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December 12, 1997
(Forest Resources and Agrifoods)


The following statement was issued today by Kevin Aylward, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

I would like to inform the Honourable Members of the House of Assembly of the substantial commitment of this government to the future of the forest and forest related industries in this province. This year, we will see a grand total of $16.15 million spent on silviculture-related work across Newfoundland and Labrador. This includes an additional $2.5 million dedicated this year by this government through the Employment Initiatives Fund.

Overall, this represents an important investment by the provincial government, the two pulp and paper companies, Abitibi-Price Consolidated Inc. and Corner Brook Pulp and Paper Ltd., and a combination of federal/provincial expenditure through the Transitional Jobs Fund.

As a result, this year, over 16,480 hectares of forest land were treated which represents 2,300 hectares more than 1996. This year alone over 7.5 million seedlings were planted.

This province has traditionally had a resource-based economy, which is primarily export oriented. The two pulp and paper companies, Corner Brook Pulp and Paper Ltd. and Abitibi-Consolidated, export shipments of newsprint valued in excess of $600 million. As well, we have a growing lumber industry which produces up to 70 million board feet per year.

Overall the pulp and paper and sawmilling industries presently make up over 20 per cent of the Manufacturing Gross Domestic Product. The forestry industries provide about 10,000 direct and indirect jobs, and, of these jobs, one-third would be related to the sawmilling industry.

However, earlier this year the announcement of the 20-Year Forest Management Plan confirmed a significant deficit in intermediate age timber in the forest on the Island. Forty-eight per cent of the forest is older than 60 years, and 40 per cent of the forest is younger than 40 years, and therefore, will not be harvestable for another 20 to 40 years. Therefore, in order to improve the current and future wood supply, the plan recommends strong forest management, especially investment in silviculture and forest protection measures.

We take this challenge seriously, and in total, the 1997 silviculture program sponsored over 200 projects throughout the province.

These projects provide meaningful work that contributes to the long-term viability of the over 80 rural Newfoundland communities that rely on various levels of forestry related activity. This year alone, We have created approximately 23,000 person weeks of employment - that means over 2,000 seasonal jobs in rural Newfoundland. Moreover, silviculture projects create immediate wealth through the simple fact that 70 per cent of each dollar spent is salary-related.

The level of investment and activity this year, is proof of this government's commitment to maximize employment and also to ensure a forest, and forest-based industry for the future of this province.

1997 12 12 4:40 p.m.

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