As of June 20, 2003, B.C. Timber Sales became the agency that auctions the rights to harvest standing timber to market loggers, sawmill operators, lumber remanufacturers and specialty wood products manufacturers, replacing the former small business forest enterprise program.

Currently, B.C. Timber Sales provides access to 13 per cent of the provincial allowable annual cut (AAC), the balance being held by major licenses and small tenures, like community forests. The proportion of cut allocated by B.C. Timber Sales will increase starting in 2004, as timber is reallocated from major licensees. Eventually, 20 per cent of the provincial AAC will be auctioned by B.C. Timber Sales.

All timber sales auctioned by B.C. Timber Sales are awarded to the highest bidder. Operators that want logging rights must compete on the basis of price only, ensuring a level playing field for all operators and maximum return over the long term to the public of B.C.

Increasing the volume of timber sold on a competitive basis is a key element in government’s plan for a market-based pricing system. Under this system, auction prices will be used to calculate the price paid (stumpage) for Crown timber harvested on all tenures.

The Forestry Revitalization Plan encourages new opportunities for the value-added sector by providing more access to timber and by encouraging timber to flow to its highest and best use within B.C. To ensure certainty for value-added firms during the transition to a more market-based system, the province has:

• Continued to sell a portion of timber exclusively to those individuals or firms that own sawmills or manufacturing plants, but on a competitive basis only. This volume is 2.9 million cubic metres – the same as under the former small business forest enterprise program.
• Allowed value-added firms to compete on all timber sales offered by B.C. Timber Sales, in effect, expanding the timber available to them.
• Continued to invest in product development and marketing activities for the value-added sector through the Forest Investment Account.

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