MARATHON — The head of the Northwestern Ontario Municipal Association is calling the federal government's moves to support the softwood lumber industry "decisive."
NOMA president Rick Dumas responded Tuesday to Prime Minister Mark Carney's announcement of hundreds of millions of dollars in loan guarantees, investments and other measures, saying they recognize "the vital role of forestry in Northwestern Ontario and across Canada, helping our sector adapt to ongoing trade challenges, protect local jobs, and create opportunities for both Indigenous and non-Indigenous communities."
Carney's announcement earlier in the day in Kelowna, BC came less than two weeks after the U.S. Department of Commerce doubled duties on softwood lumber imports from Canada, with further increases expected later this month.
He said Ottawa will provide up to $700 million in loan guarantees to address the immediate pressures facing producers by ensuring they have financing to maintain and restructure operations during what a government statement described as "this period of transformation."
The prime minister also announced the government will allocate $500 million "to supercharge product and market diversification" to make the industry more competitive over the long term.
"As technology changes the way we build, and demand grows for softwood lumber, this will increase domestic processing and value-added production," the statement added.
The investment will include initiatives supporting Indigenous-led forestry business development and diversification.
In addition the government plans to prioritize Canadian materials in construction and to change federal procurement processes to require companies contracting with Ottawa to source Canadian lumber.
Fifty million dollars will also be set aside for upskilling, reskilling and income supports for more than 6,000 affected softwood lumber workers.
In 2024, two-thirds of Canada's softwood lumber production was exported, nearly 90 per cent of those exports went to customers in the U.S.
Dumas said the new federal measures are crucial to communities across the Northwest that rely on a strong, sustainable and innovative forestry industry for jobs, economic growth and municipal stability.
The NOMA statement added that the organization stands ready to work with the government to ensure the needs and perspectives of the region are reflected in program design and implementation.
NOMA represents 37 municipalities across Northwestern Ontario.
