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Ready for Change The forest industry in the coastal region of British Columbia, historically the driving force of the region's economy, has been struggling for several years. The available supply of timber is declining, costs have risen and product markets have weakened. In consequence, profits have withered, mills have closed, employment has fallen and whole communities have lost their economic base. The present outlook is for more, if not accelerating, decline. Yet there is every reason to believe the vast forests of this region are capable of sustaining a healthy industry. What would that healthier industry look like? What would it take to turn things around? Would it be worth the cost and dislocation? These questions motivated the investigation that led to this report. |
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Last September, the Minister of Forests, the Honorable Michael de Jong, appointed me as a Special Advisor to review the faltering forest industry in British Columbia's coast region and to investigate the causes of its weakening performance. I was also asked to examine the opportunities for a more productive and sustainable industry, and how it might be realized. This report summarize smy findings. My report begins with a brief description of the deteriorating condition of the coastalforest industry, emphasizing the recent decline in its financial performance, production and markets, which together have led to the industry's current plight. The following three sections examine in more detail the problems that have arisen in harvesting, manufacturing and marketing forest products, and the impacts of new regulatory measures. The final segments consider the potential for a more healthy, sustainable industry, and the changes that would have to be made to realize it. In carrying out this project I benefited from the observations and advice of a considerable number of people with interests in the coastal forest industry - chief executives ofthe major operating companies, representatives of forest workers and contractors, woodlot owners, advocates of environmental protection, local government officials, First Nations leaders,independent consultants and others. I want to acknowledge, especially, the assistance I received from officials of the Ministry of Forests, who generously responded to my many requests for data and other information, and particularly Mr. Terry Chantler, who helped me throughout this project. I benefited, as well, from a large number of recent staff reports, consultants' studies and reviews on related matters. That said, this is an independent review, and I am solely responsible for the information contained in it and any consequent failures of understanding. Peter H. Pearse, C.M. |
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