Mr. Speaker, I appreciate this opportunity to again speak on the softwood lumber products export charge act. I did have the opportunity to address the House earlier in the debate, but needless to say there is a lot more that can be said about this bad deal.
When I ended my speech last month, I gave the final word to the Prime Minister and I would like to start there this time. I want to quote the Prime Minister who said in this House on October 25, 2005:
Most recently, the NAFTA extraordinary challenges panel ruled that there was no basis for these duties, but the United States has so far refused to accept the outcome and has asked Canada to negotiate a further settlement. Let me repeat what I have said before, and let me be as clear as I can. This is not a time for negotiation. It is a time for compliance.
Those were the words of the current Prime Minister here in this House almost a year ago. It seemed like he was making an argument for the United States to comply with the court decisions that were made in the softwood lumber dispute. He was making that argument very clearly.
Sadly, it seems he has reversed his position completely now. It seems he was actually calling for us to fall in line with the desires of the American industry, the American government and the American protectionists. It is a very sad turnabout and a very dramatic one. It is a capitulation to those interests that have been working so hard to destroy the Canadian industry and with it Canadian communities and Canadian jobs.
It is so ironic that the Prime Minister's reversal comes at a time when a just and fair victory for Canada was in sight. It has been said many times that this agreement and this legislation actually snatches defeat from the jaws of victory. That is exactly what is happening here.
Unfortunately, the victory that Canada was on the verge of has been lost because of this proposal and this legislation. That is why it is a bad deal for Canada, a bad deal for British Columbia, and certainly a bad deal for my home riding of Burnaby—Douglas.
The ironies continue. It was just last Friday afternoon that another court case was decided in Canada's favour. That case before the U.S. Court of International Trade, CIT, found in Canada's favour. That court said that every last penny of the $5.3 billion of illegally imposed duties on softwood lumber exports over the years had to be returned to Canada. That money was taken from Canadian companies, Canadian communities and Canadian workers. That court said every last cent had to be returned. This was just last Friday where there was yet another victory in the courts.
Indeed, we were running out of court opportunities. We were getting down to the wire on every last one of them. Incredibly, it was Canada's Ambassador to the United States, Michael Wilson, when he was before committee this summer who said the opportunities for court action on this were coming to an end. We were absolutely on the verge of a wholesale victory on this issue in the courts. Unfortunately, that has all been thrown by the wayside by this agreement and this legislation.
I want to come back to the speech I had hoped to deliver the first time around and some of the points that I did not have time to talk about.
If this is such a great deal for Canada and for the Canadian industry, I have to wonder why page after page of this bill is devoted to punitive measures to punish Canadian businesses that do not comply or do not agree with this legislation. If this was such a great deal for Canada and for Canadian businesses and communities, why has such emphasis been placed on punitive measures in the legislation?
I was surprised to hear in this House last month a Conservative member from Atlantic Canada say that the government would have to pursue an amendment to its own legislation because the wording of the maintenance of the Maritime lumber exemption was not strong enough or clear enough, and did not actually use the word “exemption”.
It is hard to believe that on a part of this whole controversy where there is absolute agreement in every corner of this House around the need to maintain the Atlantic Canada exemption, that the government could not even get the wording right in this legislation on that aspect of the bill. It could not even get it right when everyone agrees how important that is. It could not get it right when its representatives from Atlantic Canada were so involved to maintain this exemption.
I think that is another example of how bad this bill really is. If there is a point where there is no controversy, where there is a clear agreement and where the language has been accepted for some time, why that language could not even make it into this legislation is beyond me. If the government cannot do it on that front, what is happening on the other clauses that are more controversial and more complicated?
Another important flaw in this legislation is that it does nothing to address the serious issue of the export of raw logs. One observer of the forest industry in British Columbia, and someone who has carefully poured over the agreement and the 82 page appendices to the agreement, notes that this legislation goes out of its way to be specific about what is covered, about what aspects of the softwood lumber industry are covered. In fact, he says it is dizzying in its specificity. He also says:
Taxes will apply to “coniferous wood, sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness exceeding six millimetres”. In similar minutiae, wood siding, flooring and fencing are discussed.
That is all very well, but not once in this agreement and in this legislation does the word “log” appear. We know that the export of raw logs is a serious issue facing the industry. It is certainly a serious issue for the industry in British Columbia.
To fail to close a loophole around the export of raw logs from private lands is a huge failure. It gives raw logs from private lands a competitive edge over logs processed, for instance, in British Columbia.
This will discourage value added production and jobs in B.C. and will stimulate more raw log exports to the United States where workers will process them. It robs Canada and Canadian workers of opportunities and jobs. Jim Sinclair, the president of the B.C. Federation of Labour, has pointed out that:
More than 3,300 jobs in the forest sector were lost to log exports in 2005 alone and an estimated 27 mills closed at a cost of 13,000 jobs between 1997 and 2004.
This is work that should have remained in Canada, with Canadian workers and in Canadian communities. It is an absolute travesty that this has been allowed to happen. It is further unbelievable that this opportunity to deal with this issue has slipped through our fingers and another reason why this is a bad deal.
When we add those jobs lost to raw log exports, as the president of the B.C. Federation of Labour pointed out, when we look at the fact that 3,000 jobs have been lost in the last week in the forest industry alone, we come to realize just how bad this legislation and this deal truly is.
Bill C-24 also subjects any change in provincial forest policy to approval by the United States. It is incredible that we would give up our sovereignty in that way.
I think that Steve Hunt, the United Steelworkers Western Canadian director, said something that is very instructive with regard to this. He said:
This deal doesn't need tweaking, it needs a complete rewrite. The proposed Agreement was part of a “sell-out strategy”. If this is what talks between [the President and the Prime Minister] have achieved, then we'd prefer continued litigation, rather than a Softwood Lumber Agreement that might only last a few years and gives up provincial sovereignty over forest policy.
I think it is very clear that this is a bad deal. It is a bad deal for Canada, for British Columbia and for Burnaby. What will happen with that $1 billion in illegally collected tariffs, which we will not get back because we will forfeit to the United States? It will go directly to the lumber industry to mount the next campaign against our industry. It is incredible that we should even be discussing the bill at this point in the House.