From Maine Today, by Tux Turkel
A task force created last year by Gov. John Baldacci to address challenges facing Maine's forest products industry presented its final report Tuesday, recommending a range of tax, policy and business strategies to help make the industry more competitive.
The report, from the Governor's Council on the Sustainability of the Forest Products Industry, builds on the findings issued last month by the Maine Future Forest Economy Project, led by the Department of Conser- vation.
Both efforts reflect a growing realization that the forest products industry, a cornerstone of Maine's economy, history and identity, hasn't received sufficient attention over the past 20 years from state government.
"We have collectively taken our natural resources for granted," said Jack Cashman, the state's economic development commissioner. "We're paying the price for that now."
Recent paper mill bankruptcies and layoffs are indicators that Maine's forest products industry must make structural changes to thrive in the 21st century, Cashman said.
Cashman chairs the 13-member council, which includes representatives from the forest products industry, Legislature, state government and organized labor, as well as landowners and industrial energy users.
The council's findings complement an earlier report on the state's goal of increasing the amount of certified forestland managed with sustainable methods. The governor wants 10 million acres of Maine forestland to be independently certified by 2007.
The reports also share overall themes expected in a strategic plan for economic development through ecotourism in rural Maine, to be released later this spring. This plan will focus on pilot programs in three regions and includes inventories of natural resource-based tourism attractions.
Maine has the largest and most diverse forest-products industry in New England. But global competition is undermining the clusters of paper mills, sawmills and other diverse businesses that form the industry's foundation.
At the same time, the sustainability council noted, land ownership has changed considerably since 1994. The change is marked by a shift from paper companies and other industrial landowners to investment groups and other private owners.
The council's report contains eight detailed strategic initiatives for Baldacci to consider. They include:
# Examine the state's tax policy and regulations to identify factors that hurt investment in new equipment and technology.
# Consider strategies to improve the quality and accessibility of Maine's timber supply.
# Create a unified brand for Maine's forest products, by promoting Maine's leadership role in sustainable forest management.
# Identify ways to maintain enough forestry workers, including loggers.
# Examine ways to reduce energy costs, including diversified fuel sources and self-generation.
Some of the actions recommended by the council and the forest economy report will require legislative action. Among them, Cashman said, is a pending bill from the governor to eliminate the personal property tax on business equipment. Although business has long favored such a move, towns and cities have opposed it. But Cashman said most towns that attract major investments end up offering financial breaks anyway, in the form of special tax districts.
The forest industry, including logging, paper manufacturing and wood products, employed more than 19,000 people in 2004. But thousands of workers have lost their jobs over the past decade, and Cashman said the state hasn't done enough to bring the benefits of technology, research and development into forestry.
"We have a great fiber supply," he said, "and we just assumed that because those resources are here, we'd be safe."
