Manitoba Wildlands  
Manitoba Corporate Welfare for Tembec 20 December 10

forest In her 2010 Report to the Legislative Assembly - Performance Audits Auditor General of Manitoba, Carol Bellringer criticizes Manitoba's allocation of $3 million in federaleco-trust funding to Tembec. The eco-trust funding was provided to provincial governments by the Canadian federal government to fund initiatives that reduce greenhouse gas (GHG) emissions. Manitoba received $53.8 million in funding through the eco-trust program intended to support projects that reduce GHG emissions.

In 2001 Tembec upgraded it's Pine Falls operations, with a resulting decrease in coal use and correspondingly emissions. However it was not until 2008 that the $3 million was given to Tembec, so the funding provided no net reductions in GHG emissions.

As Bellringer explains, contrary to government spin, this funding was not meant to reduce emissions, "...[the] case for this funding was built primarily on economic reasons... in response to concerns over the pending closure of the [Pine Falls, MB] plant." With the mill closed and no net reductions in emissions, Manitobans gained little from this funding.

Nor was this the only funding provided to Tembec before the mill closed down in September 2009. When the Manitoba Government announced an end to logging in provincial parks in December 2008 it also announced: "[a] total of just over $3 million in one-time financial compensation will be paid to Tembec and Tolko to reflect the cost of moving operations out of parks." None of the parklands where logging stopped have restoration plans or new regulations to protect these zones.

It remains unclear whether Tembec was obligated to pay any of this government funding back upon closure.

Even though the Tembec plant was closed Manitoba Conservation moved forward with review of a new twenty-year (2009-2028) Environmental Impact Statement (EIS) and Forest Stewardship Plan (FSP) in January 2010. Manitoba Wildlands submitted comments on the proposed EIS and FSP.

View December 2010 Office of the Auditor General of Manitoba report (PDF)
View January 11, 2010 Manitoba Wildlands comments (PDF)
View Tembec online public registry file #4572
View November 21, 2008 Manitoba Government news release
View March 3, 2007 Joint Canada/Manitoba press release
View Manitoba Wildlands Manitoba Forest Companies & Tenure page
Source: Office of the Auditor General of Manitoba
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