Good morning, Mr. Chair and members of the committee. Thank you for this opportunity.
Allow me to begin by telling you a bit about who we are. The Coopérative forestière de Petit Paris is a 50-year-old organization based, of course, in Quebec, not in Paris. We are located in Saint-Ludger-de-Milot, in Saguenay—Lac-Saint-Jean, in the heart of the beautiful Lac-Saint-Jean area. We are a co-operative of forestry workers and all of those workers own the business. As a small and medium-sized enterprise, or SME, we are not a multinational, so the forestry sector is very important to a company like ours. It is also important to the residents of our beautiful area.
Some 300 workers are involved in the co-operative, in every area of forestry operations. We own a sawmill, a SME and one of the largest independent sawmills in Quebec. It processes softwood lumber.
I would like to address two things in particular, the current context and the importance of the recovery in the forestry sector.
First, because of the current situation, the industry is having a tough time. I would even go so far as to say that, on some levels, the situation will turn precarious if the industry's future is not properly addressed. Second, keep in mind that the recovery in the forestry sector is fundamental to the fight against climate change and regional development.
Currently, the industry is dependent on a very volatile market—the lumber market. The past two or three years have been quite devastating for businesses. Those that did not modernize before the industry began experiencing these low periods a few years ago are obviously struggling to survive these difficult times.
The pandemic gave us a slight boost, which led to an increase in lumber prices—one that is temporary. We have no idea what is around the corner. Since our market covers the American northeast, we are heavily dependent on what happens in the U.S. In the past few months, we have been able to take a breath, but we are very concerned about the future and the impact on the markets.
Furthermore, the fundamental importance of the recovery in the forestry sector cannot be overlooked when it comes to climate change and regional development. There is an imbalance as far as sustainable development is concerned. As you know, the industry is under tremendous pressure from an environmental standpoint.
Keeping that environmental balance is crucial. There is significant pressure in Quebec to increase protected spaces in various ways. Clearly, we want to achieve the government's objectives, but we face all sorts of pressure with respect to woodland caribou and endangered species, for example. The result is less forest development. Over the past decade, the volume of timber harvested has dropped by at least 10 million cubic metres annually.
I also want to point out that the regulatory regime is not necessarily geared towards the industry's needs. Quebec's forestry regime is highly restrictive, so we can't be nearly as nimble in controlling our prices. Earlier, when I talked about markets, I was to some extent talking about revenue. We have to be able to ensure high productivity while keeping operating costs under control. The current regulatory regime poses significant challenges. We have even called on the government to review the regime because it falls well short of our needs.
Lastly, proper financial support is necessary. That means robust programs to support the industry. I will give you an example. In an effort to promote sector-based development, the federal government introduced a program where 80% of the funding was allocated to British Columbia, when in Quebec, 30% of jobs are related to the forestry sector.
The sector must receive fair treatment. We really need the government's support if we are to play an effective role in the industry.
I mentioned the current context. As we look towards the future, it will be necessary to rethink certain strategies to ensure the forestry sector's survival. That brings me to two important points: one, mitigating climate change and, two, supporting regional adaptation.
The forestry sector is an indispensable partner in the fight against climate change.
First, carbon sequestration is an important consideration. Cutting mature trees, which no longer sequester carbon, and replacing them with young trees supports the capture of carbon.
Second, promoting the use of wood in all buildings and consumer products is an important avenue. By making greater use of this renewable feedstock, which has minimal environmental impact, we can achieve carbon neutrality.
Third, encouraging innovation is essential, particularly when it comes to materials such as lumber. Such an initiative would help the industry become more productive and competitive while providing added value through new products and new markets.
Fourth and finally, establishing tailored regulations and ensuring true sustainable development are of the utmost importance. Balancing economic, social and environmental interests is key. Although we are working hard to maintain that balance, environmental interests are currently superseding economic considerations.
With respect to regional adaptation, the sector's recovery will play a central role in regional development. Nearly 250 municipalities depend on Quebec's forestry sector. If we don't endeavour to preserve that, we will not be able to attract and retain workers. The regions are facing a labour shortage, one that will continue unless they can turn things around. If not, everyone will move to the major urban centres, and I'm not sure how that will do anything for regional development.
I must stress what an asset our industry is to the fight against climate change, so the government should do what is necessary to strengthen and empower the industry.