Debates of May 2nd, 2002

Softwood Lumber

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, my ministers met this week with the premier of the province of British Columbia and they discussed a plan of action to face this very serious problem.

I have clearly indicated that Canada is a free trading nation. The Americans know that. I have said that to the president of the United States. They cannot have it both ways, to have free trade for oil, gas and electricity and not give us free trade for wood.

[John Reynolds, Canadian Alliance, Leader of the Opposition]

Mr. Speaker, Canada is in crisis over this issue. Maybe if the Prime Minister had not gone out of his way to support Al Gore during the last election, he might have been on the phone this morning to the president of the United States on this very important issue.

The government has acted with cruel indifference to the plight of thousands of softwood forestry families, and every individual on that front bench has been offering nothing but platitudes to the industry. Nothing is happening.

We have thousands and thousands of families who should not have to wait any longer to find out what the government is going to do. What assurance is the Prime Minister going to give those families before this weekend? Put Canada--

[The Deputy Speaker]

The right hon. Prime Minister.

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, we have worked very closely with the industry and with the provincial government. It is the first time that we have a file of this nature where we have unanimity from the industry, the labour unions, the provincial government and the federal government, all making the same pitch on the situation.

Unfortunately the Americans do not want to respect the free trade agreement that they have signed with us and we have to do what is open to us, which is to take them before the WTO and before a free trade agreement panel, a NAFTA panel on this subject.

[John Duncan, Canadian Alliance, Vancouver Island North, BC]

Mr. Speaker, what we do not need today is what we are hearing: government gobbledegook on responding to the U.S. trade commission decision.

Less than half an hour ago our trade minister said that we will make the right decision at the appropriate time. That is perfect Liberal bafflegab. There is no indication that EDC or the Canadian Commercial Corporation has been engaged to develop a tariff payment scheme.

Leadership is required. When can we expect delivery?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, let us be very clear on the ITC decision. There is absolutely nothing new here. With all the decisions of a protectionist nature that the Americans have been making for a year, they have only continued in exactly the same line. There is nothing new in the ITC decision, nothing we as a government did not expect. If anything, it is a bit better than what we expected because the American producers have been saying for years that they are being injured. The ITC is telling them now they are not being injured. There is only a threat of being--

[The Deputy Speaker]

The hon. member for Vancouver Island North.

[John Duncan, Canadian Alliance, Vancouver Island North, BC]

Mr. Speaker, the only thing that is not new is the lack of urgency of the government.

Now more than ever, leadership with a sense of urgency is required. The danger is that others will rush in to fill a vacuum. This could lead to worse results than the last softwood quota agreement, which we kissed goodbye over a year ago.

Which minister is in charge, the senior minister from B.C., the industry minister, Eddie Goldenberg or who?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I can tell that the opposition is not very ready to change sides and become the government, because the opposition would realize then that in a government we work as a team. The Minister for International Trade does the negotiations with the United States and the Minister of Industry does his work as minister for industry. We had a very good discussion this morning about what he could do. The Minister of Human Resources Development has a number of programs and a number of tools. These are complementary actions by a government that knows where it is going.

I was in British Columbia on Monday. I went to a British Columbia summit on softwood lumber, hosted by Premier Campbell and we have been making very good--

[The Deputy Speaker]

The hon. member for Laurier--Sainte-Marie.

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, before the month is out, the United States will be imposing duties of 27% on our softwood lumber exports, a decision which will have a devastating impact on the industry. In Quebec alone, over 10,000 direct jobs are threatened, according to the Quebec Lumber Manufacturers' Association.

Will the Prime Minister finally admit that we must send a clear signal to the Americans of our intention to fight to the end against their unfair penalties, by immediately adopting a plan of assistance to help companies and workers hold on until the NAFTA and WTO panels rule in our favour?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, right now, I imagine that the duties will be implemented in May.

However, this morning's ruling says clearly that there is no injury to the U.S. industry; that there is a threat of injury, but no injury. This will give us an additional argument when we go before the WTO or NAFTA panel.

So, we have arguments and we also have the free trade treaty. As for the temporary measures, which the member—

[The Deputy Speaker]

The hon. member for Laurier--Sainte-Marie.

