Volume 4, Issue 7 July, 2006

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President's Memo
Lumber Prices
See you in September
Forest Fuels a Burning Issue for Interior BC, Report Finds
BC Competition Council Presents Recommendations
Mitsui Homes Chairman Visits Prince George
Peter N. Affleck Memorial Graduate Scholarship in Forest Policy
FERIC, Forintek and Paprican to Team Up in a Single Research Institute for the Forest Sector
Canadian Trade Commissioners Tour Northern BC Forest Operations
COFI Helps Fort Nelson Celebrate as BC’s Forest Capital
Softwood Lumber Trade Update
CANPLY Announces New Organization

Lumber Prices: SPF R/L 2X4


Source: Madison's Canadian Lumber Reporter
(www.madisonsreport.com)



July 15 was Parks Day in BC. With the creation of 24 new conservancies and the establishment of four new “Class A” provincial parks this spring, British Columbia now has more than 800 provincial parks and protected areas covering 13.9 per cent of the province. It is the largest provincial parks system in Canada.

We are fortunate in BC to have a land base that can support both a world class forest industry and parks like the 947,026 hectare Tatshenshini-Alsek Provincial Park which, together with adjacent parks in Alaska and the Yukon, forms the world's largest international World Heritage Site. Comprehensive land use planning that involves British Columbians directly in planning related to the protection, resource development and other uses of their public lands has made BC a world leader in sustainable forest management.

I hope you have an opportunity to get out into BC’s great outdoors this summer with your family and friends. If you do, please remember to report wildfires at Report a Wildfire: 1-800-663-5555 or *5555 from a cellular phone.

Enjoy a safe and happy summer vacation!




John Allan



Forest fuel reduction needs to become a priority consideration in forest management policy and practices, especially in the Southern Interior of the province, according to the Forest Practices Board.

The Forest Practices Board commissioned a report on forest fuel management last summer. The report provides the board’s conclusions and recommendations on this very complex issue.

Forest fuels are living and dead trees, branches, needles and vegetation that will burn in the event of a wildfire. A 60-year history of fire suppression, insect and tree disease epidemics, and logging practices are all contributing to a build-up of fuel. Meanwhile, the encroachment of urban development into forested areas increases the risk of catastrophic wildfires. “This is a complex problem,” said board chair Bruce Fraser. “However, we must recognize that areas with excessively high fuels create a risk to the public and to important forest values, such as community watersheds and habitat for endangered species. We need to take action through our forest policy and practices to prevent further fuel build-up. We also need to begin reducing the fuel levels in those areas most at risk.”

“Where prescribed fire is an appropriate tool to reduce fuel levels, consideration must be given to addressing the risks of fire escape and liability, and to public health concerns about smoke.” In response to the findings of this review, the board makes a number of recommendations, including:

  1. Clear targets for fuel reduction in important areas need to be established.
  2. A provincial system to accurately assess and map fuels is needed.
  3. Prescribed fire is the most practical means of reducing forest fuels in appropriate areas and this practice needs to be returned to the landscape.
  4. Fuel reduction practices that do not further add to the fuel problem need to be tested and implemented.
  5. The provincial government needs to continue to encourage and support fuel reduction activities in wildland-urban interface
  6. areas.

For more information go to the website: www.fpb.gov.bc.ca/news/releases/2006/06-19.htm


The B.C. Competition Council has presented an extensive set of recommendations to the Province for enhancing the competitiveness of British Columbia’s economy.

“In addition to specific recommendations for each sector, the report’s main section advises government and industry on a number of issues that are affecting the competitiveness of all sectors in the B.C. economy, or what we called cross-sector issues,” said Dan Miller, council co-chair. Cross-sector issues include education and skills training, regulation, taxation, infrastructure and energy. Taken together, the recommendations would cost government $350 million, rising to $450 million by 2009/10.

“Education and skills development are one of the most important contributors in building a successful economy,” said Miller. “We have made a number of recommendations concerning professional and post graduate studies, recognizing immigrant credentials, and industry’s obligation to offer co-op and intern programmes. Most significantly we are calling on industry and government to sponsor an additional 7,000 apprenticeships over the next three years.”

David Thompson, council co-chair, noted that there were eight tax-related recommendations, all aimed at building on British Columbia’s already favourable tax regime. The most significant is a recommendation to provide an incentive to attract and retain the skilled and professional workforce necessary to meet existing and future labour requirements, by making British Columbia’s personal tax rates the lowest in Canada for those who earn between $67,500 per annum and $150,000.

“B.C. already has the lowest personal income tax rates for those who earn below $67,500 per annum,” said Thompson. “If implemented, the proposed reduction would mean that 99 per cent of all employees and self employed taxpayers in British Columbia would have the lowest personal tax rates in Canada.”

