Debates of Nov. 13th, 2007

Opposition Motion—Manufacturing and Forestry

[Paule Brunelle, Bloc, Trois-Rivières, QC]

moved:

That, in the opinion of the House, the government should immediately establish a series of measures to help the manufacturing and forestry sectors hard hit by the rising dollar and increased competition from new players in the field of low-cost mass production, specifically including a program to support businesses that wish to update their production facilities, a series of investments and tax measures to support research and development in the industry, the re-establishment of an economic diversification program for forestry regions similar to the one that the Conservatives abolished, a review of the trade laws to better protect our companies against unfair competition, and better financial support of workers affected by the crisis in the manufacturing sector.

Mr. Speaker, I will be sharing my time with the hon. member for Shefford.

The crisis affecting the forestry and manufacturing sectors is unprecedented. This is, without question, the worst crisis we have ever experienced. All industry stakeholders agree on this. What we need is action. Everyone agrees that the situation cannot go on like this—everyone except the Conservative government. It alone is happy with a laissez-faire approach. It is content to give tax breaks to the rich western oil and gas companies, while Quebec's manufacturing and forestry sectors are facing a crisis.

Here are some facts: since December 31, 2002, 135,000 manufacturing jobs have been lost in Quebec, which translates into one in five workers. Since the Conservatives came to power in 2006, 65,000 jobs have been lost. Approximately half of the 275,000 jobs lost in Canada during this period were jobs in Quebec. Every one cent increase in the value of the Canadian dollar against the American dollar threatens 19,000 manufacturing jobs.

Let us now turn to the forestry sector. Between May 2002 and April 2005, a total of 10,000 jobs in the sawmills and paper plants were lost. The forestry sector represents nearly 100,000 jobs in 240 towns and villages in Quebec that are today threatened by decline. The urgent need for action is obvious. Every 1¢ increase represents $500 million in lost revenue for the forestry industry in Canada. The Forest Industry Council estimates the loss at $150 million for Quebec. I repeat: the situation is serious. It threatens the industrial base of our economy. That is why the Bloc Québécois is using this opposition day to remind the Conservative government that urgent action is needed.

We know there are problems. The Standing Committee on Industry, Science and Technology spent nearly a year studying various recommendations. It submitted a report in February 2007. After all those hearings, the Standing Committee on Industry, Science and Technology made 22 recommendations. Of those 22 recommendations, the Conservative government agreed only to the accelerated capital cost allowance, which actually helps Alberta’s industries and damages Quebec’s economy. As a result, in proposing this motion, the Bloc wants measures to be taken immediately.

We have solutions. We have proposals. The first proposal for solving this crisis is to implement a program to support businesses that wish to update their production facilities. We have to implement a program of loans and loan guarantees to help businesses modernize. We know that these businesses are in bad financial shape. We know how hard they are finding it to borrow on the markets, which means they have to pay a risk premium, and so the interest they pay goes up. The government has to help these businesses. It must guarantee loans for such businesses, so they will be able to update their production facilities, to modernize, and so be able to get through the current crisis.

We are also proposing a series of investments and tax measures to support research and development. The government has to improve the fiscal support provided for research and development and for innovation in business. It has to expand the types of expenditures that are eligible, for example by including the cost of obtaining patents or the cost of training people to work on innovative projects. The government has to make the research and development tax credit a refundable credit. Certainly there is no point in giving tax cuts to businesses that are not making profits. Giving businesses that invest in research and development refundable tax credits, however, is a large part of the solution.

The federal government has to support research; it must cancel the cuts it has made to the Technology Partnerships Canada and instead increase its funding and reinvigorate all of the leading edge sectors that the Conservatives have abandoned. Leading edge sectors like pharmaceuticals, environmental technologies, new materials and new production technologies have been left to their own devices. Contrary to what the government claims, tax cuts are not the solution to every problem.

Another solution would be to bring back an economic diversification program for the forestry regions similar to the one that the Conservative government cut.

As a member from a resource region myself, I know very well what difficulties a region can face when its main source of economic activity disintegrates. The Bloc is going to pay particular attention, therefore, to the resource regions affected by the current crisis in the forest industry which desperately need to diversify their industrial base in order to deal with the situation.

We should bring back a support program to help diversify the regional economies that have been hit hard by the downturn in the forest industry. There should be tax breaks for companies that operate in resource regions. Among other things, we should encourage companies to help skilled workers find employment in the regions. There should be a program to support the production of energy and ethanol from the forest industry's waste.

The Minister of the Economic Development Agency of Canada for the Regions of Quebec cancelled the special program we used to have specifically for the regions affected by the crisis in the forest industry. That is the government’s laissez-faire policy. There was nothing on this in the Speech from the Throne or in the finance minister’s economic statement. There is an urgent need for action.

Our trade legislation also needs to be revised in order to protect our companies better against unfair competition. Canada’s anti-dumping legislation goes back to the days of the cold war and is completely out of touch with the new realities, especially the emerging economies and China. There is an urgent need to put Canadian trade law on the same footing as the trade law of the other industrialized countries, particularly the United States and the countries of the European Union. That is what the hon. member for Terrebonne—Blainville has proposed in Bill C-411, An Act to amend the Special Import Measures Act (domestic prices). We will return to that later.

The Conservatives have decided not to make use of the trade legislation that makes it possible to provide temporary protection for our companies and gives them time to adjust to the new realities and modernize. We can only dream of a government with some vision that would protect the jobs in our districts.

The final element is financial support for the workers affected by the crisis in manufacturing. Employment in this sector has been devastated. Some 135,000 manufacturing jobs have been lost in Quebec, or the equivalent of one worker in five since December 31, 2002. Quebec has been especially hard hit by the slump, and the arrival of the Conservative government has only made things worse. Since January 2006, about 65,000 manufacturing jobs have been lost.

Given the situation, the government must revisit its position on enhancing the employment insurance program. The Bloc has been proposing for years that real improvements be made to the employment insurance program and, in particular, that the benefit period be increased by five weeks for all regions, no matter what the rate of unemployment. Benefits must be increased from 55% to 60% with the calculation based on the 12 best weeks. The qualifying period should be eliminated and the minimum number of insurable hours needed to qualify should be reduced to 360 hours.

Employment insurance is a right, not a privilege. Workers and companies pay for employment insurance. Together, they establish measures to meet needs in the event of difficult times. We are now in difficult times, but the employment insurance program is nowhere in sight. Furthermore, what are we to make of the lack of a program for older workers who have been the victims of massive layoffs? My colleagues will tackle this later. This is a very important element.

The Bloc Québécois is well rooted in its communities. The Bloc Québécois supports Quebeckers, who are seeking solutions and a resolution to this major crisis for Quebec. Therefore, with this opposition day, we must convince the government that there is an urgent need for action. The future of our communities is at stake.

It is very urgent that action be taken and I urge all my colleagues in this House to vote in favour of this motion.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I congratulate the member for a very good speech, which raised some issues.

One of the terms she used was that this was a laissez-faire Conservative minority government. Others have called it a fend-for-yourself government.

The facts say that the government is actually hurting by not doing anything. It is costing jobs and our economy. We are now becoming more vulnerable. The industry committee made 22 recommendations on exactly these points. The government has acted on only one and even then it was a watered down version.

The member knows very well that the softwood deal was a very bad deal for Canada. The South Korean deal on trade with the automobile sector is another and there are after market parts. Our auto caucus met with the CAW and with the Automobile Manufacturers' Association. They told us that if we were to enter a free trade agreement with South Korea, as it is written now, it would cost Canada another 33,000 jobs and another $8 billion of lost revenue.

This is the kind of thing that happened. It is not laissez-faire nor is it just fend for yourself. The government is damaging our manufacturing sector. Maybe the member has more examples.

[Paule Brunelle, Bloc, Trois-Rivières, QC]

Mr. Speaker, I certainly agree with my colleague. It is clear that laissez-faire does not cut it as an industrial policy.

As members of this House, we are responsible for taking action and asking our government to show some vision, to look ahead to what will happen with our economy over the next 10 years, and to try to identify development factors so that it can come up with a real industrial policy.

The work has already been done. As our colleague pointed out, the Standing Committee on Industry, Science and Technology has addressed the issue. Recommendations have been made. We are making recommendations today, and we are building on that work. The government simply cannot get involved in more free trade agreements. Apparently, the government is contemplating twenty or so agreements without having thoroughly analyzed the consequences.

We certainly cannot add insult to injury by giving in to a laissez-faire policy and thereby exacerbating the situation. I do not think that workers, including those in Quebec, would ever forgive us for that.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, I would like to congratulate my colleague from Trois-Rivières on her speech and thank her for introducing this motion, which is particularly appropriate under the circumstances. In Quebec, 240 towns and 100,000 jobs depend on forestry. Between 2001 and 2005, 10,000 jobs were lost. Since then, 25,000 more jobs have been lost, many of those during the Conservatives' time in power.

Right now, I can see the member for Roberval—Lac-Saint-Jean, who was recently elected because, in his campaign, he took a stand with people in the forestry industry. He promised to fix the problem by persuading his government to adopt measures that would provide jobs to alleviate the crisis in the forestry sector.

I would like to ask my colleague about the Conservative Party's stance on the situation she just described and its refusal to give a royal recommendation to the employment insurance bill.

What should people think of the Conservative policy, which is contrary to the interests of Quebeckers? What should they think of it, given the approach we are adopting this morning?

[Paule Brunelle, Bloc, Trois-Rivières, QC]

Mr. Speaker, the people from Quebec are rightfully very critical of the Conservative Party's positions. Let us remember that, a few years ago, the goal of the Government of Quebec was to create 100 000 jobs. It now seems that some people have no problem with the loss of thousands of them. It is really a tragedy.

People judge a government through its actions. But in this case, inaction is the rule. We should remember that the employment insurance fund does not belong to the government. The government does not contribute to it. It is unthinkable that a person can work all life long, pay employment insurance premiums and then, when the plant shuts down — often as the only employer in town —, this person ends up living on really insufficient income support measures. If you are lucky, you will survive by using up your capital, in other words by selling your house and everything else you have, because the help which was supposed to be available through EI is not there when you need it.

The government does not feel any sympathy and has no will to end this. It does not want to help older workers by setting up a program which would allow them to end with dignity a life of hard work and which would give laid-off workers between 55 and 64 years of age the benefits they need to bridge the gap until they start receiving retirement benefits from the Régie des rentes.

