Mr. Speaker, I rise in the House today to speak in favour of the critical motion before us regarding the lack of action by the Liberal government to secure a softwood lumber agreement.
It is conventional wisdom that the constituency of Dauphin—Swan River—Neepawa is primarily an agricultural constituency. To a large extent that is true. However, in the northern part of my constituency I have significant forestry operations, such as spruce products. Louisiana-Pacific moved into the area some 25 years ago, creating 400 full-time jobs in an area where jobs were desperately required. Therefore, the forestry industry in my constituency is extremely important, and the issue across the country is too important for the Liberals to sit across the way, doing nothing, and putting the livelihood of so many Canadian families in my constituency and the rest of Canada in jeopardy.
The situation was possibly best summed up in a recent news article by Mr. Kevin Mason, managing director of ERA Forest Products Research, a Vancouver-based financial research company, who said, “It's going to be ugly. There’s going to be mill closures. It’s going to be messy.”
As many of us will remember, during the last dispute, over 15,000 jobs were lost in British Columbia alone, and the Canadian forest industry had to pay $4.5 billion in duties. With an economy facing sluggish growth to begin with and tax increases being posed by the Liberals, the lumber industry and the forestry industry in general need certainty and stability more than ever.
As has been said by previous speakers, this very important sector generates approximately 270,000 direct and indirect jobs in Canada, often based in rural and remote areas where good, high paying jobs are often very hard to find. A mill that employs 250 people in a small town can be the centrepiece of a local community's economy, and a closure can be devastating.
As members know, the previous softwood lumber agreement expired on October 12, 2016, and the Liberal government has failed to negotiate a new one. In fact, it waited a year, which is astonishing. This means that U.S. lumber producers can and likely will file legal action immediately. It also means that the Canadian export market could be looking at 30% tariff increases very soon. This is a heavy hit to the bottom line of our lumber export companies and will undoubtedly lead to the suspension of production, job layoffs, and even mills shutting down completely, all because the Liberal government is unable or unwilling to make the economy of rural communities a priority. I will come back to that later on in my speech.
An agreement needs to be put in place that will stabilize the forestry sector in every region of Canada. However, due to the Liberal government inaction, the official opposition has launched a task force to petition those affected for their recommendations. We must bring the Canadian industry together to develop a common position in these negotiations instead of pitting one region against another. This task force will consult with forestry stakeholders, especially those communities whose major employer is tied to the forestry industry.
Many Liberals may not understand how important a mill is to a rural or remote community, as well as the spillover effect it has across an entire region or a country. Recently, the Manitoba forestry industry was thrown into crisis when the Tolko mill at The Pas was threatened with closure, and it came very close. There are very encouraging signs from the Conservative government in Manitoba, led by Premier Brian Pallister, that there is possibly a deal on the horizon that will save that particular mill.
What people do not realize is that the forestry industry is not just about a plant in a town. Rather, the ripple effects of the forestry industry go right across an entire region. Tolko was a paper mill. The paper industry and the lumber industry are intertwined. One might think the pending closure of a paper mill would not affect a lumber mill. However, what happens in the forestry sector is that when a lumber mill mills a tree, it takes the lumber from inside the tree, and the slabs on the outside, which are the finest fibres of a tree, and chips them and sends them to a paper mill. Therefore, the closure of a lumber mill or a paper mill can affect each other very significantly. The potential loss of the Tolko mill has the potential to kill 1,500 forestry jobs, even though that particular mill supports 300 direct jobs.
I had the honour of working for the Pine Falls Paper Company back in the mid 1990s. It was a wonderful success story, but also a story of failure. What happened in the early 1990s is that newsprint prices went down dramatically and that particular mill at Pine Falls was an Abitibi-Price mill. Many members here, especially from Quebec, would know the Abitibi-Price company. It was a newsprint-producing mill.
The mill was threatened with closure in the early 1990s, so the workers got together with the Conservative government of the day under premier Gary Filmon and the workers themselves bought the mill. They took a pay cut and entered into profit-sharing agreements. Right about that time, I left the employ of the provincial government and joined the Pine Falls Paper Company as the environmental director. Therefore, I have had first-hand experience in the forestry industry and got to live in a forestry town.
There has been a lot of talk in speeches about dollars and cents, trade law, lawyers, and so on, but what is forgotten is the human side of the forestry industry. What I learned when I lived in Pine Falls is that the forestry industry has a very definite culture. Those towns are different, they are special, and they are valuable. Because a major employer is in a town—in this particular case there were 500 full-time jobs—there are ball teams and hockey teams, Rotary Clubs, the churches are full, and there is a thriving society based around that particular mill.
As the 1990s wore on, newsprint was being replaced with iPads, people were reading newspapers on computers, and the demand for newsprint went down. What happened, which was inevitable, is that the mill was sold to a company called Tembec. Tembec then decided to make the mill even more efficient and instituted a process that some members may be familiar with, thermomechanical pulping.
A thermomechanical pulping mill goes hand in hand with a lumber mill, and Tembec had a plan to downsize the workforce at the paper mill and increase the workforce at the lumber mill. As I said earlier, paper production and lumber production go hand in hand. In the late 1990s, it looked like the Pine Falls paper mill and the associated lumber mill were going to have a very bright future. Then the U.S. action against our softwood lumber exports hit, and hit very hard. The mill converted to thermomechanical pulping, but the lumber mill was not economically viable any more. Actually, it was not even built. The plans were shelved and that particular mill was ultimately closed down.
By that time, I had left the mill, but I go back to that community from time to time. It is a tragic sight. I see the empty space, the size of two football fields, where a thriving paper mill used to be. The town is still a beautiful place, but there is a certain melancholy about the place. It is desolate. There is not the activity there used to be. This is the human cost of the loss of a major rural industry.
I am not really that interested in playing politics with this, though I am a politician and as partisan as everyone else. I would urge the Liberal members opposite to think about the people and culture of these communities and how important they are to our country. We all think Canada was founded by the fur trade, which, to a large extent, it was, but the forestry industry was equally important in creating this great country of ours.
In conclusion, I would also note, as the previous speaker said, that our forests are managed well and in an environmentally sound way. I managed a wastewater treatment plant at a paper mill. We know what we are doing in the forestry industry in Canada. We need to get a softwood lumber agreement in place, certainly for the jobs, the dollars and cents, but, as important, for the people and cultures of Canada's forestry communities.