Mr. Speaker, coming myself from a region deeply affected by the forestry crisis, I am glad that we can debate this issue today. This is something of great concern to the population of Saguenay-Lac-Saint-Jean, and more particularly the workers of the forestry sector.
For some time now, the Bloc Québécois has been demanding concrete measures to help the manufacturing and forestry sectors. The Liberal and Conservative governments in recent years have ignored the grave crisis suffered by many resource regions in Quebec.
I would like to take the few minutes given me to say more about the forestry sector, which affects many thousands of individuals in my region, and the measures that could be taken to mitigate this crisis.
The forestry crisis afflicting Saguenay-Lac-Saint-Jean and many other regions of Quebec is far from being solved. The Conservatives claim to have invested a few million dollars in the forestry sector. These measures are clearly inadequate in light of the economic crisis that is deeply affecting the resource regions of Quebec and Canada. And the rise of over 25% in the Canadian dollar since the beginning of the year, in relation to the American dollar, is becoming a double blow for the people.
The merger a few months ago of Abitibi-Consol and Bowater is in some ways a consequence of this crisis. At present, no reorganization plan has been presented by the American company in spite of the numerous concerns of the population and the workers of Saguenay-Lac-Saint-Jean.
The new company will have some 5,500 employees in the region and will control close to 75% of the forestry resources. It will have to make some important economic decisions. These are two companies in financial difficulty that have merged. Many are expecting job cuts in view of the crisis affecting the forestry sector.
With the emergence of wood from China and new industry conditions, many companies will have to carry out major lay-offs in the coming months if no measures are put in place by the Conservative government.
Recently local leaders and several heads of sawmills, including those at Petit-Saguenay, Saint-Fulgence, Roberval and Saint-Félicien, have said they are worried about their future. Bad news is regularly heard. I give you some examples. Last week, Abitibi-Consol announced the lay-off of some 80 workers from the LP engineered wood plant in Larouche, in addition to the announced closing of the Scierie Lemay, which will affect 83 employees by the end of November.
In a number of communities in my region and in Chicoutimi—Le Fjord, the effect of the crisis in recent years is already being felt. One of the largest forestry cooperatives in Quebec, located in Laterrière, went bankrupt in 2004. That bankruptcy has had an indirect impact on many sawmills in Saguenay-Lac-Saint-Jean. The six forestry cooperatives in my region have lost 1,000 jobs in the last seven years.
What this means is that the two Conservative members for my region, the members for Jonquière—Alma and Roberval—Lac-Saint-Jean, have to stand up for the interests of Saguenay-Lac-Saint-Jean, as I am doing today. Their silence is unacceptable. They have a duty to persuade this Conservative prime minister to propose a plan to combat this crisis.
The Bloc Québécois has been trying for several months to get the Conservative government to grasp the reality of this crisis in forestry.
The Conservative government has to implement concrete measures to help the forestry industry. The Conservative government has just announced billions of dollars in income tax cuts for high earners, oil companies and banks, but it is not doing anything about the forestry crisis. Its inaction proves that it does not realize the extent of the crisis and that it is abandoning the workers and businesses in the forestry industry.
At present, several thousand jobs have been lost or are threatened, primarily because of this government’s inertia, even though the Bloc Québécois has proposed genuine solutions to help this industry.
First, the government has to bring back the fund to diversity forest economies. When the Minister of the Economic Development Agency of Canada for the Regions of Quebec cut diversification funding for the regions hit by the forestry crisis by $50 million dollars, he caused a major setback for the industry.
One of the things that program did was provide assistance to communities affected by the crisis. It was a mistake to slash that kind of program and that kind of assistance. A program of that nature has to be restored, but with more financial resources.
Second, the Bloc Québécois has proposed that a loan and loan guarantee program be created to help to finance investments in production equipment. This would provide support for businesses that wish to update their production equipment or simply enable their businesses to expand.
Third, the Bloc has suggested that taxes be reduced for businesses in the manufacturing and forestry sector to help them expand, or that tax credits be given to encourage hiring. The Conservative government is playing down the impact of the forestry crisis that is hitting the regions of Quebec broadside when it should be providing them with immediate assistance.
And fourth, the Bloc has for several years been calling for an income support program for older workers. These workers are in a state of despair because there has been no assistance for them. Entire communities are being affected by these lost earnings.
The government of Quebec has made efforts to help older workers, but those efforts will be inadequate as long as Ottawa does not do its part. In a sovereign Quebec, we would have our own money, all of our own taxes, and Quebec would be able to provide its people and its workers with a POWA.
Workers over 55 have difficulty finding another job. They cannot benefit from adequate assistance. Yet, this program would only cost $75 million a year for all of Canada.
These few measures are aimed at helping the forest industry to make the transition toward secondary and tertiary processing. This transition will lead to high value added manufacturing and ensure that each tree will provide the most jobs.
We need to realize that almost 21,000 jobs have been lost in the forestry sector in Quebec since April 1st, 2005, almost 4,000 in my region alone, Saguenay—Lac-Saint-Jean. We know that, in Quebec, forestry is the main employer in 260 towns and villages and that, in 134 of them, forestry provides 100% of all jobs. Thus, it is important to ensure the viability of this industry.
It is undeniable that the forestry crisis is causing major job losses. It also has impacts on youth. A study conducted by the Saguenay—Lac-Saint-Jean youth centre suggests that the uncertainty in the forest industry has repercussions on youth from the Saguenay—Lac-Saint-Jean region. This is another serious aspect of this crisis.
In conclusion, I will point out that the measures proposed by the Bloc are solutions that will have immediate effects for employers, employees, youth and communities. During the next few years, competition from new players in the field of mass production will increase. Effective measures must be taken quickly by the Conservative government to avoid the collapse—