Province takes a step in the right direction for forestry sector

Submitted by
OFIA

TORONTO — Today’s announcement by the Government of Ontario lays a foundation for some members of province’s forestry sector, but work remains to be done to make industrial electricity affordable and Ontario a competitive jurisdiction in which to do business.
Recognizing the good news in today’s announcement by Minister Ramsay in Thunder Bay, Jamie Lim, President/ CEO of the Ontario Forest Industries Association (OFIA), said, “For some members of the pulp and paper sector, the announcement will have a significant impact on lowering costs and helping them to become more competitive but a lot more still needs to be done. The goal of reducing electricity pricing to an all-in delivered rate of $45 must still be achieved for the entire sector,” she stressed.
“We will continue to work constructively with the government and the Ontario Forestry Coalition (OFC) on next steps to ensure that Ontario is returned to being a competitive place for forestry to operate. Our sector continues to be battered by numerous challenges and we’ve not yet turned the corner. A competitive business environment that includes affordable electricity preserves jobs, stimulates investment, and restores prosperity. Right now, Ontario companies are investing, but it’s not in Ontario,” Ms. Lim adds.
The rebate being offered to the largest electricity consumers in the pulp and paper sector is a transitional measure that must be followed by further steps to reduce rates for the rest of Ontario’s forest industries including site producing other pulp and paper, OSB, saw mills and panel board manufacturers that are paying an average in the range of $70 per MWH when operations in neighboring provinces pay between $29 and $42 per MWH.
After much analysis, the OFIA and the (OFC) provided government with a plan last April that called for an initial $15 per MWH rebate on electricity that would serve an interim measure until $45 per MWH all-in delivered power rates were established for the sector for a three year period.
“The $10 plan announced by government today brings us part way to the $15 interim measure for some member companies and now we’ve got to finish the job in a very timely manner,” Ms. Lim concludes.