MEDIA RELEASE

September 9, 2009

Forestry in Ontario just got more complicated instead of more competitive – “realignment toolbox” empty!

In June, Premier McGuinty announced he was transferring forestry to Ministry of Northern Development and Mines (MNDM) in order to “strengthen our economy, create jobs and provide opportunities for Ontario families”. Minister Gravelle was asked to build a more competitive forest sector by managing the economic and business side of forestry.  Last week, the government provided Minister Gravelle with an empty toolbox. After reviewing the “realignment toolbox”, the Ontario Forest Industries Association (OFIA) believes it lacks the fundamental tools to allow the Ministry of Northern Development, Mines, and Forestry (MNDMF) to fulfill the Premier’s request to lead the economic and business aspects of forestry in Ontario and create a more competitive forest sector.

Since the Premier’s announcement on June 24, 2009, members of the OFIA have met with Minister Gravelle and his team on three separate occasions and have provided the Minister with in-depth analyses outlining the positions and concerns of the forest sector.  

Jamie Lim, President and CEO of the OFIA, commented that, “In correspondence to Minister Gravelle dated July 2, 2009, the OFIA provided a summary of these positions making it very clear that in order for Ontario’s forest sector to achieve certainty and competitiveness, it requires a “one-stop shop” approach that would see all relevant responsibilities under MNDMF.”

“The new organization split does not reflect any of our advice. This piece-meal approach does not provide the long-term benefits desired or the certainty needed to make positive business decisions in the short to long-term”, said Lim.

In the same correspondence, the OFIA noted that “the Forest Management Branch, and therefore, the development of forest policy, is seen as critical to the business side of forestry and its transfer to MNDMF is viewed as a key element to the success of this initiative and

ultimately, in restoring our sector’s competitiveness.” Moving the Crown Forest Sustainability Act (CFSA) in its entirety to MNDMF was also listed as a key to success.

“How can you make the forest sector more competitive when you don’t have control over the primary legislation or policies that govern our business?” asked Scott Jackson, Manager of Forest Policy at the OFIA.  

Jackson continued, “The elements of Forest Management are fundamental to the business side of the equation and have a direct impact on our costs, our access to resources and  our competitiveness in today’s global marketplace.”

Last week’s government announcement suggested that the MNR could now “focus even more on our role of ensuring that our forests remain healthy and sustainable.” 

Jackson questioned this, “The government is suggesting that while MNR was responsible for forestry that they somehow were neglecting the health of the forest. Managing our forests for long-term ecological health has been the law under the Crown Forest Sustainability Act for over 15 years, and has been a primary focus for our sector long before then. It didn’t just start two years ago or on September 3, 2009. The suggestion that somehow sustainability wasn’t being achieved in the past is an insult to those within government and industry, including our professional foresters, that have spent their careers developing the best forest management system in the world.”

Lim concluded, “Over the summer, our members remained optimistic about the transfer of forestry to MNDM and truly believed that done right, a new and real competitive environment could be achieved.  Unfortunately, last week’s announcement has left the OFIA very concerned that this could be a step in the wrong direction.  We hope Minister Gravelle proves us wrong.”

The Ontario Forest Industries Association is the voice of 75 member companies ranging from large multinational corporations to family owned operations and Home to CLA Grading and Inspection. Today, over 250,000 Ontario working families directly and indirectly rely on the forest sector for their livelihoods.  Ontario’s forest products sector is a world leader in sustainable forest management.  When we buy Ontario-made forest products, we all win.

-30-

For further information, media representatives may contact:

Jamie Lim,

President & CEO,

Ontario Forest Industries Association                                                            

Home of CLA Grading and Inspection                                                        Phone: 416-368-6188

Tackle Climate Change – Use Wood! Visit www.planetfriendlycanada.com