The Province and the Haida Nation were unable to execute their Letter of Understanding (LOU) signed on May 18, 2005. This was not unexpected given the complex and difficult issues contained in the LOU.
For the licensees operating on Haida Gwaii (Cascadia Forest Products, Husby Forest Products and Teal-Jones Group) this failure risked large areas of forest that could be placed under Part 13; experience indicates Part 13 protection is de facto permanent. (continued on page 4)
I recently read a University of Victoria (UVIC) report on the closure of the Youbou sawmill, hoping to learn something that could assist in the industrial restructuring taking place in the coastal forest sector.

Unfortunately, I was disappointed as the recommendations trotted out tired and worn social mantras that were unsupported by any economic analysis reflecting the competitive market realities facing the coastal industry. Once again it was argued that provincial forest policies that provide forest products companies with flexibility undermine the economic viability of forest-based communities. The tonic for this was more community-based and cooperative forestry and an emphasis on value-added forest products. The authors concluded that this social forestry agenda would create the highest possible level of sustainable employment and income for communities.

Having worked in the industry for 25 years - in the union, as a forest consultant, for loggers, for remanufacturers and now for Coast Forest - I have gained a wide range of perspectives and experience.

Here's what I've learned. The forest industry requires a large amount of capital; the risk is high and the returns low. It is not for the faint of heart or the under capitalized. We all share common goals that include sustainable employment, healthy forest communities and sustainable forests, but these benefits can be realized only if you have globally competitive forest product companies.

The largest and longest public private partnership in British Columbia exists between the province and the forest industry. The industry's role in this partnership is to provide the capital and the expertise while managing the land to society's expectations. The government's role is to set a forest policy framework that fosters and encourages a world class industry. The benefits of this partnership include revenue to the Crown to pay for social goods and services, including sustainable employment and communities. But there is another important objective that always seems to get lost in the mix: It is in the best interest of all British Columbians to increase the asset value of the forest resource over time. This is accomplished when the value of the resource is maximized and that requires a policy framework that is market based.

The Liberal government has started down this road. However, reports like the one produced by UVIC raise the real question for government, for communities and for current and future forest workers: Do we want to have a viable, sustainable forest industry on the coast? (continued on page 4)

Mai-no-Umi's slight stature yet mighty strength make him the ideal spokesman for Canada Tsuga in Japan.
Access to the latest information on manufacturing technologies is a key element in ensuring the success of Coast Forest's member companies. In May, the Association attended the Ligna Trade Fair in Hannover, Germany to meet up with some of the leading names in the global woodworking industry.

Coast Forest's Barry Ford accompanied Dr. Dave Barrett of UBC and Michael Loseth of Forestry Innovation Investment to the event to meet with equipment manufacturers and review the changing technologies for glued laminated timber, laminated veneer lumber and oriented strand lumber, as well as machine grading systems and structural wood adhesives.

While we know hemlock products offer comparable strength properties to those of competing engineered products, market and global production trends continue to favour engineered wood products.

"In the coming months, the information the Association gathered at the Ligna trade show will provide the basis for more detailed feasibility assessments," explains Coast Forest's Rick Jeffery. "Providing this type of support to member companies helps inform decisions in technology investment and raise awareness about important new additions to the hemlock product family."


SUMO WRESTLER'S STRENGTH BRANDS HEMLOCK He's the Japanese personification of the "Little Engine That Could". Once considered too small to even make the pro ranks of Sumo, Mai-no-Umi's sheer strength, technique and determination prevailed, leading him to achieve the maximum high rank of Komusubi in his wrestling career. Now retired, Mai-no-Umi (translated Dancing Ocean) is using his reputation for strength to promote B.C. hemlock in Japan.

In June Mai-no-Umi led a delegation of Japanese media to our coastal forests to see firsthand how British Columbia is leading the world in sustainable forest management, harvesting practices and manufacturing processes for hemlock. The trade media delegation toured TFL 39 near Powell River, two manufacturing facilities in the lower mainland and Forintek during their visit.

"This is a credible way for the coastal forest industry to reach the Japanese customer," says Coast Forest's Rick Jeffery.

Coast Forest's strategy for increasing market share in Japan includes continued work with the Japanese government to develop fire code and construction changes that encourage wood use, developing new kiln-dried products that are superior to engineered wood and marketing hemlock in a way that resonates with the Japanese customer as a product of superior strength and quality.

These efforts are beginning to pay off. Following the launch of Mai-no-Umi's campaign in Japan market share rose (by 4%) for the first time in a decade.

LEED GREEN BUILDING RATING SYSTEM Coast Forest has urged the U.S. Green Building Council to re-examine its "credit" policy in its Leadership in Energy and Environmental Design (LEED) system for certified wood.

