Government of Canada

Government of Canada

June 07, 2009 17:00 ET

Harper Government's Economic Action Plan Helps Resource-based Industries

SASKATOON, SASKATCHEWAN--(Marketwire - June 7, 2009) - The Government of Canada has accelerated its national efforts to deliver economic stimulus as quickly as possible to resource-based industries and communities across the country. Funding allocations under Canada's two-year, $40-billion Economic Action Plan have been announced in every region of the country. Today, the Harper Government is reporting on progress made by the Action Plan to provide support for communities and industries hard hit by the global recession.

"Certain communities in Canada have been hard hit by the global recession, among which are regions that depend on single industries, such as mining," said Brad Trost, MP for Saskatoon-Humboldt. "Our Government is delivering action by injecting money as quickly as possible into the communities that need it the most so that new jobs will be created and our economy will bounce back better than before."

One of these initiatives is the Community Adjustment Fund, which is expected to help create or maintain thousand of jobs over the next two years. The assistance provided by this Fund, with $306.3 million allocated for western Canada, is in addition to support available through the $1-billion Community Development Trust. Both initiatives will help mining communities during the global economic downturn.

In the 2009 Budget, the government announced a one-year extension of the 15 percent Mineral Exploration Tax Credit to March 31, 2010, which will help junior mining companies access the venture capital they need to finance their exploration activities.

As well, the Government of Canada has recently announced accelerated funding with the Geo-mapping for Energy and Minerals (GEM) Program from $22 million to $30 million. GEM is the $100-million program for public geoscience to complete the geo-mapping of Canada's North. This accelerated funding, taken from later years, will assist the exploration industry in finding new oil, gas and mineral deposits.

Funding investments are outlined in the backgrounder Canadians Benefitting from Stimulus for Resource-based Industries in Harper Government's Economic Action Plan.

For more information about Canada's Economic Action Plan, visit: www.actionplan.gc.ca.

FOR BROADCAST USE:

The Government of Canada has accelerated its national efforts to deliver economic stimulus to resource-based communities and industries across the country. Today, the Harper Government is reporting on progress made through Canada's two-year, $40-billion Economic Action Plan to provide support for workers and communities affected by the global recession.

For information on the Community Adjustment Fund application process, visit:

Western Economic Diversification Canada: www.wd-deo.gc.ca / 1-888-338-9378

Atlantic Canada Opportunities Agency: www.acoa-apeca.gc.ca / 1-800-561-7862

Economic Development Agency of Canada for the Regions of Quebec: www.dec-ced.gc.ca / 1-866-385-6412

Industry Canada: http://ic.gc.ca/caf / 1-888-670-6643



Indian and Northern Affairs Canada:
www.ainc-inac.gc.ca
Yukon: 1-800 661-0451
Northwest Territories: 1-866-669-2620
Nunavut: 1-867-975-4537


The following media backgrounder is available at www.nrcan.gc.ca/media:

Economic Action Plan Update - Supporting Resource-based Industries


BACKGROUNDER

Canadians Benefitting from Stimulus for Resource-Based Industries in Harper Government's Economic Action Plan

The Government of Canada recognizes that the global recession is causing difficulties for many families, businesses, and communities across the country. It has been particularly difficult for Resource Based Industries - and for the workers and communities who depend on them. Following extensive national pre-budget consultations, this Government is taking steps to stimulate the economies of communities hardest hit by the economic downturn.

Economic Action Plan: Support for Communities

The Economic Action Plan (EAP) provides funding to eligible communities through the $1-billion Community Adjustment Fund (CAF), and other EAP initiatives to support resource-based industries (RBI).

By providing opportunities to develop small infrastructure projects, creating jobs, and improving the economy, Canada's Economic Action Plan is delivering support across Canada.

Western Canada

- On May 14, 2009, the Government of Canada announced a $306.3- million investment to help Western Canadian communities.

- The Government of Canada and the Province of Alberta will each invest $15 million dollars towards expanding and implementing the Forest Hazard Reduction and Forest Health Program - also known as FireSmart.

- Partnership agreement signed with Northern Development Initiative Trust and Western Economic Diversification Canada (WD) to deliver $10 million to northern British Columbia communities.

- WD to continue to accept applications for funding until June 26, 2009.

Ontario

- The Government of Canada has committed $348.9 million in funding to Ontario communities.

- Industry Canada is currently accepting applications.

Atlantic Canada

- The Government of Canada has invested $100.4 million in CAF funding to Atlantic communities.

- Consultation with the New Brunswick provincial government to commit up to $7 million to support siliviculture projects will create jobs and provide short-term stimulus for forest-dependant communities.

- Additional projects currently under review by the Atlantic Canada Opportunities Agency (ACOA).

Northern Canada

- The Government of Canada has invested $32.8 million in CAF funding to Northern communities.

- Indian and Northern Affairs Canada are reviewing projects with expected implementation in the coming weeks.

