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While Coast Forest endorsed moving forward and lauds the premier's initiative we have advised government of substantive concerns and issues in the document. We also secured a commitment that the forest industry would be an integral part of future work to ensure balance and transparency. For our part, we committed to bringing a principled approach to building the new relationship. We believe important principles include:
Reconciliation and business certainty are important twin pillars of resolution. The forest industry will drive for a new relationship built on these fundamental principles of law and broader social objectives. We look forward to meaningful and good faith negotiations to achieve the win-win outcome the premier has envisioned. |
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 TECHNICAL AND PROMOTION PROGRAMS  Maintaining and growing our share of overseas markets requires high-impact, high visibility promotional programs that can be scaled to meet new opportunities and targeted to address the evolving needs and preferences of our global customers.In April, Forestry Innovation Investment and the Canada Wood Export program announced funding for 2005/06 programs, providing $2 million to Coast Forest in promotional and technical programming for Japan, as well as promotional, technical and market access work in China, the United States, Europe and Australia. The upcoming fiscal year will include completion of product development work to introduce new products in Japan, new product testing work, and the continuation of the Canada Tsuga and China promotional programs. Appearance grade promotions for the U.S. will also be launched during 2005/06. CHINA In January 2005 Canadian association representatives moved into new office space in the Dream Home China demonstration centre in Shanghai. Preparations are now underway for the construction of two wood frame houses on the site. Coastal products will be used in the interior and exterior finishing, including interior woodwork, cabinetry, exterior cladding and landscape applications."With China's housing starts equaling 10 million a year, this market offers considerable potential for coastal producers. However, increased lumber consumption attributable to wood-frame construction is in its infancy in China and there is much work and due diligence to be done in this emerging market," explains Coast Forest's CEO Rick Jeffery. The first full year of Coast Forest's China promotional program introduced coastal species to new Chinese customers through print and video materials, seminars and trade shows. Appearance grade trial projects for hemlock flooring and cabinetry were also conducted. JAPAN Japan's Housing Wood Technology Centre Experts Committee (HOWTEC) have agreed to officially recognize design stresses for E120 Hem-Fir (N), including MOE properties."This is a significant achievement for the Coast Forest technical program," says Christine Kennedy, Acting VP of Lumber Programs. "We can now publish material strength properties in the HOWTEC manual which will promote broader recognition of Hemlock's strength properties among architects and builders." Domestically, Coast Forest is working with stakeholders and government on a Hemlock plan that addresses domestic issues, such as delivered log costs, Hemlock pricing, utilization and market issues like product development, market access, and promotion. The plan builds on Hemlock's many natural characteristics to increase demand and market share for this species while addressing cost drivers to improve economics, profitability and competitiveness. STATE PROCUREMENT LEGISLATION B.C. Market Outreach Network (BC MON) and the Canadian Consulate in Los Angeles were successful at informing the California State Legislature of B.C.'s sustainable forest management and certification systems. California had proposed to adopt the U.S. Green Building Council's Leadership in Energy Efficiency and Design (LEED) Platinum standard for state-funded construction projects, however correspondence from BC MON - along with the efforts of other groups in opposition - assisted in having the legislation deferred.The LEED standard presently recognizes only FSC certification, and excludes most forest products manufactured in B.C. BC MON advised California that it believes LEED's current rating system is flawed, and that its exclusive reliance on FSC certification acts as a barrier to wood's natural advantages over products such as steel and concrete. Similar legislation is in the works in 13 other states. |
 WLAP TRUST FUND Under the Forest and Range Practices Act (FRPA) government sets objectives for specific values, and forest licensees are required to develop results and strategies in their Forest Stewardship Plans consistent with these government objectives. The success of FRPA depends on industry developing and implementing biological and operationally relevant results and strategies. To facilitate collaboration on wildlife issues the Ministry of Water, Land, and Air Protection (WLAP) has set up a $250,000 trust fund in partnership with Coast Forest. This fund will provide the critical resources necessary to improve the understanding of inventory and habitat conservation for Marbled Murrelet and Spotted Owl in the Coast Forest Region. THCR The amended Timber Harvesting Contract and Subcontract Regulation (THCR) which now focuses on the criteria of a market rate test to settle rate disputes has been deemed to be a huge improvement at the conclusion of the first arbitration under the new rules. Shorter timelines for the hearing and for the Arbitrator to issue his decision (within 15 days of the completion of the hearing) are both positive outcomes.The Arbitrator in this first case found that:
