House of Commons Hansard #15 of the 39th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was jobs.

Topics

The House resumed consideration of the motion.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3 p.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, coming myself from a region deeply affected by the forestry crisis, I am glad that we can debate this issue today. This is something of great concern to the population of Saguenay-Lac-Saint-Jean, and more particularly the workers of the forestry sector.

For some time now, the Bloc Québécois has been demanding concrete measures to help the manufacturing and forestry sectors. The Liberal and Conservative governments in recent years have ignored the grave crisis suffered by many resource regions in Quebec.

I would like to take the few minutes given me to say more about the forestry sector, which affects many thousands of individuals in my region, and the measures that could be taken to mitigate this crisis.

The forestry crisis afflicting Saguenay-Lac-Saint-Jean and many other regions of Quebec is far from being solved. The Conservatives claim to have invested a few million dollars in the forestry sector. These measures are clearly inadequate in light of the economic crisis that is deeply affecting the resource regions of Quebec and Canada. And the rise of over 25% in the Canadian dollar since the beginning of the year, in relation to the American dollar, is becoming a double blow for the people.

The merger a few months ago of Abitibi-Consol and Bowater is in some ways a consequence of this crisis. At present, no reorganization plan has been presented by the American company in spite of the numerous concerns of the population and the workers of Saguenay-Lac-Saint-Jean.

The new company will have some 5,500 employees in the region and will control close to 75% of the forestry resources. It will have to make some important economic decisions. These are two companies in financial difficulty that have merged. Many are expecting job cuts in view of the crisis affecting the forestry sector.

With the emergence of wood from China and new industry conditions, many companies will have to carry out major lay-offs in the coming months if no measures are put in place by the Conservative government.

Recently local leaders and several heads of sawmills, including those at Petit-Saguenay, Saint-Fulgence, Roberval and Saint-Félicien, have said they are worried about their future. Bad news is regularly heard. I give you some examples. Last week, Abitibi-Consol announced the lay-off of some 80 workers from the LP engineered wood plant in Larouche, in addition to the announced closing of the Scierie Lemay, which will affect 83 employees by the end of November.

In a number of communities in my region and in Chicoutimi—Le Fjord, the effect of the crisis in recent years is already being felt. One of the largest forestry cooperatives in Quebec, located in Laterrière, went bankrupt in 2004. That bankruptcy has had an indirect impact on many sawmills in Saguenay-Lac-Saint-Jean. The six forestry cooperatives in my region have lost 1,000 jobs in the last seven years.

What this means is that the two Conservative members for my region, the members for Jonquière—Alma and Roberval—Lac-Saint-Jean, have to stand up for the interests of Saguenay-Lac-Saint-Jean, as I am doing today. Their silence is unacceptable. They have a duty to persuade this Conservative prime minister to propose a plan to combat this crisis.

The Bloc Québécois has been trying for several months to get the Conservative government to grasp the reality of this crisis in forestry.

The Conservative government has to implement concrete measures to help the forestry industry. The Conservative government has just announced billions of dollars in income tax cuts for high earners, oil companies and banks, but it is not doing anything about the forestry crisis. Its inaction proves that it does not realize the extent of the crisis and that it is abandoning the workers and businesses in the forestry industry.

At present, several thousand jobs have been lost or are threatened, primarily because of this government’s inertia, even though the Bloc Québécois has proposed genuine solutions to help this industry.

First, the government has to bring back the fund to diversity forest economies. When the Minister of the Economic Development Agency of Canada for the Regions of Quebec cut diversification funding for the regions hit by the forestry crisis by $50 million dollars, he caused a major setback for the industry.

One of the things that program did was provide assistance to communities affected by the crisis. It was a mistake to slash that kind of program and that kind of assistance. A program of that nature has to be restored, but with more financial resources.

Second, the Bloc Québécois has proposed that a loan and loan guarantee program be created to help to finance investments in production equipment. This would provide support for businesses that wish to update their production equipment or simply enable their businesses to expand.

Third, the Bloc has suggested that taxes be reduced for businesses in the manufacturing and forestry sector to help them expand, or that tax credits be given to encourage hiring. The Conservative government is playing down the impact of the forestry crisis that is hitting the regions of Quebec broadside when it should be providing them with immediate assistance.

And fourth, the Bloc has for several years been calling for an income support program for older workers. These workers are in a state of despair because there has been no assistance for them. Entire communities are being affected by these lost earnings.

The government of Quebec has made efforts to help older workers, but those efforts will be inadequate as long as Ottawa does not do its part. In a sovereign Quebec, we would have our own money, all of our own taxes, and Quebec would be able to provide its people and its workers with a POWA.

Workers over 55 have difficulty finding another job. They cannot benefit from adequate assistance. Yet, this program would only cost $75 million a year for all of Canada.

These few measures are aimed at helping the forest industry to make the transition toward secondary and tertiary processing. This transition will lead to high value added manufacturing and ensure that each tree will provide the most jobs.

We need to realize that almost 21,000 jobs have been lost in the forestry sector in Quebec since April 1st, 2005, almost 4,000 in my region alone, Saguenay—Lac-Saint-Jean. We know that, in Quebec, forestry is the main employer in 260 towns and villages and that, in 134 of them, forestry provides 100% of all jobs. Thus, it is important to ensure the viability of this industry.

It is undeniable that the forestry crisis is causing major job losses. It also has impacts on youth. A study conducted by the Saguenay—Lac-Saint-Jean youth centre suggests that the uncertainty in the forest industry has repercussions on youth from the Saguenay—Lac-Saint-Jean region. This is another serious aspect of this crisis.

In conclusion, I will point out that the measures proposed by the Bloc are solutions that will have immediate effects for employers, employees, youth and communities. During the next few years, competition from new players in the field of mass production will increase. Effective measures must be taken quickly by the Conservative government to avoid the collapse—

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:15 p.m.

Liberal

The Speaker Liberal Peter Milliken

I am sorry to interrupt the honourable member, but the allotted time for his speech has expired.

We now move to questions and comments, and the honourable member from Burnaby—New Westminster has the floor.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:15 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I listened with much interest to the speech from my Bloc Québécois colleague. However, I find a lack of consistency in the position taken by the Bloc Québécois in the House.

Last year, the Bloc Québécois helped the Conservative Party push the softwood lumber agreement through. As a result, thousands of jobs were lost in Quebec, particularly in the Abitibi-Témiscamingue and Saguenay—Lac-Saint-Jean regions. Because of this ill-considered support from the Bloc Québécois, the Conservative Party put in place a softwood lumber agreement for which Quebec workers ended up paying a very high price.

Today, the Bloc is putting forward a motion which, at first sight, seems to make sense. The motion talks about measures to be taken in the forest industry. However, just as all other provinces in Canada, Quebec can no longer take measures to help communities hard hit by the forestry crisis, since the softwood lumber agreement gave Washington a decision-making power.

The Bloc is trying to clean up the mess. It helped the Conservative Party pass a bill and an agreement for which Quebec workers ended up paying a very high price. The Bloc is now saying that measures are needed to help the communities affected by the forestry crisis.

Does the member understand that it was a mistake to support the softwood lumber agreement of the Conservative Party, for which workers in Quebec and British Columbia ended up paying a very high price? Does he regret the fact that the Bloc supported the Conservative Party? We now see the result, the impact and the loss of thousands of jobs in Quebec because of that support.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:15 p.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, no, that was not a mistake. The Bloc Québécois supported the Canada—U.S. softwood lumber agreement because all the unions wanted us to do so. The companies also asked us to support it.

We asked this government at the time to come up with a plan to help the softwood lumber industry, but the plan never appeared.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:15 p.m.

Conservative

Daniel Petit Conservative Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, pursuant to what my colleague in the Bloc Québécois had to say, I would like to point out to him that for about 13 years, his party—although maybe not himself—have been incapable of doing anything at all, even for its own regions. It has never been able to intervene in any way or even to suggest to the Liberal Party of the time that it should do something for its regions. Never has the Bloc been able to produce a single cent for the paper companies, including in its regions.

I want to ask him today how it could be that when there was an election in his region less than a month ago—an election won by a Conservative member—the member from his region failed to speak out against the fact that Greenpeace was attacking the clients of the paper companies in his riding? He made agreements with Greenpeace to wipe out the companies in his riding.

Why is it that now he is blowing every which way? On the one hand, he says that we are not doing anything, while on the other, he supports Greenpeace, which is going to see clients in Germany in order to prevent the paper companies in his riding from being successful. Can he answer that question?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:20 p.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, I can see that the hon. member does not read the newspapers on the weekend.

On the Saturday before the election in Roberval, I issued a statement in which we came out against what Greenpeace was doing. We support the working people in Saguenay—Lac-Saint-Jean. We support the industries in the forestry sector.

I would also like to say that there are two Conservative members now from my region, Saguenay—Lac-Saint-Jean, but nothing has changed. Things are exactly the same. Whether the government is Liberal or Conservative, there are no programs to help the forestry industry.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:20 p.m.

Liberal

Navdeep Bains Liberal Mississauga—Brampton South, ON

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

Today's motion is very important. I am glad that it has been brought forth to the House. The motion indicates: “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”.

However, I feel the motion fails to address the government's inaction and its flawed policies. I will speak to those two specific issues in my remarks.

If we look at the fact that the government has taken no action to address how to promote productivity and competitiveness, it is clearly apparent that it has ignored the recommendations made by the industry committee, which made 22 key recommendations focusing on productivity and competitiveness. The government has no real and comprehensive plan in place.

It is our party, under our leadership, which has demonstrated to the Canadian public that, going forward, Canada as a trading nation needs to be more competitive and needs to have a productivity agenda. We need to make sure we can compete in a North American environment and with an emerging Asian economy and other established unions and economies.

Let us look at the government's flawed policies. Especially, let us examine forestry. I have had the opportunity to travel the country and visit many sectors impacted by forestry. Many industries, families, workers, people and companies have been directly impacted by the flawed softwood lumber agreement signed by the Conservative government.

We have, for example, the current environment, with a strong Canadian dollar that is on the rise. We also have a decline in the softwood lumber price and a decline in the demand for forestry products and softwood lumber products because of a slowdown in the U.S. housing market. What did the government do? It signed a flawed deal that effectively forced companies to pay higher taxes and also to make sure that they were a part of and subject to quotas.

More importantly, there is another issue that has not been addressed. That is the pine beetle infestation. Here is what bothers me after all of this, after we gave up a billion dollars and a broken promise from the Conservative government: it promised it would collect the duties but it only collected 80¢ on the dollar. We basically undermined all our NAFTA and WTO rulings. What did we get in return? As I said, we got higher taxes and quotas. We are back in the courts after seven months of a seven year deal and, most importantly and what Canadians need to realize, we have compromised our sovereignty.

