McGuinty Government Taking Next Step To Make Forest Industry More
Competitive
Transforming Ontario’s Forestry Sector
Ontario intends to introduce legislation later this year that would modernize its forest tenure and pricing system. This would help re-energize Ontario’s forest sector by creating new jobs and attracting investment while ensuring Ontario’s forests continue to be managed sustainably. This new proposed system, if passed, would establish two governance models for managing and harvesting wood from Ontario’s forests:
• Local Forest Management Corporations (LFMCs) would be government agencies that manage Crown forests and oversee the competitive sale of the timber in a given area
• Enhanced Shareholder Sustainable Forest Licenses would consist of a group of mills and/or harvesters that collectively form a new company to manage Crown forests under the Sustainable Forest License that is issued to them.
This would help make Ontario’s timber supply and prices more responsive to market demand, create new business opportunities for entrepreneurs and facilitate greater local and Aboriginal participation in the sector.
Transforming and revitalizing the forestry sector is part of the Open Ontario plan to create jobs and economic opportunities in Northern Ontario.
QUOTES
“This comprehensive overhaul of Ontario’s wood allocation system would help build a strong forest industry in today’s global economy. It would help create investment opportunities and
opportunities for jobs and economic prosperity.”
— Michael Gravelle, Minister of Northern Development, Mines and Forestry
“During consultations last fall, the government heard loud and clear that many Ontarians wanted change. Our approach contains many of their recommendations, including more involvement by local and Aboriginal communities as well as the separation of forest management operations from the mills where warranted. I am pleased that our government is
moving forward on tenure reform.”
— Linda Jeffrey, Minister of Natural Resources
“We want to thank Minister Gravelle for carefully considering our concerns regarding tenure and pricing reform. The proposed path forward is a positive development and provides much needed certainty for operating mills, while creating opportunities for new investment in
the sector. We look forward to working constructively with the Ontario government to implement and evaluate the various tenure systems that will evolve across the province over the next several years.”
— Jamie Lim, President and CEO, Ontario Forest Industries Association
QUICK FACTS
• Introducing legislation follows several months of consultation on the proposed framework released last April.
• Crown timber is currently harvested from nearly 40 Sustainable Forest Licenses spread across northern and eastern Ontario.
• Since 2004, the McGuinty government has committed to the largest-ever provincial investment in the forest industry in Canada by making $1.1 billion available through various past and present programs to assist
the forest sector.
LEARN MORE
Find out about Ontario’s forest tenure and licensing system
ontario.ca/forestry-news
Jamie Lim, President and CEO, Ontario Forest Industries Association “ It is important to start of by explaining The Ontario Forest Industries Association represents small family run organizations right up to the larger international companies. I am just pleased that
today’s announcement provides some positive steps forward and addresses the concerns from the original May announcement. The government supports the move from single entity ASFL to enhanced coop. We think this is a very brave step forward. Minister Gravelle is landing the plane on this one. We also support the completion of the wood supply process. We have 26 million cubic meters of industrial fiber to use sustainably. We need to get it working because when it works, people work and our communities work. That is what it’s all about. That is serving the Ontario public well when you are using the entire 26 million cubic meters well. We were very concerned with the uncertainty Local management Forest Corporations . Today we have heard the announcement that says we will take a modified measured approach over a 5 to 7 year period recognizing we have to do two pilot projects, look at the results and see if the method serves the public well- will it attract business. Our family operations that are 5th and 6th generation businesses need to know they have their wood supply for their banks information. Today’s announcement is truly a victory to the 60,000 people still working in the forest products industry in Ontario because they can go to bed felling a little more secure.”
“ We have gone through a dramatic 4 years of challenges and those challenges are not over. We need to see the market return and get housing starts back. It will happen and when it happens Ontario should want to ensure we have the right policies in place so we are in a
position to be the fiber basket for North America. We have some amazing opportunities with the building code change to use wood in mid rise building. That is jobs for Ontario. Our collective job is to make sure we put the right public policy in place to allow us to maximize
our opportunities.”
“ We need to put the wood back to work and get it allocated as soon a as possible. The smaller sized entrepreneurs need th allocations sooner than later. Just because we are not using the wood right now doesn't mean we should be shrunk. This is all about jobs.”
Minister Michael Gravelle
“ I see it as a opportunity to work in a different way and to see the wood supply is available for those that will utilize it and open it up to others.
Harold Wilson President of the Thunder Bay Chamber of Commerce
“ it is about maximizing the value of our resources in Ontario. I like the words balance and measure.”
