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Harper expected to unveil forestry relief

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Date: Tuesday Jan. 8, 2008 8:06 PM ET

OTTAWA — Prime Minister Stephen Harper is poised to announce some long-awaited relief for workers in the struggling forestry industry.

Sources told The Canadian Press late Tuesday that Harper will make the announcement Thursday in New Brunswick, where hundreds of workers in the Maritime province have lost their jobs as the result of recent mill closures.

The announcement will come one day before Harper is to sit down to dinner with Canada's premiers to discuss ways the federal government can help soften the blow of the high dollar and soaring gas prices on export-driven industries.

Premiers are demanding that the federal government help ailing industries, calling for a mix of direct financial support and other programs, including retraining for older workers who have lost their jobs.

In something of a pre-emptive strike, Harper is expected to unveil Thursday millions for retraining of workers who've lost their jobs in the devastated forestry industry.

It's unclear if the program will also apply to workers in other ailing sectors, such as the auto industry.

However, federal officials say the prime minister is determined to fulfil a promise he made last month to take action in the new year, prior to the budget, to help "traditional industries that face serious challenges.'' At the time, Harper specifically mentioned the forestry industry and the manufacturing sector.

Harper's announcement is unlikely to mollify the premiers, who want the federal government to ante up untold billions in direct and indirect aid for industries that are struggling to survive.

"I know that the federal government remains in a very healthy financial position,'' Ontario Premier Dalton McGuinty said Tuesday.

"It's all about priorities. In a time of economic challenge, it's important for us to find a way to lend support, to help our industries transition and become more competitive and more productive.''

McGuinty said the federal government should forgo further tax cuts to provide financial support to struggling industries. He unveiled a $2.85-million provincial loan to aerospace manufacturer Heroux-Devtek in Kitchener, Ont., and suggested that's the kind of measure Ottawa should be taking as well.

"Just to cut taxes, fold your arms and stand aside and allow the forces of creative destruction to play themselves out is unacceptable,'' McGuinty said.

"What I'm saying to the federal government is, come to the table . . . You've got to do more than just cut taxes.''

McGuinty also intends to push Harper for equal treatment for jobless Ontarians, who receive $4,000 less per year than the average unemployed person elsewhere in the country.

Manitoba Premier Gary Doer said in an interview that he intends to push Ottawa for further investments in post-secondary education, skill development, training and lower-cost energy alternatives. He said there are also some tax measures Ottawa could take, in co-ordination with the provinces, to give relief to the manufacturing sector.

"I'm not asking for anything that I wouldn't be willing to invest in myself,'' he said. "If we're talking productivity and skill training, we're willing to step up as well.''

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