Madam Speaker, I will be sharing my time this afternoon with the wonderful, outspoken and generous member for Malpeque, affectionately known as the “Malpequer” by many of our colleagues. I also want to thank the member for Kings—Hants for bringing forward this important motion and making it a subject of debate here in the House and across the country.
The motion itself, if ordinary Canadians read it, might seem technical, but for ordinary Canadians or ordinary Labradorians who are involved in industries impacted by the legislation or the economic stimulus package in the United States, it is about their jobs, it is about how they are going to pay their bills. While it may seem technical to them, it hits home for many people.
Our trading relationship with the United States is very important and it has to be based on mutual respect and on the rules. The riding of Labrador has a very direct role in the Canadian and international iron and steel industry. Our iron ore industry has a longstanding close relationship with Canadian and American steel industries, having been developed by North American steel makers in the 1950s and 1960s.
Iron ore production in Labrador in 2008 was estimated at $2.5 billion, no small chunk of change. We have two of the three most important iron ore producers in Canada, those being Wabush Mines, the Iron Ore Company of Canada and the other being Quebec Cartier, neighbouring us in northern Quebec out of Fermont.
We also have a number of new iron ore projects in the advanced exploration at the pre-development stage. I will mention just a couple, those with the New Millennium group and the ironsands project. Up until a few years ago, iron ore represented over 90% of the mineral production in the entire province of Newfoundland and Labrador, and that was before Voisey's Bay nickel came on stream.
Labrador now represents 98% of the mining industry in our province. Nickel production at Voisey's Bay last year is estimated at $2.2 billion, with over half a billion dollars more in related copper and cobalt production from the same mine. Nickel of course is a component in many types of steel as well as iron ore. Among the three operating mines in Labrador, Wabush, the Iron Ore Company of Canada and Voisey's Bay, they account for nearly 10% of the value of all Canadian mining in 2006.
In the past several years they have generated tens and even hundreds of millions of dollars in royalties which are paid to the provincial government. In certain instances a share of those revenues are transferred to the Nunatsiavut government, the Labrador Inuit self-governing body, and the Innu nation representing the Innu people of Newfoundland and Labrador.
It is not hard to see from these facts that the economy of my riding of Labrador is very closely tied in with the Canadian international iron and steel industries. We have a direct interest in the domestic and international policies and politics that have an impact on this vital sector.
Along with many other Canadians I was fascinated to watch the recent American election unfold and to see President Obama inaugurated just a few weeks ago. When the American stimulus package was drawn up, it included the problematic buy American clause. I and many in my riding were immediately concerned about the impact on the industries that were situated there which our economy was dependent upon.
It seems that many on this side of the aisle and indeed throughout Canada, the U.S. and around the world share that concern. In the past few days and hours the president has signalled that he is open to measures to avert what could be an unfortunate international trade dispute, not just with Canada, but with other countries.
It is unfortunate that the Conservative government seems to have been caught off guard, flat-footed and, in some respects, dumbfounded by some of the protectionist developments south of the border. It seems to have no strategy and no comprehensive response, just a shotgun reaction.
While the mine industry in Labrador has had boom times, in the past few months we have seen our share of trouble and there is more on the horizon. In western Labrador, we have already seen a number of projects deferred or cancelled, the announcement of 160 layoffs at Wabush Mines and scheduled shutdowns that will contribute to the hurt. In northern Labrador, Voisey's Bay has scheduled a summer shutdown this year as well.
Our mine operators and especially mining employees are watching the global economic situation. They are keenly aware of the impact of the world situation on their jobs, their lives and their communities.
In Labrador, just like the rest of the country, my people watched as the Conservative government denied the economic downturn, then ignored it, then delayed a response and now has brought forward a haphazard stimulus package.
Canada needs to stand firm in ensuring that protectionist measures do not exasperate the stresses that our people now face in the metal producing industry. Workers in my riding need assurances that the Conservative government will fight for their interests now and in the months and years to come.