Madam Chairman, I am pleased to speak to this emergency debate on softwood lumber and the trade dispute between Canada and the United States. This is an issue that is very near and dear to my heart and to my riding of Skeena in northwestern British Columbia.
My riding is heavily dependent on the forest industry. This is not a partisan or regional issue. British Columbia accounts for 50% of Canada's annual export of softwood lumber to the U.S. at an approximate value of $5 billion. One would imagine an industry that generates this much income would be the top priority of any government to look after and to fight for.
The Liberal government has shunted the issue year after year. We are standing in the House of Commons once again pleading for some action on the part of the government to help the logging and sawmilling industries. Tens of thousands of employees across Canada go to work every day uncertain if it will be their last day of employment at a particular manufacturing plant or sawmill.
On August 10 the U.S. commerce department announced a 19.3% penalty on Canadian lumber to counter what was ruled as subsidies given to the Canadian lumber producers by the government. This is a ridiculous and unconscionable level. This has been challenged three times in the past and Canada has won every time. It is unfortunate that it was allowed to get to this level before the government reacted in an attempt to try to resolve it.
The government's minister of fisheries quite rightly urged the government to step in and help B.C. He suggested that the federal government should assist the industry by posting a customs bond to cover the new tariff. He was shot down by his own government. I find that very unfortunate.
This is not just an opposition issue; it goes right across Canada. How many government members are from ridings that depend on lumber export? Tens of thousands and possibly hundreds of thousands of jobs are involved. It is a huge issue for people across the country.
On April 5 Liberal members from the Atlantic provinces stood in the House and asked their minister for continued free trade of softwood lumber to the U.S. They were given the same no answer that was given to opposition members. The parliamentary secretary to the minister as reported in Hansard said:
We will continue to fight for free access for Atlantic softwood lumber, but in the context of free access for all Canadian softwood lumber because that is supposed to be the agreement. Alan Greenspan, chair of the federal reserve, yesterday cautioned against protectionism on softwood lumber and everything else.
We totally agree with that but that was six months ago. We are now into October and we still have no resolution of the issue. Free access is required, demanded and needed. We urge the government to achieve that immediately.
The government had no problem stepping into the trade dispute with Brazil over aircraft. If the lumber industry had closer ties to the Prime Minister's Office it may have been afforded the same consideration as Bombardier. I do not know but possibly.
The U.S. Byrd amendment has been suspended. It was a ridiculous amendment that put our lumber producers in the position of subsidizing their competition. It was absolutely ludicrous. It should never have been in place, but that is out of our control.
Canada is not the only country that is challenging the legislation. We have challenged it in the past and we will win. However time goes on. In the meantime the industry and families are suffering. People are losing their homes. It is a very difficult situation.
A growing number of Canadian lumber producers are being bought or have been bought out by companies owned and operated in the U.S. The countervail issue has depressed Canadian forest company stocks while U.S. companies grow and possibly are in a better position to take over these Canadian companies with 50 cent dollars.
Who knows what the ultimate result of that will be in the future? That trend is out there. U.S. consumer groups such as Home Depot and the coalition for affordable housing are on side with Canadian producers as they see the cost of lumber rising. There is a great deal of support out there for our industry. We need to continue to build on that support. The government needs to continue working on it and push as hard as it possibly can.
Senator Baucus has asked for an anti-dumping case that would put an export tax on top of the CVD. It would mean a double tax when markets are soft. This is not acceptable or sustainable by the industry. We need to work toward more open borders to be able to trade our goods back and forth.
This also raises the issue of the perimeter safety network that has been talked about and pushes the issue a bit harder. We need to consider that in terms of free trade to make sure our borders remain open to our goods without undue delays.
There is also the option for stumpage changes. This would mean that Canadian provinces would have to change the way they sell their standing timber. This could be impractical or even impossible. It is hard to say. However these things are being worked on.
British Columbia is looking at putting in a market based stumpage system down the road that may possibly help the situation.
There is a company in my riding called Skeena Cellulose that was in serious trouble prior to the softwood lumber tariff. The wood profile in that part of British Columbia is 70% to 80% pulpwood. The small volume of saw logs and lumber that is produced has to be produced economically to subsidize the cost of logging the pulp logs which have to be removed as well. This countervail duty makes it that much more difficult.
I sent a letter to the Prime Minister and the minister in August requesting some responses as to where the situation might be. I have yet to receive a reply. I would appreciate a reply, as would people in my riding in northern British Columbia, as to the status of the ongoing talks as soon as possible.
I go back to a statement I made in the House on April 3. The government was about to host the summit of the Americas where the topic of discussion was the free trade area of the Americas. Today there is talk about a free trade agreement between Costa Rica and Canada.
I worry as to what will come of it when we have not even sorted out a dispute that is hanging over our heads with our closest trading partner and friends in the United States. I look forward to a quick resolution of this terrible situation on behalf of not only the people of Skeena but the people of Canada.
