Miramichi River

An agreement in principal has been reached whereby the N.B. government will provide a $1.5 million loan to the fourth-generation mill owner, to make up part of the $3.5 million in capital and equipment it’ll need to modernize the mill his family has owned, with the remainder arranged by Anderson.

“We’re going to be rebuilding the mill this winter, start the sawmill up probably in June and go right straight ahead,” Anderson said.

Separate from the modernization, the government is also putting up a $1.5 million working capital loan guarantee.  The family owned mill will also receive a new 150,000 cubic-meter Crown allocation, almost double the 83,000 cubic metres it currently holds. A fair bit of logs were already piled up off to one side, with cutters in the woods almost as soon as the deal which is an agreement in principal was signed.

Anderson said the financial aid and wood supply were the key issues that needed to be dealt with before the mill could come out of receivership and back to operation, although he notes the current market conditions made things much worse. “The markets are starting to pick up, but the big change for us has been the wood supply and the modernization of the mill,” Anderson said.

His $3.5 million modernization plan would include $2.5 million in the cost of the actual modernization, with the rest consisting of capitalization, he said. Anderson estimated it took around eight months to reach the deal with the province. “Took a lot longer than I figured, but its one of those things you can’t hurry,” he said, adding he never doubted it would actually happen. He said throughout the whole negotiations, the support he and his company had from people on the river, from banks and business to woodlot owners and ordinary citizens, was very humbling.

Business New Brunswick Minister Victor Boudreau said that Anderson’s business plan was carefully reviewed, and his department was comfortable with it. “We believe that the new package that has been put together by Mr. Anderson has some merit and has a future, and we feel its important to support this project,” he said. This is an agreement in principal, and a more formal announcement will follow in due time.

Mike Ferguson, speaking to a legislative committee Tuesday, March 24, 2009, said flaws in the system mean royalties do not reflect fair market value.

The fundamental problem with the design of the system for determining royalty rates is that the timber market is not truly an open market.

Timber royalties are based on a survey of the stumpage prices received by private landowners – a segment of the market that supplied 11.6% of the timber consumed by mills in New Brunswick in the fiscal year ended 31 March 2007. The price that is paid to the private landowners determines the price the mills will pay to the Province for timber harvested from Crown land which represents 41.5% of their source of supply.

This would provide an incentive for the mills to keep the prices paid to private landowners as low as possible since those prices affect the royalties that would have to be paid in the future. Since the mills represent a very large proportion of the buyers for timber harvested in New Brunswick, they also have the market power to keep the prices paid to private landowners low. The result could be a continual spiraling down of prices and therefore royalties.

Timber from marketing boards accounted for 20.8% of timber consumed in New Brunswick in the 2004-05 fiscal year but declined to 11.6% in 2006-07. Timber harvested from Crown forests accounted for 37.4% of timber consumed in 2004-05 and increased to 41.5% in 2006-07. It should also be noted that in many cases the timber imported by New Brunswick mills is from land that they own or lease in other jurisdictions.

On January 30, 2009, the New Brunswick government announced their decision on the direction they planned to take for the management of the crown lands of New Brunswick. Against the recommendations of most of the citizens of New Brunswick who participated in the Public Forum on Forest Management and of all Environmental Organizations, they have decided to implement the recommendations of the major Forestry Companies who are harvesting the timber on the Crown Lands of New Brunswick.  The following is the response of one of the environmental organizations to the government announcement.

Fredericton –The Canadian Parks and Wilderness Society (CPAWS) is extremely disappointed with the New Brunswick government’s announcement today of a new direction for public forest management and is calling on government to make changes.

“This direction is a step backwards for the environment and for the future of New Brunswick’s forest products in the market place. It’s out of line with the direction of every other jurisdiction in Canada to improve forest conservation. It’s also out of step with the changes we need in forest management to address climate change,” says Roberta Clowater, Executive Director of CPAWS’ New Brunswick chapter.

Unless the strategy is changed, it will lead to a decrease in the amount of forests that are conserved. It will also lead to a significant loss of old forests and a 45% reduction in forests managed for wildlife habitat.

Under the strategy, tree plantations will increase from 8% to over one-quarter of the forest — well above the upper limit considered safe by conservation scientists for preserving biodiversity.

“The government appears to have rejected the strong environmental values expressed by a large proportion of the public during recent consultations. If we are going to conserve biodiversity in New Brunswick, we need to create a comprehensive network of protected areas – comprising more than 10% of the public forest.

“The government’s vague goal of raising the amount of protected forest from 4% to between 6% and 8% of the province continues to place New Brunswick behind the rest of Canada,” says Clowater.

“I have no doubt that this new forest management regime will do little to increase sales for New Brunswick products in international markets. Increasingly, these markets are seeking products that can prove their links to environmental sustainability and progressive forest conservation,” adds Aran O’Carroll, CPAWS National Manager of Legal and Regulatory Affairs.

Clowater states, “CPAWS wants to work with industry to reverse this unfortunate decision by government. Our aim is to work with government and industry to conserve our forests and ensure a stable footing for our province’s products in the marketplace. This new forest management strategy will not help us achieve these goals.”

Less than 3.5% of New Brunswick is permanently protected, placing it dead last among Canada’s provinces. The proportion of New Brunswick forests certified under the Forest Stewardship Council – the international gold standard in recognizing responsibly managed forests – is second to last in Canada.

CPAWS’ goal is that Canada will protect biodiversity in its eastern woodlands, covering New Brunswick, Nova Scotia, Quebec and Ontario, through creation of a comprehensive network of protected areas and carefully managed industrial activities.

