February 02, 2010

Earlier this week the Forest Product Association of Canada (FPAC) issued a release stating that their report, The Future Bio-pathways Project, a comprehensive, year-long study that sets the course for the forest industry’s emergence from one of the worst economic periods in its history, would soon be published. Kenora MP, Greg Rickford, is pleased that some of the recommendations are already being addressed by Government of Canada’s initiatives. “Diversification is the key to a prosperous future for Canada’s forest sector,” said Rickford, “particularly, the development of biomarkets which offers a wealth of possibilities.”
 
The Government of Canada recognizes the challenges that the forest sector is facing and continues to work with experts and organizations like FPAC to position the forest industry favourably as we move out of the economic recession. Last fall the United States government introduced the Biomass Crop Assistance Program (BCAP) that will pay subsidies to producers of wood biomass such as softwood lumber and wood pellet producers. We recognize that this program could be a threat to the Canadian forest sector.
 
Our government has formally raised concerns about the impacts this initiative could have on the Canadian forest industry with the US Department of Agriculture (USDA), the US Farm Services Agency (FSA), the United States Trade Representative (USTR) and the US Department of Energy. As well, we have discussed this issue with our provincial counterparts and are currently consulting with industry. We are assessing all our options while continuing our advocacy activities in the United States. Significant opposition to BCAP is also developing internationally (EU, Chile, Brazil, and Australia).
 
The draft regulations for BCAP are being held up by discussions between the US Department of Agriculture and the Office of Management and Budget. Major issues centre around how BCAP fits into broader policies relating to bioenergy incentives, greenhouse gas emissions, and, most importantly, the costs of the program.
 
Since 2006, our Government has been making significant investments to help transform Canada’s forest sector. As a key collaborator in the BioPathways research project, we are helping drive the future of the forest sector by developing new, Canadian biotechnologies. In this way, our Government is looking to tomorrow’s markets today. We continue to assist the industry through initiatives such as:

• The $1-billion Pulp and Paper Green Transformation Program is helping companies become leaders in the production of renewable energy from forest biomass.
  
  
• Collaboration with partners such as the Forest Products Association of Canada and FPInnovations to build a world-class industry that is a driver of growth and a leader in the clean energy economy of tomorrow.
  
  
• A $292.5-million investment, $170 million of which came through Canada’s Economic Action Plan, is expanding new domestic and international markets, advancing innovation and helping FPInnovations develop the next breakthrough technologies.
  
  
• The Community Adjustment Fund, the Community Development Trust, investments in forest innovation and market diversification, and the Work Sharing Program are also providing important support to the sector.

 
Locally the Government of Canada has made significant investments in the Kenora riding including the Two Feather Forest initiative, as well as the development of the future site and recruitment of Aspenware. This company will be self sustaining, producing a biodegradable product; they optimize the use of wood, their plants run on hydro-electric power and their manufacturing processes emit minimal, if any, carbon.
 
There is no question that all three levels of government also play a significant role in this area. Rickford was pleased to read this week that the City of Kenora has put Forestry on the top of their priority list with the Province. “As all levels of government work together on this, we will see the forest industry emerge stronger than ever,” he concluded.