Committee Room 1

HANSARD NOVA SCOTIA HOUSE OF ASSEMBLY STANDING COMMITTEE ON NATURAL RESOURCES AND ECONOMIC DEVELOPMENT Wednesday, February 5, 2020 COMMITTEE ROOM Vital Work of the Forestry Transition Team Printed and Published by Nova Scotia Hansard Reporting Services NATURAL RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Suzanne Lohnes-Croft (Chair) Hugh MacKay (Vice-Chair) Rafah DiCostanzo Keith Irving Brendan Maguire Hon. Pat Dunn Tory Rushton Claudia Chender Lisa Roberts [Hon. Geoff MacLellan replaced Hugh MacKay] [Tim Houston replaced Hon. Pat Dunn] In Attendance: Darlene Henry Legislative Committee Clerk Gordon Hebb Chief Legislative Counsel WITNESSES Chair of the Forestry Transition Team Kelliann Dean - Deputy Minister, Intergovernmental Affairs Julie Towers - Deputy Minister, Lands and Forestry Ava Czapalay - Associate Deputy Minister, Labour and Advanced Education HALIFAX, WEDNESDAY, FEBRUARY 5, 2020 STANDING COMMITTEE ON NATURAL RESOURCES AND ECONOMIC DEVELOPMENT 10:00 A.M. CHAIR Suzanne Lohnes-Croft VICE-CHAIR Hugh MacKay THE CHAIR: Order. I call this meeting of the Standing Committee on Natural Resources and Economic Development to order This is the February 5, 2020 meeting. I am Suzanne Lohnes-Croft, the Chair of the committee and the MLA for Lunenburg. The committee will be receiving a presentation from the Chair of the Forestry Transition Team, Kelliann Dean, Deputy Minister; and representatives of the team: Julie Towers, Deputy Minister of Lands and Forestry; and Ava Czapalay, Associate Deputy Minister of Labour and Advanced Education. I’ll ask the committee members to introduce themselves. [The committee members introduced themselves.] THE CHAIR: I’d like to welcome Mr. Rushton to the committee. This is your first official meeting, so welcome. 1 2 HANSARD COMM. (NRED) WED., FEB. 5, 2020 Our legislative counsel today is Mr. Gordon Hebb; and our dear clerk, Darlene Henry - this is her last committee meeting, and we will miss you. Let’s be gentle with her as she rolls out to retirement. Those of you who come to committee would not know all the work that goes into being the clerk. She is so on the ball with her communications and preparing for the meetings and keeping me, as the Chair, informed. We’re going to really miss you. I know you’ll be replaced by somebody who is just as astute as you because all the committee clerks that we have are very, very good organizers and committee workers. All the best in your retirement. I just want to give some reminders for people to have their phones turned off or on vibrate. We are not allowed to take any photos or recordings, except the media, during the proceedings of the meeting. Washrooms and coffee are to my left, and if there is an emergency, we’ll leave by Granville Street and meet up at the Grand Parade Square by St. Paul’s Church. Members and witnesses, please wait to be recognized by me, the Chair, so that your microphone can be appropriately turned on for recording purposes. I will ask our witnesses to introduce themselves. Ms. Dean, maybe you can introduce the team you brought with you and you can follow right into your opening remarks. KELLIANN DEAN: Thank you very much for inviting us today. As you know, on January 3rd, Premier McNeil announced a transition team to provide advice to government on short- and long-term solutions for Nova Scotia’s forestry sector. The mandate of our team is to advise on short-term support for affected workers and businesses throughout the forestry sector, advise on potential areas of investment related to the $50 million transition fund, and identify longer-term and innovative approaches for the forestry industry in Nova Scotia while ensuring an ecologically sustainable and globally competitive forestry sector for the province. I’m pleased to share information today on behalf of the nine-member Forestry Transition Team. I’m joined by my colleagues: Lands and Forestry Deputy Minister Julie Towers, and Labour and Advanced Education Associate Deputy Minister Ava Czapalay. Simon d’Entremont, the Deputy Minister of Energy and Mines, is the fourth member from within government. In asking me to lead this team, the Premier was very clear that Nova Scotia needs a strong forestry sector, that we need to find the path forward together with people and businesses directly involved in forestry. I would also like to thank the five external members who are at the table with us on the transition team. They’re working countless hours listening to people from all areas of the sector and sharing their advice, which is rooted in their own experience and expertise. The members are Jeff Bishop, Executive Director of Forest Nova Scotia; Doug Ledwidge, President and CEO of Ledwidge Lumber; Debbie Reeves, Chair of the Large Private Non- Industrial Landowners of Nova Scotia; Greg Watson, Manager at North Nova Forest Owners Co-op; as well as Don