Thank you, Mr. Chair, and thank you, ladies and gentlemen, for allowing us this opportunity.
In Dryden we face some very serious challenges, due, in large part, to the downturn in the forestry sector. We know that both federally and provincially the governments fully appreciate the impact on resource-dependent communities like Dryden and know what we are undergoing. We're pleased to present Dryden's perspective and appreciate any direct or indirect assistance you may be able to provide that will return our community to prosperity.
We are, in fact, a very prosperous regional centre for business, health, and professional services. Our natural resources support our healthy, vibrant lifestyle and are the foundation of our very modern community. With your help, we hope to stay that way.
We're situated midway between Thunder Bay and Winnipeg. We have a population of approximately 8,200, with a trading area of approximately 35,000. If you should come by, I'll welcome you to our wilderness city.
We were, and are, resource dependent. Forestry probably accounts for about 70% of our local economy. The local mill has in fact, in the last five years, reduced employment from approximately 1,200-plus to, now, about 520 jobs. If you multiply that by four, in the ordinary family, that has a huge impact on direct and indirect business.
At the same time, the mill has invested about $250,000 in ongoing maintenance and upkeep. They are very good at looking at efficiencies that will help them stay in business and support our community.
The direct job loss, if it had occurred in this city, would result in the loss of about 67,000 quality jobs. You can imagine the impact. Many indirect forestry jobs have been lost as well. The situation is now commonplace in many forest-dependent communities in northwestern Ontario. As president of the Northwestern Ontario Municipal Association, we represent 35 communities, and I can tell you that almost every one of them is facing the same issue.
We had low unemployment. We were a prosperous business community. We had moderate growth and development. Dryden has, in fact, targeted economic diversification sectors, which include value-added forestry, mining, tourism, education, health services, and, especially, green energy.
The effect of these lost jobs is that now the average family's income is 16% lower than it is in the rest of Ontario, and there is a more than 50% increase in our Ontario Works caseload. We have a steady increase in demand at the local food banks. We have construction activity in the city that has just about dwindled away. It's probably the lowest it's been in 10 years.
If you watch the out-migration of our youth, it's very sad, and it's taking place throughout northwestern Ontario as employment opportunities disappear. Our city is being forced to increase taxes above the cost of living or to start dramatically cutting and reducing services. We need to do that to maintain and replace deteriorating, necessary infrastructure. As you know, we have applied many times through COMRIF intakes one, two, and three and have not been on the lucky end of the project. We are looking to replace our waste water treatment plant at a cost of about $21 million.
Right now, pulp and paper is undertaking an assessment review of taxation, which takes about $2 million out of Dryden's coffers, and that is going to have a huge impact on our community.
Policing costs are escalating, because of course the social fabric of our community is starting to come undone.
Businesses have shut down. We have vacancy signs around town, which we've never had in the past. Our response has been to develop a new strategic plan that focuses on economic growth. We've implemented the community improvement plan. We've put money into downtown revitalization, thanks to FedNor and OSTAR funding. We are, as I said, an active member in NOMA and the Ontario Forestry Coalition.
The city has worked closely with our mill and our forestry industry, and we continue to work with them to find answers and solutions. The forestry issues are a provincial jurisdiction. We know that, but restructuring, fibre supply, species at risk legislation, and stumpage continue to be an ongoing struggle for all of us.
Global impacts are beyond our control in Dryden. The Dryden Economic Development Corporation has been created to aggressively pursue economic diversification opportunities through business retention, expansion, and investment.
We applied for the NRCAN forest communities program, and we were not fortunate there either.
Right now we're in the process of pursuing the creation of the regional northern forest innovation centre to support value-added forestry research, development, and knowledge transfer from Finland, which is a Two Feathers project that my colleague has spoken about. We continue to work with our first nations neighbours on a number of projects and initiatives that will benefit Dryden.
We would especially like to see an increase in FedNor funding. We are working on developing projects and policies, photovoltaic, solar, and biomass energy generation, as well as our sustainable waterfront.
The opportunities for federal support of small resource-based communities is a very quick rollout of the recently announced community development trust and ensuring that its application is only to small, single resource-dependent communities.
We would like to see the release of funds for targeted infrastructure grant programs such as Building Canada. As we struggle for funding for our new waste water treatment plant, we need to know what's happening with that, how soon it's coming out, what it's going to do, and the criteria there.
We're looking for investment in the major transportation corridor. When highway money is allocated, the standard needs to be increased, so maybe you do shorter mileage, but you invest in a better road that's not falling apart six months later.
We need flexibility to tailor programming to the regional needs and, again, increased funding for FedNor.
With respect to temporary financial support, when there's a significant loss to the municipal tax base--between $8 million and $10 million--we need support for research, development, and training that will enable us to transition the commodity-based forestry sector and its workforce into value-added product development, and we need retraining and training support for citizens of the impacted communities that allows them to stay in their communities. We have people who are commuting across Canada, especially to the west and north, who have to phone their children to kiss them goodnight. That's not a good thing.
We need capital funding support for the creation of the northern forest innovation centre in Dryden that will serve regional needs and stabilize funding for the local, regional, and small airports across the northwest and across Canada.
There should be consideration for establishing greater federal employment presence in resource-dependent communities.
We also need an incentive for communities that partner on economic ventures with first nations in the private sector. And can you please accelerate the settlement of our neighbouring first nations land claims as a means that will stimulate northern and new economic activity and job creation?
The family impact of all of this is absolutely huge. It's destroying family life. That should not happen in a country like Canada. We're fortunate to live here. It's a great country. I ask you to support us.
Thank you for your time.