Madam Speaker, I am pleased to speak this evening to elaborate on a subject that is very important to me, which is the situation in the iron and steel industry in Quebec and in Canada. I will also express my disappointment in the ambiguous answer I received from the Secretary of State for International Financial Institutions on October 3.
Above all, I would like to stress the importance of the iron and steel industry to Quebec and Canada. There are 17 steel works in Canada, including five in Quebec, two of which are in the riding that I represent in this House. These steel works employ more than 35,000 people, including some 10,000 in Quebec alone.
The steel industry in the town of Contrecoeur, in the riding of Verchères—Les-Patriotes, provides at least 3,000 people with steady employment. This significant industry to Verchères—Les-Patriotes, Quebec and Canada periodically experiences difficulties. It has been under a great deal of pressure since the United States imposed penalties on countries, excluding Canada, that had been proven to dump steel on their market. Quebec and Canadian markets have more been susceptible to dumping ever since.
In March of 2002, the Minister for International Trade was quoted as follows:
If we see any major changes in steel imports into Canada, we will take very prompt action.
We know that such changes did occur, however, and the government did absolutely nothing. What is more, we know that several ships carrying some 80,000 tonnes of reinforcing steel are about to set sail, or may be en route already, for ports in Quebec, the Great Lakes or the east coast.
To give hon. members some idea of what this represents, 80,000 tonnes is the equivalent of the annual output of Stelco McMaster in my riding. The importation of that much cheap steel would have a heavy impact on Canadian and Quebec steel mills, leading to reduced production, temporary or permanent closures, and all the job losses this would entail.
What does the government intend to do about this most disturbing situation? Nothing, if we are to believe the answer of the Secretary of State for International Financial Institutions. I did, however, suggest that the Minister of Finance implement the decision brought down on August 19, 2002 by the Canadian International Trade Tribunal, which would have no repercussions for Canada, since the United States was excluded.
We know that the government is reluctant to implement the tribunal's decisions on steel since several of them involve the United States and it would be difficult to reciprocate by excluding it from the application of the tribunal's decisions without having legal action taken against Canada by other countries under the provisions of the World Trade Organization.
The Secretary of State for International Financial Institutions tried to cloud the issue by answering, and I quote:
—the government is seized with this issue. The government is very much aware of the problems of the international steel market caused by overcapacity and cheap imports. The overcapacity is a global problem that we are attacking on several fronts—
He went on to talk about negotiations within the OECD regarding this overcapacity problem.
We know what brilliant solution this government has to offer with respect to the Canadian contribution to regularizing steel production worldwide: to let market forces operate and let the steel mills in Canada and Quebec that are not competitive enough die. That is at least what officials from the finance, industry and international trade departments candidly told members of the parliamentary steel caucus on April 22, 2002.
It is time to take action and to take bold steps to help the steel industry in Canada and Quebec.