Volume 3, Issue 11 November, 2005

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President's Memo
COFI Annual Convention 2006—A World of Opportunity
Forest Expo 2006
Mayor Jim Togyi Retires
Biodiversity in Forest Ecosystems
Province Funds Projects to Develop New Products and Uses for Mountain Pine Beetle
Bulkley Valley-Lakes District Community Dinner 
Asia Tour Presentations—Forest Education North
Truck Loggers Association—2006 Convention
ABCFP—ExpoFor
Softwood Lumber Trade Update
McBride Forest Industries Upgrades with New Lathe
BC Progress Board Discussion Paper
Research and Development Tax Credits

COFI Board Meetings
December 6, 2005


COFI Annual Convention
"A World of Opportunity"

April 5—7, 2006
Grand Okanagan Lakefront Resort



As we near the end of 2005 I want to assure all members that we are actively and directly engaged with the Ministry of Forests on a number of files.  Paramount among these is the proposed change to log grades.  While revenue neutral interior wide, this change could have profound implications for a given company.
 
I also want to mention that the Wood Products Advisory Committee Report to the Competition Council is nearing completion and is scheduled for presentation to the Council on December 1, 2005.
 
I will have more to say on both of the above issues in the next newsletter.



John Allan



Join us in Kelowna, at the Grand Okanagan Lakefront Resort, on April 5th to 7th 2006 for an opportunity to explore the market opportunities for the BC forest industry. 

The 2006 Annual Convention, themed “A World of Opportunity” will provide insights and directions for markets of the future, in North America, Asia and throughout the globe.

The conference will provide sessions and events of interest to industry CEO’s, vice presidents, marketing and production managers, senior representatives from suppliers and equipment firms, law firms, financial institutions, senior federal, provincial and local government staff, chambers of commerce, Mayors, MLA’s and MP’s, as well as local, regional and national media.  The convention will bring together key industry, government and customer representatives to identify key opportunities, challenges and successes in our global marketing efforts.

There will be something for everyone at the convention with executive panels on key markets; senior government perspectives; supplier exhibits; and, networking opportunities including a networking reception on Thursday evening.

Speakers include Paul Dodge, of Centex – one of the leading home building companies in the US, Mike Thompson, representing Weyerhaeuser in China, Jacques Caron, Canada’s Ambassador to Japan; David Emerson, Minister of Industry, Premier Gordon Campbell and Rich Coleman, Forests and Range Minister.

This is an opportunity to gain a better understanding of the issues, opportunities and challenges facing the BC forest products industry, while networking with customers, suppliers, industry leaders, community leaders and policy makers.

For more information contact Diana Gillrie, COFI South, by e-mail: ac2006@cofi.org or by phone: (250) 860-9663 or by fax: (250) 860-0009.




Fort St. James Mayor Jim Togyi was honoured recently at COFI’s Bulkley Valley-Lakes District community dinner.
 
First elected to Fort St. James Council in 1976 Jim served in local government for 22 of the last 29 years.  During that time Jim was a tireless advocate not only for his community but also for the forest industry and its importance in the economies of rural BC communities.  Jim also served as Chair of COFI Northern Operation’s Community Relations Advisory Committee up until a few years ago.
 
Jim’s contribution to the industry’s community relations program was acknowledged with a gift of a hand turned wooden bowl with stone inlay.  While Jim is retiring as Mayor he has assured us he intends to remain active on issues of importance to Fort St. James, even in “retirement”.

For more information contact Doug Routledge by e-mail routledge@cofi.org or by phone: (250) 564-5136.




The Province is investing nearly $730,000 in 13 projects to develop new products and uses for mountain pine beetle-wood, Forests and Range Minister Rich Coleman has announced.

“Recovering as much value as possible from beetle-affected wood by developing new uses and markets is a key part of our Mountain Pine Beetle Action Plan,” said Coleman.  “The projects we’re funding will allow B.C.’s forest industry to more efficiently manufacture high-quality products from beetle-wood.”

Bleaching out the blue stain caused by the beetle for a more attractive appearance;
Applying preservatives for longer lasting products; and
Increasing moisture content for better quality fibre strands for structural panels.

The projects each determine how beetle-attacked timber can be used to its fullest potential by testing its viability in a variety of product applications such as laminated decking and flooring, structural panels and particleboard, structural beams made of laminated wood, and other products. Initial results will be reported in spring 2006.
 
This funding, delivered through Forestry Innovation Investment Ltd.’s mountain pine beetle product and market development program, is part of the Mountain Pine Beetle Emergency Response: Canada-B.C. Implementation Strategy – the Province’s three-year business plan for the $100 million received from the federal government to mitigate impacts of the beetle.
 
B.C.’s Mountain Pine Beetle Action Plan is designed to help support impacted communities and First Nations as they plan for economic development and diversification. For more information, visit the web page:
www.for.gov.bc.ca/hfp/mountain_pine_beetle/


COFI’s Bulkley Valley-Lakes District community dinner was held this year at the Smithers Golf & Country Club on November 3rd.  Mayor, Jim Davidson welcomed guests to Smithers and noted the value of COFI’s dinners for both industry and communities.
 
