RNNR Committee Report

Many people see Canada as a country of water and woodland, a resource-rich country. With the third-largest area of forested territory in the world, Canada is indeed the classic example of a country whose development and inhabitants’ well-being have, to a very great extent, been built on the wealth of its forests, thanks to a solid forest products industry found right across the country. However, because of structural and conjunctural factors, the Canadian forest products industry is now going through what many observers consider is the worst crisis in its history. Exports are falling, plants and mills are closing and jobs are being lost: all signs of an industry in transition and of communities seeking better times.

Given the scale of the crisis affecting Canada’s forest products industry, the House of Commons Standing Committee on Natural Resources agreed in December 2007 to undertake a review of the opportunities and challenges facing the industry. By so doing, the Committee sought to contribute to the implementation of a market-driven action plan that would make it possible to lay the groundwork for the industry’s renewal, prosperity and sustainability. To achieve this goal, the Committee held eight meetings between February and April 2008, at which it received evidence from some 25 organizations and individuals representing various spheres of forest industry activity and various perspectives on the industry as a whole.

This report outlines the chief characteristics of the forest resource and of Canada’s forest products industry. It describes the crisis that the industry is currently experiencing, identifies the key causal factors, and highlights the impact of the crisis on forest communities. Lastly, it defines the factors likely to contribute to a resolution of the crisis so that the Canadian forest products industry can once again become prosperous, efficient and sustainable for the benefit of all Canadians.

The Committee is cognizant of the overall complexity of the current crisis affecting the Canadian forest products industry. In its study, the Committee decided to approach that crisis in a comprehensive manner, while mindful of the respective jurisdictions of the federal, provincial, territorial and Aboriginal governments.