Volume 3, Issue 7 July, 2005

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President's Memo
Forest Capital of B.C.
COFI/Canada Wood Delegation BC Tour
Federal Government Mountain Pine Beetle Response
B.C. Progress Board 2005 Interim Benchmarking Report Released
Dream Home China Phase 2
Solid Wood Trades Development Initiative
Canadian Innovation Awards 2005-2006
Second International Symposium of Veneer Processing and Products
PWC Global Forest & Paper Industry Conference Presentations
Softwood Lumber Trade Update
BC Forest Safety Council

COFI Board Meetings
September 15, 2005

Community Dinner
-Prince George

September 15, 2005

COFI 2006 Annual Convention
April 5-7, 2006, Kelowna



As mentioned previously, I had been asked to Chair the Forest Industry Advisory Committee to the Competition Council. The Council was established by the Premier earlier this year with a mandate to conduct a comprehensive review of the province's competitiveness on a sectoral and a regional basis. Twelve Advisory Committees have been or will be established including Forestry, and Pulp and Paper (Chair Russ Horner).

The Forestry Committee's work has just commenced and at this early date we are focusing on the work plan and operational issues. With summer approaching, I expect the bulk of our work and analysis will occur in the fall.

In the interim, please have a safe and wonderful summer.




John Allan




 


Market Access and Trade staff from China spent five days in the BC interior in learning about forestry and manufacturing activities in early July. The delegation included David Litchfield, Director Japan, Daryl Birtch, Construction Specialist, Shanghai, Eric Zhang, Construction Training Coordinator, Shanghai, Leonard Mao, SPF Manager Beijing, Heiyan Zhang, Technical Specialist, Beijing, accompanied by Wayne Iverson, Program Manager, Emerging Markets, Vancouver.

In Kelowna, the group spent a full day learning lumber grading theory, followed by a practical day at Tolko's Riverside Division, to give them an introduction to species differentiation and quality characteristics for lumber grading in BC and Canada. "They were great learners, very enthusiastic, and at the end were pretty quick" commented COFI's Quality Control Manager, Gary Desrosier. The delegation also toured nearby Gorman Bros. and Weyerhaeuser operations.

In Prince George, the tour focused on forest management activities as well as manufacturing operations. Canfor's Kristy Hillen organized tours of an active cut-to-length harvesting operation, silviculture sites, and forest management and planning stops with a special emphasis on the Mountain Pine Beetle epidemic. Canfor manufacturing facilities, PG Sawmills and North Central Plywood were visited, as well as a tree nursery. "The level of technology used and the production achieved by the harvesting is amazing" exclaimed Daryl Birtch.

Also on the Prince George agenda was a meeting with senior COFI member company representatives to discuss challenges and opportunities that exist in the various Asian markets.

For more information about COFI's Market Access and Trade activities and Canada Wood contact:

Paul Newman, Director by phone: (604) 891-1215 or by e-mail: newman@cofi.org or Wayne Iverson, Program Manager, Emerging Markets by phone: (604) 891-1216 or by e-mail: iversen@cofi.org.


Federal Government Mountain Pine Beetle Response

Lately there have been a number of media articles suggesting that the Government of Canada is not prepared to respond to the pine beetle crisis in British Columbia. As Minister of Industry and Minister responsible for British Columbia, I realize the need and the importance of taking serious action to respond to this natural disaster. Earlier this year, the Government of Canada announced $100 million to fight the mountain pine beetle epidemic. This funding was only a first step, a down payment if you wish, as the federal government works on a long-term strategy with the Province of BC.

It has been suggested that an immediate $1 billion dollar aid package from the Government of Canada is the solution, but this environmental disaster will not be solved by a short-term bailout. It requires a long-term plan and we are committed to working with the province to deliver a solution. We understand the devastating effects the mountain pine beetle is having on our forests and ecosystems in BC. More research will lead to a more comprehensive strategy to deal with the crisis, including the economic effects in our Province when the current harvest boom drops off in eight years or so. Community adjustmentmust be foremost in our collective planning, and we will make sure it is.

