GOVERNMENTS OF CANADA AND SASKATCHEWAN INVEST IN SASKATCHEWAN FORESTRY

Released on August 31, 2001

Saskatchewan's expanding forestry industry is taking its next step in

international competitiveness, with official establishment of the new

Saskatchewan Forest Centre (SFC), to be located in Prince Albert.



Details of the Centre were announced today by Federal Natural Resources

Minister Ralph Goodale and Economic and Co-operative Development Minister

Eldon Lautermilch. The federal and provincial governments will contribute

more than $14 million over five years to the Centre.



The SFC will begin operating on September 1st with two staff, increasing to

12 by the end of the year and expanding further over the coming years.



It will bring together the best training, market research and private

sector involvement from across Saskatchewan and Canada. And it will work

with existing educational institutions, research groups and industry to co-

ordinate its services. It will focus on agroforestry, value added and

forest science for Saskatchewan's forestry industry.



A Forest Development Fund will support sector-wide projects that develop

applied technologies, conduct research, identify market opportunities and

encourage expansion of the forestry industry.



"The Government of Canada is eager to help Saskatchewan's agroforestry

sector realize its tremendous potential for economic and environmental

benefits, while contributing to sustainable development and helping to

diversify the economies of rural communities," Goodale said, who also spoke

on behalf of Veterans Affairs Minister and Secretary of State (Western

Economic Diversification) (Francophonie) Ron J. Duhamel whose department is

the centre's primary federal funder. "The SFC will create a total of 12 to

15 jobs, and hundreds of additional jobs could be created in the forestry

industry as a result of the work done at the SFC."



"We have some ambitious goals for the forestry industry and the

Saskatchewan Forest Centre will help us reach them," Lautermilch said.

"This centre will ensure our growing forestry industry has access to the

best training, market research, technologies and new methods to help it

realize its full potential."



The SFC will be governed by a 13-member Board of Directors. Nine of the

positions will be filled by the private sector, with the remaining four

filled by government representatives.



Corporate and private sector participation will be encouraged through an

open membership structure, and an advisory committee will oversee

technology development activities.



Contributors to the Centre include Natural Resources Canada, Western

Economic Diversification Canada, Saskatchewan Economic and Co-operative

Development, Saskatchewan Environment and Resource Management, Saskatchewan

Agriculture and Food, and Forintek Canada.



The Saskatchewan Forest Centre is an important part of the expansion of the

forestry sector announced by the provincial government in 1999.



Government of Canada funding for this agreement was provided for in the

February 2000 budget and is therefore built into the existing financial

framework.



For more information, contact:



Bob Ellis Pat Breton

Economic and Co-operative Development Natural Resources Canada

Regina Ottawa

Phone: (306) 787-1691 Phone: (613) 996-2007



Heather Waldern Hinds

Western Economic Diversification Canada

Saskatoon

Phone: (306) 975-5475