The Ministry of Natural Resources (MNR) is currently working to revamp how it allocates Crown land, a process which may end up including communities as a partner in the new model.
Although officials are unsure about exact timelines, the MNR is pursuing a plan to eventually change all of the 47 sustainable forest licenses (SFL) in Ontario to multi-party or co-operative SFL systems.
“Everybody’s on the drawing board, and it’s just a matter of time before they all change,” Dave Hayhurst, MNR’s manager of wood allocation.
“It’s going to take several years, as it’s a big project.”
Following recommendations from the 2005 Minister’s Council Report on Forest Sector Competitiveness, the MNR is in the early stages of gathering information and working with potential stakeholders to begin discussions about moving to the co-operative system.
In the currently proposed SFL model, no potential party or stakeholder is being excluded, though it’s too early to guess as to the exact composition of the final model, according to Hayhurst.
“When we initiate those discussions, we contact the local communities as well as the Aboriginal communities.
Whoever forms the final shareholder company, we won’t speculate there, but there really are no closed doors.”
Many communities such as Timmins have expressed an interest in participating in the allocation process, but Hayhurst says the inclusion of communities in the co-operative SFL model would likely cost them time and money.
All parties in the co-operative SFL model would need to carry the financial burden of overseeing the management, liabilities and roads of the licensed forest area, which could be problematic for some cash-strapped communities.
As an indication of its dedication to moving forward, Hayhurst says the MNR has recently hired a director, Lorne Morrow, to guide the process. Initially, Morrow will travel throughout the province to identify priority regions where the SFL system will be changed first, focusing on areas where communication and wood utilization can be streamlined.
Although he approves of the idea of a move to co-operative SFL models, Timmins Mayor Tom Laughren says he’s insistent on ensuring that communities are part of the final SFL formula.
“We’re not saying that we’re in disagreement with them, but we just want to make sure that some of the concerns that we have from a small business perspective and a forestry perspective and value-added and so, on are heard to ensure they are part of this process.”
Rather than reinvent the wheel, the MNR is looking to the 12 existing co-operative SFL systems in Ontario as a basis for the redesign process.
One such co-operative SFL is the Timiskaming Forest Alliance, which encompasses the 10,000 square-kilometer Timiskaming Forest. Six forest product producers and three independent logging operators are included in the consortium, and shares in the cooperative have been issued proportionally to the participating members.
Incorporated in 1996, the Timiskaming Forest Alliance was named an official SFL holder in 1998, and has continued as such to this day.
An independent audit in 2004 by Sault Ste. Marie-based BioForest Technologies Inc. found that the Timiskaming Forest was “a very well managed forest,” one that is “managed with an efficient and effective staff.”
Included among the shareholders of the Timiskaming Forest Alliance is Grant Forest Products Inc., whose director of forestry, Faye Johnson, says the MNR’s move to a province-wide co-operative SFL system is a positive one as it protects the interests of all those involved.
“Sometimes, our interests aren’t the same as perhaps a conifer company, and when the forest is being run by a conifer company, there’s a propensity to take care of yourself first,” Johnson says. “In a co-operative, I find we’re more collaborative and we talk about the issues, and we work in an environment that ensures that everyone gets what they need as much as possible. We have some tough conversations and the meetings aren’t easy but I think that everyone feels they’re being treated fairly.”
When a single-company SFL holder goes bankrupt, the timber rights and related arrangements can leave a number of smaller companies in limbo, she adds. In a co-operative model, the remaining companies can pursue business as usual as the individual shareholder settles its issues.
Additionally, the co-operative model can be relatively receptive to new entrants and shareholders, making it easier for those involved in emerging industries such as bioenergy to take a seat at the table, Johnson says.
Despite the many advantages, Johnson acknowledges that there are some challenges inherent in a co-operative SFL system.
Decisions affecting the entire co-operative often take longer than usual to make, simply because all the shareholder parties have to debate and discuss their stance.
As an example, she says the decision to move to a specific forest certification can take some time and create some conflict within the co-operative as each member company often has its own pre-conceived notions about which to pursue and how.
However, this kind of collaboration can often generate some positive and creative ideas that may not have otherwise arisen, Johnson says.
“I think for the province, it’s timely and it’s definitely the time to move towards a different model.”
Industry giant Abitibi-Consolidated Inc. is also involved in the Timiskaming Forest Alliance, although a company spokesperson said the company is slightly cautious about the idea being applied province-wide.
“The concept is positive, but we’re curious to see the benefits and inconveniences this can bring,” Denis Leclerc says.
“Our main concern as a company and as a partner in the community is to have an efficient system or formula in place that would be good for all the stakeholders involved, and that includes the industry because we desperately need to find ways to be more efficient and reduce our costs.”
