Meeting reveals differences re: forestry

Jim Irving spoke at a stakeholders meeting Saturday at the Rodd Miramichi on the state of the forestry industry in New Brunswick.

Irving said the industry is in trouble because stumpage fees and electricity costs in New Brunswick are among the highest in the country.

"If we're going to compete in a global economy, these are issues we're going to have to address."

Irving was speaking as a member of a panel that included Fraser Papers CEO Peter Gordon and Flakeboard CEO Kelly Shotbolt.

The meeting also featured several presenters, including the minister of natural resources and a representative of the Conservation Council of New Brunswick.

Irving said New Brunswick has to compete in a global market and to do that, rates don't have to be the lowest — they just have to be even.

"I think that's the message."

Gordon said power rates in Quebec are 50 per cent lower than in New Brunswick and that difference has to be passed on in an industry that relies on competitive prices.

"It just doesn't work."

The group's report showed Prince Edward Island was the only province with electricity rates for the pulp and paper industry higher than in New Brunswick.

Irving said forestry companies need to work with government because the high rates are driving people out of business.

"Ultimately, you go because you can't stand the heat."

But New Brunswick businesses create the most jobs and they want to stay in the province, he added.

"We have to have the heart for it."

Irving said there is the ability in this province to keep things moving forward and the government will do the right thing when it gets all the facts.

"Now is the time to move."

The jobs lost to mill closures throughout the province are being replaced, but they are not being replaced by high paying jobs like the ones in the forestry industry, he said.

Irving said the loss of a mill affects municipal budgets too, because mills pay a high percentage of the property taxes collected in some areas.

"That's real dollars."

The panel presented Price Waterhouse Cooper reports that indicate New Brunswick spruce fir stumpage rates are 30 per cent higher than those in Quebec and 50 per cent higher than in Ontario; and that $17 million more was paid for trees cut on Crown Land in New Brunswick than in Quebec, and $20 million more than in Ontario.

Natural Resources Minister Donald Arseneault said royalty rates need to reflect the markets as they go up and down.

"That's what we're trying to do."

As for the electricity costs, a high-energy-use rebate of $16 million over two years was announced last summer, he said, but added it is hard to convince other cabinet ministers money needs to be budgeted for the forestry industry.

"You're limited in dollars — and the demands are unlimited."