5 days ago
Mark Carney's announcement of $1.2 billion for forestry sector gets qualified support in B.C.
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Ottawa's announcement Tuesday of a $1.2 billion bailout for the forestry sector drew cautious applause from members of the industry in B.C., who said there is more to do to get producers back on their feet as the U.S. increases import duties on softwood lumber.
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Brian Menzies, executive director of the Independent Wood Processors Association of B.C., says he welcomes the financial support from Ottawa but stressed that reaching a new trade deal with the United States, including an agreement to lower or remove the 27.3 per cent duties placed on Canadian softwood lumber imports, is critical to the industry's survival.
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'The problem right now is that over eight years now of posting bonds, these companies are stretched. It's hard for them to find any more collateral to basically back their guarantee to the United States,' said Menzies.
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'In a lot of cases, these people have made guarantees on their personal homes, not just their businesses, on their personal homes, to be able to do this.'
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The recent increases have been made retroactive to 2023, which Menzies says further risks causing many smaller companies in the wood products sector to collapse.
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Prime Minister Mark Carney made Tuesday's announcement in West Kelowna and said $700 million of the $1.2 billion will go toward loan guarantees to help companies restructure operations while the remaining $500 million will be used to help them develop new products and diversify their markets.
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He added that a further $500 million will be spent on programs to help retrain workers who end up losing their jobs as a result of the challenges facing the softwood industry.
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'At this hinge moment in history, Canada is starting to shift from reliance to resilience,' Carney said, acknowledging that 90 per cent of Canadian timber exports currently go to the United States. 'Together we are going to write our own story, rather than let others dictate theirs to us.'
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To help reduce that reliance on the United States, Carney said Ottawa will prioritize the use of Canadian lumber as part of his signature Build Canada Homes Plan, which seeks to build 500,000 homes annually over the next 10 years.
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Kim Haakstad, CEO of the B.C. Council of Forest Industries, said she is glad to see the federal government step up to help alleviate some of the challenges caused by American duties but also wants to see the province do its part to ensure the B.C. forestry sector remains competitive within Canada.
