Minister Accepts Recommendations from Stumpage Report

NATURAL RESOURCES--Minister Accepts Recommendations from Stumpage Report

Recommendations to review the market value for stumpage in Nova Scotia every five years and to establish a Crown land silviculture fund will be adopted by the provincial government.

Stumpage is the rate forest companies pay the province for harvesting standing trees on Crown land. It is adjusted yearly.

Adoption of the recommendations, contained in a report prepared by AgFor Inc. of Fredericton, was announced today by Natural Resources Minister Ernest Fage.

"Acceptance of these recommendations coincides with our policy to ensure Crown stumpage values are tied to market conditions," said Mr. Fage. "They will also help to ensure that harvest levels on Crown land are sustainable."

The minister said his department has accepted most recommendations in the AgFor report, including one to revise the existing annual indexing formula used to make stumpage rate adjustments. The revised formula will also more accurately reflect the trade pattern for Nova Scotia forest products.

"After the report was released in January we solicited public response to the recommendations," said Mr. Fage. "Many submissions were received by the department and all of them were reviewed closely. Most comments from industry and the public supported the general concepts recommended."

The regular five-year reviews of the market value will help maintain parity with private-land stumpage rates. Establishment of the Crown-land silviculture fund means that, in addition to stumpage rates, Crown timber licence holders will pay a fee of $3 per solid cubic metre of softwood harvested and 60 cents for hardwood.

Further recommendations that have been accepted include:
exploring and negotiating with long-term licence holders the potential to redirect the unused portion of annual wood allocations to other potential Crown beneficiaries; and reviewing options for using lower grades of hardwood and encouraging establishment of a new processing facility for such hardwood.

A review of the possibility of a system of licensees and sub- licensees has also been recommended. This particular recommendation would result in transferring more administrative and forest renewal responsibility to licence holders, while increasing opportunities for value-added production.

"I can assure Nova Scotians that with any administrative changes, Natural Resources will maintain its authority to approve, monitor and inspect all work undertaken by licensees to ensure that current and any newly adopted provincial goals, guidelines and standards are being met," said Mr. Fage.

"By implementing some of these recommendations, we are meeting a government commitment to establish an economic and regulatory environment that encourages private-sector initiatives, economic growth and job creation," added the minister.

Many of the recommendations dealing with methods for allocation of Crown wood volumes will be phased in. A period of further consultation with licensees will take place, as will continued review of the development of Long Range Management Plans under the province's Integrated Resource Management process. Review of the plans will ensure that there is an ecological approach to sustainable forest management.

Most of the recommendations adopted from the report will be implemented over the next three to five years.