the visible hand

it is the theory which decides what can be observed – einstein

Canadian lumber mills threatened by stronger loonie

Posted by ecoshift on May 31, 2007

[Canadian] Forest Products Industry Calls for Swift Government Response to Dollar’s Rise — CNW Telbec

OTTAWA, May 28 /CNW Telbec/ – The head of the Forest Products Association of Canada (FPAC) today called on the Government and Bank of Canada to take swift action to mitigate the damage that the rapid appreciation of the Canadian dollar is doing to Canada’s forest products industry. Over the past 5 years, the Canadian dollar has appreciated by 42% against its U. S. counterpart. This has placed enormous pressure on Canada’s forest products industry and the more than 300 communities from Newfoundland to British Columbia that depend on the industry for their economic well-being…”The unprecedented appreciation in the value of the Canadian dollar has served to exacerbate other challenges facing the sector, including the entry of low-cost, overseas rivals into global markets and the sharp downturn in the U. S. housing market,” said Avrim Lazar, President and CEO of FPAC. “In realizing its long track record of success in global markets, Canada’s forest products industry has proven time and again that it can overcome tough challenges. While the industry can adjust to a stronger currency, the unprecedented rate of appreciation in the dollar is causing severe dislocations in the industry and many of our host communities, particularly when combined with the other headwinds facing the forest sector.”

FPAC recently released, Industry at a Crossroads: Choosing the Path to Renewal, the report of the Forest Products Industry Competitiveness Task Force. The Task Force, …concluded that a changing global marketplace offers unprecedented opportunities as well as challenges to Canada’s forest products industry and that the industry can- and should-remain a vital part of Canada’s social and economic fabric for decades to come. Key to realizing the sector’s future potential is attracting the capital investment needed to renew Canadian production facilities, a process that the appreciation in the dollar is inhibiting. “Canada’s forest products industry has a strong productivity record, relative both to our U. S. competitors and the Canadian economy as a whole,” added Lazar. “But we need to attract more capital so we can do even better in the future. Not only does the uncontrolled appreciation of the dollar undermine our cost competitiveness, it also diminishes the attractiveness of investing in Canada.” While recognizing that many factors beyond Canadian control influence currency values, FPAC calls on Canadian monetary authorities to use what discretion they have to manage the appreciation of our currency and the impact it is having on large regions of the country. In addition, rapid action by governments in such areas as tax reform, mergers policy and a more competitive rail transport sector can also play an important role in enabling industry renewal and in assisting the forest sector to adapt to a higher Canadian dollar.

The full copy of the Report, Industry at a Crossroads: Choosing the Path to Renewal, is available from the FPAC website at http://www.fpac.ca.

Advertisements

4 Responses to “Canadian lumber mills threatened by stronger loonie”

  1. Eric V. Kirk said

    Loonie?

  2. a non mouse said

    the Canadian dollar coin has a loon on it. Thus, “loonie.”

    Cheez, don’t you Californians ever get out?

  3. ecoshift said

    Sorry Eric,

    Should have been capitalized…

  4. Eric V. Kirk said

    Still wouldn’t have recognized the term. Maybe if the sentence had ended in “aye?”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: