GOVERNMENT RELEASES FRAMEWORK FOR FOREST INDUSTRY DEVELOPMENT

The government today released a new framework for policies to encourage development of Saskatchewan's forest industry.

The framework helps set the stage for the forest industry to diversify and move from an industry based on commodities to one delivering market-driven, value-added products. The framework contains statements of broad policy direction on forest management, economic infrastructure, taxation and regulation, and knowledge and research.

"Our forest industry, along with the forest industry across North America, has faced unprecedented challenges over the last few years," Energy and Resources Minister Bill Boyd said. "The industry is adapting by moving to new value-added wood products for global markets, and through this framework our government is stating what it will do to aid in that transition."

Among the policy statements in the framework are a commitment to review sustainable cut levels associated with Forestry Management Agreement (FMA) areas as they come open for reallocation; preparation of a northern resource development infrastructure plan; encouragement of new multi-stakeholder FMAs and forest management certification; and continued research in value-added production, agro-forestry and bio-mass energy.

Boyd said the framework encompasses recent government actions on forestry, such as the process underway to assign the Prince Albert FMA to a new manager and the contract with FP Innovations to analyse value-added market opportunities in association with Saskatchewan's forest industry. The framework does not include the government making equity investments in, or grants to, forest companies for their projects.

"We believe companies are in the best position to make their own investment decisions," Boyd said. "Our support is targeted to those areas where government can have a positive impact on sector development, specifically in the areas of regulation, taxation, infrastructure and research and development.

"Our forestry resource is of high quality and our industry has some of the most modern and efficient facilities in Canada. The industry is well positioned to rebound and emerge stronger through new products, new energy developments and full utilization."

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For more information, contact:

Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca