TL.W.A. Parks Submission Continued from page thirty-three physical goods it consumes and con- tribute from its renewable resources its fair share of the common wealth of the earth. For British Columbia and Canada, this means we should produce timber, paper and building piatenials as sustainably as possi- le, It is also important to recognize that forest products are a renewable source of building materials, unlike many of the potential substitutes for wood. In construction, for instance, wood is more “environ- mentally friendly” than such alter- natives as aluminum, steel and other metals; plastic; concrete; brick and other non-renewable sub- stances, all of which require more energy at every stage from produc- tion through recycling. Sustainable forestry is a “green” industry. This is all highly relevant to the B.C. Protected Area Strategy and the Parks Legacy Project. There is a continuing demand for recreational areas, wildlife preserves, wilderness areas and other protected areas, many of which require removal of timber from the working forest. Nearly not a week goes by without either creation of a new park or new demands for park designation of some portion of the province’s work- ing forest land base. Recently a park the size of Switzerland was created in the Northern Rockies, for instance. Indeed, according to the provin- cial Land-use Coordinating Office, since the beginning of the Protected Area Strategy, 281 new parks have been created, totalling 4.1 million hectares. This brings the total area of provincial parks in which timber harvesting is not permitted to 10.1 million hectares. That brings the provincial total to 10.6 percent of the land base of B.C.; we are rapidly approaching the PAS target of 12 percent. We often hear that a large pro- portion of the areas protected are “rock and ice” and as such, of little use to the forest industry. That is untrue. According to a 1996 analy- sis, also by LUCO, while about 2.8 million of the then total 8.8 million in protected areas was designated as “high elevation.” another 2.7 mil- lion was “low elevation.” It is here that the impact on employment opportunities is most discernable. Indeed, nearly one third — 32.2 per- cent — of the “new” protected areas designated under the PAS consist of “low elevation” forests. This can be seen clearly in the Vancouver Island Land-use Plan. There 78,000 hectares of new park were created. Of these, according to the Ministry of Environment, Lands and Parks, over 27,000 hectares included land described as “very high productivity” or “high\moder- ate productivity,” making them excellent, harvestable stands that will no longer be available to the forest sector. In fact, according to a report pre- pared by Cortex Consultants Inc. for the Ministry of Forests in June 1996, land-use changes reduced the provincial timber supply base by 7 percent between January, 1993 and June, 1996. This constituted the largest single source of timber sup- ply reductions, out of the combined 11 percent impact of the impact of the timber supply review, forest practices code and land-use changes. We calculate that this reduction would have eliminated almost 650 direct jobs. It’s no wonder then that there are problems in terms of timber supply in a number of regions of the province. Those reductions in tim- er supply translate into lost jobs for the current forest-sector work- force; they also translate into lost jobs for future generations, particu- larly future generations living in forest-based communities in B.C. (A 1993 federal government analysis concluded that 69 B.C. communities depend on the forest sector for over 50 percent of total basic income. Of 55 communities studied by the B.C. Ministry of Finance, over half earn at least 30 percent of basic income from the forest sector.) Indeed, as the Provincial Health officer has repeatedly shown, one of the essen- tial indicators of the health of future generations is the economic welfare of current generations. As has hap- pened in the U.S. Pacific Nortne west, when you undermine the local economy, you run a large risk of undermining the health and wellbe- ing of young people, who typically either leave the area to face uncer- tain prospects elsewhere or remain to face seriously reduced prospects and stressful circumstances. We have heard much about the economic benefits of parks and of the tourist sector that depends in part on the existence of parks. We believe there has been much exag- gross provincial product and 19.4 times as much to government rey- enues. (see article below) Statistics on parks visits should also be scrutinized carefully. Two- thirds of all park visitors in B.C. are in fact from B.C. Assuming that about 20 percent of employment is forest-generated, that is consisting of direct or indirect forest employ- ment, then at least 13 percent of forest visitors are those who work in the industry or those whose jobs depend on the forest industry or their families. Visits directly attrib- utable to the forest sector, then, amount on their own to a third as much as out-of-province visitors. Let’s look at a specific example. In 1995 the area known as Pinecone Lake-Burke Mountain north of Port Coquitlam was designated as a class “A” provincial park. This area had supported widespread recreational, conservation and other environmen- tal values for many years, as well as providing important economic val- ues as a source of timber, especially outside. FORESTRY AND PARKS: A COMPARISON OF THEIR ECONOMIC CONTRIBUTION TO B.C. Park visitors: Twice as many park visitors are from within B.C. as from ° if 1/3 are from out province, 2/3 must be from within the province. Assuming that about 20 percent of provincial employment’ is forest- derived, that means that at least 13 percent of par! visitors are forest workers and their families, thus currently contributing on their own over a 1/3 as much as “foreign” visitors. Direct Employment: Forestry Accounts for 17.4 times as many direct jobs as parks parks: 5,300 jobs; e forestry: 92,200 jobs; Total Employment: Forestry Accounts for 29.6 times as many direct plus induced jobs as parks ° parks: 9,300 