Quebec

- Action taken on May 15, 2009, to commit $100 million to support silviculture projects in Quebec. Combined with Government of Quebec funding of $100 million, this support is expected to result in the creation and retention of some 8,000 jobs.

- An additional $111.6 million is available for projects in the province of Quebec.

Economic Action Plan for Resource-Based Industries

The Government of Canada Supports the Forest Sector

On April 14, 2009, the Government of Canada took action to support the forest sector by committing $170 million to the Canadian forest sector.

Canada Wood, Value to Wood, and North American Wood First programs:

An investment of $40 million to expand domestic and international markets for Canadian forest products.

- Approximately $2 million for the Value to Wood initiative, with more than 20 research projects recommended for funding at five Universities in New Brunswick, Quebec, Ontario and British Columbia

- Canada Wood to initiate 130 projects in Southeast Asia (China, Korea, Japan), Europe, Australia, and the Middle East

- Work is underway in every region across Canada on over 60 projects approved through the North American Wood First program.

Large-scale Demonstration Projects in Offshore Markets

- $10 million to support large-scale demonstrations of the use of Canadian wood in both residential and commercial construction, with options for potential projects in China and South Korea.

Transformative Technology Research

Investment of $80 million will support the development of next-generation forest products for projects such as:

- Funding has been contributed to FPInnovations research centres in Quebec and British Columbia;

- Collaboration with universities and industry in Alberta and Quebec;

- Projects exploring unique applications to convert wood residue into pulp and paper products in Ontario; and

- Bio-products conversion in British Columbia and the Atlantic provinces.

Transformative Technologies Demonstration Projects

- $40 million to support the development of pilot-scale demonstrations of next-generation forest products leading to commercial applications. Natural Resources Canada is working with FPInnovations to identify partners and collaborators, with site selection expected in the fall of 2009.

Economic Action Plan Investments to Federal Laboratory Upgrades in the Forest Sector

- Investments to federal labs across Canada will create indirect and direct jobs and provide important investments in research to support the forest sector.

-- $805,840 investment to the Atlantic Forestry Centre in Fredericton, New Brunswick.

-- $2.2 million to modernize the Laurentian Forestry Centre in Quebec City, Quebec.

-- $7.5 million for deferred maintenance at the Northern Forestry Centre in Edmonton, Alberta.

-- $3.6 million for deferred maintenance at the Pacific Forestry Centre in Victoria, British Columbia.

The Government of Canada Supports the Mining Industry

In May 2009, our Government announced measures to provide $250,000 to establish a new Canada Mining Innovation Council. Private sector partners will contribute a further $100,000 in 2009. The new Canada Mining Innovation Council aims to promote mining research, innovation and commercialization, and increase the pool of highly qualified graduates from mining and earth sciences faculties.

- The Government of Canada has launched the Green Mining Initiative, investing $8 million to support the development and demonstration of new green technologies and processes to improve environmental performance throughout the mining lifecycle. This initiative will create new opportunities for Canadian mining technology and service industries.

- The Government of Canada has accelerated funding within the Geo-mapping for Energy and Minerals (GEM) Program from $22 million to $30 million. Total funding of $100 million to be delivered over five years to complete geomapping of Canada's North. This investment will help secure our sovereignty in the North while creating high skilled jobs for the region.

- Upwards of $500 million to be spent by private sector in resource exploration and development. GEM to assist the exploration industry in finding new oil, gas and mineral deposits in Canada, particularly in the North to create jobs, stimulate economic growth and establish a higher standard of living for all Canadians.

- The Government of Canada announced a one-year extension of the 15% Mineral Exploration Tax Credit to March 31, 2010. This measure will help junior mining companies access the venture capital they need for financing their exploration activities.

- For more information on the Community Adjustment Fund application process, visit:

http://www.nrcan-rncan.gc.ca/mms-smm/index-eng.htm

Economic Action Plan Investments to Federal Laboratory Upgrades in the Mining Sector

Investments at federal labs within the mining sector for deferred maintenance and modernization initiatives will create indirect and direct jobs and support research within the mining sector.

- The Government of Canada has invested $1 million to modernize the Arctic Research Facilities in Resolute Bay, Nunavut.

- The Federal Government has invested $427,441 to modernize the CANMET Canadian Explosives Research Laboratory in Ottawa, Ontario.

- Investment of $2.2 million to the CANMET Mining and Mineral Sciences Laboratories in Ottawa was announced on May 11, 2009.

- $7.2 million in funding to the Geological Survey of Canada lab announced on May 9, 2009 in Calgary, Alberta.

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media.

Contact Information

  • Natural Resources Canada
    Ottawa
    Office of the Minister
    Jocelyne Turner
    Special Assistant, Communications
    613-996-2007
    or
    Natural Resources Canada
    Ottawa
    Media Relations
    613-992-4447