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Released: 16 May, 2002
Dhaliwal Announces $75-Million Investment In The Future Of Canada's Forest Industry
OTTAWA — The Honourable Herb Dhaliwal, Minister of Natural Resources
Canada (NRCan), today announced an investment of almost $75 million to support
several initiatives that will help ensure that Canada's forest industry remains
prosperous and competitive. These programs are intended to secure the industry's
position in the global market.
The funding will target new and existing export markets for wood products,
and provide for increased research and development (R&D) that will support
innovation in the forest-products sector.
"Canada's forest-products sector is a key contributor to our national
and regional economies, and these initiatives offer strategic instruments in
the sector's longer-term competitiveness," said Minister Dhaliwal. "They
will help us achieve our goals of diversifying our markets and branding Canada
worldwide as a preferred source for top-quality and innovative forest products."
"Today the Government of Canada is addressing long-term support for the
industry," continued Minister Dhaliwal. "But we are also working with
the provinces to determine the shorter-term impacts of the U.S. ruling on the
workers, communities and companies."
Minister Dhaliwal noted that his department is considering a number of options,
along with the Department of Foreign Affairs and International Trade, Industry
Canada and Human Resources Development Canada.
NRCan has worked closely with representatives of the forest-products industry,
provinces and research organizations to develop these initiatives. The funding
is allocated as follows:
- $29.7 million for the Canada Wood Export Program (CWEP);
- $30 million to support research and development activities; and
- $15 million for the Value-Added Research Initiative for Wood Products.
CWEP is an initiative with wood-industry associations across the country to
expand Canada's offshore markets. In addition to Japan, which has been a key
Canadian export market for more than 20 years, countries such as China, Taiwan,
Korea and India, in particular, present substantial new opportunities for the
forest-products industry. The initiative will promote Canadian wood products
and work to increase the use of wood in new markets. The Canada-China Wood Products
Initiative, announced in March this year, was the initial installment of the
program. Efforts in other markets will expand considerably as a result of CWEP
funding.
Canada's three national forest research institutes — Forintek Canada Corp.,
the Forest Engineering Research Institute of Canada and the Pulp and Paper Research
Institute of Canada — will use the R&D funding to work on activities
that will strengthen Canada's competitive position in the world market. These
three institutes are major centres of forest-products research in Canada and
key engines of innovation.
The Value-Added Research Initiative for Wood Products will support fundamental
and applied research conducted through Forintek and the universities of British
Columbia, Laval and New Brunswick. The research will focus on improving processes
for producing products from lumber, such as hardwood flooring, moulding and
trim. This subsector consists mainly of small- and medium-sized enterprises.
For more information, media may contact:
Heather Bala
Director of Communications
Office of the Minister
Natural Resources Canada
Ottawa
(613) 996-7252
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