As a nation, the government has no authority and now no ability to work with the forestry sector. Any time it takes that upon itself, if it chooses to do so, it will be sued by the United States and by the U.S. softwood lumber coalition. It is an example of a clear-cut flawed policy with respect to forestry.

The government also has a very wrong-headed approach when it comes to manufacturing. I will speak to a specific example with respect to the South Korea free trade agreement. The minister has indicated that he wants to rush this deal through. He wants to champion this issue very quickly. I have been given absolutely no reason to understand why this is the case. Let us look at the sheer merits of the deal.

We currently have a trade deficit with South Korea. South Korea has a very protectionist culture. If we look at the 1995 and 1998 memoranda of understanding with South Korea and the United States, we see that it has completely gone back on its word. Let us take the auto sector, where there is a large disparity. South Korea sells 400 cars in our market versus the one vehicle we sell in its market and has imports as only 2% of the car market in South Korea.

The Liberal Party has been absolutely clear on this. Throughout the summer, our leader toured Ontario. He visited many cities and toured many manufacturing facilities. He talked to many people in the auto sector and, more importantly, to companies that rely on the auto sector. He came to the conclusion that we will not support any flawed South Korea free trade agreement. We want to make sure that non-tariff barriers are addressed. We want to make sure there is a proper dispute mechanism in place. What bothers me about the government is that we are here trying to defend Canada and Canadian interests and trying to put forward a clear-cut productivity and competitiveness agenda.

This is what the Minister of International Trade had to say:

The fact that we haven't sold many, if any, vehicles into Korea is probably more to do with the fact that North American auto producers have really not produced the kind of small, fuel-efficient high-quality vehicles that are in demand in Korea.

I would like to ask the minister to take the opportunity to visit these facilities. I find such a remark very discouraging and disappointing because it undermines our hard-working Canadians. The minister should tell that to the people at the Chrysler plant in Brampton where 1,100 people lost their jobs. What is more important to realize is that not only did those people lose their jobs but it affected their families, and the companies that rely on that large auto assembly plant. This is absolutely discouraging and it needs to be addressed.

These are some of the salient points that were not mentioned in the motion.

The Conservative government has developed no comprehensive action plan. The government really has a flawed policy when it comes to forestry and manufacturing. An example would be the softwood lumber agreement, and I highlighted some of the concerns with that. The other issue is the South Korea free trade agreement.

In my opinion, what is even more troubling is the Conservative government's track record of being counter-productive when it comes to improving our manufacturing sector abroad. We are a trading nation. We need to make sure we have open and accessible markets abroad. What does the government do? It closes key consulate offices in key markets in Japan and Milan, for example. These are areas where we need to make sure that we have a presence, where we can sell our products, and where we can brand Canada.

The government has cut and cancelled many programs. One of the initiatives was the Canada trade program, which was a very important comprehensive package that dealt with small and medium sized enterprises to look and examine ways where we could make our companies competitive, where we could make sure that we exposed our manufacturing above and beyond the North American borders abroad, and we could make sure that we retained good, high quality paying Canadian jobs.

This really is troublesome if we look at the overall job market situation. For example, let us look at forestry. Roughly 300,000 jobs are directly impacted by the forestry industry. These jobs are in decline on a daily basis. We have close to 550,000 jobs in the auto manufacturing sector, for example. Most important, there are about 7.5 spin-off jobs. For every one job that we lose, we lose 7.5 jobs. Those are thousands of jobs.

I visited some communities that totally and absolutely rely on a mill because it is very much integrated into the forestry sector. Some towns, for example, Windsor, Brampton, and many places in southwestern Ontario, rely heavily on manufacturing. For every one job that they lose, approximately 8 spin-off jobs are lost.

These job losses are going to devastate these communities. This is going to devastate hard-working families. This is going to devastate the local economy. The government has turned its head the other way. If anything, it is going to accelerate the process by signing a flawed South Korea free trade agreement. More important, the government has completely tied its hands with respect to the softwood lumber agreement.

We have completely compromised our sovereignty. What bothers me is that Canadians have elected this minority Parliament and this particular make up to ensure that this Parliament works to protect and preserve good paying Canadian jobs, not to compromise our sovereignty.

I think it is absolutely disheartening and disappointing to see the Conservative government ignore these two vital industries that employ thousands of people, that help generate thousands of jobs, and that help generate millions of dollars, if not billions of dollars, in tax revenue.

At the end of the day the issue is about trust. This motion speaks to the fact that Canadians cannot trust the government to protect good paying Canadian jobs. People in this country cannot trust the Conservative government to fight for our sovereignty and to protect our sovereignty. The government is absolutely out of the game when it comes to forestry. It cannot do anything. Anytime it takes an action to help the forestry sector, it will be sued. That is the kind of policy the government has developed. It is trying to appease our neighbours to the south and in doing so we are going to lose thousands of jobs.

Both industries are in crisis and this motion speaks to that today. I hope the government is listening to this and will take action.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:30 p.m.

Conservative

Daryl Kramp Conservative Prince Edward—Hastings, ON

Mr. Speaker, I thank the hon. member opposite for his comments. I recognize that he was not in the House when consultations regarding the Canada-South Korea agreement commenced. Of course those consultations commenced under the previous Liberal government in early 2004. I think at that particular time the Liberal Party and his government were appraising the move forward. Then of course his party, while still in government, started the actual negotiations with South Korea. That was fine at that particular point.

