Canada invests in forest sector

A total of $127.5 million of Federak money is set to flow to Canada΄s forest sector.

"Our goal is a strong, competitive and sustainable forest products industry," Gary Lunn, Minister of Natural Resources said of the government΄s financial pledge. "We will work with provinces and industry to position Canada as a leader in new technologies, products and markets."

The money will be distributed via a multi-pronged approach. An investment of $122.5 million will go towards promoting innovation and investment in the forest sector, expanding market opportunities, and developing a national forest pest strategy. The remaining $5 million is earmarked for Human Resources and Social Development Canada to establish a Human Resource Forest Sector Council that will be tasked with identifying and addressing skills and adjustment issues in the industry.

The funding is part of the previously announced $400 million provided in the 2006 budget, money intended to create a stable future for the forest industry