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, there is injury, but it is the Canadian and Quebec industry which is being hurt. That is the situation. And it will be months, if not years, before we have a ruling from the WTO or NAFTA panel.

Should the Prime Minister not call an emergency cabinet meeting to work out a plan of support for companies and workers as soon as possible, because people are going to lose their jobs, industries may go bankrupt, and regions will suffer?

It is up to the Prime Minister to say, “We are going to stand firm; we are going to take immediate action”.

[Jean Chrétien, Liberal, Prime Minister]

That is precisely what my ministers are doing right now. They are in touch with their colleagues in the provincial governments and with the industry to find temporary solutions to the problem with existing programs. There is no need to create new ones to deal with this problem.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, the softwood lumber ruling is now known, and it will be very harmful to the industry and to workers in the regions affected. The government must act urgently to fulfill its responsibilities.

Could the Minister for International Trade, who said yesterday that there were certain means available to help out the softwood lumber industry, tell us what he plans to do? Whis is his plan?

He has been consulting since March 22. The Bloc Quebecois has put forward its plan and now it is his turn to talk.

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, first of all, it is important to understand our position.

The ruling announced this morning by the U.S. International Trade Commission is one that we were expecting. We knew very well that it would be negative for Canada. It is as protectionist a ruling as all the others that have been brought down in the United States.

However, since it only recognizes a threat of injury to the U.S. industry and not an actual injury, it is a snub to the American producers.

Today, in the House, I am asking the International Trade Commission to release the bonds posted by producers—

[The Deputy Speaker]

The hon. member for Joliette.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, this may be a snub in the eyes of American authorities, but it is Canadian companies that will have to pay the 27.2% duties.

Since the beginning of this crisis, the minister has stated that the Government of Quebec has been co-operating and that the Bloc Quebecois has also co-operated in the search for a solution.

I would therefore ask the minister to refrain from partisan politics and to act swiftly and decisively to save the industry and jobs in the forestry sector.

Does he not believe that this crisis warrants an emergency cabinet meeting to decide on an assistance plan?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I am completely astounded. This is the ninth question we have had on the softwood lumber issue since the beginning of oral question period, and not one opposition party has asked the Americans to release the $760 million they owe the Canadian industry.

We have worked with the opposition. The House must speak with one voice and demand our due, which is that the bonds must be released by the Americans because there has been no injury to their interests or their industry.

[Alexa McDonough, NDP, Halifax, NS]

Mr. Speaker, let us call with one voice for the return of that money, but how many more forestry workers must lose their jobs before the government finally takes steps to protect their families, their communities and their industry? People want to work.

The fear of generating more complaints about subsidies is the government's lame excuse for inaction, but we know that the government has an American study that debunks that myth.

Will the trade minister move on that study's conclusion and make available to threatened companies loans at commercial rates?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, let me be very clear. I have always been clear on this very subject. I think it is important that we stand by our workers and the government intends to stand by the workers. We will stand by the communities, we will stand by our industry, and the Americans need to know that.

I have always said that loan guarantees or any other means of action were on the table, that there were a number of options that were on the table. We are consulting with the industry because the industry itself is giving us advice at this very moment about what would be the most helpful tool to help them.

We will stand with them and of course whatever we would do we would design in a way that would not be countervailable.

[Alexa McDonough, NDP, Halifax, NS]

Mr. Speaker, we do not want the government to stand by. We want the government to stand up and do something.

Forestry workers and their families are becoming more and more desperate by the hour. If the government refuses to help with loans, will it at least crank up a national housing program, long overdue? This would provide relief to the troubled softwood industry and it would also generate desperately needed housing.

With an investment equivalent to a single month's surplus, the government could create 36,000 housing units and at the same time create 46,000 desperately needed jobs. Will the government do that?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I think the leader of the NDP is putting some more options on the table, so it is very important to demonstrate that we should not make any hasty decisions, that we have to take the right decision at the appropriate time, since we have this further idea to put on the table.

At this moment I very much believe that we are working with the industry and with the workers in the industry, that come May 23 all of our options will be analyzed and chosen very carefully, but we will work as a united country.

The problem is not in the House--

[The Deputy Speaker]

Order. I think sometimes there is a problem with questions and answers being too long. The hon. member for Pictou--Antigonish--Guysborough.