RECOMMENDATION 1:
The Committee has heard evidence from a number of stakeholders and
believes it would be in the public interest for the Prime Minister to convene a
National Summit, with all stakeholders, on the future of the Canadian forest
industry with a view to developing a national strategy to support the renewal
of the industry while respecting provincial and territorial jurisdictions.
RECOMMENDATION 2:
The Committee therefore recommends that the federal government, in
collaboration with provincial and territorial governments and the industry,
establish a national forest industry innovation fund, and that this fund be
provided with sufficient resources to ensure that the industry can be central
in the development of the new bioeconomy.
RECOMMENDATION 3:
The Committee therefore recommends that the Government of Canada consider putting additional funds into the ecoENERGY for Renewable Power program and
consider extending its scope to cover the production of thermal energy from
renewable sources such as biomass.
RECOMMENDATION 4:
The Committee therefore recommends that the Government of Canada,
working with the provinces and territories, assess the impacts of a more
intensive use of biomass on forest ecosystems and on the environment, and where
appropriate provide increased funding for research and development on bioenergy
and bioproducts. Conditions for increased funding should be based upon energy
conversion factors, greenhouse gas emissions, and impacts on regional forest
economies.
RECOMMENDATION 5:
The Committee concurs and therefore recommends that the Government
of Canada, in partnership with the provinces and territories, actively pursue
policies that encourage value-added manufacturing.
RECOMMENDATION 6:
Given the importance and scope of the Value to Wood program, your
Committee recommends that it be extended beyond the current expiry date of
March 2009 in a predictable fashion.
RECOMMENDATION 7:
The Committee therefore recommends that Canada’s Competition Bureau
examine its methods for analyzing mergers and acquisitions in the forest
products industry and explicitly take into account the international nature of
forest products markets.
RECOMMENDATION 8:
The Committee recommends that the federal government, in
conjunction with the provinces and territories, consider investments in
innovative research and development programs that stimulate cooperation and
facilitate the formation of industrial forest clusters as in Finland.
RECOMMENDATION 9:
The Committee therefore recommends that the Government of Canada examine ways to improve the scientific research and experimental development
(SR&ED) tax incentive program, such as by offering refundable tax credits,
to ensure that it plays a critical role in supporting the recovery of the
forest products industry.
Similarly, the Committee recommends that the Government of Canada consider fully extending for the next five years the accelerated capital cost
allowance (CCA) treatment for investments in manufacturing or processing
machinery.
RECOMMENDATION 10:
The Committee recommends that the Government of Canada consider expanding
the life, the scope and the funding of the Canada
Wood Export Program and the International Forestry Partnerships Program in
order to inform foreign buyers about the economic and environmental benefits of
Canada’s wood products, with the aim of further developing export markets.
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RECOMMENDATION 11:
The Committee therefore recommends that the Government of Canada,
in conjunction with the provincial governments and in partnership with the
industry, architects, engineers, builders, suppliers of construction materials
and the media, launch a campaign called “Building with Canadian Wood”, to
inform decision-makers about wood’s superior environmental characteristics,
ease of use as a building material, durability and excellent lifecycle cost.
The campaign would highlight the possibilities of construction with wood as
provided for under the standards, regulations and building codes, and would
also have a technical aspect: the computerization of engineers’ framing
calculations.
Moreover the Committee recommends that the Government of Canada
call upon the National Research Council of Canada (NRC) to include in the
National Building Code’s objectives the use of wood in all its forms for
construction, and of on-site fireproofing techniques, new flame retardants and
all other building technology developments, in light of the latest research and
the availability of composite products. In other words, that the opening-up of
the Code begun in 2005 be confirmed and continued.
RECOMMENDATION 12:
The Committee recommends that the Government of Canada emphasize the deployment of its greenhouse gas regulatory framework and any other
mechanisms, including offsets, that could further promote climate-friendly
forest management and conservation practices.
The Committee further recommends that the forest products
industry’s efforts to reduce emissions since 1990 be taken into consideration
by the Government of Canada as it develops new emissions regulations.
RECOMMENDATION 13:
The Committee recommends that the federal government, in
collaboration with the provinces and territories, promote and support
silviculture on private and Crown Lands within their relevant jurisdictions.
RECOMMENDATION 14:
The Committee therefore recommends that the Government of Canada
introduce changes to income tax rules and regulations to facilitate the
deduction of forest management expenses and to allow for income averaging from
woodlot management activities, notably when the income shock is the result of
natural disasters such as the mountain pine beetle epidemic.
RECOMMENDATION 15:
The Committee therefore recommends that the Government of Canada continue to work with First Nations and other Aboriginal communities to enable them to become
active partners in the sustainable development of Canada’s forests.
RECOMMENDATION 16:
The Committee therefore recommends that the Government of Canada work with the provinces and territories and with Aboriginal communities to explore
opportunities for adding value, in Canada, to the logs that would otherwise be
exported in an unprocessed state.
RECOMMENDATION 17:
The Committee recommends that the federal government, along with the
provinces, territories and Aboriginal governments, focus specifically on
protecting all vulnerable communities threatened by forest fires in the areas
affected by the mountain pine beetle and on addressing the spread of the brown
spruce longhorn beetle. To that end, the federal
government must provide the necessary resources, both to conduct research on
these insects and to directly fund the necessary protection measures.
RECOMMENDATION 18:
Recognizing that the management of natural resources, including
forests, is primarily a provincial responsibility, the Committee recommends
that the federal government work with the provinces and territories to
establish regional land use planning processes that respect the jurisdiction of
the different levels of government.
RECOMMENDATION 19:
The Committee therefore recommends that the federal government,
working with its provincial and territorial partners, increase its conservation
efforts in the natural forest ecosystems, particularly in the boreal zone.
RECOMMENDATION 20:
The Committee recommends that that federal government, in
collaboration with the provinces and territories, explore implementing a
program for woodlot owners similar to the Beneficial Management Practices (BMP)
program delivered by Agriculture and Agri-Food Canada and the provinces.
RECOMMENDATION 21:
The Committee recommends that the federal government, working with
the provinces and territories, provide full support for the certification of
Canadian forest products and operations and that it actively promote them in
its programs and campaigns for the Canadian forest industry, such as the “Value
to Wood” program. The ultimate goal should be that 100% of Canada’s forest operations and products be certified.
RECOMMENDATION 22:
In light of the Canadian forest industry’s need for a first-rate
labour force and expertise in all areas, the Committee recommends that Natural
Resources Canada and its partners undertake an assessment of the forestry
sector’s labour force and expertise needs.
RECOMMENDATION 23:
Therefore, the Committee recommends that, in addition to the rail
service review undertaken following the adoption of Bill C-8 (including issues
affecting the forest industry), the federal government undertake a study on the
issue of railway rates and consider developing an intermodal transportation
strategy that could address the concerns raised by the forest products industry.
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