Paule Brunelle

[The Budget, March 3rd, 2008]

Mr. Speaker, I would like to know what my colleague thinks about the following. In Donnacona, I had the opportunity to attend a demonstration held by employees who were worried their plant would shut down. That plant is now closed. In Shawinigan, I also met with workers where 530 jobs had been lost.

Because of these job losses and beyond just the numbers, we are seeing families, women, children and communities that are falling apart. I see it in my riding, in Trois-Rivières. The paper mills are also experiencing difficulties. I would like to ask my colleague whether the Conservative members from Quebec are insensitive, or whether they are not acting because the caucus is dominated by western Canada and by right-wing values that we do not share?

[The Budget, March 3rd, 2008]

Mr. Speaker, I have trouble understanding the Liberal Party's reasons. I think the worst part about the fact that the Liberals are voting for this budget is that they gave up very quickly, thus losing out on any bargaining power and pressure that existed before this budget was tabled.

I will remind members that there is still time for the government to change, and instead of putting everything towards the debt, the government should help the manufacturing and forestry companies. They must absolutely not put $10 billion towards the debt this year. If there is an industry in crisis, the government should intervene and resolve the problem.

[The Budget, March 3rd, 2008]

Mr. Speaker, I will be sharing my time with the hon. member for Chambly—Borduas.

I am pleased to join the debate here today on the budget, although we are unhappy that, with this budget, the Conservative government passed up an opportunity to help the manufacturing and forestry sectors. Here are some figures.

Since January 1, 2003, Quebec has lost 151,000 jobs in the manufacturing sector. In Quebec, in 2007 alone, the manufacturing sector lost 49,000 jobs. In November 2007 alone, that is, one month after the Minister of Finance's economic statement, 11,700 jobs were lost in the manufacturing sector, which represents 71% of jobs lost in this sector in all of Canada in November 2007. In 2007, 90,000 jobs were lost in the manufacturing sector in Canada, of which over half were lost in Quebec.

Must I remind the House that Quebec will receive only a meagre 22% of the assistance offered by the Conservatives' aid package? Quebec represents 28% of all jobs in the manufacturing and forestry sectors in Canada. This amounts to 51%, if we take the job losses, and therefore the needs, into account. This demonstrates how much this major crisis in the manufacturing and forestry sectors is affecting us. In short, of the 51,000 manufacturing jobs lost in nearly five years in Quebec, most of them, 56%, have been lost since the Conservatives came to power only 21 months ago.

Indeed, since the Conservatives came to power, one in every seven manufacturing jobs has been lost in Quebec. Since April 2005, including related activities such as logging and transportation, the forestry industry has lost 21,000 jobs in Quebec. The wood products manufacturing sector alone lost 12,700 jobs last year, including 5,800 in the paper subsector. It was just as bad in 2006. In fact, the situation is only getting worse and worse. According to industry analysts, this year is shaping up to be even worse than previous years.

The forestry industry is extremely important to Quebec. Quebec has 88,000 jobs in forestry, sawmills and pulp and paper plants; 230 cities and towns depend primarily on the forestry industry, and 160 cities and towns depend exclusively on it. Nearly half the forest communities in Canada are in Quebec. The forestry industry is a key reason for settlement patterns in Quebec.

To our way of thinking, the budget was supposed to make up for the many weaknesses in the Conservative aid package. I would remind hon. members that Quebec will receive $216 million over three years, which is clearly not enough to meet industry needs.

For all these reasons, the budget was an opportunity for the federal government to recognize this major crisis in the manufacturing and forestry industries and demonstrate its sensitivity to the workers and all the communities affected. But this government's laissez-faire attitude and ideological obstinacy are undermining Quebec's whole industrial base. That is why the Bloc Québécois will vote against this budget.

The Bloc Québécois is certainly not alone in voicing these criticisms, which are the criticisms of Quebeckers. We have only one purpose: to defend Quebec's interests. Quebeckers have unanimously spoken out against the Conservative budget. Nothing for Quebec, lots for Ontario and the rest to the debt: those are the three pillars on which this budget is based.

Here are some reactions from Quebec to the Conservative budget. Jean-Luc Trahan, CEO of the Quebec manufacturers and exporters association, had this to say:

We said that these measures [the throne speech, the October economic statement and the aid package] were not enough, and we still feel that way...The budget shows that manufacturers and exporters are not among the [federal] government's priorities.

