Canada forestry sector is key sector to the Canadian Economy Canada forestry sector has faced protectionism policies - https://www.canadianmanufacturing.com/financing/canfor-to-curtail-operations-at-all-but-one-of-its-sawmills-in-british-columbia-234114/ The federal government under Justin Trudeau has done little to support the forestry sector. Trudeau has made the comment “Canada should know for its resourcefulness and not its resources”

1. 2019 Election –
Forestry Sector -
Canada
Paul Young CPA CGA
July 23, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Introduction
• Canada forestry sector is key sector to the Canadian Economy
• Canada forestry sector has faced protectionism policies -
https://www.canadianmanufacturing.com/financing/canfor-to-
curtail-operations-at-all-but-one-of-its-sawmills-in-british-
columbia-234114/
• The federal government under Justin Trudeau has done little to
support the forestry sector.
• Trudeau has made the comment “Canada should know for its
resourcefulness and not its resourcs”

4. Agenda
• Commodity Prices
• Global Housing Market outlook
• Housing Starts – North America
• Merchandise Trade
• Wages / Forestry Sector
• Employment
• Issues facing Forestry
• Justin Trudeau and the Forestry Sector
• Technology and Forestry Sector
• West Fraser and Forestry
• Forestry Practices / World
• Blog – Forestry
• Environment / Forestry
• What’s next

5. Commodity Prices
Source - https://www.scotiabank.com/ca/en/about/global-economics/commodity-price-index.html or
“Softwood lumber prices slowly recover from
recent lows: May 2019”
Source - https://www.woodbusiness.ca/softwood-
lumber-prices-slowly-recover-from-recent-lows-
may-2019/

6. Global Housing Outlook
Source - https://www.telegraph.co.uk/business/2019/05/16/global-
property-boom-house-prices-hit-breaking-point/

7. Housing Starts
Source – BMO, RBC, Scotiabank and US Government

8. Merchandise Trade
Source - Stats Canada

9. Forestry Sector (Wages)
Source - https://www.livingin-canada.com/salaries-for-forestry-professionals-canada.html or
https://www150.statcan.gc.ca/n1/daily-quotidien/190530/dq190530a-eng.htm
Average wages annually $52,800/year
• Forestry Sector pays between 25% to
70% higher wages than the service
sector
• Forestry sector personal income tax
ranges are between 35% to 40%

10. Forestry Employment
Source - https://cfs.nrcan.gc.ca/statsprofile/employment/ca

11. Issue facing Forestry
• Softwood Lumber dispute - https://www.bnnbloomberg.ca/economics/video/overall-impact-of-
softwood-lumber-dispute-minimal-for-canada-economist~1108540 or
https://www.globalwoodmarketsinfo.com/canada-has-filed-appeal-against-wtos-april-ruling-in-
softwood-lumber-dispute-with-us/
• Carbon Tax – Carbon tax is added on to the cost of production
https://www.bnnbloomberg.ca/commodities/video/applying-carbon-tax-without-cutting-back-
regulations-may-be-costly-jack-mintz~1649746
• High stumpage cost - https://www.timescolonist.com/business/teal-jones-shuts-down-logging-in-
honeymoon-bay-citing-high-log-costs-1.23841024
• Hydro Rates - https://www.drydennow.com/local/rickford-aims-to-cut-costs-for-forestry-sector
• Excessive regulations
• Small business tax reforms - https://www.bnnbloomberg.ca/economics/video/cfib-concerned-by-
potential-tax-hits-to-small-businesses-in-2019~1560874

12. Justin Trudeau and Forestry Sector
Source - https://www.sudbury.com/letters-to-the-editor/forest-industry-isnt-a-
priority-for-justin-trudeau-679008
“My predecessor wanted you
to know Canada for its
resources. I want you to know
Canadians for our
resourcefulness,” he said.
“Pulp and paper workers ask Trudeau to
fight for their jobs
”Source - https://unifor.org/en/whats-
new/news/pulp-and-paper-workers-ask-
trudeau-fight-their-jobs
Source – April 13, 2018

13. Technology / Forestry Sector
Source - https://www.woodbusiness.ca/how-technology-is-transforming-bcs-forest-industry-
5248/
• Investment into new technologies is revolutionizing the way Canada’s forest industry does business.
The federal government reports between 2005 and 2015, Canada’s forest industry cut its total energy use
by 31 per cent and reduced its greenhouse gas emissions by 49 per cent by generating bioenergy from
waste products and increasing energy efficiency.
• AI and Forestry - https://www.weforum.org/agenda/2018/09/ai-can-help-us-map-forests-down-to-
each-tree/
• Automation - https://www.woodbusiness.ca/fully-automated-applying-robotic-solutions-to-the-
sawmill/
• Supply Chain/Digital = https://www.poyry.com/news/articles/how-will-digitalisation-boost-
forestry-operations

14. West Fraser Forestry
Source -
https://www.canadian
manufacturing.com/fina
ncing/west-fraser-says-
worst-of-its-b-c-mill-
cuts-done-after-wave-of-
curtailments-236315/