We subsequently formed the government. Now because the Conservatives are in government and involved in ongoing negotiations with South Korea and trying to see if there is a mutual benefit to be gained from this, all of a sudden it is improper. Does the member not find that to be straining the realm of hypocrisy?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:30 p.m.

Liberal

Navdeep Bains Liberal Mississauga—Brampton South, ON

Mr. Speaker, if a negotiation process is started that does not mean a flawed deal has to be signed or negotiated.

The reason I say this is if we take for example the softwood lumber agreement, the Conservatives made a promise in their platform that they would collect all the duty. They broke that promise. They left a billion dollars on the table and compromised our sovereignty.

Now the government is using that same strategy when it comes to the South Korea free trade agreement. I have spoken with many stakeholders, many companies and many individuals, and many people say they have not been properly consulted.

It makes absolutely no economic sense for us to continue on with this deal on the fact that non-tariff barriers are not being addressed. The government is headed in the wrong direction because it has a political and an ideological agenda. The government is not doing the right thing for Canadians. It is not addressing their concerns. It is not looking at the impact this will have on jobs and the local economy.

Simply because we enter into negotiations does not necessarily mean we are going to support a flawed deal. That is the Liberal Party's position.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:30 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, I have listened carefully to my hon. colleague's comments on the motion put before us today. I come from resource based and resource dependent communities in my riding of Vancouver Island North. We are surrounded by trees. Our mills are having a really hard time competing. They were having a really hard time before the Canadian dollar became equivalent to the U.S. dollar. Now that the dollar has passed the U.S. dollar, I know the mills are in dire straits.

Unfortunately, the Bloc supported the softwood lumber deal. Basically, what the Bloc is doing is closing the door after the horse has left the barn by supporting this deal. By supporting this deal we are seeing more and more raw log exports from our communities. I said that we are surrounded by trees and yet we see truckload after truckload leaving our communities for mills in the U.S. and abroad.

This is really hurting our communities. I appreciate that a motion has come forward to put something on the table. I put forward a motion to curtail raw log exports and increase value added manufacturing here in Canada. I think we should be protecting Canadian jobs.

Does the member not think that it is a little bit hypocritical that this motion is coming forward after the Bloc supported the softwood lumber agreement?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:30 p.m.

Liberal

Navdeep Bains Liberal Mississauga—Brampton South, ON

Mr. Speaker, there is no denying that there is a great deal of disappointment on the part of the Liberal Party with respect to the fact that the Bloc supported the softwood lumber agreement. It was a flawed agreement and a flawed process. This is something that we have said from day one.

I understand the member's concerns with respect to the closure of mills, the job losses, and the communities that have been hurt. That is why I have spoken to this issue and that is why I will continue to speak about this issue because it affects families in northern Ontario, B.C. and across the country.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:35 p.m.

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, Canadians across the country have watched with considerable interest developments with regard to the Canadian dollar. Few watched with more attention than the thousands of Canadians who work in our manufacturing and forestry sectors.

Simply put, Canadian manufacturing and forestry sectors are in crisis and in desperate need of assistance from the federal government. Just last week, the Premier of Quebec speaking on the impact of the dollar and the loss of manufacturing jobs responded by saying, “I think it's urgent”.

The situation in Canada's manufacturing and forestry sectors is indeed urgent. The Quebec Premier also stated, “We need to meet the Canadian Prime Minister as soon as possible”.

What was the Prime Minister's response? According to his office, he would agree to meet, but not until the end of this year or early into 2008. This is not the way to respond to an urgent crisis.

This country has lost upwards of 175,000 manufacturing jobs in the past three years. The high dollar has clearly compounded this reality.

We have only to look to the recent announcement by the Chrysler Corporation that it would be cutting 1,100 jobs at the Brampton, Ontario, plant as evidence that this situation is only getting worse.

In fact, Gerry Fedchun of the Automotive Parts Manufacturers' Association stated quite clearly this reality when he said recently, “It just gets worse and worse”.

As many observers continue to point out, the loss of manufacturing jobs is a problem that is compounded throughout our economy. There are many ancillary jobs that depend on manufacturing jobs in communities across this country.

Can members imagine the impact upon the economy of the city of Brampton, Ontario, when 1,100 good-paying jobs are lost in that city? Think of the loss of buying power that comes with that kind of job loss in a community like Brampton.

I recently met with the representatives of the Canadian Auto Works who work at the Downsview plant of Bombardier Aerospace. They came to meet with me to convey the deep concerns of manufacturing workers in this country. In fact, the Canadian Auto Workers are promoting a campaign across the country called, “Manufacturing Matters”. They are right. Manufacturing does matter.

These are good jobs that are being lost and the government simply ignores the pleas of so many Canadians who are losing their means to support their families and their communities in this country. The numbers speak for themselves. The Canadian trade deficit in manufactured goods is $30 billion. That is $30 billion in the manufacturing sector alone. This is simply unacceptable and clearly requires action on the part of the government.

Similarly, this problem is only going to get worse if action is not taken soon. I would encourage the government to listen to the experts.

For example, Mr. Ted Carmichael, chief economist for J.P. Morgan Securities Canada, has stated that if the dollar remains at its current levels, we could easily see the loss of another 150,000 manufacturing jobs.