As a former CEO in the forestry industry, I know this issue well and I am committed to fighting for adequate resources to deal with the epidemic. I will continue to engage my Cabinet colleagues and stress the seriousness of the issue and the long-term consequences it will bring to the BC economy if we do not take action. While there are those who have tried to use this disaster as an opportunity to try to score cheap political points, it is important to realize that there are serious people who are working hard to tackle this properly. I am confident that, working with the Province of BC, we will do exactly that.

David L. Emerson, Minister of Industry




The B.C. Progress Board released its 2005 Interim Benchmarking Report in June, reporting recent progress on indicators relevant to the province's economy, innovation, education, environment, health and social condition. This year's interim report also includes a companion volume on "B.C. Trade and Emerging Asian Opportunities".

According to the Board’s news release, British Columbia's rate of economic growth (real GDP) per capita climbed to 2nd place in Canada in 2004, from 5th place in 2003. After-tax income levels per capita remained unchanged in 3rd place in 2004, while the Board's jobs measure - the employment rate (ages 15-64) - improved to 5th place in Canada, up from 6th place in 2003 and 7th in 2002. B.C. continues to rank 1st in the country on the Progress Board's environmental quality index (1999-2003), 1st for life expectancy at birth, and 10th for low income incidence based on Statistics Canada's low income cut-offs measure. In its annual report for 2001, the Progress Board established a goal for the province to be 1st or 2nd on each of these core targets by 2010.

The Interim Report also contains preliminary evidence of an economic 'renaissance' outside of the large metropolitan areas (the Greater Vancouver, Capital, and Fraser Valley Regional Districts). During 2004, annual growth rates for population, employment, housing starts and business incorporations in Regional B.C. as a whole outpaced those in the large metropolitan areas.

"B.C. moved ahead of the national average in economic growth per capita in 2004 for the third straight year", stated David Black, Chair of the Progress Board and President of Victoria-based Black Press Ltd. "This is good news for the province as a whole, and the evidence that regions outside of the major metropolitan areas are also improving is very encouraging", Black continued.

The Progress Board's Interim Report also includes a supplemental special focus report examining B.C. Trade and Emerging Asian Opportunities, especially with fast-growing China. Among the findings:

  • Imports from China make up 18.6 percent of BC's total, up from 4.9 percent in 1994;
  • China has emerged as B.C.'s strongest growth market, with exports increasing by over three times their 1995 value of $501 million to $1.7 billion in 2004;
  • B.C.'s principal exports to China are pulp, paper and ethylene glycol, with strong growth in semiconductor and other electronic component manufacturing, and navigational, measuring, medical & control instruments;
  • Energy exports - oil, gas and coal - are a large opportunity moving forward for Canada generally, and B.C. and Alberta in particular, given China's rapidly emerging middle class, expanding transportation network, and steadily growing manufacturing sector;
  • As the destination for only 4.0 percent of B.C'.s wood products, China presents an enormous untapped market, but success for B.C. lumber producers will require extensive marketing efforts; and,
  • Education, tourism, and host of other services also present B.C. with export opportunities to China.

"B.C. is well positioned to take advantage of export opportunities offered by rapidly growing markets in China", noted Tim McEwan, Executive Director of the Progress Board. "Making the most these opportunities will require efforts to ensure that BC's general economic foundations remain strong, along with a continued focus on improving transportation, education and other critical infrastructure", McEwan concluded.

The B.C. Progress Board, established by Premier Gordon Campbell in July 2001, is an independent Panel of 18 senior business and academic leaders. The Board's mandate is to competitively benchmark B.C.'s progress relative to other jurisdictions and to provide the government with advice on ways to improve provincial performance.

For more information see the website: www.bcprogressboard.com.



