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Hi Mary & All, Nov 3, 2010
Briefly, forestry is a primary industry and primary industries generate the wealth that pay all bills. Sort of like photosynthesis in the traditional Biological economy. So it is in everyone's interest to have a prosperous forestry industry.
Currently, for a host of reasons that are beyond the scope of Naturens, it is far from prosperous. An economic study of world-wide pulp production (about 2005 I think and expressed as cost per unit round wood landed at the mill) showed Atlantic Canada to have higher costs than any other pulp producing area.
To access good quality timber it is usually necessary/desirable to cut the low grade wood as well and it helps generate profit if there is a market, such as pulp for this wood.
As you may have noticed, pulp mills have been closing or threatening to close unless they get power breaks etc. The implosion of Abitibi Paper [where 100 shares had a market value of about $1000 in 2003 and, after giving effect to the Abitibi-Bowater amalgamation where one Ab share became 0.06261 AB share in 2007, the resultant 6.261 shares now sell, at $0.035/share for, ~$0.22; a rather dramatic loss of 99.978% over 7 years] is one measure of the perfect storm that has hit the pulp industry.
In addition the financial meltdown of 2008 has decreased the demand & price for lumber so the forest industry has had some very tough years on the heels of tough years and I expect many have had to sell their equipment for a song & move on.
Yt, Dave Webster, Kentville
----- Original Message -----
From: Mary Macaulay
To: Nature Nova Scotia
Sent: Wednesday, November 03, 2010 4:16 PM
Subject: [NatureNS] is anyone else concerned about the "wood first" act before parliament - seems like biomass issues redoubled if these moves across canada
the "wood first" act - Bill C-429 has already gone through it's first reading and through committee and looks like it may become law very soon:
It mandates government to prefer wood for any and all projects:
"amend the Department of Public Works and Government Services Act (use of wood) by adding the following after subsection (1):
(1.1) Despite subsection (1), before soliciting bids for the construction , maintenance or repair of public works, federal immovables and federal real property, the Minister shall give preference to the concept that promotes the use of wood, while taking into account the cost and greenhouse gas emissions."
This started in BC where it is now law and is beginning to be adopted and/or looked at by other jurisdictions.
Can this be good - interested in other people's opinions. I just feel our forests are being threatened on every level.
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<DIV><FONT face=Arial>Hi Mary & All,
Nov 3, 2010</FONT></DIV>
<DIV><FONT face=Arial> Briefly, forestry is a primary industry
and primary industries generate the wealth that pay all bills. Sort of like
photosynthesis in the traditional Biological economy. So it is in everyone's
interest to have a prosperous forestry industry. </FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial> Currently, for a host of reasons
that are beyond the scope of Naturens, it is far from prosperous. An
economic study of world-wide pulp production (about 2005 I think and expressed
as cost per unit round wood landed at the mill) showed Atlantic Canada to have
higher costs than any other pulp producing area. </FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial> To access good quality timber it is
usually necessary/desirable to cut the low grade wood as well and it helps
generate profit if there is a market, such as pulp for this
wood.</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial> As you may have noticed, pulp mills
have been closing or threatening to close unless they get power breaks etc. The
implosion of Abitibi Paper [where 100 shares had a market value of about $1000
in 2003 and, after giving effect to the Abitibi-Bowater amalgamation where one
Ab share became 0.06261 AB share in 2007, the resultant 6.261 shares now
sell, at $0.035/share for, ~$0.22; a rather dramatic loss of 99.978%
over 7 years] is one measure of the perfect storm that has hit the pulp
industry. </FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial> In addition the financial meltdown of
2008 has decreased the demand & price for lumber so the forest industry has
had some very tough years on the heels of tough years and I expect many
have had to sell their equipment for a song & move on.</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial> Yt, Dave Webster,
Kentville</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=marymacaulay@hotmail.com href="mailto:marymacaulay@hotmail.com">Mary
Macaulay</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=naturens@chebucto.ns.ca
href="mailto:naturens@chebucto.ns.ca">Nature Nova Scotia</A> </DIV>
<DIV style="FONT: 10pt