This situation is unacceptable. Workers are being denied their right. The government will certainly be punished for its inaction.

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, first, I would like to denounce the inability of this government to run this country. It is a useless government, a laissez-faire government. During the next 10 minutes, I will have other terms to describe this Conservative government that is running the country. What good is it to the citizens of Quebec and Canada to have a government that takes a laissez-faire approach and does not actually do anything for them?

It is clear that it is easy for a government to run the country with a budgetary surplus of $20 billion. It is easy to take that money, to spread it around, here and there, to win political advantage. That is easy; anyone can do that.

However, when the time comes to deal with a situation like the one our industry is going through, to propose real solutions to save that industry or to save employees from the loss of their jobs, what does the government do? Absolutely nothing. What has it done lately and in the last few years? It has caused the loss of 135,000 jobs, including 65,000 in Quebec. That is what a Conservative government does: nothing

It reduced the GST by one percent. What does that mean? It means that they have reduced the price of all products, including those coming from China, all those exports that a third country is dumping on us, loading us down with all kinds of products that we cannot compete against. In fact, we cannot specify a price for those products, because the restrictions imposed make it impossible to determine a true price.

So, they reduced the price of products from China by one percent. Then, they found that was not enough; so, what did they do? They lowered the GST by another one percent. Every time they lower the GST by one percent, they lower the price of products. This benefits not consumers but producers. And those producers, in Quebec like elsewhere, produce even more Chinese products. We need to be careful.

What were the Conservatives thinking of when they decided to lower the GST? Of one thing only: consumers will be glad to have one percent more in their pockets. However, the Conservatives do not think any farther than the end of their noses. In fact the end result is just enough for everyone to buy a cup of coffee at the end of the month. I do not think that is the amount of money the Conservatives want to have in their pockets.

What is the second thing that the Conservatives did? They recognized that the industry was not doing well and they agreed to set up a committee that examined the manufacturing sector for almost a year. As my colleague mentioned earlier, 22 recommendations were made. I heard some members say that the Conservatives acted on one of these 22 recommendations. However, they forgot to mention that it was only a partial implementation, not a full one. Indeed, our committee had asked for an accelerated capital cost allowance over a five year period, but the government applied it over two years. It does not listen to anything or anyone. It asks for studies, but once these studies are completed, it simply throws them away, without even looking at them. The government relies on a piecemeal approach, but it does not even bother to take a look at the various aspects.

Sometimes, I wonder whether the Prime Minister has two brains: one that benefits Alberta and the other that takes into account the rest of Canada, including Quebec. Sometimes, I wonder if one of these brains has not gone astray, with the other one looking for it.

Moreover, the government is considering tax cuts for corporations. That is unbelievable. Who is this government trying to buy? Who is it trying to please? Obviously not the companies that are experiencing difficulties, because they do not pay taxes. So, who benefits from this measure? Once again, it is big oil companies and large corporations that are making money. Companies that are making profits do not need tax cuts, since they are already making money. If the government wants to help companies, it should target those that are experiencing difficulties. But the government still does not understand that. In fact, there is a lot that it does not understand.

From the time we started seeing the loss of jobs here and there each week, it seems to me that it should have understood. Recently, there has been an increase in the number of complaints from people in the territory of the former industry minister complaining about the government’s inertia. From one end of Canada to the other, we hear people wondering where these Conservative MPs are. They have plugged their ears. I cannot understand how they can do absolutely nothing.

Then, when they talk about tax cuts to help consumers, what do they try to do? They try to buy votes. That is what they are trying to do—buy votes with a $20 billion surplus. That is not the way to help the economy. They are not helping the economy. This tax cut has to show up not only in consumers’ pockets, but also in the Canadian, the Quebec, economy. That is where we need to see it.

Why do I say that? On the one hand, taxes are being lowered, sure. On the other, the Canadian dollar is fluctuating while the American dollar remains stable or decreases. We read in the newspapers that people who save money on their taxes will use it to go shopping in the United States.

What was this government thinking? I do not know. I do not understand, because the economy that should be encouraged should be our own. But now taxes are being cut to encourage the American economy. That does not make any sense. What is this government’s reasoning? I do not know. Where did it get this idea? I do not know that either, but it should switch advisers. No argument could convince me that this is one of the best things it has done to boost the economy. It is not boosting it; it is only making it worse. There is nothing good about it.

What is this government doing? Every time it does something, it is to win votes in the next election. This is not what they should be doing. Jobs are being lost and it is time to work on keeping them. But the government is still not doing anything. I look forward to the time when they wake up and decide to do something intelligent. But I do not think that will happen. I am discouraged. We have to take up a supply day to try and get through to the MPs of a government that claims to promote good governance. Let me think about that for a second. This government is promoting good governance but only for itself and its lobby.

What is more, as I said, industry is the one to profit from the tax reduction. If memory serves, the figure for the reduction for all Canadian oil companies is $40 million. Really now. Those companies have already been gifted with $250 million. Where will it end? When there are no industries left in Quebec? This is an important sector of the economy of Quebec, the one on which the livelihood of just about everyone in Quebec depends. And yet, what is being done about it? Not a thing.

