Wood allocation sparks licence debate.

• Author: Stewart, Nick
• Position: SPECIAL REPORT: FORESTRY

As the debate rages on about what should be done to quell the forest crisis, a movement is growing to enable communities to control wood allocation.

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One such voice is that of John Kapel Jr., owner of Timmins-based Little John Enterprises.

Along with his father, John Kapel Sr., he has run his valueadded sawmill without a proper wood allocation, for which he has fought for the last 27 years.

"I've succeeded despite, not because of, the current tenure system," Kapel Jr. says.

"Something seriously needs to be done about this, and we're not just talking about this just for our own sake, but for everyone."

Under the current system of Sustainable Forest Licenses (SFL), Crown land is allocated by the Ministry of Natural Resources (MNR). The license on the land is reviewed by the MNR every five years, and if the review is favorable, the license is renewed for another five years.

If the review is negative, however, the license is not renewed.

However, as reviews are held every five years, companies can essentially obtain the licenses in perpetuity, he says.

Dave Hayhurst, the MNR's manager of wood allocation, says only in the most extreme cases, are licenses revoked. In fact, he has not seen it happen once since the Crown Forest Sustainability Act was instituted in 1994.

However, some agreements are set out in every SFL where a commitment of wood from a specific management unit is dedicated to a particular mill. In this case, the SFL holder must ensure that his commitment is honoured and the mill in question receives its allocated portion.

While the numerous companies not included in the supply agreement can strike a deal with SFL holders to make some use of the licensed forest, they are largely at the mercy of companies who may potentially view them as a competitor.

What's more, this lack of a dedicated allocation can hamper a company's ability to expand, Kapel Jr. says.

As an example, he points to the fact that banks are unwilling to provide loans to fund potential expansions without a stable, reliable access to wood.

This lack of allocation can hamper a company in other ways as well, says Kapel Sr.

"At one point, John (Kapel Jr.) kept a book to track the jobs we had to turn down because we didn't have a proper allocation," he says. "By the end of just one year, it totalled in the millions."

These types of problems are endemic in the industry, Timmins Mayor Tom Laughren says.

By preventing communities from having a say in...