Forestry industry says thousands of jobs are at risk

News Release
Ontario Forest Industries Association

Toronto — There are 12 forest industry mills identified as being at risk in Northern Ontario, and, should they close, the impact on the entire province, including Southern Ontario, will be significantly harsh.
“We need the assistance of the government now. The forest industry is in crisis and the loss of our industry is a loss for the entire province,” says President and CEO of the Ontario Forest Industries Association (OFIA) Jamie Lim.
Ms. Lim notes financial analysis that has shown the closure of the 12 high risk mills will result in 7,500 direct job losses in the north, 17,500 indirect job losses in the north and a further 13,000 indirect job losses in Southern Ontario.
“The forest industry is second only to the automotive sector in its $8 billion contribution to the province’s balance of trade. Unquestionably, the loss of 12 mills would have severe social and economic impacts, not only on the individuals, families and communities that have lost jobs, but to the province as a whole. Consider just the losses in tax revenue,” adds Lim.
Loss in revenue federally $550 million
Loss in revenue provincially $340 million
Loss in revenue municipally $75 million
“Ontario’s forest industries do not want a hand out, we need a hand up, and we are asking the provincial government to offer assistance as it has for the automotive sector and the film industry,” states Lim.
The provincial government has put $500 million into the auto sector and helped create an environment that makes the industry more competitive in the global marketplace.
The forest industry applauds the government’s initiative in setting up Minister of Natural Resources David Ramsay’s Council on Forest Sector Competitiveness. The Council, consisting of representatives from industry, government, labor, First Nations and environment, has developed a list of recommendations that will assist in rebuilding an industry that has suffered serious decline in recent years.
“The forest industry remains an important Ontario industry but there must be a commitment to ensure it can continue to be a robust part of our economic engine. It’s renewable, and, under the right business climate and government policy structure, it’s an industry that can grow and thrive,” observes Lim.
“An investment in the forest industry is an investment in Ontario. Now is the time to start putting the Minister’s Council recommendations into action,” says Lim, who remains optimistic about the forest industry’s future, but, if steps are not taken immediately, it may be too late to stop the closure of mill operations and the demise of jobs and community life in cities and towns across the province.