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- Forestry

Where we are today:

The BC Liberal government implemented the Forestry Revitalization Plan in 2003, reallocating 20 per cent of logging tenures held by the largest licensees to smaller players, such as First Nations, community forests and woodlots. Through this shift, over 40 communities entered into community forest agreements and over 150 First Nations have access to revenue-sharing agreements. Antiquated policies that prevented wood from flowing to its highest and best use and forced companies to cut wood when it was uneconomical to do so were eliminated. Market-based stumpage prices were created to attain the actual value of timber sold at auction. Corporate taxes, property taxes, and taxes on production machinery and equipment have all been significantly reduced. In 2006 we signed the Softwood Lumber Agreement, returning stability to the industry, and have created a Working Roundtable on Forestry to recommend the next evolution in our industry. We have spent over $640 million to combat the mountain pine beetle, and are implementing a new Bioenergy Strategy to find new uses for our wood to create energy.

Challenges and Opportunities:

Outside market forces including a housing crisis in the U.S. – the top customer for B.C.’s forest products – has impacted the forest industry and forest communities. The mountain pine beetle outbreak will kill an estimated 80 per cent of B.C.’s pine forest by 2013.
Over the last few years, B.C. has made considerable progress in opening up new markets in Asia, with lumber exports to China increasing significantly in recent years. Despite our moves to make the industry more competitive and hundreds of millions in government investment, external factors continue to demand more and more of our industry.

Discussion:

The forest industry has received more government support than probably any other industry -- what other investments should government make to help the industry be more competitive, or should we make any at all? What steps should government take to expand new markets for B.C.’s forest products? Do you see emerging fields such as bioenergy as the future of our forest industry, or should effort be put into maintaining the status quo?
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