44th Parl. 1st Sess.
April 8, 2024 11:00AM
- Apr/8/24 7:29:37 p.m.
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Madam Chair, the forestry industry is significant, especially in Kootenay—Columbia. There are a lot of family-owned saw mills, some owned for five generations.
Another problem in British Columbia is access to fibre. I am wondering whether my colleague could give some examples or ways he could see for our mills to get the wood, regardless of the fires. There is wood there, but we cannot seem to get access. Could the member explain what kind of ideas he has?
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- Apr/8/24 8:19:05 p.m.
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Mr. Chair, in British Columbia, especially in rural British Columbia, we have a lot of small mills with fifth-generation owners. They understand forestry management. They understand the business, and they have managed to stay in business even during these tough times.
It has been eight years since the government had the opportunity to deal with the softwood lumber issue, and nothing has happened. I think the member is onto something when he talks about how there is nothing in the mandate letter about lumber. If there is nothing in there about lumber, where is the accountability to even move forward on this, other than talking about it in a take-note debate?
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- Apr/8/24 9:16:42 p.m.
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Mr. Chair, I will be splitting my time.
There is a critical issue that has been plaguing Canada's economic landscape for decades: The softwood lumber dispute with the United States. This long-standing conflict has added strain on the livelihoods of countless Canadians who depend on the forestry industry. Softwood lumber, a vital component of Canada's forest sector, especially in Kootenay—Columbia, has been subjected to punitive tariffs by the United States under the pretext of unfair subsidies provided by Canadian governments to their lumber producers. The lasting resolution remains elusive due to the inability of the Liberals to close, leaving Canadian lumber producers, both large and small, in a constant state of uncertainty and vulnerability. These duties have devastating impacts on the small lumber producers, and the effects are felt right down to the employee loading wood on a belt, and if one has ever worked in a sawmill, it would be known as the “green chain”.
The forestry sector is 10% of the workforce in Kootenay—Columbia. The only industry larger is steel coal. Despite promising to prioritize the softwood lumber dispute and to work toward a fair and equitable solution, the government's actions have fallen short of expectations. Time and time again we have witnessed a lack of strategic foresight and proactive engagement from the current government, leading to prolonged periods of uncertainty and frustration.
Softwood lumber was not mentioned in the 2019 budget and, in 2021, I specifically asked the minister to take a stance to protect Canadian workers and the forestry industry. Here we are three years later with no action. The lack of action directly relates to the capital investments in mills when no agreements are in place. Just the other day, I was in Salmo, talking with the owner of a cedar mill. He is ready to invest $10 million into modernization, but with no solid agreement in place and access to fibre, it is difficult. It is not only Porcupine, but also ATCO, Huscroft, Kalesnikoff, McDonalds and Galloway. Those are generational mills that contribute significantly to our communities and that know how to sustain the environment for future generations.
Instead of leveraging diplomatic channels and trade negotiations to secure a favourable outcome for Canadian lumber producers, the Liberal government is stuck in a cycle of inaction. Its failure to effectively address the underlying grievances of the United States, coupled with a lack of decisive action on the home front, has only made the situation worse, leaving our forestry industry at the mercy of arbitrary tariffs and of protectionist measures. The absence of any sort of plan to the softwood lumber issue has undermined Canada's credibility on the international stage and has shaken the confidence in our ability to safeguard the interests of our citizens. In the face of mounting economic pressures and global uncertainties, there is a need right now for strong and principled leadership, and that has never been more apparent.
Canadian manufacturers are currently facing the longest period without a negotiated settlement in the U.S. softwood lumber dispute, resulting in the accumulation of nearly $10 billion in countervailing duties and duty fees. This ongoing issue has significantly impacted the industry, creating challenges and skepticism in the process. After speaking with the Interior Lumber Manufacturers' Association, we found that value-added producers are facing another unique challenge when it comes to the softwood lumber dispute. They pay duties based on a higher sale price. As a result, it costs them more money to manufacture. When a raw material leaves Canada and goes to the U.S., we lose that. We used to have, in 2006, under a Conservative government, a $500 per thousand board feet maximum duty. That was it. Now, we do not have that, so these high-end products are more expensive.
What is the Liberal plan moving forward? It is imperative that the government takes immediate action to resolve the softwood lumber dispute by engaging with our American counterparts. The softwood lumber issue represents a glaring failure of leadership on the part of the Liberal government. It is time for the government to step up to the plate, to demonstrate true commitment to the interests of the hard-working folks in the forest industry and to finally put an end to this dispute.
How long will Canadians have to wait for the government to deliver on its promises?
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- Apr/8/24 9:22:32 p.m.
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Mr. Chair, right now, it is demonstrating that eight years has been a long time. It has been over eight years. For the last four years, I have been pushing for the minister to start looking at resolving it, with nothing. It is time now to show leadership.
When we were talking earlier about solutions, we need strong leadership so that we can actually start making some headway. Right now, we are not going anywhere. It is good to have this debate because I have so many sawmills in my area. I just named the smaller ones. I have big ones as well, which are suffering the same fate of losing staff. It is time to get somewhere. We have not moved forward in eight years. It is time to move forward.
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- Apr/8/24 9:23:46 p.m.
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Mr. Chair, I live in the Kootenays, and one of the border crossings is Kingsgate. I see raw logs heading south, because that is the border. I have some sawmills that do laminated processes. They are trying to use all the wood, and they cannot compete with the price in the U.S. because the raw logs are going. That is where we are losing jobs.
That is one half. The other half, of course, is the fibre that we cannot get. Raw logs heading south just takes jobs away from Canadians.
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- Apr/8/24 9:24:58 p.m.
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Mr. Chair, I totally agree. It is very challenging through the Rocky Mountains, through all our mountain passes, for rail. That is so much different from Europe, for example. We do need to be able to open the door to be more effective and efficient in our cross-border trade with the United States as well.
I have one sawmill that has its own train, which can go down into the U.S. right through Deer Trail. We do have one of those, but for the rest, we have one line. We only have CP in the southern part of the province, so to actually improve how we deliver the product will also keep the cost of our product down, which makes us the most competitive internationally.
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- Apr/8/24 9:26:09 p.m.
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Mr. Chair, absolutely. That should have been dealt with on the day we did CUSMA, and we did not do it. We are back to where we will have to do it now, and hopefully, we will get this done in the next short period. Otherwise, we will lose a lot more jobs in the upcoming years.
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- Apr/8/24 9:49:29 p.m.
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Madam Chair, I just have a quick question on forestry management, which, of course, in British Columbia is a significant question. I have been talking with the provincial party about forestry management, because it affects all of our forestry industry.
Would the member agree that perhaps a solution that has not been used, and should be, is all of the small, especially very small, generational sawmills, the four-, five- or six-generation sawmills? The people who work in those sawmills know forestry management better than anyone. They are there to make sure that their families can take over the business that has been going for years. They understand forestry management, yet they are not brought to the table.
Does the member think this is something that could be explored to help us with forestry management?
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- Apr/8/24 10:16:13 p.m.
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Madam Chair, I thank the member for his speech.
I recognize that you just got into town and that it has been a busy and hectic day for you.
It has been eight years, and I know for myself, personally, in the last four years, I have been asking for updates because it is so important for people in Kootenay—Columbia, for all the workers and for the forestry industry, which is one of my biggest industries.
Do you think that the time we have been waiting now is excessive, especially in the last eight years? Also, can you tell us how we would go to the people who are in this industry and say that it's just going to take a few more years?
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