Economy Premier will press Ottawa for 'our fair share' of federal money

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QUENTIN CASEY
TELEGRAPH-JOURNAL

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FREDERICTON - The recent federal bailout of Ontario's ailing auto sector must be followed by a similar package for New Brunswick's ravaged forestry industry, says Premier Shawn Graham.

"The forestry industry here is the equivalent to what the auto sector is in Ontario," said Graham in a year-end interview with the Telegraph-Journal.

"I recognize the importance of the federal government aiding the auto sector, but more needs to be done for our traditional resource sector here in New Brunswick," he continued.

"That's why it's imperative that we receive our fair share in the national (funding) program."

The Conservative Opposition, however, claims Graham is simply headed back to the federal money supply for another handout.

On Saturday, Prime Minister Stephen Harper said Canada will provide Ontario's struggling auto sector with $4 billion in emergency loans in a bid to avoid a "catastrophic" collapse of the industry. He urged the automakers to use the funding to get their businesses in order.

Harper previously said his government will present a major economic stimulus package that could result in a $30-billion deficit.

Those funds, likely to arrive in the Jan. 27 federal budget, are reportedly going to be targeted at public infrastructure projects and retraining workers who lose their jobs.

Graham said Ottawa is clearly opening its wallet in an effort to inject life into the national economy - and he wants New Brunswick to get its cut.

Last January, Harper made a stop at a mill in Tracyville - a hamlet near Fredericton - to announce his government's $1-billion Community Development Trust (CDT).

The fund, which will provide New Brunswick with $30 million over three years, is designed to help struggling single-industry towns and regions hit by numerous layoffs.

When he announced it, Harper said the money would help displaced workers, provide top-up money for early retirement packages, increase job training and boost economic development and infrastructure projects.

But Graham now says that money has not gone far enough.

"It was a far cry from what was needed to help kick-start New Brunswick's economy," he said. "That's why the federal government is now committed to doing more."

Graham said he will press the province's case at a Jan. 16 meeting between Harper and the provincial premiers in Ottawa. He pledged to be "aggressive and bullish" in his approach.

Yet Conservative Bruce Northrup contends that Ottawa has already done its share by providing the initial $30 million.

"Why go back to the water source again when Graham is promoting self-sufficiency. It just doesn't make sense," said the Kings East MLA.

"The provincial government has to step up to the plate. You can't just keep going back to Ottawa for more. The federal government has already done its job."

But Mark Arsenault, president of the New Brunswick Forest Products Association, says Graham's approach is on the mark.Still, Arsenault warns that government must be careful with how it presents forestry assistance on the east coast.

That's because the local softwood lumber industry isn't subsidized by government, so producers don't have to pay duty when shipping into the U.S.

"It's a special status that exists for the Atlantic Canadian region. We wouldn't want anything that would jeopardize that," Arsenault said

So, any assistance would have to be fairly general. A fund split between the auto, forestry, fishery and agriculture sectors would be fine, he said.

Ottawa could also offer indirect dollars in the form of fresh credit and accessible loans, Arsenault said. Given the current economic climate, many banks are not overly keen on loaning a forestry producer $500,000 for a new piece of machinery, he lamented.

"Without credit it's impossible to make new investments."

- with files from The Canadian Press