Wood Available: Stage II Of Wood Supply Competitive Process - Put Our
Wood To Work
by Scott A. Sumner
www.thunderbaybusiness.ca
A bold announcement by Northern Development, Mines and Forestry Minister Michael Gravelle on November 26 will be sure to shake up the forestry industry in Ontario as we know it. The plan is to offer up some 11 million cubic meters of wood to new entrants in the forestry
industrial through a proposal process.
“ These are difficult times for the forestry industry with the increasing dollar and more competition from overseas. We are loosing investment opportunities to other jurisdictions. Lumber sales are down as is harvest levels. We estimate Ontario’s crown forest can sustainably produce 26 million cubic meters of wood annually and right now our forest companies are using less than half of that wood,” said Michael Gravelle. “ Today our plan is to put our wood to work. We need to take some tough decisions which may not please
everyone. Tough times call for bold measures. We are reviewing the current tendering system but can not wait for the completion of that review. Today I am announcing the start of a provincial wood supply process that will see proposals for unused wood on crown land. You
may consider this a stimulus program for the industry.”
“ The process will support new investment and green jobs in Ontario’s value added forest products. We want to ensure Ontarians get the maximum benefit from our crown forest. The status quo is not working and we have to get people back to work. This wood supply competition will promote investment.We will be offering 11 million cubic meters of wood, based on our calculation of the best 5 years usage of existing companies. These areas will not be available if not currently used. We want to offer opportunities with innovative new
companies with bold ideas for wood to succeed,” said Gravelle. “ We need to diversify and build an industry of top performers who are better able to weather downturn.This can include existing companies in Ontario as well as new entrants. We want to put our wood to work
as quickly as possible. This is good news for Aboriginal communities who are looking for new opportunities. We are working hard to bring back the competitiveness of Ontario forest community.”
The changes seemed to gain support from those in attendance at the news conference event “ We endorse the announcement. The minister have been listening to calls from the North for opportunities to share with the existing industry. We look forward to seeing the
detail of who steps up to use the wood.” said Brian Campbell Common Voice Northwest interested in Northern Issues.
“ The issue of allocation and maximizing the value of our resources is important and this puts us on that pathway. It is a bold move and also justified. Changes have occurred. We need to diversify the portfolio and support the base which is critical. There is support and there is protection and this allows new entrants with products, innovation technology and employees. This moves us forward as a stepping stone with major foundational change. The fundamentals have always been here.” said Harold Wilson, President of the Thunder Bay Chamber of Commerce.
“ This process clearly articulates what we are trying to do. People understand something has to happen and change. In Canada in the last 8 years, 200 mills have closed and many of those are not likely to come back. What we are trying to do here as a government is to protect the base but at the same time when there is an unrealized opportunity we are hoping that it will become part of what we see. It is what many people in NW Ontario have asked for.” said Bill Mauro, MPP Thunder Bay Atikokan
“ It is a significant amount of new wood. I am optimistic all areas of the forestry industry will support this. We have worked hard to confirm the existing supply in the 41 management units. There will be wood coming from 39 of those units. We want to put the wood to work in the Province of Ontario, create jobs and allow innovation to move forward. This will be a competition to allow everyone to put their cases forward. It was clear to us the time had come to move forward,” said Michael Gravelle. “ We need to find a balance between existing and new companies. The forestry sector is going through a transformation. We are inviting everyone to participate in the transformation. The proposals must be in by March 4th, 2010.
Operations that have been indefinitely or permanently closed will have their wood supply part of the new proposals. If new companies have ideas that can put that wood to work we will open up the process. We are keen to move forward and will be making decisions within 6 months of the application close or sooner if possible. You can see further details on the ministry website. This is about putting Ontario’s wood back to work with our people.”
