Softwood Lumber Update
Canada has pulled out of softwood lumber negotiations with the U.S. in protest of American refusal to comply with the NAFTA ruling. Finance Minister Ralph Goodale stating that Washington must realise that Ottawa is taking this "very, very seriously". NDP leader Jack Layton, shamelessly stealing ideas from Boney B. himself, has gone on record as stating that Ottawa needs to play "hardball" by taxing oil and gas exports across the border. God I love when I'm right. It is interesting how the whole softwood lumber dispute really blows to shreds the American, and Canadian right's view that Government participation in commerce/industry is a terrible thing. In the U.S., softwood lumber is harvested off private property and the fees charged to harvest the lumber are done on open auction. In Canada softwood lumber is generally harvested off of crown land and a "stumpage fee" is charged. The Canadian way leads to lower prices for lumber harvesters, and this savings goes all the way up the production ladder to the consumer. Yup, lower prices for the consumer is a terrible thing. Mike Moffat has a nice, quick, non-partisan article about this dispute.
Now, I'm not saying that all areas of industry need government participation, just that public participation in industry is not necessarily a negative thing, just as it is not always positive.


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