Avrim Lazar, president and CEO of the Forest Products Association of Canada, said this:

The forest products industry is facing the worst economic conditions it has seen in many decades...[the federal government ] is not doing its part.

Marta Morgan, vice-president of the Forest Products Association of Canada, said this about extending the accelerated capital cost allowance treatment for three years:

This is clearly not enough. We were hoping for more aggressive tax measures.

The Quebec federation of chambers of commerce said:

Not only did it [the government] not answer the call, but the financial aid sharing formula is still based on the provinces' demographic weight. This hurts Quebec, because the economic weight of its manufacturing sector is more significant. It is also very disappointing to see that the [government] is providing $250 million for an innovation fund for the automotive industry, which is primarily present in Ontario, while not giving one penny to other manufacturing and forestry industries in Quebec.

Guy Chevrette, the president and CEO of the Quebec Forest Industry Council said:

—the [Conservative] government has just thrown in the towel and wants market forces to clean up the forestry industry—

Quebec's Minister of Finance, Monique Jérôme-Forget, said:

Despite this very problematic environment for economic growth, you will understand that, of course, I am very envious of the federal government's $20 billion margin, over three years .... Because ... I find myself with a $200 million margin, perhaps a little more, if I include the one time [payment] of $216 million that it made to the manufacturing sector.

She also said that she was hoping to get more money for older workers because, in her opinion, the current aid is inadequate. And then Radio-Canada added this:

It is the same thing regarding the forestry and manufacturing sectors, since the moneys allocated are those that had already been announced by the Harper government in January. And [according to the minister], Quebec was expecting to get more.

The Bloc Québécois had made a number of demands. We asked that a loan and loan guarantee program be created to help businesses modernize their production equipment. We asked that the accelerated capital cost allowance for production equipment be extended. We asked that the research and development tax credit be made refundable, so that all businesses could take advantage of it, even if they are at the development stage or are experiencing problems, and are not yet turning a profit. We wanted the government to reinstate the Technology Partnerships Canada program, through which it invests in industrial research and development. Finally, we wanted the government to increase the budget of the program focused on small and medium businesses.

The Bloc Québécois also asked for the establishment of a program to support energy and ethanol production with forest waste, which is a state of the art technology. We also wanted an income support program for older workers, and we asked that the employment insurance program be improved.

Now let us take a look at what is in the budget. In its unanimous report submitted in February 2007, the Standing Committee on Industry, Science and Technology asked the government to extend the accelerated capital cost allowance for production equipment and rolling stock. This is the only one of the many recommendations that the committee included in its voluminous, unanimously adopted report that the government chose to follow. Yet even this measure's effectiveness is limited. It is a tax cut, so it will help only those companies whose financial health is good enough to pay taxes. The capital cost allowance was announced last year for a two-year period, so the measure was already in place for 2008-09. The budget announcement will not come into effect until next year. This year, we get nothing.

I would also note that the government is introducing a new accelerated capital cost allowance measure for oil companies. This accelerated capital cost allowance measure applies to oil companies that invest in carbon capture and storage.

The government announced the end of the accelerated capital cost allowance for the tar sands, then turned around and reintroduced it for oil companies that invest in carbon capture and storage, and that is in addition to the $250 million in subsidies for carbon capture and storage projects. Instead of putting an end to these kinds of gifts for oil companies, as the Bloc wanted, Ottawa is introducing new ones.

The budget provides $250 million in subsidies over five years for investment in research and development, but only for the auto industry. There is nothing at all for Quebec's leading sectors even though the Standing Committee on Industry, Science and Technology asked the government to support research and development in leading sectors. Several industrial sectors are concentrated in Quebec, including environmental technologies, the pharmaceutical industry, reproduction technologies, advanced transportation and new materials. All of these businesses would have benefited from renewed federal investment in research and development.

Ottawa decided to support just one: Ontario's auto industry. We think that is an outright insult.

The government has also made minor changes to tax credits for research and development, which is not a bad thing, but it is not much. It is a kind of administrative fine-tuning, not a brand new measure.

I see that my time has expired. In short, this failure to do anything for the manufacturing and forestry sectors is a tragedy. This budget does not give us our fair share—

[Manufacturing and Forestry Industries, February 27th, 2008]

Mr. Speaker, when mad cow disease was wreaking havoc on Alberta's herds, government assistance went primarily to Alberta. When auto assembly lines closed in Ontario, the government put together a $250 million aid package especially for that province. Now that Quebec is being hammered by the crisis in the manufacturing and forestry industries, Alberta is getting proportionally more money. Crises in the rest of Canada get targeted measures; crises in Quebec get pro-rated measures.

