Federal Forestry Strategy in the Works

The Conservative Government appears to be working on a billion dollar strategy aimed at helping the forest industry.

The strategy is to offset the $6 billion dollar subsidy given to U.S. pulp and paper mills for burning black liquor.

Kenora MP Greg Rickford says his Government is looking at a similar plan.

"Our government's challenge moving forward is to reward companies for using renewable resources," says Rickford.

Rickford says the American plan to burn black liquor is flawed because it rewards companies that burn fossil fuels.

But the N-D-P's forestry critic doesn't believe the government's proposal will go far enough.

In the house of commons Monday, Thunder Bay-Rainy River MP John Rafferty said the proposed billion dollar plan won't allow Canadian mills to compete against the stronger initiatives offered in the U.S.

"Half measures by the government will not save the forestry industry," said Rafferty. "Last week's billion dollar black liquor aid package is a start, but it will not level the playing field against U.S. competitors. The American subsidy is much larger, and it will still provide an unfair advantage to American mills."

"The Conservative plan will do little to help the million people who rely on the forestry sector for work. When will the government start seeing the forest for the trees and help the forestry industry emerge from this downturn more profitable and stronger than ever?"

Rafferty says at the very least, the Federal Government should match the American subsidy and make it retroactive from 2008.