SPECIAL COUNCIL MEETING

Transcription

1 THE CORPORATION OF THE TOWN OF COCHRANE SPECIAL COUNCIL MEETING WEDNESDAY, NOVEMBER 8, 2017 COUNCIL CHAMBERS 6:00 PM Page ORDERS TO THE DAY 1. OPENING REMARKS AND ROLL CALL 2. DECLARATION OF PECUNIARY INTEREST 3. ADOPTION OF AGENDA 4. PETITIONS AND DELEGATIONS Faye Johnson - Ministry of Natural Resources and Forestry - Forest Management Process 5. ADJOURNMENT Page 1 of 39

2 AGENDA ITEM #4.1 STEWARDSHIP IN NATURAL RESOURCES MANAGEMENT Tenure Modernization Faye Johnson, R.P.F. Director Forest Tenure and Economics Branch Ministry of Natural Resources and Forestry Cochrane, ON November 8, Page 2 of 39

3 AGENDA ITEM #4.1 Ontario Tenure Modernization Setting the context The beginnings of our current system Why we had to change What changed How implementation is going 2 Page 3 of 39

4 Crown Ownership The Ministry of Natural Resources and Forestry (MNRF) is the steward of Ontario's provincial parks and protected areas, forests, fisheries, wildlife, mineral aggregates, petroleum resources and the Crown lands and waters Page 4 of 39 3 AGENDA ITEM #4.1

5 88% of Ontario s forests are publicly owned AGENDA ITEM #4.1 4 Crown Ownership Page 5 of 39

6 Page 6 of 39 Crown Ownership 66% of Ontario is forested 41% (385,000 sq km) located in the area where forest management activities occur 62% (240,000 sq km)of area actively managed is certificated sustainable by an independent organization 5 AGENDA ITEM #4.1

7 AGENDA ITEM #4.1 Ontario s Growing Stock 6 Expressed in solid block of wood over City of Toronto 11 metres high Add 10 cm/yr for growth Subtract 3 cm/yr for harvesting Subtract 1.5 cm/yr for natural disturbances Net growth is 5.5 cm annually Page 7 of 39

8 Page 8 of 39 Beginnings of our Current System Early 1900s Ontario government aspired to establish a pulp and paper industry as lever to develop and colonize northern Ontario Pulp and paper industry required massive infrastructure development Capitalization/financing required guaranteed supply of pulpwood Pulpwood Agreements negotiated to assure supply 7 AGENDA ITEM #4.1

9 AGENDA ITEM #4.1 Beginnings of our Current System 8 Source: Pross, A.P & ON govt Page 9 of 39

10 Page 10 of 39 Beginnings of our Current System Crown Timber Act 1952 Crown Management Units Government prepared timber management plans, funded silviculture, forest protection, compliance monitoring+ conducted forest operations activities. Company Management Units Government prepared timber management plans, funded silviculture, forest protection, compliance monitoring Companies conducted forest operation activities 9 AGENDA ITEM #4.1

11 AGENDA ITEM # Page 11 of 39

12 AGENDA ITEM # Page 12 of 39

13 AGENDA ITEM # Page 13 of 39

14 AGENDA ITEM # Page 14 of 39

15 AGENDA ITEM # Page 15 of 39

16 AGENDA ITEM # Page 16 of 39

17 AGENDA ITEM #4.1 Tenure Models Page 17 of 39

18 AGENDA ITEM # Historical Tenure Models Page 18 of 39

19 Page 19 of 39 Ontario s Forest Sector today A vibrant and important part of our economy, supports over 170,000 direct/indirect jobs (57,000 are direct jobs) Contributes approx. $5 billion to Ontario s annual GDP $15.5 billion in sales in communities are dependent on forest industry 30% of northern communities dependent on forest industry 18 AGENDA ITEM #4.1

20 Page 20 of 39 The Recession of 08 Consultation supported need for change resulting in tenure modernization initiative Mills closed or slowed down Forest dependent Communities negatively impacted Wood not harvested Forests with bankrupted mills returned to Crown New investment potential but limited opportunities 19 AGENDA ITEM #4.1

21 Tenure Modernization Overarching Policy Framework Goals Support a strong, vibrant and diverse forest industry while maintaining a healthy and productive Crown forest Enhance the social well being of all Ontarians by: optimizing the values derived from the Crown forest and recognizing the heightened interest of those who live in and near the Crown forest Be transparent, flexible, responsive, open and accountable to the people of Ontario Page 21 of 39 Build a resilient system that protects/creates jobs by maximizing use of available Crown fibre 20 AGENDA ITEM #4.1

22 AGENDA ITEM #4.1 Emerging Policies 21 Page 22 of 39

23 AGENDA ITEM #4.1 Emerging Economies 22 Page 23 of 39

24 Page 24 of 39 Emerging Societal Values Recognition/interpretation of Indigenous Treaty rights evolving Developing a common understanding of sharing natural resources Today over 10% of harvesting operations are undertaken by First Nation companies Today over 25% of tenure is held by Indigenous groups Two resource revenue sharing pilots recently completed 23 AGENDA ITEM #4.1