From where I sit, this looks like an attempt to sell us out to the United States. If our money ends up in the States with cross-border shoppers, there will be no economy left over here. The government must stop thinking that this will sort itself out on its own, because it will not.

Another thing. Again, going by the figures given, I have heard at one point that the Conservative government had given $37 million to Canadian industry. That is $37 million out of $20 billion! Does the government think that is enough to save industry? The members of this government are totally oblivious. They see nothing. There is no future for them in politics. There is no future for industry. I do not know what is going to be done, but the government will have to get a grip, or jobs and industries will be lost in Quebec. If nothing is done to improve the industrial situation, things will keep on going in the same way. Nothing has been done to improve the industrial situation—absolutely nothing! I keep on saying this because I am convinced of it. What else could I say, Mr. Speaker?

We believe there are ways. We are not here just to complain.

We are here to present recommendations, to tell them what they need to do, since they are incapable of coming up with their own ideas.

There are recommendations for loans and loan guarantees to encourage investment, industrial modernization and updating of production facilities. This seems clear to me. It does not take a rocket scientist to figure that out. If they have not, we will know what conclusion to reach about them.

There have been program cuts. How many programs has the Conservative government cut back? Then they realize that the cuts were in the wrong place and the program needs to be reinstated. So they do so, under a new name. This is the kind of party that bankrupts itself and then starts up again under another name in order to look good. I for one have had enough of people who just do not think.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I listened with great interest to my colleague's dissertation. The only point on which I would disagree with him is when he said that the government did not understand what it was doing. I would suggest that the government understands full well what it is doing.

The government is stripping the fiscal capacity of the federal government to ensure we have a balanced economy across the country. Certain regions will make the kinds of profits that have never even been imagined and other regions will be left to disappear. The upper class, the banks and the big oil companies will profit while the rest of us are left to disappear.

I would suggest that it is not just in Quebec. Across northern Ontario, mill after mill has disappear and the economy of complete towns has been wiped out like an economic neutron bomb.

The government members do nothing but snicker and make snide remarks because they know their plan, if fully implemented, will allow their base, which are the big banks and big oil, to make out of this period with unprecedented profits while the rest of us will be left behind.

I would like to hear my hon. colleague's comments on this perspective.

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, I agree with my colleague. In my opinion, he understands the situation that I wished to denounce today.

I hope that the Conservatives will come to the same realization as the other members of this House. I hope that they will sleep on it and bring something tangible to the table to save our industry. These industrial sectors are the economic engine of the country and of Quebec and are important.

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, listening to the hon. member's speech just proves to me evermore that the Bloc just does not do its homework.

The hon. member said that nothing has been done but the truth is that the Bloc has done absolutely nothing. Bloc members voted against our economic update. In other words, there were $60 billion in tax cuts for businesses, manufacturing and families. They claim that they support manufacturing but they voted against the economic update.

The hon. member talked about the 22 recommendations of the Industry committee, on which he is a member. The Conservative government has moved on 21 of the 22 recommendations. He said that was nothing.

In other words, the $400 million for the Windsor-Detroit border, he calls that nothing. The $500 million for labour retraining, he calls that nothing. The creation of an older workers program, he calls that nothing. The accelerated capital cost allowance, he calls that nothing. Advancing science and technology and research and development, he calls that nothing. The review of the shared tax credit, he calls that nothing.

It is clear that the Bloc wants higher taxes. It wants to stall the economy. We have the lowest unemployment in 32 years.

The Bloc claims to support manufacturing but the radical Kyoto environmental policies that it supports are known to kill manufacturing. How does the member resolve these two opposing and hypocritical positions? I want to know that and Canadians want to know that.

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, it is evident that they understand absolutely nothing. We talked about one recommendation, but now there are 21. This political party is trying to mislead Canadians by saying anything that will make them look good.

I do not see the extraordinary accomplishments of these people. Can it help to be a member of the Conservative government? In one Conservative riding in Quebec, 60 employees of Prévost Car were laid off. Now the Canadian government has decided to order 30 buses from Germany. Can you tell me why? A Conservative member spoke to his Prime Minister but he was unable to obtain a contract for his riding because the contract was given to Germany. That is even worse.

Today, we also note that, in the riding of the former Minister of Industry, companies that have been around for 60 years are closing. Yet no one in this House has risen in their defence. His community has told this government that there is a serious problem. This member, who is also a member of the Standing Committee on Industry, Science and Technology, should not forget that.

For one year, we said that the value of the dollar was too high. When the value is too low, that is all right, but when the value climbs and the cost of gasoline is too high, that is not good for industry. Has he forgotten?

On the weekend, I paid $1.12 per litre for gas. I do not think that paying $1.12 per litre for gas will help those in industry. It does not help when our dollar is worth $1.08 or $1.10 against the American dollar. That does not encourage industries to buy Canadian.

[The Deputy Speaker, NDP, Bill Blaikie]

Resuming debate. The hon. Parliamentary Secretary to the Minister of International Trade and to the Minister of International Cooperation has the floor.

[Brian Pallister, Conservative, Parliamentary Secretary to the Minister of International Trade and to the Minister of International Cooperation]

Mr. Speaker, I am pleased to have this opportunity to respond to the question asked by the member for Trois-Rivières concerning the forest industry and what the government is doing to help that industry.

