Backtracking on forestry standards.

A recent Ontario government decision to change its paper procurement policy does little more than threaten an already volatile forestry industry, according to Jamie Lim, president of the Ontario Forest Industries Association (OFIA).

As a consumer of thousands of tons of paper per year, the province's Ministry of Government Services has stated as of January 2008, that 30 per cent of the paper it purchases must be Forest Stewardship Council (FSC) certified. This number will increase to 50 per cent by 2012.

This runs counter to a 2004 announcement by the Ministry of Natural Resources mandating all of Ontario's forests to be certified to one of three internationally-recognized standards: the Canadian Standards Association (CSA), Sustainable Forestry Initiative (SFI), and FSC.

By singling out one of the three certification standards, the government threatens to weaken the others, Lim says.

"Everything is so fragile in our sector right now, and do you really want to rock the boat? The boat is barely floating and some would say it's sinking, so why would you create more uncertainty in this business environment?"

The decision is especially puzzling given the government took out newspaper ads in recent years to trumpet the value of the province's three certification standards.

While the exact dollar value of the province's annual paper procurement is practically impossible to determine, it represents a "substantial chunk" of the $3 billion of Ontario's procurement spending, according to Ministry of Government Services spokesperson Greg Dennis.

Although the undetermined financial impact is a problem, it's the message that the new "FSC-only focus" sends to the world that is the most damaging concern, Lim says.

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However, Dennis counters that the move leaves sufficient leeway for a healthy balance and may not affect paper-producing companies at all.

"There's still 70 per cent for non-FSC paper, so it's not like they're being shut out," Dennis says.

The move to a single-certification policy was done out of a motivation for environmental friendliness Dennis says. FSC was selected because many of its policies are in line with the Ministry of Government Services' social and environmental issues including the setting aside of Crown land for parkland use.

He says the financial cost of adopting FSC certification, which can start from several hundred thousand to millions of dollars, can be offset by Ontario government initiatives already in place. He points to the MNR's Forest Sector Prosperity Fund and loan guarantee program as examples.

Lim argues that Ontario forest companies should not have to adopt an additional certification after being prompted by the Ontario government to adopt one of the three programs.

This is especially true, she says, given the industry is struggling to keep mills open and cannot afford to spend money on becoming FSC-certified.

While Dennis is adamant the move is not an indicator that the SFI and CSA standards are inferior to FSC, the Timmins Chamber of Commerce feels differently.

"It's a slap in the face to the companies who chose the other two, and to make it worse, we don't know that it's been all that well thought out," says Marilyn Wood, president of the Timmins Chamber of Commerce.

Both Wood and Lim suggest the government should reconsider its policy in favor of one that incorporates all three certifications required of Ontario forestry firms. Both the Timmins Chamber and OFIA are lobbying the newly appointed Minster of Government Services, Ted McMeekin, to make some changes before the new policy comes into effect.

"There's still some opportunity to amend the policy, so that's our hope right now," Wood says.

www.ofia.com

www.timminschamber.on.ca

www.cbs.gov.on.ca

By NICK STEWART

Northern Ontario Business