The need for speeding up scaling and, returning of scaled 

 wood has been recognized by the Department for some 

 time. This has become more apparent in view of rapidly 

 changing bush operations, resulting in much faster move- 

 ment of wood. In recognition of these changes and in an 

 effort to improve efficiency of scaling, an operational trial 

 was conducted in one District with the adaptation of scaling 

 to the computer programming systems. Since the results 

 from this full scale operation were quite satisfactory, further 

 trials, on a larger scale, will be conducted next fiscal year. 

 Scaling examinations were held during the past year at the 

 following locations on the dates noted: Ontario Forest Tech- 

 nical School, Dorset, April 7, 1966; Huntsville, May 20, 1966; 

 and Sault Ste. Marie, Sept. 23, 1966. 



A total of 253 licences were issued, a lower figure than 

 previous years due to the fact that a 1965 change in regu- 

 lations provided for renewal on a three-year basis. 



Marketing and Forest Economics 



Ontario's forest industries occupy an extremely important 

 position in relation to the total economy of the Province. 

 According to 1964 D.B.S. information, this industry group 

 accounts directly for 66,000 jobs, pays $317 million in sal- 

 aries and wages, ships goods worth nearly $1.3 billion and 

 has a value added in manufacturing of more than $621 

 million. This represents 9.2% of the total number of em- 

 ployees in the Province, 8.7% of the total salaries and 

 wages paid, 8.1% of the value of all goods shipped, and 

 8.3% of the total value added bv manufacture. It also repre- 

 sents a contribution of about $120 to the Gross Provincial 

 Product for each 100 cubic feet of wood used. 

 Forest industry expansions which have already taken place 

 put Ontario in a good position to take advantage of the 

 expected increases in world demand for forest products in 

 the early 1970's. However, softness in the world pulp markets 

 due to excess capacity and cut-backs in house construction 

 i resulted in no appreciable gains for 1966. 

 Large scale forest industry development projects usually 

 require two or three years lead time and, in spite of short 

 term market difficulties, there has been considerable 

 interest in new pulp industries and further expansions of 

 existing facilities in Ontario. 



Licencing of Mills: The number of mills licenced under the 

 Crown Timber Act in 1966 totalled 944 as compared to 964 

 in the previous year. Sawmills continued their long term 

 downward trend, with the greatest change occurring in mills 

 of low capacity. 



Table 20 



Sawmills: 



Daily lumber capacity over 50 M f.b.m. 25 



Daily lumber capacity 10 to 50 M f.b.m. 113 



Daily lumber capacity under 10 M f.b.m. 655 



Miscellaneous sawn products 97 



Veneer Mills 28 



Pulp Mills 26 



Sale of Timber 



The volume and value of wood cut from Crown lands during 

 1965-1966 was almost identical with the year previous. How- 

 ever, there was an increase in the consumption of wood 

 chips produced as a by-product of sawmilling operations of 

 44,617 cords. This brings the cord equivalent of chips pro- 

 duced by sawmills to more than 438,000 cords in 1966, or 

 enough wood to supply the full requirements of a large 

 sized pulp mill. Pulpwood and boltwood purchased from 

 patented lands was down by nearly 150,000 cords during 

 1966. 



Table 21 



SUMMARY OF VOLUME AND VALUE OF WOOD CUT 



FROM CROWN LANDS, BY SPECIES, 1965-1966 



Volume Stumpage Value 



Species (Cu. Ft.) $ 



SO FTWOODS 



Balsam 10,044,176.08 $ 215,312.88 



Cedar 170,285.11 6,254.95 



Hemlock 2,694,189.96 73,888.44 



Pine, jack 99,390,204.80 2,681,100.69 



Pine, red 6,767,486.71 409,768.95 



Pine, white 24,702,465.85 1,341,957.44 



Spruce 197,935,135.72 7,382,677.14 



Tamarack 73,490.37 1,437.96 



Christmas Trees 19,730.00 2,030.50 



Fuelwood 398,610.90 2,927.50 



Tota I 342,195,775.50 $12,117^5645 



HARDWOODS 



Ash 143,425.86 3,468.84 



Basswood 464,952.52 27,603.12 



Beech 479,719.88 9,094.08 



Birch, white 3,203,371.13 50,532.41 



Birch, yellow 8,284,385.20 652,689.36 



Butternut 1,177.20 55.63 



Cherry 25,293.16 984.01 



Elm 383,859.03 10,311.30 



Maple 8,322,577.66 323,670.67 



Oak 386,549.49 16,242.57 



Poplar 21,205,280.52 198,034.68 



Fuelwood 744,367.95 6,275.01 



Total 43,644,959^0 1^298,961.68 



Gra"nd Total 385^0735^10^ $T3>l6,3i8J3 



NOTE: The value of export levy ($29,378.57) is not included 

 in above. 



