Highlights of the Industrial Context, 1965-66: One of the outstanding events 

 of this period was the National Forestry Conference of February, 1966. The goal 

 of this meeting was to examine in depth the present and projected future 

 relationships between the demand and supply situations for forest products, and 

 to define the measures that must be taken if Canada is to maintain its position 

 of leadership in this field. 



The present level of utilization in Canada is about 17 million cunits of wood 

 for each of the pulp and paper industry and the combined lumber-plywood 

 industries. By 1975, pulp and paper is expected to consume about 27 million 

 cunits, and lumber and plywood together about 24 million cunits. By 2000, the 

 projected figures for Canada are about 92 and 47 million cunits respectively and 

 Ontario should more than double its present level. 



During 1965, growth of Ontario pulp and paper mills' output kept the 

 industry amongst the top five producers. Newsprint shipments were valued at 

 $214 million, for a gain of 5%; pulp shipments were valued at $140 million, for 

 a gain of 6%. About $120 million was invested in plant modernization and in 

 new mills. This included one new mill and one completely rebuilt mill. Almost 

 every mill benefited in varying degree. It is expected that these changes will 

 require 1,000,000 cords of additional pulpwood annually. 



There has been a marked increase in the number of enquiries relative to 

 opportunities for new plywood mills to establish. Utilization of high grade maple 

 and yellow birch is approaching the allowable cut and it is difficult to recommend 

 sites for production of this commodity. On the other hand, the reserves of poplar 

 and white birch are ample and a number of feasibility studies are underway. 



The production of lumber continued its long-term trend. The 1965 mill 

 licence returns showed a lumber and railway tie production of almost 900 million 

 fbm — the highest volume since World War II. 



A second event of outstanding importance concerns the action taken by 

 government in relation to an area of 3,543.6 square miles lying midway between 

 Chapleau and the north shore of Lake Huron, in the Sault Ste. Marie District. This 

 area was originally licensed, in 1937, to J. J. McFadden Lumber Co. Ltd., and then 

 to Huron Forest Products Co. Ltd., and finally to Dominion Tar and Chemical Co. 

 Ltd. A provision of the licences held by all these companies was that a pulp mill 

 would be built to utilize the timber from this area. After prolonged futile 

 negotiation, the licence was cancelled, the deposit forfeit, and action taken to 

 encourage new industry to locate in this area. 



A third important development is the implementation of Regeneration 

 Agreements between this Department and holders of large, long-term licences. 

 Basically, this program recognizes the mutual interest of both parties in having 

 cutover lands produce a future crop of commercially desirable species. As owner, 

 the government agrees to reimburse the company, at the agreed to unit rates, for 

 work completed. As operator, the licensee can now make more complete use of 

 his labour and equipment and undertake coordinated planning for both phases of 

 timber management. 



A fourth development is the adoption of measures that improve the 

 competitive strength of pulp mills in this province. The trend towards greater 

 mechanization of logging took giant strides, which have far reaching effects on the 

 characteristics of labour employed and on the traditional seasonal aspects of 

 logging. Most mills now operate on a 7 day week basis, which has the effect of 

 adding about an eighth to mill capacity without additional investment. 



Licensing of Mills — The number of mills licensed under the Crown Timber 



289 



