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PM monitoring ailing forest sector, Harris says |
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Written by GORDON HOEKSTRA
Citizen staff
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Monday, 24 November 2008 |
Conservative Cariboo-Prince George MP Dick Harris on Monday made no promises on possible additional help for the ailing forest sector in B.C., but said the industry is at the top of mind for Prime Minister Stephen Harper.
Harris, the chair of the Conservative's forestry caucus, was responding to a call from B.C.'s Finance Minister Colin Hansen, who has said that if the federal government is going to bail out the auto sector in Eastern Canada, consideration must be given to the forest sector as well.
In last week's throne speech in Ottawa, the Conservative government promised "further support" for the auto and aerospace industries, but has not defined what that support might be. GM Canada has said that Canada should shoulder a proportion of the $25-billion aid package being sought by the three big American automakers in the U.S. And Chrysler Canada has requested $1 billion in help from Ottawa and Ontario.
Said Harris: "If anyone asks me does the forest industry agenda have the prime minister's ear, I can say unequivocally yes. And almost to the point where it's like someone sitting on his shoulder whispering, 'Remember the forest industry,' and at times screaming it into his ears."
Harris also stressed that if -- noting it's not certain yet -- money goes to assist the auto sector in some way, it would not be a Band-Aid solution, but have to have proven long-term benefits.
Harris also noted that direct assistance to the forest sector will be all but impossible given the restrictions under the softwood wood lumber agreement with the U.S. The seven-year trade agreement signed in 2006 prohibits subsidies to the Canadian industry.
The Conservatives have provided support to the forest sector but not directly to companies. Ottawa has rolled out about $200 million in spending from a pledge of $1-billion in beetle aid during the next decade. The Conservatives also made a $1-billion pledge last January to help communities facing major economic downturns, including in the forest sector. B.C.'s share was $129 million used for retraining workers, pension bridging and for work projects. The province set aside $2 million each for work projects in Fort St. James and Mackenzie, two of the hardest hit communities in northern B.C.
Harris said he is also trying to get approval from Human Resources Development Canada to extend work-share funding programs for mills that have reduced their work weeks. Companies like Lakeland Mills in Prince George and Dunkley Lumber, just south of Prince George, are using the program.
The forest downturn has been led by a collapse in U.S. housing, but also been exacerbated by a mortgage crisis in the U.S. and a financial crisis on Wall Street.
Thousands of workers have been laid off as mills have shut down and cut shifts. The pulp and paper sector has also been hit with weakening demand from the spreading global financial crisis and tightening of credit.
B.C. Forests Minister Pat Bell stressed Monday that the province would not be seeking bailouts from the federal government for companies, as the B.C. Liberal government fundamentally does not agree with them.
"Minister Hansen's comments we're really focused on the need to treat all industries fairly. I think if one industry is going to be treated in a specific way, then what's good for one, is good for all," said Bell, the MLA for Prince George North.
Bell said the province is more interested in ensuring a framework that ensures global competitiveness for the forest sector focusing on areas like taxation, marketing, and research and development assistance. If federal money is going to handed out, it should go to help workers, said Bell.
The Forest Products Association of Canada (FPAC) has adopted a similar philosophy.
In an interview with The Citizen last week, FPAC president Avrim Lazar warned the federal government not to bail out forest companies even in the midst of the severe downturn companies across Canada are experiencing.
These types of measures simply do not work and will only prolong the pain and will not help the industry emerge from the downturn on a competitive footing, said Lazar.
NDP forest critic Bob Simpson said there should be no bailout for the forest sector from the federal government unless the province has a restructuring plan. That plan could provide help to emerging forest industries such as bioenergy with a pool of seed capital. Other potential emerging sectors include the pharmaceutical, nutritional additive and ethanol industries, he said.
Bioenergy could use softwood wood waste, while the pharmaceutical industry could utilize hardwoods, said Simpson.
Helping develop these emerging sectors would benefit the primary sawmilling sector as well because the new companies could help share environmental and land-based costs, he said.
There's no reason these new industries couldn't be developed in two to three years, said Simpson, the MLA for Cariboo North. "It would bring bring jobs and investment in our land base again," he said.
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Last Updated ( Monday, 24 November 2008 )
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As to additional dollars due to the demand side problems, perhaps some dollars would be appropriate to put some effort into diversifying the market both from the point of view of increasing our customer base beyond just the USA and our product base beyond just North American wood framed housing and small building systems.