Forest sector commitment touted

Over the past year, the McGuinty government has worked to strengthen Ontario’s forest sector by increasing its commitment to it to more than $1 billion, Natural Resources minister David Ramsay said last week.
“We’ve focused like never before on the economic challenges facing Ontario’s forest industry and the social impacts on our communities,” said Ramsay.
“No other government has put this level of support into the forest sector on so many fronts.”
The provincial government announced $360 million in programs to boost the forest sector’s competitiveness in 2006, in addition to the $680 million committed in 2005.
This total includes:
•a five-year, $350-million loan guarantee program;
•a three-year, $150-million Forest Sector Prosperity Fund;
•$140 million in electricity rebates over three years for northern pulp and paper mills;
•$75 million annually for the building and maintenance of forest access roads;
•a one-time stumpage fee refund of $70 million for 2005/06.
The Forest Sector Competitiveness Secretariat, which is administering the prosperity fund and loan guarantee program, is working with companies across northern and rural Ontario.
By the end of 2006, close to $75 million in new investment had been announced based on accumulated government support of $15 million.
In total, the prosperity fund and loan guarantee program have received more than 40 applications.
Applications approved and in process represent more than $1.2 billion in new investment potential.
In addition to the programs aimed at boosting competitiveness, the government is making about one million cubic metres of forest resources available through competitive processes in the north.
It is anticipated new facilities will be built to process these cedar, conifer, and white birch resources.
The government also has committed $7.6 million in 2006 to upgrade and improve forest fire-fighting capacity in both Northwestern and Northeastern Ontario.
New fire facilities in Cochrane and Red Lake are scheduled to be completed in 2007.
“The forest sector is one of the key engines of our economy,” said Ramsay. “We are working hard to ensure that it continues to be competitive and secures good jobs for Ontarians.”