Road building contractors will be thrown out of work because of the province's deep cuts to its Forest Roads Program, says an industry advocacy group.
In a June 27 release, the Ontario Forest Industries Association (OFIA) said the Ministry of Northern Development, Mines and Forestry is slashing funding to the successful program by 36 per cent.
Since its 2005 implementation, the program provided the industry with $75 million a year for the construction and maintenance of public access roads.
OFIA's president and CEO Jamie Lim says the $27 million in cuts will have far reaching impacts across the region.
“This is a total shock, a terrible blow to the companies that have stayed open and kept people working through this recession.”
OFIA says contracts between industry and small contractors are “being torn up.” The association is asking for a restoration of road funding to a minimum of $65 million.
Northern Development, Mines and Forestry Minister Michael Gravelle accused OFIA of playing politics with an election looming, adding the government has shown “unprecedented levels of support” for the forest sector.
Gravelle said the Ontario government committed $400 million to forest access roads as harvest levels fell by almost 50 per cent. Faced with the challenge of cutting funding to address Ontario's debt, the ministry chopped the program to $47.8 million, a “temporary reduction” that he says could be restored once funds become available.
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