Contact: Roberta Clowater, 506-452-9902

About CPAWS: The Canadian Parks and Wilderness Society (CPAWS) is Canada’s voice for wilderness. For 45 years, CPAWS has worked to ensure that nature comes first in parks management and that protected areas maintain and enhance Canada’s biodiversity and wilderness. The New Brunswick chapter, CPAWS NB, was established in 2004, evolving out of the former NB Protected Natural Areas Coalition (NBPNAC). For more information, please visit www.cpaws.org.

The rivers and streams that flow through the forests;
The birds and animals that live in the forests;
The unique species, and ecosystem diversity that is native to N.B. forests;
The salmon and other sport fish that live in the rivers and streams that provide recreation and livelihood for N.B. residents;
The game birds and game animals that live in the forests that provide recreation and livelihood for N.B. residents;
 

New Brunswick forest and lands are not only for the benefit and use of the companies who for economic reasons will cut as much of the forest as they can; as quickly as they can; as cheaply as they can; and whose major concern is to maximize their profits.

Every citizen of New Brunswick should carefully examine the recommendations in these reports and then each one of us should impress upon our M.L.A’s the concerns we have about the changes that will effect all of us who live here now, our children, and future generations of our children.

The following are links to two comments, of many, that have been posted on the Province of N.B. website.

Thom Erdle & Chris Ward University of New Brunswick -
COMMENT 15
Don Roberts CIBC World Markets Inc. & Peter Woodbridge Woodbridge Associates Inc. – COMMENT 28

 New Brunswick should have as its goal an FSC-Certified Forest (Forest Stewardship Council – Certified Forest).

FSC certification is internationally recognized as the most rigorous environmental and social standard for responsible forest management.

It is the only forest certification system supported by groups such as the World Wildlife Fund Canada, Greenpeace, Sierra Club of Canada, and the National Aboriginal Forestry Association.

Things Have Not Changed In 183 Years

On September 10, 2008 the following news appeared in the local newspaper, the Miramichi Leader:
UPM STEP CLOSER TO DISMANTLING PAPER MILL by Daniel Martins
Finnish forestry giant UPM ­Kymmene has placed ads in pro­vincial newspapers announcing its registration for an environment impact assessment (EIA) so it can move ahead with the decom­missioning its closed mill in Miramichi.
“What they’ve registered for is a project that will decommission that entire area,” said Danny Stymiest, a project manager of the Environ­ment Department’s project assess­ment and approvals branch, who has been assigned to that particular case.
“It’ll take all the buildings down, everything, so you’ll have basically a brown field when you’re done.”
The ads, which appeared in the Telegraph-Journal and Times and Transcript last week, announced the company registered the decom­missioning and accompanying EIA with the department on April 28. No such ads appeared in the Mi­ramichi Leader.
The ads say the site’s process equipment, related building shells and ancillary infrastructure, will be decommissioned. Aside from the main mill property, where most work will occur, it will also include nearby water systems, such as wastewater treatment lagoons, wa­ter supply system and pipelines.

Chris Allison, CEP Local 689 presi­dent, said upon reading the notice placed in the Times and Transcript that the removal of the water pipeline to the area would make the site “basically rendered useless.”
He questioned what effect that would have on potential buyer inter­est.
“I don’t know why they would want a piece of land,” he said. “It doesn’t make sense with no water supply, if there’s anybody buying it. Maybe no­body’s buying it. Maybe it’s all a lot of unnecessary hype.”

Southwest Miramichi MLA Rick Brewer said he had no information about any potential buyers for the site, and had heard nothing on the subject from Business New Brunswick.

The following is an excerpt from the book, 

“First History of New Brunswick”

Published in 1825:  Written by Peter Fisher

“RIVER MIRAMICHI”

‘This is one of the finest rivers for lumber in the Provinces. Its bank’s, as well as the banks of the river streams that fall into it, are covered with pines of the finest growth which appear to be almost inexhaustable, for although lumbering has been prosecuted on this river to a great extent for a number of years, there is still abundance found by going a little back from the water.’
‘It is indeed the main source of the trade of the large County of Northumberland. One hundred and forty-one thousand three hundred and eighty-four tons of timbers were shipped at the port of Miramichi in 1824.’
‘Upwards of three hundred sail (sailing ships), load annually in Miramichi.  The timber is paid for part in specie, and part in British and West-India goods and provisions.’
‘A stranger would naturally suppose, that such a trade must produce great riches to the country: and that great and rapid improvements would be made. That large towns would be seen in commodious and elegant houses, extensive store and mercantile conveniences, in public buildings for ornament and utility, good road and improved seats in the vicinity of the sea-ports, with Churches, Kirks, Chapels, etc.  All these with many other expectations would be but a matter of course.  But here he would not only be disappointed, but astonished at the rugged and uncouth appearance of most part of this extensive county.’

‘The wealth that has come into it, has passed as through a thoroughfare to the United States. The persons principally engaged in shipping the timber have been strangers who have taken no interest in the welfare of the country; but have merely occupied a spot to make what they could in the shortest possible time.’
‘Instead of seeing towns built, farms improved, and the country cleared and stocked with the reasonable returns of so great a trade; the forests are stripped and nothing left in prospect, but the gloomy apprehension when the timber is gone, of sinking into insignificance and poverty.’ ”

That is how it was as far back as 1825! 

Should our elected representatives learn from our past history of allowing foreign companies to set up business in our province and extracting resources with no regard to the environment and future use of  the land by New Brunswick citizens? 

Of course they should.  Will They? 

Only if we, the citizens of New Brunswick, tell our M.L.A’s and M.P.’s that they must stop implementing short term policies in order to get re-elected to office and to put into place resource management policies that will benefit all residents of New Brunswick now and in the future.