Speaking in the heart of Ontario's forestry industry on Wednesday, New Democrat Leader Jack Layton pledged to reverse the Conservatives' softwood lumber deal with the United States.

Layton said the agreement -- hammered out in 2007 under the carriage of former International Trade Minister David Emerson -- was a betrayal of Canadian lumber producers.

The "softwood lumber sell-out to the U.S. gave up on years of trade rulings in Canada's favour," Layton said in Kenora, Ont., putting the blame squarely on Conservative Leader Stephen Harper.

After the deal was arranged, Layton said, "Harper then broke his promise to provide loan guarantees for struggling producers, and to find ways to help support forestry communities."

He added: "Instead, he gave a $50-billion tax gift to profitable banks and oil companies that don't need the help."

Softwood proposal details

In addition to cancelling the hard-fought softwood deal, Layton said he would work to open U.S. markets based on fair trade in lumber.

He would also:

  • restrict the exportation of raw logs and focus on value-added processing in Canada
  • encourage and speed up sustainable forestry practices
  • overhaul plans for dealing with the pine beetle and other invasive insects
  • set up a fully independent regional development agency for northern Ontario
  • create new business and job opportunities through development and innovation

Since the election campaign began, Layton has virtually bypassed the Liberals and taken aim directly at Harper and the Conservatives, saying he is gunning for the prime minister's job.

Increasingly, Harper has been responding in kind. He took a swipe at Layton Tuesday night telling B.C. voters the New Democrat leader is a poor choice.

He said Layton's refusal on Canada AM earlier this week to rule out a coalition with the Liberals demonstrates that there is little difference between the two parties.

"B.C. does not need the 'me-too' Liberalism of the NDP," Harper said, speaking in Surrey.

He suggested that a minority government -- even one that could be surpassed by a coalition -- would have a mandate from voters to govern and opposition parties would have to give the winner a chance to do so.

Arts at risk?

Both the New Democrats and the Liberals have attempted to portray Harper as an anti-arts and culture killer over his funding cuts to the sector.

Harper maintains his party has actually increased arts and culture funding, but the difference is the money has gone to Heritage Canada rather than directly to arts programs.

He also said Tuesday that Canadians don't want to pay for posh "gala" arts events -- though he declined to repeat his comments in French.