Evidence of meeting #12 for Natural Resources in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.
A video is available from Parliament.
Liberal
Liberal
Liberal
Corey Hogan Liberal Calgary Confederation, AB
I have a point of order, Chair. I'm looking at the motion for this report, and I fail to see how this is in there.
Liberal
The Chair Liberal Terry Duguid
Mr. Tochor, if you could steer towards the topic that we're discussing today, I would appreciate it.
Conservative
Corey Tochor Conservative Saskatoon—University, SK
The topic is Mark Carney's inability to get a trade deal, especially in softwood lumber. His former company sold its shares in lumber before these tariffs hit, so this is very much in order with the study that we're on.
Switching over to Canada Wood Group, earlier this year, did you hear that China was the number one threat to Canada in the election?
President, Canada Wood Group
We've read the news in the papers and so on, but it hasn't—
Conservative
Corey Tochor Conservative Saskatoon—University, SK
It was from Mark Carney, saying the number one threat was China. Is that correct?
Conservative
Corey Tochor Conservative Saskatoon—University, SK
He made that promise during the election, and now, just to clarify, you're planting the hopes of the forestry sector on building more homes, not in Canada but hopefully in China. Is that correct? What has changed?
President, Canada Wood Group
Our focus is offshore, and we look at the best returns possible. We don't look at it from a political perspective; we look at it from an opportunity perspective. We obviously work with people who are working within Canada. The Canadian Wood Council is very focused on building homes in Canada, but we're focused on the offshore markets. We're focused on Japan, Korea, the U.K., Vietnam—multiple markets, not just China.
Conservative
Corey Tochor Conservative Saskatoon—University, SK
Then why did you mention China and that building homes there was the growth strategy, when earlier this year we heard that they are our number one threat? This doesn't really jive with reality.
President, Canada Wood Group
We do work in China, but as an example, we implemented the two-by-four housing system in Japan, and we built over three and a half million houses there.
Conservative
Corey Tochor Conservative Saskatoon—University, SK
Don't you think you should be building houses in [Inaudible]?
Liberal
The Chair Liberal Terry Duguid
Gentlemen, that's your time.
We're going to go on to Mr. Hogan for five minutes.
Liberal
Corey Hogan Liberal Calgary Confederation, AB
Thank you, Mr. Chair, and thank you to our witnesses. It's good to see those of you whom I've met before again.
On Monday, there was a forestry summit in Vancouver between the governments of Canada and British Columbia. Four ministers and two parliamentary secretaries, including me, attended from the Government of Canada, with officials. We met with the premier and ministers, we talked about a need for coordinated enhanced supports for the forestry sector, and we agreed that there would be coordinated enhanced supports for the forestry sector, including more funds. The need to deliver and the intent to deliver is true, not just in B.C. but across all provinces, and one of the things we discussed is that jurisdiction was going to be a component of it.
Jurisdiction was a hard-fought right for provinces, including my own, Alberta. Certainly, the federal government doesn't want to step on it, but that does create complexity, because as the federal government is working within jurisdiction on taxes, trade, environmental regulations and industrial policy, that has to be coordinated, and it can get confusing for the forestry companies that are affected.
Ms. Haakstad, you noted the complexity, and I wanted to ask you about this. You talked about faster, simpler access through a one-window approach, which is something I think makes a lot of sense. Can you expand on how you see this functioning?
President and Chief Executive Officer, BC Council of Forest Industries
Yes. Thanks, PS Hogan, and thanks so much for being part of the delegation that was here in B.C. earlier this week.
I absolutely spent time as a consultant, as well as working in a clean technology company. At the time, we accessed a program the government already has, called the clean growth hub, which is basically a concierge service for companies that need to work with the federal government to make sure they have product-market fit and that their IP stays in Canada, etc.—the things that worry most companies in the innovation space.
I think we can do the same here, so companies have a place they can go that helps them understand where they fit within the innovation programs that are going to be within NRCan and where they can reach out to BDC and EDC and the right people for the programs and credit facility opportunities that exist.
For many years, largely because of the duties situation, forestry companies have been very reluctant to ever access government programs, because they've been worried about the potential repercussions on countervailing duties.
We're not used to this. They need help. Having a single window within the department of NRCan or something like that would be an excellent opportunity for companies.
Liberal
Corey Hogan Liberal Calgary Confederation, AB
Thank you. I agree. I think it's something we need to explore.
Another thing we talked about in British Columbia was about the fact that our action couldn't just be a response to the U.S. It had to meet the moment, but it also needed to set up the sector for continued success, to grow and to prosper. We've talked about this. My firm belief is that Canada has a fundamental advantage in wood. When you get down to it, we have great high-quality fibre, access to that fibre in an economic sense, and access to capital and to markets, the essential ingredients for long-term success.
I guess this is for all our witnesses. I'm wondering what your thoughts are on things the federal government should be doing specifically to increase access to economic fibre, to increase access to capital and to increase access to markets.
Maybe we can start with Ms. Haakstad.
President and Chief Executive Officer, BC Council of Forest Industries
Sure. I'll start with something I mentioned in my opening comments, which I think is a fundamental thing the federal government can do, and that's to just get out of the areas where the provinces already regulate and have jurisdiction, for species at risk and the Department of Fisheries and Oceans.... I think there was mention of this in the budget.
Really, we need to stop having a DFO truck and a B.C. Ministry of Water, Land and Resource Stewardship surge of trucks side by side and disagreeing on what the company needs to do. That just adds complexity and cost. It doesn't protect the environment.
Board Chair, Independent Wood Processors Association of BC
I would like to point out that I know there's a lot of talk about pivoting and going to new markets. I know Bruce St.John. He's done some fantastic work in developing new markets overseas and things like that.
As I said, for our companies in the B.C. value-added sector, 70% of what we make goes to the U.S. market. A pivot to a new market is two things. Firstly, it's a five- to 10-year program. To try to take a company that's making cedar components in Delta, where all of a sudden things are going not to the U.S. but somewhere else, is a big endeavour.
I might point out that nobody knows anything better about how to repivot than the company itself. While I think it's a great idea to have some help from the federal and provincial governments in support to access markets, I don't think it's a feasible idea to get a bunch of guys around a table and say, okay, this is the way we need to go with some of our wood products to relieve.... I would just say—
Liberal
Corey Hogan Liberal Calgary Confederation, AB
I'm sorry. For clarity, Mr. Rielly, on access to markets, I did mean also our existing market and opening it. Just as a fundamental ingredient, we need to be able to access markets, and there is no replacing the U.S. market.
Liberal
