BOREAL AGREEMENT MEDIA COVERAGE

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The report, which includes a poll that suggests Canadians believe that the industry should receive government funding to become more environmentally friendly, is being released today as an industry association begins its annual meeting in Montreal and in the wake of the federal budget that provides $170 million for unspecified investments in the forestry sector.

"There's no reason Canada's troubled pulp and paper industry can't take inspiration from the auto sector and start reinventing by producing a greener product," said Nicole Rycroft, executive director of the non-profit outfit that promotes forest-friendly practices.

"The world's biggest publishers tell us time and time again they want more environmentally sound paper and more recycled paper. Why can't Canada be the one to supply it?"

About 600 magazines, newspaper, book publishers and printers in Canada have shifted to greener paper procurement policies in the last decade, she said.

To supply those companies with the papers they want, an additional 550,000 tonnes of eco-paper is needed - a contract worth about $560 million.

But there are no mills in Canada that can now fill that need, she said.

"The Canadian industry is struggling behind the market," said Rycroft, who contends the industry still thinks of green pulp and paper as either a niche product or something that should command a premium.

While smaller players such as Cascades Inc. have moved toward that market, "there is a big gap between the leadership that has been taken (by industry and government) and the opportunity that exists," she said.

A project that would have improved Canada's rate of recycled-content paper has been sideswiped by the current economic and industry downturn.

Kruger Inc. was to build - with provincial aid - a $200-million deinking plant at its Trois Rivi�res mill. It has been put on hold indefinitely, a company spokesperson said yesterday.

It would have made Kruger a North American leader in the manufacture of publication papers with high recycled content.

Markets Initiative's report calls for more investment, along with market and policy initiatives, to improve waste collection and increase deinking facilities. It also recommends prioritizing investment in commercial-scale agricultural residue pulping in a bid to diversify and lessen dependence on intact forests.

A Pollara poll of 2,500 Canadians conducted last November found 82 per cent of them agreed that businesses have the responsibility to show leadership on both the environmental and economic fronts, the report said.

A majority of 1,703 respondents said public funds should be used to help newspapers, books and magazines transition to greener paper.

lmoore@thegazette.canwest.com