Monday, September 28, 2009

Forestry Issues Outlined

The manager of AbitibiBowater's mill in Fort Frances say energy costs continue to be the biggest threat to the forest industry in northwestern Ontario.

Speaking at the Northwestern Ontario Associated Chambers of Commerce meeting, John Harrison says north has an abundance of power, yet government still refuses to establish a regional pricing policy that help industry remain competitive.

"We need something in the range of $45 per megawatt," says Harrison. "That takes the uncertainty out of making business decisions on manufacturing and operating strategies and would put the industry in a favourable position relative to the other jurisdiction we're competing with in North America."

Harrison says Ontario has the highest energy costs for industry in the Canada.

AbitibiBowater is giving its support to a government review of how it allocates the province's timber resources.

Public consultations on so-called tenure are currently underway.

Harrison says area mills still need to have a strong and reliable fibre source to be competitive.

"We support a review of the tenure process with the understanding that it deliver a competitive long term supply. We need a certainty of fibre supply at an affordable cost without another level of bureaucracy and without a bunch of restrictions about what we can do."

Harrison also questions the motives behind agencies who send e-mails that ask the recipient not to print them.

He says its suggestion that it's not an environmental sound practice, a position he says should not be accepted in the northwest.

He says a vast majority of the recycled paper is turned into other products after its original use.