Natural Resources Committee on Feb. 26th, 2015

[Joan Crockatt, Conservative, Calgary Centre, AB]

Okay.

Diana, would you like to address that, as well as the EU trade deal and whether you see that as an opportunity?

[Diana Blenkhorn]

There are two things. The Chinese market is not a viable market for us—

[Joan Crockatt, Conservative, Calgary Centre, AB]

For the east coast.

[Diana Blenkhorn]

—for a couple of reasons. One is geographic, and the other is, as we've been talking about, the price. It is basically that our operating costs are so high that we're not competitive in that market. You have increased transportation, plus you have a price area you have to consider.

With regard to the CETA—and I will hopefully not offend anyone—we have been commenting on that to the department. CETA may have opened other doors for other sectors in Canada but for the forest products sector it actually has a deleterious effect on us. The market has been closed to us in a number of areas. We have to have notified bodies for market access for the European Union with the same standards that we apply in Canada, and that is very expensive. We have different grading requirements. I don't want to get too technical, but keep in mind that for kiln drying, which is an added-value process that was introduced some 20-odd years ago and is an internationally accepted process, Europe no longer accepts kiln drying. They want everything labelled “dry graded”.

My quick answer is that CETA doesn't work for the forest products sector in Canada.

[Joan Crockatt, Conservative, Calgary Centre, AB]

Not yet, and we have some work to do.

I want to get another quick question in here, so thank you for that explanation.

One of the things we are working on, as a government, is getting women into the skilled trades. One of the things we've seen, particularly in the area of truck drivers, is that we now have a high percentage of women who are driving those monster big trucks up in Fort McMurray. Apparently they're very good drivers. Their records are exceptional.

I just wonder if you have looked at women in skilled trades, and I can put this to all of you to see if that's a viable alternative, and if you've explored it. There are also some good programs available through the government that you might be able to access.

Diana, I'll start with you and work my way around.

[The Chair, Conservative, Leon Benoit]

Thank you, Ms. Crockatt, but you're out of time.

You can keep that question in mind, and if you want to answer it if there is an opportunity through Monsieur Aubin's questioning you can try to do that.

Go ahead, please, sir, with your questioning, for up to five minutes.

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

Thank you, Mr. Chair.

I'll give the witnesses a moment to put in their earpieces.

I'd like to begin by thanking the witnesses for being with us today and sharing their expertise on the topic before the committee.

My first question is for you, Mr. Irving.

If I understood your presentation correctly, you said you spend about $2 million a year on a variety of research and development projects.

I have the good fortune of representing the riding of Trois-Rivières. It was once the paper capital of the world. I would say we've experienced the best and the worst of times. I'm referring to the industry's near-total disappearance, because a number of companies did not evolve to ensure their renewal. The cream of the crop stayed because they invested in R and D.

Right now, in our region, we're seeing basic research, applied research and industrial applications mesh, primarily with the help of the Université du Québec à Trois-Rivières.

The university is researching new types of paper called active paper, which, for example, would make it possible to detect pathogenic elements in packaging. You said earlier that you had gone from newsprint to more value-added paper for magazines.

In your research projects, do you collaborate with universities to develop new and innovative products?

[James D. Irving]

I can answer in French, if you'd like.

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

That would be great.

[James D. Irving]

Forgive me if I make mistakes.

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

That's fine.

[James D. Irving]

We work mostly with the University of New Brunswick, but the Université du Québec à Trois-Rivières also has an excellent lab. We work with the university on studies geared towards improving the quality of our pulp and tissue, as well as other grades of paper. The facilities there are great.

Even though Eastern Canada's pulp and paper capacity has diminished, it's very important that we keep those few well-equipped institutions to work on research. Going forward, if we want to increase our capacity to manufacture value-added products, it's vital that we have institutions like Université Laval and Université du Québec à Trois-Rivières.

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

Thank you.

Something else in your presentation caught my attention.

You said training should be available even to those on EI. On that point, I would invite Ms. Blenkhorn to join the discussion.

On the job market front, since the 2013 reforms were introduced, have you noticed a problem when it comes to retaining the existing labour pool, given the new EI requirements?

[James D. Irving]

No.

We believe unemployed workers should be given access to programs to receive proper training and earn a diploma in a field that is in high demand by the industry. That's why we partner with community colleges and institutions to create certain positions in the field. Generally speaking, people stay with us. They're glad to stay in their region, especially in the province's smaller communities.

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

But I would assume that forestry workers in your area are seasonal workers?

[James D. Irving]

Our season usually lasts about 42 weeks, especially for forestry equipment operators. They can work for 42 weeks and make between $45,000 and $50,000 a year, which isn't too bad.

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

Ms. Blenkhorn, do you have anything to add?

[Diana Blenkhorn]

I don't have anything to add on that particular subject, thanks.

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

I have just a minute left, so my last question is for Mr. Martin.

I was really struck by what you said in your presentation about social innovation and the need for new thinking.

I'd like you to enlighten me and broaden my mind a little more, if you would.

[The Chair, Conservative, Leon Benoit]

Please be brief, Mr. Martin.

[William Martin]

I'll give an example of what we're doing. Social innovation is creating opportunities within our governance structure to represent the diversity of interests. Our board of directors has allocated seats for specific interest groups, including first nations, so we maintain balance from the state of governance.

Literally we're in the middle of our management planning right now. We're running public meetings, which are the basis of the objectives for the management plan, and then going back to those communities once we have a draft. We're using pretty interesting methods of workshops that allow all the voices in the room to be heard. As you may see in a typical town hall meeting, usually the most vocal people are the only voices that get heard. We're using ways of designing meetings differently so you get to hear from the diversity of perspectives.

We're applying a lot of tools and pioneering them in the forestry space in our region.

[The Chair, Conservative, Leon Benoit]

Thank you to—

[James D. Irving]

Sorry, Mr. Chairman, but could I add one thing?

[The Chair, Conservative, Leon Benoit]

Yes, very briefly, Mr. Irving.

[James D. Irving]

To your question about women in the workplace, last week we announced Women Unlimited at the Halifax Shipyard. It's off topic for forestry but it's the NSPS, your shipbuilding program that you have here in Ottawa, and it's an exciting time. Our women in the workplace have increased, and we're working hard on that one, because we think it's a great opportunity.