Mr. Speaker, I will be sharing my time with the member for Dauphin—Swan River—Neepawa.
As the member of Parliament for Renfrew—Nipissing—Pembroke, I am pleased to represent the thousands of Canadians, both in my riding of eastern Ontario and in northern Ontario, who make a living in the working forest. Of the many issues I have championed for Canadians as a member of Parliament for Renfrew—Nipissing—Pembroke, defending Canada's forestry industry was one of my first responsibilities when I was elected six elections ago. As a member of my party's softwood lumber task force, I am not pleased that I am still talking about some of the same issues regarding softwood lumber after 16 years.
It was our Conservative government that negotiated an agreement by the end of April 2006, within three months of coming into office, to solve the last softwood lumber dispute. As a member of the government that signed the current agreement that expired on October 12, 2015, I recognize there were critics of that agreement, just as there were critics, like myself, of the previous agreement that had been negotiated by the old Chrétien administration.
Our government recognized that signing a deal that would satisfy everyone would have resulted in no deal, which was unacceptable, just as no deal today is unacceptable. Too many Canadian jobs are at risk. The softwood lumber industry in my riding is characterized by small operations, many family owned, and by people who depend on jobs from the working forest.
When I was first elected, the old Chrétien government softwood lumber policy was causing significant unemployment in my riding. Worried softwood lumber producers called my office on a regular basis with the hope that a resolution regarding the softwood lumber dispute was over. History is about to repeat itself if Canadians do not see action today.
Forestry contributes $20 billion to Canada's GDP. The forestry sector generates approximately 370,000 direct and indirect jobs in Canada. Winter is coming. Families with their principal breadwinner employed in the forestry industry wonder how they will survive this winter as they wait for this administration to act.
Since the last agreement was signed by our Conservative government, things have changed. The Liberal Party is making it a lot tougher to live in rural Canada and places like eastern Ontario where these jobs exist. Skyrocketing hydroelectricity rates, the plan to ban the burning of firewood for heat, and a carbon tax that would add 10¢ a litre on the only means of transportation for rural Canadians spells hard times. If times are tough when they have a job, imagine how tough it is going to be when they have no job, with all these new Liberal taxes.
In rural areas, jobs are hard to come by. Ben Hokum & Son Limited in Killaloe, Murray Brothers in Madawaska, McRae Lumber in Whitney, Lavern Heideman & Sons in Eganville, Gulick Forest Products Ltd., Randy Commanda Forestry at Pikwakanagan, Thomas J. Neuman Ltd., Pastway Planing in Palmer Rapids, and Bell Lumber in Renfrew are just a few of the businesses in my riding that will be affected by no new softwood lumber agreement. For Canada's forestry industry, for the people employed in that industry, and for the businesses that provide that employment that need certainty in their business if they are to continue to invest in their businesses and create jobs, an agreement is critical.
The nine-year agreement, which outlined tariffs and guidelines for the lumber trade between Canada and the U.S., has expired. The one year standstill period, negotiated by our Conservative government when in power, has now expired as well, with no free trade solution and no sign that an agreement is on the horizon.
American producers allege the Canadian forestry industry is subsidized by the federal and provincial governments. In the U.S., prices are set by the market, a situation that the U.S. contends is unfair compared to the way Canada manages its forests. It believes Canadian lumber should be subject to a tariff to offset the so-called subsidy. In the past, the U.S. has introduced anti-dumping and countervailing duty investigations against Canadian softwood lumber. Canada has successfully defended itself against those actions.
In Canada, 94% of the forest is on public lands. By law, all forest harvested on public lands must be regenerated. All harvested trees are regrown. At 161 million hectares or 43%, Canada has the highest volume of independently assessed, certified, sustainably managed forests in the world.
Canada's forest companies work with environmental groups, like Ducks Unlimited Canada, Pollution Probe, Nature Canada, and the Prime Minister's principal secretary's favourite, World Wildlife Fund.
The working forest benefits the aboriginal community in my riding. About 70% of aboriginal communities are located in forested areas. Forest companies are one of the largest employers of aboriginal people. Far more forest is damaged by fire and insects, compared to the sustainable harvest that takes place in Canada. Canadian mills are cleaner and greener.
What Canadians need is a lasting solution to ensure fair treatment of the Canadian lumber industry. For Ontario, trade with the United States is significant for the forestry industry. While up to 95% of Ontario's forestry products exports go to the United States, Ontario's share of the U.S. market equates to 3.34%. A producer in Ontario is selling domestically or to the United States.
Jobs have been disappearing at an alarming rate in rural Ontario. The need to keep jobs in the lumber industry to maintain our way of life is paramount. Forestry is big business in Ontario, exporting $3.6 billion worth of goods annually, and employing over 43,000 people, many of whom work in eastern Ontario.
Wages and salaries add up to almost $2 billion in the Ontario economy. In the Ottawa Valley, the forest industry supports thousands of jobs. Primary wood manufacturing in my riding of Renfrew—Nipissing—Pembroke is over 10 times the provincial average. I can identify over 100 forest product companies that make their home in Renfrew county. The Canadian forest products industry is a major manufacturing sector, responsible for 12% of Canada's manufacturing GDP.
What is also important in this debate over softwood lumber is how it is affecting our trading relationship with the United States. For value-added products, the United States market is number one in Ontario. More than half of all forest products in Ontario are exported. Members will understand why we, on this side of the House, use the term “crisis” when we refer to the state of the Canadian softwood lumber industry. Those products have the largest export market in the United States. Exports from Ontario have increased by more than 100% since 1991.
The United States construction industry is worth nearly $700 billion U.S. every year. It will continue to be the focus of Canadian wood product shipments. It is imperative that the government respect the special trading relationship we have had in the past and prioritize the need to resolve this trade dispute. The time is now to see if all the toadying up to the current U.S. President by the Prime Minister will make any difference. It is clear that whoever is the next president of the U.S. is bad news for Canadians. A new president means any negotiations go back to zero.
It is clear a softwood lumber crisis must be avoided. We all knew the softwood lumber agreement was expiring last week. If the current administration is paying the slightest attention, it will know the American lumber industry will push for punitive measures. Ontario lumber mills have continued to invest in their operations, and they are disappointed at the lack of government support for the industry. They need access to the U.S. market. They are looking for a more aggressive position by the Canadian and Ontario governments to ensure Ontario gets its fair share of employment.
The time has come to stand up for Canadian jobs.