Evidence of meeting #3 for Natural Resources in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was products.
A recording is available from Parliament.
5:25 p.m.
Liberal
5:25 p.m.
General Manager, SEREX
I believe that we must have the courage to increase our requirements. We spoke earlier about the percentages of renewable fuel: 2% for diesel—
5:25 p.m.
Liberal
5:25 p.m.
General Manager, SEREX
—and 5% for gasoline. In other countries, these percentages are much more ambitious.
Maybe I can answer in English.
5:25 p.m.
General Manager, SEREX
We must be more proactive. We need two things to encourage biofuels. The government must set minimum thresholds, which we must actively try to reach, and we must support the market.
For example, on the north shore, in Quebec, a company produces pyrolytic oil. The company is Æ Côte-Nord Canada Bioenergy, and it has ties to Arbec Forest Products. Its plant was built with considerable assistance from the federal government under the investments in forest industry transformation program, or IFIT. The company currently can't sell its products to the United States because the political situation doesn't make this possible. Canada has no market for these oils, even though it's a renewable fuel.
The United States has a program that allows consumers to purchase renewable fuels for the same price as fuels on the market. The difference is covered by oil companies. When the price of oil drops, the subsidy increases. This is called the renewable fuel standard program, or RFS. We need this type of program here. We can't use the excuse that the price of oil is low and that renewable fuels aren't on the market. We can't wait for the price to go up. We must set a price accordingly to encourage manufacturers.
5:25 p.m.
Liberal
The Chair Liberal James Maloney
Thank you, Mr. Weiler.
Mr. Simard, you have two and a half minutes, followed by Mr. Cannings for two and a half minutes. Then we're done.
5:25 p.m.
Bloc
Mario Simard Bloc Jonquière, QC
I have a quick question.
Mr. Renou, I liked when you said that, in this race to produce bioproducts, there could also be a place for provinces such as Alberta. Traditionally, when we talk about forestry sector jobs, these jobs are mostly in Quebec, where we find 31% of them, in British Columbia and in Ontario.
Given this bioproducts stream, do you believe that Canada could see major economic development that would both combat climate change and diversify jobs in Alberta so that we don't focus solely on the oil and gas sectors?
5:25 p.m.
President and Chief Executive Officer, FPInnovations
Absolutely.
As I said earlier, we need chemical engineers and organic chemists in several areas of expertise that currently exist in the oil sector. Talent must be transferred from the oil industry to the bioeconomy. For some jobs, this will be more difficult. However, these two sectors must fit together. I'll go even further and include the chemical industry.
In Sarnia, Ontario, for example, there are many people on the chemical industry side, and the forest industry is becoming entrenched in the chemical industry. The transformation is there. It involves bringing the forest industry into new streams and transferring people from one sector to another to achieve all our goals together.
5:25 p.m.
Bloc
Mario Simard Bloc Jonquière, QC
Mr. Dallain, you were about to give examples of work accomplished at SEREX using biosourced products. You spoke about the possibility of making glues for the construction industry. I don't know whether you have any other examples of this nature. However, when I visited you, I saw chipboard panels, for which there were no buyers.
In your opinion, shouldn't we work on marketing innovative secondary and tertiary wood processing products?
5:30 p.m.
General Manager, SEREX
Yes, of course. This would reduce the risks associated with marketing these new products. It would be good to have some help with market acceptance.
For example, in Europe there's a great deal of wood fibre insulation. Here in North America, this hasn't happened yet. We know that the need will be there and that we're able to produce it. However, this requires major investments in plants, which involves a certain amount of market risk. That's why I think that I have—
5:30 p.m.
NDP
Richard Cannings NDP South Okanagan—West Kootenay, BC
Thank you.
I'll close by asking Mr. Nighbor another question. Getting back to trade, I think you mentioned in your initial statement that things were looking up or that we're okay with our trade situation with China, and you mentioned in passing that you were hoping that the government could help us perhaps increase our trade with other Asian countries. I assume you meant countries like India and other growing economies.
I'm just wondering what you think the prospects there are and what the government can do specifically about some of these value-added products like engineered wood. Is there a real opportunity for Canada to take its expertise and use it to increase our trade prospects in Asia?
5:30 p.m.
President and Chief Executive Officer, Forest Products Association of Canada
That's a good question, and given where we're at with global protectionism, I never rest easy about how trade is going anywhere. There is always going to be risk there.
As that middle class and that rural part of China continue to grow, we do see opportunity for more value-added products. When it comes to value-added exports to Asia, Japan tends to be a country that looks for that high quality and high value. If my colleagues from Canada Wood were here, they would talk about growing market opportunities in China, just based on the middle class growing and on those rural economies having more opportunity, and, definitely, in Japan.
My advice to government is to keep doing what you're doing. There has been tremendous commitment through previous governments to support Canada Wood within those export strategies, with great open communication. We have offices over there. Anyway, keep doing what you're doing.
5:30 p.m.
NDP
Richard Cannings NDP South Okanagan—West Kootenay, BC
Okay.
Perhaps for you and Mr. Renou, where is the National Building Code at and how can we help with that?
5:30 p.m.
President and Chief Executive Officer, FPInnovations
We are working hard on the National Building Code to get all of those performance elements of the code in everywhere. We need continuous help from the government to support our removing all of the roadblocks for wood to penetrate the construction industry, by pushing those performance-based codes as we go along.
We are progressing, but it's going to be a task that keeps going on and on for all time.
To make sure we use the right material at the right place is all we ask, and wood is the right material at multiple places.
5:30 p.m.
Conservative
Bob Zimmer Conservative Prince George—Peace River—Northern Rockies, BC
Mr. Chair, on a point of order, I just want to flag for you that we seem not to be getting the documents in a timely fashion before the meeting. Maybe there were translation issues around that, but I just got the documents a little while ago. If we could see to it that we could get a bit more time with those documents, it would be appreciated. I know many of us didn't receive them before the meeting.
I'd appreciate that.
Thank you, Chair.
5:30 p.m.
Liberal
The Chair Liberal James Maloney
That's a valid point. As I mentioned earlier, I didn't get them either, but keep in mind that this meeting was put together on very short notice and that some of the witnesses didn't receive an invitation until Friday afternoon or early this week. I think this is going to be an anomaly, but going forward I'll ensure that it is a priority.
Thanks for bringing it up.
5:30 p.m.
Conservative