This year’s dinner featured Omineca Beetle Action Coalition (OBAC) interim Chair, Len Fox speaking about OBAC’s plans for bringing west central BC communities together to address Mountain Pine Beetle related community economic stability issues.
 
Over 80 guests from Terrace to Fort St. James received the presentation and then probed Mr. Fox’s views on the challenges ahead due to the Mountain Pine Beetle.  The lively discussion reflected area resident’s keen interest in understanding the potential effects of the epidemic as well as the potential proactive measures that might be taken locally to maintain community and economic stability into the future. 
 
A core component of COFI’s regional community relations programs the dinners are held annually in various locations throughout the interior.  The dinners draw community leaders from the region to hear about forest industry issues of the day and to network with senior forest industry representatives.
 
For more information contact Doug Routledge by e-mail routledge@cofi.org or by phone: (250) 564-5136.


Chris Mushumanski, Forestry Teacher SD No. 91 (Nechako Lakes), and COFI Northern Operations Forest Education Manager Chris Lear teamed up to give presentations on their recent Wood Marketing Tour of Japan and China to the Forest Expo Board of Directors in Prince George, October 24th and a community presentation in Vanderhoof November 15th.  The presentations highlighted the historical and cultural influence as it relates to acceptance of wood products as well as the state of current wood markets and the challenges and opportunities found in both countries.
 
These two community presentations are the beginning of community and school presentations being offered across north central BC.  In addition to the presentations, new teaching resources are being developed to help high school students and teachers learn more about the Asian market.
 
For more information contact Chris Lear, Manager, Forest Education, Northern Operations by e-mail: lear@cofi.org or by phone: (250) 614-4352.


'CHAMPIONS OF CHANGE' 
JANUARY 17 – 20th, 2006
 
VANCOUVER CONVENTION AND EXHIBITION CENTRE
 
THE PAN PACIFIC HOTEL & THE FAIRMONT WATERFRONT
 
THE TLA 2006 convention theme is TLA – Champions of Change. This theme comes at a time when change, an infinite constant, is profoundly impacting the coastal forest trade as we all work to bring about restructuring and the return of prosperity to an industry that influences each of our lives.
 
For more information check the website:  www.tla.ca/itoolkit.asp?pg=convention



1.   International Trade Commission

On November 15, 2005 the WTO Injury Final Compliance Panel Report was released publicly.  The Report confirmed a previous announcement that the WTO Panel had ruled that the ITC had complied with the Panel’s original decision with a “no threat of injury” finding.  This outcome will be appealed to the WTO Appellate Body.

2.   AD/CVD Duties

On November 12, 2005 the NAFTA CVD Panel gave the DOC until November 23, 2005 to issue a new determination.

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




The BC Progress Board released a discussion paper today on British Columbia's energy sector. The paper, "Strategic Imperatives for BC's Energy Future", was prepared for the Board by Sage Group Management Consultants of Victoria, BC. The document surveys BC’s current energy situation and makes a number of suggestions for action.
 
"Energy is an essential ingredient in the economic growth process and is central to our quality of life and to maintaining and improving our high standard of living", noted David Black, BC Progress Board Chair and President of Victoria-based Black Press Ltd. "BC faces the significant near to medium term challenge of planning and building for future electricity requirements", Black remarked. "BC has added almost no electricity capacity since the early 1980s, despite population growth of over one-third since then", Black continued.
 
To see the report recommendations and download a copy go to the BC Progress Board website: www.bcprogressboard.com/index.php

A Publication of the Council of
Forest Industries


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Website: www.cofi.org

Editor: Anne Mauch

Desktop Publishing: Anne Ho





Are you aware of the Canada Revenue Agency (CRA) program for Scientific Research and Experimental Development (SR&ED) Tax Credits?  If not, it may well be in your interests to learn more because one third-party consultant asserts that “80% of claimants get 80% of what they claim”.  The CRA stated that the total tax credits allowed under the SR&ED program amounted to over $1.8 billion.

Manufacturing and natural sciences are among the sectors with firms that have successfully obtained tax credits.  In fact, CRA representatives speaking at a recent FERIC meeting indicated they are familiar with forest management and forest product manufacturing activities.  There are plans to produce a guidebook for forestry applications, as has been done for the pulp and paper sector.

The eligibility tests are universal but applied on a case-specific basis.  An example might be customized modification of mobile equipment in pursuit of productivity gains, but where the outcome is uncertain.  If eligible, up to 35% of the incremental costs for this experimental development can be recovered by the business in the form of federal tax credits.

Are you developing, or improving, a new product?
Are you creating, or improving, a new process?
Are you developing custom machinery?
Are you developing prototype equipment?

For more information contact Steve Kozuki by e-mail kozuki@cofi.org or by phone:  (250) 564-5136.

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