February 22, 2000
(Forest Resources and Agrifoods)

TJF funding sustains employment in forestry sector

Forest Resources and Agrifoods Minister, Kevin Aylward, rejects a claim made by a recent article in the Ottawa Citizen which says silviculture projects funded in Newfoundland and Labrador under the federal government�s Transitional Jobs Fund should not have been eligible for funding according to program criteria.

"Silviculture and value added forest product initiatives funded by the Transitional Jobs Fund have created a number of meaningful employment opportunities in Newfoundland and Labrador, particularly in rural areas of the province where unemployment levels tend to be quite high," said Minister Aylward. "Not only does investing into forestry programs encourage new long term growth in the industry through the creation hundreds of jobs each year, it also provides a degree of stability to a number of communities whose viability is dependent on a healthy forest as well as a strong forest industry."

Application for silviculture funding under the Transitional Jobs Funds was done with the knowledge of MP�s, the Government of Newfoundland and Labrador, industry and local partners

who all agreed that this was a valuable project and consistent with the province�s 20 year Forestry Strategic Development Plan. Mr.Aylward said: "A key objective of the Transitional Jobs Fund is to create sustainable employment in areas of high unemployment. I am confident the jobs created through these silviculture and value added forest product initiatives have been successful in achieving this objective throughout many rural communities in this province and have laid the ground work for even more future employment opportunities."

The article in the Ottawa Citizen stems from a report by Consulting and Audit Canada, a federal agency, which claims silviculture projects in New Brunswick did not meet the criteria for the Transitional Jobs Fund because they did not create long term employment. At no point does the report refer to silviculture initiatives funded through the Transitional Jobs Fund in Newfoundland and Labrador. The report drew the conclusion that similar circumstances exist with respect to the program in this province.

Over the three year period of the TJF Forestry Program, 2123 jobs were created in the silviculture and secondary wood manufacturing industries creating greater than 20,000 person weeks of employment. The silviculture component of the program has provided excellent seasonal employment opportunities for hundreds of individuals in rural areas of the province. In addition, there were a number of spin-off opportunities which resulted from this silviculture work in the hauling, transporting and manufacturing of the salvaged wood fibre.

The, $1.25 million, value added forest products component of the program provided wage incentives for private companies in the secondary wood products manufacturing sector to expand operations and subsequently, create new long term jobs.

Media contact: Cynthia Layden-Barron, Communications, (709) 729-6183.

2000 02 22                                                                 2:25 p.m.