Proposed wood tenure model still a reality

News — 12 October 2010

When the province of Ontario released its intentions regarding the new proposed wood tenure model, many in the industry were left feeling very uncertain and with many unanswered questions.

Michael Gravelle, Minister of Northern Development, Mining and Forestry states, “We remain very committed to moving forward with the modernization of the wood tenure system in the province of Ontario. The system that was in place in terms of the allocation and licensing of our wood left many of the companies that had control of the Sustainable Forest Licences, quite frankly holding on to their wood or hoarding their wood.”

The province undertook many public consultations last spring, asking the opinions of industry workers what they thought of the new model.

“Certainly there’s been a lot of discussion about it, probably fair to describe it as some level of controversy about it,” says Gravelle. “But I certainly remain committed in trying to find a system that works better for everyone, particularly those new entrants, people who have got solid business ideas and under the past system just could not get wood.”

Gravelle says he recognizes that this is a process of significant change and the Ministry wants to be able to work through this process in the correct way.

“I think part of the controversy was the misunderstanding by a number of companies that we were going to move very, very quickly on tenure. It was important to me to explain that this is a process that is going to take three to five years.”

In the short term, the government will be focusing on testing the principles of the proposed model by creating some pilot projects and continuing to work through the wood supply competition. Gravelle hopes to set up a pilot in the northwest as well as the northeast sometime this fall.

“The goal is to level the playing field, to allow new entrants as well as the established companies to continue to be able to harvest wood,” relays Gravelle. “We recognize there needs to be a significant transition period and we need to be able to do this the right way.”

The province issued a wood supply competition last spring, and Gravelle says 115 proposals have come forward with a business plan.

“We are working feverishly to move through that, certainly this fall I hope to announce some of the successful proposals if not all of them.”

Gravelle insists that there will be the ability to have long term contracts provided, which will ensure some security to the current licence holders. There is a possibility for a model such as a ten or twenty year contract with five-year renewals.

The Minister says he recognizes that certainty of wood supply is hugely important for all companies, but certainly the major companies that are in the business today and he wants to be able to provide those assurances.

“We want to have more local involvement. The tenure proposal is very much in response to the municipalities, the members of the opposition at Queen’s Park, saying we need a system that works better, that allows us to have more local control, more local involvement and more aboriginal involvement.”

By Ally Dunham

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