NDP, PC, OLP Responses to NOMA, FONOM, NOAAC and OFIA June, 2014
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NDP, PC, OLP Responses to NOMA, FONOM, NOAAC and OFIA
June, 2014
Ontario’s forestry sector is experiencing a rebound in 2014 and is looking for government support to ensure that the
province can maximize the full potential of its natural resources. Ontario is faced with many important challenges and
the 2014 election comes at a pivotal time.
NOMA, FONOM, NOAAC and OFIA submitted to all three Party Leaders a joint election commitment letter that sought
feedback on 5 critical issues to Ontario’s forestry sector. The following is a summary of their response.
1) Wood Supply- If your Party forms the next government, will you commit to permanently protect
Ontario's production forest land base within the Area of the Undertaking for industrial use at least 26 million
cubic metres that can be sustainably derived on an annual basis? Further, in support of this commitment, will
you:
Conduct a socio-economic impact assessment on all legislation, regulations and policies that could reduce the
provincial fibre supply or increase delivered wood costs.
Ensure that any new or revised Ontario regulations or policies, associated with the Endangered Species Act
(ESA) or otherwise, do not result in any increase in costs for the forest products sector, or unnecessarily
reduce the production forest land base or fibre from the industrial fibre basket.
We would sit down with industry There is currently approximately From our own consultations across the
and other stakeholders to discuss 29 million m3 available for province, we believe that Ontario
any and all ideas you might have harvest annually under the forest forests will support 26 million cubic
on this very important issue. management regime. At present, metres per year. You once had that
We are committed to ensuring the forestry industry is not close amount of allowable cut when the last
that Crown forest lands and to fulfilling the annual harvest PC government was in power, but now
allocated in a way that maximizes target – the industry only you have half that.
jobs, protects the environment, harvested 14 million m3 in We will guarantee that you return to
and respects the rights of First 2013/14. that former level of supply.
Nations communities. We will If given another mandate to It was the PC party alone that tabled
support any efforts aimed at govern, a Wynne administration an amendment to the Endangered
providing certainty. will fully support our forestry Species Act that would have ensured
An Ontario NDP government will industry in utilizing the full all social and economic impacts be
conduct socio‐economic impact available harvest (29 million considered before changes are made
assessments on all legislation, m3/yr), and commit to reviewing to the Act, but the Liberals and the
regulation and policy that could the harvest levels if the forestry NDP rejected it. Once elected, we will
reduce the provincial fiber supply industry achieves a full harvest. ensure that amendment becomes law.
or increase delivered wood costs Before this election, the Wynne The ESA is a perfect example of red
through additional regulatory government was actively tape that not only duplicates the
requirements for permits and reviewing the Crown Forest already heavily-regulated CFSA but
approvals. Sustainability Act (CFSA) and the adds misery to your already tough slog
We believe that Northerners Endangered Species Act (ESA), of trying to survive a government that
must have a greater say over the with the goal of removing misunderstands you. An Ontario PC
natural resource base on, which redundancies where the two Acts government will reduce red tape in
much of the northern economy is overlap. Where approved forest this province by a third within the first
based. plans have followed specific rules three years of taking office.
and conditions, we no longer
require them to apply for
additional ESA permits.2) Tenure Reform- If your Party forms the next government, will you respect and endorse the measured
direction captured in the Ministry of Natural Resources Principles for Enhanced Sustainable Forest Licence
Implementation Document (Minister Gravelle, dated September 24, 2012) and Tenure Direction Letter
(Minister Orazietti, dated December 16, 2013).
We support measures aimed at providing If given another mandate to Under an Ontario PC
certainty regarding Ontario’s efforts to govern, we will remain government, we will create a
modernize our forest tenure system. We are committed to the work we forest tenure system that is fair
committed to working with industry, have accomplished on tenure and transparent, and that
communities and First Nations in a manner modernization and the provides the certainty that you in
that is consistent with protecting and direction set in the Principles the forest industry need to invest
creating jobs. Current tenure models that of Enhanced Sustainable in equipment, create more jobs
are achieving success should be maintained Forest Licence (ESFL) and convince workers to head
and any potential changes should be Implementation Document, North to both live and prosper.
carefully evaluated to ensure stability. We and the tenure modernization
support the Ministry of Natural Resources’ letter of December 2013.
efforts to provide certainty in consultation
with stakeholders, communities and First
Nations. We will continue to work with you
in the future.
3) Competitive measures
a. Roads funding- If your Party forms the next government will you restore the Provincial Forestry Roads
Program to $75 million per year?
The Ontario NDP looks forward Our proposed budget would have provided We think Ontario should be the
to sitting down with the approximately $38 million in funding for the number one destination for
industry to discuss ways that Forest Access Roads program. Furthermore, forestry investment and job
the provincial government can if re-elected, we would increase road creation in North America.
assist the industry in funding to approximately $60 million for To ensure that Ontario seizes
maintaining and constructing 2015-16 and for 2016-17. This is a total the growing opportunities in
these roads. Forestry road cuts investment of $158 million bringing the this sector, we need to create
are part of north-wide cuts that three-year average to more than $50 million a competitive business
Liberals have implemented. We allowing industry to plan construction and environment – one that will
are maintaining $29 billion over harvesting activities in advance. We are also stimulate investment, help
10 years for transportation committed to working with the forestry maintain the 200,000
infrastructure and we will invest industry (through the Road Review jobs that forestry provides in
an additional $250 every year Committee) to analyze a range of options to over 260 communities across
for road infrastructure and best provide long-term funding certainty the province (PC Whitepaper:
further invest in forestry roads. that improves and maintains the network of Path to Prosperity A CHAMPION
forest access roads for those who depend on FOR NORTHERN JOBS AND
them. RESOURCES)b. Stumpage rates- If your party forms the next government will you promote a competitive integrated Ontario
forest products sector by setting the “Fixed” portion (combination of minimum + forestry futures + forest
resource inventory) and the “residual stumpage price” of the Crown dues rate for poplar and birch at
competitive rates?
