Mr. Speaker, I would like to share my time with my colleague, the member for Niagara West.
I did not hesitate to vote in favour of the ways and means motion yesterday, so that I could fulfill my democratic role of debating the new NAFTA.
I am a proud regionalist, and I will fight for all the issues involving my region. I take every opportunity I can to promote the Saguenay—Lac-Saint-Jean region. I believe in my region and its proud, innovative and welcoming people. These qualities and the know-how we have built up since 1925 enable us to produce the greenest aluminum on the planet today. I will come back to that a little later.
Saguenay—Lac-Saint-Jean's three economic drivers are forestry, agriculture and aluminum. At my office, we fly the flag of our region, which was unveiled by Monsignor Victor Tremblay on July 4, 1938. The flag has four colours, namely green for the forest, yellow for agriculture, grey for the aluminum industry and red for all the labour of the hard-working local people.
Therefore, I think it is fitting that I am speaking up today to point out the flaws in the new agreement that affect Saguenay—Lac-Saint-Jean.
First, I want to point out that there is nothing in the new NAFTA to address the softwood lumber crisis. Will there ever be a solution to this problem? Second, everyone knows that the new NAFTA creates a new breach in supply management. Compensation for farmers and producers following the implementation of the last free trade agreements has been slow in coming. The compensation needs to be paid out quickly.
What is more, we are still waiting for answers regarding gains in market share and sales for the aluminum industry. The government did not conduct any studies to determine what impact the new NAFTA would have on the aluminum industry. We are still waiting.
Since one-third of Canada's aluminum is produced in Saguenay—Lac-Saint-Jean, I will use the rest of my time to talk about that subject. I am going to hammer home this message in public, in private, here in the House, in committee and to all the media outlets.
This prowess is made possible by our hydroelectricity, the know-how we have built up since 1925, and our proud, creative and innovative people.
We might think that this argument is enough to ensure the sustainability of our aluminum industry, but it is just a start.
Under the new agreement, the steel used in manufacturing has to be melted and poured in North America, but the agreement does not say that the aluminum has to be smelted and cast in North America. Since we know that there are very few aluminum smelters in the United States and none in Mexico, our workers, processors, consumers and industry are right to be concerned about the traceability of the aluminum. There is a real risk that the aluminum value chain will be outsourced to Mexico, where imports are not as robustly controlled as in Canada.
That is why the Conservative Party suggested that the government bring in an action plan and a timeline of less than a year to ensure the traceability of aluminum on the North American continent. We want the United States and Mexico to apply the same robust controls to their imports as we do here in Canada.
The aluminum market has evolved a great deal since the original NAFTA was implemented. New players who care little about labour standards or environmental considerations have shaken up the market.
The planet needs more Canadian aluminum. We must look beyond the North American market. We need to export more of our aluminum, which, again, is not only the greenest, but is also available in the highest-quality alloys for automotive, aerospace and construction applications.
The government needs to promote our aluminum around the globe, secure new markets and offer strong export programs for our businesses. Aluminum has a bright future. It is abundant and infinitely recyclable. It should be the focus of a federal environmental strategy, or even a supercluster.
The applied research being done at the Aluminium Research Centre at the Université du Québec à Chicoutimi is producing results. Aluminum can be used in unexpected ways.
We should be using more aluminum, steel and lumber produced in Canada.
We must consider putting in place, through bilateral agreements, a low-carbon footprint procurement policy in North America. This would result in a more secure North American market because we are the greenest by far. This national environmental strategy must also include aluminum's circular economy. It is estimated that we recycle 40% of aluminum while Sweden recycles 91%. We can do better, and there is a trend towards recycling. An increasing number of aluminum SMEs are recycling.
We are maintaining our leadership position in the aluminum sector thanks to innovation. It is not news to anyone that we must constantly redouble our efforts to remain at the top. In a competitive situation, the next step is always the hardest. We may no longer have the greenest aluminum on the planet or exclusivity for a given alloy.
Investment in research must be maintained, but that is not all. Major investment projects have still not gotten off the ground in our region, and without them we will lose our position as a world leader.
The expertise our workers have been gaining since 1925, as well as their creativity, innovation and commitment to health and safety, have allowed them to be competitive in terms of production costs. However, they cannot compete with foreign markets when it comes to construction costs and delays.
As parliamentarians, we need to have a closer look at this issue in committee and study the possibility of developing programs or easing certain standards in order to be more competitive.
Lastly, fiscal measures have been put in place to stimulate the steel industry and manufacturing sector. While I understand that $2 billion in government assistance will not solve all the problems over the long term, I call on the government to be more transparent regarding that assistance and ensure that SMEs in the aluminum sector get their fair share.
Pre-budget consultations for 2020 are under way. Ultimately, budget 2020 has to respond to this worry of losing our position as a world leader in aluminum. The Conservative Party and I are proposing tangible and constructive solutions to that effect.
The first would be to maintain or increase funding for aluminum research, which benefits our regional university and allows it to thrive.
The second would be to allow accelerated depreciation of capital expenses for the aluminum industry, an effective measure to reduce the uncertainty surrounding any investment plan. I am not saying that this measure will guarantee the arrival of the desired investments that would allow us to maintain our position as world leader, but it would give the industry a serious boost and could eventually secure the status of the aluminum valley in Saguenay—Lac-Saint-Jean. It would also protect, and even increase, the number of jobs in the aluminum sector. A private company cannot be forced to invest, but we can put in place the winning conditions for it to do so.
The new NAFTA is not perfect, especially for the Saguenay—Lac-Saint-Jean region. However, as I said to every government minister while congratulating them on their portfolios, I am open to working with the minority government not only in the national interest, but also in the interest of my constituents.
