Ottawa announces $100M rebate program for interprovincial steel transportation

Ottawa plans to cut costs for shipping steel between provinces and territories next year to help local producers hit the hardest by U.S. tariffs.

Transportation Minister Steven MacKinnon was in Hamilton Monday morning to announce a $100-million rebate plan to pay manufacturers back 50 per cent of the freight costs, for sending steel products across the country by ship or by train.

Joining him during the announcement was Hamilton West—Dundas—Ancaster MP John Paul Danko, Hamilton Mountain MP Lisa Hepfner, Hamilton Centre MP Aslam Rana, Burlington MP Karina Gould, Hamilton Mayor Andrea Horwath and ArcelorMittal Dofasco president and chief executive officer Ron Bedard.

The Commodities Sectoral Support Program launched Monday and will run for up to one year, or until available funding is fully allocated or exhausted.

“Steel is also a cornerstone of our economy and of our economic future — it contributes billions of dollars to our GDP, supports supply chains and our infrastructure from coast to coast to coast, while providing more than tens of thousands of jobs for Canadians,” said MacKinnon. “A strong steel sector is also essential to our national security, supplying the materials needed for defence equipment and critical energy infrastructure.”

The rebate is designed to encourage companies that use steel during their manufacturing process to use local suppliers over international sources.

“It really does show that these partnerships work, so when we work together we can really make a difference for people, and this is a time when people need governments to step up and say ‘yes, we can make a difference for all of us’,” said Horwath.

“I’m optimistic about the future of Hamilton, of industry here in Hamilton, and you know, industry and the economic potential for all of Canada, because all of the fundamentals that went into building the economy here in Hamilton, are still there,” said Danko.

Companies can apply for the rebates starting Monday, and a single recipient is eligible for a maximum cumulative rebate of $50 million.

Only eligible Canadian steel or steel products moving with a Canadian origin and destination will be eligible for the rebate.

Prime Minister Mark Carney announced the plan in November to work with rail companies to cut freight rates for shipping lumber and steel across the country.

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