Question Period Note: Support for Canadian Forestry Sector

A Quebec MP is raising concerns that EDC is contributing to the financing of the Coastal Gaslink project in the absence of support for the forestry sector.

• The Government supports the modernization, resilience and long-term competitiveness of the Canadian forest sector towards a clean, low carbon economy

• In addition to $1.1 billion committed to exports under the Trade Diversification Strategy, the Government is now offering up to $251.3 million over three years to the forest sector to further promote innovation, growth and market diversification

• In the context of its response to Covid-19, the Government has put in place a number of support programs for businesses of all sizes. These programs can be used by companies in the forestry sector which are facing difficult circumstances.

On May 13, 2020, Le Quotidien (Saguenay, Qc) published an article quoting the reaction of the local MP (Mario Simard - BQ) related to the decision by EDC to provide a loan to TC Energy toward the financing of the construction of the Coastal Gaslink project in British Columbia. Other financial institutions are contributing to this project. The EDC loan is within the $200 million - $500 million range (For confidentiality reasons, EDC is not able disclose the exact amount of the loan).

The Government has implemented a number of support programs available to companies in all industrial sectors, including the forestry sector. Since the outbreak of the Covid -19, EDC and BDC have been collaborating with financial institutions on the Canadian Emergency Business Account and have provided loans and guarantees to affected companies to help them surmount liquidity shortages and maintain operations. EDC has also established a program adapted to mid-sized enterprises and on May 11, 2020, the Government announced the Large Employer Emergency Financing Facility making bridge loans available to larger companies. The Government has also announced a wage subsidy program which will allow employers to maintain employment during the crisis. All these programs are available to enterprises in the forestry sector.

Canada allocated in Budget 2019 an additional $251.3 million over three years to some existing support programs for the forestry sector that were funded by the $867 million Softwood Lumber Action Plan in June 2017.

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