Mr. Speaker, during question period on October 5, the hon. member for Prince Albert linked the recent announcement of the closure of the Weyerhaeuser pulp and paper mill in Prince Albert, Saskatchewan, to the softwood lumber dispute with the United States.
Since the hon. member has raised the softwood lumber issue, allow me to speak to the issue now.
The Government of Canada is exploring every possible option to resolve this dispute, including litigation, high level political intervention and advocacy. To do this, we are working closely with industry, provincial governments and other stakeholders. We expect the United States to live up to the NAFTA obligations, revoke the duty orders and refund the duties. We will continue to defend the interests of Canadian industry and workers in our WTO and NAFTA litigation.
The Canadian forest products industry is one of Canada's most important sectors. Approximately 300 communities across Canada and hundreds of thousands of workers depend on it. The government has a sensitivity to the impact of the lumber dispute and, as a result, has made available over $400 million in federal assistance to forestry workers, communities and industries.
However, as was stated in the House when this question was first raised, the Weyerhaeuser mill in Prince Albert is a pulp and paper mill. Consequently, it is not directly involved in the softwood lumber issue.
Worldwide, the pulp and paper industry has been rapidly changing in recent years. New technologies have increased optimal mill size. New low cost sources of wood fibre have developed offshore and begun exporting to Canada's traditional markets. North American markets for paper products are not as strong as they once were. As a result, the North American pulp and paper industry is in the process of rationalizing its capacity.
Given these and other factors, Weyerhaeuser made the business decision to close the Prince Albert mill, despite the company's significant investments to upgrade and modernize.
The federal government is concerned about this decision and the potential impact on the 690 workers and the hundreds of additional indirect workers and their families. The Prince Albert region is heavily dependent upon the forest industry and the Weyerhaeuser pulp and paper mill is the region's largest employer.
Prince Albert is the major regional centre for northern Saskatchewan and serves a number of smaller communities. First nations play an important role, both in the forest industry and the regional economy, and rely on Prince Albert for a number of essential services. It is important to the region as a whole that Prince Albert remain a viable, vibrant economy.
We view as very positive Weyerhaeuser's plans to keep the pulp and paper mill operating through the coming winter to ensure that the cold weather does not damage the equipment. The company says it plans to explore all viable options, including identifying possible purchasers.
The province of Saskatchewan has a significant forest resource and is hopeful that investors and new forest industries can be attracted to this region. The federal government has been contributing $4.5 million over the past years, funds which have been matched by the province, to support the Saskatchewan forest industry.