Good morning, members of the committee. Thank you very much for having me here on behalf of the members of the Forest Products Association of Canada, or FPAC.
FPAC is the voice of Canadian wood, pulp and paper producers, nationally and internationally. Canada's forest products industry generates $69 billion annually, contributing over $21 billion to Canada's GDP. The industry is one of Canada's largest employers, operating in over 600 forest-dependent communities from coast to coast, and directly employing 230,000 Canadians across the country. Our sector is one of the largest employers of indigenous peoples in Canada, working closely with over 1,400 indigenous-owned forest businesses.
The forest products industry is facing several challenges, including—but not limited to—trade disputes, carbon measures, regulatory unpredictability, wood supply uncertainty and lack of reliable infrastructure to support our transportation system. More critically, federal financing programs and policies must remain predictable, stable and robust for transformative projects to be successful and to contribute to Canada's carbon reduction targets, to contribute to indigenous and rural communities that depend on the sector, and to increase investment to be able to compete effectively in the global marketplace.
FPAC has three recommendations when it comes to the 2019 budget. I will be making a short statement on each recommendation. If you would like to know more, you can read our fulsome mission, which is attached to my speaking notes today.
Recommendation number one is for the Canadian government to continue providing support through several programs, such as programs that support indigenous peoples and increase their participation in forestry-related opportunities, businesses, careers and governance. The recommendation also includes research and development programs, such as those led by FPInnovations, and programs that help accelerate the development of new forest products, including those that can replace the use of plastic across Canada. Market access programs such as Canada Wood and Wood WORKS! help increase the sector's presence in the Canadian and international arenas, and help develop new markets under free trade agreements.
Recommendation number two is to help with the uncertainty and challenges related to our sector's ability to compete. FPAC recommends establishing an industry-government working group on regulatory competitiveness. This comes back to your last point in your last session, Mr. Easter, and I'd love to explore it with you in the Q and A if time permits. This would address the cumulative regulatory burden and access to wood fibre. We recommend helping to eliminate infrastructure bottlenecks and increasingly frequent transportation service interruptions, specifically by allocating capacity to Natural Resources Canada to support the collection, analysis and distribution of data provided by the railways through the implementation of the Transportation Modernization Act.
We suggest that government address the overall tax burden Canada currently faces and ensure that during the renegotiation of NAFTA enhanced trade facilitation and trade remedies are key objectives. We suggest that government quickly ratify the comprehensive and progressive agreement for trans-Pacific partnership, ensuring further access to the Asian market for our industry. Finally, we suggest guaranteeing greater market access for Canadian forest products through the broad network of Canada's trade offices and promoting “Brand Canada” around the world.
Recommendation number three is for the Canadian federal government to collaborate with provincial governments, indigenous communities, other rights holders and stakeholders to develop an action plan to ensure healthy and resilient forests and support the workers and their communities going forward. We need to address the impacts of climate change, species at risk populations, and ensure resilient forests for future generations. Our approach to forest management needs to evolve and innovate. FPAC is advocating for the establishment of a national dialogue that brings together high-level decision-makers from industry, federal, provincial and municipal governments, indigenous communities, environmental groups, academia and research organizations. This forest-forward dialogue will develop a national call to action, addressing challenges, opportunities and recommendations for the forest ecosystem, forest management and forest operations.
Through innovative practices and active forest management, the forest sector is part of the solution to regenerate habitats, reduce fire hazards, and increase carbon storage in the forest and in renewable products.
FPAC also believes it is important for the federal government to provide a mandate to safety-sensitive workplaces like ours to be able to test employees in relation to the upcoming legalization of cannabis.
In conclusion, the forest products sector is a key driver for the Canadian economy and it is imperative that the government prioritize action to assist in its continuing growth. Our 2019 budget recommendations will help ensure that businesses in our industry are reaching their goals for expansion, innovation and prosperity to better contribute to the success of the over 230,000 workers directly employed in our sector.
Recently, Innovation, Science and Economic Development Minister Navdeep Bains announced a report called “Resources of the Future”. This report underlines the importance of natural resources and their role in the future economy and making Canada more competitive. FPAC strongly supports this report and its recommendations.
I'll be happy to answer any questions you have this morning. Thank you.