British Columbia’s forest sector has been the single most important contributor to the standard of living in this province for more than 100 years. Over that time, our province and the industry have changed considerably – and in today’s world we are struggling to keep pace. Fundamental changes are urgently needed so that B.C.’s number one industry can continue to provide benefits to the people of this province.
The one constant in recent decades has been B.C.’s dependence on foreign markets to buy our forest products. Customers outside this province buy almost 90 per cent of our forest products – more than $14 billion worth were exported in 2001 – which make up half of all goods exported out of B.C. each year.
British Columbia is not the only producer of forest products. Other suppliers of wood and alternative building products like steel and plastics are aggressively pursuing our customers. B.C. has not been able to fully meet these increased competitive pressures, and the impact has been widespread:
The province began regulating commercial activity in Crown forests in 1865. Since then, successive governments have developed new policies and regulations in response to shifting needs and demands. When new rules caused unforeseen problems, other well-intentioned regulations or new programs were added, which sometimes created even more complications. Eventually, government set the price of timber, decided who had cutting rights, and dictated where timber was processed and into what products.
Over decades, these policies and the forest sector’s response to market conditions and other realities have shaped B.C.’s forest sector into one with limited opportunities for new participants and little incentive for finding innovative ways of using wood. As well, various regulations evolved into restrictions on normal business decisions that acted as a drag on the entire sector, hampering reinvestment and making the sector vulnerable to changing conditions.
The ultimate cost of this was borne by the public, as the forest resource could generate less revenue for government services. And communities and workers began to experience greater insecurity as the forest industry became less competitive and more unstable.
Today, government is taking a new approach by introducing comprehensive reforms that will open up opportunities to more British Columbians. These reforms will help build a more diverse forest sector that will allow timber to flow to its highest and best use within B.C. As the forest sector becomes more able to compete successfully in global markets, it will create more stability for B.C.’s forest-based communities and more opportunities for those living in them.
In addition to retaining public ownership of our forests and ensuring strict environmental standards are met, this new approach will enable the forest sector to build on its strengths and respond to domestic and global change. The result will be the long-term sustainability of the forest, the forest sector, and the benefits they deliver to every person in British Columbia.
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