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February 1, 1996
(Executive Council)


Initiatives announced to increase investment in silviculture and value-added forest products

Brian Tobin, Premier of Newfoundland and Labrador, announced today in Grand Falls-Windsor two initiatives directed at increasing the investment in silviculture and increasing the value-added forest products.

The first of these initiatives is a joint venture with industry on silviculture programming. The province has entered into five year cost- shared silviculture agreements with Abitibi-Price Inc. and Corner Brook Pulp and Paper Limited. In these agreements, the province and the companies have agreed to invest jointly in silviculture projects such as reforestation, plantation maintenance and thinnings. The companies have agreed to increase their contribution to 65 per cent from the previous level of 33 per cent in the late 1980s and early 1990s and 50 per cent in 1995. A total of $31.7 million will be invested by the companies and the provincial government over the next five year period in silviculture on company held forest lands. This will result in 5,000 hectares of reforestation and 25,000 hectares of thinnings over the five year period.

Mr. Tobin expressed his satisfaction in this long term investment and stated: "This resource building investment will provide stability to our wood supply as well as to the employment of silvicultural workers." These cost-shared silviculture agreements with the pulp and paper companies will employ approximately 250 silviculture workers over the five years. Both Abitibi-Price Inc. and Corner Brook Pulp and Paper Limited have also expressed their satisfaction with the continued funding of silviculture in the province.

Premier Tobin and federal Human Resources Minister Douglas Young also announced a second initiative directed at an incremental silviculture program and investment in value-added forest products, primarily in the sawmilling and the secondary manufacturing industry. Mr. Tobin stated that $10 million will be invested from the Job Transition Fund of the federal Department of Human Resources Development in the Forest Renewal Program which is directed at increasing the value- added component of the forestry sector. Mr. Young expressed his support by stating: "This is a vital investment that will improve the productivity of a key renewable resource and enhance the viability of the forest industry in Newfoundland and Labrador." This program will create 100 new jobs in silviculture and it is estimated that 90 to 150 direct and indirect jobs will be created over the medium to short term as the manufacturing of forest products expands.

Both initiatives announced today add new life to the industry which was predicting wood supply deficits of 500,000 cubic metres per year over the next 10 to 15 years. "The $41.7 million worth of initiatives announced here today will significantly address the major issue currently facing the forest sector which is the availability and security of short term wood supplies," said Mr. Tobin. He emphasized that the forest sector is very important to the Newfoundland and Labrador economy especially in the rural areas providing 10,000 direct and indirect jobs and supporting over 80 communities throughout the province. "Today's announcements will secure current jobs in the forest industry and create new ones in the process which is exactly what the new Liberal Government is all about," said the premier.

Contact: Cathy Coady, Director of Communications, Premier's Office, (709) 729-3570 or (709) 682-3599

1996 02 01 10:15 a.m.

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