NORTHWESTERN ONTARIO — Regional representatives from all levels of government are applauding a recently-announced federal stimulus package for the softwood lumber industry and agree that collaboration is key to the sector's survival and growth.
Ottawa announced on Tuesday a series of measures potentially totalling about $1.2 billion as part of a “comprehensive industrial strategy” for the sector, which finds itself the target of increasingly higher tariffs from the United States.
The package includes up to $700 million in loan guarantees for financing and credit support for companies, $500 million to make the industry more competitive and diverse — including increasing domestic processing capacity — and $50 million for skills training and income supports for affected workers.
“Forestry is in a very important sector of the economy,” Patty Hajdu, the MP for Thunder Bay-Superior North told Dougall Media on Wednesday. “It's been under attack for a number of years through a variety of different tariff measures, but this most recent action has really further jeopardized the industry.”
The U.S. announced an increase on anti-dumping duties on Canadian softwood lumber of up to 20.56 per cent in late July, the latest in a series of tariffs targeting that industry in particular.
“Oftentimes (companies) have been borrowing or using other forms of financing to manage the extraordinary cost of tariffs, and this will give them some of that breathing room while they reorient themselves to this ever-changing market,” Hajdu said of the funding package.
“The second thing it will do is it will provide money for competitiveness and for the ability to expand and increase that domestic production — for example, sawmills that could orient themselves towards the Canadian market.”
Ontario’s associate minister of forestry and forestry products, Thunder Bay-Atikokan MPP Kevin Holland, said he’s encouraged by what he’s seen of the federal announcement so far.
“Because it's a fairly new announcement, my team is currently working through the details to find out (and) to get down to the nuts and bolts of it,” he said.
“We want to ensure that Ontario’s forestry industry is going to be a beneficiary of the announcement made by the federal government.”
The announcement has already drawn praise from the Northwestern Ontario Municipal Association, with president Rick Dumas saying it recognizes "the vital role of forestry in Northwestern Ontario and across Canada.”
In an interview with TBT News, Dumas said NOMA has been working with the Ontario Forest Industries Association and NOMA’s sister organization which advocates for municipalities in northeastern Ontario, as well as both levels of senior government. He said it’s good to see Ottawa and Queen’s Park sending similar messages about the importance of forestry to the region.
“That's the key message: dialogue, we're all working together,” he said.
“I think government's always out there to work with the people, but I think now they're getting a clear message (about) what industries really need help and how do (they) help them to the best of their abilities.”
Holland said Ontario is doing its part with recent money for biomass projects and funding through the Forest Sector Investment and Innovation Program, with plans for additional supports coming, although he said he couldn’t get into details about those on Wednesday.
“We will be working closely with the federal government on making sure that we are best positioned to support the industries moving forward as we deal with the uncertainties that are coming out as a result of what's happening in the United States,” he said.
Hajdu said it’s “really an important time for all of Canada to pull together.”
“I think the commitment that the Prime Minister and premiers have made at their table is that we will work together, and we will work together in the interests of Canada and in the interests of Canadians,” she said.
“We may not always agree on a number of different policy approaches, but one thing I think we do agree on, and that is that we have a responsibility to Canadians to help Canadians and Canadian companies get through these difficult times.”
-With files from Justin Hardy.
