|
|||||
| Return to 2005 News Releases | |||||
|
|
News
Release |
||||
|
Joyce pleased Minister to reverse stumpage fee increase Calls on Cabinet to approve the change immediately November 9, 2005
|
|||||
|
Eddie Joyce, Opposition Forestry Critic and MHA for the District of Bay of
Islands, says he is pleased that Natural Resources Minister Ed Byrne has
apparently agreed to reverse the increase in stumpage fees announced in
October. These increases would have forced independent logging contractors
and sawmill operators to pay extra fees that would have been retroactive to
April 1st, 2005. Joyce raised concerns regarding this new government fee increase on October 31st; an increase that would have negatively impacted logging contractors and sawmill operators in the province. Minister Byrne in recent interviews has announced that this 20 per cent increase on royalties and stumpage fees retroactive to April 1st, 2005 would now be taken back to Cabinet and the decision reversed. "I am pleased that logic has prevailed and Minister Byrne has apparently agreed to take this decision back to Cabinet to be reversed," said Mr. Joyce. "While it appears these increases will not go ahead, I have to question how Cabinet approved this type of increase in the first place. It is bad enough to increase these fees by such an unreasonable amount, but it is worse to ask operators to pay this increase retroactive to the beginning of the season on wood that has already been cut. This is totally unacceptable and I am happy that Minister Byrne agrees that this increase should have never of been approved. "While I have problems understanding who in government would support this change in policy, especially at the end of the logging season, I am most surprised that Industry, Trade and Rural Development Minister Kathy Dunderdale would support such an increase. This decision would have forced many of these independent, rural business people to either shut down or layoff many of their employees. This does nothing to strengthen industry in this province or grow the rural economy, something that is supposed to be the mandate of her department. "While Minister Byrne has stated that this decision will be reversed, no formal announcement has come from the Department of Natural Resources. I am calling upon the minister to bring this issue forward to Cabinet immediately. I am also calling on the minister to sit down with these contractors and get an accurate assessment of the financial condition of the industry and what, if any, increase the industry can withstand before any further increases are planned in the future."
|
|||||
|
Media Contact: |
|||||
