Pictured above: MP James Lunney, MP John Duncan, Minister of Natural Resources the Honourable Lisa Raitt, MP Greg Rickford, MP Chris Warkentin, MP Rob Merrifield, MP John Weston and MP Cathy McLeod

OTTAWA, ON - Canadian Pulp and Paper producers who invest in improved energy efficiency and environmental performance may qualify for funding from a new, $1-billion Pulp and Paper Green Transformation Program, Minister of Natural Resources Lisa Raitt announced today.

“This new funding will help ensure that Canada has a pulp and paper sector that is both commercially and environmentally sustainable for years to come,” said Minister Raitt. “By making a smart investment today, we are laying the ground work for a greener, more secure future for the pulp and paper sector and the people who work in it.”

Greg Rickford, MP for Kenora stated “I am very pleased with this announcement for Kenora, and in fact all of Northwestern Ontario.  It puts our pulp mills in play. It gives them an opportunity to remain strong and competitive as premier pulp producers in the world, and in a position of strength and sustainability as we emerge from a global recession.”

The Green Transformation Program intends to provide funding of $0.16 per litre of black liquor, up to a maximum program total of $1 billion. Black liquor is a liquid by-product of the chemical pulping process used to generate renewable heat and power. Eligible companies participating in the Green Transformation Program will be required to invest these funds over the next three years in capital expenditures that make improvements to energy efficiency or environmental performance on any pulp and paper mill in Canada, including mechanical mills.

Rickford was later commended by the Minister of Natural Resources, Lisa Raitt for his work on this file during Question Period.  She stated:  “Mr. Speaker, I would like to thank the member from Kenora for his work on this file. He continues to serve his constituents and Northern Ontario extremely well.” His work included consulting with Domtar officials, union representatives, as well as numerous discussions and correspondence with the Minister to highlight this very important issue to the Kenora Riding.
 
The forest industry is pleased with this announcement. Avrim Lazar, President and CEO of Forest Products Association of Canada (FPAC) stated “This will save jobs and help us maintain our edge as the ‘greenest’ suppliers of pulp in the world.  Today’s announcement will accelerate this progress and will help the industry achieve its ambitious goal of using 100% renewable energy in all its operations.”

In addition to its ongoing support of Canada’s forest sector, the Government of Canada is providing $170 million over two years under Canada’s Economic Action Plan to help companies develop new products and processes and capitalize on new market opportunities internationally.
The $1-billion Community Adjustment Fund and $1-billion Community Development Trust are helping to mitigate the short-term impacts of economic restructuring in communities hard hit by the recession.

To minimize the financial impact of the downturn on workers and the communities they live in, the Government is providing $200 million to extend work-sharing agreements over the next two years to a maximum of 52 weeks. This funding will help employers and employees avoid temporary layoffs while their industry recovers.