The LEED system provides "credits" earned through the selection of building sites, use of technologies to support efficient energy and water use, selection of materials and resources, and other factors. Credit is available for the use of Forest Stewardship Council (FSC) certified wood products, but is not granted for other proven, independent and respected certification programs, such as those offered by the Canadian Standards Association and Sustainable Forestry Initiative.

Independent studies have demonstrated that B.C. has among the most stringent forest policies in the world. Beyond the province's forest policy framework, B.C. companies have achieved voluntary certification of 41.8 million hectares of forest land - more than any other jurisdiction in the world (except for the entire country of Canada). These systems provide third-party assurance of well-managed, sustainable forests.

"It makes little sense for the LEED standard to favour one forest certification system over another, or to impose a barrier to the use of renewable, sustainably harvested wood products," says Coast Forest's Christine Kennedy, Acting Vice President, Lumber Programs.

For more information visit our website's Current Views page at www.coastforest.org

SHANGHAI INTERNATIONAL CITY GARDEN AND LANDSCAPE SHOW
Coast Forest and the Western Red Cedar Export Association were represented together at the 3rd Shanghai International City Garden and Landscape Show in May. The full-sized gazebo booth included both western red cedar and treated hemlock products, demonstrating these coastal species to an audience of more than 13,000 visitors engaged in China's landscape and garden design sector.

A recent federal court decision by the Honorable Justice James Russell has ruled that marine log salvage does not meet the criteria of the Canada Shipping Act and is purely a local and private matter, falling under provincial jurisdiction and suitably regulated by the province's existing Log Salvage Regulations.

"This is good news for the coastal forest industry," says Clay Brown, Coast Forest's General Manager of Security Systems. "It means the province will retain jurisdiction over the log salvage business on the Fraser River, ensuring the orderly return of 50,000 cubic metres of stray and lost logs back to the industry each year."

Representing the majority of log owners who transport and store logs in the Vancouver Log Salvage district, Coast Forest Products Association and the Independent Timber Marketing Association intervened as co-defendants in the case which dealt with the recovery, return and remuneration paid for logs salvaged on the Fraser River.

Early Recovered Resources salvaged logs on the Fraser River until 1999 when the company began proceedings against the B.C. government to have log salvage governed by the Canada Shipping Act, which incorporates the international convention on salvage and provides financial incentives that would increase fees paid to salvagers.

Coast Forest's Fraser River Security Patrol will continue to monitor the log salvage industry to ensure salvors are complying with provincial regulations.

Log salvage wood tied up at the receiving station in Langdale.

SECOND GROWTH STRATEGY Earlier this year the Ministry of Forests & Range (MOFR) provided observations gleaned from two rounds of Timber Supply Review on the coast in a report called "Second-Growth Harvest Opportunities in Coastal B.C. - We Have Choices". The report outlined key factors influencing timber supply and provided a variety of options for managing the transition from an old-growth timber harvest to a predominantly second-growth one.

Currently, Coast Forest is working with the Ministry to develop detailed timber supply options for a number of Timber Supply Areas with the objective of expanding the chief forester's findings to create a broader second-growth strategy for the coast. In initiating this action, Coast Forest President and CEO Rick Jeffery noted that "we need to understand all the salient issues in light of current market conditions and challenges facing coastal hemlock".

Objectives going forward are to:

  • identify opportunities for second-growth harvest
  • assess current and future harvest regulations (constraint versus incentive based)
  • identify the potential redistribution of harvest
  • identify allowable annual cut impacts with an increased second-growth harvest
  • ensure all financial attributes are considered and understood.
The outcome of this joint initiative is expected to be the development of recommendations on whether to proceed with a formalized second-growth strategy for the coast which will be presented to the MOFR executive and to Coast Forest's Board.

FPPR SECTION 7 WILDLIFE OBJECTIVES Coast Forest hosted two successful workshops in May providing guidance on how to write results or strategies for Section 7 wildlife objectives. The workshops were attended by approximately 60 participants from industry, B.C. Timber Sales and (then) Ministries of Water, Land, Air Protection, Forests and Sustainable Resource Management. On-the-ground examples specific to licensee operations were used in practical, hands-on exercises to improve the understanding and ability of member companies to develop appropriate results and strategies for approval.

Wildlife under the Forest and Range Practices Act (FPRA) is addressed through objectives that trigger requirements for results or strategies in Forest Stewardship Plans (FSPs) and specific practice requirements that are enforceable.

