SoVote

Apr/8/24 8:11:00 p.m.
Watch

Mr. Chair, I agree with some points that my hon. colleague from British Columbia has made. We need to increase mass timber projects. We have been doing that by changing the building code to accept that, with the building of even 18-storey buildings now using mass timber. This is a renewable and carbon-sequestering methodology of building more homes. However, we also do not want to revert back to what the Conservatives did and tax $1 billion on these sawmill owners and then give half to rich lobbyists who act on their behalf. However, we need a willing partner on the other side. What we have been seeing is a very litigious partner. As lawyers can appreciate, it is no different from people who commence lawsuits frivolously time and time again. When the outcome is always the same, it is a very frustrating program. I agree that perhaps a new approach, a new agreement, with the Americans needs to be reached where this does not happen over and over again. When NAFTA was created, it was thought that the chapter 11 method would be safe and secure. We were able to retain it in this round, which the Americans did not want to have. However, we need to implement better teeth, so it is a quick, prompt decision that is executed right away.

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Context: House Hansard - 295 - Apr/8/24

Ms. Sylvie Bérubé (Abitibi—Baie-James—Nunavik—Eeyou, BQ)

Apr/8/24 8:23:14 p.m.
Watch

Mr. Chair, I am pleased to have the chance to rise in the House tonight, because I feel it is important to take part in this debate, which is more important than the solar eclipse. I say that because the forestry industry, sawmills and softwood lumber are important to the economy of Abitibi—Baie-James—Nunavik—Eeyou. On February 1, the U.S. Department of Commerce announced plans to substantially increase the countervailing and anti-dumping duties it levies on Canadian softwood lumber. These duties could nearly double starting in August, with major negative consequences for us and elsewhere in Quebec and Canada. As we know, the forestry industry has already been impacted by the forest fires that raged last summer. Some 4.5 million hectares of forest burned. As a result, local sawmills have had to slow down production or simply stop altogether. For example, at the end of March, Resolute Forest Products announced that it was suspending operations indefinitely at its sawmill in Comtois, near Lebel‑sur‑Quévillon. Members will recall that this town was hit hard by the forest fires, and all residents had to be evacuated because the town was in danger. The company blamed the weak lumber market and the rising cost of raw materials in the wake of last summer's wildfires. About 50 workers at the Comtois sawmill alone have been affected. Imagine how many more workers could be affected if the U.S. raises its countervailing and anti-dumping duties on softwood lumber. These are difficult times all round, and the government has an obligation to take action and find a solution to prevent these increases. All these good jobs have to be saved. As everyone knows, the cost of food and housing has gone up and is still going up. Now more than ever, families need to hold on to their sources of income. The traditional approach, where the government issues a press release expressing its disappointment or challenges U.S. decisions in court, is not working. The government must do more and support our forestry sector more than ever. The Bloc Québécois urges Ottawa to staunchly defend Quebec's forestry industry in the face of increased U.S. tariffs on softwood lumber. It demands that the government step up and immediately implement concrete measures to protect the forestry industry from U.S. trade tactics. Time is running out, and it is appalling that the federal government has still done nothing to support Quebec forestry companies facing a sharp increase in tariffs on Canadian softwood lumber imposed by the United States. As a key trading partner of the U.S., the federal government has a responsibility to secure acceptable trade terms for the representatives of the Canadian forestry industry, a sector that is strongly represented in Quebec. Forestry is the economic backbone of many regions in Quebec, including my own. It accounts for thousands of jobs and a large portion of our exports. As I mentioned earlier, the forestry industry was hit hard by last summer's wildfires, and the same thing could happen again this year. Our forestry industries are facing a number of financial challenges, including trouble getting access to liquidity. The situation is fragile and could easily fall apart if our industry does not receive the necessary support. The federal government must act responsibly and intervene quickly on softwood lumber. The Bloc Québécois is proposing meaningful steps that this government must take. First, the federal government must truly help the forestry industry get through the crisis with a loan and loan guarantee program, to match the amounts being withheld by the United States in taxes. Second, it must work to amend CUSMA, the Canada-United States-Mexico Agreement, to better frame the litigation process and to no longer allow for unfair delay tactics. Third, it must call for a tax exemption for wood from private forests since the American lobbying allegations have to do only with the public forest. Fourth, it must recognize Quebec's forestry system, which operates via auction and is consistent with the requirements of free trade. The conditions are right for the government to make the case to the U.S. government that it needs to end its unwarranted tariffs, which are harmful for both our economy and its own. Also, it is important for the government to make the U.S. understand that in trying to protect their forestry sector, the Americans might end up hurting their own economy by causing the price of building materials to increase in the U.S., preventing thousands of American families from becoming homeowners. Let us protect our regions, our economy and our forests for a better future.

