Over One Million Invested in Support of Northern Peninsula Commercial Harvesters

In response to commercial timber harvesting challenges on the Northern Peninsula, the Provincial Government will provide funding of approximately $1 million to offset costs associated with transporting pulpwood from the Northern Peninsula to other markets.

“We understand that the loss of markets for pulpwood is having detrimental effects on people throughout the province, particularly on the Northern Peninsula, and this funding will bridge the gap and enable commercial timber harvesters to return to work and begin harvesting,” said the Honourable Shawn Skinner, Minister of Natural Resources and Minister Responsible for Forestry and Agrifoods. “One-time funding will be provided to offset high transportation costs to other markets where demand exceeds existing supplies and will ensure the continued operation of commercial cutting operations on the Northern Peninsula.”

Funding will be provided to the Northern Peninsula Forest Resources Association and the Nordic Economic Development Corporation to support the transportation of materials to market. The majority of the pulpwood will be stored in Port au Choix from where it will be barged to Nova Scotia. Total volume of pulpwood to be harvested through this initiative is expected to be 25,000 cubic metres.

“This year has been a particularly difficult year for those involved in the forest industry on the Northern Peninsula and this move will put people back to work,” said Wallace Young, MHA for St. Barbe. “This investment will ensure that our skilled workforce has the opportunity to remain in the region, and reap the long-term benefits of our government’s investment into the forest industry on the Northern Peninsula.”

The forest industry provides significant employment for many individuals in Newfoundland and Labrador. The Provincial Government continues to work closely with industry to identify opportunities for growth and diversification.

“Funding will support a transition to secure employment for the 150 people employed directly and indirectly in the forest industry on the Northern Peninsula,” said Minister Skinner. “The pellet plant operated by Holson Forest Products in Roddickton is nearing completion at which time it will provide a valuable market for pulpwood. This investment will bridge the gap until the pellet plant in Roddickton is operational and can begin manufacturing wood pellets for commercial use.”

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2011 07 29                                                              4:05 p.m.