The motion before this House also deals with the loss of jobs in the forestry sector. From the west coast of Canada to the east, our forest industry is hurting a great deal. Bruce McIntyre, of PricewaterhouseCoopers, states, “The dollar is obviously kicking the teeth out of the forestry industry right now”. He further states, “It's pretty desperate times out there”.

It has been noted by the Quebec Federation of Labour that up to 10,000 jobs have already been lost in the forestry sector in the province of Quebec. Also in Quebec, we note that for every one cent increase in the value of the dollar there is a loss of $150 million annually in the forestry sector.

Whether in the forestry sector or the manufacturing sector, Canadians are losing their jobs and the government has simply failed to address the crisis in these important sectors of our economy.

We must also look to the future. There are more problems for manufacturing on the horizon that will only make the situation worse if we do not take appropriate action.

India for example is increasing its manufacturing sector at a very rapid pace. It is estimated that up to 71 million new entrants will arrive into the job pools in that nation in the year 2010. Keep in mind that wages are at least 30% to 40% less in India than in traditional western economies.

It is clear that the reality is also a major challenge for Canada's manufacturing sector. Similarly there has been much talk about the potential free trade agreement with the nation of South Korea. There are estimates that such an agreement would cost a minimum of 33,000 more jobs in the manufacturing sector. The provinces of Quebec and Ontario, between them, stand to potentially lose over 25,000 jobs.

The Government of Canada has an obligation to protect its workers. All we hear from the Prime Minister are remarks like the one made the other day, “We understand the dollar is causing some challenges”. The Prime Minister refers to “some challenges”. That is not good enough.

What we need is action. We need an advocacy to protect Canadian jobs. We need action with regard to the impact of the higher Canadian dollar. We need to invest in our workers and ensure they remain competitive through skills training programs. We need to insist that we have access to the marketplace in an equitable manner and not to keep our doors open while other markets remain closed to Canadian jobs. We need to invest in our infrastructure to help our manufacturing sector. We need a fair lumber deal and we need real support for the forestry sector. We need to ensure that procurement of goods by the government puts Canadian manufacturers first. Simply, we need to protect Canadian workers.

In short, we need leadership. It is simply unacceptable that the government continues with platitudes while Canadian jobs are being lost. It is simply unacceptable that when premiers across the country call upon the Prime Minister to convene a first ministers conference on this issue, they are told that it might happen before the year's end or even some time in the new year. The issues are simply too important for them to wait that long. When the premiers use words like “urgent” and “concern”, it is time to start listening. When the economists talk about sectors of our economy getting their teeth kicked out, it is time to start listening.

The Leader of the Opposition demanded the leadership about which I speak. Just last Friday the opposition leader announced the Liberal plan for effectively fighting poverty in the country. The 30:50 plan will go along way toward dealing with poverty.

I call upon the government to demonstrate that kind of leadership and that it take immediate, effective action to support our manufacturing and forestry industries. The time is now.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:40 p.m.

Conservative

Patrick Brown Conservative Barrie, ON

Mr. Speaker, if manufacturing were so important to the Liberal Party, it is odd that only one person travelled across Canada as part of the industry committee's study of the challenges facing manufacturing. To get all emotional today about the challenges facing manufacturing, seems a bit hypocritical. When it came time to study it, the Liberals showed no interest.

It is also a bit hypocritical, and I would like some explanation for this, why the member who raises these concerns is pushing Kyoto. We all know, and even leading Liberals have acknowledged, it would present tremendous challenges to the manufacturing sector in Canada.

It is not unusual for the Liberal Party to put forward positions that are completely opposed, but it would be helpful to get some explanation as to why Liberal members are speaking against their own positions.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:40 p.m.

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, it is an odd question. There is a lot more to manufacturing to what is facing our economy than travelling across the country.Travelling is not the issue. The issue is the loss of jobs in our economy and we need government to pay attention to it and call a first ministers meeting. That is what I think real leadership and taking action is about.

It is also talking about the issue of our high dollar, which is affecting manufacturing jobs. It is also to provide funding for job training programs in the country.

It is not just about one person travelling across the country to hear from people. We know there is a crisis. We know there is a problem. We definitely need leadership from the government.

I am a bit baffled by the Conservative Party when it continuously trashes Kyoto and states that Kyoto would kill jobs. This is totally false. We can be leaders in manufacturing of green technology. Kyoto and the concern for the environment are a global target action plan on what needs to be done as a collective to help our environment. It can be done without the gloom and doom that comes from the Conservative Party.

I guess the Conservative members do not really believe in the environment. That is the problem. That is what they are coming out and saying.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:45 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I want to congratulate my colleague on his speech. I see that he realizes, as we do, how urgent it is that the government put in place a series of measures, certainly a support program for businesses as well as investments in research and development. Obviously, a series of important measures is needed, including in terms of our trade laws.

I agree with him in this respect. The adoption of the Kyoto protocol could certainly create business opportunities. A carbon exchange would certainly create business and innovation opportunities for our industries.

After listening to my colleague from the Liberal Party, I would like to know if his party will support this motion brought forward by the Bloc Québécois today.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:45 p.m.

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I want to congratulate my colleague on her excellent question and indicate our party's support for this motion. This has certainly become an urgent situation. Help and concrete action are needed on the part of this government. I am in favour of this motion, as are all my Liberal colleagues.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:45 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, first, we are in support of the motion. However, one thing that strikes us, and we heard a member opposite speak of sovereignty, is we need changes to the investment act legislation to protect Canadian ownership and Canadian industry. In Hamilton, Dofasco and Stelco, two icons of Canadian industry, are no longer Canadian owned and we need to protect that.

