The Media Room

2011/07 (a)

Backgrounder

Protecting Jobs in Canada’s Forest Sector

The Harper Government is making investments in Canada’s forest sector that are improving the environmental performance of mills and helping to position the industry at the forefront of the clean energy economy.

The Government is working with industry, provincial governments and other key stakeholders to help transform our forest industry and to help it take advantage of the growing bioeconomy, where innovation and environmental performance are key.

Today, as part of a $278-million investment in mills across the country, the Harper Government is investing $17.3 million in Domtar’s Kamloops Mill through the Pulp and Paper Green Transformation Program (PPGTP).

The funding will go toward three capital improvement projects that will build on a series of PPGTP-funded infrastructure upgrades announced last April for the mill. As a result, a number of operational processes will be improved by upgrading equipment and reusing steam and hot water whenever possible. Collectively, these changes will yield an additional 79,040 megawatt hours of renewable electricity per year — enough green electricity to power the equivalent of more than 6,600 homes.

Promoting Forest Innovation and Investment

The key to a strong future for the forest sector is to promote innovation and entrepreneurial activity within a competitive business environment. The Harper Government is working to help Canada’s forest sector take advantage of new market opportunities by researching innovative products that meet the needs of the marketplace.

As outlined in Canada’s Economic Action Plan, the Harper Government has delivered $170 million over two years to improve the forest sector’s long-term competitiveness through renewed investments in market diversification and forest innovation. This funding includes $120 million to help promote forest innovation and investment and $50 million to expand market opportunities for Canadian forest products.

Other key Harper Government initiatives in support of forest sector sustainability and renewal include the $1-billion Pulp and Paper Green Transformation Program. Budget 2010: Leading the Way on Jobs and Growth committed an additional $100 million over four years to support the development and commercialization of advanced technologies in the forest sector.

In addition to its ongoing support of Canada’s forest industry, the Harper Government established the $1-billion Community Adjustment Fund and the $1-billion Community Development Trust to help reduce the short-term impacts of economic restructuring in single-industry communities facing challenges as a result of the global economic downturn.

For more details about the Pulp and Paper Green Transformation Program, visit http://cfs.nrcan.gc.ca/subsite/pulp-paper-green-transformation.

For additional details on Canada’s Economic Action Plan, visit http://www.budget.gc.ca/2009/home-accueil-eng.html.

Richard Walker

Director of Communications

Office of the Minister

Natural Resources Canada

Ottawa

613-996-2007

Media Relations

Natural Resources Canada

Ottawa

613-992-4447

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