Reports on future of forestry explained to public

Published Friday September 19th, 2008
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The main authors of two reports on the future of New Brunswick's forests were in Miramichi Wednesday night to explain them to the public. The reports were released to the provincial government last month.

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Don Roberts, managing director of CIBC World Markets, presented opportunities for future investment in the forest sector.

Thom Erdle of the University of New Brunswick presented a report on wood supply that proposed seven potential models for forest management, ranging from reducing the annual allowable cut to increasing the wood supply in varying degrees, as well as listing the pros and cons of each option.

"There's lots of possibilities," he said. "We can create a whole bunch of different forests with a whole bunch of different consequences. It's challenging. The more choice you have, the harder it is to decide what to do."

He warned, however, that whatever direction the province goes, there would have to be trade-offs.

Don Roberts, the managing director of CIBC World Markets, was one of the authors of a report into future investment opportunities for the forest sector. He reiterated his belief that the forestry sector in New Brunswick would rebound, adding the province was weathering a storm that would move on.

"I want to invest in New Brunswick right now, because the bad news is here," he said. "This is harsh, especially saying this in the Miramichi, but: have you folks felt enough pain? I think you have."

He said New Brunswick's forest industry would likely rebound if the right actions were taken, arguing government should expand wood supply, improve energy efficiency, remove impediments to business and found a joint industry-government initiative to examine the future of the forest, among other recommendations.

As for the future, he suggested softwood framing lumber, MDF/particleboard and dissolving pulp were most desirable, while wood pellets, newsprint and oriented strandboard were the least.

Kevin Forgrave, the executive director of the Northumberland Woodlot Owners Association, which is attempting to set up a pellet plant in Miramichi, disputed Roberts' assertion that wood pellets are not cost-effective.

"If you look at the recent economics when you compare coal ... compared to pellets, it's now a competitive alternative," he said. "You have to keep that in mind as well."

Although he thought it was risky, Roberts said it was up to the proponents of wood pellets to decide if it was feasible.

He called private woodlots "one of the biggest opportunities in this province."

"We're all in this together, the industry, the government and the private woodlot folks," he said. "And I think there needs to be a concerted effort to help them capitalize on this opportunity."

Coun. Rupert Bernard, who was one of several city officials at the information session, said it was time to bring in policy changes to improve the industry.

"This chatter about forest resources has been going on for about 15 years," he said. "While we talk about it, it seems to be disappearing on us. Policy changes to improve prospects for the economy have to be made, and now."

The government says it will respond to both reports before the end of the year.

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