As stated in the recent Speech from the Throne, the government will stand up for Canada's traditional industries, including forestry, which are currently being challenged. Our government has taken action to support workers as these industries adjust to global conditions and will continue to do so.

Mr. Speaker, I will be sharing my time with the member for Roberval—Lac-Saint-Jean.

The hon. member for Trois-Rivières is right to point out that the forest industry is facing numerous problems. That is a reality. Indeed, these problems include high fibre costs, falling U.S. demand, the rise in the value of the Canadian dollar, and increased energy and production costs.

I would like to remind my colleagues that in the 2006 budget the Government of Canada announced an investment of $400 million over two years to strengthen the long term competitiveness of the forestry sector, a key sector, and to promote worker adjustment among other things; hardly laissez-faire.

I would also like to take this opportunity to once again remind my colleagues of the wide ranging benefits of the 2006 softwood lumber agreement to the Quebec forestry sector, an agreement which was supported and continues to be supported by the provinces and by industry.

Thanks to the efforts of our government an agreement was concluded with the United States, an agreement that received the support of Quebec and of the other major softwood producing provinces in Canada. In addition, this agreement also enjoyed the support of a clear majority of the industry players.

During the negotiations with the United States we worked very hard and we worked cooperatively with the province of Quebec, as well as the other provinces and the forest industry to take their interests into account. It is in the spirit of this agreement that the agreement stands as a clear reflection of those collaborative efforts.

Second, it is important to note that the agreement returned duties collected by the United States and ended all litigation. On that point, it should be noted that Quebec has received over $1 billion of the $5 billion returned to the Canadian industry.

The return of these funds marks a significant infusion of capital into the industry and was a benefit to workers and communities across Canada. It has helped industry weather these difficult times marked in particular by a sagging U.S. housing market.

In addition to the fact that the agreement allows Quebec to safeguard the management of its forests, it provides at least seven years of stability to the softwood lumber industry. In addition, as provided for in the agreement, border measures will not apply to softwood lumber exports from 32 countries which include all of the Quebec border mills.

The agreement also prohibits the United States from taking trade remedy action for the life of the agreement, thereby protecting our exporters from the unpredictable and crippling U.S. trade action which in the past saw duties rise to as high as 27%.

The government is not operating alone on this issue. The government has continued to consult very closely with industry and provincial officials. Federal officials continue to hold one on one and industry group meetings with forestry companies to understand their needs and their concerns. In addition, federal and provincial government officials meet regularly to discuss matters related to the implementation of the agreement and to the state of the industry.

The result of this close stakeholder collaboration on the softwood lumber agreement was and is the single best way forward for this industry and the hundreds of thousands of Canadians in communities that rely on it every day.

I can also reassure my colleague from Trois-Rivières that the Government of Canada has continued to work rigorously on this file, well beyond last year's coming into force of the agreement. The softwood lumber agreement establishes a formal institutional framework for the governments of Canada and the United States to manage the softwood lumber file and to address issues that arise over the life of the agreement.

The agreement provides for the establishment of a softwood lumber committee to supervise the implementation of the agreement, oversee its further elaboration, supervise the working groups established under the agreement and consider other matters that might affect its operation.

In exercising its functions, the committee is encouraged to establish and delegate responsibilities to working groups or expert groups, and to seek expert advice as is necessary. Indeed, at its 2007 inaugural meetings, the softwood lumber committee established five working groups to address both technical subjects, such as data and reconciliation, permits and customs issues and scope issues, and also longer term policy issues identified in the softwood lumber agreement such as regional policy exits and lumber made from logs harvested from private lands and log export restraints.

The committee has now met twice, most recently a couple of weeks ago in Ottawa, helping to ensure that implementation and administration of the agreement proceeds effectively, efficiently and smoothly, thereby providing benefits to industry.

Moreover, as the hon. member for Trois-Rivières is undoubtedly aware, the softwood lumber agreement also established mechanisms to assist the lumber industry reap the benefits of the highly integrated nature of the North American economy. An example of such mechanisms is the Binational Softwood Lumber Council, which is comprised of 12 industry representatives from both sides of the border and whose primary focus is increasing cooperation between the United States and the Canadian softwood lumber industry.

One of the key objectives of the Binational Softwood Lumber Council is to strengthen and expand the market for softwood lumber products in an effort to make North America's lumber industry more competitive over the longer term.

An equally important objective of the council is to build stronger cross-border partnerships and to create a climate of trust at all levels of the industry. We are not so much competing against one another as we are building things together in these two countries. These are essential elements for any industry striving to operate successfully in today's highly integrated global economy.

We understand that the forestry sector is undergoing difficult times. The reality is that North America has a highly interdependent lumber market. Its current weak condition has been caused by a decline in the U.S. housing market, around 30% year over year, which has reduced demand for wood products.

As I mentioned at the start, we are also, as we know, facing a rising Canadian dollar and stiffer competition from emerging markets that have lower fibre production costs. These factors have resulted in a far worse impact on the lumber industry and would have resulted in a far worse impact on the lumber industry in the absence of a softwood lumber agreement. The return of $5 billion has helped companies weather the current difficulties.

