Premier Shawn Graham used his annual state-of-the-province address on Thursday to hint at major changes to the way the public forests are managed.

Graham said the Liberal government will announce a major policy change in that regard on Friday.

'Although it is still facing short-term challenges, we firmly believe that there are growth opportunities for New Brunswick's forest industry today and in the long term.'— Premier Shawn Graham

"And [Friday], I look forward to participating in the unveiling of a new long-term management approach for our Crown lands that balances economic and ecological priorities," Graham said.

Graham said he will be working with industry leaders such J.D. Irving Ltd., Groupe Savoie and the New Brunswick Forest Products Association on the upcoming changes.

The premier singled out Keith Ashfield, the Fredericton member of Parliament and minister of state for the Atlantic Canada Opportunities Agency, and said he will be looking to the federal government for continued financial injections in areas such as silviculture.

Graham said the forestry sector can be revived through targeted investments and a long-term management plan.

"Although it is still facing short-term challenges, we firmly believe that there are growth opportunities for New Brunswick's forest industry today and in the long term," Graham said.

Management plan rooted in Erdle report

The long-term management plan that will be announced on Friday has its roots in the report released on Aug. 27 by Thom Erdle, a forestry expert from the University of New Brunswick.

Erdle's report set out seven different options and their impact. They ranged from reducing the amount of wood cut on Crown land to increasing the annual allowable cut. The report then illustrated what would be the consequence of each choice in terms of fewer jobs, effect on old-growth forests, or a need for more tree plantations.

For example, one option that would see zero tree plantations, a 22 per cent growth in protected areas, and 60 per cent of harvests done by methods other than clear-cutting, would yield the fewest jobs and economic prospects.

The option that is being backed by industry because it would result in the most economic activity would also see 20 per cent of trees felled by clear-cutting, the area of tree plantations escalated to 37 per cent, and protected areas increased to 10 per cent.

The premier also used his annual speech to the Fredericton Chamber of Commerce to announce how his government is completing a deal with Barrett Xplore Inc. to deliver affordable high-speed internet to the remaining 10 per cent of the province that is not connected.

"I am very pleased to say that not only will customers benefit from this great news, getting the work done will create an estimated 200 new jobs," Graham said.