Ontario's new Minister of Forestry isn't prepared yet to take a position on who should control the province's forest assets. Michael Gravelle, the Minister of Northern Development, Mines and now Forestry, was in Timmins today for a $1000 a plate Liberal fundraiser. In an exclusive interview with TimminsToday.com, Gravelle refused to say whether he'd reverse a Harris government decision, made in the late 1990's, to give control (referred to as tenure) to private enterprise - the forest companies who harvest Ontario trees. TimminsToday.com asked Gravelle several times whether he was personally comfortable with Ontario resources, wood fibre and lumber specifically, going to Quebec. "We're working as best we can with with individual companies and corporations that are involved and we're trying to find some solutions," Gravelle said over and over. The Minister pointed to a tenure review process that the government initiated that includes eight public hearings on the issue, one of which was held in Timmins today. That process winds up in late October.
However, that timeframe seems to be too little too late for the town and people of Smooth Rock Falls who feel the McGuinty Liberals have abandoned their community in favour of Tembec, the town's former major employer. Mayor Kevin Somer told TimminsToday.com that he is "fuming mad" that the McGuinty Liberals won't step in and tell companies like Tembec that they can't take Ontario forest assets out of the province. "How many (Ontario) jobs are being lost to Quebec?" Somer said. "The bottom line is this - fibre and other wood assets belong to the people of Ontario and this government refuses to stand up for towns like ours."
The town of Smooth Rock Falls (SRF) has been working for two years on a multi-faceted "cluster" of new business ventures that could have created more than 100 full-time and as many as 200 spinoff jobs - a $5 million a year payroll the community desperately needs. The plan included the town's takeover of the deteriorating Tembec operation in SRF - which was permanently shut down by the company several years ago. The $55 million project is all but dead in the water because, according to TimminsToday.com sources, a senior official in Gravelle's ministry, Mark Speers, Project Director, Tenure and Pricing Review (MNDMF's Industry Relations Branch), told town officials in a private meeting in Sault Ste. Marie, that the ministry (McGuinty Government) "doesn't have the legal authority to help you" when it comes to granting the town tenure to fibre and other forest assets now controlled by companies like Tembec.
Which begs the question, if the government doesn't control Ontario's forests, who does?
TimminsToday.com asked Minister Gravelle, the MPP for Thunder Bay - Superior North, how he would feel if a load of wood fibre or Ontario logs were being transported through his riding into Minnesota or Manitoba, how would he react?
"We need quite frankly, to give everyone an opportunity to give their point of view ... and I'm looking forward to hearing what people have to say," is all Gravelle would say.
In March of this year, Tembec quietly announced a private deal with a Cochrane-based First Nations group (the Taykwa Tagamou Nation, TTN) in which they agreed to share their Northern Ontario (Cochrane area) timber licence. The full text of that news release is below.
The Mayor of Smooth Rock Falls, Kevin Somer, says his residents are steaming mad that the Ontario government refused to intervene because the agreement between Tembec and the TTN meant Ontario forest assets could be shipped to and processed in Quebec. Somer says his community has been sold down the river by the Ontario Liberals who won't reverse the Harris government decision.
The Tembec/TTN deal, which the company says they struck in the year 2000, politically handcuffed MP Charlie Angus and MPP Gilles Bisson, who, as New Democrats would commit political suicide if they ever spoke out publicly against a deal that, on the surface, appears to benefit a First Nations community.
"It was a brilliant move on Tembec's part," said one source close to the whole Tembec/Smooth Rock Falls scenario. "Brilliant but transparent at the same time," he added.
To complicate matters even further, Mayor Somer confirmed to TimminsToday.com that TTN and a smaller private company are entangled in a legal matter over the timber rights that further illustrates the need for the Ontario government to step in.
Mayor Somer confirmed to TimminsToday.com that the people of Smooth Rock Falls are fed up and a major expression of that anger is being lined up for next week although he wouldn;t say what form it would take.
"The bottom line is this - who does the Ontario government represent? The people of Ontario, or a Quebec-based corporation?" said Somer.
The government's tenure review process wraps up in late October. Minister Gravelle would only say that he understands the process is important.
Text of March 2009 Tembec News Release
IN THE FACE OF ECONOMIC UNCERTAINTY, TEMBEC AND THE TAYKWA TAGAMOU NATION USE THEIR UNIQUE PARTNERSHIP TO CULTIVATE NEW GROWTH
Introduction
Cochrane, Ontario March 28, 2008. A Multinational Forestry Company and First Nation prove that even the most trying times the forest industry has seen in decades isn't enough to get in the way of determined innovation and their propensity to find success where it is least expected.
