The Provincial Government today released the consultant�s report resulting from the comprehensive review of the forest industry on the island.

"We launched this review to assist in determining the best path forward for a sustainable forest industry given the changing global market for wood products and the impact that was having on our rural communities," said the Honourable Kathy Dunderdale, Minster of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "We worked closely with the consultant and addressed industry challenges as they were identified. We realized at the outset, as this study points out, that our industry has to evolve and diversify to survive in today�s market place."

The consultant was retained in 2007 to assess the state and structure of the industry and its ability to respond to changing global markets. Industry participants helped draft the Terms of Reference for the Newfoundland Forest Sector Strategy and a steering committee of industry representatives assisted the consulting firm in its work.

As a result of this ongoing process, the Provincial Government announced the $14-million Forest Industry Diversification Program in April. The initiatives being funded under this program will assist the industry to compete in the global economy and to identify and develop specific new products and market opportunities.

"We are developing a marketing plan to help our integrated sawmills gain access to new global markets, we are working with them on detailed business plans to improve their financial position and we are creating a local market for wood pellets with our residential wood pellet rebate program," said Minister Dunderdale. "We are working through the challenges currently facing this industry in consultation with those in the industry. The review has assisted us in this process and we will continue to work with industry on outstanding issues around the allocation of our forest resources, maintaining sustainable fibre supplies and land use issues."

The report addresses key issues around the allocation of timber, land tenure, land-use conflicts and effective land-use planning. It indicates that a sustainable licensing harvest allocation system is required to ensure manufacturers of forest products have access to raw material, and pulp mills can reliably predict future supply so the necessary capital investments can be made.

Many of the recommendations in the report have already been implemented, including bioenergy development, establishing an industry adjustment fund, investigation of potential international markets and increasing support for technical skills development through the College of the North Atlantic.

Halifax Global Inc. was awarded the contract for the forest sector review on the island. A similar review was completed in Labrador in 2006. The Newfoundland Forest Sector Strategy is available on the department�s web site at //www.nr.gov.nl.ca/nr/.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca
 

Budget 2008 contained $14 million for the Forest Industry Diversification Program to provide the infrastructure required by industry to produce new forest products and gain access to new markets.

Initiatives undertaken so far include:

Government is currently reviewing a number of options and proposals that could be funded under the Forest Industry Diversification Program.