On the issue of competition policy, the challenge we have been facing in our industry with federal competition policy is twofold. One is that in its application the bureau has reviewed recent transactions, and while it has not stopped any recent transactions, in a number of cases it has imposed conditions on the transactions that have resulted in the sale of assets. It has significantly slowed down the conclusion of the transactions, and it has also created a chill on further consolidation within the industry.
The industry is relatively small compared with its competitors. In some segments, in particular, such as the solid wood products sector, where there have been a number of recent mergers, it is quite an unconsolidated industry, comparatively speaking, when looking at manufacturing as a whole. So I think we start from a position of small size, and we are in a world where the competition is getting bigger and getting stronger. One way to address that is through economies of scale, so you can reduce your costs of capital, you can improve your service, and you can put more money into R and D.
In terms of the question about rail, Mr. Chair, I don't see any contradiction in our views. Our members are serviced by rail, but the majority of our mills only have access to one rail line. This gives the railways monopoly power over pricing to our mills, which is a much different starting point for an industry starting with relatively small companies and no global pricing power.