Dream Home China, an innovative partnership between the B.C. government and the forest industry to sell more B.C. wood products in China, is moving ahead with Phase 2 of its project. Phase 1 is a Demonstration Centre in Shanghai that will allow Chinese consumers, developer, architects, builders and government officials to learn about B.C. wood products, architecture and construction methods.
Phase 2 is the building of two model homes, expected to be finished by December 2005. Forest Innovation Investment Ltd. (FII) has signed an agreement with the Jingiao Group, a Chinese real estate company, that supplied the land.

COFI's Paul Newman, Director of Market Access and Trade and chair of the Canada Wood Group notes that it is important to get something tangible on the ground so that builders, designers and developers can see what is possible. The Canada Wood Group is a consortium of industry associations with the objective to expand offshore export opportunities for Canadian wood products.

For more information contact Paul Newman by phone:
(604) 891-1215 or by e-mail: newman@cofi.org
or see the Dream Home China website: www.dreamhomechina.info and the Canada Wood website: www.canadawood.info.



The Interior Forest Relations Association (IFLRA) and the Steelworkers have formed a provincial Human Resources Planning Committee to address the trades training and workforce development needs of the solid wood sector.

The mandate of the Committee is to help the solid wood products industry develop a skilled trades workforce by focusing on common training objectives that can be achieved most effectively and efficiently through a collaborative approach. The top three priorities of the Committee are to:

• improve mill operations capacity to improve quality on-the-job training for apprentices;
• establish a trades upgrading program for selected trades;
• update Provincial Apprenticeship Programs to address content gaps and other shortcomings to better meet industry needs.

Committee work will focus on the five largest trades groups in solid wood sector:

• Electricians
• Millwrights
• Heavy Duty Mechanics
• Saw Trades (Benchpersons, Fitters and Filers)
• Planer Trades (Tech. I and Tech. II)

The Committee's directions were identified by a 2002 comprehensive needs assessment undertaken by the IFLRA and Locals 1-405 Cranbrook, 1-417 Kamloops and 1-423 Kelowna of the IWA (now United Steelworkers of America). The Committee is now concentrating on program design. The Committee includes representatives from industry associations, employers, unions from the North and South Interior and is consulting with Coast stakeholders.

A number of activities are already underway:

• A labour demand, supply and gap analysis, including a demographic profile of the existing workforce in each of the target trades.
• Employers are being asked to provide company projections of workforce needs
• Subject matter expert groups of trades people and supervisors will be formed to assist with program design.
• A competitive request for proposal process for research proposals to identify best practices in apprenticeship programs; current capacity and barriers related to apprenticeship take-up; potential course providers, feasible delivery options and learning resources for upgrade training; and, quality assurance and coordination models for the industry to consider.

In addition, the Heavy Industry Training Advisory Committee (HITAC) and organized labour are leading a parallel, multi-sector project focused on electricians working in industrial settings in the solid wood, pulp and paper, oil and gas and mining and smelting sectors. For more information about HITAC check the webpage: www.hitac.ca.

The Committee will need ongoing support from employers and the Steelworkers and will also work with industry groups in other sectors.

For more information contact any of the Committee members:

Lou Bouwmeester, Tolko
250-547-2111
Rick Haffner, Pope&Talbot
250-365-4444
Tom Kirk, Tembec
250-426-9209
Keith Leech, Canfor
604-264-6240
Jerry Micklos,
Weyerhaeuser

250-497-1253
Lonnie Venera, West Fraser
250-699-6700
Michele Lanousette,
HRSDC (ex-officio)

604-666-2361
Syliva Holland,
Independent Chair

604-875-1576
Paul Sourisseau, IFLRA
250-860-3592
Greg Wishart, IFLRA
250-860-3592
Mike Bryce, CONIFER
250-564-5166
Joe Davies,
Steelworkers Local 1-417

250-319-8441
Ben Landis,
Steelworkers Local 1-423

250-470-2029
Bob Matters,
Steelworkers Local 1-405

250-489-8997
John Mountain,
Steelworkers IWA Council

604-683-1117
Norm Prevost,
Steelworkers Local 1-425

250-305-5091

To receive e-mail bulletins about this initiative contact Brenda Weatherbed by e-mail: bweatherbed@iflra.com or Committee Chair, Sylvia Holland by e-mail: sholland@radiant.net.





