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| Backgrounder(s) & FactSheet(s): | Backgrounder |
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| Backgrounder(s) & FactSheet(s): | Backgrounder |
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VANCOUVER – The province is launching a new market-based timber pricing system for the coastal forest sector, effective Feb. 29, that will help revitalize the industry by ensuring competitive stumpage rates that better reflect global markets and local harvesting costs.
The market pricing system was announced today by Premier Gordon Campbell at the annual convention of the Truck Loggers Association.
“As part of our New Era plan for revitalizing forestry, we pledged to deliver a new timber pricing system that reflects global market realities and local harvesting costs,” said Campbell. “Forest contractors, companies, communities and workers have clearly told us that it’s time to move forward with market pricing on the Coast, where it’s needed most. The new market pricing system will help strengthen the coastal industry, by ensuring competitive and affordable access to Crown timber resources, and a fair return for taxpayers.”
Timber prices will be based on the results of auctions of standing timber by B.C. Timber Sales – currently 11 per cent of the allowable annual cut in the Coast Forest Region. Under the province’s Forestry Revitalization Plan, 20 per cent of timber held by major licencees is being re-allocated to help create opportunities for new entrants to the forest sector, including small business, value-added entrepreneurs, community forests, woodlots and First Nations.
When the provincewide timber reallocation is complete, the portion of Crown timber sold at auction through B.C. Timber Sales will be 20 per cent. The results will be used to determine the stumpage rates of the 80 per cent of Crown timber harvested by long-term tenure holders. The identification of land parcels on the coast to support timber pricing is expected to be completed in the summer.
“This is one of the best things government can do to put our members back to work,” said Rob Wood, President, Truck Loggers Association.
“Stumpage reform is absolutely critical to the Coast – today’s announcement is welcome news,” said Brian Zak, president, Coast Forest and Lumber Association. “We will continue to work with the government and the rest of the sector to ensure market forces are fully implemented in this and other forest policy initiatives.”
Market based timber pricing is expected to be introduced in the Interior later this year.
“B.C. has two forest industries – the Coast and the Interior,” said Forests Minister Michael de Jong. “We’re still in discussions with Interior licensees about the mechanics of an Interior market based timber pricing system. We’ll move ahead when it is right to do so.”
Besides supporting a new market pricing system, the reallocation of timber will double the allotment to community forests, woodlots and First Nations. Twenty-seven major licensees are affected by the reallocation. Timber for the first community forest or woodlot will be available in summer 2004.
Last fall, the province also implemented Forestry Revitalization Plan measures to increase the flow of timber to all of B.C.’s mills and manufacturers, and diversify and strengthen the forest economy. Changes to the Forest Act include:
· Updated cut control rules, including elimination of minimum cut control rules so licensees are not forced to cut timber in poor markets, and maintaining maximum cut controls to ensure forests for the future. · Elimination of timber processing and appurtenancy requirements to allow licensees to sell timber within B.C., to increase the flow of timber and create more jobs and new opportunities for communities. · Enabling tenure holders to transfer or subdivide logging rights without penalty, to create opportunities for other manufacturers and for innovative forest managers. · Creating new community salvage licence to create more economic opportunities for interested communities.
Other initiatives completed under the Forestry Revitalization Plan include:
· Introduction of a results-based Forest and Range Practices Act, that will help create jobs and economic growth by promoting industry innovation without compromising the high environmental standards that protect B.C.’s forests. · Investments in international marketing and product development that strengthen existing markets and open up new ones. For example, the Dream Home China project will showcase wood-frame construction methods in the growing Shanghai market. · Developing a new partnership with First Nations, through measures such as accommodation agreements with revenue sharing components, and direct awards of timber, to create real economic opportunities for First Nations, and increased certainty on the land base.
For more information, visit www.for.gov.bc.ca/mof/plan
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