The government continues to listen to the concerns of our forestry communities. We are working together to develop solutions to the problems that they are facing.

As we have always maintained, both Canada and the United States have an interest in ensuring that the agreement operates smoothly and will continue to work closely with forestry stakeholders to achieve this goal. We should never forget that we are one another's most important commercial partners. The $1.7 billion worth of trade that flows across our border each and every day attests to that fact. In fact, that nearly all of this trade is able to move with very few disputes is an accomplishment in itself.

Through the assistance of the Trade Commissioner Service and our embassies abroad, the government is working with the Canadian forestry industry to find new trade opportunities in foreign markets. Every day our trade commissioners overseas find new buyers and communicate new trade deals to the Canadian forestry and wood products industry.

In addition, the Department of Foreign Affairs and International Trade has provided funding support to the sector in its efforts to undertake various international business development initiatives through the program for export market development for trade associations.

As I just highlighted, mechanisms established by the agreement to assist the lumber industry exist through the work of the Binational Softwood Lumber Council. It is important that industry stakeholders on both sides of the border work together to look at new and innovative ways to confront the challenges that the industry is currently facing. The agreement and the work of the Binational Softwood Lumber Council is facilitating this dialogue, which can help create an environment within which the softwood lumber industry can prosper; an industry that is important for so many workers, communities and families across this great country.

The softwood lumber agreement is a good reminder of how Canada and the U.S. can work through our own domestic challenges, turn our focus to creating a more competitive North American lumber industry, and work together to find new outlets for North American lumber in world markets. The SLA has been, and continues to be, a positive factor for the Quebec forest industry and the communities that derive their livelihoods from it.

While recognizing the current challenges faced by the forestry sector, there is no doubt that this agreement has benefited the provinces and their forestry stakeholders by providing lumber producers with a return of duties, putting an end to longstanding litigation, and providing predictability and stability that has eluded the sector for far too long.

I will conclude by saying that this government will continue to keep an open dialogue with the forest industry and with provinces to ensure a prosperous and long-lasting agreement that is to the benefit of Quebeckers and all Canadians involved in the forestry sector.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Speaker, I have a question for the member, who is a new member of the Standing Committee on International Trade.

What does he think of the current situation when he is being told that 130,000 manufacturing jobs have been lost in Quebec since December 31, 2002 and, of that number, 65,000 have been lost since the Conservatives came to power? He is telling us that his government has done everything possible to help the forestry and manufacturing sectors as a whole.

What concrete policies have been implemented since the Conservatives came to power? I repeat, of the 130,000 lost jobs, 65,000 have been lost since the Conservatives took office.

I would also like to draw to his attention Bill C-411, which was brought forward by my colleague from Terrebonne—Blainville. This bill sets out criteria to identify dumping by countries that send their products to us. It is aimed at helping us adjust to both American and European policies and limit dumping in Quebec and Canada.

I would like to know what the Secretary of State for International Trade intends to do in order to stop the loss of jobs in the manufacturing and forestry sectors.

[Brian Pallister, Conservative, Portage—Lisgar, MB]

Mr. Speaker, I sincerely look forward to working my colleague, the hon. member for Sherbrooke, in our mutual responsibilities at the international trade committee.

There are a number of important issues, and none more than this, but he understands full well the dynamic nature of the changes affecting all countries in their adjustments to the realities of global competition. He understands that it is an asymmetrical circumstance. He understands as well that each sector of our economy is affected differently as a consequence of the changes we are experiencing as a nation. We are not in isolation in experiencing those changes.

However, he asks specifically about measures that have been taken.

When the member cites unemployment figures in one sector of the economy, it is fair to acknowledge that unemployment levels in our country are at historic lows at this juncture. It is also fair to acknowledge that in la belle province the rate of unemployment currently is around 6% and that this rate is at its lowest level in perhaps 15 years. This is an indication of the ability of Quebeckers, the ability of Quebec enterprise, of small, medium and large business, to adapt and to transfer the capabilities and the skills held in those businesses in new and creative ways to create job opportunities. Quebeckers have the ability to do that, just as do the members of the small, medium and large business communities across our country. They have the ability to refocus and transition into ways that will allow them to grow, expand and prosper, and that is precisely what they are doing.

Highlighting employment figures in one sector is easily done and has a purpose to it, but the reality remains that the consequences of adaptation and of globalized marketplaces are very real and cannot be ignored.

I was surprised somewhat to hear—

[The Deputy Speaker, NDP, Bill Blaikie]

Order, please. I am sorry to interrupt the hon. member but I want to try to get at least two questions in the five minute period.

The hon. member for Rimouski-Neigette—Témiscouata—Les Basques.

[Louise Thibault, Independent, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, there is only one thing on which I agree with what the member said, that is that Quebeckers obviously have the ability to adapt.

However, I do not understand why, in his speech, he spoke more about the past than about the present and the future. Here and now, in many regions of Quebec and elsewhere in the country, people have lost their job. There are small and medium businesses, as well as large companies in the forest industry, among others, that have no future.

What people want to know from their minority Conservative government is what it will do now. In the past, it refused, for example, to provide loan guarantees. It bragged that it left $1 billion to the Americans under the agreement. It still pats itself on the back. It tells us about the $400 million. But what did it do with the $14 billion that it applied against the debt? What concrete action will it take for people who legitimately want to work in the forest industry in Quebec and elsewhere and who are going through a crisis?