Negotiations

Canada and the U.S. held a negotiating session in Washington July 18-20 with a further session planned for late August in Ottawa.

Legal Issues

Nothing significant to report.

For more information please see the following websites:

BC Lumber Trade Council:
www.bclumbertrade.com
Government of Canada:
www.dfait-maeci.gc.ca/eicb/softwood/menu-en.asp
Government of BC:
www.for.gov.bc.ca/HET/softwood


Second International Symposium of Veneer Processing and Products

Forintek Canada has announced that the 2nd Veneer Processing and Products Symposium will be held in Vancouver on May 9-10, 2006. The aim of this symposium is to bring together producers, equipment and resin suppliers and researchers to discuss key issues and opportunities for the industry.

For more information go to the website: www.forintek.ca.




A Publication of the Council of
Forest Industries


Suite 1501-700 West Pender St.
Pender Place I Business Building
Vancouver, B.C. V6C 1G8

Phone: (604) 684-0211
Fax: (604) 687-4930
E-mail: info@cofi.org
Website: www.cofi.org

Editor: Anne Mauch

Desktop Publishing: Anne Ho





Here are updates on some key BC Forest Safety Council initiatives.

Safety Alerts
The Council has developed a system of Safety Alerts posted on the website that provide information about accidents and near misses so that the whole sector can learn from them. Forest companies are now being asked permission to have their internal Safety Alerts and Investigative Reports posted on the Council website: www.bcforestsafe.org. The Council has already received several of these reports from Canfor and Interfor. Feedback on this initiative has been very positive.

Faller Certification
The Faller Certification initiative is also well underway. About half of the fallers who have registered for certification have been evaluated. Experienced fallers are reminded that they must register for certification by July 31, 2005. After that date it will be much tougher and more expensive for fallers to become certified and stay compliant with WCB regulations. To register contact the office at 1-877-324-1212. A New Faller Training Pilot was held in the spring with 10 trainees receiving the 30 day training course - four are now Certified Fallers and have full-time employment. In the future New Faller Training will be offered through accredited training institutions. In addition a two-day basic chainsaw course has been developed with a pilot planned for September. For more information about Faller Certification go to the website: www.bcfallersafe.org.

TruckSafe
Another major initiative underway is Forestry TruckSafe. This initiative to address safety issues for forestry vehicles was kicked off by a "Summit" held in Prince George in early June that involved truckers, licensees, regulators, ICBC, the RCMP and many others involved in this sector. For more details about the Summit go the TruckSafe website: www.bcforestsafe.org/trucksafe/the_summit.asp

Based on the work at the Summit, leadership groups will be set up to address these issues:

  • Education and Communications
  • Vehicles and Technology
  • Responsibility and Accountability
  • Enforcement and Compliance
  • Roads & Maintenance

For more information about COFI's involvement with TruckSafe contact Anne Mauch by phone: (604) 891-1213 or by e-mail: mauch@cofi.org or Steve Kozuki by phone: (250) 564-5136 or by e-mail: kozuki@cofi.org.

Qualified Companies
The Council is now underway on a Qualified Companies initiative that will verify company health and safety programs and be designed to allow companies to participate in a WCB Certificate of Recognition (COR) program that offers a rebate to companies that become certified. The main goal of the initiative is to improve health and safety performance which will reduce the incidence of fatalities and injuries and improve the bottom line for companies.

For more information about the Qualified Companies Initiative contact Tanner Elton by phone: (604) 891-1214 or by e-mail: elton@bcforestsafe.org.


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