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Context: House Hansard - 295 - Apr/8/24

Ms. Sylvie Bérubé

Apr/8/24 8:31:26 p.m.
Watch

Mr. Chair, I thank my colleague for his question. For once, I agree with the Conservatives. The fact is, the government is not acting on this issue. This cannot wait, yet that is exactly what is happening right now. The Comtois sawmill is closing and about 50 families will have to move. Lebel‑sur‑Quévillon is not that big. For these people, it is a matter of time. The government has to act quickly. Thousands of workers are at risk of losing their jobs. What is the government doing to help Quebeckers?

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Context: House Hansard - 295 - Apr/8/24

Mr. Mel Arnold (North Okanagan—Shuswap, CPC)

Apr/8/24 8:34:25 p.m.
Watch

Mr. Chair, I will be splitting my time with the member for Mégantic—L'Érable. I am honoured to rise tonight to speak in this take-note debate on softwood lumber as an elected representative of the hard-working forestry and related service-industry companies and their families in the North Okanagan—Shuswap. In small towns with sawmills, like Lumby, Salmon Arm, Sicamous, Revelstoke, Enderby, Chase, Armstrong and others, the Canadian softwood lumber dispute is an important issue. It is important because of the jobs that so many families rely on to put food on the family dinner table, the jobs that pay for their children’s clothes and schooling. I want to take us back to March 2016. In a CBC News article dated March 12, 2016, Canada's international trade minister was noted as saying that the current Prime Minister's official visit to Washington helped secure a “real breakthrough” in the contentious softwood lumber negotiations. The trade minister at the time, now the federal finance minister, was quoted as saying, “I don't want people to think this is going to be done and dusted, and we don't have to worry about softwood negotiating for another 10 years. But what we have committed to is to make significant, meaningful progress towards a deal—to have the structure, the key elements there a 100 days from now.” We are now in April 2024, eight years or 97 months or 2,929 days later, more than 29 times longer than the message that the trade minister, now finance minister, was so cheery about in March 2016. Tick-tock, tick-tock. After eight years of the failing government's failed softwood lumber negotiations, sawmill owners, their employees and their families are still paying the price of the government’s ineptitude. Sawmill companies have not invested capital in modernizing their mills to remain competitive because duty dollars are being collected and held by the U.S. Workers are still working with equipment that has not been updated, if they have not lost their jobs already. It is not just the sawmills' direct employees. It is the spinoff jobs, which are even greater in number. The loggers, the road builders, the mill equipment manufacturers and the service providers, from tire shops to lunch trucks and work clothing stores, could be doing greater business and making further contributions to our communities if only the government had done its job and gotten a deal done long before now. The companies, employees and their families in places like the small towns I mentioned and other small communities across the country have waited patiently, getting their jobs done while waiting for the government to get its job done, but their patience has run thin and the government has failed to get the job done. These hard-working people need some certainty in their future, more than just promises. They need a government that is recognized as a valued partner in trade agreements, rather than one that can be taken advantage of. They need a government that understands the common-sense approach that is needed at negotiating tables. If the government strongly believes that the U.S. anti-dumping and countervailing duties on Canadian softwood lumber products are unfair and unwarranted, then why has it not resolved this issue before now, or is it because it simply does not care? The anti-dumping and countervailing duties charged, collected and held by the U.S. are now over $8 billion or, according to some, over $10 billion. One would think that the money-hungry NDP-Liberal government would be clamouring and bending over backwards to get those dollars into Canadian hands so it could find some way of taxing them. I am tempted to say that it baffles me and countless other Canadians as to why the government has failed so badly at getting a deal done, but it is not surprising after the many failed promises of the big-on-promises, small-on-delivery government. It is simply not worth the cost. It is time the government recognized its commitment to serving the people of Canada, instead of making the people of Canada serve the government.

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Context: House Hansard - 295 - Apr/8/24

Mr. Rob Morrison (Kootenay—Columbia, CPC)

Apr/8/24 9:16:42 p.m.
Watch

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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Context: House Hansard - 295 - Apr/8/24

Mr. Rob Morrison

Apr/8/24 9:24:58 p.m.
Watch

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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