[Brian Pallister, Conservative, Portage—Lisgar, MB]

Mr. Speaker, the hon. member raises the question of measures that have been undertaken by this government, and I could list a few. Certainly the $70 million older worker adjustment program, of which the province of Quebec has benefited to the tune of approximately $30 million, has assisted in a real way in bridging older workers either to retirement or other options they may choose to pursue.

Unemployment levels in the province of Quebec, as I mentioned earlier, are at a record low level, so that speaks rather well to the ability of Quebeckers to respond to challenges.

The member asked me to comment on future initiatives. The trade department is providing funding for the forestry sector specifically. For the international business development, trade commissioners' offices are working very diligently to provide that kind of advice, the lead generation, the opportunities that the industry looks forward to benefiting from in the future.

The return of the $5 billion, much of that going back to the province of Quebec, has provided the transition. I would also mention that the exemption of the Quebec border mills is something that will assure this part of the industry, at the very least, the total absence of duties on an ongoing basis.

As well, the binational softwood lumber council and the very real—

[The Deputy Speaker, NDP, Bill Blaikie]

Order please. I am sorry, but the time for questions and comments has expired.

Resuming debate, the hon. member for Roberval—Lac-Saint-Jean.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Mr. Speaker, it is a privilege for me to speak today about what the government has done and is continuing to do to support the Canadian forest products sector.

The forest products sector is a dynamic contributor to the Canadian economy, generating some $80 billion annually. It also accounts for 3% of gross domestic product. Canada is the largest exporter of forest products in the world, and the most efficient. This sector is also one of the largest employers in Canada. It provides close to 900,000 direct and indirect jobs in 300 small localities and rural communities from Newfoundland and Labrador to Vancouver Island. These are well-paid jobs, characterized by high technology and strong productivity.

However, members on both sides of the House know that this sector is facing some serious problems. The world forest products market is fluctuating along with demand. The sector is prey to considerable pressures due to the rising value of the Canadian dollar, high energy costs, the mountain pine beetle infestation in western Canada, and competition from low-wage producers in Asia and South America.

The sector and the government have to work together to ensure that Canadian producers remain competitive. For its part, the sector has embraced new technologies, sped up productivity growth, adopted environmentally friendly practices at the international level, opened new markets and created new products. It knows that to remain a leader it must be at least as effective as all of its competitors worldwide in adopting new ideas and technologies.

In promoting competition, innovation and success, the government is now creating a healthy commercial environment for all industries, including that of forest products.

We are doing this within the framework of Advantage Canada, our strategic economic plan directly based on the challenges facing all industrial sectors. In continuing to reduce taxes and red tape, in building modern infrastructure and in encouraging a more qualified and educated work force, we are laying the foundations for economic growth, more market opportunities and more choices, for individuals as well as businesses.

Complementing Advantage Canada, our government has recently launched consultations on ways of making the tax incentive program for scientific research and experimental development more effective for Canadian companies, and of allowing it to play an even more important role in promoting a more competitive and prosperous economy.

We are streamlining the review of major natural resource development projects and reducing red tape and regulatory burden for businesses. We are investing in human resources, skills and training so that manufacturers can have access to the most educated, skilled and flexible manpower in the world. We are investing in our infrastructure so that manufacturers can take advantage of economic opportunities in Canada and abroad.

Budget 2006 gave an economic boost to manufacturers and to all Canadians. Budget 2007 continues on this path. We eliminated the federal capital tax, we reduced the small business tax rate and we enhanced the capital cost allowance, with a two-year deductible for tools and equipment, in order to stimulate cash flow and investment. We did not stop there. This government just provided its support to Canadian manufacturers and processors with a tax relief of $2.6 billion in the economic statement.

Through our new tax reduction initiative, Canada will have the lowest general tax rate on new business investments by 2011 and the lowest statutory tax rate by 2012 among G-7 countries. This will increase productivity, stimulate employment and improve prosperity.

The government is clearly working on creating a favourable environment for all industries. We are doing the same thing for the forest product industry. We have taken measures that are aimed specifically at supporting that industry.

During the fall of 2006, Canada and the United States eliminated one of the biggest obstacles this industry had ever faced, namely the softwood lumber dispute. Less than nine months after coming to power, the government kept its promise and resolved this longstanding dispute.

The softwood lumber agreement finally put an end to years of costly litigation and brought economic certainty to businesses, communities and workers in Canada. It allowed our softwood lumber producers to recover over $5 billion Canadian in deposits, which represents a considerable injection of capital for the industry.

The resolution of the softwood lumber dispute clearly shows our government's commitment to this industry.

Canadians asked our government to negotiate a settlement that would provide stability to the industry and that would protect the livelihoods of workers, communities and families in Quebec and Canada.

In addition to the resolution of this dispute that went on for several decades, the government announced, in the 2006 budget, a $400 million investment to support the long term competitiveness of the forestry sector, to address the pine beetle infestation in western Canada and to facilitate worker adjustment.

