British Columbia's forest sector strategy, released under the BC Jobs Plan, will build on and grow six priorities planted by the Working Roundtable on Forestry to support a more vibrant sector that supports employment in every part of the province.

"Our Natural Advantage: Forest Sector Strategy for British Columbia" was released today as part of a Gorman Bros. Lumber mill tour in Westbank.

Encouraging markets in Asia to make B.C. forest products their first choice in building materials will increase demand for lumber and strengthen the forest sector. Gorman Bros. Lumber is one example of a forest company that stands to benefit from this focus on market diversification as they export 28 per cent of their production overseas to countries such as Japan and Korea.

The strategy will also enhance B.C.'s forestry advantage with actions that support the wood-first commitment, growing trees, carbon storage, a competitive operating climate, innovation, diversification, rural economies, and First Nations' participation.

The strategy calls for new applications and expanded use of wood construction in non-residential and mid-rise buildings.

Ongoing investment in reforestation, silviculture activities, and forest carbon projects will result in fast-growing forests to address timber supply challenges created by the mountain pine beetle infestation.

B.C.'s forest sector will continue to transform and innovate to meet the need for green energy and help build the bio-economy.

The forest sector strategy also involves continued opportunities for community forest agreements, the woodlot program and helping First Nations move forward as partners in forestry.

Quotes:

Premier Christy Clark -

"Our government is committed to protecting and creating jobs in B.C.'s forest industry. In fact, the successes that the forest sector has had in opening new doors to markets in Asia were the inspiration for our BC Jobs Plan. We want to build on their success by continuing to strengthen our trade relationships abroad so the industry can thrive here at home."

Steve Thomson, Minister of Forests, Lands and Natural Resource Operations -

"Our forests and timber resources provide a valuable natural advantage to increase the momentum behind Canada Starts Here: The B.C. Jobs Plan. This new forest sector strategy also builds on the Working Roundtable on Forestry and will enable job creation, open new markets, and prepare us for the opportunities of tomorrow."

Pat Bell, Minister of Jobs, Tourism and Innovation -

"Over the next few years we're going to build on the momentum established by WoodFirst and grow the market for non-residential construction throughout North America, enabling creation of more B.C. jobs."

John Allan, president and CEO, Council of Forest Industries -

"We're pleased to see the provincial government has developed a strategy that will fully leverage the strengths of the B.C. forest sector. It builds on our reputation for sustainability, and encourages competitiveness, investment and innovation - which are key to building the sector."

Rick Jeffery, president, Coast Forest Products Association -

"The actions in the strategy help support competitiveness, which we need here on the coast to attract new investment."

Quick Facts:

• 42 local governments have passed Wood First policies or resolutions since October 2009.

• On average, B.C. plants 200 million trees each year.

• B.C. exported 22.7 million cubic metres of lumber in 2011 (up nine per cent over the previous year).

• B.C.'s forest product exports totalled $9.95 billion in 2011.

• Over 53,000 workers were employed in 2011 in the B.C. forest sector.

• First Nations hold more than 300 forest tenures across the province.

Learn More:

Our Natural Advantage: Forest Sector Strategy for British Columbia

www.for.gov.bc.ca/mof/forestsectorstrategy/

We want to hear from you. Please share your ideas at www.bcjobsplan.ca We specifically want to know what you think needs to be done to attract and retain young, skilled workers in the forest sector. The discussion begins Thursday, April 26.

3 backgrounders follow.

Contact:

Vivian Thomas
Communications Manager
Ministry of Forests, Lands and Natural Resource Operations
250 356-2475

BACKGROUNDER

Building on Our Natural Advantage

The Forest Sector Strategy addresses priorities identified by the Working Roundtable on Forestry. It builds on the roundtable's vision for a vibrant, globally competitive forest products industry by sharpening the focus on:

1. The commitment to using wood first.

2. Growing trees, sequestering carbon, and ensuring land is available to produce a range of forest products.

3. Creating a globally competitive, market-based operating climate.

4. Embracing innovation and diversification.

5. Supporting prosperous rural forest economies.

6. First Nations becoming partners in forestry.

Some of the actions include:

Wood First

• B.C. will capture larger shares of the non-residential and multi-family housing construction sectors in the U.S. The goal is to export 400 million board feet of lumber to the U.S. non-residential market in 2012/13.

• Expand six-storey wood frame construction to non-residential applications.

• Construction of the Wood Innovation and Design Centre in Prince George to stand as a wood first icon and centre of excellence for product development.

Growing Timber

• Ongoing investment in reforestation and silviculture.

• Innovative silviculture partnerships and forest carbon restoration projects. A request for proposals was issued in January 2012 to reforest 1,000 hectares of Crown land damaged by mountain pine beetle and wildfire.

