Tax free humanitarian aid - how wonderful!

Hurricane Katrina has absolutely devastated some US states, creating a situation that will likely require tens of thousands, if not more, homes to be rebuilt from scratch, due to the water sitting in, on and under the foundation of many homes and businesses in the area.

Because of this, so-called 'savvy' investors have been investing in stocks for companies such as Home Depot, driving the stock price up in the days leading up to, and following, the hurricane's landfall. But private investors aren't the only ones set to profit from the increase in demand for lumber.

The on-going lumber tariff dispute between Canada and the United States will mean the US government agencies responsible for the tariffs will see a dramatic increase in profit over the next while, due mainly to the rebuilding effort after the hurricane. Many of the states hit by the hurricane are softwood producing areas, which means that the demand for Canadian lumber during the rebuilding process will increase. And so will the amount of money we have to pay in tariffs.

"This tragedy, coupled with ongoing lumber tariffs, will only further harm lumber consumers - especially those needing affordable housing in the U.S.," Susan Petniunas of American Consumers for Affordable Homes told The Canadian Press.

Here's what Scott Shotwell, a spokesman for the protectionist Coalition for Fair Lumber Imports, (a proponent for keeping the tariffs in place) said in an interview from Washington.

"If Canada wants to do the humanitarian aid and donate their lumber, there would be no duty on free lumber."

So it seems that, in fact, the US doesn't want to profit from this disaster. At least not on the goods we are willing to donate as aid. How very generous of you, Scott.

It's time to stop thinking about the size of your wallet, and the bottom line, and start thinking about how you're going to rebuild homes for tens of thousands of people. But maybe that's not your top priority right now...

Read the entire CBC article here.

/pk