Good morning, Mr. Speaker. Mr. Speaker, over the last couple of days, I have spoken about economic issues, specifically those sectors where good potential exists for increased revenue generation. Forestry is one economic sector that deserves more attention. When most people think of lumber resources in western Canada, they think of the softwood forests of BC or the hardwoods of northern Alberta. Few people realize the potential in the Northwest Territories. NWT spruce and aspen, as well as Jack pine and birch cover 61 million hectares in the NWT. The commercial harvest of sawlogs in 1996-97 was about 190,000 cubic metres with a value of $21 million. It is estimated that a sustainable annual harvest of 500,000 cubic metres of spruce and pine saw logs is possible. That translates into a potential commercial value of $55 million. In other words, we could easily double the annual harvest in sawlogs. Then there is still the commercial potential of lumber, finished woods, and furniture products. In 1995, the housing sector investment in the NWT was over $60 million. With such a strong demand

for building materials, there is a strong market potential for locally produced lumber. Almost 70 percent of the NWT forest products sold in 1996 went to southern markets, and the majority of this was in the form of raw logs and rough lumber. Raw log harvests and exports may be economical, but it produces only limited northern benefits. What we need to realize is that the NWT forest industry has the potential for more than just rough lumber.

Value-added industries can be developed in veneer and particle board manufacturing and furniture-making, to give several examples. Demand for NWT forest products is high and is expected to remain so. What we need is better inventory and a strategy for value-added industry and support for private enterprise in this area. More extensive and better detailed forest inventories would provide the information investors need in order to build on the economic potential of the NWT forest sector. Sustainable development of the NWT forest sector is dependent upon industry, community and government working together. Thank you, Mr. Speaker.