VICTORIA: The BC division of the Canadian Taxpayers Federation (CTF) today slammed the federal government for forestry-related corporate welfare in Quebec, especially while the softwood lumber dispute kills mills and jobs in British Columbia. Earlier this year, the federal government guaranteed $80 million in "financial participation" to a proposed paper mill in Chandler, Quebec - the proposed Papiers Gaspesia Inc. plant. Over the past year, it has also handed out $4.5 million in forestry-related corporate welfare from just one government agency.

"The federal government knew very well that the softwood lumber dispute would cripple B.C., but yet handed out corporate welfare tax dollars to forestry companies in another province," said CTF-BC director Mark Milke. He noted that Ottawa's corporate welfare policy has the potential to worsen the economic prospects of B.C. mills and it is especially inappropriate given the current softwood lumber dispute.

"The CTF is opposed to corporate welfare anywhere in the country - Quebec and British Columbia alike," said Milke, who argued that the federal government was slow to defend B.C.'s interests in Washington D.C., yet trumpeted its diligence in pumping an $80 million corporate welfare subsidy into a yet-to-be built Quebec mill:

"No effort has been spared over the past few months to ensure a favourable outcome to a complex matter of great importance to the economic development of the Gaspesie and the Illes-de-la-Madeleine."
From the federal government's Canada Economic Development news release, August 2, 2001:
http://www.dec-ced.gc.ca/en/biblio/communiques/2001/aout2001.htm

The CTF noted that in addition to the $80 million in "financial assistance" to the proposed Papiers Gaspesia Inc. plant, other forestry-related corporate welfare worth $4.5 million - from just one federal granting agency, Canada Economic Development (CED) - was given to several other projects in Quebec this past year. They include:

"Contributions" (i.e., grants):

$97,000 to G.A.B. Inc., to establish a wood planing mill, announced February 5, 2001.

$195,000 to Les Cedres Chics-Choc Inc. to establish a mill to produce eastern white cedar shingles, announced February 5, 2001.

$1,365,000 to Pan-O-Starr Inc. ($740,000 from HRDC and $550,000 from CED) for the transformation of birch wood, announced February 23, 2001. This was in addition to a 1999 grant of $75,000 for a feasibility study.

"Repayable contributions:"
(which may or may not be paid back depending on terms)

$933,250 to Produits Forestiers Lamco Inc. for the establishment of a wood lamination and jointing facility, announced October 14, 2001.

$2,000,000 to Planchers Jonquiere for the establishment of a wood processing plant, announced June 26, 2001.

"The CTF is opposed to corporate welfare anywhere in the country - Quebec and British Columbia alike, " noted Milke. "Liberal MPs from British Columbia may not be able to get Washington D.C. to listen, the but the least they can do is tell their own government to end corporate welfare that involves the forest industry. "