2000/01 Annual Performance Report Table of Contents


Appendix 2: Special Accounts–Statutory

Statutory authorities are in place for several Special Accounts in which the Ministry of Forests has significant involvement, through funding and/or providing services, personnel or materials.

Forest Stand Management Fund

This account was originally established as a fund by the Forest Stand Management Fund Act, 1986, and was changed to a Special Account under the Special Accounts Appropriation and Control Act. Revenue is provided by contributions from municipalities, the forest industry, forest sector unions, and others.

Expenditures provide for enhanced management of British Columbia’s forest and range lands, and for related projects. No financing transactions are provided for under this account, and no reports are included.

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Small Business Forest Enterprise Program (SBFEP)

This account was established in 1988 to identify all revenues incidental to the operation of the SBFEP, and to provide an ongoing source of funds to defray the costs of the program. Qualified individuals and firms register in this program to purchase Crown timber from the province. Market loggers make up the majority of registrants.

The main objectives of the SBFEP are to:

  • provide opportunities for existing and new businesses in the forest industry,
  • promote diversification and jobs,
  • support competition and profit, and
  • encourage sound, integrated forest management throughout the province.

The SBFEP also provides opportunities for a considerable number of private-sector contractors to construct roads, reforest land, measure and protect the timber resource, and assist in planning forest management activities.

Revenue is derived from upset and bonus stumpage, annual rents, trespass charges, scaling and registration fees, and sales of logs. Revenue in excess of current expenditures and future basic silviculture requirements is returned to the province’s general revenue fund. In 2000/01, $118 million was returned. This is a decrease from the previous year, reflecting the challenges faced by the forest sector as both the price of lumber in the U.S. market and Asian demand remained weak, and a larger percentage of program harvest was insect-damaged timber.

Expenditures are made for administration, logging road and bridge construction and maintenance, the costs of selling timber and logs, and basic silviculture to restock logged lands.

2000/01 Highlights

Accomplishments under the program during 2000/01 are reported under "Goals, Initiatives and Results in 2000/01" (beginning on page 6).

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South Moresby Implementation

In 1988, the governments of Canada and British Columbia established the Gwaii Haanas National Park Reserve/Haida Heritage Site and Gwaii Haanas Proposed National Marine Conservation Area Reserve in the Queen Charlotte Islands of British Columbia. Each government contributed $12 million to create the South Moresby Forest Replacement Account to help offset the resulting reduction in timber supply and the associated loss of forestry jobs. In 2000, the governments signed an extension of the account until March 31, 2007.

2000/01 Highlights

During this fiscal year, the account mainly funded the continuation of projects from 1999/00. The federal/provincial management committee co-chairs met with other agencies and the communities to develop a new strategic plan, and communities suggested options for management of the fund. The federal and provincial governments are reviewing those options.

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Forest Renewal BC

Forest Renewal BC, a provincial Crown corporation, is an investment agency. Its mandate is to plan and implement a program of investments to renew the forest economy of B.C. It does this by enhancing the productive capacity and environmental values of forest lands, creating jobs, providing training for forest workers, and strengthening local communities that depend on the forest industry. Forest Renewal BC promotes regional equity and participation, wide representation for stakeholder groups, and sensitivity to the needs of the environment.

2000/01 Highlights

The primary role for the Ministry of Forests in the Forest Renewal BC delivery model is related to ministry stewardship and statutory functions (e.g., resource management planning, Forest Practices Code approvals and enforcement, and technical standards).

The ministry negotiated a $14 million 2000/01 service contract with Forest Renewal BC, by which the corporation purchased two ‘products’ from the ministry: planning and standard agreement model delivery.

  • Planning: Through the development of a Resource Management Plan, the ministry provides input from a forest resource stewardship viewpoint, identifies resource investment opportunities, and ensures that funding requirements for critical resource management activities (e.g., brushing and backlog silviculture) are met.
  • Standards Agreement Delivery: For many Forest Renewal BC land-based activities, the ministry negotiates a Standards Agreement with the proponent for the type and standard of work to be done. This agreement is the means by which the ministry manages Forest Practices Code obligations for silviculture and watershed restoration activities. For non-codified work (e.g., inventory and forest health), this document is the means by which the ministry ensures that work quality is achieved on behalf of Forest Renewal BC and the government.

In 2000/01, the Ministry of Forests also negotiated goal agreements, with Forest Renewal BC to act as a lead proponent, for a total of $16 million. This funding was used to accomplish:

  • field goals in all six ministry forest regions,
  • province-wide projects – primarily inventory infrastructure that is needed to support the operational Inventory Program, Traditional Use Studies, technical support, and training projects associated with the Enhanced Forestry and Watershed Restoration programs, and
  • activities associated with the Operational Tree Improvement Program, such as operational breeding and testing, enhanced delivery (i.e., seed orchard management, and family and clonal forestry), information support and gene conservation communication and extension, and capital investments in seed production.

The corporation’s activities are reported in detail in the Forest Renewal BC 2000/01 Annual Performance Report. For more information, refer to www.forestrenewal.bc.ca

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