Madam Speaker, I rise today in the debate on softwood lumber. It is an issue which we all need to take seriously. I congratulate the Alliance Party for bringing it forward.
About two weeks ago the hon. member for Cumberland--Colchester asked for an emergency debate on this subject. Unfortunately the Speaker did not see fit to allow an emergency debate which at the time would have been a much better ruling by the Speaker and we would have been able to actually move forward more quickly on the subject.
The supply day votable motion brought forward by the Canadian Alliance reads:
That, in the opinion of this House, the principles and provisions of the Canada-U.S. Free Trade Agreement, FTA, and the North American Free Trade Agreement, NAFTA, including their dispute resolution mechanisms, should be fully applied to trade in softwood lumber, and it urges the government not to accept any negotiated settlement of the current softwood lumber dispute outside of the FTA and the NAFTA unless it guarantees free and unfettered access to the U.S. market, and includes dispute resolution mechanisms capable of overriding domestic trade measures to resolve future disputes.
At first glance that is a very good motion. I expect it is a motion the PC Party would support. However, other issues should be taken into consideration.
The first issue that needs to be taken into consideration is that we are in a crisis situation. Some 42% of Canadian lumber exports come from British Columbia. At the present time somewhere in the neighbourhood of 30,000 forestry and forestry associated jobs have been lost in B.C.
A year and a half ago newspaper headlines in British Columbia were saying that British Columbia was bleeding jobs. It is certainly bleeding more jobs today than it was a year ago. We should be prepared to lobby extremely intensively in the U.S. to get a negotiated settlement. We need to continue this with utmost haste.
The Prime Minister has been discussing the issue with President Bush. We advised him to do that more than a year ago. The PC Party raised questions in the House when the softwood lumber agreement was about to expire. There was no panic on the other side of the House. There was no sense of urgency on the government side.
It is nearly a year and a half later and we are in a crisis situation. A huge industry is being severely threatened by its inability to export lumber and raw logs south of the border. We should understand where most of the American interference is coming from.
There is a huge demand for Canadian lumber and a larger demand for Canadian raw logs. I do not want members to think from my earlier statement that there is a problem with exporting raw logs. It is quite the contrary. That is not the problem. The Americans want our round logs to feed their sawmills. Without question that has been a great part of this entire debate.
The Prime Minister and the Minister for International Trade do not seem able to negotiate a settlement with the Americans.
I am not quite certain but either yesterday or the day before, the Prime Minister linked the trade in softwood lumber to the trade in other Canadian commodities. In answer to a question in the House he said that the Americans will talk to us on softwood lumber because they need our energy, because they need our heavy oil, because they need our gas. If the government knows anything at all about the very basis of trade agreements, it is that issues should not be linked. Softwood lumber should not be linked to oil. Softwood lumber should not be linked to gas. Softwood lumber should not be linked to automobiles. The government should not link, period. It becomes a slippery slope and tit for tat. It is a hopeless situation which neither country will ever win. The fact that this agreement needs to be settled is without question.
Madam Speaker, I would like to say in the midst of debate that I will be sharing my time with the member for Fraser Valley. I am sure he will add some excellent comments to the debate.
I would like to summarize a number of the mistakes the government has made. The government failed to recognize that the deadline was looming. Long ago, more than two years ago, I raised this in the natural resources committee. The government was unaware that the softwood lumber agreement was expiring. It was completely impervious to it. The government did not understand it. It was a problem then and it is a greater problem today. The government cannot link issues. It continually tries to do that.
Only yesterday, for the first time in a year, did the government have a stakeholders meeting. The very people who are closest to this issue and who understand it the best had never been called together by the government. The government had met with some of them individually, but it had never met with them all in a group.
The timber producers and exporters in British Columbia and the timber producers and exporters in Atlantic Canada were talking to each other, but they were not talking to each other and the government at the same time. All of them were never in a room together. They did not know what Ontario's position was or what Quebec's position was because they had not been put in a room together. It is unbelievable that a government with that much arrogance on this important an issue had never had a stakeholders meeting.
We should understand that after the Canada-United States softwood lumber agreement expired in April 2001, the U.S. department of commerce levied what we would call an unfair duty, but the initial duty of 19.31% on countervail. There is some discussion from the people I have been talking to in the industry that it may be increased to as much as 50%. The U.S. followed that up on August 10, 2001 with an additional 12.58% anti-dumping charge.
Many parts of Canada were left out of the countervail. Atlantic Canada was left out of the countervail charges, however no one has been left out of the anti-dumping charges because it affects the entire country.
Since talks are resuming today in Washington, this debate is very timely. However, I question the ability and the competency of our Canadian team. We are sitting here a year later and the British Columbia economy is in tatters. In the lumber industry alone 30,000 jobs have been lost.
Madam Speaker, I recognize the one minute signal, but I do not see my colleague for Fraser Valley. Perhaps the questions and answers will take that up and if he is not here by then, I will continue if that is possible.