We are also honouring the following commitments. Last fall, that is in October 2006, the government announced a new shared-cost program with the provinces and territories: the targeted initiative for older workers. This two-year program is aimed at helping up to 10,000 older workers who have lost their jobs in communities where the local economy is plagued by chronic unemployment or where industries, such as forestry, are affected by downsizing and closures.

This year, our government announced measures aimed at reducing the pine beetle infestation and its impact on forests and communities in British Columbia. Developed in collaboration with the Government of British Columbia, the global strategy against this infestation includes measures to prevent it from spreading east and to help affected communities in developing new forest products, markets, sectors and services, in order to insure their long-term economic well-being.

We have also announced $127.5 million in funding to help the forestry sector increase its productivity in the long term. The initiatives—promoting forest innovation and investment, expanding market opportunities, establishing a new national pest strategy and creating a Human Resource Forest Sector Council—will help build the environment we need for our forestry sector to compete internationally.

Our government has supported and will continue to support the forestry sector in Canada. The Speech from the Throne highlighted the continuous commitment of our government toward supporting the main traditional industries in Canada, including the forest industry as well as manufacturing, fishing and tourism.

As I said, we have helped workers in these industries from the beginning of our mandate and we will continue to do so, as evidenced by the measures we have taken so far and those which we will be implementing in the future. It is clear for Canadians and it should be clear for the members opposite as well. Actions speak louder than just words.

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, I understand there are many industries linked to the forestry sector in the riding of the hon. member for Roberval—Lac-Saint-Jean. I would like to know if the tax cuts granted by his government will apply to those people. Personally, I doubt it, since they have no income to tax.

He said nothing in his speech about how to improve the industry's economy. There was no mention of this in the words he spouted here today. He simply told us what the government has already done. We do not want to know what it has already done. We want to know what it will do today and in the future. We know what has already been done, that is, 65,000 jobs have been lost.

The other Conservative member said we have the lowest unemployment rate in Canada. I would like to point out to the member that the workers in the manufacturing sector who lost their jobs are now forced to work in the service industry, which pays less. This is causing economic losses in all the regions.

What does his government intend to do, beginning immediately, to stop businesses from closing because the dollar is too strong? The government does not yet seem to understand that Americans will not buy our goods, because our dollar is stronger than theirs.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Mr. Speaker, I thank my colleague for his question. I would remind my friend that 75% of the measures announced in the economic statement directly benefit Canadian taxpayers and that 25% of the measures benefit businesses. Consequently, every Canadian will benefit from what was announced with regard to the lowest personal income tax rate, the reduction in the GST and all the rest.

As my friend said, I come from a region where the forestry sector is the largest in Quebec, the RCM that produces the most lumber in Quebec. When I am in my riding, I meet forestry workers, industry workers, every day.

We are working, as we have done in the past, to find solutions for the industry. The Prime Minister will announce those solutions in due course. Nevertheless, we are working every day. All the members of the Quebec caucus are working every day with their colleagues from across the country. The Bloc can talk all it wants; we will act and we will find solutions.

[Roger Valley, Liberal, Kenora, ON]

Mr. Speaker, my colleague mentioned that he comes from a large area that has many forest industries, which the Kenora riding had too, but there is not much left thanks to some of the policies of the current government.

The member started off by talking about what the Conservatives have done, but they have done nothing. They have sold out to the softwood lumber deal. Four mills in my riding in northern Ontario have just announced two and a half months of down time because of it.

The member said that the government put an end to expensive litigation. When good friends such as Canada and the United States have disagreements, they have to go to court to solve those disagreements. It was expensive to be there, but we were on the right track. It cost the government a billion dollars to give the softwood lumber industry away. The Conservatives gave it to the people who were fighting us.

With the strong Canadian dollar, what is the government prepared to do today for all the families in northern Ontario, Quebec and everywhere else who no longer have jobs? What is the government prepared to do to make sure that we get those plants up and running? There will have to be new programs because everything the government has done to this point has not worked.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Mr. Speaker, as we have said and as the Prime Minister also announced following the throne speech, we are going to continue to develop and introduce programs and measures to help workers in the forestry industry and other sectors across the country.

We are continuing to do everything in our power to analyze the situation and come up with practical solutions that will achieve our objectives, which are to help workers, of course, to help the industry go further and to enable Canada to remain the world's largest lumber exporter.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, based on the commitment the member for Roberval—Lac-Saint-Jean just made, I understand that he will vote in favour of the motion introduced by the member for Trois-Rivières, because that is exactly what is in the motion.

He told us about things that have been done, past programs that have been revived and that have led to job losses.

Can the member for Roberval—Lac-Saint-Jean, who based his campaign on commitments to the forestry sector, tell me, yes or no, whether he will vote in favour of the motion of our colleague from Trois-Rivières?

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Mr. Speaker, the Bloc Québécois campaigned in my riding by introducing a bill affecting Quebec and its regions that concerned the entire Canadian and Quebec forestry program.

While we campaigned to represent our fellow citizens, they introduced a bill. To date, as far as I know, two bills from this party concerning name changes to ridings have been passed.

So it is easy to come into the regions of Quebec and say that they will introduce a bill that will enable the forestry sector in Quebec to move forward, and then to ask the members who were elected what they will do in other sectors.

The Bloc Québécois has once again introduced a bill for everyone in our riding that ends up sitting on the shelf.