One other concern is the Canadian International Trade Tribunal does not have a single worker representative on it. I believe members opposite would agree that this is a travesty. The labour movement of our country should have a seat at the table. Would the hon. member agree with that?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:45 p.m.

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, my hon. colleague is absolutely right. Sovereignty is a major concern to all of us. I am quite concerned with all the major companies coming to Canada and taking over national institutions, which really built our country and are foundations of it. They are doing this with very little say from the Competition Bureau. We have laws in place, but unfortunately they are not being used very effectively. It seems that the oversights are not doing a good job of ensuring that the jobs are protected and these companies stay Canadian.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:45 p.m.

Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, I am pleased to speak on behalf of the Bloc Québécois during today's supply debate on the manufacturing sector. I will split my time with the hon. member for Richmond—Arthabaska.

Today's debate is of particular interest to me, because I represent a riding that has suffered from the crisis in the manufacturing sector. Indeed, since 2003, the riding of Beauharnois—Salaberry has suffered a direct loss of 2,500 jobs. In a community like mine, the impact of such a loss is almost similar to that of a bomb. It is rather catastrophic for my constituents.

I will give a few examples. It started with the closure of textile plants in the town of Huntingdon. We talked about it a lot in this House. Among other things, we asked for an income support program for older workers, for the workers who worked very hard in the textile plants and who unfortunately, to this day, four years after the closure, still have not been able to retrain in order to find another job and are now looking at a rather depressing retirement, and a very precarious one from a financial point of view.

Then there is the closure of Gildan, another textile plant located in Salaberry-de-Valleyfield. Recently, we witnessed yet another plant closure which really hurt, namely that of the Goodyear plant, in Valleyfield. The closure of that tire plant alone resulted in the loss of 1,000 jobs. In addition to that, Les Abattoirs Z. Billette, Quebec's only steer slaughterhouse, closed its doors, which resulted in the loss of another 230 jobs in the town of Saint-Louis-de-Gonzague, in the riding of Beauharnois—Salaberry.

I want to go back to Goodyear again to illustrate some of the consequences of closing a plant of that size in a community. Goodyear Valleyfield had a payroll of $85 million in the Salaberry-de-Valleyfield area. When the Goodyear plant closed, 1,000 jobs were lost, but that figure does not include the maintenance subcontractors, the construction contractors, the restaurant and a number of support businesses that had contracts with Goodyear. For example, C.A.T., a transport company, lost a lucrative contract that was important to its bottom line.

When a large plant like this one closes its doors, the consequences are felt not only by the workers, but by an entire region. I can assure my colleagues that the consequences are being felt even though elected representatives and economic development stakeholders are working very hard with the unions and the people who are trying to revive the plant. Reviving a plant like Goodyear or like Les Abattoirs Z. Billette takes a great deal of energy and concentration. I am extremely proud of my region, and I would like to congratulate the mayor of Huntingdon, Stéphane Gendron, and the mayor of Valleyfield, Denis Lapointe, who are leading the way and mobilizing all the stakeholders to find a solution and be innovative and creative.

When everyone is rolling up their sleeves to deal with this crisis, people have a right to expect that the federal government—which has a huge surplus—will support these companies better. Maybe these crises could have been avoided if the government had taken a proactive approach to the crisis in the manufacturing sector.

As I travel around my riding, everyone is talking about the crisis in the manufacturing sector. Everyone is sensing the urgency and telling me how important it is to take real action to try to stem the flood of job losses and find solutions to the crisis in manufacturing. All the parties in the House of Commons are in agreement and are urging the federal government to take tangible measures, like the National Assembly in Quebec, the businesspeople, the companies, the unions and the Government of Ontario.

In short, I believe that the message cannot be clearer for the Conservative government: in Quebec and in Ontario, among other provinces, the crisis in the manufacturing sector is hitting really hard and is causing economic devastation, but also great human devastation. What we are feeling, what we are hearing from the Conservative government is that all is well in Canada.

Of course, when one lives in the western part of Canada, one can say that all is well, but this in fact is hiding a reality. When one knows that the economic boom in the west is hiding the reality of what is happening elsewhere, in Quebec for instance, one has to wonder whether the Conservative government is not totally blinded by the economic boom in the west, to the point of forgetting what is going wrong in other parts of the country, including in Quebec.

Perhaps I should remind the House that 135,000 jobs have been lost in Quebec since 2003, including 65,000 since the Conservatives came into office. To refresh the memory of members opposite, Quebec accounts for half the 275,000 jobs that were lost in Canada. We can say that job losses have a major impact in Quebec. We agree that action is needed. The only people who do not believe that it is urgent to act, who are not taking concrete action, are the people opposite, those who hold the power, who can make decisions and really prove that they care about the manufacturing sector and workers who are losing their jobs.

It is said that the economic boom triggered by the oil industry in western Canada is making the Canadian dollar go up in value. We know that the fluctuations of the Canadian dollar primarily affect the manufacturing sector. I have here an article published in the newspaper Les Affaires. It is entitled “Loonie and Oil Go Hand in Hand”. I will quote this article, which explains how the increase in value of the Canadian dollar is related to the higher cost of the barrel of oil. The article says:

The spectacular increase in oil prices allows for profitable oil sands development in western Canada. According to the Canadian Association of Petroleum Producers, production could quadruple between now and the year 2015. Therefore, the dollar should continue to soar, as long as the price of oil keeps increasing.

