New Brunswick's natural resources minister says the government won't help struggling mills unless they're willing to change.

Earlier this week, the Conference Board of Canada recommended a cull of uncompetitive mills in the province.

Minister Donald Arsenault said the government is exploring ways to help the industry cut its electricity costs, and natural resources is also considering a reduction in wood royalty fees.

"You know, we're currently going through to put forward a biomass policy, because we understand the forest industry has high energy costs," Arsenault said. "How do we stabilize those costs, reduce those costs? The biomass is an area that we can bring forward to help them address that issue."

The policy recommends that industry generate more of its own electricity and steam through biomass co-generation installations.

Arsenault said that while there are many enterprising mills in New Brunswick, and the government is prepared to help them modernize and compete, the mills can't rely on government bailouts in order to stay open.

"The last thing I would like to do is see mills go down," Arsenault said. "Unfortunately, the operators have to realize also that they have to change the way they do things. If they're not willing to do that, unfortunately, the mill will have to go down."

Repercussions of a closing

Martha Bell from Stickney said the people she's talked to in her area have already seen what happens to mills that aren't sustainable.

"They're shut down," Bell said.

A mill owned by Flemming Gibson Industries Ltd. was closed in Stickney in the 1970s.

"Stickney used to be a sawmill town," Bell said. "But we're still here. We survived. There's other things that we can do."

But Bell said small industry should still get a hand.

The Industry Canada website offers tips on how to modernize, she said, but smaller operations would have a hard time following the suggestions.

"They've got all kinds of statistics there on value added, marketing, things that will help you," Bell said. "But it's going to cost you. A small company can't afford to spend $20,000 or $30,000 to do the paperwork."