Canada Economic Development

Canada Economic Development

April 26, 2010 11:00 ET

$100M to Support Quebec's Forest Communities

Another future, together

ROBERVAL, QUEBEC--(Marketwire - April 26, 2010) - The Honourable Denis Lebel, Minister of State for Canada Economic Development and Member of Parliament for Roberval–Lac-Saint-Jean, today announced the establishment of the Temporary Initiative for the Strengthening of Quebec's Forest Economies. This three-year, $100 million measure is intended to support communities affected by the forestry crisis in their efforts to expand and diversify their economic activity.

The initiative will make it possible to assist the industry and its workers by providing funding for local projects that improve the performance of enterprises in communities hit by the crisis in the forest sector.

"The Government of Canada is well aware of the magnitude of the forestry crisis in Quebec and of the pressure it is placing on the communities whose economies rely heavily on the industry. That is why we have been quick to act in the interests of local workers and their communities by strengthening the economy in these regions. Today's announcement is yet another example of a tailored response to the specific problems facing those populations struggling with the crisis in this industry," explained Minister of State Lebel.

In order to address the pressing needs of communities, the funds allocated to this initiative will be dedicated exclusively to the regions affected by the forestry crisis. Examples of targeted projects will include those relating to new market development, a recovery plan, equipment acquisition, development and processing of forestry waste (biomass), and so on.

All projects accepted under this new initiative must comply with the Softwood Lumber Agreement and Canada's national policy on forestry industry investment incentives. The specific terms and conditions of the measure will be posted shortly on the Agency's Web site.

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