November 24, 1999
(Forest Resources and Agrifoods)

The following statement was issued today by Kevin Aylward, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

I'd like to advise the House of Assembly of an initiative currently underway in the Department of Forest Resources and Agrifoods which could have substantial environmental and economic benefits for the province. My department is currently examining the feasibility of establishing a multi-million dollar de-inking facility in the province. This examination is being spearheaded by the Department of Forest Resources and Agrifoods with the pulp and paper industry.

A de-inking facility uses a process of taking waste paper which has its printing ink removed through a variety of processes. The result is a pulped product which can be utilized in the paper making process thereby reducing the pressure on our forest resources. The use of this technology is common throughout the world and there are currently 23 plants in Canada. Of the Canadian plants, four produce de-inked pulp exclusively for sale on the open market.

With continued timber shortages and more environmentally-driven legislation requiring recycled content in paper, it seems clear that de-inking capacity should be seriously considered. Some studies even suggest that there is a net social benefit in employment and environmental preservation related to recycling paper in a de-inking plant as opposed to incineration or other forms of disposal of waste paper.

While it is clear that the technology exists to create and utilize de-inking capacity, a number of important questions remain regarding the viability of de-inked pulp in Newfoundland and Labrador. Representatives of the Department of Forest Resources and Agrifoods and the pulp and paper industry are presently in England, researching and assessing de-inking facilities.

The objective of the visit is to begin addressing the following issues.

• The cost of a pulp mill capable of supplying any substantial quantity of de-inked pulp will be considerable. Some estimates are as high as $60 million - $100 million for construction and related expenses. A clearer understanding of these costs is needed.

• Confirmation that de-inking pulp can be produced in the province at a cost of which the province's three existing paper mills can afford.

• A clear understanding of current markets for waste paper to identify the supplies of waste paper required for the operation of the plant.

The allowable annual cut for the island is about 2,050,000 cubic meters. The present demand for fibre, on the island portion of the province, is about 2.5 million cubic meters. The wood supply issue is very important to the sustainability and growth of our forest industry. The Department of Forest Resources and Agrifoods will continue to work with the industry to find new and innovative ways to address the supply deficit. A de-inking plant would not only assist in addressing the current wood supply situation but could also provide for further growth in the forestry sector.

1999 11 24 2:35 p.m.