A consultant has now begun its work as part of a comprehensive review of the forest industry for the island portion of the province.

"We are pleased the consultant is now engaged in the task of reviewing and evaluating all aspects of the forest industry on the island," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "We are confident the study will assist us in accurately assessing the current state and structure of the industry and provide us with the best path forward for a new sustainable forest industry."

The contract for the Forest Industry Competitiveness and Strategy Study was awarded to Halifax Global Inc. as a result of a competitive Request for Proposals process. Industry participants helped draft the Terms of Reference for the study and a steering committee of industry representatives is supporting the consultant in its work.

Government launched the review of the forest industry to help identify the challenges and opportunities in an industry that is economically vital to rural Newfoundland and Labrador. Part of the review process included public consultations, the results of which will be incorporated into the consultant�s review. The consultations were completed by the department last fall.

"We believe the industry has excellent potential to continue contributing to the rural economy, but faces global and local pressures, including excess global production," Minister Dunderdale said. "The study will help those who rely on this industry to identify the challenges and opportunities in their communities so they can plan their futures in forestry. It will also help us develop policies that create meaningful growth opportunities that are responsive to the realities of today�s global economy."

Halifax Global Inc. scored the highest of the proposals received and had the lowest bid. The contract is valued at roughly $277,000. This same consultant completed a similar forest sector study for Labrador last year. The review is expected to take six to eight months to complete, at which time government will be provided with the assessment and recommendations. Part of the consultant�s work will include meeting with individual forest industry participants.

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