Thank you, Mr. Chair, honourable members.
The Confédération des syndicats nationaux represents 300,000 workers employed in all economic sectors. Half of our members work in the private sector. The current crisis that is plaguing the manufacturing and forestry sectors, particularly in Quebec and Ontario, is extremely painful. Since December 2002, more than 135,000 jobs have disappeared from this sector. Close to half of the 275,000 layoffs in this sector nationwide occurred in Quebec.
In the pulp and paper industry, the situation is particularly dramatic. In Quebec, 10,000 jobs have been lost since April 2005. If we were to include corollary activities, the number of jobs lost is 21,000. As regards the forestry sector, approximately 100,000 jobs, including indirect jobs, have been lost. These job losses have occurred mainly in the 240 single-industry towns and villages of Quebec that are now experiencing significant hollowing out problems.
At the heart of this struggle, there has also been the very rapid depreciation of the dollar. Considerable efforts must be made to modernize our businesses. Research, development and innovation must be enhanced so that we can compete with emerging countries internationally. Of course, assistance must be given to workers and their families. In single-industry communities, the situation is particularly dramatic.
Without wanting to insist further on the magnitude of the problem, I will share with you some solutions the CSN has formulated. Of course, when the federal government issued its economic update, many measures included tax cuts. Nonetheless, up until the very end of March this year, surpluses could still be allocated. We believe that it is particularly important to implement targeted measures in these sectors, and in the affected communities. I will make a few suggestions.
We have considered loans or guarantees as incentives to modernize certain businesses. Businesses are currently experiencing financial difficulties and are not making the necessary upgrades. Yet, it is the communities and workers who are paying the price, and jobs are disappearing. We would also have liked to see more substantial support to the secondary and tertiary processing sectors. This can be done in several ways. In the most recent budget tabled by the Government of Quebec, tax credits on processing operations were allocated to resource-based regions. We believe this measure to have been relatively effective. More than 5,000 jobs have been saved because of these measures. In the case of regions which have been particularly devitalized, the government should consider tax credits for young skilled workers who accept employment related to their area of study, located in their region.
The entire research and development sector plays a particularly crucial role. On that front, Canada does not rank very well. This country is not among the most outstanding countries of the OECD. To my mind, we must strengthen tax measures as a way of increasing investment in research and development. This would allow businesses to become more competitive on the international front. The government should also reinstate the Technology Partnerships Canada program, which has already proven to be useful. This program was eliminated by the federal government, but could prove once again to be extremely useful in these circumstances.
I will say a few words about the forestry industry. A catastrophe has befallen this sector. We feel that the diversification fund for the forestry industry, worth some $50 million over four years, which was abolished by the Conservative government, would have been particularly valuable for single-industry communities. In the same way, assistance programs such as the co-generation program could be extremely useful. We would like to see an increase in funds for industrial research assistance programs to help us get through this difficult crisis.
Obviously, there's also the entire issue of the enormous surplus of the employment insurance fund, which could be another way of helping us survive this difficult period. I also wish to draw your attention to a program that is absent, an income supplement program for older workers. The reinstatement of this program has been agreed upon unanimously by all union organizations in Quebec. Relatively speaking, the program is inexpensive, and highly focused. There are workers who are 55 years of age or older, who have worked for more than 10 years, and whose professional credentials will not take them into a new workplace. We have been able to carry out these assessments, particularly through reclassification committees. We must build a bridge by giving older workers benefits that are equal to employment insurance benefits, so they can reach a decent retirement at the age of 65.
I also wish to call your attention to international treaties, and how important it is for the federal government to implement safeguard measures so that we can adequately face the transition towards international competition and give our workers and communities a chance to keep their head above water in these circumstances.
I will conclude there. If you have questions, I would be pleased to answer them.