Debates of Oct. 5th, 2001

National Security

[John Manley, Liberal, Minister of Foreign Affairs]

Mr. Speaker, we have no border between Canada and Mexico.

I think that the member is well aware that the situation between the United States and Mexico differs completely from the situation between Canada and the United States.

It would of course be more complicated if we were to try to discuss borders from a trilateral point of view.

[Stockwell Day, Canadian Alliance, Leader of the Opposition]

Mr. Speaker, we are a bit disillusioned. We thought the new era of perestroika that the minister was bringing in yesterday was a refreshing sign, but he is beating a hasty retreat now.

The area in discussion, a secure perimeter, has been talked about by the U.S. ambassador, the former ambassador to the United Nations, provincial premiers and key community leaders. They are all talking about having a secure perimeter. It is not the only thing that should be done, but it is one of them.

What does the minister have against their idea of a secure perimeter and why does he say it is simplistic?

[John Manley, Liberal, Minister of Foreign Affairs]

Mr. Speaker, what I have tried to explain is that we are not looking for a simple way of trying to characterize the steps that need to be done. Everyone acknowledges that there are steps that need to be done to assure everyone of our safety and security after September 11.

As for the notion that there is a quick and easy fix to that, in reality there are many departments and agencies of both governments that need to work closely together in order to deal with the myriad of issues that relate to safety and security. It is not just simply a matter of putting up some kind of barrier around fortress North America.

The Economy

[Ken Epp, Canadian Alliance, Elk Island, AB]

Mr. Speaker, the Americans and some Canadian leaders are taking extraordinary steps to conquer an extraordinary attack on our security and economy. Instead of just echoing the litany of half measures the finance minister has taken in the past, will he please tell Canadians what extraordinary measures he is taking or planning to take to counter the anticipated downturn in the economy and employment?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, there is no doubt that we have suffered as a result of the events of September 11. Let me assure the House that we are very closely monitoring the fiscal situation in Canada. We are taking steps to work with the international community because the global economy has been impacted by those events. We will continue, as we have in the past, to exercise very prudent economic stewardship in Canada. This means, as the Prime Minister said and as the finance minister said, that we will have an economic update--

[The Speaker]

The hon. member for Saint-Hyacinthe--Bagot.

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, for the past week, various ministers of the government have been appearing before standing committees of the House, claiming to have plans for dealing in the short term with the exceptional situation that has resulted from the tragic events of September 11.

Has the government assessed the costs relating to these short term plans, since we still do not know all that is involved?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, we are very much aware that the Bloc is calling for $5 billion from us. They are demanding a reduction in contributions. But we have already done that. They are calling for EI reform. We have already done that.

They have asked us to do something for the airlines. We have already done that. They have asked us to do something for small and medium size businesses. We have already done that within our taxation system.

[Some hon. members]

Oh, Oh.

[An hon. member]

He is not even answering the question.

[Jim Peterson, Liberal, Willowdale, ON]

But we--

[The Speaker]

The hon. member for Saint-Hyacinthe--Bagot.

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, could we please have someone serious to answer our questions?

Yesterday, the Minister of Finance told us that he too had an overall plan to deal with the situation.

I am asking the government, someone serious in the government, what the Minister of Finance is going to propose as an economic recovery strategy in Washington at the G-7 meeting this weekend, when there seems to be a complete inability here to support the economy and employment.

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, there is one thing I must tell the hon. member. Our government is going to do its best to avoid a deficit. That is vital. We must continue to be responsible in our administration.

Softwood Lumber

[Betty Hinton, Canadian Alliance, Kamloops, Thompson And Highland Valleys, BC]

Mr. Speaker, yesterday my colleague from Vancouver Island North informed the House that Indonesia successfully negotiated the removal of U.S. tariffs on Indonesian plywood. That move was made to bring Indonesia into the coalition against terrorism.

