More action still needed to address struggling Pulp and Paper industry
OTTAWA – New Democrat Forestry Critic John Rafferty (Thunder Bay – Rainy River) said today that the Conservative government’s $1 billion forestry assistance plan is coming too late to reverse the industry’s 55,000 job losses and will not offset the damage done to the Canadian pulp and paper industry at the hands of the US Black Liquor tax credit.
“New Democrats have been calling for assistance for years, but this money isn’t going to reverse the massive job losses or stop more from happening,” Rafferty said. “My issue is not with the environmental and modernization measures the Minister is putting forward, but the most pressing issue today is helping the 50,000 workers that have lost their jobs in the last few years and saving the 100,000 plus jobs that are at risk in our pulp and paper mills and forestry communities in the months ahead.”
The size of the assistance package also troubles Rafferty. “The forestry sector is approximately the same size of the auto-sector, so $1 billion doesn’t look like much next to the $6 billion that the government has invested in GM,” he said. “The government needs to offer loan guarantees to large bankrupt companies like AbitibiBowater, to protect the pensions of retired forestry workers, to help newsprint producers make a transition to more valuable products, and above all to remedy the problems caused by the unfair US Black Liquor subsidy. As it stands, this plan does none of the above.”
According to Alex Atamanenko, Member of Parliament for BC Southern Interior, John Rafferty`s comments clearly outlined the problems faced today by the struggling forest industry.
“In my opinion, the solution is not that complicated”, stated Atamanenko. “The Canadian Government has the moral responsibility to match the subsidies currently given out to the US Pulp and Paper Industry. Until such time as the US drops its unfair subsidy, we should be assisting our mills to stay alive on a level playing field”.
In Atamanenko’s words, “The $1Billion announcement is a good long-term measure, but does nothing to help mills in the short term. In order for them be viable, we need to offset the American subsidies and ensure that loan guarantees are in place. As the Manager of Zellstoff Celgar stated, a three or four month delay in assistance will be too late”.
According to the Forestry Products Association of Canada (FPAC), the forestry industry in Canada is an $84 billion a year industry that directly or indirectly employs 863,000 people in all provinces of the country. Since 2003, there have been more than 200 mill closures across Canada and 50,000 confirmed layoffs or job losses in the industry according the Communications Energy and Paperworkers Union.
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For further information:
Office of Alex Atamanenko: 613-996-8037
HOUSE OF COMMONS
CHAMBRE DES COMMUNES
CANADA
Question Period - House of Commons
June 17, 2007
Pulp and Paper Industry
Mr. Alex Atamanenko (British Columbia Southern Interior, NDP): Mr. Speaker, will the minister guarantee that no jobs will be lost at all as of today - that is the question. The U.S. black liquor subsidy has hammered our pulp and paper industry and it needs help today or 100,000 jobs are on the line. The failure to negotiate an end to the U.S. subsidy has brought our industry to the brink of extinction.
As the manager of Zeltsoff Celgar in Castlegar said today, a three or four-month delay will be too late. The mill will no longer be viable.
Will the minister commit today to immediate funding that will arrive in time to save the pulp and paper industry?
Hon. Lisa Raitt (Minister of Natural Resources, CPC): Mr. Speaker, as I indicated, the government announced today the pulp and paper green transformation program.
This program is being put in place specifically to allow the pulp and paper industry to transform itself, already doing very well in terms of renewable energy, but even more so, becoming more clean and more green. That is exactly what we should be doing at this point in time. As I have already indicated, industry has embraced it has been very vocal about the fact that it is the right thing to do.
Mr. John Rafferty (Thunder Bay—Rainy River, NDP): Mr. Speaker, today’s forestry package has totally missed the mark. While New Democrats welcome aid for pulp and paper producers to make their operations more efficient and environmentally friendly, the government has failed to deal with some fundamental issues.
Where is the commitment to make EI more accessible? Where is the pension protection for Abitibi Bowater retirees? Where are the guarantees for small businesses and suppliers that are owed huge sums of money by large bankrupt corporations?
With hundreds of thousands of jobs at risk across the country, does the minister really think this plan will save them?
Hon. Lisa Raitt (Minister of Natural Resources, CPC): Mr. Speaker, we are very pleased to announce today the government’s new program with respect to forestry, and I will give more details of it later on. However, if the member actually bothered to talk to the industry, he would find out that it embraces it, that it will help save jobs and help us maintain our edge as the greenest supplier of pulp in the world.
What it particularly appreciates about the announcement is it demonstrates a commitment to the future of the industry through its support to capital improvements, exactly what industry needs to prepare for the return of markets.
Tags: employment, jobs