https://www.saultstar.com/news/local-news/candidates-talk-canadas-future-in-steel-industry

Candidates talk Canada's future in steel industry

Elaine Della-Mattia
More from Elaine Della-Mattia

Published on: September 13, 2019 | Last Updated: September 13, 2019 2:00 PM EDT

Coils of steel are stacked inside Essar Steel in Sault Ste. Marie, Ont. on Friday, July 24. (KATIE HUCKSON/ SPECIAL TO THE SAULT STAR/ POSTMEDIA NETWORK)

Despite its ups and downs, the steel industry is important to Sault Ste. Marie. The majority of the past four years have been rocky for the city’s steelmaker as it underwent CCAA proceedings and faced a near crisis with U.S. imposed tariffs.

While Algoma Steel emerged a stronger company from the CCAA proceedings, and the U.S. imposed tariffs have since been eliminated, Canada’s steel industry is looking at government to help keep the industry strong and robust.

The federal government has a role to play and candidates running in Sault Ste. Marie in the upcoming October election all believe that to be true.

Liberal incumbent Terry Sheehan, Conservative challenger Sonny Spina, Green Party candidate Geo Mclean and Peoples’ Party of Canada’s Amy Zuccato all believe the federal government has a role to play in keeping Canada’s steel industry strong. NDP candidate Sara McCleary did not participate in an interview for this story.

Sheehan said that over the past four years, the Liberal government has worked hard to ensure the steel industry has a strong future and vows to continue to give that file priority if reelected.

The Liberal government, Sheehan said, throughout its first term, has implemented more measures each year to strengthen the trade regime, improve legislation and increase resources to protect steel.

“The steel industry has been challenged even before I ran. That’s a reason why I ran,” he said. “I stepped forward to act on the issues, like the steel dumping from China.”

Sheehan said he met with industry and union, introduced the issue to the Northern Ontario Liberal Caucus, which adapted the issue as its top priority, and took the issue to the national level and Prime Minister Justin Trudeau.

“We began, right away, working in earnest with both industry and the union and we haven’t taken our foot off the gas pedal,” he said.

It imposed counter tariff measures on the United States against its tariffs on steel and aluminum and refused to negotiate a new NAFTA until those tariffs were removed.

As chair of the all-party steel caucus, Sheehan said he’s united elected officials to work together to close the gaps that existed and protect the steel industry and will continue to do so if reelected.

“We have continued to reassure and signal to Canada that Canada is in the steel game and is a priority. We signaled not only to Canada, but to the world,” he said.

Sheehan realizes that the steel industry is not out of the woods yet and he vows to continue working to assist it.

Locally, $106 million of government funding has been provided to the local industry to modernize its plants and develop new product lines, thus strengthening the industry.

“In Ottawa we were putting more tools in our tool box and we saw the Conservatives playing games and jeopardizing jobs and putting people at risk,” he said. “I debated them in the house but they decided to put politics before people and I was disappointed with them but we were able to get it done even with the shenanigans they were trying to pull.”

Spina said he recognizes that everybody worked diligently to remove the U.S. tariffs for the Canadian steel industry, but that work included members from all political parties.

“It’s important that we continue to protect industry, especially here in Sault Ste. Marie,” he said. “In order to do that, we need to create an environment across Canada where we can have a customer base or client base for those steel products.”

Just as important, Spina said, is ensuring that dumped steel or other products are prevented from entering Canada.

“Those safeguards need to be maintained,” he said.

Spina argued the Liberals have not been diligent in doing just that. He points to recent news that the Liberal government made the decision to withdraw tariffs and duties from illegally dumped Chinese and Korean steel products for the construction of liquid natural gas projects in British Columbia. The project is valued at $42 billion.

“We need to continue to be diligent and not allow this to happen,” he said.

Spina said the Conservatives also want to see more holes plugged to prevent the U.S. government from ever allowing the tariffs to resurface.

“Right now the U.S. can reimpose those tariffs if the steel imports go up,” he said. “We need strong leadership to deal with that at a national level and across the world.”

Spina said it’s incredibly important to listen to industry leaders and recognize that the challenges will continue to change and evolve in the future.

“I think it’s important for us to ensure that we are making an attractive business environment for those industries.  We recognize that the carbon tax will hurt businesses like heavy industry in Canada,” he said.

The Conservatives believes the carbon tax puts undo pressure and additional financial burden on businesses and heavy industry, which in turn could make them less competitive in a global market.

Mclean said while many believe the Green Party of Canada is against development and industry, that’s not true.

“We realize that metals are necessary and particularly for a decarbonized economy. We need metals and steel is a priority for everything that we do,” he said.

Mclean said it’s important for elected officials to listen to industry specialists and learn about challenges, solutions and best practices for industries so that it can formulate appropriate policies.

Zuccato said the Peoples’ Party of Canada firmly believes in obeying the laws and legislation that have already been created.
She chided the current Liberal government for allowing steel to bypass the tariffs and allowing steel to enter Canada from China and Korea for the liquid natural gas project in B.C.

“The Liberal government didn’t abide by their own laws. We will make sure that the rules that exist will be followed to protect our industry and our economy,” she said.

More needs to be done to strengthen the steel industry and ensure that dumping from other markets, like China, doesn’t play havoc with the Canadian industry.

Spina argues the Liberal government has under minded its own trade remedy system with the B.C. liquid natural gas project.

“When we have remedies in place, it’s important for us to stick to them,” he said. “We recognize that these are the issues that affect so many people.”

