Mr. Speaker, I am pleased to participate in the debate on Motion No. 414. While this government has supported, currently supports and will continue to support those impacted by the challenges facing the forestry industry, it does not support this motion.
The simple matter is that a number of measures proposed in the motion have already been implemented by the government or are measures for which the industry has not specifically asked. Furthermore, the motion underscores the complete lack of understanding the Bloc has toward the real needs of the forestry industry and its workers and the measures the federal government has already delivered.
The Speech from the Throne indicated that the Government of Canada recognizes the importance of the forestry sector in this country and we understand the challenges this sector is facing.
The forestry industry is a dynamic contributor to the Canadian economy. In 2006, the forestry sector contributed almost $36.3 billion to the economy. This is the equivalent of 3% of our gross domestic product. The industry provided 900,000 jobs from coast to coast in over 300 communities. A good many of these well-paid jobs are in small and rural locations.
With exports valued at $38.2 billion and revenue from goods manufactured at $80 billion, Canada's forestry sector is the number one exporter of forest products in the entire world. Nevertheless, members on both sides of the House are aware that the industry is confronting serious challenges, due in large part to the decline in U.S. housing, a decline in the North American newsprint market, and increased low cost competition.
These pressures have intensified over the past year, especially with the rapid appreciation of the Canadian dollar, which steadied at around parity with the greenback. In addition, higher housing inventories and difficulties in the U.S. subprime lending market have led to significant declines in U.S. residential construction, the key driver of lumber and panel consumption in North America. In fact, U.S. housing starts over the first half of 2007 were down by 27% compared to the same period in 2006.
The bottom line is that forestry companies have suffered losses and workers have endured significant layoffs due to economic struggles in the U.S., not in Canada.
Both industry and government have been responding to these pressures. For their part, Canadian producers are working to improve their competitiveness by driving down costs, closing high cost facilities, selling off non-core assets, pursuing mergers and acquisitions, and converting production to higher value products. For its part, the government is creating a supportive business environment for all industries, including the forestry sector, one that promotes competitiveness, innovation and success.
We are delivering for industry with leadership and a willingness to act with urgency when industry needs it most. Furthermore, the Bloc refuses to listen to the industry. At the industry committee, its members clearly heard industry leaders say that:
--when government dictates industry structure, it almost inevitably gets it wrong. Let the marketplace decide the structure of industry...we need the changes in business climate.
That is exactly what the government has been doing. We are ensuring that our economic fundamentals are correct. The Conservative government has introduced broad-based tax reductions that will deliver over $8 billion in tax relief for manufacturers and processors over the next several years. This was voted against by the Bloc Québécois.
The government has improved capital cost allowance rates and has introduced a science and technology strategy that will help boost industries' innovation and productivity. This was voted against by the Liberals and the NDP.
We are modernizing our infrastructure through a $33 billion built in Canada plan so that our manufacturers can take advantage of economic opportunities within Canada as well as other countries. That is also opposed by the opposition.
We are streamlining the review of large natural resource projects, reducing red tape and the regulatory burden on businesses.
We are investing in people, skills and training so that manufacturers have access to the best educated, most skilled and most flexible workforce in the world.
In short, we are creating a climate where industry can be more productive, innovative and successful in securing jobs for Canadians, but the Bloc neglects these facts because in order to justify their existence here in Ottawa its members spend every waking hour trying to prove that somewhere, at some time, the sky might be falling.
Let us now turn to some of the more specific measures the Government of Canada has implemented to help address the competitive challenges facing the forestry industry.
In the fall of 2006, Canada and the United States cleared one of the most significant hurdles this industry has ever seen, the softwood lumber dispute. Less than nine months after taking office, this government made good on its pledge to bring an end to the 20 year trade dispute.
The agreement is good for Canada and its forestry industry. It eliminates U.S. countervailing and anti-dumping duties. It brings an end to costly litigation. It protects provincial management policies. It returned over $5 billion to Canadian producers. This contributes to the industry's stability, therefore benefiting workers and supporting the economic development of rural communities.
It is in the interest of Canada to see the softwood lumber agreement last its full term. The ability of the agreement to last a minimum seven years would be jeopardized if the government were to accept the Bloc Québécois measure of a government loan and loan guarantee program set out in the motion. This is the hypocrisy of the members of the Bloc. They voted in favour of the softwood lumber agreement that returned needed money to Canada's forestry industry, but they would turn around and demand loans and loan guarantees that would send Canada back to years of litigation, where the only people who would get paid would be the lawyers.
This government has provided over $400 million through budget 2006 to strengthen the long term competitiveness of the forestry sector. We want to combat the mountain pine beetle and support worker adjustments in an industry going through a major transition.
The Conservative government's $128 million forest industry long term competitiveness initiative was designed to advance a prosperous forestry industry and the communities and workers that depend upon it.
The sum of $70 million has been provided for the forest innovation and investment fund. This includes funding to assist in the consolidation of Canada's three national forest research institutes to form FPInnovations, the largest public-private forest research and development institution in the world; funding for pre-competitive, non-proprietary R and D to address the development and adaptation of emerging and breakthrough technologies in biotechnology and nanotechnology; and funding for the creation of the Canadian wood fibre centre, a new research entity to increase our knowledge of wood fibre qualities and how best to utilize this wonderful resource.
As well, this Conservative government is expanding opportunities in new export markets and encouraging value added wood production. These are important priorities of our government. We recognize their importance for the long term future of the sector.
The forest industry long term competitiveness initiative is providing $40 million in funding for programs designed to: one, expand offshore markets for wood products; two, develop new applications for wood products here in North America; and, three, to assist value added wood manufacturers.
Through the Canada wood program, offices have been established in Shanghai, Beijing, Tokyo, Brussels, London and Seoul, which make it easier to establish contacts and promote Canadian wood and its attributes to governments, builders and consumers. The program has raised the profile of Canadian wood products in these markets, resulting in increased exports. The reality is that the Bloc will never deliver this type of access to Canadian and Québécois forest products because that party will be forever in the parliamentary penalty box.
The North American wood first program is an initiative that will increase wood usage in North America in recreational, commercial and institutional applications such as restaurants, schools, hospitals and shopping centres.
In addition, the value to wood program facilitates secondary wood manufacturing opportunities and enhances the competitiveness of this very important sector.
Each one of the initiatives I have mentioned is already up and running, but this is not the end of the matter as far as the government is concerned. Given the importance of the forestry sector to Canada, we must continue to support its long term viability.
This Conservative government has and will continue to deliver real results for Canada's forestry industry. We will continue to do this despite the ardent opposition of the Bloc and inflated rhetoric.
Unlike the Bloc members who will forever be doing nothing in Ottawa but playing politics with the lives of these forestry workers at a time when they need our support, this Conservative government is delivering real tangible results for the forestry industry. During times of challenge it is the true leadership and clear vision of this Conservative government that is getting the job done for this industry and its workers.