Most want gov’t aid for forest industry. October 07, 2008. New poll comes as companies face immediate debt crisis. The majority of Canadians in all regions of the country agree or somewhat agree that governments should provide financial aid to keep more forest companies from closing.

The results of a new poll by Nanos Research for the Communications, Energy and Paperworkers Union of Canada (CEP) come as major forest companies in Canada face an immediate debt crisis.

“Canada’s forest industry is the major victim of the mortgage crisis that has devastated the U.S. housing market,” says CEP President Dave Coles. “In the first six months of 2008, the Canadian industry has lost $1.2 billion. In 2009, major forest companies must refinance large debts, including Abitibi-Bowater’s $1.1 billion debt and Catalyst Paper’s $350 million debt.”

The poll showed that 60% of Canadians agreed or somewhat agreed that federal and provincial governments should financially support the forest industry to prevent more companies from failing. Just 32.1% disagreed or somewhat disagreed with government support for forestry companies.

“Canadians understand the importance of a healthy forestry industry to many communities across the country,” adds Mr. Coles. “It is becoming increasingly Stephen Harper’s ‘laissez-faire’ attitude on the economy is not shared by Canadians. The U.S. government has taken action – why has the Canadian government done nothing?”

The president of Canada’s largest forest union stressed that “this is not about bailing out the bad debts of forest companies, but about calling on the federal government to ensure stability in our financial system so that forest companies can receive the credit they need.”

Canadians are in agreement with government support for the forestry industry across demographic, regional and party preference lines. Agreement is highest for government action in Quebec (73.8% agree or somewhat agree), women (65.4% agree or somewhat agree), Canadians aged 18-29 (63.5% agree or somewhat agree) and Bloc Quebecois supporters (83.3% agree or somewhat agree).

“We call on all federal parties to bring forward a detailed plan before October 14, including financial support, to help revive Canada’s forestry industry,” said Coles. “Canadians need to know where the parties stand on supporting Canadian jobs.”

Approximately 300,000 Canadians earn their living from our greatest renewable resource – the forests. Three times that many, according to economic studies, rely on the income those jobs produce to maintain their standard of living. Yet, in the last five years, 32,000 forest workers have lost their jobs as hundreds of pulp, paper and sawmills have shut down, turning once thriving communities into ghost towns.