A coalition of forestry players are asking the Ontario government to stop land tenure reform until the province's own competitive wood supply competition is complete.
The uncertainty of how this reform of Crown forest management units will shake out has prompted 200 forest companies and suppliers to petition the Ministry of Northern Development, Mines and Forestry to stop the process for at least three years.
The Coalition for Putting Ontario's Wood Back to Work said they do not support MNDMF's tenure proposal "in any way" until the wood supply competition and the move to Co-operative/Shareholder Sustainable Forest Licenses are finished.
The wood supply competition is expected to be wrapped by Aug. 31.
In a July 6 statement, Timmins Mayor Tom Laughren said provincial forestry initiatives already in place are starting to work, "so why would we want to scrap those now and replace them with a completely new tenure system?"
John Kapel of Littlejohn Enterprises said his Timmins forest products company is finally getting the wood they need and are dropping their costs.
"We're finally doing something right and all of a sudden they turn around and kick us in the teeth. Costs will go through the roof."
The businesses fear that MNDMF's proposal will remove secure fibre supply commitments or agreements already held by forest companies. Instead, they said, the government proposes to hand over decision-making authority to Crown agencies with members appointed by the government.
Their comments are supported by Thunder Bay Chamber of Commerce president Harold Wilson.
"The bottom line is that if you cannot get a guaranteed fibre supply, long-term, from the government, how can you get financing?
Jamie Lim, president and CEO of the Ontario Forest Industries Association, said both government initiatives are "very progressive" that if done properly offer security for all forest companies.
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