(Quebec) The Quebec Forest Industry Council (CIFQ) maintains that the increase in water royalties, provided for in Bill 20, will be a “price shock” for the pulp and paper sector.
According to its Chairman and CEO, Jean-François Samray, this increase will have an impact of 11.2 million from 2024 on this industry.
Mr. Samray is asking for a more gradual increase so that its impact on the competitiveness of pulp and paper mills is lessened, and to give them time to adapt.
He also claims that 90% of the water abstracted by industry is returned to the waterways after being filtered and therefore calls on the government to adopt an approach based on “actual water consumption”.
For industries that capture water without keeping it, Bill 20 will raise rates from $2.50 to $35 per million litres.
Mr. Samray also argues that unlike other businesses, the pulp and paper industry cannot pass the bill on to its customers to mitigate the costs associated with rising royalties, because prices are set by the market.
The Minister of the Environment, Benoit Charette, was not shaken by the arguments of the industry and ensures that the increase in royalties remains “justifiable”.
He recalled that the water used by pulp and paper mills, although it is not conserved, is still altered.
Consultations on Bill 20 which aims to increase water charges by 900% began on Tuesday.