Update on Review of Forest Industry

I rise today to update the House on the work that has been completed so far on our review of the forest industry on the island. We have just concluded a series of important public consultations on how best to grow and diversify the forest industry on the island.

These consultations are part of our larger review and will feed into the Forest Industry Competitiveness and Strategy Study that a consultant will complete for us. The contract for that study will be awarded shortly.

The study will assess the current state and structure of the industry and provide a path forward based on the demands and opportunities of, and is responsive to, the global economy.

This study will assist in the formulation of policy that will guide the future development of our forest industry. A similar study has been completed for Labrador. The Strategic Plan to Develop Labrador�s Secondary Manufacturing and Value-Added Wood Products Industry was released earlier this month.

A key component of the island study is the public consultation process that my parliamentary assistant, the member for Trinity-Bay de Verde, lead on my behalf. Six consultations were held across the island, with opportunity as well for individuals to make written submissions.

The forest industry is particularly important to rural parts of the province, where this industry is based. This process enabled individuals and groups with an interest in the forest industry to express their views and opinions as we move forward with a plan for growing this industry.

We received presentations from individuals as well as representatives of integrated sawmillers, the pulp and paper industry, the Newfoundland and Labrador Lumber Producers� Association, the Canadian Institute of Forestry, economic development associations, logging contractors, forest sector unions, environmental and wildlife organizations and outfitting camp operators.

These presentations have provided us with a great deal of information from a great number of knowledgeable sources. Issues raised include the need to review current royalty rates, access to timber, wood scaling methods, value-added potential and an early retirement program for older loggers. The key theme, however, was on the value of the industry to rural Newfoundland and Labrador and the need for those closest to the resource to work together to overcome the challenges facing the sector.

All verbal and written submissions will be compiled into a report that will be provided to the consulting firm undertaking the Forest Industry Competitiveness and Strategy Study.

I look forward to sharing the results of this study with my colleagues and the people of the province once it is completed.

2006 11 23                               2:00 p.m.