Politics Watch - Canada's Political Portal
 

 



 

Aid package leaves out loan guarantees


OTTAWA (PoliticsWatch posted October 8, 2002 @ 5:30 p.m.) Opposition leaders are calling the $247 million aid package for the softwood lumber industry "pathetic" and say omitting loan guarantees means Canadians will continue to lose the battle. 

New Democratic Party leader Alexa McDonough called the package "paltry" and "pathetic" outside the House of Commons. 

"Unemployment surplus is $42 billion dollars and the best that federal Liberal  government could come up with to deal with 45,000 forestry workers is a paltry $247 million program," she said. "There's nothing to address to loan guarantees to prevent small forestry companies from going under, resulting in the loss of great number of jobs. And it absolutely does not respond to the urgency of the situation."

Canadian Alliance leader Stephen Harper said the aid is sending the wrong message. 

"We're fairly disturbed about the philosophy behind the softwood lumber package," he said in a scrum. "What it really does is it treats the industry as if it's dead. You start retraining people, refocusing communities. What we think should be happening is a package that helps the industry fight this battle, including loan guarantees." 

Natural Resources Minister Herb Dhaliwal announced the package in British Columbia, which has been hardest hit by the dispute and the 27 per cent U.S. duty. 

As expected, the federal government will provide $71 million to assist displaced workers, $110 million for a national Softwood Industry and Community Adjustment Fund for community economic development, $23.5 million for a new centre of excellence for pulp and paper in Trois-Rivières, Que. and $2-million to support a boreal forest research consortium in the Saguenay-Lac-Saint-Jean region of Quebec. 

The government is also providing $40 million towards research in fighting pine beetle infestations in British Columbia.

Dhaliwal said further assistance could be in the works if the dispute continues to drag on. 

However, Industry Minister Allan Rock said negotiations with the United States are hopeful.

"Mr. Pettigrew is trying to get the Americans back to the table and will be continuing those efforts," he said outside the House of Commons. "But what we've done is certainly in terms of the community assistance element of the package, we've planned the money over two years to provide economic development opportunities. We hope they don't need it for that long."

The federal government avoided loan guarantees for small and medium sized companies because it could considered a subsidy, drawing further retaliation from the United States.

But Harper suggested there is a way to frame the loan guarantees so it isn't looked at as a benefit. At the same time, he urged Canada to defend itself against the United States. 

"We better be in this to win," he said. "I think it's about time we start acting like boy scouts in some of these disputes and start to actually do whatever's in our power to help our Canadian producers to fight this."

Read these related PoliticsWatch stories:
arrow-trans.gif (111 bytes) Softwood lumber dispute moving forward
arrow-trans.gif (111 bytes) Ottawa tight lipped about help for beleaguered softwood lumber industry
arrow-trans.gif (111 bytes) Pettigrew calls U.S. softwood lumber levy obscene
arrow-trans.gif (111 bytes) Ontario calls on Ottawa to abandon softwood lumber talks 
arrow-trans.gif (111 bytes) Provinces and industry are united with Ottawa in the softwood lumber  negotiations, says Pettigrew
arrow-trans.gif (111 bytes) Pettigrew pledges to protect lumber remanufacturers
arrow-trans.gif (111 bytes) Pettigrew meets U.S. supporters of Canada's
softwood lumber position
arrow-trans.gif (111 bytes) Ottawa will use NAFTA to challenge U.S. duties
arrow-trans.gif (111 bytes) Clark urges Chrétien to talk to President Bush about softwood lumber dispute
arrow-trans.gif (111 bytes) NDP asks Ottawa to aid lumber industry as talks drag on
arrow-trans.gif (111 bytes) New negotiating strategy needed on softwood lumber file: Casey
arrow-trans.gif (111 bytes) Pettigrew: Stumped! Softwood lumber dispute goes off the rails
arrow-trans.gif (111 bytes) Pettigrew 'Balkanizing' federal trade policy on softwood lumber: MParrow-trans.gif (111 bytes) 
WTO sides with Canada on softwood lumber tariff

© PoliticsWatch 2002. All rights reserved. Republication or redistribution of PoliticsWatch content, including by framing, copying, linking or similar means, is expressly prohibited without the prior written consent of Public Interests Research and Communications Inc. PoliticsWatch is registered trademark of PIRCINC.

 

Ad:  eGOVnews KNOW.NOW.COMPETE

 


PoliticsWatch Home  |  Political News   |  Voter Resources  |  Research Base

politicswatch3.jpg (27966 bytes)
PoliticsWatch™ | Canada's Political Portal™

Reproduction of material from any PoliticsWatch.com pages without written permission is strictly prohibited.
© 2000 Public Interests Research and Communications Inc. All rights reserved.
1502 - 85 Albert  Street, Ottawa ON K1A 6P2 |  613.282.7331 | news@politicswatch.com  |
Terms of Service, Copyright, Trademarks, and Disclaimers Statement.