We will work with industry Ontario Liberals recognize the importance of N/A
to negotiate competitive the forestry industry and the vital role that it
stumpage fees and continue plays in our province’s growth.
the good work that industry Taking into account the recovering economy
has already done. and the health of the forestry industry, this
past April our government extended the
reduced stumpage prices for another year.
We believe that all Crown timber resources
sold to private industry must return a fair
value to the people of Ontario. If returned to
government, we will continue to monitor the
necessity of this reduction for the health of
the forestry sector.
4) Energy- If your Party forms the next government will you commit to the development of a Manufacturing Energy
Strategy that includes the following:
Make permanent the Northern Industrial Electricity Rate (NIER) program and ensure it is adequately funded.
Maintain the Industrial Conservation Initiative (ICI or 5 CP).
Direct the Ontario Power Authority to work with the OFIA to identify opportunities for energy conservation
and cogeneration and develop implementation programs.
Provide effective incentive programs that promote the re-investment of energy efficient manufacturing
equipment and processes that will maintain jobs and put Ontario’s natural resources to work.
The Ontario NDP would Over the longer-term (2013-2032) costs My Million Jobs Act will abolish
-Make the NEIR program are being reduced by a total of $70 billion wind and solar subsidies and re-
permanent and adequately largely as a result of: establish affordability as the
funded; -Deferring new nuclear reactors at foundation for electrical policy.
-Maintain the five CP Darlington that are not required, We will get the energy file right.
program; representing approximately $15 billion in
capital investments that are not currently Stop expensive and
-Direct the OPA to work with
required; counterproductive power
the industry on conservation
-Reduced prices for renewable energy subsidies, pare down costly and
initiatives; and
generation; unnecessary bureaucracy, invest
in affordable and clean nuclear-Encourage industry use of -Sector efficiencies being implemented at and hydroelectric energy, import
energy efficient machinery Ontario Power Generation and Hydro hydro from Quebec and other
and equipment with forestry. One that have yielded savings of jurisdictions as required and take
When it comes to industrial approximately $500 million over the past advantage of cheap and
hydro rates, Ontario does not three years alone; abundant natural gas. Nothing
compare well to a number of -New IESO rules that allow for the has been more damaging to
competing jurisdictions. The dispatching of wind generation facilities; household budgets and to our
result is that too many and economy than Ontario’s soaring
companies are either reluctant -Only renegotiating Non-Utility Generator electricity prices. Heavily
to invest in Ontario or are contracts where they offer cost and subsidized wind and solar power
leaving our province to set up reliability benefits for Ontario’s electricity contribute to already-high prices
elsewhere. consumers. that are forecast to increase by
The Ontario NDP will eliminate Finally, to ensure conservation incentives 42 per cent over the next five
the massive waste in our continue to be available for smaller years.
hydro system, which has business consumers, we are committed The Million Jobs Act will abolish
caused prices to skyrocket. to another six years of conservation wind and solar subsidies, and re-
The Ontario NDP will take funding through the new Conservation establish affordability as the
immediate steps to rein in First Framework (2015 - 2020). Targeted foundation for electrical policy.
soaring hydro costs, including programs for businesses are a We will get the energy file right.
consolidating hydro agencies. requirement under the new framework. We will control energy costs, in
We will lower the threshold If returned to government, we will part by restoring local control
for eligibility in the existing expand the Industrial Conservation over expensive wind and solar
Global Adjustment program Initiative to include eligible businesses energy projects.
(i.e. heavy user industrial with monthly peak demand greater than
hydro rate) to all companies in three megawatts, down from the current
sectors that have been threshold of five megawatts.
suffering most from The Industrial Electricity Incentive offers
uncompetitive industrial companies that invest in Ontario reduced
electricity rates. electricity rates for setting up a new
facility or expanding their operations in
Ontario and create jobs. Starting this
year, we will provide broader eligibility
for new applications for 10-year contracts
under the IEI program to allow for
participation from a wider range of
companies.5) Ontario Building Code- If your Party forms the next government will you support adopting the National Building Code’s standards for mid-rise construction and the use of wood systems? The Ontario NDP believes that we The Ontario Wynne government The Ontario government of today need to promote Ontario wood. would have already passed a six- has not cued into the fact that Other jurisdictions have already storey wood frame building wood is the only truly renewable adopted legislation that allows for regulation if it wasn’t for the building material in the world. 6 storey wood frame buildings. unnecessary election forced by the We need to ensure that we learn opposition parties. *Ontario Forestry Industry from previous examples and Revitalization Act (Bill 13) proposed make Ontario competitive. We If re-elected, Ontario Liberals will by Nipissing MPP Vic Fedeli have supported Private Members change the building code to allow Bills that attempted to change six-storey wood-framed buildings to building codes to allow for 6 encourage the construction of mid- storey wood frame buildings so rise, mixed-use buildings. that we can discuss them in committee taking into account all concerns.
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