The Forest Products Association of Canada (FPAC) today welcomed recommendations contained in the report tabled by the Standing Committee on Industry, Science and Technology to address the challenges confronting the Canadian manufacturing sector.
“The forest products industry welcomes the recommendations of  the committee which can play a important role in enabling industry to adjust to the higher Canadian dollar and an increasingly competitive global marketplace,” said Avrim Lazar, President and CEO of FPAC. “In particular, the proposals to enhance the Capital Cost Allowance (CCA) and improve the Scientific Research and Experimental Development (SR&ED) system of tax credits would have a real impact in terms of encouraging the capital investment and innovation needed for the forest industry to compete in the new global marketplace.”
“A competitive business climate that attracts capital investment is absolutely essential to the future of this and other Canadian manufacturing sectors.  While Canada is not a particularly high tax country by global standards, our tax on capital investment in manufacturing are among the highest in the world. ” continued Lazar. “The proposed changes to the CCA and SR&ED will help encourage long-term investment in capital renewal and innovation that will benefit Canadian communities.  It also creates a greater incentive for refunded softwood duties to be invested in Canada.”
Canada’s forest industry invests over $4 billion per year in capital expenditures in communities across Canada.  The forest products sector is also an important source of private sector innovation in the Canadian economy with R&D investments of over $500 million per year.
Canada’s forest products industry has faced a series of unprecedented market challenges over the last few years.  It is the most exposed of any Canadian industry to a high Canadian dollar and rapidly rising energy costs, as well as changing markets and emerging global competition.  The industry has responded to these challenges by adjusting quickly in cutting costs, investing in productivity enhancements, and looking for new market opportunities.  Like all Canadian manufacturers, the industry has had to make far – reaching and sometimes difficult changes to renew itself and improve its competitiveness in a very challenging environment.

FPAC is the voice of Canada’s wood, pulp and paper producers nationally and internationally in government, trade and environmental affairs.  Canada’s forest industry represents 3% of Canada’s GDP and exports over $40 billion of wood, pulp and paper annually.  The industry is one of Canada’s largest employers, operating in hundreds of Canadian communities and providing nearly 900,000 direct and indirect jobs across the country.


– 30 –

For more information, contact:

Isabelle Des Chênes
Director, Communications
Forest Products Association of Canada
(613) 563-1441 ext: 323 Mobile: (613) 853-2938