Mr. Speaker, the United States lumber lobby has influenced the United States federal department of commerce to make a political statement that will hurt not only Canadians and the Canadian lumber industry but also its consumers. Thousands of jobs have been lost in Canada and thousands more will be lost unless our two nations find a resolution. It is especially detrimental to my province of British Columbia.
The Liberal government was given five years' notice that the U.S. lumber lobby was planning to take action against our lumber industry. Our federal government did nothing or next to nothing. During last year's federal election, the Liberals still had no position on the issue. When the first tariff was levied against Canada in August, the Liberals feigned utter surprise. Politically, only the Canadian Alliance has been working tirelessly to raise awareness.
Forestry is the foundation of the economy in many British Columbia communities. The lumber, pulp, plywood, poles and other wood products sold from the interior of B.C. represent more than $2 billion in annual revenues. In my riding of Kamloops, Thompson and Highland Valleys, there are literally dozens of operations dealing with timber in various forms. Their payrolls include logging contractors, sawmill workers, truck drivers, cleaners, fallers, mechanics and engineers.
More than 30,000 people in my riding are being adversely affected by the cavalier attitude of the government toward this extremely important sector of our economy. Add to this the number of businesses that will feel the effects and the number doubles. My constituents expect the federal government to make this very big industry a very big priority.
Two weeks ago I conducted public meetings in my riding to discuss local economic conditions. The job losses in the forestry sector were the number one concern. My constituents sent a very clear message; the federal government is not doing enough to defend this industry. Their frustration was evident. They asked how they could help me to make their voices heard in Ottawa. In response I developed what I call the tree card. The message to the minister on the tree card is very simple. It states: “Do your job. Protect my job. Keep Canadian forestry alive”. At last count 2,200 cards had been printed. It is my sincere hope that they are littering the top of the minister's desk. Hopefully he will get the message.
On October 17 two sawmills in my constituency announced that they would be cutting lumber production. That will impact over 250 employees. The community of Louis Creek is anticipating a two week Christmas shut down. In the town of Clearwater 500 people have had their work hours cut.
In Chase the Adams Lake mill has laid off 150 workers for at least two weeks. Adams Lake lumber is one of the most efficient mills in North America. Jill Atkinson, a small business owner in the community said the layoff sent a chill through the town. The local grocery store has already noticed customers cutting back on their purchases. Why? The owners said these mill workers “hear there will be extensive layoffs unless we get a decent agreement”.
In Kamloops, a city of 85,000, more than 750 people have well paying jobs at Weyerhaeuser. According to Weyerhaeuser, the United States depends on Canada for about one-third of the softwood lumber used in their housing construction and remodelling needs.
That is what free trade is all about. We cannot allow special interest lobby groups to squeeze more than a fair deal out of Canadians. We should use NAFTA and the WTO to resolve the situation. Only then will Canada's lumber industry be permanently protected.
Jan Lingford of the Kamloops Chamber of Commerce recently wrote an editorial. She believes that Canada needs to stand up to the U.S. lumber interests. She said:
This is not about the U.S. lumber producer's claim that government subsidizes the Canadian industry. This is about the U.S. producers needing the economic protection only their government can provide. This is about U.S. companies that cannot compete on a level playing field, as they have not reinvested in modernizing their mills as Canadians have. This is about Washington, D.C. being run by lobbyists working to prop up their industry at our expense.
She concluded by saying:
With 50 percent of all Canadian lumber originating in B.C. this is a crisis for our province. Our federal government must make a resolution of this issue its highest economic priority.
Jan is right. We are in agreement.
The U.S. claims there are unfair subsidies given to Canada's lumber industry. This is categorically wrong. On three different occasions binational committees have found unanimously that there was no evidence that Canada subsidizes its lumber industry. Even American economists support our position. Canadian lumber prices do not vary significantly from U.S. prices and in some cases ours are actually higher.
Agreeing to a tariff is an admission of guilt and we are not guilty of anything. Imagine how people who work in Canadian forestry feel when they see the U.S. government offering protection to U.S. wood producers, while our side wavers back and forth, neither protecting our forest sector nor taking a stand for fair and just trade.
When the Minister for International Trade sits down with his U.S. counterparts to talk about softwood lumber, I want him to remember the depth of despair being felt in the communities of Chase, Clearwater, Barrière and Kamloops.
The people who work in forestry have worked long and hard to keep up with emerging technologies and environmental concerns. They have worked hard to upgrade the mills and change harvest methods. Canadian operations are efficient, well maintained and competitive. The minister has to stop being an apologist and start fighting for this industry.