Action on Forestry
Frequently Asked Questions
A toll free 1-800 line will be set up in the coming weeks to help answer any questions related to the action plan and its impact.
Career Guidance and Training
- Who is eligible for training?
- What areas of training will be provided?
- Where can I get details about the training programs?
Silviculture and Harvesting
- Who is eligible to participate in the silviculture programs?
- How long will the programs last?
- For those contractors who continue to harvest, do they a have buyer for wood?
- Will contractors receive the same pay rate structure and where will their product be sold?
- Is there a chance of flooding the market with wood supply?
- Will contractors have access to licensed crown land?
- What is the role of the core team the province wants to have in place?
Pensions
- The pension plans have assets worth $311.3 million as of December 31, 2010. Can the creditors of NewPage Port Hawkesbury (the “company”) seize those funds?
- As a retired member, what will happen to my pension if no buyer can be found and the company goes into bankruptcy?
- I am an active member, so what happens to my pension benefits if no buyer is found and the company goes into bankruptcy?
- I am an active employee, but I am also eligible to retire. If I retire now, will my pension be protected more than if I retire at a later date, if the company goes bankrupt?
Credit Union Loans
- What is the new loan program?
- What are the changes?
- Who is eligible?
- How will these changes help small businesses?
- Is the loan available from all credit unions?
- How Do I apply?
Bowater Land Aquisition
- What plan does government have for the land?
- Can you give a description of the type of land being bought?
- What priorities did the negotiating team consider when they entered into discussions with Bowater for this land purchase?
- When do you expect to have the land sale finalized?
- 1. Who is eligible for training?
The majority of woodsworker crew members will be eligible for Employment Insurance, and the programs associated with it. Contractors, and some truckers, on the other hand, are often self-employed. For this reason, our training programs will initially focus on self-employed woodsworkers who have been impacted by the closure. Training options and specific criteria will be developed in the coming weeks. Over time, these training programs may potentially be offered to other woodsworkers.
- 2. What areas of training will be provided?
Specialized training programs on topics such as silviculture, sustainable forestry practices, productivity improvements, and efficiency of forestry operations will be provided. The details of this training are being developed and staff of Natural Resources will work with the woodsworker community to ensure the training reflects their needs, helps the industry meet the 50 percent clearcutting target by 2015, and keeps the woodslands workforce operational.
- 3. Where can I get details about the training programs?
Staff are in the process now of working out the details. As soon as possible, we will post information regarding training opportunities and programs on our Natural Resources website www.gov.ns.ca/natr . We will also ensure that your local career resource centres are aware of the training programs and how you can access them. To find the nearest centre, visit: www.gov.ns.ca/employmentnovascotia/contact/
- 4. Who is eligible to participate in the silviculture programs?
All experienced silviculture contractors and their crews who have been impacted by the mill closure.
- 5. How long will the programs last?
These programs will continue through this fiscal year, to the end of March. Forest management activities would become the responsibility of a new mill owner. Training programs are intended to continue over a longer period, to match the needs of workers.
- 6. For those contractors who continue to harvest, do they a have buyer for wood?
The market will determine the pay structure and the flow of the wood supply. It is not government's role to be involved in that process.
- 7. Will contractors receive the same pay rate structure and where will their product be sold?
The market will determine the pay structure and the flow of the wood supply. It is not government's role to be involved in that process.
- 8. Is there a chance of flooding the market with wood supply?
It's expected the harvest will allow mills who are importing wood to get their supply here in the province. Any correction on demand and supply will come from within the industry.
- 9. Will contractors have access to licensed crown land?
Yes. They will be assigned jobs and overseen by forest management staff.
- 10. What is the role of the core team the province wants to have in place?
A core team of woodlands staff will have the knowledge and capacity to facilitate harvesting, silviculture and road work and training, and oversee appropriate use of Crown resources.
- 11. The pension plans have assets worth $311.3 million as of December 31, 2010. Can the creditors of NewPage Port Hawkesbury (the “company”) seize those funds?
No, the pension plans’ assets can not be used to pay company debts. The pension funds are protected and are used to provide benefits for its members and retirees.
- 12. As a retired member, what will happen to my pension if no buyer can be found and the company goes into bankruptcy?
If the company goes bankrupt, the pension plan will wind up (end). The assets of the plan will be used to provide benefits for members and retirees. If there is a shortfall in the fund, you could receive a smaller pension.
- 13. I am an active member, so what happens to my pension benefits if no buyer is found and the company goes into bankruptcy?
The pension plan will wind up with the assets being used to provide benefits for its members and retirees. If the plan is not fully funded, benefits will be reduced to their funded level the same way retiree’s pensions are reduced.
As an active member you would have the option of transferring the value of your reduced benefit to a Locked-In Retirement Account (LIRA).
If you were eligible for early retirement, you could retire and have your pension purchased from an insurance company, or transfer the value of your reduced benefit to a LIRA.
- 14. I am an active employee, but I am also eligible to retire. If I retire now, will my pension be protected more than if I retire at a later date, if the company goes bankrupt?
There is no greater advantage by retiring now. All pensioners and active members would have their benefits reduced to the level that could be funded by the plan’s assets if a buyer is not found and the company goes bankrupt.
- 15. What is the new loan program?
- Lending limit is increased from $150,000 to $500,000
- Amortization has been increased from seven to ten years
- Provincial guarantee is raised from 75 percent to 90 percent for businesses in commercially viable, perceived higher-risk sectors.
- 16. What are the changes?
There is no greater advantage by retiring now. All pensioners and active members would have their benefits reduced to the level that could be funded by the plan’s assets if a buyer is not found and the company goes bankrupt.
- 17. Who is eligible?
Any small business in the province can apply for these loans.
- 18. How will these changes help small businesses?
We worked with the Nova Scotia Cooperative Council to identify the changes that would allow us and credit unions to help more businesses. In some sectors, equipment is very expensive, so larger loans are needed. A longer amortization period makes monthly payments more affordable for larger loans, and the loan guarantee should encourage more credit unions to approve these loans for qualified small businesses.
- 19. Is the loan available from all credit unions?
Currently, this loan is only available from 16 participating credit unions. The full list of participating credit unions can be found at www.nsco-opcouncil.ca or www.ns-credit-unions.com.
- 20. How Do I apply?
Contact your local participating credit union or visit www.nsco-opcouncil.ca or www.ns-credit-unions.com for more information.
- 21. What plan does government have for the land?
The land purchase from Bowater will be used to meet land protection goals, as well as to support provincial forestry and recreation values and potential Aboriginal uses.
- 22. Can you give a description of the type of land being bought?
The land, which is located in five counties, includes rich and productive forest land, old forests, water frontage and wetlands, all of which have a significant value. The lands also include good fish and wildlife habitat and terrain ranging from rolling hills, to lake shores, marshes and ocean frontage.
- 23. What priorities did the negotiating team consider when they entered into discussions with Bowater for this land purchase?
The negotiation team had a mandate to acquire lands of high conservation value and lands of interest to the Mi’kmaq. The team also looked for land to mitigate and address issues related to protecting lands that have overlapping issues such as mineral/ economic development, recreation, forestry and other traditional uses.
- 24. When do you expect to have the land sale finalized?
As with any land sale, steps must be complete before the deal can be finalized, including surveying the parcels, land registration and migration, and other legal matters. That process is underway and it is expected the purchase will be completed before March 31, 2012.