Thompson stated: “The aim of the recommendations in this report is to ensure that British Columbia is the best place in Canada to visit, live, work, learn and invest.”

The complete Competition Council Report and the individual Industry Action Committees’ reports are available on line at www.bccompetitioncouncil.ca.


 

Mr. Osamu Ogawa, Chairman of Mitsui Homes Ltd. and also Chair of the Japan 2X4 Association recently visited Prince George, compliments of Canfor, for a first- hand look at local sawmill operations, Canfor’s tree nursery and the impact of the Mountain Pine Beetle epidemic. Ogawa-san was accompanied by Mitsui Homes Canada’s President, Mr. Toyotaka (Tony) Tsuijkawa and General Manager, Mr. Atsushi Okumura as well as Canfor’s General Manager, Offshore Sales & Marketing, Mr. Scott Maxwell and Ms. Junko Yanagwa, Account Executive, Canfor who acted as the official ‘translator’ for the group.

Following a tour of Canfor mills and tree nursery, the group met with COFI North staff for lunch, a presentation on the Mountain Pine Beetle epidemic including potential impacts on lumber supply to Japan and a discussion of BC’s world class forest management practices. The group also toured the site planted by the Mitsui 30th Anniversary Commemorative Delegation in 2005. Mr. Osamu Ogawa hosted a ‘meet and greet’ dinner with local Industry leaders later that evening.

For more information contact Doug Routledge, Vice President, Northern Operations by phone at: (250) 564-5136 or by e-mail at: routledge@cofi.org.

COFI members and staff were saddened and shocked at the untimely passing of Peter Affleck, Vice President Forestry, on May 1, 2006. In memory of Peter, the Council of Forest Industries joins with many others to establish the Peter N. Affleck Memorial Graduate Scholarship in Forest Policy at the University of B.C.

Peter was recognized across Canada as a dedicated, effective and highly respected advocate for the forest sector. Providing assistance to young people in developing knowledge and a passion for good forest policy is something we are confident will be considered a fitting tribute to Peter.

It is now up to Peter’s friends and colleagues to join with us in establishing the fund that will support the provision of annual scholarships to forestry students at UBC in his name.

Please consider making a contribution today as we must raise a minimum amount before the University can formally establish the scholarship. Contributions are tax deductible.

Cheques should be made out to: UBC – Peter N. Affleck Scholarship Fund and mailed to:

Dan Worsley
Associate Director
Awards, Gifts and Estate Planning
The University of British Columbia
Suite 500 – 5950 University Boulevard
Vancouver, B.C.
V6T 1Z3

Contributions will be gratefully received from corporations, associations, governments and individuals.


The Boards and Member Companies of FERIC, Forintek and Paprican research institutes have voted in favour of the creation of a new structure to spearhead their activities.

The Institutes will be working together to develop an integration plan which will be presented to their respective members for final approval in the next six months.

FERIC's goal is to improve Canadian forestry operations related to the harvesting and transportation of wood, and the growing of trees, within a framework of sustainable development. Its mission is to provide all members and partners with the knowledge and technology to conduct cost-competitive, quality operations that respect the forest environment. The Institute's research program is developed with the guidance of regional advisory committees that include representatives of all members and partners. Ongoing feedback helps address the broad spectrum of technical problems encountered during the planning and implementation of all aspects of forestry operations.

Forintek Canada Corp. is Canada's national wood products research institute. Its mission is to develop scientific and technical knowledge, application and solutions that will enhance the ongoing competitiveness of its members and the Canadian wood products sector. Based on priorities set by its industry and government members, it delivers technological solutions in such areas as lumber, panels, and other value-added wood products manufacturing processes or attributes, drying and protection, building systems, etc. Forintek also conducts market and economic studies, and plays a key role in the development of building codes and standards, both nationally and internationally.

Paprican, the Pulp and Paper Research Institute of Canada, is a leading not-for-profit research and technology institute that provides valuable technology transfer and cost-competitive research addressing both the short-term and strategic needs of its Members. Its research programs are driven by the high-priority technical issues of the industry such as product quality and value, cost competitiveness, environment and sustainability. Internationally recognized for excellence, Paprican operates laboratories in Quebec and British Columbia, and is well positioned to offer services to the global pulp and paper industry.


 

Hosted by BC market Outreach Network and assisted by COFI, a group of nine Canadian Trade Commissioners from Atlanta, Denver, Los Angeles, Minneapolis, Seattle, Tucson, Tokyo, Ottawa and Vancouver spent two days on the coast and two days in the interior learning about BC’s forest industry.