25 Tenure Models Existing Single Entity Sustainable Forest Licences (SFL) Shareholder/Partnership (SFL) Community based (SFL) Crown Agency Algonquin Park (CA AFA) New Crown Agency Local Forest Management Corporations (CA LFMC) Enhanced Sustainable Forest Licences (esfl) Page 25 of 39 Crown Managed (Crown) 24 AGENDA ITEM #4.1

26 Page 26 of 39 Tenure Modernization Key Themes Local Aboriginal & Local Community Involvement Full Utilization of Fibre Opportunities for New Investment Sustainable Forest Management Delivery Economic Viability and Competitive Wood Costs Flexible Governance Structures 25 AGENDA ITEM #4.1

27 Page 27 of 39 New Tenure Models LFMC What does a Local Forest Management Corporation look like? Crown Agency Community based (Indigenous and local communities) Board of Directors Market & sales of timber Open to new investment Consolidated Revenue Fund (CRF) charges submitted to Agency Innovation friendly 26 AGENDA ITEM #4.1

28 AGENDA ITEM #4.1 New Tenure Models LFMC 27 Page 28 of 39

29 New Tenure Models LFMC Nawiinginokiima Forest Management Corporation (NFMC) Mandate Manage Crown forests and provide for the sustainability of Crown forests in accordance with legislation To provide for Economic Development opportunities for Aboriginal Peoples Optimize the Value from Crown forest resources while recognizing the Importance of Local Economic Development To Market, Sell and Enable Access to a predictable and competitively priced supply of Crown forest resources Page 29 of 39 Also, there is an opportunity for Crown to expand LFMC s mandate 28 AGENDA ITEM #4.1

30 AGENDA ITEM #4.1 New Tenure Models LFMC 29 Page 30 of 39

31 New Tenure Models esfl Locally based solutions that are inclusive and collaborative Encourage meaningful involvement by First Nations, Métis and local communities in the governance and management of Ontario s forests Create efficiencies and maintain competitive wood costs Access to fibre for traditional users Page 31 of 39 Principle of full utilization means unused fibre available to others (new entrants, new products) 30 AGENDA ITEM #4.1

32 New Tenure Models esfl What does an enhanced Sustainable Forest Licence Company look like? Governance flexible (e.g. Shareholders, not for profit); not onesize fits all Board of Directors to include Indigenous and Community representation with opportunity for voting rights Independent GM hired to manage company and deliver sustainable forest management Consolidated Revenue Fund (CRF) charges submitted to Crown Page 32 of 39 Opportunity for new entrants 31 AGENDA ITEM #4.1

33 AGENDA ITEM # New Tenure Models esfl Page 33 of 39

34 Page 34 of 39 Tenure Modernization Initiatives to date 2012 Nawiinginokiima Forest Management Corporation (NFMC) is established by regulation, becoming the first Local Forest Management Corp (LFMC) Principles for the Implementation of Enhanced Sustainable Forest Licences are established 2014 Oversight Group established and review of Tenure Models initiated 2016 Completion of Tenure Review & report written 2017 Tenure recommendations accepted by Minister 33 AGENDA ITEM #4.1

35 Page 35 of 39 Review of Tenure Models Purpose of Review Assess how forest tenure models achieve or are moving towards the objectives of forest tenure modernization Objective 1: a more economically efficient allocation system Objective 2: opportunities for meaningful involvement by local communities and local Indigenous communities Objective 3: sustainable forestry 34 AGENDA ITEM #4.1

36 Page 36 of 39 Review of Tenure Models Observations In many locations, the tenure model has evolved to fit a unique set of social, economic, and ecological characteristics In some cases, SFLs are evolving toward meeting forest tenure modernization objectives All current tenure models have strengths Local/regional economy, population density, forest type, number/type of mill facilities, and markets also very important Oversight Group is considering how to encourage further movement towards the modernization objectives in the models, e.g. transparency, governance, Indigenous and local community involvement, and encouraging new entrants. A report and recommendations was accepted by the minister in the Spring of MNRF, together with Oversight Group, is developing an implementation plan 35 AGENDA ITEM #4.1

37 Page 37 of 39 Tenure Lessons Learned Transition to new models is a long term goal that requires significant investment of time Significant effort and process to align interests of First Nations, local communities and industry The process to new model is instrumental in building relationships (time and space) There is little incentive to form an esfl A number of conditions would help to ensure a successful transition to an esfl There will be challenges in filling specialized/management positions 36 AGENDA ITEM #4.1

38 AGENDA ITEM #4.1 Conditions of Success Relationships, relationships, relationships Recognition that this is about economic development Willingness of industry and government to assist in capacity building Leap of faith 37 Page 38 of 39

39 AGENDA ITEM #4.1 Questions? 38 Faye Johnson, R.P.F Page 39 of 39