With the forestry industry going through some potential changes right now, there is some confusion as to the future of wood rights for existing operations.  The changes include the tenure and pricing of wood supplies, which will affect how forest product companies gain access to and pay for Ontario’s crown timber.

The current model has remained the same for many years, and the government feels it’s time to make some adjustments.  Currently, the large wood product companies hold licences over the large forest areas and pay prices set by the province.  This makes it very difficult for new companies to buy in to the forestry market.

There are companies out there who are just starting up, and there is no shortage of wood available.  The unfortunate part, is that the existing licences are still in place with bigger companies, even if they are no longer logging in the area.

Northern Development, Mines and Forestry Minister Michael Gravelle has released a document to help the public understand the proposed outline of the changes.  The document focuses on three key areas of focus.

1. Maintaining a healthy and productive forest-the basis of a vibrant and competitive industry.

2. Modernizing licensing and allocation, thus encouraging more open access to fibre and greater sector investment.

3. Improving the pricing system so that forest resources are valued with a greater reliance on market forces and provide a fair return for all Ontarians.

The main change in the framework would be to establish Local Forest Management Corporations (LFMC).  The LFMC’s would each be run by a board of directors, who would be issued a Sustainable Forest Licence (SFL) over a defined management area.

The obligations of these of the LFMC would be the development of forest management plans and their implementation, the marketing and selling of available Crown timber to the forest sector under open, competitive market conditions.  Appropriate mechanisms could include tendered sales or short/long term negotiated sales on the stump or as logs at the roadside or mill gate.

To help answer some questions and concerns, and to discuss the proposed forest tenure and pricing framework, the Ontario Ministry of Northern Development, Mines and Forestry is hosting a public meeting in Dryden on Thursday, May 20th from 6:30 to 9:30 pm at the Dryden Regional Training and Cultural Centre.

The discussions will be facilitated roundtable sessions with local MNDMF and MNR staff on hand to help answer questions.

If you need more information, or to read a copy of the Proposed Framework document, you can go online to www.ontarioforesttenure.ca or call 705-856-4748.

- Ally Dunham