America. They just need a foot in the door to maintain and grow that position.

We need to provide direction to the government to consider wood when building large infrastructure, since, until now, it has only had concrete and steel to look to. It is not used to turning to wood as an option. We need it to turn and have a look at wood when making those decisions.

This bill simply asks the federal government to put the project materials to two important tests. The first test is the overall lifetime cost of the materials. The second test is the impact those materials would have on the carbon footprint of a building. The bill seeks to balance those two costs, the dollars and cents cost and the environmental cost. It is very similar to the wood first bill, enacted in 2009 in British Columbia, and the government procurement policies in Quebec that promote the use of wood.

In answer to what the member for Gatineau said, the bills are very similar, and they have stood the test of international trade agreements.

Off the top, I would like to discuss the two main criticisms I have heard about the bill and explain why they should not be of any real concern.

One is that it picks winners and losers, as the member for Sherwood Park—Fort Saskatchewan alleged just now. People say that it distorts the market. It does not do that at all. It simply asks the government to look carefully at the real costs and climate costs when choosing the best structural products. In fact, the cement industry recently asked the federal government to use exactly the same dual lens, lifetime costs and greenhouse gas emissions, when choosing structural products for infrastructure.

The second concern I hear is about fire safety of tall wood buildings. The fact is that mass wood buildings are as fire safe, or safer, than those built with steel and concrete. Those that have been built already have been designed with direct involvement and sign-off by fire chiefs. Remember, we are not talking about stick-frame buildings here. Fire acts completely differently when it encounters a beam that is a metre thick than when it encounters a 2x4. It is like sticking a match to a big log.

What are the advantages of building with mass timber? Why should the federal government want to use wood as well as the conventional steel and concrete?

First, wood sequesters carbon, and tall wood buildings can play a significant role in reaching our climate action targets. Each cubic metre of wood in a building acts to sequester one tonne of carbon.

Second, wood buildings can be built economically and efficiently, since they are typically constructed off site, then reassembled on site as each section is needed. Each piece is made with a precision unattainable with normal structural products. Engineered wood products can be exported to the United States without softwood lumber tariffs, and as other members have said here, wood buildings are beautiful.

Climate action demands a lower carbon footprint for our infrastructure, the forest industry needs more markets, and the mass timber revolution offers a means to fill both those needs. Wood buildings are safe, cost competitive, beautiful, and they fight climate change.

I am encouraged to hear words from the government side about sending the bill to committee for closer study. I really look forward to that. I ask all members here to support Bill C-354 to foster the engineered wood sector in Canada and keep our forest industry sustainable and strong.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

The Assistant Deputy Speaker Carol Hughes

The question is on the motion. Is it the pleasure of the House to adopt this motion?

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

Some hon. members

Agreed.

No.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

The Assistant Deputy Speaker Carol Hughes

All those in favour of the motion will please say yea.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

Some hon. members

Yea.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

The Assistant Deputy Speaker Carol Hughes

All those opposed will please say nay.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

Some hon. members

Nay.

Department of Public Works and Government Services ActPrivate Members' Business

February 6th, 2018 / 6:20 p.m.

The Assistant Deputy Speaker Carol Hughes

In my opinion the nays have it.

And five or more members having risen:

Pursuant to Standing Order 93, the recorded division stands deferred until Wednesday, February 7, 2018, immediately before the time provided for private members' business.

The House resumed from February 6 consideration of the motion that Bill C-354, 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.

Department of Public Works and Government Services ActPrivate Members' Business

February 7th, 2018 / 6:50 p.m.

The Speaker Geoff Regan

The House will now proceed to the taking of a deferred recorded division on the motion at second reading stage of Bill C-354.

(The House divided on the motion, which was agreed to on the following division:)

Vote #447

Department of Public Works and Government Services ActPrivate Members' Business

February 7th, 2018 / 7 p.m.

The Speaker Geoff Regan

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Natural Resources.

(Bill read the second time and referred to a committee)

Department of Public Works and Government Services ActPrivate Members' Business

February 7th, 2018 / 7 p.m.

The Speaker Geoff Regan

I wish to inform the House that because of the delay there will be no private members' business hour today. Accordingly, the order will be rescheduled for another sitting.