Bernier Retreats On Controversial Softwood Stand

Mr. Bernier was also lukewarm about offering loan guarantees for the softwood industry even though Prime Minister Stephen Harper and International Trade Minister David Emerson touted the idea Monday. While speaking to CJMF, the Industry Minister suggested such aid was a costly last resort. He said he's wary of loan guarantees because he believes they would put taxpayers on the hook for money when it's unclear whether Canadian lumber companies will ever recover the billions of duties owed to them. "All of our legal advice tells us that if we offer loan guarantees and put forward government money, the probability of us recovering that money and getting back the $5.3-billion -- you know the United States is a sovereign country and it can do what it wants -- so the probability is close to nil," Mr. Bernier told CJMF, speaking in French. [...] Mr. Emerson this week said Ottawa is preparing to offer loan guarantees to struggling Canadian softwood producers if the United States keeps dragging out the five-year, cross-border timber dispute with legal wrangling. The Tories have not unveiled details of their loan guarantee program, but their campaign platform envisaged helping the industry through Export Development Canada. Mr. Bernier's comments may have caused irreparable damage to Canada's case, Liberal Leader Bill Graham said. He fears that Washington lawyers will now be able to use the comments to weaken Canada's softwood lumber industry's position before the trade tribunals. "If you were acting for the lumber producers of the United States who have fought us tooth and nail through something like 15 cases over 10 years that's cost over $60-million in lawyers fees, wouldn't you think that they would say: 'Look the minister responsible has said this. It proves our case,' " Mr. Graham said yesterday. http://www.theglobeandmail.com/servlet/story/LAC.20060414.RBERNIER14/TPStory/Business [Proofreader's note: this article was edited for spelling and typos on April 23, 2006]

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