): Madam Speaker, it is a pleasure for me to rise today in the House to speak about the forestry industry.
Many years ago, Trois-Rivières was the world capital of paper, and there are still many jobs in the paper mills, which are currently in such difficulty. The Mauricie in general has very large numbers of people who work in the forestry industry. An entire segment of our industrial base is redefining itself and trying to find new niches and novel ways of doing things. That is the main reason why we are proposing this motion today in support of this industry.
It is going through very difficult times. The recent economic and financial crisis has only aggravated a situation that was already very alarming and that the Bloc Québécois has been condemning and debating in the House for years. We certainly must condemn this laissez-faire policy, which prevents us from providing adequate support to this important part of the Quebec economy. In providing only $170 million over two years in its last budget, Ottawa has flatly turned its back on the entire forestry industry, with the connivance of the Liberal Party.
Over the years, the Bloc Québécois has brought forward a number of ideas to deal with the crisis. For reasons that are often unfortunately purely partisan or ideological, our proposals were ignored, to the detriment of Quebec and its regions. We have suggested a number of specific measures, including loans, loan guarantees, refundable tax credits for research and development, policies to encourage the use of wood in the construction and renovation of federal public buildings, and measures to support the production of energy using ethanol and forestry waste. All these measures should help the industry emerge from a crisis that has lasted too long and should ensure sustainable, viable, profitable development for all the Quebec economy and Quebec society.
I want to say a bit more about these loans and loan guarantees. Ottawa refused to help the forestry industry during the entire softwood lumber crisis. It thereby prevented the industry from modernizing its means of production and improving its productivity. The industry was unable to invest in new equipment and in the development of new products. These investments are necessary, though, for the very survival of the industry. So now the forestry companies are left without resources, totally unable to make the necessary investments. It is all especially obvious in our region of the Mauricie.
Yesterday, Monday, workers in total support of our demands demonstrated in favour of loan guarantees for the industry. AbitibiBowater—the Laurentian plant in Grand-Mère—is asking for special measures to guarantee loans to the forestry industry by the end of March. Last year, the company renewed loans worth $350 million. Since then, the market has been in trouble, as everyone knows, and demand has shrunk significantly. That is why the employees found themselves out on the street. If loan guarantees were given to this industry, we could keep our workers on the job.
In the St. Maurice Region, the Smurfit-Stone plant in La Tuque applied for protection under Quebec financial legislation. Now we have another 250 employees in the street. This is very disturbing. In the case of AbitibiBowater in Quebec, there are 7,600 employees and 8,900 retirees.
As we can see, therefore, the Bloc's motion today hits the nail on the head in terms of workers' concerns. These investments are important.
Respecting the trade agreement on softwood lumber with the United States was not easy. It was a necessary evil. The government must now, in the wake of the difficulties created by the agreement, help the industry with loans and loan guarantees. It has to support the industry.
This form of assistance, I might point out, is in compliance with the softwood lumber agreement and with NAFTA. The government keeps saying that it can do nothing and is bound by the agreement. We do not think that is the case. We are still awaiting an answer from the member for Roberval—Lac-Saint-Jean on the number of the section preventing such forms of assistance.
Right now, the forestry industry is considered high risk by the bankers. This industry therefore pays a high risk premium when it turns to the financial institutions. The result is that a number of them are unable to get funding. This is why the federal government must guarantee loans. In almost all cases, this measure costs next to nothing. It is not a subsidy. The company repays the money at term. So it is hard to understand the government's refusal to act.
According to the Quebec Forestry Industry Council, if the government guaranteed the loans by the banks to the forestry industry, the rates of interest would be more reasonable, and new projects might even be undertaken. For this reason, the Bloc Québécois, the sole defender of the Quebec forestry industry in Ottawa, is presenting this motion to correct the errors of both the Liberals and the Conservatives and to have the federal government grant loans and loan guarantees to the businesses hit so hard by the crisis in the manufacturing sector and for so many years.
Let us now talk about the second measure proposed in this motion, namely refundable tax credits for research and development. Research, innovation and development are the pillars on which an industry shapes its future. Increasing productivity, discovering new products and accessing new markets are critical to the development and survival of the Quebec and Canadian forestry industry.
During a crisis such as the one that the forestry sector is experiencing, the industry cannot be left to fend for itself. That is why, in our stimulus package, in our motion today, and in fact since the beginning of the crisis, the Bloc Québécois has been proposing refundable tax credits for the forestry industry.
I want to say a few words on measures to support energy and ethanol production from forestry waste. All the governments have come to realize that in order to find our way out of the crisis—as we can see in the United States—we must not only intervene in the economy, we must also help and fund tomorrow's economy, so that it will create jobs and opportunities for the future. The U.S. administration understands that and is investing in green and renewable energies.
Producing energy and ethanol from forestry waste is a perfect example of a traditional economy trying to develop new markets. For example, the Mauricie is one of four regions in Quebec that have been selected for calls to tenders to use forestry biomass to gradually replace fossil fuel. I should also mention that, as early as in 2010, the Amqui hospital centre, in Quebec's Matapédia Valley, is going to be heated with forestry biomass. It will be the first facility to do so in eastern Quebec.
In the Mauricie region, and elsewhere, we have reconciled the economy and the environment. Using that approach allows us to reduce our greenhouse gas emissions, diversify opportunities for our forestry industry, and make our region wealthier. Implementing measures to support energy and ethanol production from forestry waste would help diversify markets for forestry companies, revitalize regional economies that depend on this resource, reduce our dependency on oil, lower our energy costs, and give our entrepreneurs the help they really need in their plans for the future.
In conclusion, we must realize that the moneys committed to the Conservative trust in 2008 are inadequate. The distribution of the money from that trust between the provinces is unfair. Quebec is getting $2,300 for each job lost, while Alberta is receiving $25,000. Let us not forget that 40% of all communities that depend on the forestry sector are located in Quebec. That is why I am urging hon. members to support this motion presented by the Bloc Québécois. The solutions that it proposes will help this important industry in all of Quebec.