Northern Peninsula loggers to receive funding

Aug. 2, 2011 – In response to commercial
timber harvesting challenges on the Northern Peninsula of Newfoundland, the
provincial government will provide funding of approximately $1 million to
offset costs associated with transporting pulpwood from the Northern Peninsula
to other markets.

“We understand that the loss of markets for
pulpwood is having detrimental effects on people throughout the province,
particularly on the Northern Peninsula, and this funding will bridge the gap
and enable commercial timber harvesters to return to work and begin
harvesting,” says Shawn Skinner, minister of natural resources and minister
responsible for forestry and agrifoods. “One-time funding will be provided to
offset high transportation costs to other markets where demand exceeds existing
supplies and will ensure the continued operation of commercial cutting operations
on the Northern Peninsula.”

Funding will be provided to the Northern
Peninsula Forest Resources Association and the Nordic Economic Development
Corporation to support the transportation of materials to market. The majority
of the pulpwood will be stored in Port au Choix from where it will be barged to
Nova Scotia. The total volume of pulpwood to be harvested through this
initiative is expected to be 25,000 cubic-metres.

“The pellet plant operated by Holson Forest
Products in Roddickton is nearing completion, at which time it will provide a
valuable market for pulpwood,” says Skinner. “This investment will bridge the
gap until the pellet plant in Roddickton is operational and can begin
manufacturing wood pellets for commercial use.”