FISH SAMPLING PERMIT REQUIREMENTS As of last year the permitting side of the Ministry of Water, Land and Air Protection (WLAP) was centralized. New general application and reporting requirements as a condition of permit approval had unintended impacts on forestry related fish sampling and added a new layer of administrative burden. Coast Forest worked together with WLAP and Ministry of Sustainable Resource Management staff to ensure the permitting process reflected fish inventory / information requirements of the forest sector. It is a credit to agency staff that changes were made reflecting the flexibility needed to carry out our forest resource management practices. "We now have our permits approved and are able to carry on with business in an efficient manner," says Shane Renouf of Weyerhaeuser. "Thanks for all your help in getting the backlog straightened out." THANK YOU To former Minister of Skills Development and Labour Graham Bruce for his support and contribution to the B.C. forest industry. We wish him well in his future endeavours. |
 PROVINCIAL ELECTION With the Liberal government winning 47% of the popular vote election results indicate that British Columbians clearly want a government that focuses on good economic policy. It also signals that a stronger social agenda focused on health care and education is important.The Liberals won a comfortable majority of seats, higher than any former NDP victory over the past quarter century with the exception of the Harcourt victory in 1991, however, B.C. has returned to its more traditional split in voter support between parties. Historically, from 1972 to 1996 the NDP averaged support in the 40% range with their best showing in 1979 at nearly 46%. Congratulations are in order to Premier Campbell and the Liberal party. NDP Leader Carole James ran a credible and successful campaign, bringing moderation to her party and a more middle-of-the-road opposition to government. James's message that the NDP had moved to the centre was successful in galvanizing the party's traditional support. As a result, Vancouver Island and the coast north of Vancouver are now made up mostly of opposition MLAs which poses a new challenge to us in ensuring forestry issues are effectively represented in the coastal forest sector. Once the official vote tally is confirmed, it will be important for Coast Forest to focus on building positive relationships with the NDP and the Liberal Caucuses and the Cabinet to inform and educate them about forestry and the challenges our industry faces. "It is up to us to help the new legislature better understand the coastal forest and paper industries. We have an aggressive agenda for government action to continue revitalization of the coastal industry," says Coast Forest's Rick Jeffery. Premier Campbell is expected to appoint his new Cabinet in June. Overall, the government has a mandate to continue to focus on economic development with fiscal expenditures on social programming supported by economic growth."Coast Forest will continue focusing on ensuring the economic wealth generated by the coastal forest sector is allocated to support a healthy industry and sustainable communities as well as a positive resolution to First Nations' issues. "I believe the forest industry will continue to play a major role with the new Cabinet and government in the economic revitalization of this province," assesses Jeffery. NEW TENURES FORUM Nearly 100 participants attended a forum in April about forest planning, the economics of logging, financing, and global supply and demand so emerging entrants into the industry could benefit from new tenure opportunities created by the Forestry Revitalization Plan.Coast Forest President Rick Jeffery says, "There are more than 25 new tenure agreements in the works in our province so it's vital that this type of practical information is presented to interested parties in a meaningful way." A full report on the forum can be found on the Report page at www.coastforest.org. RADIO ADS Radio listeners in targeted coastal communities tuned into a series of radio ads in early May, sponsored by Coast Forest, that supported the Liberal government's efforts to revitalize the coastal forest sector. Jerry Lampert, Leader of the BC Business Council, pointed out that, "This election marked an amazing departure for the business community."Unlike 1996 when Glen Clark attacked Corporate British Columbia with impunity and 2001 when the outcome was predictable, 2005 saw an aggressive response from business. Individual business people, a number of companies and most business organizations were active in the campaign."CONGRATULATIONS To Coast Forest Director Rowland Price, who was appointed CEO of Delta Cedar Products in February. Coast Forest also congratulates Darshan Sihota, who has been appointed president of Island Timberlands, and Hugh Sutcliffe, who has been appointed president of Cascadia Forest Products. Island Timberlands is the recently formed company built around managing 258,000 hectares of high quality private timberlands, formerly belonging to Weyerhaeuser. Cascadia Forest Products takes over the operations of Weyerhaeuser's Crown woodlands on the coast, manufacturing operations and lumber marketing. |
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