|June 21, 2004||Ministry of Forests|
UPDATED CONTRACTING RULES IN TIMBER HARVESTING
An amended Timber Harvesting Contract and Subcontract Regulation, which governs the relationship between major forest tenure holders and independent contractors they hire to do harvesting and road building, will take effect June 21, 2004.
The regulation, commonly called Bill 13, also governs the relationship between contractors and their subcontractors. As part of the Forestry Revitalization Plan, government committed to work collaboratively with contractors and licensees to improve the regulation.
This collaboration has led to a regulation that establishes a new method to set contract rates that reflect market conditions, and a more efficient and effective way to resolve disputes. It also establishes a process to address, in part, the impacts of timber reallocation on contractors.
Maintaining certainty for contractors
The new regulation offers contractors certainty by:
Greater role for market forces
British Columbia's forest sector must be globally competitive to be sustainable. The amended regulation allows forestry operators to manage their businesses in ways that better reflect the markets. For example, the regulation:
Process for determining impacts of AAC reductions
Under the Forestry Revitalization Act, about 20 per cent of the long-term logging rights held by the largest tenure holders in B.C. will be taken back by government. This timber will then be reallocated to other parties to support market-based pricing of public timber, and to increase the role of First Nations and small tenures in forestry.
As a result, contractors working for a major licensee subject to the reallocation may be impacted by AAC reductions. The amended Timber Harvesting Contract and Subcontract Regulation now includes a process that will guide the parties in dealing with AAC reductions due to reallocation. The process was developed jointly by licensees and contractors, and gives replaceable contractors a vote on the licensee's AAC reduction proposals.
Until timber is reallocated, licensees are expected to operate according
to their approved forest plans and cutting permits. Once timber is
reallocated, contractors will have access to additional timber volumes
through BC Timber Sales and new licence holders. Impacted replaceable
contractors and their employees will be eligible for assistance from the
B.C. Forestry Revitalization Trust, a $75-million fund designed to assist
individuals impacted during the transition to a more competitive forest