NDP Seek Forestry Support

Federal NDP want some immediate action from the federal government for Canada's forestry industry.

NDP Forestry Critic John Rafferty says it starts with a negotiated end to the U.S. Biomass Crop Assistance Program subsidy.

“The U.S. government continues to deliver billions of dollars in tax loopholes and subsidies for their forestry sector, such as the lapsed Black Liquor regime and the new Biomass Crop Assistance Plan, and the Harper government’s response to this practice has ranged from too late to non-existent,” says Rafferty.

“With more than 275,000 jobs at stake, the choice is simple: save money and get ahead of the problem by negotiating with the Obama administration to end this sort of subsidy, or match the subsidies later for Canadian mills to prevent closures.”

In September, 2009, the U.S. Biomass Crop Assistance Program began providing subsidies for the supply of wood biomass for direct or indirect use as a renewable fuel. Natural Resources Canada estimates the program will pay subsidies of $3-10 billion to U.S. mills.

The Thunder Bay-Rainy River M-P says they also want Finance Minister Jim Flaherty to help AbitibiBowater and the Communications Energy and Paperworkers Union resolve their pension shortfall.

Rafferty says it was something the minister promised last fall, but to date there has been no such meeting.