jobs; ° forestry: 276,000 jobs; Contribution to Gross Domestic Product: Forestry Contributes 17.75 times as much to Gross Domestic Product as do Parks ° parks: $400 million to GDP; e forestry: $7.1 billion to GDP; Forestry generates shipments of $20.6 billion and a positive balance of trade of over $9 billion. Contribution to Government Revenues: Forestry contributes 19.4 times as much revenue to the provincial and federal governments as do parks ° parks: $160 million to government; ° forestry: $3.1 billion to government. In short, there is just no comparison between the economic value of parks, compared to the forest industry. Just one specific example is enough to show how futile it is to expect that parks can ever replace the potential wealth that forestry generates. In the Lower Mainland, the provincial government has created a park in the Pinecone Lake-Burke Mountain region, north of Port Coquitlam. According to the government’s own estimates, here are the comparative economic values of continued forestry operations versus a park: Employment ° 86 direct forest jobs and 128 indirect jobs dependent on forestry; ° in a park, eight potential jobs, with possible growth to between 44 and 58 over the next 41 years. Direct Employment Income ° forestry: $3.68 million; ° parks: $230,000; Again, there is absolutely no economic justification for the creation of a park. In fact, the only way the minister can make the case that he makes in this report is to completely disregard any alternative uses for the land. Parks are great in the abstract, but they can’t be justified on eco- nomic grounds. ~ Kim Pollock, Director of Environment and Land-Use Department geration on this subject. The impor- tant question is “compared to what.” All things being equal, the forest sector currently generates vastly more economic benefit than do parks. We calculate that forestry con- tributes 17.4 times as many direct jobs and 29.6 percent times as many direct plus indirect jobs as do parks, based on statistics from Coopers Lybrand, the Ministry of Environ- ment, Lands and Parks and Price Waterhouse. Forestry also con- tributes 17.8 percent as much to our for mills in the very nearby Lower Mainland. The existing timber harvesting operations created 86 direct and 128 indirect jobs, with direct income of $3.8 million annually, according to a study by B.C. Parks. By con- trast, the same study showed that even in an area so near the province's largest population centre, a park was estimated to likely support eight jobs paying $230,000. In short, then, regardless of other benefits parks might provide, parks cannot replace the economic value of the forest sector on the same area of land. In fact, creation of parks in areas corr enuy part of the provincial working forest represent a double cost. As productive forest land sub- ject to the Forest Practices Code, those lands represent a perpetual source of employment income; gov~ ernment revenue; corporate returns, a portion of which should be rein- vested in future employment and revenue; export earnings and other values to forest-based communities and the provincial economy. As parks, they not only cease to generate anything but a fraction of their former value: they also become a large and growing cost to govern- ment and taxpayers. In 1993, parks operations cost over $43 million; as the parks system expands, all things being equal, .it will consume a grow- ing share of a shrinking revenue base — shrinking because of reduced forest sector activity. In light of these observations, I.W.A. CANADA makes the follow- ing recommendations to your com- mittee: - the Protected Area Strategy tar- get must remain 12 percent. Beyond 12 percent, conservation goals must be reached within the existing parks system or through “swaps” of exist- ing park land back into the working forest; - future changes in conservation requirements should be met from existing protected areas or from currently inoperable or inaccessible areas. In cases where areas cur- rently within the provincial work- ing forest are required to meet a demonstrated conservation emer- gency, an equal and equivalent amount of timber should be removed from existing protected areas in the same region; - future park creation must be justified as essential to the biologi- cal well-being of the forests and new parks must be shown to be better candidate areas than those that require disruption of the forest sec- tor. Proposals supported only b aesthetic, cosmetic or other consid- erations that lack scientific basis should be rejected; : - low-elevation, flat and fertile lands are often best suited to forestry since they are often the best grow- ing sites and forest operations on those sites are safest, require less road construction and use up less energy. This should be taken into account in all future parks designa- tions; - the provincial government should develop a clear, comprehensive analysis of the economic costs of the province’s existing parks system, especially those designated under the Protected Area Strategy. This should include the loss of annual allowable cut; projections of lost jobs and employment opportunities, both direct and indirect; foregone export revenues, government rey- enues and economic activity; and the relative value of removed lands as either parks or working forest. This analysis should help guide and inform future parks designation decisions; - since it is unfair for small groups of workers, their families and their communities to bear by themselves the costs of measures allegedly designed to benefit all of society, when parks are designated that dis- rupt the forest sector and eliminate jobs, the provincial government should join any non-governmental proponents of the park in designing a transitional strategy aimed at ensuring there is no net job loss as a result of the parks proposal. The transitional measures, which might include mitigation of park impacts through removal of timber from existing parks, must be acceptable to the impacted workers ad their community and be put in place prior to designation of the proposed park. —-Kim Pollock SS 34/LUMBERWORKER/DECEMBER, 1997