Mr. Speaker, I am pleased to speak to this issue again because as New Democrats we have been speaking out about this issue for some time.
I would like to bring to the House's attention that I was in Thunder Bay earlier this week where I met with people from the ridings of Thunder Bay—Superior North and Thunder Bay—Rainy River because of the announcement that was made just this past week by Bowater at its Kraft mill. On the very day that the provincial Liberals announced an electricity rebate for northern mills, Bowater was telling its employees and their families that it was demanding the right to reopen contracts, demand concessions and that the future of Bowater was on the line.
That was on the same day that Tembec Timmins went down. Tembec Timmins is fundamental in the softwood industry in our region. That was also the same day that the provincial Liberal minister, David Ramsay, told the people of northern Ontario not to worry, that they had gotten off scot-free. He was sounding somewhat like the Marie Antoinette of the forestry industry at that point.
I went to Thunder Bay to meet with the employees of Bowater because Thunder Bay was supposed to have been on the list of communities for hearings on softwood. A promise was made by parliamentarians at the committee that they would have hearings across Canada, from one end of the country to other, to hear from the people who were being affected because certain key communities will definitely take the brunt of the legislation if it goes forward. Thunder Bay is certainly one of those communities where the people were very upset when they heard that the hearings were cancelled. The committee cancelled the hearings with the help of the Liberal members, unfortunately, because the Liberal members of Thunder Bay stand up alongside the Prime Minister and give this deal the big two thumbs up. They sold out the people of northern Ontario on this and I, in no way, can allow this to go unrecorded because this is an issue where we need the people of northern Ontario to stand together.
I would like to reiterate some issues in case some members are not quite aware of the impacts of this deal and what it will mean for the forest dependent regions of the north, and particularly northern Ontario which I represent.
The first issue is the process that was entertained in this deal going forward. It was very clear that the government was interested in a quick photo op. It wanted a dirty deal done dirt cheap and done quickly so it could turn around and show back to the electorate and say that in its little check box of things that the Conservative government accomplished it finally dealt with the softwood deal. However, to get a deal done dirt cheap and done dirt quickly, it basically had to concede everything to the U.S. trade competition.
Our government did not seem to have a problem with that. It sat down and carved out a deal where basically we gave away every right that we had won in court decision after court decision in terms of defending our rights to maintain a free and open market in wood. The government came back here thinking that industry would sign on. Industry did not sign on. Industry was deeply opposed to the deal because there are number of elements in the deal that will affect the long term viability of industry in northern Ontario for years to come.
First is the fact that we were asked to agree to a crippled market and if that market starts to grow the tariffs start to come on again.
Second, our companies are having to give up the legal rights that they fought for and won.
Third, we will be taking money that belonged to our producers and giving it to the United States. It is a billion-plus dollars, and of that, $450 million goes to our direct competitors. Here , in Canada where we have had community after community impacted, mills going down and a need for government retraining, restructuring and commitment to help the industry get on its feet, there is no money. There is no money for Red Rock, Dryden, Thunder Bay, Opasatika and Smooth Rock Falls but our competitors in the United States are using our money to retool.
We had our direct competitors who, after years of fighting the softwood deal, were pretty much at the end of their road and they did not have any money left in their pockets. Now they are flush with cash.
Bowater is an American company in Thunder Bay. Like many of our companies now, Bowater started out as a family operation. It could have been Great Lakes Paper. It could have been, in my region, Malette and McChesney, who were bought out and have become larger and larger corporations, further and further from the source. Many of these corporations now have operations in the southern United States and in the north.
When we talk to people within the industry, it becomes very clear as to where they will be putting their investment dollars. They will not be investing in the forest industries of Canada right now because there is no incentive to do so. Will they invest in Georgia? We can bet they will. Will they invest in South Carolina? They are already doing that and they will be using the money from our producers to retool their plants south of the border. It is an outrageous situation.
What is so disturbing about this deal is that another aspect to this would have come out in hearings in the amendment stages had the other parties not tried to silence the amendment process by limiting 60 seconds per amendment. These are amendments that will have profound impacts.
What we are being asked to do in this House of Parliament is to use the power of the Government of Canada to act as a predator on one of our primary industries. The forestry sector in Ontario is about the second largest industry in Ontario. We are being asked to go after our own producers because our producers have been efficient and they have used their resources well. In northern Ontario we have managed our forests well. We have a bountiful harvest of trees. We have a good system for bringing that forward and a public system but we are being asked to impose tariffs. We are putting a punishment tax on our own industry in order to placate Washington.
What is an even more outrageous predatory aspect of this deal is that our government is insisting on a further punishment tax for the companies that are holding our their legal rights, rights they have fought for year after year in court decisions. The government will impose a further punishment tariff on them.