More than ever, the value of the loonie is influenced by the price of oil. It is totally unimaginable that the Conservative government would ignore this reality.

Here is a familiar metaphor. If there are 20 jobless people in a room and Bill Gates walks in, the average income of all these people immediately goes up. Similarly, when Bill Gates leaves the room, it is just as easy to imagine that everyone remains unemployed. This sorts of reflects the current situation in Canada, in that the economic boom in western Canada masks the stark reality facing Quebec's businesses, manufacturing sector and workers.

The Bloc Québécois is proposing solutions to alleviate the crisis. These are solutions which, to a large extent, enjoyed the unanimous support of the members of the Standing Committee on Industry, Science and Technology. I think this is worth repeating.

Since I only have one minute left, perhaps I could quickly mention some of the solutions proposed by the Bloc. We are proposing to create financial tools to promote investment and business modernization. We are also proposing to improve tax support for business research, development and innovation, to pay particular attention to those resource regions that are particularly affected by the current crisis and that desperately need to diversify their industrial base to counter the forestry crisis.

There are many solutions available. The standing committee and the Bloc Québécois suggested 22. One was accepted and implemented by the Conservative government. I am asking Conservative members to listen to this consensus, to take immediate action and to implement the solutions proposed by the Bloc Québécois. Of course, I am also inviting all opposition parties to support our motion.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

3:55 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I congratulate my colleague on her speech. We feel for the workers in her riding who find themselves in such a tragic situation. In my riding, 1,000 jobs have also been lost at Kruger, in the paper industry. So I can understand her emotions and the difficulties that people tell her about.

It is obvious that the government is doing absolutely nothing for workers, particularly older workers. Should this government not be looking for solutions, if only through the EI fund?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

4 p.m.

Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, I thank my colleague for her question. The Bloc Québécois has proposed a number of measures to help workers who are experiencing hardship because of the manufacturing crisis. The government has before it a bill aimed at improving employment insurance to make this program more flexible and more accessible to workers.

During the last election campaign, the Conservatives promised a program to help older workers. People in my riding remember that promise. Unfortunately, they are disappointed again because no real income support program for older workers has been implemented yet. It is part of the solutions proposed by the Bloc Québécois and we hope it is accepted by the Conservative Party.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

4 p.m.

NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, as the auto critic for the NDP, I have been pushing for a green auto strategy for a number of years, which is to have manufactured vehicles in Canada that were eco-friendly receive some type of incentive in a program that we outlined. Instead, the government has introduced a program, shockingly enough, that actually sends money to foreign nations.

For example, the Toyota Prius, the Honda Civic, the Toyota Camry, the Nissan Altima and the Toyota Yaris are all made in Japan, and the list goes on and on. The Conservative government's program sends literally millions of dollars per vehicle annually to overseas manufacturers that are competing against Canadian manufacturers. We are watching our jobs disappear from Oshawa, Brantford and other areas.

Is this the type of program that the Bloc would support or would it be better to have an auto strategy that actually produces vehicles in our own country because we can control that? This program of watching Canadian taxpayer dollars going overseas is being celebrated in Tokyo City because they have millions of dollars coming onto their plant floors at the expense of Canadian taxpayers.

Would the Bloc rather see something actually done so the manufacturing of green autos is done in our own country?

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

4 p.m.

Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, it is important to the Bloc Québécois that the federal government encourage Canadian manufacturing.

However, we were disappointed that we did not receive the support from the NDP when we were asking, for example, 60% of economic benefits for Quebec, which has the expertise in the aerospace industry. This may also be good for the other provinces that have developed the automotive sector.

If Quebec has 60% of the aerospace production, it is important that it also receive the economic benefits that go with this. If I remember well, the NDP did not support that motion.

Opposition Motion—Manufacturing and ForestryBusiness of SupplyGovernment Orders

4 p.m.

Bloc

André Bellavance Bloc Richmond—Arthabaska, QC

Mr. Speaker, I wanted to take part in this debate today and to congratulate my hon. colleague from Trois-Rivières on having raised this important matter: the crisis in the manufacturing and forestry sectors. I must also thank my colleague from Beauharnois—Salaberry for agreeing to share her speaking time with me.

In her riding, as in many others in Quebec of course,—and one might include Ontario and the Maritimes as well—many MPs are involved daily with the crisis in the manufacturing and forestry sectors. This is, therefore, an important issue for our regions. Thinking of the manufacturing sector alone, this represents 536,000 jobs. It is no trifling matter.

The situation is a paradox, given today's context. The present vitality of the Canadian dollar bears witness to Canada's overall economic health. Looked at through a distorting lens or rose coloured glasses, as is the Conservative government's wont, the Canadian economy is seen to be doing well. That is what we are constantly being told by the Minister of Finance during question period, when we raise the difficulties certain sectors are experiencing.

In fact, his response that everything is doing well is because of the Alberta oil boom. That is all very fine for them, anyway, and far be it from us to say that the people of Alberta are not entitled to a healthy economy. On the contrary, we are very happy for them. Other sectors, however, are experiencing hard times. Unfortunately for other sectors, the oil boom has the effect of strengthening the Canadian dollar, thereby creating the difficulties we are discussing. The vitality of the dollar is therefore linked to the oil boom in Alberta. It has gone up some 60% in relation to the American dollar in four years, thus depriving businesses of their competitive edge in foreign markets.

