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There will still be job losses despite a new silviculture deal negotiated between the Liberal government and the New Brunswick Federation of Woodlot Owners, says a member of the federation.

"There certainly won't be the number of people there were in the past working on woodlots," said Troy Lifford, federation assistant manager, Wednesday. "There will be job losses."

Premier Shawn Graham announced the three-year deal Wednesday, which includes $6 million a year and a 70/30 provincial-private split of the cost of silviculture on private woodlots.

"We wanted to establish a new formula that was fair and equitable for the taxpayers of New Brunswick," said the premier. "At the same time, we wanted to maintain the current employment levels in New Brunswick."

In their spring budget, the Liberals slashed the funding for silviculture on private land from $8 million a year to $4 million a year and changed the funding formula from 80/20 provincial-private to 50/50.

The federation said the result would be the loss of 1,000 jobs. There were angry demonstrations in some rural communities.

Lifford said the deal is an improvement over the original cut.

"We were down to the 11th hour and that was what was on the table," he said. "It's the best we could do at the time to keep people working."

The problem with demanding that private woodlot owners pay a larger percentage of the silviculture work is that the forestry market is in a slump, said Lifford.

"It couldn't have happened at a worse time," he said. "It will be difficult for people to find the money.

"People aren't generating any revenue from their woodlot."

Lifford said he couldn't estimate how many of the 1,000 jobs that would have been lost will be saved by the new deal.

He said that depends on how many private woodlot owners take part in the program this year.

In a government media release, federation president Andrew Clark said the deal was reasonable.

"We're confident we can work with government to ensure that important silviculture work on private land can continue," he said.

One of the government's complaints about the previous program was that some private woodlot owners weren't paying their share of the silviculture work.

Natural Resources Minister Donald Arseneault said the deal includes a monitoring mechanism to ensure the full 30 per cent comes from woodlot owners.

"We will continue to be leaders in our support for this vital industry as we work towards a self-sufficient New Brunswick," he said.

Arseneault said the extra $2 million a year for silviculture is coming from the recently created national Community Development Trust.

Opposition leader Jeannot Volpe said the $6 million a year will still cost 800 jobs in the New Brunswick silviculture industry.

"Shawn Graham's Liberals are trying to split the issue by talking about private woodlot owners," he said. "Once again, ordinary families, small businesses, and rural regions are the ones that are bearing the brunt."

Volpe said the Liberals promised during the election campaign in 2006 to boost silviculture spending.

"People are losing their livelihoods, and the government is stepping up public relations in an effort to make people forget its broken promises," said Volpe. "This government has no consideration for the many families in the province that are ending up with no income."