Feds announce $1.7B to help resource sector
Posted Apr 17, 2020 8:36 am.
Last Updated Apr 17, 2020 10:36 am.
OTTAWA – Prime Minister Justin Trudeau has announced the government will support work in the oil and gas sector by providing funding to help clean up “orphaned wells,” including in B.C., Alberta, Saskatchewan, and Newfoundland and Labrador.
The federal government will spend $1.7-billion on the effort, which is expected to employ thousands of workers, Trudeau said on Friday.
“Right now, workers and families are struggling because of things beyond their control,” he said. “Both the devastating effects of the pandemic and the price war driven by foreign interests are a challenge. As a result, companies have had to slow down or pause their operations, leaving too many people out of work.”
Prime Minister announcing help for Alberta's energy sector. $1.7-billion to clean up orphaned wells. Also more than 700-million in a pollution reduction fund that will help off shore operations (like in Newfoundland). Trudeau this should maintain 10,000 jobs #cdnpoli #COVID19
— Cormac Mac Sweeney (@cmaconthehill) April 17, 2020
He noted the move will benefit the environment, as well as the health of Canadians.
The inactive wells, Trudeau added, can be detrimental to both. “Think of the farmer who can’t grow anything on his land because of an abandoned well a few steps away from his home. Think of the small town or Indigenous community struggling with this issue that has been festering for years or even decades.”
Cleanup efforts are expected to start employing people immediately, the prime minister said, all while “helping companies avoid bankruptcy, and supporting our environmental targets.”
The government announced the investment will help maintain 5,200 jobs in Alberta alone.
A $750-million fund to cut methane emissions is also being set up.
“To create and maintain jobs through pollution-reduction efforts,” Trudeau explained. “This includes $75-million to help the offshore industry cut emissions in Newfoundland and Labrador. This fund will primarily provide repayable contributions to firms to make them more competitive, reduce waste and pollution, and most importantly protect jobs.”
The government estimates both initiatives will help maintain about 10,000 jobs nationally.
Meanwhile, Trudeau also announced more help for small businesses and their employees, saying the government would be providing regional development agencies as well as the Community Futures Network $962-million.
The Prime Minister also announces more than a billion dollars to help small businesses who don’t qualify for the other small biz supports announced. #cdnpoli #COVID19
— Cormac Mac Sweeney (@cmaconthehill) April 17, 2020
The funding will help businesses that don’t qualify for already-announced emergency response benefits amid the COVID-19 pandemic, Trudeau said, adding $270-million would be given to support innovators and startups that aren’t eligible for wage subsidy programs.
-With files from Dean Recksiedler
