Mr. Speaker, I sought and obtained the permission of the Chair for this emergency debate on softwood lumber—and I take this opportunity to thank the Chair—because I had been struck by the very difficult situation and the judgment and firmness required of the federal government in dealing with the current offensive by the U.S. government.
As the House knows, March 31, 2001 marked the end of a five-year agreement, the ultimate purpose of which was to manage the softwood lumber trade, despite a free trade agreement which should have covered this sector. People realized that the agreement had particularly penalized Quebec with respect to the quantity of softwood lumber it was allowed to export. This is also true for other provinces of Canada. It must also be recalled that the maritime provinces were not affected by this agreement. The result was therefore an increase in exports in New Brunswick, particularly in ridings bordering on my own, which was due solely to the punitive aspect of the agreement for Quebec and for the other provinces concerned.
We therefore decided collectively that a return to free trade was necessary, that we had to develop a common collective stand in order to be sure to have a strong position against the Americans. We had foreseen the present situation, which is a very difficult one, particularly for regions like the one I represent, including the RCM of Témiscouata, where the lumber industry is the main industry.
There are many plants whose future is now very uncertain because of the 12.58% anti-dumping duties imposed by the Americans in addition to the countervailing duties of 19.3%, which had already been imposed. So we are talking about almost 32% in duties which have been added on top of the regular price. Companies are being asked to make a profit, pay their employees and run their operations cost-effectively all the same. If this were allowed to go on, it would be completely impossible for them to succeed.
There is light at the end of the tunnel. As regards the decisions the tribunals and quasi tribunals will have to make in this dispute, we have had considerable success in the past and we may well win on the essence of the issues. However, we are facing a difficult period now. The Americans are putting on maximum pressure with the means at their disposal. I heard Mr. Racicot, the representative of the American president, say he expected a solution by Christmas.
A solution by Christmas is probably what everyone wants. However, we want no unacceptable compromise. I think there are three options to determine who our allies might be.
The behaviour of the Americans is really very difficult to understand. First, it seems to be more of a lobby of businesses than of consumers. It is to the advantage of American consumers—and they are aware of it—to have Canadian and Quebec lumber available on the American market. It means, for example, that houses can be built for less, which allows for a better return on their investment in their house or construction of other sort.
However, the business lobby is very strong and very much present. We have seen it in the past. It is our opponent. We must present arguments to consumer associations, use support like we got from the owners of Home Depot, who, as major intermediaries in the sale of lumber, know that the entire American market benefits from having Canadian and Quebec lumber available.
The American position is even harder to understand given that the American economy needs a boost. At the moment, things are not exactly rosy in economic terms. Adding the anti-dumping and countervailing duties raises the price of Quebec and Canadian wood on the American market and, consequently, it costs more to build houses at a time when a hand is needed to get the economy back on its feet. This too is hard to understand.
This also means that there is a necessity to play on the American stage. If there is one thing that the Canadian government has not done enough of, it is intervening more aggressively with the president of the United States, via the Prime Minister, repeating what he has already said, but adding all other arguments required.
The consumers must also be approached, and as I have said, the American stakeholders, so that they will be even more convinced that they will not be successful in the end, and would be better off working at finding something acceptable. As far as acceptable things are concerned, I have drawn up three hypotheses about what can happen.
The first one is an agreement to restore what died on March 31, 2001, something that would, in my opinion, not be very beneficial to either Quebec or Canada. It would even be absurd for us to revisit that solution, after the pitched battle that we were involved in to win our case, and now to beat a retreat and again accept an export tax, either a permanent one or one that would be for five or ten years, as was the case previously, but without a return to free trade in the end. That, to my mind, is unacceptable.
The second hypothesis is that we must have a position that is firm enough to take us to the decision stage with a tribunal or quasi-tribunal, where we have a good chance of winning. At that point, we would revert to free trade.
The third hypothesis to be looked at is not necessarily the outcome of negotiation, but may have been nourished by the discussions over recent weeks and those yet to come in subsequent weeks, and that is a return in the long term to free trade.
If we could negotiate an agreement whereby, over the next five years, in a gradual manner, we could end up with free trade, and the U.S. would acknowledge the fact that, indeed, in the end, we would end up with free trade, we would have won a major victory for the softwood lumber producers of Quebec and Canada. We would also be able to guarantee jobs for the people back home.
I will end my presentation on that. Right now, it is the workers in the mills and the people in the forests back home who are paying the heaviest price in this fight for a free softwood lumber market between Canada and the U.S., and Quebec too, and it is these workers who are being asked to make a considerable effort of solidarity.
I think we should be able to expect the federal government to come up with support measures that do not contravene free trade when it comes to softwood lumber, but that would allow, for example, through the employment insurance plan, to qualify with a minimum of hours.
The Bloc Quebecois proposed setting the minimum at 420 hours, as is the case right now for all of the regions with high unemployment, while ending the discrimination against youth, those who are coming into the labour market for the first time.
We also asked that the maximum benefit period be extended by five weeks. The minister once told me that about one unemployed people in five uses the maximum benefit period to which they are entitled. Currently, because of the economic slowdown triggered by the September 11 events, in the regions affected by the softwood lumber crisis, there are many more than one unemployed person in five who will use the maximum benefit period. There could be two or three in certain regions.
Allowing these people to get five additional weeks of benefits and perhaps make it to the next production period should alleviate the reform's negative impact.
It is also important that the government use some of the money stashed in manpower training programs. A little over $250 million are available but are currently not accessible by the provinces under the manpower training agreements.
The federal government should make this money available to allow more people who have lost their jobs because of the softwood lumber crisis to get training in a different area.
In conclusion, the situation we are facing is not an easy one. We feel it is important for parliamentarians to be able to express their views, to be able to represent what their constituents want. I did the rounds in my riding on this issue. I asked plant workers if they agreed with the position we had taken to get the Americans to agree to free trade. We had fairly widespread support on this.
Now we must deliver the goods and ensure that workers, those who are losing their jobs, those who are penalized by the situation, have the necessary tools.
What I want is for the Government of Canada to continue to take a firm stand with the U.S. government for a return to free trade for softwood lumber, and to take into account as much as possible the particular situations in each province. In Quebec, we obviously showed, five years ago, that there were no unwarranted subsidies in this area.
I hope that the final solution will give the softwood lumber industry of Quebec and of Canada free access to the American market. I think this is what we deserve with our production and with all the efforts that have been made on this issue by all stakeholders.