Minister announces annual wood harvest levels

NLIS 2
April 17, 2006
(Natural Resources)

Natural Resources Minister Ed Byrne officially released today the annual wood harvest levels for the next five years for the island portion of the province and emphasized the importance of conservation and science in managing our forest resources.

"We must make decisions based on sound scientific advice," Minister Byrne said. "Harvesting must be sustainable to protect the industry and ensure it is able to continue to employ people and provide significant benefits to rural areas of our province into the future."

Government is legislatively required to undertake a wood supply analysis every five years. The setting of the annual allowable cut is a result of two-and-half years of forest resource analysis and consultation. Computerized wood supply modeling techniques are used to assist district managers in calculating the sustainable harvest levels. The figures released today represent the maximum amount of timber than can be harvested on the island between April 1, 2006 and March 31, 2010.

The amount of softwood timber that can be harvested over the next five years is roughly 11.6 million cubic metres, which breaks down to about 2.3 million cubic metres per year. This is a reduction of about 3.2 per cent from the previous annual allowable cut set back in 2001.

"Overall we are in good shape going into the future � we have a lot of volume, but we do have significant issues in certain districts that we will work with industry to attempt to offset this year," Minister Byrne said. "At the same time, we will work towards longer term mitigating initiatives for the continued health and growth of the industry."

A significant addition to the process this year is the calculation of harvest levels for hardwood. The focus in the past has always been on the newsprint and lumber industry, which relies on softwood. With the significant growth in producing more value-added products, it is important to ensure that the hardwood harvest is sustainable into the future. The total allowable cut for hardwood is 224,250 cubic metres over the next five years.

The new annual allowable cut is allocated to timber limits controlled by the Crown, Corner Brook Pulp and Paper Limited (CBPPL) and the Abitibi Consolidated Company of Canada (ACCC). The breakdown of the allocation is as follows:

Crown : Softwoods - 679,710 cubic meters       Hardwoods � 88,820 cubic meters
CBPPL: Softwoods - 1,021,100 cubic meters    Hardwoods - 99,410 cubic meters
ACCC : Softwoods - 610,620 cubic meters    Hardwoods - 36,020 cubic meters

The forest management districts most impacted by the reduction in the annual allowable cut are in the central region of the province in Districts 5, 8 and 9 (Gambo, Lewisporte and Springdale respectively). Commercial operators in District 5 will see their permit allocations reduced by 18 per cent, District 8 by 24 per cent and District 9 by 29 per cent.

As a result, government will reduce all commercial permits in those districts equally and work with the industry to try and offset the loss, including the building of access roads to reduce operating costs and provide greater access to additional harvestable fibre and classes of trees where allocations have not been reduced. Government will also work with the pulp and paper companies to arrange timber exchanges in areas where allocations will not be taken.

The volume of timber to be allocated over the next five years will provide a significant boost to the province�s economy between now and 2010. In recognition of the role the forestry industry plays in providing jobs and value to rural Newfoundland and Labrador, government is spending $2.3 million to support new program initiatives to preserve and sustain this vital resource. A further $4.6 million is carried over in related expenditures from 2005.

"The long-term wood supply for the province is bright as our management decisions of today will reward us with increasing volumes of timber in the future through prudent allocation of where we harvest timber and our aggressive silviculture program," Minister Byrne said.

Media contact: Tracy Barron, Communications, (709) 729-5285, 690-1703

BACKGROUNDERS
Wood Supply Analysis 2006-2010
Annual Allowable Cut

The province developed its first 20-Year Forest Development Plan in 1984 and initiated a planning cycle where plans are generated every five years. In 1989, the first formalized Wood Supply Analysis was undertaken and this analysis is now a legislative requirement every five years. This allows for the tracking of changes in the forest land base, the implement of new management strategies and the opportunity to address differences detected in forest growth rates compared to previous forecasts.

The volume of timber that can be harvested each year on a sustainable level is determined by the Wood Supply Analysis and is referred to as the Annual Allowable Cut. The Annual Allowable Cut defines the maximum annual rate at which timber can be harvested in the province on a sustainable level into the future.

The position of the Government of Newfoundland and Labrador is that timber harvesting be conducted in a sustainable manner that does not exceed the established Annual Allowable Cuts. The Forestry Act requires the province to establish an Annual Allowable Cut for each Forest Management District in the province.

The new total provincial Annual Allowable Cut has two components � the maximum softwood and hardwood species that can be harvested for the period April 1, 2006 to March 31, 2010. The 2006 softwood allocation has been set at 2,311,430 cubic meters, while the hardwood allocation has been set at 224,250 cubic meters.

The 2006 softwood allocation represents a reduction of 3.2 per cent compared to 2001.

The figures for softwood and hardwoods incorporate both Class I and Class III timber. Class I represents good economic harvesting opportunities and consists of easy to access, mature forest stands. Class III timber represents less than optimal economic harvesting opportunities and are comprised of scattered and isolated stands that are more difficult to access.

The calculation of the new AAC was completed using the computer software model referred to as �Woodstock�. This model is used by seven other provinces and presents the best model for wood supply analysis of the forests on the island. The �Woodstock� model allows for forest managers to identify with greater accuracy new land alienations and to recognize new environmental and wildlife values and objectives.

Forestry Budget Initiatives 2006

The forestry industry provides the most jobs and the most return to rural Newfoundland and Labrador than any other industry. To preserve and sustain this vital resource, government is spending $2.3 million in Budget 2006 to support new program initiatives to advance service delivery. A further $4.6 million is carried over in related expenditures from 2005.

An additional $800,000 has been allocated to enhance the forest inventory database upon which future forest management and conservation decisions are made.

The renewable nature of the forest resource means trees must be replaced through an effective silviculture program. Government is providing an additional $1 million this year for silviculture. This will increase the total number of tree seedlings planted in the province from 11 to 15 million. This is the first increase in silviculture funding in recent history. It is part of a three-year plan to increase the total funding for the silviculture program to $10.3 million.

An economical and planned approach to access the forest resource is linked to an effective resource roads program. In this year�s budget, government is maintaining the total resource road construction budget at $3.5 million. Forest resource roads are required to access tree stands in difficult areas and optimize the sustainable use of the resource. Government�s investment in the construction of these roads helps alleviate the prohibitive costs for harvesters in accessing these areas.

The vast majority of the wood supply is used as a source of fibre for paper-making activities. Government is committed to exploring other uses for the resource in partnership with the overall industry. This year, government�s has renewed its commitment to contribute $300,000 to a program that sees the government, the lumber industry and the value-added wood products sector working together to identify and pursue new markets. This is the second year of a four-year program to move this part of our forest industry forward.

2006 04 17 11:55 a.m.

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