Found on Timmins Today
Canada’s struggling forestry companies and its hard-hit sawmilling sector need federal support to get them through to the end of this year.
The crash of lumber prices, the pandemic-related halt to the North American economy, combined with the pain felt by softwood lumber tariffs over the last two years has many industry players facing a “brutal” next couple of financial quarters, said Derek Nighbor, president-CEO of the Forest Products Association of Canada (FPAC).
Nighbor appeared as a witness before the House of Commons Standing Committee on Finance on April 17 to lay out the landscape of what the industry is experiencing.
“We just need some help to keep our heads above water and keep as many people working as possible over the next few months,” he said. “The rest of 2020 is going to be about survival.”
FPAC represents Canada’s wood, pulp, paper, and wood bio-products manufacturers, a $73-billion industry employing 230,000 in northern and rural communities.
In recent weeks, lumber markets have plunged with a nearly 40 per cent drop in prices, causing the temporary closure of 39 sawmills across Canada, including 24 in British Columbia.
Newsprint and paper markets are also collapsing with offices, stores and schools locked up, and advertising revenues dropping.