• High use of select tree seed (from orchards) in Crown land reforestation.

• Implementation of landscape fire management planning. This includes targeted harvesting to create firebreaks, removal of hazardous fuels, and prescribed burning to support healthy ecosystems.

Stay Globally Competitive

• The Expert Panel on Tax will complete its formal review of B.C.'s tax competitiveness by Aug. 31, 2012.

• The regulatory framework for forest resources will be improved. This includes market sensitivity of the timber pricing system, streamlining processes, and enhancing client-centred service.

• BC Timber Sales opportunities. Innovative, area-based timber sales will minimize waste and get as much value as possible from timber harvest sites.

• FibreConnections BC and WoodSource BC will improve investors' access to wood fibre.

• Log export policies are being reviewed.

Increase Innovation

• Implement the recommendations of the MLA Bio-Economy Committee.

• Continued funding for FPInnovations to identify and demonstrate opportunities to lower investment barriers, and increase the successful adoption of bio-products and services.

• Increased utilization of coastal hemlock and balsam fir trees for new product uses such as decking and sound abatement fencing.

• Genomics research to increase forest resiliency in response to changing climate and environmental conditions.

• Research to create lignin (chemical compound found in woody biomass) with different consistencies and properties to diversify the range of pulp products offered by B.C.

Strengthen Diversity

• Increase softwood exports to China by 20 per cent in 2012/13.

• Increase exports to Japan by 10 per cent in 2012/13 with lumber for earthquake and tsunami reconstruction as well as larger public and institutional building projects.

• Capitalize on housing trend in South Korea for healthier, more energy-efficient homes.

• Heighten demand in India for B.C. softwood compared to tropical hardwood products.

Support Rural Forest Economies

• Continue to create community forest agreement opportunities.

• Continue to expand of the woodlot program.

• Create new types of forest tenures for smaller operators to harvest roadside debris left behind by primary harvesters.

• Develop innovative strategies to deal with worker recruitment and retention challenges.

First Nations Forestry

• Thirteen new Forest Tenure Opportunity Agreements expected to be reached in 2012/13.

• Up to eight new First Nations Woodland Licences awarded in 2012/13.

• Twenty-two more revenue-sharing agreements expected in 2012/13.

Contact:

Vivian Thomas
Communications Manager
Ministry of Forests, Lands and Natural Resource Operations
250 356-2475

BACKGROUNDER

Log export policy and review

In British Columbia, the provincial government is responsible for regulating log exports from provincial land, and the federal government regulates log exports from private land. Since it was introduced in 1912, the Forest Act has always included provisions for limited log exports.

Since the mid-1980s, cedar, cypress and high grades of other coastal tree species are not allowed to be exported from provincial jurisdiction lands.

Provincewide, the volume of public timber exported as logs is a fraction of the annual harvest of public timber - usually less than 10 per cent. Of that, over 85 per cent of B.C. log exports are from the Coast. In B.C., wood products, pulp and paper and logs are all exported. Logs make up about five per cent of B.C.'s total forest product exports.

The government and public preference is for all logs to remain in B.C. to be manufactured into other products. Before any timber can be approved for an exemption from manufacture the timber must be considered surplus to local mill needs usually by offering them for domestic sale first, unless there is an Order in Council. The vast majority do not receive any bids from domestic manufacturers. Any offers received are reviewed by a Timber Export Advisory Committee, which meets monthly.

The Timber Export Advisory Committee reviews the offer to determine whether it meets domestic fair market value. In December 2011, the Timber Export Advisory Committee changed some factors it uses in considering fair market value. As part of a review on log export policy, the ministry has commissioned an independent expert to provide further advice on what factors should be considered in determining domestic fair market value.

On Haida Gwaii, the mid-coast, north coast, and northwest, Orders in Council allow the export of up to 35 per cent of logs harvested and considered surplus due to economics associated with harvesting in those areas. Since 1985, there has also been an Order in Council in the Nass timber supply area that allows for up to 100 per cent of the harvest to be exported.

The government recognizes that allowing some exports provides opportunities to harvest timber that would otherwise not be harvested, increasing the supply of timber to domestic mills. Some forest companies on the Coast use their ability to export logs, and the premium price from exported logs, to support harvesting and sending logs, that would otherwise remain unharvested, to domestic mills.

In summer 2011 the minister committed to review log export policy in light of the increasing public concerns about the amount of coastal logs being exported. A report on the results of the log export review is expected later this spring.

The last major change to log export policy was in August 2004 when the coastal fee-in-lieu of manufacturing was raised from 100 per cent of the difference between the export log value and the domestic log value per cubic metre to five per cent to 15 per cent of the domestic value per cubic metre of the log, depending on tree species and quality. In 2011, the Province collected $21.3 million from the fee-in-lieu of manufacture.

