Mr. Speaker, as we know, forestry is part of our history and identity as Canadians, and I would like to thank the member for Jonquière—Alma for introducing the bill. It provides me with an opportunity to discuss our country's vital forest sector.
While the bill is problematic, and I will touch on some of my concerns later on in my remarks, I can appreciate the desire to support our forestry industry. Our government shares this appreciation, and is in fact already acting upon this in significant ways.
Further to the points previously raised by the Parliamentary Secretary to the Minister of Public Works and Government Services, allow me to describe in greater detail some of the ways that our government has demonstrated consistent support for the forestry sector.
Economic action plan 2014 continues to make unprecedented investments to innovate Canada's forestry sector and to protect it from the threat of pests. Today this sector provides direct employment for over 235,000 workers in every part of our country, and it is a particularly important employer in rural and remote communities. In fact, in 200 communities, it accounts for at least half of the economic base.
However, the forestry sector has faced some challenges over the last decade. These challenges have come about due to a variety of factors, including the worldwide economic downturn, the stronger Canadian dollar, a structural decline in North American newsprint demand, and increased competition from other forest products.
Yet, the tide is turning. I am pleased to report that forestry sector markets are rebounding and market expansion efforts are proving successful. Jobs and the economy are the top priorities of this government, and since 2006 our government has provided over $1.8 billion in various initiatives to support the economic competitiveness and environmental sustainability of Canada's forestry sector. This includes investments in developing new markets, supporting innovation, and reducing the industry's environmental footprint. Thanks in part to this support, Canada's forestry industry is reinventing itself, by becoming more innovative, more environmentally friendly, and more global in reach. It is adopting innovation as part of its new business model.
How is all of this happening? A main hub of the forest sector innovation system in Canada is the not-for-profit organization FPInnovations, which our government helped to create in 2007. Today, FPInnovations is the world's largest public-private forest products research institute. Comprised of Canada's three national research institutes and Natural Resources Canada's Canadian Wood Fibre Centre, FPInnovations focuses on the development of emerging and breakthrough technologies, such as biomass harvesting and conversion, and nanotechnology. It conducts forest products research under NRCan's forest innovation program and is a partner in deploying promising new technologies into the forest products industry.
The investments in the forest industry transformation program, or IFIT, go another step forward. Through this program, our government is helping to see that new first-of-their-kind products, technologies, and processes with demonstrated value are brought to market. Our government has already supported 14 world-class or Canada-first projects, and economic action plan 2014 has committed more than $90 million to the program over the next four years.
A great example of a project that has benefited from IFIT is the one at Lauzon, in Papineauville, Quebec, a collaboration with the Centre de recherche industrielle du Québec and FPInnovations. In a global first, Lauzon is piloting Canadian-developed scanning technology that allows it to classify and sort logs in order to increase the amount of wood fibre recovered to 70%, compared to the current industry standard of 40%.
The capacity to convert low-quality wood fibre into customized unfinished flooring planks greatly increases the value that Lauzon obtains from each log. This technology could potentially be replicated in other hardwood flooring mills, thus benefiting the wider industry.
In another great project, Kruger Biomaterials Inc. is building a demonstration plant in Trois-Rivières for the commercialization of cellulose filaments, which are used in papermaking to soften, strengthen, and brighten paper. This Canadian innovation is another exciting world first, and as such will provide Canada with an immediate competitive advantage.
Strong, light, recyclable, and made without effluents, cellulose filaments have such a wide array of non-traditional uses that they have the potential to radically transform Canada's forestry sector.
Last December, Natural Resources Canada announced a $15 million investment in the commercialization facility, complementing earlier investments in R and D undertaken by FPinnovations. It is investments like these that are helping to shape the forestry sector of tomorrow.
Other investments have helped develop and expand markets.
In economic action plan 2012, $105 million over two years was announced to support forestry sector innovation and market development.
In economic action plan 2013, our government committed to an additional $92 million over two years, starting in 2014-15, to develop innovative new products and to diversify our markets. This market diversification strategy has helped Canada's wood products sector increase its exports in some rapidly growing Asian economies over the last decade.
For example, our government's focus on expanding export markets has resulted in a 1,000% increase of Canadian softwood lumber exports to China. Further, the value of Canadian wood products exports to China increased almost 24-fold between 2002 and 2012 to $1.4 billion.
In other trade-related activities, in 2012 our government announced the extension of the Canada-U.S. Softwood Lumber Agreement until October 2015, providing stable access to the U.S. market, and under the Canada-European Union Comprehensive Economic and Trade Agreement announced last fall, our world-class wood products would enjoy preferential access to, and increased demand from, the EU's member states.
It is no secret that expanding markets mean more jobs for Canadians, and that is good news for the economy and good news for Canadian families.
There are many other initiatives I could mention. However, with my limited time remaining, let me just mention the $18 million over four years announced in economic action plan 2014 for an action plan to assist eastern Canada in combatting the spruce budworm outbreak. Along with our government's other strategic investments, this investment is intended to help the industry and communities maintain their recovery momentum
I would now like to turn my attention to the reasons that I cannot support the bill.
While I certainly appreciate the desire to assist the forestry industry, this legislation has fundamental flaws that make it very problematic. If passed, Bill C-574 would contravene Canada's obligations under its international and domestic trade agreements, such as NAFTA, WTO, and the Agreement on Internal Trade.
Furthermore, by advocating an amendment to the Department of Public Works and Government Services Act to mandate the use of wood in the construction, maintenance, or repair of public works real property, the bill is in effect introducing an untenable bias into the procurement process.
Government contracting and procurement processes are in place to ensure openness, fairness, and transparency. Mandating the drafting of tender requirements to include a preference for wood products would grant an unfair advantage to suppliers proposing wood solutions at the expense of other important sectors of our economy, such as the steel industry and the concrete industry, for example.
In closing, our government's top priority is to create jobs, economic growth, and long-term prosperity for all sectors of our economy, including the forestry industry. That is why we are making significant investments in forest industry innovation and expanding markets for Canada's wood products sector, and it is why we are committed to continuing to support the forest sector and to achieve real results for Canadians, something the bill fails to do.