This is the moment that Prime Minister Mark Carney chose to announce real action to bolster the fortunes of Canada’s beleaguered softwood lumber industry. He announced a tangible succession plan support package while visiting the Gorman Bros Lumber mill in West Kelowna. The pilot program authorizes $700 million in loan guarantees to provide the industry with urgent financial relief. Aside from the headline transit amount, the bill provides $500 million in funding for long-term support.
He encouraged the administration to cut through red tape to “get the big stuff” built more quickly. Their objective is indeed bold: to increase the rate of homebuilding twofold to close to 500,000 homes annually within the next ten years. This announcement comes at a time when the Canadian softwood lumber industry is going through significant challenges. Current U.S. duties and fees are extremely punitive, as high as 35 percent.
Addressing Immediate Needs
The economic relief measures announced by Carney should deliver some much-needed, immediate relief to an industry that is under the gun. These $700 million in loan guarantees will allow these companies to address short-term economic conditions. At the same time, the $500 million allocation is supposed to help diversify export markets and develop more products.
Kim Haakstad, the president of the province’s Council of Forest Industries, applauded the actions. He called them “critical relief” at a “very exceptional, very challenging time.” Kurt Niquidet, president of the B.C. Lumber Trade Council, welcomed the timing of the measures as urgent. This is especially true, he asserted, as the industry needs support more than ever right now.
“This support buys us some time to do this important work,” – Ravi Parmar, B.C. Forest Minister.
Long-Term Strategy and Worker Support
As a response, Carney announced a new training program at government expense to “up-skill and re-skill” forestry workers. This move is matched by direct monetary aid to companies in the space. As part of the new initiative, we expect to see $50 million designed to improve workforce skills in a rapidly evolving economy.
The Prime Minister emphasized Canada’s plan to make more Canadian lumber available for future projects. He stated, “We will be our own best customer by relying more on Canadian lumber, Canadian softwood for Canadian projects.” This undermines the intention of this strategy to support local economies. Equally important, it stands against the broader tide of American protectionism and its corrosive effects on trade relations.
At our COP26 webinar, Mark Carney described this moment as a defining one, and the good news is that Canada is starting to go “from reliance to resilience.” He even tied the settlement of NAFTA trade dispute to the troubles in the softwood lumber industry. He characterized these problems as “separate but connected.”
Provincial Perspectives and Future Expectations
British Columbia’s provincial government, meanwhile, continues to claim that they deserve their “fair share” of the seemingly endless cash that Carney has designed. That is the percentage of cumulative support for the PLAN that officials are seeking. This is particularly poetic given that the province has one of Canada’s largest softwood lumber industries. Parmar said he was hopeful that the federal government had come to understand the “foundational nature” of the industry.
To quell concerns, TCT CEO Mark Carney pledged that future TCT projects would use exclusively Canadian lumber—all while continuing the difficult negotiations with United States stakeholders. He conveyed a message of accountability, stating, “So to be clear — we are not sacrificing any industry.”
Industry representatives including Nick Arkle from the Construction Forestry Mining and Energy Union have welcomed the federal government’s recognition of forestry’s plight. He stated, “I have not seen the federal government show this kind of attention to the forest industry.” He highlighted the need for continued vigilance, asserting, “We will hold government accountable if they sacrifice us.”