Contact:

Vivian Thomas
Communications Manager
Ministry of Forests, Lands and Natural Resource Operations
250 356-2475

BACKGROUNDER

Ensuring a sustainable timber supply

Ensuring a sustainable timber supply, with the right mix of tree species, is a top priority for the ministry. British Columbia is world-renowned for its sustainable forest management. More than 53 million hectares of land are certified to one of three independent and internationally recognized sustainable forest management standards. That's more certified land than any other jurisdiction in the world apart from Canada as a whole.

B.C.'s forests are managed sustainably so future generations can also enjoy the benefits from our forests. B.C. has 55 million hectares of productive forests, but of that only 22 million hectares is considerable suitable for commercial forestry. About 155,000 hectares - less than one per cent - is harvested each year.

Forest Practices

• Under the Forests and Range Practices Act and regulations, licensees are required to show how their operations will be consistent with government objectives for 11 key resource values before they are allowed to begin logging.

• The ministry's Compliance and Enforcement Program monitors licensees' performance and is finding high levels of compliance with the Forest and Range Practices Act.

• The ministry's Forest and Range Evaluation Program monitors the impact of forestry operations on resource values and makes recommendations for improvements in practices and/or the overall forest management framework.

• As well, the independent Forest Practices Board conducts random audits and consistently finds that licensees meet requirements over 90 per cent of the time.

Reforestation:

• On average, more than 200 million tree seedlings are planted each year on public forest land in B.C. About 238 million seedlings have been sown for planting in 2012.

• British Columbia uses a mix of over 20 different native tree species in its reforestation programs.

• By law, licensees are required to reforest the areas they harvest.

• The province created the Forests for Tomorrow program in 2005 to reforest areas impacted by mountain pine beetle and wildfire that would otherwise remain unharvested.

• Since 2005, Forests for Tomorrow has invested $236 million, surveyed one million hectares and planted more than 60 million seedlings over 50,000 hectares.

• After fire or harvest, reforestation occurs by planting or by natural regeneration (reforestation from naturally occurring seed or from roots).

• About 20 per cent of harvested areas are reforested naturally; the balance by planting.

• The province's Chief Forester has established standards to regulate the registration, storage, selection and transfer of tree seed. These standards are aimed at maintaining and enhancing the health and productivity of B.C.'s future forests.

• The Province has programs in place to conserve the genetic resources of B.C.'s native tree species. These include conserving natural tree populations in parks, protected areas and provincial forests, and gene archives. The goal of these programs and the reforestation requirements is to ensure that B.C.'s forests contain genetic diversity, an important element in maintaining ecosystem resilience.

• The ministry is implementing a Climate Change Adaptation Action Plan that will ensure future forests are resilient and well-adapted to a changing climate. The plan has many elements such as species diversity objectives and climate based seed transfer.

Forest Inventories:

• B.C.'s inventory program is one of the largest, most complex inventory programs in Canada.

• Given limited resources in today's economic climate, the ministry is focusing its inventory efforts on areas where knowledge is lacking or conditions are changing quickly because of the mountain pine beetle epidemic. This approach ensures that the ministry will have the right information at the right time to make important strategic decisions.

• The ministry has made great progress in updating the forest inventory over the last few years, with 4.5 million hectares re-inventoried in 2011/12.

• Increasingly, we are taking advantage of innovative and cost-effective tools (such as satellite imagery) to assist with the inventory process. These tools are increasing our productivity and helping the ministry to maintain current, reliable forest inventories for B.C.

Forest Health

• Each year the ministry does aerial overview surveys to identify forest health concerns and priority areas for treatment.

• In addition to the mountain pine beetle, in 2012, the ministry will be treating forests for spruce budworm, western hemlock looper, and Douglas fir tussock moth.

Mountain Pine Beetle

• The mountain pine beetle has affected more than 17 million hectares of B.C.'s interior lodgepole pine forests.

• As part of ongoing management of the pine beetle infestation, the Province is assessing opportunities to limit projected impacts to communities due to shortfalls in timber supply. This mitigation work includes socio-economic analysis as well as timber supply analysis.

• The Ministry of Forests, Lands and Natural Resource Operations is assessing potential opportunities for harvesting some areas that have been set aside for old-growth management and scenic values.

• The ministry is ramping up silviculture investments and reforestation efforts in the hardest-hit areas to help mitigate impacts to the timber supply.

Land Based Investment Strategy

• Each year the ministry releases a land-based investment strategy which outlines the ministry's funding priorities for managing natural resources on B.C.'s Crown land.

• The 2012/13 Land Based Investment Strategy, planned at $78.6 million, will be released in the coming weeks.

Contact:

Vivian Thomas
Communications Manager
Ministry of Forests, Lands and Natural Resource Operations
250 356-2475