Natural Resources Canada
2007/12
February 8, 2007

Canada's New Government Invests in Forest Competitiveness

MONTRÉAL - Canada's New Government understands that a strong forest sector is vital to a strong Canadian economy. Today, the Honourable Gary Lunn, Minister of Natural Resources, announced funding of $127.5 million to address long-term competitiveness in the forest industry. These new measures will help begin to create the environment necessary for Canada's industry to compete on a global scale.

The industry is currently facing a series of challenges, which includes increases in costs, appreciation of the Canadian dollar, growth in offshore competition and constraints to fibre supply.

“Our goal is a strong, competitive and sustainable forest products industry,” said Minister Lunn. “We will work with the provinces and industry to position Canada as a leader in new technologies, products and markets.”

Communities and industries involved in the forest sector in all regions of the country will benefit from this initiative. An investment of $122.5 million will support three initiatives led by Natural Resources Canada: promoting innovation and investment in the forest sector, expanding market opportunities, and developing a national forest pest strategy. In addition, $5 million is earmarked for Human Resources and Social Development Canada (HRSDC) to form a Human Resource Forest Sector Council that will help identify and address skills and adjustment issues in the industry.

Today's investment is part of the $400 million provided in Budget 2006 to ensure a more stable future for the forest industry. In January this year, $200 million was invested in the Federal Mountain Pine Beetle Program to combat the spread and consequences of the mountain pine beetle infestation. In addition, funding in the amount of $72.5 million for the Targeted Initiative for Older Workers was announced by HRSDC last October, and the expert panel to study labour conditions affecting older workers was announced in January 2007.

Canada, a leader in sustainable forest management, is home to ten percent of the world's forests. It is the world's largest exporter of forest products. The investments of Canada's New Government will help to ensure that the Canadian forest industry will continue to contribute to the well-being and health of Canadians and our environment.

FOR BROADCAST USE:

Today, the Honourable Gary Lunn, Minister of Natural Resources, announced Government of Canada funding of $127.5 million to address long-term competitiveness in the forest industry. These investments will help to ensure a strong forest sector, which is vital to a strong Canadian economy.

For more information, media may contact:

The following media backgrounders are available at:

1. Forest Industry Long-Term Competitiveness Initiative
2. Promoting Forest Innovation and Investment
3. Expanding Market Opportunities
4. National Forest Pest Strategy Development

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media.