A discouraging report was released Wednesday on the state of the region's forest industry. It was compiled by Lakehead University economist, Dr. Bakhtiar Moazzami and it paints a picture of an industry in decline, that's lost thousands of jobs and is in desperate need of assistance.

Dr. Moazzami has worked on a study for the past six months to outline the impact of the forestry industry. Moazzami presented his report to members of the Northwestern Ontario Forest Council Wednesday. The report states that communities in Northwestern Ontario rely on forestry for thirty five per cent of their income and twenty seven per cent of their employment. Moazzami says the industry is an important one, he says if the industry is not healthy and cannot sustain production costs, then employment opportunities will drop.

The analysis shows that over 3,000 jobs directly and indirectly related to forestry have been lost since 2001. There are many issues to explain the job losses within the forest industry such as, the state of the wood supply, the increased cost of fibre, the cost of electricity and the lack of tax incentives. The vice president of Woodlands for Bowater in Ontario, Roger Barber, says this report helps to get the message out that the forestry industry needs help and support. Barber says he has worked in forestry all his life and he feels that the industry is extremely important.

Aside from outlining the factors that could threaten the industry, Moazzami suggests some possible solutions. Moazzami says the provincial government must promote regional energy pricing, reduce fibre costs, introduce tax incentives, promote wood value-added industries and reduce the cost of doing business in Northwestern Ontario, in order to survive.