Thank you very much, Chair. It's a pleasure and an honour to appear before your committee today.
As with almost every industry in Canada, operations in Ontario's forest sector stalled at the outset of the pandemic, due to widespread uncertainties in the early days.
Our government responded quickly. We were one of the first jurisdictions to include forest product producers on the list of essential workplaces. The essential status was justified and demonstrated by the surging demand for Ontario's forest products being needed from everything from hygiene to packaging for food to medical supplies. And of course, Ontario's forest products fed demand from our other key industries, like construction and the housing sector. Healthy demand levels meant that forest companies were able to overcome the initial lag very quickly, pushing themselves towards full capacity despite the operating challenges presented by the pandemic.
To offset the financial impact of COVID-19, Ontario implemented several measures to help the forest sector get back on its feet.
We expedited the implementation of this year's provincial forest access roads funding program to allow for infrastructure expenses to be reimbursed months sooner than normal. This helped forest companies cope with cash flow concerns.
We announced a six-month deferral of crown stumpage fees for the very same reason.
We made $3.5 million in funding available to forest companies to help them put protective measures in place for tree-planting workers, to keep workers and communities safe from COVID-19 and to ensure planning of this sustainable, renewable resource could be carried out last spring.
In addition, we are currently working with Natural Resources Canada to finalize and launch the $5.3 million forest sector safety measures fund, which will assist Ontario's small and medium-sized forest sector companies with the additional cost of putting COVID-19 protective measures in place.
In May, I convened an advisory committee made up of forest industry leaders to provide insight on how the pandemic was affecting their operations. Through the work of this committee, my government heard several suggestions to help the sector. Their number one suggestion was to finalize and release our forest sector strategy. In August, we launched our strategy after two years of development and consultation.
“Sustainable Growth: Ontario's Forest Sector Strategy” has a sweeping, 10-year horizon that will help the forest sector reach its full potential, especially as we work towards recovery from the pandemic. The strategy is intended to promote economic growth and development, but it's also aimed at protecting our forests to make sure they're there for future generations. This is a whole-of-government plan. Almost half the ministries in our government will undertake actions in support of the strategy.
To achieve its objectives, our forest sector strategy has four pillars: promoting stewardship and sustainability; putting more wood to work; improving our cost competitiveness; and fostering innovation, markets and talent.
We're working to promote innovative uses for Ontario's wood resources so companies can tap into growing international markets for the products we produce today, and those we will produce 10 years from now. A good example of this innovation is the growing field of mass timber construction, where we believe that Ontario can establish itself as a global leader. I applaud Natural Resources Canada for making investments in advancing the use of wood in building and bridge infrastructure. This initiative aligns perfectly with our efforts to promote mass timber construction.
We're also taking action to increase the use of sustainable and renewable biochemicals and biofuels in Ontario. This innovative use of forest products represents a tremendous opportunity to diversify the sector even further. We don't want to miss this opportunity. We look to the federal clean fuel standard to recognize Ontario as a leader in the sustainability of all forest products, including biofuels.
And while on the subject of Ontario's leadership in sustainability, I would like to point out that Ontario, like the federal government and other jurisdictions in our country, is fully committed to sustainably manage its forest and its inhabitants. We might go about it in different ways, but we follow a scientifically based policy framework that is designed to meet the conditions and circumstances of our province. When there are differences in approach, it is important that we have mutual respect and remember that Canada is world renowned for its sustainable practices, and Ontario has contributed to this reputation. If the merits of the province's scientifically based approach are not recognized, we are concerned that the market will be confused about the sustainability of our forests and forest products.
On a more positive note, thanks to cutting-edge engineering, modern bioheat systems are as efficient as fossil fuel and electrically based heating systems. This provides another heating option for rural, northern and indigenous communities that currently depend on fossil fuels for heat.
As we look ahead to what's required for recovery, my ministry encourages Natural Resources Canada to renew its commitments to invest in valuable federal programs like Green Construction through Wood. These programs have a proven track record of promoting innovation in the forest sector and helping to expand the market for Ontario's forest products while supporting job creation and economic growth.
Finally, I would like to say a few words about our ongoing trade dispute with the United States over softwood lumber.
Recently, as a result of an administrative review, the duty rates for most of Ontario's mills were significantly reduced, which is positive news, but we still feel the duties are unfair and we appreciate the federal government's ongoing efforts to fight against these unwarranted trade barriers.
I'm grateful for this opportunity to address the standing committee. The forest industry, one of Canada's most renewable and sustainable economic sectors, will be needed now more than ever to support economic recovery from this crisis.
Thank you.