The modernizing of Ontario's forest tenure system.

• Author: Gravelle, Michael
• Position: FORESTRY

Forestry is a key economic driver for Ontario's Northern and rural communities. More than 260 communities across the province are supported by this $12 billion sector, meaning the families in these communities rely on a healthy and prosperous forest sector. When the recession hit, the sector was also hit very hard and our government took bold steps to revitalize it, including introducing Bill 151, the Ontario Forest Tenure Modernization Act, 2011 (OFTMA), which received Royal Assent on June 1, 2011. This legislation will allow us to modernize our forest tenure system that governs who manages Crown forests, including how companies get wood and how wood is priced in Ontario.

[ILLUSTRATION OMITTED]

While the recession hurt, the prob lem was made worse by an out-of-date forest tenure system that gives a small number of companies control over most of the wood in the forest - wood that belongs to the province and the people of Ontario. As mills closed or slowed down, new companies wanted to invest and create jobs in Ontario, but the old system wouldn't let them.

This was demonstrated recently when we launched a Wood Supply Competitive Process to bridge the gap between our old tenure system and the modernized system we are working on today. We achieved some major successes. Aboriginal communities like Whitesand First Nation became involved, as well as companies like Rentech Inc., with new ideas to make jet fuel from wood. A number of existing mills were also able to expand operations, maintain existing jobs and create new ones. But this process took much too long. Just imagine what we could achieve with a tenure system that is flexible and responds to both existing ideas and innovation on an ongoing basis.

We've consulted with the forest industry, Northern and rural stakeholders and Aboriginal communities and there's an overwhelming consensus on the need for change.

After years of discussion, it's time for action. This modernized tenure system will see the creation of new collaborative governance structures, Local Forest Management Corporations (LFMCs) and Enhanced Sustainable Forest Licences (ESFLs). Both models will be guided by the same principles and objectives, which are to: create greater separation between consuming mills and the management of the forest; provide for meaningful Aboriginal and local community involvement; discourage the hoarding of wood; allow for new entrants; and adopt greater market forces to allocate and price Crown...