They either lose sales, or they see less profits, or they lay people off. Unfortunately, in many instances, businesses do all three because the hurdles are too great and they are trying to survive. Restructuring then takes place and the restructuring plans include the elements I have referred to. So the bottom line is that jobs are lost.

It is also catastrophic to realize that, for every cent that the Canadian dollar goes up in relation to the American dollar, at least 19,000 manufacturing jobs are threatened. As we know, the dollar has shot up in recent weeks, and every time that it went up 1¢, 19,000 jobs were in jeopardy.

The strengthening Canadian dollar has also meant more manufacturing business failures in the first six months of 2007 than in all of 2004. We are now in a situation where those rose coloured glasses I referred to a few minutes ago really must be set aside. The government must not only wake up to the situation but also start taking action, particularly given its much vaunted and huge surplus. This surplus is a complete reality and all manner of measures have been put in place to please this sector and that, while oddly enough totally forgetting those sectors that have been hit the most from the economic point of view: manufacturing and forestry.

The Quebec manufacturing sector as a whole did not make a profit in 2006. We have to exclude the pharmaceutical industry, but for the rest everything was bad. At least, if we did manage to get anywhere, we just made it, without making a profit. Quebec exports have fallen steadily over the last three years. If these statistics cannot wake the government up, I do not know what will.

We are talking about a loss of 135,000 manufacturing jobs since 2002, including 65,000 since the Conservative government came to power. This too should have told these people something. They pride themselves on being in power, on being able to do anything, on being the only ones in a position to take action. And yet, since the Conservatives have been in power, 65,000 jobs have disappeared in the manufacturing sector. Might there be someone, somewhere in this government, who will decide to roll up his sleeves and do something to ease these problems?

I want to talk about the clothing industry because, in my constituency of Richmond—Arthabaska there are many clothing, textile and furniture businesses. These are businesses that have suffered huge losses for many years. It is a glaring problem.

In the clothing industry, for example, there were 30,000 jobs in 2006. In 1988 there were 90,000. The decline has been steady since 1988.

In textiles, there were 17,500 jobs in Quebec last year. There were 36,000 in 1988.

In the furniture industry, there has been a 22% reduction in the workforce.

There are also the paper mills and sawmills. Again, in my riding there are Domtar and Cascades, for example. These are job-creating companies that are pulling out all the stops to preserve these jobs. And I must point out that these are quality jobs. They say that the economy is doing well. They are proud of the unemployment rate. I have heard a number of members here today telling us to pay attention: the unemployment rate may be about the same, but what kinds of jobs are these now? High-tech jobs and jobs with excellent conditions and salaries are being replaced by much more precarious jobs, part-time jobs, less well-paying jobs. This is not included in the unemployment statistics and percentages. So this is a reality which we also have to face up to.

As I was saying, for the paper mills and sawmills, we are talking about a reduction of 10,000 jobs between 2002 and 2005. And since April 2005, if we add the jobs lost in the forestry industry, 21,000 more jobs have been lost.

The rising dollar, combined with Chinese competition in these sectors, has resulted in our traditional sectors being even harder hit. Here again, the Conservative government has not taken the necessary action to mitigate the consequences of this competition. I mention China, but there are many other countries that are exporting more and more to Canada and Quebec. China is the most significant: between 2001 and 2006, Chinese clothing and textile imports have increased by a factor of eight, furniture imports by six, and bicycle imports by five. There are certain measures under World Trade Organization rules that can be taken, but which Canada is refusing to take. Whether the government is Liberal or Conservative, the end result is the same.

Let us look now at some examples of that damage in a riding such as my own. There are many factory closings in the clothing industry—I spoke about them earlier—and in the textile industry. In the furniture industry, Shermag, which operated for years in Victoriaville, has closed its doors. Shermag is doing more and more business with China. Shermag products and furniture, unfortunately, are now made in China. This is happening not only in our area. In the Eastern Townships generally, where Shermag was located, regrettably, many factories have been closed.

In the lumber sector, Placages St-Raymond, Flexart division, has just closed its plant in Victoriaville in my riding. There were about 30 jobs left. In the paper sector, I just visited Domtar in Windsor, where they began a restructuring plan in 2005. They were forced to reduce the workforce. At one time, Domtar employed more than 1,100 people in Windsor; now there are just under 900. There has been attrition, and retirements to try to minimize the damage. In short, they used all available resources so that people would not be too badly affected. Once again, these were excellent jobs with excellent salaries. I do not have to tell you what a disaster it would be if ever we lost those jobs in our region.

There was also Cascades at Kingsey Falls. This company has been highly praised all around the world. Just recently, Cascade said it might be forced to increase its investments in the United States in order to move its production base to where it sells its products, which is the United States. So, this is a serious concern for the people in my riding.

In closing, I do not want to forget to mention some important quotations:

The Conservative laissez-faire policy is not a solution.

Here is a very recent quotation from Denis Dufresne at La tribune, dated November 11, 2007:

—the laissez-faire attitude of Prime Minister Harper toward the manufacturing sector is incomprehensible and raises fears of new plant closings in the regions.

The Quebec Minister of Economic Development, Innovation and Exports, Raymond Bachand, said he was “very disappointed that the Government of Canada had done nothing to help that sector.” He was referring to the absence of any measures supporting the manufacturing sector in the recent mini-budget.

If that does not get the point across, I wonder what it will take to make the Conservative government listen to reason.