The provincial government is capable of stabilising the forest industry in New Brunswick, Canada, but is dragging its heels, New Brunswick Forest Products Association head Mark Arsenault has been quoted as saying. The comments related to the time taken for the Government to issue its biomass and long-term wood supply policies, the Telegraph-Journal said.

“I think we’re moving in the right direction and the government understands these things, but I do believe we have to move on these issues a lot faster,” Arsenault said. The two biggest issues facing the industry are energy and long-term wood supply. The report said future of New Brunswick mills would remain “in limbo” if energy costs were not reduced or the certainty of knowing there will be enough trees to process into paper and lumber was returned. “We have to find every way possible to reduce our costs and top of the list is energy,” Arsenault said. “That’s the biggest culprit right now.” A provincial biomass strategy would give firms the certainty they need to consider investments in cogeneration – the process of burning forest waste products, such as branches and leaves, to create steam that can be used in the manufacturing process or in the generation of electricity, the report said. “There (won’t) be any investment in cogeneration until we get a biomass policy,” said Arsenault. Without firm direction from government on biomass and wood supply, more mills could be in jeopardy, he said. “We need to know what the wood supply is going to be,” he said. “As companies are making their decisions as to what mills they’re going to shut down, wood supply and energy are at the top of their list.”