Minister of Small Business, Export Promotion and International Trade appearance before the Special Committee on the COVID-19 Pandemic
2020-05-13
Support for Canadian Forestry Sector
Issue
A Quebec MP is raising concerns that EDC is contributing to the financing of the Coasstal Gaslink project in the absence of support for the forestry sector.
Responsive Lines
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- EDC operates at arm's length from the Government. The corporation has made the decision to provide a loan toward the construction of the Coastal Gaslink Project independently after a review of its environmental and social impact.
- The Canadian Oil and Gas sector is facing some unprecedented challenges. The construction of infrastructures to support exports will be of great help to this sector.
- The Government has put in place a number of support programs for businesses of all sizes. These programs can be used by companies in the forestry sector which are facing difficult circumstances.
Releasable Background
On May 13, 2020, Le Quotidien (Saguenay, Qc) published an article quoting the reaction of the local MP (Mario Simard - BQ) related to the decision by EDC to provide a loan to TC Energy toward the financing of the construction of the Coastal Gaslink project in British Columbia. Other financial institutions are contributing to this project. The EDC loan is within the $200 million - $500 million range (For confidentiality reasons, EDC is not able disclose the exact amount of the loan).
The Government has implemented a number of support programs available to companies in all industrial sectors, including the forestry sector. Since the outbreak of the Covid -19, EDC and BDC have been collaborating with financial institutions on the Canadian Emergency Business Account and have provided loans and guarantees to affected companies to help them surmount liquidity shortages and maintain operations. EDC has also established a program adapted to mid-sized enterprises and on May 11, 2020, the Government announced the Large Employer Emergency Financing Facility making bridge loans available to larger companies. The Government has also announced a wage subsidy program which will allow employers to maintain employment during the crisis. All these programs are available to enterprises in the forestry sector.
Canada allocated in Budget 2019 an additional $251.3 million over three years to some existing support programs for the forestry sector that were funded by the $867 million Softwood Lumber Action Plan in June 2017.
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