Ministerial Statement
by Rick Woodford
Minister of Forest Resources and Agrifoods

Tuesday, November 26, 2002


Mr. Speaker:

It is with extreme pleasure that I rise today to announce that government has agreed to a medium-term solution regarding 99-year non-renewable timber licences for Abitibi-Consolidated.

Government considered and explored various options and has agreed to harmonize the expiry dates of all of the company�s 38 non-renewable timber licences to 2010. This will result in the rolling back of the expiry dates of the �longer term� licences to 2010 and government extending Abitibi�s earlier expiration dates to the 2010 common expiry date.

The 2010 common expiry date is contingent upon the company maintaining its current production levels at the Grand Falls-Windsor mill, which includes a two machine operation and maintaining annual production levels at substantially the same levels as those in the preceding three years.

Mr. Speaker, I will be tabling legislation to seek amendments to the Forestry Act and to facilitate the 2010 common expiry date initiative.

Harmonizing the non-renewable licences� expiry dates to 2010 will allow ample time for continued research on future land tenure systems, as well as comprehensive public consultations and input from various government departments.

This agreement demonstrates government�s commitment to a sustainable forest industry and environmental integrity of our forest eco-system, as well as Abitibi�s commitment to its employees and the province.

Harmonizing the timber licences will, in the short to medium term, provide security for Abitibi mill workers and communities which depend on the industry. It will also remove short-term uncertainty for the company regarding fibre supply at the Grand Fall-Windsor mill.

It is also important to point out that in addition to providing security for Abitibi mill workers, the 2010 expiry date will provide stability to the sawmill sector, which is involved in co-operative arrangements with the company.

I would like to take this opportunity to commend my colleague, the Minister of Labour, for her diligent work in improving the labour relations climate between Abitibi Consolidated and the union. Government will continue to provide support, where required, to maintain sound labour relation practices at the mill in Grand Falls - Windsor.

Mr. Speaker, implementing a new land tenure agreement with Abitibi Consolidated that furthers its goals and objectives of modern and sustainable forest ecosystem management is a priority for government.

I wish to make it clear, however, that government is proud of the strides it has already made in delivering modern forest management. We have very progressive forestry legislation which requires licence holders to manage the resource on a sustainable basis using sound ecological principles.

Through implementation of responsible forest management practices we will ensure the future viability of our forest industries which are valued at over $800 million and employ more than 10,000 people annually.

Thank-you Mr. Speaker.

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