Since Canada is also a member of this coalition, why has the government not asked the United States to remove the countervailing duty against Canadian softwood lumber?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, frankly I am amazed by the question from the opposition. We have been asking for removal of the countervailing duties of 19% from day one. We have been saying for months that we are trading fairly in the United States and now we are being asked if we asked the American administration to eliminate the 19% countervailing duty.

I have asked. The Prime Minister asked as well when we met with President Bush. We are doing a lot of very serious work, really constructive and long lasting work on the softwood lumber issue.

[Betty Hinton, Canadian Alliance, Kamloops, Thompson And Highland Valleys, BC]

Mr. Speaker, then maybe the hon. minister should find a better way to ask. As the Indonesian plywood deal made very clear, the United States is now making trade and other economic concessions to its coalition partners.

MPs from all parties agree that the duty against softwood lumber is damaging our forestry industry. Will the government listen to Canadians and their representatives and take action to save the nearly 50,000 jobs that are in jeopardy?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I will tell the House one thing. The Government of Canada will not negotiate our friendship and support for the United States at this time. Our friendship is not conditional. We will fight the terrorists around the world with the Americans and we will not negotiate our support of the Americans at this time.

We will continue to do everything we can to do good work, as we have been doing during the past few days on the softwood lumber issue.

They should do their homework better and not negotiate our future.

Employment

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, today Statistics Canada released its unemployment figures for September. Therefore would the Minister of Industry provide the House with more details of this report?

[Brian Tobin, Liberal, Minister of Industry]

Mr. Speaker, as the Minister of Finance and the Prime Minister repeatedly have said, the economy of Canada is fundamentally solid at its base.

As we have seen today, Statistics Canada has released a report which demonstrates that the unemployment rate for the month of September has remained the same as the previous month at 7.2%, notwithstanding these difficult times.

Further, the Canadian Federation of Independent Business has released its own survey today which shows that business confidence among small and medium sized enterprises remains strong as well.

We have some serious challenges, but we have an economy that is fundamentally strong and Canada will recover quickly if it comes down to it.

Foreign Affairs

[Bill Blaikie, NDP, Winnipeg—Transcona, MB]

Mr. Speaker, my question is for the Minister of Foreign Affairs, whom I applaud when I hear him say he does not want to give up on the idea of a country. I would ask him not to give up on the idea of parliament either and consider whether or not parliament should be consulted before any decisions are made rather than after the fact.

My question for the minister actually has to do with the lifting of sanctions on Pakistan. I wonder if the minister could give us any indication whether or not any guarantees were given or sought on the part of Pakistan with respect to nuclear testing and the--

[The Speaker]

The hon. Minister of Foreign Affairs.

[John Manley, Liberal, Minister of Foreign Affairs]

Mr. Speaker, in removing the sanctions previously on India, and this week on Pakistan, in both cases we have made it clear that the decision to do so does not reflect any change in our disapproval of their nuclear policies.

In addition it does not extend to trade in military goods or nuclear co-operation. Furthermore, we made it very clear, and I did so personally to the foreign ministers of both countries, that we expect both sides to use a great deal of restraint in their dealings between each other at this very sensitive moment.

Energy

[Bill Blaikie, NDP, Winnipeg—Transcona, MB]

Mr. Speaker, I am glad to hear all of that but I wonder whether there were any commitments. My question is for the minister responsible for energy.

Given the report in the paper today that the government might be considering selling off what interest it has in Petro-Canada, I wonder if at this time when there is uncertainty in the energy sector what the wisdom is of selling off what little possible leverage the government may have in the energy sector. We might come to a point where we want to be able to use Petro-Canada or expand our ownership in it.

Could the government say, please, that it is not considering such an option?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, I appreciate the representation to the government of the people of Canada by the hon. member but surely he does not think that I would be so naive, standing here in the House of Commons, to speak on behalf of the government on such a sensitive matter which could impact on the stock markets of Canada.