A $1.2-billion lifeline from Ottawa that’s being thrown to the forest industry is welcome news to northwestern Ontario mayors and the Canadian Wood Council.
With U.S. duties gouging Canadian softwood lumber exporters, Prime Minister Mark Carney rolled out an aid package Aug. 5 to helping struggling forest product companies transition into new products and markets.
The 37-member Northwestern Ontario Municipal Association (NOMA) called it a “significant and timely commitment to ensuring the long-term competitiveness of the forest sector” and comes at a crucial time when local jobs, economic growth and municipal stability is on the line.
Ottawa is providing $700 million in loan guarantees to softwood lumber companies for financing and credit support to maintain and restructure their operations.
Another $500 million will fund initiatives to increase domestic processing and get into more value-add lumber production. Indigenous-led forestry business development and diversification initiatives will be eligible.
A further $50 million is the queue to help more than 6,000 out-of-work lumber workers with upskilling, reskilling and income supports.
“These measures recognize the vital role of forestry in Northwestern Ontario and across Canada,” said Marathon Mayor and NOMA president Rick Dubas in a statement, “helping our sector adapt to ongoing trade challenges, protect local jobs, and create opportunities for both Indigenous and non-Indigenous communities.”
Ottawa said it’s placing a priority in its federal procurement process to require contractors to source Canadian lumber and building materials. The government said that should factor prominently in its plans to build major infrastructure projects faster and home building.
Further federal programming is coming to help Canadian wood products manufacturers to sell into new export markets.
NOMA said it supports the government’s commitment to Indigenous-led forestry and in placing a priority on using Canadian wood in major infrastructure and housing projects. This should strengthen local supply chains and maximize the value of the region’s renewable resources.
The Canadian Wood Council said aid to the industry sends a strong signal of support for sustainable construction and domestic manufacturing.
“This announcement reinforces the critical role that wood-based solutions can play in meeting Canada’s housing and climate goals,” said Canadian Wood Council president-CEO Rick Jeffery in a statement.
“The focus on innovation, capacity expansion, and domestic use of wood aligns well with technical insights we’ve shared over many years through our work with government, industry, and the architects, engineers, construction professionals, and developers (AECD) community.”
