by Phillip Legg, Assistant Research Director, IWA-Canada After holding 28 public meetings, viewing 44 written submissions and hearing from 55 witnesses, the Brit- ish Columbia Legislature’s Select Standing Committee on Forests and Lands has issued a first report on log export activity in B.C. The all-party committee report proposes a number of recommendations many of which, if mplemented would initiate some sig- nificant changes in the B.C. forest industry. The reasons for this Committee’s report go back to March, 1989 when the former Minister of Forest and Lands, Dave Parker, asked the Com- mittee to examine log export proce- dures in British Columbia. As well, the Committee was asked to assess and sell them, it is difficult, if not impossible, for companies without logs to participate in the market. And it is that limitation that the Commit- tee believes to be the main constraint of local log markets. Another significant recommenda- tion to the Committee was that no log export exemptions be allowed from either Tree Farm Licenses (T.F.L.) or Forest Licences (F.L.). Under these licence arrangements the provincial government grants a forest company long-term access to the timber har- vest from a specific area. Typically, these license arrangements are granted when the company agrees to establish manufacturing facilities to process the timber harvest that it will have access to under the license. Part of the IWA’s argument against log export activity in B.C. has been that because so much of our current harvest activity, especially on the B.C. Coast, comes from the T.F.L.’s and ining domestic log prices on the B.C. ‘oast provided a true measure of log values. Mr. Parker's request was in response to growing public concerns about the 2 whether the current methods of deter- © Three members of the B.C. Legislature's Standing Committee were, (1. to r.) Socreds’ Graham Bruce and Cliff Serwa, and the NDP’s Colin Gabelmann. F.L.’s, allowing any amount of log export activity simply encourages for- est companies to side-step the obliga- tions of the license agreements with the provincial government. How far these recommendations go level and impact of log exports from B.C. The issue had reached a crisis point in February, 1989 when Fletcher Challenge Canada announced the clo- sure of its Victoria sawmill and the down-sizing of several other opera- tions. The reason given by the com- pany was a shortage of timber. The IWA argued that other factors, especially log exports, were to blame. In the years leading up to the clo- sures, the volume of logs exported The Committee’s report proposes a number of major changes. The most significant is the establishment of a British Columbia Log Market to act as a clearing house for logs harvested from lands under provincial control. In making this proposal, the Commit- tee hopes to address a chronic prob- from the province had reached record levels. lem in the provincial industry; the absence of open and competitive local log markets. Under current conditions, the Com- mittee believes that local log markets like the Vancouver log market, which services loggers and mills in the lower south coast region of B.C., “display features inconsistent with a freely, competitive driven market place.” The report notes that because so much of the activity in these local markets involves “reciprocal” trades in which companies swap logs rather than buy in terms of new forest policy in B.C. is difficult to say. The Committee’s report is intended to be a first report, then a final version coming only after interested parties have had an oppor- tunity to respond to the recom- mendations. As in the first phase of the Commit- tee’s activity, IWA-CANADA will con- tinue to participate actively in the policy debate and development of the Committee. : Silviculture is answer to many problems by Dan Miller are familiar with the forest industry, that we face some critical questions about our | future. ; \ For a forest industry workforce which was © drastically cut back during the 1980s reces- sion, the issues of sustainable harvest levels, and overcapacity in our processing plants need to be [ » T is generally accepted by most people who addressed and straight forward answers given. BASIC CASE COMPARED TO ENHANCED REGIME Basic Forestry (Base Case) An all too familiar story these days is the announcement that an- other mill is closing its doors and throwing peo- ple out of work. Victo- ria, Sooke, Lillooet, Princeton, Hazelton, Kitwanga; the list is long, the numbers high, and no one knows which is next. These closure announcements are all 4 accompanied by more or less the same statement, that there is not enough timber of size and quantity to continue operations. | Forest workers have to wonder who is manag- ing the resource, when the chairman of the Forest Resource Commission announced that they had hired private consulting firms to check inventories in selected Tree Farm Licences and Timber Sup- ply Areas. The Commission clearly has no faith in the inventories supplied by industry and govern- | ment, many of which are more than 20 years old. In a move that dem- onstrated real concern for the accuracy of gov- ernment information, Jack Munro and Mac- Intensive Forestry Pilot Project Average $ Spent c 2 cubic metre of Harvest $3.51 $6.21 Mallen Bleeder Bey Harvested Areas: 2 — Percent Replanted 12% 84% ereageedl tite oles Rs ment, to request im — Percent Natural Regeneration 28% 16% proved forestry inven- ery Delay _ aM as tory information. — Natural Regeneration -8 years -6 years 8 — Plantations 4-5 years 2 years 3 The fact is, that the otal processing capac- Average Mean Annual ity of all of the mills in Increment (MAT) British Columbia is ap- (cubic metres/ha./yr.) 2.4 3.9 proximately 100 million Annual Harvest 88,000 130,000 cubic metres per year. Long Run Sustained Yield In contrast to this, the (cubic metres) 81,000 135,000 allowable annual cut set by government on Crown Area Harvested/Year and regulated private (hectares) 320 ha 390 ha lands is between 72 and ppiviculeiire Program 75 million cubic metres 10 yr. total) per year. Hin — Backlog $ 628,000 $8,155,000 However, for the last — Current $2,462,000 $4 9001000) Weems, atthe arntiall Employment Benefit* harvest from regulated (direct jobs) 99 151 lands has averaged “A 1988 Price Waterhouse study indicated 1.126 direct jobs per 1000 cubic metres of 83,836,000 cubic metres timber harvest. per year. 7 It appears we are on a collision course which will result in more mill closures and more workers thrown onto the employment lines. The question then is: do we just wring our hands and wait for the inevitable, or do we identify solutions and put plans into action that will help alleviate these problems? I believe one of the solutions is higher level of silviculture. We must move beyond basic planting to other activities that can significantly increase the volume of timber that we grow. Unfortunately, intensive silviculture is not being practiced, and what little has been done was under the Federal/ Provincial Forest Resource Development Agree- ment (F.R.D.A.). A comprehensive program to eliminate the backlog of Not Sufficiently Restocked (N.S.R.) land, and to implement brushing, conifer release, spacing and fertilization programs could create additional timber volumes, particularly on good growing sites. The following table describes a pilot project on intensive silviculture compared to the basic silvi- culture which is normally practiced. . Note that the annual harvest increases by almost 50%, from 88,000 cubic metres up to 130,000 cubic metres, and the number of direct jobs increases from 99 up to 151. Given the obvious benefit of these types of intensive silviculture programs, why aren’t we doing more of it? Well as I said previously, the government which is responsible for managing Timber Supply lands has no ongoing intensive silvicultural programs. Similarly, a University of B.C. study in 1988 showed that there are no ongoing intensive silvi- culture programs on Tree Farm Licences. New Democrats believe that the forest resources and forest land base has not been well managed. Through a proper intensive forest management program, we can secure jobs in manufacturing, increase jobs in silviculture and over the long term, add to our timber base. It’s time to get on with the job. Dan Miller is the Forestry Critic for the New Democratic Party of British Columbia. He is a member of the provincial legislature (North Coast) and is a millwright who is on leave of absence from Skeen Cellulose’s pulp mill in Prince Rupert. This is the third in a series of articles Mr. Miller has agreed to write for the Lumberworker. —————E LUMBERWORKER/JULY, 1990/3