How does the minister respond to claims made by Mario Dumont and Ms. Jérôme-Forget that all of the money to help the manufacturing and forestry industries is going to Ontario, and none of it to Quebec?

[Regional Economic Development, February 12th, 2008]

Mr. Speaker, the Economic Development Agency of Canada is about to withdraw its support to community organizations that make a significant contribution to the emergence of job-creating businesses across Quebec.

Does the minister realize that, because of his obsession with streamlining his department's programs, he continues to threaten jobs in leading-edge sectors in Quebec? Does he realize that he is spelling the death of organizations dedicated to the creation of high-tech jobs, as is the case with Technopole, in the Saint-Maurice Valley?

[Canada Elections Act, February 11th, 2008]

Mr. Speaker, I congratulate my colleague on his speech.

I am very troubled by the part of the third motion where the government wants to make the party responsible for debts incurred by its candidates. I find that truly unacceptable. In fact, it is as if I went shopping with my credit card and then asked the party to pay the bill. It seems to me that candidates should have enough self-confidence to invest in their own campaign and believe in their ability to win without a party, which is a highly democratic political organization, having to be responsible for debts incurred by anyone who decides to run in an election.

Why a government would propose such a motion is beyond me.

[Prebudget Consultations, February 7th, 2008]

Mr. Speaker, I would have a hard time commenting because this is not an issue I am familiar with.

[Prebudget Consultations, February 7th, 2008]

Mr. Speaker, in November 2007, the Standing Committee on Industry, Science and Technology adopted a report. The report contained 22 recommendations to address the crisis. The report was tabled in the House after the committee spent a year studying the issue and hearing witnesses. Of course we think it is important for the government to adopt a number of these measures. However, only one of the measures—accelerated capital cost allowance—was chosen, and then only by half measures, unfortunately. We still think these recommendations are valid. The committee gave its unanimous approval, and we would like to see them in the budget.

It is also important to understand that during the prebudget consultations, we met with groups that are often ignored in our budgets, such as status of women and social housing groups. The government often forgets to consult these groups because they do not represent big business. All the same, these people are deeply involved in areas that experienced harsh program cuts, and now they would like their funding back.

[Prebudget Consultations, February 7th, 2008]

Mr. Speaker, I thank my hon. colleague for her question.

Bloc Québécois members held prebudget consultations across Quebec. We met with people from businesses, organizations, people from all sectors, workers and union representatives. Naturally, the measures we put forward here in the House are a reflection of what people told us and their demands, and they all said the same thing. It is always an honour for us to bring to this House what the majority of our citizens want.

We know that the Bloc Québécois is well established in all areas of Quebec. We are very proud to submit these suggestions, in an effort to end this major crisis in the manufacturing and forestry sectors.

[Prebudget Consultations, February 7th, 2008]

Mr. Speaker, it is with pleasure that I speak to the prebudget consultations today. First of all, we should remember that the Bloc Québécois had set six conditions for its support of the 2008 budget: an assistance plan to help workers and businesses affected by the forestry and manufacturing crisis, measures to restore dignity to seniors, the return of the education and social programs transfer to 1994-95 indexed levels, increased funding for social housing and a reversal of the Conservative government's ideological cuts, increased funding for culture, and a 180-degree turn on the environment.

You will not be surprised to hear me talk about assistance for the manufacturing sector in this House. I am the industry critic and therefore take considerable interest in this matter. The manufacturing and forestry industries are experiencing an unprecedented crisis. The committee recommended that the government implement various initiatives to help the sectors and workers affected by the crisis.

The Standing Committee on Finance therefore recommended that the government allocate $1 billion to the forestry sector. The Committee also recommended that the government allocate $1.5 billion in reimbursable contributions to allow companies to purchase new equipment. There was also the recommendation to increase the excise tax on gas to 5¢ per litre and to permanently transfer this federal tax, effective 2008-09, to all municipalities, a request made many times by Quebec municipalities.

We also want to support the workers affected by this crisis. To that end, the committee recommends that the government create an independent employment insurance fund and an assistance program for older workers. Naturally, the Bloc Québécois is disappointed that the committee did not accept its suggestion to use the surplus in the independent employment insurance fund to enhance the program.

Furthermore, the committee ignored our request to reinstate the Technology Partnerships Canada program, at a cost of $500 million. But the facts are tragic. Action must be taken; the situation is urgent.

