Mr. Speaker, first I congratulate my illustrious colleague for the work he has been doing for several months on the softwood lumber issue.
It is obvious that the federal government must take action as quickly as possible. May 23 is the fateful date where very high duties will take effect against the lumber industy in Canada and in Quebec.
Of course, the Canadian government intends to challenge this decision. But how long will it take to settle the issue? At least several months, but it could take as long as two years. Meanwhile, what will become of the lumber industry as a whole, namely companies but most of all the employees whose livelihood depends on the industry?
The lumber industry in Quebec comprises 250 plants and 35,000 jobs. The governments simply cannot leave these people to fend for themselves while the lawyers are arguing with each other.
For the benefit of those following the debate on the prestigious parliamentary channel—and as we know millions of people do so every day during their lunch break—I remind the House that the United States is blaming the Canadian government for charging lumber producers stumpage fees that are too low.
However, we must not forget that the American forest industry is comprised of several large landowners who for years have been charging high prices for their wood in order to protect their own interests. These prices are high and may even ultimately be too high.
Therefore, when we analyze the situation, we compare our prices based on our natural resources, which are abundant, to the high prices charged in the United States. Also, if we take into consideration the efficiency of our employees and our lumber plants, our costs appear to decision makers to be much lower than those in the United States.
However, we know that in the United States the forests belong almost exclusively to large businesses. Here, in Quebec, 90% of the forests are public lands and, of course, the government determines stumpage fees on the basis of the wood market. At first glance, this creates no problem. Fees are determined on a market basis. However, because prices in the United States are high, too high actually, it is difficult to compare the two situations.
One has to wonder what was, exactly, the role of the negotiators for the Government of Canada in these negotiations. Could it be that they were not aggressive enough? I do not mean this badly. Could it be that they were not forceful enough? Were they not able to prove that, obviously, the lumber industry in Canada is not subsidized, or is not overly-subsidized compared to the United States, and that everything was fine? The decision is, to say the least, unfair to Canada and Quebec.
There is another problem that exists. May 23 is fast approaching. Currently, the softwood lumber industry is experiencing something pretty unusual. Indeed, softwood lumber exports from Canada and Quebec are booming. Really booming.
What will be the impact of this in terms of short term problems? Not only are softwood lumber exports booming, but it is not just any old lumber being exported. It is the grade A select lumber. It is quality lumber at a price that benefits the U.S., but in the end, also benefits the industry here.
What will be the overall impact of this? Two things may happen. Obviously, a shortage. It is now the month of May, construction work is beginning. There is a great deal of construction and the prices have already been guaranteed.
Of course the shortage may have the effect of pushing prices up both in Quebec and in Canada. Around $15,000 worth of lumber is used on a $125,000 house. This may rise to $20,000 in the near future. This may have considerable consequences on the construction market too.
Second, there will be more second and third grade lumber. We know that poor quality lumber is more difficult to work with than a Liberal member of parliament, we can be sure of that, with the exception of a few colleagues. Incidentally, I wish to thank the member for Abitibi--Baie-James--Nunavik, who supports the Bloc Quebecois motion, unless I am mistaken. Is that not what I heard earlier? Yes, there are a few members who do bear their full load. Therefore, I congratulate the member.
Nevertheless, the problem affects the entire construction industry. In the short term, we know there are major problems.
I admit that what I have done recently is just a quick analysis. Things in the Eastern Townships are a little better, but certain regions in Quebec and Canada are going to be considerably affected. At this time, of course, there must be assistance for the softwood lumber industry workers. There is no doubt that times are going to be hard. If things drag out for two years more, 24 months, there is a risk of a shortage, after this period of heavy exports to the States, and soon there will be a drop in demand here as well.
I have analyzed one of the solutions and recommendations by the Bloc Quebecois. There have been investments in affordable housing and in construction. However, the government could, in addition to direct assistance to workers and industry, also commit to major social housing construction projects, ones even bigger than initially planned.
According to a rapid calculation, the price range on these could be, depending on whether there were four or six units, from $13,000, to $15,000 or $16,000 in lumber per unit. At the moment, there is a need in Quebec for approximately 8,000 social housing units. This is in addition to any promotion of new residential construction for potential first time homeowners.
An action plan could be drawn up, therefore, to assist in development and construction per se, in order to compensate for part of the shortfall. We realize that this will not cover all the costs of exporting to the States, which would come to some $500 million.
A multitude of measures should be initiated in order to remedy the problem in the short term, and the medium term of course. I trust that, in the meantime, the government will not stop its efforts to demonstrate to the Americans that the price of Quebec and Canadian lumber is a fair one, considering our natural resources, the efficiency of our industry and the work done here.
It is high time that the government stopped twisting like a 2x4 made of fir. I always had problems with the French expressions “se faire passer un sapin” and “se faire passer une épinette”. I have always used the first one, while others use the second one. I have solved the problem and I know why.
At Christmas time, when we go and get a fir tree, we might get a spruce tree instead. However, when we build a house, we want spruce. If we get fir, the house will be all crooked and twisted.
I hope that the Liberal government will not try to “nous passer un sapin”, but that it will ensure that softwood lumber and the softwood lumber industry in Quebec and in Canada will be adequately defended.