British Columbia’s Mountain Pine Beetle Action Plan 2005–2010

Objective #1

Encourage long-term economic sustainability for communities affected by the epidemic.

In the short term communities in the impacted areas may experience an economic benefit due to increased harvesting and forestry activity related to salvage. However, this increased activity will be temporary and will begin to decline by the end of the decade. Since economic development and diversification can take several years, work will be initiated now with communities, First Nations and the federal government to address future needs.

Forestry is at least 30 per cent of the direct and indirect income in many of the affected communities, and much higher in some. The projected future decline in annual timber harvest levels will result in a decline in forestry based incomes in the area – expected to be 25 per cent or more of the present income level in several communities.

Established sectors like tourism and agriculture will be encouraged to operate to their maximum capacity, and to grow where feasible, however they alone cannot make up the shortfall. The mining and energy sectors have significant growth capacity and will be encouraged to fill the gap.

2005/06 Actions:

1. Assess the long-term timber supply that has historically supported communities and identify possible alternative economic opportunities for when the supply declines.

The timing and distribution of the bark beetle damage will differ for communities. It will be necessary to assess the timber supply situation again post-epidemic and plan accordingly.

2. Assess immediate and long-term impacts of the change in forestry activities on forestry-dependent communities and First Nations in and near the epidemic area.

Plans, programs and priorities will be based on the unique circumstances of and impacts on individual communities. This work will involve affected communities who will have a key role in directing the expenditure of funds to enable economic diversification and recovery.

3. Accelerate the development of other resource-based sectors (mining and energy) to diversify the economic base of the region.

Although economic growth and diversification will be encouraged in all sectors where opportunities can be identified, only the development of oil, gas and minerals offers the potential to offset large scale declines in forestry during the next 20-30 years.

4. Encourage new, expanding and emerging forest and non-forest products businesses.

Without compromising existing businesses, opportunities will continue to be identified to encourage value-added and innovative forest products businesses, as well as other businesses that will benefit the local, regional and provincial economies.

Five-Year Actions:

• Ensure established sectors such as agriculture and tourism are at their maximum potential.

The government will work with the business sector to identify and implement measures that will encourage the agriculture, tourism and other established job-creating industries to operate at full capacity.

• Continue to work with communities, First Nations and the federal government to undertake research and identify opportunities to prepare for future impacts by building on existing and new economic diversification and adjustment options.

All levels of government will need to contribute effort and resources to ensuring the options for future economic well-being are fully accessed.

• Identify infrastructure requirements to accompany economic growth and diversity initiatives.

As mid- to long-term economic measures are identified it will be necessary to address the infrastructure requirements that will facilitate development.

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