Here are some figures. Since January 1, 2003, 148,000 jobs have been lost in the manufacturing sector. Since the Conservatives took power in 2006, 78,000 jobs have been lost in the manufacturing sector. And these numbers are just for Quebec. Since April 2005, 21,000 jobs have been lost in the forestry industry alone, which includes the related industries and services, such as transport and forestry equipment. That is just over half of the total in Canada. Since the Conservatives took power, Quebec's forestry industry has lost nearly a quarter of its jobs. In total, of the 288,000 jobs lost in Canada, 148,000, or 51%, were in Quebec.

I hardly need remind hon. members that the forestry industry is important to Quebec. Quebec has 88,000 jobs in forestry, sawmills and pulp and paper plants; 230 cities and towns depend primarily on the forestry industry, and 160 cities and towns depend exclusively on it. Nearly half the forest communities in Canada are in Quebec. The forestry industry is a key reason for settlement patterns in Quebec. We do not want people to leave our regions.

We have worked to propose solutions that we would like to see in the coming budget. They include support for businesses that want to buy new production equipment. This can take the form of a program of loans and loan guarantees to help companies modernize.

Companies that are suffering and having difficulty borrowing money on private markets must pay a risk premium, which increases the interest they pay. If companies are to compete successfully, they must buy new production equipment, which means that the government must guarantee their loans.

We also suggest a series of investments and tax measures to support research and development in industry. The federal government must provide better tax support for corporate research, development and innovation. It must expand the range of expenses that are eligible for funding, for example, by including the cost of taking out patents or training personnel to work on innovative projects.

In addition, the R&D tax credit must be made refundable so that companies can take advantage of it, even if they are at the development stage and not yet turning a profit. It can take many years to develop a new product. We need to support our businesses.

The federal government really must support research and development by cancelling the cuts to the Technology Partnerships program and increasing the program's funding instead. It must make sure that the program funds really go to the provinces so that they can distribute the funding where it is most needed.

Leading-edge sectors such as pharmaceuticals, environmental technologies, advanced materials and production technology have been left on their own. Contrary to this government's claims, the tax cut is not a cure-all. We must reintroduce an economic diversification program for forest regions.

Because I represent a resource region, I am in a position to understand the difficulties a region can experience when its primary economic activity is in jeopardy. A number of regions in Quebec are taking the full brunt of this crisis in the manufacturing and forestry sectors.

The Bloc Québécois is therefore proposing that special attention be given to the resource regions that are affected by the present forestry crisis and that desperately need to diversify their industrial base. We must therefore restore a regional economic diversification and support program for the regions that have been hit by the forestry crisis.

We must offer tax breaks for the companies operating in resource regions and support them while they grow by encouraging skilled workers to settle in the regions. We must create a program to support the development of energy and ethanol production using forest waste.

The Minister of the Economic Development Agency of Canada for the Regions of Quebec has eliminated the program specifically devoted to the regions affected by the forestry crisis. That is the laissez-faire policy adopted by the government. We saw nothing in the Speech from the Throne or in the Minister of Finance's economic statement. We must see some solutions in this budget.

On the question of revising trade laws to provide our businesses with better protection against unfair competition, we can see that as a result of the Conservative laissez-faire trade policy our businesses are being left to their own devices to deal with what is sometimes unfair competition. Canadian antidumping laws date from the Cold War era and are completely out of date in the present situation, particularly for dealing with China. It is urgent that Canadian trade laws be brought up to the same standard as in the other industrialized nations, in particular the United States and the European Union countries.

As well, despite the fact that the Standing Committee in Industry, Science and Technology unanimously recommended that it do so in its February 2007 report on the manufacturing sector, the government is not modernizing its antidumping legislation. They are completely out of date and give our businesses less protection than the laws of virtually all of the industrialized nations.

Lastly, we propose better financial support for the workers who are hit by the crisis in the manufacturing sector. We believe it is necessary to enhance the employment insurance program. We also have to make sure that we avert an exodus of workers hit by this crisis, and we have to support those of our workers aged 55 to 64 who are victims of mass layoffs.

To conclude, the Bloc Québécois is close to the grassroots; it stands with the people of Quebec; and it is trying to find solutions that will address this crisis. It seems to us that the next budget is an opportunity to deal with this, and we call on this government to take action. It is urgent, and this is the time when it must be done; the future of our communities depends on it.