In addition to those that work directly in the steel industry, Spina said the issues also affect the secondary industries and spinoff jobs.

“We can’t undermine our own trade remedy system,” he said. “We will continue to do that if we form government and continue the conversation and consultation with the industry leaders in Canada and across the world with those who are dumping steel into North America.”

Sheehan said the Liberals believe that more Canadian steel should be used in federal government contracts, like with the Royal Canadian Navy ship building contract recently secured by Algoma Steel.

“I will continue to lobby and make sure Canadian steel is used in projects. We have a number of initiatives moving forward and the critical thing is to continue to consult with the industry, the union and local chamber of commerce to continue to push the ‘Team Canada’ approach,” he said.

Zuccato believes it’s the role of the federal government to ensure that products entering the country meet Canadian standards. Steel from China only has the life expectancy that is half that of Canadian steel, she argues.

“We need to minimize the steel dumping in Canada. Across every province we have a strong steel industry and steel plants in every sector of Canada,” she said.

Zuccato wants Canadian companies to supply the federal government with needed steel. In turn, that would ensure a strong sector and lots of jobs, she said.

“Why are we weakening our industry instead of strengthening it,” she said.

Mclean said the Green Party believes that government can best protect the steel industry by ensuring value is added to the product before it is exported.

“We need to do that in as many ways as possible to add the value to the steel,” he said. “Exporting raw steel then importing it back as a finished product doesn’t help our economy. We need to add the value before its exported and that keeps us competitive.”

In order to do that, government needs to assist by ensuring proper legislation is in place by consulting with industry leaders.

Steel isn’t the only industry important industry in Sault Ste. Marie. Noront Resources decision to establish a ferrochrome processing plant in the city, on property owned by Algoma Steel, will also create important well-paying jobs.

Sheehan said he supports the ferrochrome processing plant and will use his skills in economic development and jobs to move the process forward.

“I think we have an obligation to make sure it’s done correctly and satisfies all of the requirements that need to be met,” he said. “I have the energy and experience to get this done and I will continue to be there throughout the process.”

Sheehan said he has got the community $250 million in investment over the past four years, an amount he calls record breaking and historic.

“I have shown I can get the help for industry of all kinds . . .We need to stay on top of this and do the project correctly, including having the consultations with the community and First Nations to create those jobs,” he said.

Spina views the proposed ferrochrome processing facility as a great opportunity to diversify the city’s economy and believes it will fit into the city’s industry mix because of its similar heavy industrial sector.

Spina said he’s had the opportunity to hear Noront Resources plan for a plant and believes it includes a number of environmental protections.

“Conservatives have a real plan to protect the environment that doesn’t rely on a carbon tax. That’s important for this industry,” he said, adding that safeguards must be in place to protect Canadians and maintain their expectations.

Zuccato’s views are somewhat opposite. She said she is scared that a ferrochrome facility will be established in Sault Ste. Marie.

“The steel plant already gives off enough pollution and you can see it in the areas around the steel plant. A ferrochrome plant is much more dangerous with its chemicals,” she said.

While Zuccato said she understands the importance of jobs and reusing brownfield land, she’s adamant that a strong environmental policy should be in place to protect residents and the areas.

“You can’t stop industry from happening but you can make sure that it is being done safely,” she said.

Mclean said he’s skeptical about the development of a ferrochrome facility.  However, the Green Party wants ‘free and prior and informed consent’ to mean just that in any of the review processes.

“I’m not personally confident in corporations and government respecting the definition of consent.”

“In the process of having a ferrochrome smelter and the public consultation that comes with that, I want to ensure that it really is consensual ,not just a box to tick off as part of the environmental assessment process,” he said.

Mclean believes the entire environmental process needs to be reviewed.

Sheehan said he supports the Ring of Fire and the Northern Ontario Liberal Caucus has indicated its support for resource development.

He said his government has demonstrated its commitment to the mining industry with earlier announcements regarding the Mageno gold mine and its completion of the environmental assessment process, through its support to the Prospectors and Developers Association of Canada annual conference and through demonstrated commitment throughout the mining industry.

The Liberals will continue to work with Noront if reelected, he vows.

“We have developed a trust with them and other parties have not,” Sheehan said.

The Liberals have already developed connectivity with the area through the development of broadband, infrastructure that helps develop the communities and creates the commerce infrastructure to develop the Ring of Fire site.

“I would be able to continue to deliver results because we are already at the table,” Sheehan said.

Spina said he supports the Ring of Fire development and sees the potential of its development and continue the conversations, including those with First Nation partners, which have begun.

But he fell short on committing funding for the project.

“I think we’ll have to wait for our full platform to be released but we have committed to fulfilling every single funding announcement that is in place right now. There will be no cuts for any funding that has been put in place,” Spina said.

Mclean said the Ring of Fire is an important development for Ontario and Canada.

“One of the main points for us is the development of a national passenger rail system and to invest in rail transportation in general. That infrastructure would definitely help that development,” he said.

His party also wants to create a national energy grid and charging stations for electrical cars, both of which would help the mining process and decarbonize the system.

“All those things would help with the development of the Ring of Fire,” he said.

Zuccato said she supports the Ring of Fire development and the PPC will do what it takes to move the development forward.

However, she said, the PPC also respects the jurisdiction of the province and the Ring of Fire is in the Ontario government’s jurisdiction “but we’ll support it wherever we can.”