Madam Speaker, I would like to thank my colleague, the member for Lévis—Bellechasse, for sharing his time with me.
The current economic situation and its impacts upon our nation are well-known. Our government has taken a number of short-term and long-term actions and investments to support the forestry sector through tough economic times and, more important, to help communities and workers who depend on the forestry industry.
In the short-term, we provided a total of $2 billion to support communities facing transition and those affected by the economic downturn. The $1 billion community development trust announced in 2007 and the $1 billion community adjustment fund announced in the economic action plan provide support to create jobs and maintain employment in affected communities, such as the forest-dependent communities.
I had a great experience last summer where I made an announcement of the community adjustment fund in Grand Forks in the southern interior of British Columbia. That is a community that lost its mills and was more than happy to see that investment in its community.
In addition, we have taken measures to secure a more sustainable forestry industry by supporting forestry industries develop new products, processes, and take advantage of emerging opportunities in the international marketplace. Building on the $127.5 million forestry industry long-term competitiveness initiative announced in 2007, Canada's economic action plan provides $170 million to support the transformation of Canada's forestry sector.
However, to fully take advantage of emerging opportunities, Canadian forestry companies need to have access to credit. Through Canada's economic action plan, the government has taken bold and unprecedented measures to improve access to credit for Canadians and Canadian businesses, as we work closely together through these challenging times.
Access to credit is key for all businesses and sectors of the economy. This is especially the case in industries that are capital-intensive and export-oriented, such as the forestry and the mining sectors.
A key measure taken in the economic action plan of 2009 to address issues in credit markets was to provide Export Development Canada with more financial flexibility to support businesses during the current economic downturn. Export Development Canada has working relationships with more than 90% of the Canadian forestry industry and has new flexibility for firms in the forestry sector and across the economy to address financing gaps in the credit markets.
In 2008, EDC provided financial services with a total value of $85.8 billion to over 8,300 Canadians businesses. Forestry industries received serviced worth $14 billion.
During the first eight months of this year, EDC provided an additional $50.84 billion to businesses in Canada, more than $9.6 billion of which went to forestry industries across Canada. Forestry industry clients have grown from being less than 7% of EDC's total portfolio, in 2008, to being nearly 20% now in 2009.
Finally, the Business Development Bank of Canada provided support, over the same period, to more than 1,100 small and medium-sized businesses in Canada operating in the forestry sector.
We have also taken a number other measures in the economic action plan, including investments in infrastructure that will benefit the forestry industry across Canada.
For example, the economic action plan provides $4 billion in new funding for local and regional projects; $2 billion for urgently needed repairs to our universities and colleges; and $1 billion for a green infrastructure fund to support projects such as sustainable energy.
This is in addition to the $33 billion for longer-term projects our government has already committed to under the building Canada fund.
The new home renovation tax credit is also good for the forestry sector as it provides eligibility for up to $1,300 in tax relief for Canadians undertaking home renovations. Each time Canadians undertake a home renovation project, they are helping to create jobs in construction and building supplies in their communities.
In fact, the economic action plan provides as much as $7.8 billion to help build high-quality housing and to promote construction in home renovation, two areas that will directly help stimulate demand for Canadian wood products.
To provide economic opportunities to first nation communities, our plan provides $400 million over the next two years to support on-reserve housing dedicated to new social housing projects, to remediate existing social housing stock and complement housing activities.
Given the importance of wood in construction and renovation, these actions will stimulate additional domestic demand, perhaps more than one billion board feet of lumber and hundreds of thousands of cubic metres of wood panels for Canadian wood and wood products.
Through these measures, Canada will mitigate the effects of the global economic downturn on business, workers and communities. At the same time, measures in the economic action plan lay a strong foundation for our forestry products and mining sectors, and the communities that depend on them to emerge from this period of economic turmoil more prosperous and sustainable than ever.
Despite global economic turbulence, Canada's resource industries continue to make significant contributions to our economy. Given their importance to Canada's wealth and Canadians' well-being, the economic action plan provides additional help specifically to encourage industry to upgrade and retool its equipment. Through the extension of the accelerated capital cost allowance until the year 2011, we continue to improve Canada's tax advantage in order to help attract investments in the forestry industry, as well as other resource and manufacturing sectors.
We also intend to permanently eliminate tariffs on a range of machinery and equipment. This measure is expected to save Canadian industry, including the forestry sector, about $440 million over the next five years.
Our government is determined to help forestry communities through difficult times while enabling the forestry sector to renew itself and lay the foundations for a more prosperous future. This is why the economic action plan provides $8.3 billion in Canada's skills and transition strategy to help Canadian workers and their families in the forestry sector and across the economy in a variety of ways: by strengthening benefits, by enhancing the availability of training, and by keeping employment insurance rates low for 2009-10.
In conclusion, all members know that today's economic challenges are significant. Even before the global recession, Canada's forestry sector was in a difficult period of transition and our government was responding.
Many of our forestry sector initiatives began well before the current economic downturn. We can be confident that our forestry sector will be well equipped to lead as competitors as the world emerges from this recession and the measures included in Canada's economic action plan will help support and advance Canada's recovery.