15. Forestry Practices / World
• Amazon “Over the past decade, previous governments had managed to reduce deforestation
with action by federal agencies and a system of fines. But Mr Bolsonaro and his ministers have
criticised the penalties and overseen a fall in confiscations of timber and convictions for
environmental crimes. Last month, the far-right president accused Inpe's director of lying
about the scale of deforestation in the Amazon and trying to undermine the government. It
came after Inpe published data showing an 88% increase in deforestation there in June
compared to the same month a year ago. ”-https://www.bbc.com/news/world-latin-america-
49415973
• Canada is one the best in the world when it comes to forest management practices -
http://www.somcon.com/content/canada-most-experienced-country-sustainable-forest-
management
• Highest % of forest to Land - https://www.worldatlas.com/articles/state-of-the-world-s-
forest-the-most-wooded-countries-in-the-world.html (It should be noted that Canada has vast
sub-arctic region that has little or no trees.
• Canada is very large forest area which is 2nd in the world. Only Russia has larger area of forests
- https://earthnworld.com/countries-with-the-largest-forest-area/

16. Blog – 2019 Election - Forestry
Here is my blog on forestry
• @JustinTrudeau you need to stop lying that you stand up for jobs, because you do not
• - https://www.slideshare.net/paulyoungcga/2019-election-natural-resources-foretry-sector-canada-july-2019
• @jjhorgan do you even stand up for the resources sector? The forestry sector is in a slump and you say nothing, why?
Oops, you are too busy fighting @jkenney on getting goods to market, right?
• - https://www.slideshare.net/paulyoungcga/2019-election-natural-resources-foretry-sector-canada-july-2019
• @VictorFedeli @PremierScottMoe
• NS - https://www.canadianmanufacturing.com/financing/closing-n-s-pulp-mill-would-cost-2700-jobs-decimate-
forestry-industry-union-237079/
• https://www.ctvnews.ca/business/closing-n-s-pulp-mill-would-cost-2-700-jobs-union-
1.4540600?utm_campaign=trueAnthem:+Trending+Content&utm_content=5d4c2070a281bd0001aff2fc&utm_medium=
trueAnthem&utm_source=twitter
• I see @JerryPDias finally shows up to support jobs. I am guessing until the actual threat of closure that Jerry Dias takes
little or no interest, right?
•

17. Environment / Forestry
• https://www.cbc.ca/news/canada/edmonton/alberta-wildfires-climate-change-1.5168355
• It would be nice if Mr Flannigan look at all angle of policies instead of blaming everything on CO2.
• Ontario Budget - https://www.cbc.ca/news/canada/thunder-bay/ontario-forest-firefighting-budget-1.5099971
• Forest Management Practices have been issues for years, but you say nothing, why? https://www.slideshare.net/paulyoungcga/2019-election-climate-change-
and-the-environment-canada (See slide - 25) or https://www.slideshare.net/paulyoungcga/forest-management-practices-may-2019
• Forestry mills closure - https://business.financialpost.com/commodities/sawmill-closure-in-fort-st-james-prompts-declaration-of-financial-
crisis?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook&fbclid=IwAR1MJUz2Gv9r99sgef5F1Krgi17pfKjxV5vkufZ20UG-nYw-
W_y44V7ZqFo#Echobox=1563481096
• Canada forests are a carbon sink - https://policyoptions.irpp.org/magazines/june-2018/canadas-carbon-sinks-dont-mean-we-can-ease-off-on-climate-policy/
• NDP / AB https://edmontonjournal.com/news/politics/alberta-premier-rachel-notley-defends-cut-in-wildfire-budget
• Eco-terrorism is on the rise - https://www.slideshare.net/paulyoungcga/rise-of-ecoterorrism - https://www.hstoday.us/subject-matter-
areas/counterterrorism/isis-claims-escalating-use-of-wildfire-arson-as-terror-tactic/
• How about many governments are using floods and forest fires to promote their climate agenda? https://ottawacitizen.com/news/local-news/floods-here-
dry-riverbed-upstream-momentum-grows-for-review-of-dam-controls-on-ottawa
• Poorly constructed environmental policies - https://www.forbes.com/sites/chuckdevore/2019/02/25/wildfires-caused-by-bad-environmental-policy-are-
causing-california-forests-to-be-net-co2-emitters/#13dbeee85e30
• Poor urban planning - https://www.slideshare.net/paulyoungcga/urban-planning-issues-facing-urban-planners-april-2019
• UN Agenda 2030 which is move people to the cities - https://www.slideshare.net/paulyoungcga/agenda-2030-sustainable-development
• Transmission lines and Forest Fires - https://www.ecmag.com/section/systems/link-between-power-lines-and-wildfires
• https://www.cbc.ca/news/canada/sudbury/railway-sparks-caused-massive-timmins-fire-mnr-1.1331900 Railways and Forest Fires
• Other sources - https://www.slideshare.net/paulyoungcga/2019-election-climate-change-and-the-environment-august-2019

18. What’s next
• All level of governments need to work on integrated strategy for Forestry
including streamlining regulations, tax fairness, hydro, fees, etc -
https://www.slideshare.net/paulyoungcga/2019-election-canada-and-global-
competitiveness-may-2019
• Next government needs to push for reforms at WTO including a better dispute
mechanism, reduction in protectionism policies, etc. -
https://www.slideshare.net/paulyoungcga/why-do-we-need-the-wto
• The next government needs to stop looking for ways to tax business, i.e. carbon
tax or plastic tax or other taxes.
• The next government needs to focus on port expansion as part of supporting
getting goods to market.