Kapuskasing mayor says hard work continues to keep Kap Paper open

Kapuskasing Mayor Dave Plourde says lobbying has prompted the federal government to discuss a solution for the forestry sector.

Kapuskasing Mayor Dave Plourde said Friday that, after much lobbying, the federal government said it is willing to sit down with the province to discuss a solution for the northeastern forest industry.

That means that Kap Paper remains open, at least for now. The company is facing a crisis because of tariffs imposed by the U.S. as part of the trade war launched by U.S. President Donald Trump.

“We’re working hard day and night to ensure that (closure) does not happen,” said Plourde.

Needs government help

Earlier this month, he said there was a chance Kap Paper would close if the federal government didn’t offer financial help. The province had already provided a $6-million loan extension to prevent Kap Paper’s closure on Sept. 10.

Plourde said he felt some relief to hear the federal government has agreed to sit down with the province.

“We’re waiting to hear next steps from the province,” he said.

News on Friday of a working group that includes the federal and provincial governments, as well as representatives from the industry, is also good news, he said.

“So I’m really looking forward to hearing next steps from the province and where we go from here,” said Plourde.

Good start

On Friday, Kevin Holland, Associate Minister of Forestry and Forest Products, announced $30 million for Ontario’s forestry sector to build and maintain more forestry access roads and provide immediate support for Ontario sawmills to find new markets for their woodchips.

Plourde said it’s a good start.

“It really doesn’t help if there’s no mill available here to receive chips,” he said.

“I applaud the government’s position on assisting the forest industry today, but, you know, from my perspective here in Kapuskasing, as mayor and a representative of the region, I think a lot more has to be done.”

‘We must build Canada strong’

A statement from the ministry responsible for FedNor to CTV News on Friday said the industry is facing serious challenges.

“To meet these challenges, we must build Canada strong and that starts right here at home. The forestry industry — and mills — are a cornerstone of life in northern Ontario — providing jobs, supporting families, and driving local economies.”

“FedNor is in contact with Kap Paper to ensure they have or are connected to the support they need. We will continue collaborating with our federal partners to ensure northerners have full access to the wide slate of programs and services offered by the Government of Canada.”

In a recent news release, Kap Paper indicated a couple of ways the federal government can help would be to provide proportional forestry funding to Ontario, equivalent to British Columbia and Quebec, and to address duties and tariffs that unfairly penalize Canadian producers.