Lumber and mill operations in small communities are being hurt by the tough economic conditions facing the industry. (CBC)

The $1-billion government trust intended to help Canada's stressed single-industry communities and their residents is almost invisible in Ontario forestry towns, but in B.C., the same program is providing a short term lifeline to centres facing economic disaster.

When the federal government announced the program in January, "we thought we're going to be able to tap in," said Michael Power, mayor of Greenstone, and Ontario municipality that includes seven towns north of Lake Superior.

"We can't see where this community trust has helped communities," he said.

But in B.C., the money is already working in the hard-hit northern communities of Mackenzie and Fort St. James. The program gave the towns $2 million each to create temporary jobs in the area while the local mills are idled.

Mackenzie has always been dependent on the forestry industry — its main tourist attraction is the world's largest tree crusher, a massive machine with spiked rollers that helped bring down the area's timber.

Located in the heart of the province's forestry industry, the town has lost 1,300 jobs in the past six months. Mayor Stephanie Killam said that the money from the trust is helping keep the community afloat while it waits for the forestry industry to gear back up.

Laid-off forestry workers can get eight- to 12-week contracts to clear brush, repair bridges or build trails. The contracts are designed to spread money out as widely as possible.

"It's obviously not a long-term solution," Killam said. "These are short-term jobs, but it does allow us to create some work and keep people in the community until the forestry industry rebounds."

Focus on individuals

While the trust is named for communities, it's been almost completely devoted to helping individuals, through retraining payments to up to $28,000 per person, and early retirements.

In British Columbia, a retirement transition fund worth $85.6 million has been rolled out as part of the province's trust project. Under the program, eligible forestry workers who are over 55 years old can apply for up to $60,000 in funding to assist them as they move out of the forestry industry — permanently.

According to Blair Lekstrom, the provincial minister of community development, the program has already received 1,000 applications in less than two months.

"If we can help transition somebody to retirement, chances are that can help them stay in their community," Lekstrom said. "And there's no question that's the most important thing."

But tuition assistance and retraining are the common element in every province's plan. B.C. has already implemented a tuition assistance program. Alberta and Saskatchewan have announced that "skills development" will be a top priority.

Ticket to ride

Retraining helps individuals adjust to the changing economic circumstances, but unless there are jobs in the community, it can become a ticket out of town.

Ontario, which like other provinces administers the federal money, is "helping individuals to upgrade their skills to move into a different industry," said Greg Flood, a spokeswoman for Ontario Minister of Training, Colleges and Universities John Milloy.

"Sometimes those industries are in other communities."

It feels like Ontario is saying: "We think your day is gone. Get out," Power said.

Unlike B.C., where the trust money spending is closely monitored, Ontario can't easily track the impact the money is having because of the way the province set up the program.

The federal government gave it to the provinces with minimal conditions — provinces are accountable to their legislatures and auditors general — and individual provinces were given authority to consult with local communities, plan the project and administer the funds.

The $119 million Ontario will get this year — nearly $360 million over the three-year life of the trust, the most of any province — goes into general revenue, and then is spent on various programs.

"I cannot give you a breakdown of the $119 million," said Flood. "It's used for an array of purposes."

B.C. tracking each dollar

In Victoria, provincial officials have taken a different approach. B.C's $129 million allotment has been put into one file, and each dollar is being tracked through the B.C. Ministry of Community Development.

"Our goal was to work with communities, identify their needs, and get this rolling quickly," Lekstrom said.

And with its clearly defined goals, standards and processes, "I think our province has done a good job," Mayor Killam of Mackenzie said.