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RNNR Committee Report

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CHAPTER 1 — THE FOREST RESOURCE AND THE FOREST INDUSTRY IN CANADA

The Forest Resource

Covering more than 400 million hectares, or about half the country’s total area, Canada’s woodlands account for 10% of our planet’s treed areas, and 30% of its boreal forest. But not all of Canada’s woodlands are suitable for so-called commercial activities, in other words capable of producing forest products. It is estimated that commercial forest developed for industrial purposes covers just over 140 million hectares, less than one million of which is harvested every year. Another 150 million hectares of commercial forest remains untouched and has not been developed for production. This leaves close to 110 million hectares of non-commercial forest, better suited to non-timber values, where it is unlikely that commercial logging will ever take place.

The country’s forest regions are classified by type of cover, as defined by the proportion of softwood (conifers) they contain. Softwood cover, concentrated mainly in the north and predominant in British Columbia, accounts for the largest area (66%). Mixed woodland, which is found in the Maritimes, central Quebec, Ontario and the Prairies, ranks second in area with 22%. Hardwood forests (mainly birch and maple) account for 12% of the total wooded area, in a wide band across southern Quebec and Ontario that narrows in southern Manitoba and Saskatchewan and widens again in Alberta, where poplar and aspen predominate.

British Columbia, Ontario and Quebec share almost 60% of Canada’s inventoried productive forest land. The Prairie Provinces have just under 25%, and the four Atlantic Provinces almost 10%. About 93% of Canada’s forested territory is Crown land, managed by governments: the provinces hold 77% and the federal government 16%. In Nova Scotia and Prince Edward Island, woodland belongs mainly to private owners. Federal Crown land is found especially in Yukon and the Northwest Territories, which, although they form 39% of the country’s total surface area, have only 9% of non-protected productive woodland.

Private woodlots, which represent over 7% of the country’s productive woodland, belong to some 450,000 owners, including individuals, families, corporations and communities. About 80% of these private woodlots are located east of Manitoba, most in the Maritimes and in Quebec. Their importance is by no means negligible; in fact, in these regions, they are located close to mills and processing plants, and they provide more wood than their proportion of forested area would suggest. For example, in Quebec the roughly 130,000 owners of private woodlots occupy 11% of the forest land base, but contribute more than 20% of the timber supplied to mills.

Under the Constitution, the provinces have management responsibility over the natural resources within their territory. This means it is the provinces that hold and manage forests on Crown lands within their borders, develop legislation, regulations and policies, issue logging permits, collect stumpage fees and compile forestry data. In the three territories, it was until very recently the federal government that managed natural resources. However, discussions and negotiations have now led to the implementation of a devolution process for entrusting these responsibilities to the territorial governments.

It is also important to state that environmental protection is not specifically mentioned in the Constitution Act, 1867. In practice, the environment is a matter of shared jurisdiction between the federal and provincial governments.

The federal government’s responsibilities include trade and international relations, Aboriginal affairs, management of federal lands, and environmental protection. Over the years, Ottawa has played a leading role in research, particularly on control of the pests and diseases that attack the country’s vast stands of trees, and more recently on global issues such as climate change.

The federal government also plays a role in helping to build consensus amongst stakeholders on important forest-related issues. The federal government notably works in a co-operative and collaborative manner with provincial and territorial governments through the Canadian Council of Forest Ministers (CCFM). The CCFM provides leadership on national and international issues, and sets direction for the stewardship and sustainable management of Canada's forests. Among other things, it is responsible for the National Forest Information System and the National Forestry Database Program, the Canadian Criteria and Indicators Framework, and the development of the next National Forest Strategy.

Canada is one of the few developed nations that still have vast natural forests untouched by human activity. This privileged situation, however, gives it a stewardship role in the eyes of many Canadians and of the international community. There are those who consider that greater protection should be given to Canada’s forests, which includes a continued focus on sustainable forest management practices by industry and governments.

Canada’s Forest Economy

In 2006 the forest sector contributed $36.3 billion to Canada’s gross domestic product (GDP), which represents approximately 3% of Canada’s total GDP. That same year, over 300,000 Canadians were directly employed in the industry, and another 500,000 to 600,000 indirectly depended on the forest industry for their employment.

Canada’s forest industry is oriented toward foreign markets. No country in the world exports more wood products than Canada. Predictably, the bulk (78%) of Canada’s exports of wood and wood products goes to the United States. In 2006, total exports of primary wood products (logs, pulpwood, etc.) were valued at $980 million, total exports of wood-fabricated materials (lumber, plywood, etc.) were valued at $16.4 billion, and total exports of pulp and paper products were valued at $20.9 billion. All told, the value of Canada’s forest products exports exceeded $38 billion dollars. Canada’s forest industry also contributed some $28 billion to Canada’s trade surplus.

Canada’s forest industry plays a central role in many rural and remote communities. Natural Resources Canada (NRCan) reports that there are over 300 such communities across the country that are economically dependent[1] on the forest industry. The Committee is cognizant that the well-being of rural Canada and that of the Canadian economy more generally depends significantly on a strong and vibrant forest products sector.

The nature and type of forest sector activities vary from region to region and from community to community, and reflect the comparative advantages of these various areas. Communities in Western Canada tend to specialize in the manufacturing of wood products (e.g., lumber) while those in Ontario, Quebec and the Atlantic Provinces are involved in everything from softwood lumber to pulp, paper and newsprint manufacturing. Forest biomass, meanwhile, has emerged as an important source of energy across Canada. Over half of the total energy used by Canada's forest industry for heating and for its manufacturing processes is derived from biomass (waste byproducts, sawdust, bark, etc).

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[1]      Economically dependent communities are defined as those where the forest sector makes up at least 50% of the economic base of these communities. Source: Natural Resources Canada, The State of Canada's Forests 2007.