Mr. Speaker, I recall very well the Prime Minister's rhetoric during the election campaign when he introduced this initiative, Build Canada Homes, as part of a strategy that would allow the federal government to support the forestry industry. I have to say that we are disappointed. I will come back to that.
It is very commendable for the government to want to respond to the housing crisis, but is creating a Crown corporation really the only solution? As the saying goes, once bitten, twice shy. Generally speaking, federal government initiatives take a long time to be felt on the ground in Quebec. In addition, housing falls under the jurisdiction of Quebec and the provinces. I have to wonder why the government did not simply transfer the money to the provinces, which are in a position to undertake this effort to build more housing. I have to wonder why the government wants to create this infrastructure.
However, if we look on the bright side, there are some worthwhile announcements here, such as the Canada housing infrastructure fund. I know that many municipalities raised the issue with us before the last election campaign. That was something they were calling for. Along with the housing crisis, municipalities are also experiencing various infrastructure-related problems, whether it be with the water or sewer systems. This is a major concern for municipalities, so it is encouraging to know that Quebec has been allocated $1 billion from that budget to help deal with the crisis. That was one important aspect. Another important aspect of the housing crisis is the need for construction materials. Wood is the best construction material, and I want to make a quick aside to talk about that.
I do not want to get too far off topic, but I do want to say a little more about the forestry industry. Right now, this industry is experiencing an unprecedented crisis. The industry's lifeblood has been weakened by absolutely appalling conditions, including insect infestations, the historic wildfires in 2023, the caribou order, which created a lot of concern in the industry, and the infamous softwood lumber dispute, which has been dragging on and undermining the entire sector in Quebec. Quite frankly, the softwood lumber industry is now at a crossroads, and its survival is threatened in many regions of Quebec. The vital role it plays for many communities has been seriously weakened. In short, we are well aware that we can no longer rely on the commodity product model, the ubiquitous two-by-four, in the forestry sector. It makes us too dependent on the United States. We must urgently come up with a strategy that would enable us to produce more value-added products. To do that, we need to transform the forestry industry.
The Minister of Energy and Natural Resources has spoken on a few occasions about wanting to revitalize the forestry sector. That is very commendable, but given the severity of the crisis facing the forestry sector, we cannot wait for the federal government to roll out a strategy. Immediate action is needed. It is also important to keep in mind that we will not be able to fully replace the American market by increasing domestic use with a program like Build Canada Homes or by developing new markets. In these circumstances, it seems futile, to me at least, to believe that the industry will make it through this crisis without substantial financial support from the federal government.
The major players in the forestry sector are facing a liquidity crisis that is closing off any opportunities for investment in infrastructure and equipment. The federal government needs to understand that. The forestry industry is being asked to invest in new equipment so it can supply the engineered wood needed to build homes at the worst possible time in the forestry industry crisis, that is, when forestry companies have virtually no access to cash.
In my view, before even thinking about implementing a strategy like Build Canada Homes, the government must ensure that it can help as many stakeholders in the forestry industry as possible continue to operate.
Therein lies the problem. So far, the government's actions do not seem to take into account the fact that the forestry sector operates like a chain. When one link in the chain is cut, all related economic stakeholders are weakened. By failing to protect sawmill operations and the operations of small forestry businesses, the government is putting the entire forestry industry at risk.
Quebec's ministry of natural resources and forestry estimates that, since April 2017, when the countervailing and anti-dumping duties came into effect, 35 plants have permanently closed and 29 others have temporarily closed. That represents a net loss for Quebec of 2,158 permanent jobs and 1,927 part-time jobs.
Let us not forget that this whole fiasco mainly affects Quebec's disadvantaged regions. Right now, the softwood lumber dispute is resulting in a 45% decrease in revenues for sawmills that export their products to the U.S. market. I do not need to point out that no industry can survive with a 40% cut to their profit margins.
With countervailing and anti-dumping duties, plus a 10% tariff, this sector is facing the highest tariffs in Canada, yet the government refuses to take action. Not only is it failing to prioritize softwood lumber negotiations, it is also refusing to introduce a duty buy-back scheme, as industry representatives are calling for. I will explain this later.
In response to the crisis, the government announced a loan guarantee program in collaboration with the Business Development Bank of Canada in early August. Seven months have passed. Having spoken to many stakeholders in the forestry sector, I can assure members that no one is feeling the impact of the program put in place by the federal government. Without a short-term resolution to the liquidity crisis facing the forestry industry, by 2026 we will see many companies significantly wind down their operations, leading to the the loss of thousands of jobs and the accelerated decline of numerous communities that depend on forestry.
I say this because the first thing the federal government should do is protect Canada's capacity to manufacture building materials to ensure these materials remain accessible when Build Canada Homes is rolled out. That is what the federal government should be doing.
How can it go about it? How can we maintain our capacity to produce construction materials? It is fairly simple. The forestry industry will not be able to turn things around overnight. It will take months and months to rebuild its capacity. It will take a fairly long time before it is able to supply materials for the construction of new homes.
If we want to keep jobs in the forestry industry in the meantime, the only solution is for the federal government to accept the proposal that was made by industry stakeholders and the major unions. We, too, have been pushing for the government to accept that proposal.
At the end of every month, the government could easily buy back 50% of the anti-dumping and countervailing duties from people who sell softwood lumber to the United States. That way the government could keep lumber mills operational and ensure that, when its Build Canada Homes strategy is deployed, we have an industry that is capable of supplying lumber in Quebec and the rest of Canada.