Stumpage Rates
A system of stumpage rates shall be implemented which 1) places fair value on puuNic forest

resources in comparison to rates charged by other North American jurisdictions, 2) recognizes
business cost variations in differing terrain and regions, 3) recognizes high and low market cycis
variations, cind 4) are standardized ihrough consensus agreement of the public, Watershed

Authoriiies, and the new Minisiry of Natural Resources,

The forest industry must pay a fairsum for the use of Provincial common property forest resources.
It is also equitable that stumpage rates reflect both the costs of doing business in remote sites,
or impacts of fluctuating market cycles,

Loan Guarantees

The Ministry of Natural Resources shall implement a comprehensive program of secured loan
guarantees that will allow the forest industry to maintain aceess to capital funding from private
banking sources. This program shall include sirict financial disclosure and monitoring require-
menis that will halp protect public Investment.

It must be acknowledged that dramatic changes in forest industry tenure and operation
legislation will make it difficult for forestry companies to secure loans necessary to modernize
and move into value-added configurations.

on
No corporate owner shall be allowed to directly or indirectly own more than 3% of forest
exiraction tenures, timber conversion capacity, or pulp mill capacity in British Columbia.

The concentration of forest harvest tenures in the hands of four or five large corporations is not
in the best interests of either the timber resource, or British Columbia communities. To counteract
the trend towards greater corporate concen tration, a policy willbe implemented which would
devolve ownership of the British Columbia forest industry into smaller segments.

industry Cooperation Councils
Tenure holders in each Watershed Authorliy area shail become members of an industry
organization whose goai Is to 1) cress-communicate indusiry experlence with sustainable
development goals, and 2) implement business alllances which weuld strengthen corporate
and community benefits from industrial timber extraction and manufacture. The degree to
which this organization Increases ecological and economic stability will be one criteria by
which renewal of tenures will be based.

Inmany cases forest companies operating inthesame region do notcommunicate on aregular
basis with each other. Valuable experience leamed by one business is nor iearned by other
operators who could benefit from this knowledge. Concurrently, many joint venture business
opportunities, for instance the sharing of kilns, are not realized because of outdated notions of
competition. Jobs are lost fo communities, and value addeci opportunities are wasted. The
institution of Cooperation Councils would remedy this situation.

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