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BC Depends on Forestry:
British Columbia's Forest Industry of the Future
British Columbia has a proud history of growth and prosperity largely due to the abundant forest resources found within our provincial borders. Over the past century, BC's forest sector has helped drive our provincial economy, shape our local environment and provide our people with a quality of life unsurpassed anywhere in the world.
Today the forest sector continues to be the economic engine of the province, powering 25 percent of the economy. The economic activity created by the forest sector is the largest source of provincial employment, accounting for approximately one out of every five jobs.
Of the 34 Interior provincial local economic areas defined by BC Stats, 24 rely on the forest industry for the dominant share of employment income (exclusive of the public sector) making a healthy forest sector critical to their future.
The provincial interest is clearly served by a strong, competitive forest industry. Not only is forestry the largest contributor to government revenues, enabling expenditures on valued public services, but there is a remarkable correlation between industry profitability and the overall growth of the BC economy, as displayed in the graph on the page opposite. Senior governments acknowledge that without a vibrant forest sector, not only will workers and communities suffer but programs delivered by government will face severe fiscal restraints.
Challenges and opportunities: Prospects for growth
In spite of its major contribution to B.C.'s socio-economic development over the years, the forest sector has significant opportunities for growth as described in this document. By taking needed steps to position the industry for the challenges and opportunities ahead, it is envisioned the sector will add $1.2 billion in economic activity to the provincial gross domestic product as a result of incremental growth in harvests derived from the same environmental footprint.
Realizing this vision will result in an additional $500 million in direct contributions flowing to all levels of government from the industry and its employees - revenues that can be used to respond to ever increasing demands for public programs while ensuring that forest companies earn a return that encourages further investment in new technologies, products, markets and skills.
COFI believes the forest sector has the potential to generate 30,000 new direct and indirect well paying jobs - from the most highly skilled and motivated employees working in the world's safest and most efficient plants to jobs in the design and maintenance of high-tech equipment that will provide stability and continued opportunities for prosperity for forest-dependent communities across BC.
British Columbia can have an increasingly sustainable supply of quality fibre from the same timber harvesting land base for conversion into products that meet the needs of all its customers. This vision of growth can also be realized while ensuring that ongoing access to forest resources is not only secure but realized in conjunction with all stakeholders.
COFI believes all this could be realized while meeting worldwide environmental standards and in conformity with public and market expectations for responsible stewardship of our forests. Our 2010 vision is to ensure that British Columbians are recognized as extraordinary custodians of the natural beauty of our forests and committed to the preservation of its social and ecological values.
Facing the future: Responding to challenges and opportunities
While the sector has experienced challenges in recent years the provincial government has responded with a significant commitment to its revitalization. The Forestry Revitalization Plan championed by the Honourable Gordon Campbell and the Honourable Michael DeJong will, with direct involvement from industry, play a significant role in shaping the sector's future.
A roadmap to growth: eight key steps to success
Armed with a shared vision and supportive business climate the BC forest industry can accelerate the pace of the Forestry Revitalization Plan to:
- Fund investment in communities and jobs
- Improve its environmental lead
- Accelerate the pace of new agreements with First Nations
- Increase the development and implementation of new technologies
- Develop new processes, new products and new markets
- Invest in people and skills and education
We believe the steps to success must include the following:
- AAC Strategy
COFI encourages government to undertake the joint development of an AAC strategy. Over time the AAC can be increased by 10 million cubic meters per year, resulting in an additional 30,000 direct and spin-off jobs while increasing the industry's direct contribution to government revenues by $500 million per year from the incremental economic activity.
- Timber Pricing
COFI continues to support market-based timber pricing if it promotes resolution of the trade dispute with the US. The resulting timber pricing regime must be globally competitive, equitable and transparent, reflect industry's ability to pay, recognize regional and sub-regional differences and provide a fair return to the Crown.
- Laws, Regulations and Policies
COFI encourages government to continue the review and development of laws, regulations and policies that encourage the industry to grow, reshape and rationalize to efficiently and effectively achieve demanding environmental standards while serving global markets.
- First Nations
COFI encourages government to continue to provide economic benefits to willing First Nations through accommodation agreements aimed at strengthening their role in the economic activity of the industry and province and bringing a measure of stability to forestry operations.
- Market Access, Development and Promotion
COFI encourages government to continue to provide support for market access, development and product promotion activities as we seek unfettered access for BC products in world markets.
- Secondary Manufacturing
COFI encourages government to provide continuing support for secondary manufacturing. The future of the BC forest industry will in-part, rely on the successes of the solid wood secondary manufacturing sector and our technology leadership.
- Research and Development
COFI encourages government to provide longer-term sustainable support for development and commercialization of research and development including technology, processes and value-added products.
- Education and Skills Development
COFI encourages government to continue to provide support for industry-related education programs including integrated high technology.
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A more detailed view of the steps to success can be found in:  "Realizing the Vision"
(1.8MB pdf)
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