Thank you, Mr. Chairman.
Our address will be in two parts; Mr. Simon will handle the second part.
The Quebec forest industry has a turnover of $13 billion a year and provides direct, indirect and induced employment for nearly 200,000 persons. More than 350 plants are part of the forest industry landscape. This provides work or a reason to exist for more than 250 municipalities, more than 100 of which depend entirely on the industry.
Despite this apparent strength, the forest industry is currently in danger. A number of businesses are shutting down, or, if they haven't already done so, are deciding which ones will. More than 20,000 direct and indirect jobs have been lost since 2005. The stock market capitalization of Quebec public companies has declined $7.5 billion in the past two years. We often blame our problems on the economy, and that's true, but the thing about the economy is that it applies to everyone. Why then, with 10% of processing capacity in the North American sawmilling industry, has Quebec alone borne 30% of the rationalization effort in terms of reduced consumption across North America?
In Quebec, the problem lies in the industry's very structure. We have structural problems specific to Quebec. For example, wood fibre is more expensive in Quebec than elsewhere in Canada. However, it should be added that that fibre is also the smallest. So we're also talking about the smallest and most costly fibre, which also generates the least interesting basket of products in Canada.
The problem regarding the cost of our fibre is acute. As a result of this situation, pulp and paper companies in Quebec buy their wood chips at the highest price in the world. This is the only place where there aren't various categories of fibre. In a given region, the price of fibre is the same, regardless of whether it's lumber or timber. It's the only place in the world that operates this way.
Cost is another structural problem. The size of our plants is—