Mr. Speaker, as usual I primarily want to speak about my riding of Yukon. I will also give some details of HRDC programs related to softwood lumber.
As in all of the debates, I mostly want to talk to the Americans about my riding. Virtually all of the sawmills are closed now, even before the tariff that will be coming. I urge the Americans to see if they can find Yukon on their maps. It is right up there beside Alaska.
Yukon is so many hundreds of miles from them we could not possibly be a threat. It is a very rural area with only 30,000 people, with a lot of villages of between 500 and 1,000 people. How could we possibly be a threat to the great American empire? How could our sawmills be a threat to the Americans' great computerized sawmills and industry? It makes them look foolish that they would even consider putting a 27% tariff on our mills. A lot of the mills cannot open even without it. Look at the hostile environment, with temperatures of -30 degrees and -40 degrees. They have to pay heating costs, transportation costs and extra costs of living.
A recent consultant study of our industry suggested how important it would be even to eke out a little viability for our industry, a lot of which is white spruce. If the Americans find Yukon on their maps, they can consider how far we are from their markets and how improbable a threat we are.
I want to talk about some of the programs we have put in place. The Government of Canada recognizes that onerous tariffs imposed by the United States have the potential to create dislocation in the lives of individuals, their families and whole communities that depend upon the viability of the softwood lumber industry.
There is no question we face a serious and complex challenge, but we will confront it and solve it together. The federal, provincial and territorial governments as well as community leaders and industry all have a role in developing the solution. That is why I am pleased to speak to the motion by the hon. member for Joliette and explain to Canadians how we are responding to workers and communities caught in this difficult situation.
First and foremost we must remember that the employment insurance program applies everywhere in Canada. It has been specifically designed to respond to the changing levels of unemployment in any given region. Should the unemployment rate increase in a particular region, it becomes easier for workers to qualify for the benefits and the benefit period is extended.
We recognize that to suddenly lose a job as a result of circumstances beyond one's control can be very difficult. It can be a very traumatic experience to the wage earner and everyone in the family. The last thing Canadians need in a situation like that is a lengthy and complex process before they can receive the benefits they need and deserve. That is why HRDC will take a proactive approach to assist the affected individuals in each and every community with fast and efficient processing of claims.
Local officials will travel to workplaces to help displaced workers with their claims. To further speed up the process, we will work with employers to make use of automated payroll information where available. We will also ensure that we make full use of the flexibility of work sharing provisions under employment insurance which allows employers to shorten work weeks and reduce costs while employees receive income benefits to help cover the shortfall.
Past examples show that these approaches work and make a real difference. Last fall when significant layoffs occurred in Canada's airline, tourism and high tech sectors, we used precisely these approaches to great effect. While income assistance under employment insurance is a vital, immediate response to the needs of displaced softwood workers, it is only a part of what we need to do and what we will do. Sometimes workers need services that help them find work, such as skills development programs, career counselling, job search skills, assistance in preparing resumes and a variety of other services.
In the case of Quebec, in 1997 the province opted for a transfer agreement. It was given responsibility for designing and delivering its own active employment insurance measures. The Government of Canada increased the funding made available to Quebec from $457 million in 1997 to nearly $600 million this year to assist unemployed workers.
Workers in British Columbia can also obtain these services under the auspices of the co-managed labour market development agreement between the Government of Canada and the Government of British Columbia. Over the last five years the value of the LMDA has increased by over 40% to $289 million this year, despite the fact that unemployment decreased over that time period.
This is a significant pool of resources upon which to draw. The joint federal-provincial management committee that oversees the LMDA has already identified the softwood sector as a priority for investment. We look forward to successful collaboration on this front.
As the Government of Canada indicated at the softwood summit on April 29, $13 million will be made available to help softwood lumber workers in British Columbia with the type of supports and services I just mentioned. I should add that the collaboration between the governments of Canada and B.C. will not stop at the LMDA itself. Our officials will work together to match clients with other federal, provincial or territorial programs drawing on our full range of tools and supports for displaced workers.
We will work with communities anywhere in Canada that are affected by these punitive tariffs because this trade dispute not only impacts companies, individual workers and their families, but whole communities as well. Many communities, particularly those in rural and remote areas, are heavily dependent on the softwood lumber industry for their economic and social well-being. That is why HRDC efforts will have a very clear community focus.
As a first step HRDC is already strengthening its capacity to track EI claims in the softwood sector so we have an ongoing accurate assessment of the extent of the dislocation and its impact on these communities.
Second, we will work with other departments, specifically Natural Resources Canada, Industry Canada and western diversification to do some community mapping. Specifically this will involve getting a detailed sense of the communities most likely to be affected and the degree of severity of the expected impact on any given community, given its level of dependence on the softwood industry.
Finally, just as we will work together to gain a fuller sense of the challenges we face, so too will we work jointly in the community as we respond, maximizing the integration and co-ordination of our efforts.
As we move forward, the key question is whether our existing tools, employment insurance income benefits and active measures are enough. It is important to recognize that we face a complex and dynamic situation. For example, even the United States has plans to impose duties. The U.S. housing market is booming. Given such cost cutting pressures, it will be a real challenge to gain a full sense of the potential impact.
We also need to consider broader issues including the state of the labour market in general and the softwood sector in particular, as well as broader questions of community and economic diversification. The key will be for us to work across federal government departments and with territorial and provincial governments as well as with community and industry leaders at the local level. By combining our experience and building on our partnerships we can better appreciate the nature of dislocations, make better use of the tools at our disposal and if needed, examine other potential avenues.
It can be seen that we are there in the communities across Canada, ready and willing to help as the need arises. I would like to thank the hon. member for moving the motion. I would like to say to those Americans who did not hear me the last several times, that the poor people in America, the people who cannot have houses, really do not need to suffer for a few industries to have increased prices put upon them by some local interest groups.
To some extent everyone in the House is passionate on this issue. We have to wage the battle. The Americans have to wage this battle, those who are losing out, those who have to pay the high prices for lumber. I hope we can all work together to solve the problem and in the meantime alleviate the problems of the workers.
