Municipal group urges province to bolster forestry support
Kap Paper announced in September it would shut down the mill, putting 300 people out of work.
SEATTLE (Scrap Monster): A municipal group representing communities across northeastern Ontario is urging the province to continue its support for the region’s forestry sector.
In a news release, the Federation of Northern Ontario Municipalities (FONOM) is calling for a “renewed provincial partnership” to help keep the industry afloat, which the organization calls “one of Northern Ontario’s most significant economic engines.”
“Our message is straightforward,” Dave Plourde, president of FONOM and mayor of Kapusasing, said in the release.
“When Ontario invests in the North, the entire province benefits. We are asking the government to build on the progress already made by continuing to work with communities, industry, and workers to secure long-term solutions that will keep Northern Ontario strong.”
FONOM pointed to the $60 million the province has provided since 2023 to keep Kap Paper going, including a $16.8-million repayable loan announced in October.
The federal government has additionally pitched in, providing $10 million through FedNor last October.
At that time, Terry Skiffington, Kap Paper’s CEO, said talks were also ongoing with the feds about how the mill could tap into the $5-billion federal Strategic Response Fund.
FONOM now wants the province to continue its support, noting the $320 million the mill generates annually in regional economic activity, along with the $40 million in taxes, fees and other revenues that go to the province.
“FONOM sincerely thanks the Government of Ontario for the support it has provided to date,” Plourde said.
“That investment has paid real dividends for the province, helping sustain thousands of good-paying jobs, strengthening municipal tax bases, and generating hundreds of millions of dollars in economic activity each year.
“It’s a clear example of how a strategic provincial partnership can deliver measurable returns.”
Kap Paper announced in September it would shut down the mill, putting 300 people out of work.
The decision came after years and months of discussions with governments and partners did not yield a viable solution.
Courtesy: www.timminstoday.com