COMMONWEALTH FORESTRY ASSOCIATION DINNER Coast Forest and the Council of Forest Industries were sponsors of the Canadian Chapter of the Commonwealth Forestry Association's (CFA) inaugural dinner held on May 27 in Vancouver. The CFA promotes the sustainable management, use and conservation of forests worldwide for socio-economic advancement and maintenance of the natural environment.

Dr. Phil Evans, Director of the Centre for Advanced Wood Processing at UBC, was presented with the first ever CFA North American Medal for outstanding services to international forestry. Evans was recognized for leading work on the surface properties of wood and their effect on wood's resistance to weathering and its finishing properties.

Canada Tsuga Ambassador Mai-no-Umi is welcomed at a reception hosted by Coast Forest Products Association at the Royal Vancouver Yacht Club in June. The event was well attended by local lumber brokers, Japanese media, forest companies and provincial government representatives.
Coast Forest represents 26 forest and paper companies in coastal British Columbia engaged in the harvesting and manufacturing of primary and added value forest products, and pulp and paper products. Together, these companies manufacture 95% of the lumber produced on the coast, 70% of the pulp and paper production and are responsible for 70% of the total harvest. The Association works to ensure that the five coastal species and their product lines have fair access to the global marketplace. Committed to providing leadership to create a thriving forest industry, Coast Forest facilitates cooperation between stakeholders and government on behalf of its member companies.
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Coast Forest Products Association
1200-1090 W. Pender St.
Vancouver, BC Canada
V6E 2N7
www.coastforest.org
e-mail: info@coastforest.org
Tel: 604.891.1237
Fax: 604.682.8641

PRESIDENT'S PERSPECTIVE (CONT'D FROM PAGE 1) If the answer is "No" then let's turn out the lights and shut the door, sooner than later in fairness to all those who will be affected by the decision. If the answer is "Yes" then we need to build a common vision of what the real future is for the coastal forest sector and set about developing then implementing a strategy to realize that vision and its potential.

I am bullish on this subject. We have a great resource on the coast, a great history and great people. To achieve our potential we need to set aside preconceptions, motherhood and sophistry and confront the market realities. The status quo will simply result in even more fractured lives

HAIDA UPDATE (CONT'D FROM PAGE 1) As it became apparent that the 30-day process contained in the LOU would fail, the licensees and Coast Forest met with the Minister of Forests and Range (MOFR) and senior MOFR staff to find alternative ways to create an environment to restart a constructive and reasonable land use planning process.

The outcome was an agreement to implement a voluntary 90-day deferral of planning and permitting activities in these areas while discussions continue. Hopefully, Haida agreement to this arrangement is a sign of a commitment to make the land use plan work in a manner that respects the interests of all parties.

For our part, Coast Forest remains committed to working together with the parties to ensure the land use plan moves forward with a balanced approach that will result in sustainable environmental practices, an economically viable forest industry and sustainable Island communities. Companies are making every effort to maintain economic stability for forest workers and their families.

"For resource management to be successful, especially in a unique ecosystem like Haida Gwaii's, it is important that science determine which resource areas require protection in a land use plan," says Industry Advisor Dave Kennedy, President of Strategic Aboriginal Consulting.

Recently, the companies wrote to the residents of Haida Gwaii in their local newspaper to inform readers about the issues. In response, one Port Clements reader wrote to the editor saying: "It is unacceptable to proceed with the Haida co-management plan leaving the rest of us 65 per cent yet again out of the mix. The economic uncertainty that the majors feel is fully shared by the rest of the business community, particularly the small business forestry and value-added operators."

CWC ADVANCES #1&BTR GRADE The Canadian Wood Council has moved forward proposed values for No.1 and Better grade D Fir-L and Hem-Fir lumber for inclusion in the next edition of CSA Standard O86, "Engineering Design in Wood". Originating from a Coast Forest Products Association request to open markets for coastal species, particularly in the U.S., CWC gained acceptance for this grade in the U.S. on behalf of the National Lumber Grades Authority (NLGA) earlier this year, and has provided supporting information and background for this proposal.

CONGRATULATIONS Western Forest Products has announced the retirement of Clem Trombley, General Manager for Lumber Sales, effective October 14. Clem is one of WFP's longest-term employees, beginning his career in May 1968 as a Grade Supervisor with the Sawmill Divisions.
Sarah Goodman has been named vice president, Government and Public Affairs for Weyerhaeuser Canada.

SETTING IT STRAIGHT In the June 2005 issue of the Coastal Clarion we stated: The Liberals won a comfortable majority of seats, higher than any former NDP victory over the past quarter century, however, B.C. has returned to its more traditional split in voter support between parties. This is in fact incorrect as Mike Harcourt's victory gave the NDP a 27-seat majority in 1991.



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