Bureaux, President of the Nova Scotia Community College. WED., FEB. 5, 2020 HANSARD COMM. (NRED) 3 Many more voices are being heard. We have met or spoken with members of associations and stakeholder groups, sawmill owners, woodlot owners, contractors, as well as subject matter experts. Each of us is attending meetings and information sessions, taking calls, reviewing letters and proposals, and listening. All ideas and concerns are brought to the table to guide our discussions and advice. Taking on this work, we knew it would be a difficult and uncertain time for many people across the province, and government made a commitment to help. Our first priority as a transition team was to assist workers and businesses and find ways to keep people working. Even before the transition team met, we established a toll- free line so that people could find out what help was available and where. More than 430 people have called so far. People who have been laid off with urgent needs can now access emergency assistance funding through local Access Nova Scotia centres. This is also available to self- employed workers. A confidential toll-free line is also open for anyone who needs emotional support. About 15 information sessions have been held across the province so far with our federal partners. Here people are learning about jobs that are available, how to apply for them, training opportunities, and also about employment insurance. More than 200 people attended the first six sessions in Pictou County. We have been hearing loud and clear that people want to keep working in Nova Scotia. We need skilled and talented people in the forestry sector of today and tomorrow and in other areas of our economy. My colleague, Ava, will speak to the new $1.5 million apprenticeship initiative that helps workers fast-track through training and certification free of charge so that they can get back into the workforce more quickly. We want to keep people working. That’s why an additional $7 million was allocated for silviculture and road programs for Crown land and private land. Contractors and woodlot owners can start applying for this funding on February 14th. The Department of Lands and Forestry is also talking to Northern Pulp about how work can continue on Crown lands licensed to the company. Contractors told us they needed help covering payments on their equipment. They can now access a repayable line of credit through their local credit union of up to $180,000, guaranteed by the province. We’ve allocated $5 million from the transition fund for this initiative. Finding markets for wood chips and other residuals is a priority for the sector. On Monday, government issued an RFP to convert six public buildings to wood heat using chips and other lower grade wood. While we know this is on a smaller scale, it’s a start and it could provide a new market for some suppliers. Private sector operators have been looking for new opportunities, and we’re considering how government can best support their efforts while minimizing any international trade risk. We worked hard to earn an 4 HANSARD COMM. (NRED) WED., FEB. 5, 2020 exclusion from U.S. duties for our lumber, and we achieved that because our industry operates based on fair market principles. Government, however, can assist industry by working with the federal government and our contacts in key markets to open doors and raise concerns about trade barriers, such as plant health restrictions in the EU that make it difficult to export. Our work to date has been focused on forestry sector workers and businesses in the short term. We are not done; more initiatives are in the works. While those continue, our focus is turning to longer term opportunities. We want to work with the sector to identify new market opportunities and innovative approaches that support a globally competitive forestry sector. We need diversification, and we need to increase the value of our forests. The Forest Nova Scotia AGM is coming up next week, and we look forward to hearing directly from people who work in forestry about their ideas. I’ll now give the floor to my colleagues and look forward to your questions. THE CHAIR: Ms. Czapalay. AVA CZAPALAY: I’m honoured to sit on the Forestry Transition Team. My primary interest is how we can best respond to the needs of forestry workers today and planning for the skills and workforce needs for the future of the forestry sector. I have worked in the education and training sector for more than 33 years. Whether people need to access short-term support, get help finding a new job, or get introduced to new employment opportunities through retraining and certification, I’m pleased to say that the province, the Nova Scotia Apprenticeship Agency, and our partners such as Nova Scotia Works and the Nova Scotia Community College have a range of programs that can help.

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