Mr. Speaker, supporting a diversified economy that provides all communities and regions with opportunities and choices is one of the main purposes of forest management agreements.

The first two agreements were signed this year with Timberworks in Fort Resolution and Digaa Enterprises in Fort Providence, jointly owned Aboriginal development corporations in each community.

Timberworks is owned by the Deninu Kue First Nation and the Fort Resolution Metis Council, and Digaa Enterprises is owned by the Deh Gah Gotie First Nation and the Fort Providence Metis Council

These are the first of several agreements this government hopes to sign with local Aboriginal corporations in areas where there is a sustainable supply of timber for harvest and a viable commercial use for the wood.

Mr. Speaker, this is a new concept in forest tenure for the Northwest Territories that provides for the kind of integrated, multiple use of forest land that is compatible with sustainable forest harvesting.

Forest management agreements give a local Aboriginal corporation non-exclusive rights to harvest timber from Crown lands for the purpose of

sustainable forest business development and growth.

Agreements respect settled land, resource and self-government agreements, interim measures agreements and land use plans. They do not affect the rights of persons to harvest or use the forest for subsistence or traditional practices. The agreements require the parties to follow all established regulatory processes and obtain necessary authorizations.

Forest management agreements benefit communities by supporting the development of profitable, locally managed businesses and increasing training and job opportunities for local people. Communities will be able to determine the growth of their business based on markets and their capabilities.

They also support the use of woody biomass as an alternative energy source and an economic opportunity for the community. An increased use of wood and wood pellets as an alternative source of energy supports the Government of the Northwest Territories’ goal of an environment that will sustain present and future generations.

The agreements also offer opportunities to transfer knowledge about forest management planning and operations, the sustainable development and cooperative management of our northern forests and long-term access to timber supply in support of forest industry development.

Mr. Speaker, communities wishing to develop a forest management agreement must establish an Aboriginal corporation to negotiate terms with our government. The corporation should be community-based and include engagement with local Aboriginal groups.

It needs to establish a wood fibre supply agreement with a wood products facility, and both the corporation and the community need to participate in the development of a timber harvest plan for the agreed area.

Aurora Wood Pellets, a wood pellet mill to be located north of Enterprise, is expected to create an annual demand for 125,000 cubic metres of wood.

More than 40 people will be employed at the Enterprise site, with the potential to create additional jobs in the region.

This northern owned and operated business will purchase sustainably harvested timber from Timberworks and Digaa Enterprises and contribute towards a sustainable northern economy.

As a result, timber will be harvested, turned into pellets and directly supplied to residents and businesses right here in the Northwest Territories.

The timber harvest plan provides a framework for the sustainable management of the timber

resources and takes other values, such as biodiversity, into consideration.

Work is underway now to help Timberworks and Digaa Enterprises develop a strong business model and to work together in building a timber harvest plan.

Forest management agreements are a major tool that will help us encourage and support a viable forest industry that encompasses the full range of forest values. Thank you, Mr. Speaker.