RNNR Committee Report

Canada’s forest industry has a long and largely successful history. Forests and forest-related activities have contributed greatly to the development of this country; hundreds of communities and hundreds of thousands of Canadians are economically dependent on the forest industry.

Today the industry is in the midst of a serious crisis; numerous mills and plants have been closed or are closing and job losses number in the tens of thousands. Many forest communities face an uncertain future.

A number of factors, both domestic and international, explain the precarious situation in which Canada’s forest industry now finds itself. Chief among them are the depressed U.S. housing market, the rapid appreciation of the Canadian dollar, the mountain pine beetle epidemic, and the intensification of global competition coupled with years of underinvestment in Canada in new technologies and equipment.

The Committee is of the view that the challenges facing the industry are not insurmountable. This is an industry which continues to have tremendous potential for sustainable growth. Canada has the land, the water, the energy and the institutions to be a global leader in this industry.

The Committee hopes that this report and its recommendations will galvanize the industry, governments and other stakeholders to work together to lay the groundwork for the industry’s renewal, prosperity and sustainability.