Carol Hughes fights 'super subsidy' for U.S. pulp & paper

NEWS RELEASE

CAROL HUGHES, MP ALGOMA-MANITOULIN-KAPUSKASING

************************* New Democrats demand action on new 'super subsidy' for U.S. pulp and paper mills

Rafferty, Hughes demand quicker, more effective response than to black liquor subsidy

THUNDER BAY – New Democrat MP John Rafferty (Thunder Bay – Rainy River) rose in the House of Commons to question the Harper government’s readiness to combat a new ‘super-subsidy’ for U.S. pulp and paper mills.

“This new U.S. subsidy will dwarf the black liquor regime,” Rafferty said.

“The Conservatives really botched Canada’s response to the previous round of US subsidies by delivering about $1 billion less than needed about a year too late, so we [New Democrats] are going to be on them early and often to develop a proactive response to this new super-subsidy.”

New Democrat Carol Hughes (Algoma-Manitoulin-Kapuskasing) has also vowed to make federal forestry assistance more effective and cites a local example of how the current federal response is failing to help struggling forestry towns.

“Domtar has gotten a huge amount of federal aid money because of its mill in Espanola, but they have said they are taking that money and investing it other mills to ramp up production and create jobs elsewhere,” Hughes said.

“If they are going to be getting money for local operations then that money has got to start into protecting local mills and jobs.”

Text of Rafferty’s question and the government’s response is below.

Mr. John Rafferty (Thunder Bay—Rainy River, NDP)

Mr. Speaker, the government's feeble response to the unfair black liquor subsidy for U.S. pulp and paper was too little, too late.

Now a U.S. Internal Revenue Service memo says that U.S. producers will be able to qualify for an amount equal to twice the amount of black liquor through a new loophole in the farm bill.

That means a new $25 billion super-subsidy.

What will the government do now before that new subsidy comes into effect to protect Canadian mills and to protect Canadian families and workers against these unfair and unjustifiable U.S. trade practices?

Hon. Lisa Raitt (Minister of Natural Resources, CPC):

Mr. Speaker, I would like to thank the hon. member for his question.

Indeed the government did act quickly in response to concerns from industry with respect to the black liquor issue.

We responded with a $1 billion pulp and paper green transformation program.

We are keeping very close tabs on what is happening in the United States.

I have had conversations with Secretary Chu on the matter, and our officials are engaged with the United States at all levels.

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