Department Receives Crown Land Stumpage Report
A review of Crown land timber prices and policies in Nova Scotia recommends fundamental changes in the way the Department of Natural Resources administers licence agreements on provincial land. Natural Resources Minister Ernest Fage today released a report on the review, which was conducted by AgFor Inc. of Fredericton.
The report recommends that Nova Scotia revise its current base rates for stumpage and adjust stumpage rates more frequently. Stumpage is the rate paid for standing, unprocessed trees on Crown land.
It also recommends that the province adopt some of the features of Quebec's and New Brunswick's systems, in which timber licence holders have a greater role and more responsibility for administration of stumpage agreements. Another key recommendation is that the province consider redirecting unused wood allocations from long-term licensees to others in the forest sector.
The department will consider these recommendations and accept written comments until Feb. 15 before implementing any changes in Nova Scotia stumpage policy.
"The last time base rates for timber stumpage on Crown land were reviewed was in 1987," said Mr. Fage.
In Nova Scotia, the base rate for stumpage is set for a specific period of time. However, actual fees may fluctuate annually based on changes in the selling prices of lumber and paper products. Indexes from Statistics Canada are used to determine whether prices go up or down.
"It was time to take a look at the base rates because of changes in the marketplace and competition in the industry," said the minister. "This review will allow us to bring our base Crown land stumpage rates in line with current market values, as well as examine other administrative aspects of our licence agreements."
Over 70 organizations and individuals, including the licence holders in the forestry sector in Nova Scotia and other provinces, were interviewed. The review was conducted between May and September of 2000.
A report is available on the Web site at www.gov.ns.ca/natr/forestry/stumpage/ . Comments should be forwarded to Dan Eidt, Director of Forest Management Crown Lands, Department of Natural Resources, PO Box 698, Halifax, N.S., B3J 2T9; e-mail to dleidt@gov.ns.ca; or fax 902-424-7735.