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Is it a Deal? Emerson Huddling with Lumber Bosses
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Opinion 250 News
Wednesday, August 09, 2006 09:58 AM
As industry and government officials meet, the President of Brink Forest Products John Brink says in all likelihood there will be acceeptance of the agreement on soft wood lumber today.
The heads of the major companies are talking with Federal trade Minister David Emerson this hour. "This is down to bricks and mortar" says Brink.
Brink says there is more at stake than the lumber deal "Emerson can’t afford to lose the deal in a ways and means vote (confidence motion) in the house, and the Opposition would have to support the deal if industry is on side with what is contained in it , so I think today’s meeting is more of a formality and the announcement following the meetings will be that they (industry) are on side."
There is speculation the Federal Government may be offering up some sort of special tax treatment to sweeten the deal "The money coming back to the producers is taxable at a high rate and that may be used as a means of getting them on side, but believe me" said John Brink, "they did not all go to Toronto unless they had a deal beforehand."
The cash is very important right now says Brink "Industry is in tough shape right now and they need the money to get them through these tough times. We may see mills reducing one shift; we will likely see other moves to cut costs because the lumber market is at rock bottom right now. "
Brink is optimistic "Emerson would not have a meeting unless he thought he had support, that’s the issue."
Wednesday, August 09, 2006 01:40 PM
Trade Minister David Emerson has given lumber industry brass until the 21st of August to let him know their intentions on the softwood lumber agreement.
The deadline was set druing this morning's four hour huddle with the top executives of the major lumber players. Emerson had indicated last month that without the support of industry, the legislation needed to pass the softwood lumber agreement may not be presented to Parliament, even though Prime Minister Harper had promised otherwise.
Without the support of industry, it is inlikely the legislation would be supported by the Opposition, and the vote would be considered a confidence motion, could topple the Harper government.
Earlier today the President of Brink Forest Products told Opinion250 that he is confident that in the end the industry will support the agreement.
Just a couple of weeks ago, Provincial Minister of Forest and Range, Rich Coleman told Opinion 250 the outstanding issues can be dealt with internally.
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