New Brunswick government sets record straight on forestry royalties

The New Brunswick  government is setting the record straight on confusion in the forestry sector after it was reported that rates were set to be cut for companies by millions.

The Wolastoqey First Nation denounced the royalty slashes for large-scale businesses. The Madawaska First Nation Chief said that it appeared as though the province was favouring large-scale companies over smaller mills.

“Why are you cutting the royalty rates when you’re trying to make an excuse for not sharing with First Nations,” said Chief Patricia Bernard to Global News on Wednesday.

“(The provincial government is) Creating a system that is going to cause a lot more problems by doing so.”

She said she’d lost faith in the province’s ability to work with First Nations on forestry but said she’d be willing to work with the province to negotiate.

It comes as the provincial government cleared the air on “only part of the information,” which has created confusion in the sector

“The Regulation to be posted is in regard to the Private Woodlot Sustainability Fund that will allow monthly upward adjustment to the base prices,” said Nick Brown from the Department of Natural Resources and Energy Development.

“These upward adjustments will be based on commodity performance and will ensure a more predictable system, yet flexible to changing commodity prices.”

The province said that part of that royalty has not yet been posted for public comment.

The New Brunswick Woodlot Lot Owners Association hopes the province uses this as an opportunity to get better royalty rates for smaller producers.

“There are some very influential players here who get in behind closed doors and come out with a deal they say is in the best interest of the province but only for themselves,” said the association’s president, Rick Doucett.

“Sometimes, when these things go behind closed doors, the benefits we were hoping to achieve will get watered down.”

The provincial government estimates forestry in New Brunswick is a $1.8-billion industry, with most of its international exports shipped to the United States.