Tembec Industries Inc. of Montreal Quebec and The Taykwa Tagamou First Nation of Cochrane, Ontario (TTN) have progressively chosen to use the trying times as motivation to succeed as opposed to justification for becoming defensive of each others interests. The two have combined each of their strengths to forge a ground breaking tenure (Timber Rights) sharing arrangement which not only helps each survive down turns in the economy like what we are living now, but provides each with increased long term viability as well.
Details
The arrangement sees Tembec take the bold move of sharing its timber licensing rights with TTN whenever there is a down turn in the economy which may be preventing their Mill(s) from utilizing the respective timber. This in turn allows TTN to market the timber at their discretion maintaining a $22 Million dollar per year business venture for the Taykwa Tagamou Nation, while also maintaining a $46 Million dollar per year local economy for the Town of Cochrane alone; much of which otherwise would have been negatively impacted or even shut down without the arrangement. Regionally (Cochrane, Timmins, Kapuskasing, Smooth Rock Falls and Iroquois Falls) the agreement can contribute $54 Million to the economy each and every year. As a result, this arrangement provides economic stability when the region needs it most - during current and future economic crisis's.
The agreement sees the First Nation receive unfettered access 300,000 cubic meters of timber to harvest each and every year. This in turn enables some 75 workers to perform the work regardless of the usual mill's capacity to take the timber or to run at all. Tembec maintains the first right to purchase the timber in the arrangement effectively ensuring that the local milling facilities are the primary beneficiaries. The whole arrangement will take place in the form of a timber license issued directly to TTN satisfying a long historical interest to take a more direct role in the management and guardianship of their resources.
The unique partnership established by the two parties in March of 2000 is the pioneering force behind them embracing each others interests in a forest composed of many competing interests. The partnership continues to pioneer new and exciting examples of how parties with different interests can work together to find new successes where success is least expected.
Quotes
Chief Dwight Sutherland states, "This agreement sees TTN take a large step toward reaching its goal of equality and justification relating to industrial natural resource development and tenure sharing. I'm excited to see the hard work of generations of TTN members pay off for our children and future generations to come, as we will no longer have to sit idly by and watch others benefit from our resources". Sutherland goes on to say, "We're excited to continue the hard efforts of our forefathers in working with our neighbours to build a mutually beneficial and collaborative relationship for all generations of all people to enjoy".
TTN's negotiator Peter Politis of For Evergreen Innovative Strategies Inc. states, "while Towns in Northern Ontario are being decimated and forced into economic ruin, Tembec and TTN have completely gone against the trend and forged a truly unique good news story. As a result of this inventive effort, the towns in this region are realizing an economic shot in the arm, at a time when most others are suffering a much worse set of circumstances". Politis goes on to say "It just goes to show that when two partners show the will to be innovative and get past historical differences, while concentrating on finding successes where they are least expected, there is no mountain too large to climb, no matter how different their general interests may be".
About The Taykwa Tagamou Nation
The Taykwa Tagamou Nation has a reserve located 14 km west of the Abitibi Canyon Hydro Generation Station between Cochrane and Moosonee. Due to the isolation of the reserve and lack of employment opportunities, the reserve was never occupied. In the early 1980's initiatives were taken by the TTN to find a new home for the Taykwa Tagamou Nation. In 1984, a new site was chosen and this has become the current location for Taykwa Tagamou. The community is located on a 177 hectare site in Bower Township, approximately 20 km west of Cochrane on Highway 574. Of the 335 members in the community, some 108 members live on reserve and while some 227 members live off reserve.
The Taykwa Tagamou Nation has aggressively pursued economic development since signing a pioneering relationship agreement with a large multinational forestry company in March of 2000. Currently, TTN owns a forestry company with an average annual sales of $16 million and a series of Hydro development companies pursuing hydro development opportunities estimated at over $5 billion.
About Tembec Inc.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. With operations principally located in North America and in France, the Company employs approximately 8,000 people. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available on its website at http://www.tembec.com/.
CONTACT
For Evergreen Innovative Strategies Inc.
Peter Politis
Senior Consultant,
705-272-8564
705-272-4816
mailto:p.politis%20@%20forevergreen.ca (no spaces)
Island Falls Forestry GP Inc.
Bryan Gelinas
Manager,
705-272-4290705-272-4370
