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Union leaders are criticizing the provincial government's granting of permission to UPM-Kymmene to export wood from the allocation that formerly served its Miramichi mill.

But the Department of Natural Resources and UPM say lack of local markets has made it necessary to export.

"UPM, who has basically devastated this community, is still getting, it seems, handouts from Natural Resources which are owned by the people of this province," said Chris Allison, president of CEP local 689.

The Finnish forestry company applied in writing to DNR to export Crown pulpwood to North American markets. The application was approved by cabinet and the lieutenant governor late last month.

UPM plans to export around 60,000 cubic metres of pulpwood from its Bathurst sawmill to Maine, Nova Scotia and Quebec. Fraser Papers and J.D. Irving were also given approval to export.

Natural Resources Minister Donald Arseneault said it is not always desirable to export outside the province, but added it is necessary because the pulpwood is not in demand here.

"Every mill in the province has an opportunity to purchase that wood within New Brunswick, and if there's no takers, the last resort is to request a permit for export," he said.

UPM still manages the Crown wood allocation attached for its Miramichi mill, which ceased operations in August 2007. By law, UPM retains the allocation for a year from that time. Arseneault said the forestry industry was not just limited to mill workers, but also included workers who maintain and truck wood away from the allocation.

"I want to make sure we can minimize the impact as much as we can," he said. "I want to keep every job I can. And if that means I have to make these decisions, I will continue to make them."

Arseneault also responded to union concerns over his department's recent hiring of former UPM woodlands director Paul Orser as an assistant deputy minister.

"Paul has not been involved in the discussions on these export permits. This is something that has been on the table for a long time," he said, adding Orser was a valuable member of the department.

UPM spokeswoman Sharon Pond stressed that UPM is not currently exporting wood from the province, although she said the company planned to do so.

"That's just business as usual," she said. "That is just trying to keep the flow of wood going to ensure that those jobs in the woods are safeguarded. That is not unusual at all."

CEP's Atlantic Division vice-president Ervan Cronk, who said he first heard about the decision when contacted by media, maintains there is still a market for the wood in New Brunswick. As evidence, he cited the example of the Irving sawmill in Sussex, which had to temporarily suspend its operations in May because of a lack of wood, prompting discussions with private woodlot owners to increase supply.

If UPM is allowed to export wood cut on Crown lands, Cronk said, the profits will not return to the province.

"Where's the gain in any of this for people from New Brunswick — for them to be able to cut the wood and export it?" he asked. "There's something galling about the fact that UPM closed that mill [in Miramichi], is barely operating one of its sawmills and is being rewarded by being allowed now to cut wood and export it."