Government MUST act now
TORONTO, July 29 /CNW/ - News that Abitibi Consolidated is drastically cutting operations at its Kenora mill did not come without warning and might have been avoided if the Ontario government had taken immediate steps to act on a report they themselves commissioned, the Ontario Forestry Coalition said today.
This week's announcement that one 90,000 tonne newsprint machine will be mothballed and a 150,000 tonne machined idled is a significant blow to the community. Kenora Mayor Dave Canfield notes that the mill employs 365 workers and affects hundreds more forestry related jobs in the region.
"On June 13 the government officially received a report it commissioned that warned of an escalating crisis in the forestry sector if immediate action was not taken. Similar warnings have been heard over the past several months and still nothing has been done," observes Jamie Lim, a member of the Forestry Coalition and President of the Ontario Forestry Industries Association.
"This mill is not shutting down because the forest sector is a sunset or dying industry, it's shutting down because of an uncompetitive business climate in Ontario. Our industries, our communities and our province cannot afford further delay. The government must act now," adds Lim noting the government's report found as many as twelve mills are in peril of closuring as the direct result of operating in one of the highest cost jurisdictions in the world.
Over 50 communities across Northern Ontario are largely dependent on the forestry sector and across Ontario over 500 wood products manufacturers in more than 200 communities could be impacted by the crisis.
President of the Northwestern Ontario Municipal Association (NOMA), Michael Power points out that when the auto sector and film industry sought assistance the government moved with lightning speed and he strongly urges a similar response for the forestry sector.
"The forestry sector in Ontario should be thriving, but a history of government cuts, downloading and bad circumstance has hurt our competitiveness and now threatens the forestry sector's very survival. Companies that could be investing in Ontario are closing completely or moving south of the border. Before it gets worse, now is the time for government, which has contributed to our problems, to be part of the solution," added Power who is also Mayor of the Community of Greenstone.
Noting the tremendous success the forestry sector built throughout the 1990s when sales doubled from $9 billion to $19 billion and direct employment leaped from 64,000 to 88,000 jobs, Mayor Power said, "Perhaps the thing that I find most troubling is that the Ontario government knows what needs to be done. It's right there in black and white in their own report. Either the government acts, or the industry dies, there is no two ways about it. We can be competitive and we can thrive, but that won't happen as long as government stays on the sidelines."
Forestry stakeholders have worked together with government to develop a plan that will restore the industry's ability to compete. Specifically, the coalition is asking the government to take immediate action on the following four key recommendations contained in the June 13 Minister's Council Report on Forest Sector Competitiveness:
- A 50% fuel tax credit on the Provincial portion of the tax, when hauling fibre from the forest to the mills;
- The Province to reassume 100% of the construction and maintenance of primary road and 50% of the costs of secondary forestry roads;
- A Business Climate competitiveness fund similar to the package offered to the Automotive sector; and
- A reliable energy supply at competitive prices.
"Our thoughts are with the Kenora mill workers and their families whose jobs are at risk with yesterday's announcement. The forestry sector - which directly employs more than 84,000 workers - can be turned around. The matter is in the hands of the Ontario Government. We hope they will act wisely - and quickly." adds Mayor Canfield.
The Ontario Forestry Coalition (OFC) is a partnership between industry, municipal organizations and aboriginal economic development funds that have joined together with a common purpose of promoting and enhancing the Ontario forestry sector's ability to continue to create jobs and economic prosperity in Ontario.
The Northwestern Ontario Municipal Association (NOMA) considers matters of general interest to the municipalities and to procure enactment of such legislation that may be of advantage to the municipalities in Northwestern Ontario. They take united action on all matters where; the rights of the municipalities may be affected; to advance the standards of municipal
government through education and discussion; and generally to promote their interests. The organization is governed by a 20 member Board of Directors. Sixteen of the members are elected officials and four are appointed officers of municipal corporations.
The Ontario Lumber Manufacturers' Association (OLMA) is an industrial trade association representing the interests of the Province's independently-operated, non-integrated sawmills in quality of production, public forest policy and in international trade. The sawmill members of the OLMA are significant fixtures in most of the 50-plus single industry towns of Northern Ontario, as employers, residents and community leaders. The sawmill industry is a notable employer of Ontario's native people, in all the aspects of access, harvest, forest renewal and lumber manufacturing.
The Ontario Forest Industries Association (OFIA) is the voice of 29 member companies responsible for the stewardship of 75-80 percent of the fibre on Ontario's Crown land managed for timber. The industry in Ontario has a $19 billion a year economic impact, employing 275,000 people directly and indirectly and paying taxes and stumpage fees in excess of $2.3 billion annually.
For further information: contact: Jamie Lim, OFIA, (416) 368-6188;
Mayor Dave Canfield, (807) 467-2018; Mayor Michael Power, (807) 854-1100