While in Prince George, local industry representatives took time out of their busy schedules to host the group on both forest and mill tours. Delegates were given a helicopter tour south of Prince George with representatives from Dunkley Lumber and Canfor to learn about BC forest practices and the effect of the Mountain Pine Beetle epidemic. The heli tour included on-the-ground stops of forest management as well as Mountain Pine Beetle attacked stands. A tour of Dunkley Lumber’s high out-put random length sawmill south of Prince George to better understand BC’s lumber manufacturing was a highlight of the day. In the evening the Commissioners attended a presentation outlining the economics and competitiveness of the interior forest industry.

Day two of the tour included stud manufacturing, finger jointing and home component manufacturing as the delegates toured Lakeland Sawmill, Brink Forest Products and Winton Global Homes. The two day interior tour ended with the Commissioners attending a dinner with local community and business leaders at UNBC.

Trade Commissioner William Stolz from Atlanta Georgia effused, “This was the best trade mission I have ever been part of.” It gave the Commissioners first hand exposure and understanding of the operational economic and sustainability issues involved in producing forest products on the coast and in the interior.

The tour was made possible with the generous contributions from the above mentioned companies as well as Carrier Lumber’s helicopter and the logistic support of COFI’s Northern Operations’ staff. BC Market Outreach Network provided significant financial, planning, and logistical support.

For more information contact: Chris Lear, Forest Education Manager, COFI Northern Operations by phone at: (250) 614-4352 or by e-mail at: lear@cofi.org.

or Karen Keller-Brandt, VP Market Communications, BC Market Outreach Network by phone at: (604) 685-7507 or by e-mail at: Karen.brandt@bcmon.ca.


COFI Helps Fort Nelson Celebrate as BC’s Forest Capital

COFI partnered with Fort Nelson to help celebrate its BC Forest Capital designation with a new “Welcome to Fort Nelson” sign in the newly renovated airport terminal. The sandblasted cedar sign depicting the 2006 Forest Capital of BC insignia was unveiled July 18th by Mayor Chris Morey, Airport Manager, Jim Ogilvie and COFI North VP, Doug Routledge.

COFI North VP, Doug Routledge noted that: “what attracted us to the idea of an airport welcome sign is that it leaves a legacy product from the celebrations – a gorgeous cedar sign to welcome all air travelers to your town and to your region – as a permanent reminder of your year-long celebration of our industry”.



A Publication of the Council of
Forest Industries


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

Editor: Anne Mauch

Desktop Publishing: Anne Ho

On July 1, 2006 Trade Minister David Emerson and USTR Ambassador Susan Schwab initialed a Canada/U.S. Softwood Lumber Agreement. The federal government will submit the Agreement to Parliament in September with an anticipated effective date of October 1, 2006.

For more detail please see the noted websites.

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 Canadian Plywood Association (CANPLY) is creating a new organization to service Canada’s engineered wood products sector. The new group will be known as CertiWood Technical Centre (CertiWood). CertiWood will be based at CANPLY’s Technical Centre in North Vancouver, British Columbia.

CANPLY, and its predecessor organizations have provided certification, testing and quality auditing services exclusively to Canadian plywood and veneer manufacturers for over fifty years. CertiWood will continue to provide these services and CANPLY member companies will become founding members of the new organization. CertiWood will also be able to offer these services to manufacturers of oriented strand board (OSB), glue-laminated lumber (Glulam), laminated veneer lumber (LVL), I joists (I-Joists) and other engineered wood products. By providing services to a larger sector of the engineered wood products industry, access to CANPLY's renowned reputation for quality and reliability can be cost effectively delivered to all engineered wood products manufacturers.

In making the announcement on behalf of the Board of Directors, CANPLY President Jim Shaw stated, “We are confident CertiWood will enjoy even greater success than CANPLY because it can serve a larger cross-section of the wood products industry. Our staff is highly educated, trained and dedicated to providing our members with service and support that in turn, provides an “edge” to those companies in the marketplace. Customers of plywood, veneer, OSB, Glulam, LVL, I-Joists and other engineered wood products want assurance that these products are the best quality and come from sustainably managed forests. CertiWood can offer that assurance and will build its reputation with satisfied members and their valued customers.”

CertiWood’s new website, www.certiwood.com, will detail the full range of services and support available to members. The site will also include a visual tour of CANPLY’s Technical Centre in North Vancouver. Members will be encouraged to invite their customers to tour the facility and see first-hand what makes CertiWood the first choice in certification, testing and quality auditing services to the structural panels and engineered wood products sector.

For further information contact J.F. (Jim) Shaw, President, CertiWood Technical Centre at: (604) 981-4175.


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