NEWS RELEASE CAROL HUGHES, MP
************************* Hughes demands action to save pulp and paper from unfair U.S. subsidy OTTAWA - New Democrat MP Carol Hughes [has] demanded the government do something to stop the U.S. from using a loophole to subsidize their pulp and paper industry while ours, in towns like Espanola, are left at a competitive disadvantage.
“The U.S. government is about to provide a subsidy for a by-product of the pulp and paper manufacturing called black liquor [shown]," said Hughes in [Friday's] Question Period. “If this massive subsidy goes through then it will provide an unfair advantage for US pulp and papers mills and hurt ours.”
The practice of using black liquor - a by product of the pulp process - as a boiler fuel is common throughout the industry.
By mixing this with diesel fuel, U.S. pulp mills are eligible for a subsidy that rewards industry for using alternative fuel mixes.
The irony is that instead of making the fuel for boilers cleaner, this process does the opposite.
The effect on Canadian producers is acute as it is estimated pulp mills will receive hundreds of millions of dollars in subsidies for this loop-hole that runs completely opposite the intended purpose of the fuel-mix subsidy.
“The people of Espanola are worried. The Domtar pulp and paper plant has been in the town for generations and is the biggest employer in the region,” said Hughes”
New Democrats have been critical of the Harper government’s efforts to help the forestry sector and see this as another opportunity for them to do so.
"It’s time for the government to stand up for this industry and tell the United States that we will not accept this loophole being used as a subsidy while our mills are on life support.”
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