Mr. Speaker, I am pleased to speak to Bill C-24, better known as the softwood lumber deal.
From day one, this deal did not feel right to me, from the day the Prime Minister walked into the House in a huff to announce the agreement and then soon after when we saw the incredibly negative industry reaction when all the details were finally exposed. It was, in my opinion, politically motivated. The new Prime Minister of Canada's new government was so anxious to reach a deal at any cost that he was prepared to sacrifice the industry in the process. In his obsession to appear decisive, the Prime Minister seemed prepared to sacrifice one of our most important industries, not to mention the long term viability of the free trade agreement.
NAFTA and WTO judgments had clearly indicated that our industry was not subsidized. Therefore, there was no reason to capitulate on this very important principle. In fact, most experts felt that the U.S. would have exhausted all appeals within a one year period.
What message does this give to other Canadian industries involved in disputes under the free trade agreement? Even worse, what message does it give to the U.S.? Although we were winning decision upon decision on this issue at all levels, the Prime Minister still caved in and essentially sold out the softwood industry.
As members can imagine, the softwood sector is a very competitive sector. The $1 billion that the new government has taken from it and surrendered to its U.S. competitors will create long term hardships beyond belief.
I listened to a Conservative colleague yesterday speak to the fact that once the U.S. returned the $4 billion illegally taken from the industry, many in the forestry industry would be able to reinvest these sums in their businesses. They would be able to buy new equipment and expand for the future. My understanding is that most of the smaller softwood producers are going through extremely difficult times, and expansion is the furthest thing from their minds.
What bothers me, given the reality of the situation, is the $1 billion that these companies will never see and the lost opportunities for these companies to use this money, their money, to reinvest and modernize their facilities and improve their competitiveness in the world market. One billion dollars has been left on the table, wasted, in this most competitive of markets. I am not even talking about the interest on these funds, and I have not heard any answers from our Conservative colleagues on what happened to that interest. From my experience here, it is still a mystery.
Second, and even sadder, is that $500 million of these funds will go to their direct competitors to continue the harassment of our Canadian softwood businesses. It is a terrible precedent to have set, and it opens up the door to other bad decisions in other sectors. The Americans, who have always tested our mettle on these issues to see what we are made of, now know that the government will abandon its industries when the going gets tough.
Members need not take my word for it. Members may know that northern Manitoba has a substantial softwood lumber industry. Chris Parlow, president of the United Steelworkers, Local 1-324, denounced the agreement with the U.S., stating:
[The Prime Minister] has done nothing in this effort to meet with Canadian workers and hear us. What do we have for all our wins at NAFTA, WTO, US Court of International Trade? We have won every stage of this dispute, only to have the US say they won’t recognize the rulings.
Speaking of not supporting our softwood industry, yesterday during debate I heard another Conservative member of Parliament say that we received the best deal possible. There is one element that he forgot to mention, and that is the new government did not offer a temporary aid package, as was provided by the past Liberal government. This aid package, which included $900 million in loan guarantees, was essential in allowing our local softwood businesses to survive in the interim.
We were also committed to $600 million of adjustment measures. I think it is important to explain what these funds were for, since it had been done in close collaboration with industry representatives and focused on their most basic needs. Frankly, we still feel these measures would be necessary under any circumstances even if this flawed deal is passed.
I know my colleague a few minutes ago enumerated these measures, but I they are important enough to repeat. It is an important part of what we had proposed, and it would have allowed the industry to survive on a temporary basis until we received the final decisions from the courts.
We had committed $200 million over two years to enhance the forest industry's competitive position, improve its environmental performance, and take advantage of the growing bio-economy.
We were proposing $40 million over two years to improve the overall performance of the national forest innovation system; $30 million over two years to improve competitiveness of the workforce, promote upgrading of workforce skills and provide assistance to older workers impacted by forestry industry lay-offs; $100 million over two years to support economic diversification and capacity building in communities affected by job losses in the forest industry; $30 million over two years to develop new markets for Canadian wood products; and $200 million over two years to fight the spread of the pine beetle in B.C. forests.
As we see, to add insult to injury, Canada's new government just cut funding to the pine beetle program. If one has been through this area of B.C. in the last little while, one cannot understand this type of logic.
This financial package was intended to carry the industry through while the appeals moved forward.
The previous government and industry stakeholders seemed very confident that the final decisions would favour the Canadian softwood industry. The fact that the Conservatives would not even provide the industry with the option of a temporary aid package is very sad indeed. Without this option, the industry was forced to capitulate and take the deal even if it considered it totally unacceptable.
If the Conservatives were so confident, as they seem to be today, that this is such a great deal, why did they not offer a similar package and allow the stakeholders to decide on whether they wished to take the financial package and wait for a final decision by the panels or take the deal that leaves over $1 billion on the American table? It seems to me this oxygen should have been provided to the industry by the new government, but no, it was take it or leave it. It is quite obvious that the bulk of Canadian businesses accepted the deal while holding their collective noses.
It is wrong. It is a bad deal. It sets a terrible precedent. It leaves over $1 billion in American hands to better compete with our softwood industry and, even worse, to provide the U.S. softwood lobby a huge amount of money to undermine one of the most vital sectors in our country.
For all those reasons, I cannot in good conscience support this deal.