Question Period Note: Resolute Forest Products - Baie-Comeau and Amos

There has been recent media coverage of comments made by Resolute Forest Products CEO Rémi Lalonde regarding the company’s Baie-Comeau and Amos newsprint facilities, noting that newsprint production is not an option anymore and that a re-opening of the facilities is not likely imminent. Mr. Lalonde indicated facilities would require significant investments (around $200M each), and the company is evaluating its options.
Operations at the facilities ceased in March and April 2020 due to the weak demand for newsprint observed over the past ten years, a situation exacerbated by the pandemic. Nearly 400 employees from both facilities have been laid off since that date.

• Our government recognizes the importance of maintaining a resilient and competitive forest sector in Canada.
• About 200,000 workers and over 300 communities across Canada rely on the forest sector for employment and long-term prosperity.
• We know that Canada’s forest sector was already facing significant challenges before the COVID-19 pandemic hit, and we know those challenges have been compounded by declining demand for some of its products and disruptions to its integrated supply chains.
• This is an unprecedented time as the world tries to contain the COVID-19 pandemic and limit its economic impact.
• That is why the Government of Canada announced a suite of measures, including a $107 billion aid package that provides $52 billion in direct support to Canadians and a financial aid package for businesses estimated at $95 billion.
• A number of these measures will serve to help the forest sector through these difficult times. For instance:
o Because more than 80 percent of forest companies have fewer than 20 employees and over 90 percent are considered small businesses, we estimate that 70 percent of companies would qualify for interest-free loans of up to $40,000 under the Canada Emergency Business Account.
o As of February 14, 2021, close to $1B has been approved through the Canada Emergency Wage Subsidy to support forest sector workers.
• All levels of government are working together to ensure Canadian workers and companies have the vital support they need, when and where they need it.
• As the world tries to contain the COVID-19 pandemic and limit its economic impact, we will continue to invest in our natural resource sector, positioning them - and Canada - to rebound even stronger once the crisis has passed.

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