The BC Forestry Sector

An Institutional Analysis

Dan Peach
Forestry is traditionally the largest resource industry within BC (Bone) and thus plays a vital role within our province. It has shaped the way BC has developed socially, economically and physically since it was first colonised by Europeans. Our society reflects that importance today, in our commercial, social and government institutions that regulate and drive the sector. The current sad state of our forests, as well as that of our forestry sector, are both indicative of how powerful an economic force forestry companies have become in this province.

The main economic players in the BC forestry sector are of course the logging companies. Canfor is one such company, it produces over 5 billion board feet of lumber annually (Canfor) and employs approximately 7200 employees and 2200 contractors (Canfor) and had 3.84 Billion in sales in 2006 (Canfor). Another such entity is the international giant Weyerhauser Company Ltd., which had a revenue of 22.046 billion in 2005 (Google Finance). There are also many smaller owned companies as well, such as individuals who own/operate portable mills on their own land. Companies such as these and others that rely on forestry play a large role in the BC economy and in some cases are the main or only source of income for many small "periphery" communities, sometimes becoming known as "mill towns". The processing of wood or wood fibre from these activities makes up approximately 33% of BC's manufacturing sector (Bone) and forestry and related activities made up 4.4% of the total employed labour force in 2001 (Bone). These sectors are a huge powerhouse in the BC economy and are very important in how we maintain our quality of life in this province.

The huge environmental impact of logging is totally at odds with "BC's outdoor lifestyle and tourist industry [which] rely on its pristine wilderness" (Bone) and as such many members of society have taken a particular disdain to logging companies and many of their unethical practices, such as clear cutting, harvesting old growth timber and logging area that is also habitat to endangered or threatened species. Many NGO's lobby, protest and bring attention to these issues. Examples include Greenpeace International, which was formed in Vancouver, and has protested logging techniques as well as lobby for creation of protected areas, such as the Great Bear rain forest (Greenpeace). Another prime example would be the Sierra Club of Canada, which also assisted in the creation of the Great Bear rain forest (Sierra Club). There are many smaller environmental groups as well. These groups will employ strategies such as blockading logging roads, lobbying government agencies, picketing sites and even spiking trees in order to preserve certain environmentally sensitive areas, such as old growth forests. The success of these tactics varies, but the groups themselves have had some major successes over the years and many have gathered a significant amount of members as well as credibility to their names.

With this sector being so important to the economy of BC, and with large sections of the population being so opposed to it, the government has attempted to regulate it, with varying degrees of success. Various government bodies, such as the Ministry of Forests and Range, and Environment Canada exist in order to regulate this industry. Any company logging within BC has to comply with the Forests and Range Practices act. This act requires logging companies to reforest areas with native tree species after they have been logged, as well as preserve soils and riparian areas, among other things (BC forest information). Logging companies pay very little monetary compensation for the damage they do to the environment, with a stumpage fee, a surcharge levied against them by the land owner on a per stump basis, being one of the only ones. Although it should be noted that BC was found to have some of the most "stringent forest sustainability requirements in the world" (Cashore).

BC has traditionally been, and is still in some eyes, viewed as having limitless natural resources and as a result many examples of wasteful practices and mismanagement have occurred in the forestry sector. One prime example is the practice of clear-cutting, which is the most widely used method of harvesting in BC. Thankfully this practice has been restricted to small areas of 40-60 hectares, but it is still almost universally practiced as most logging companies deem selective cutting, the alternative, as being too expensive and limiting their competitiveness (Bone). The logging companies need to exploit these resources as efficiently as possible in order to make as much profit as possible, which in turn contributes to the economy of BC and at the same time both contributes and detracts from our quality of life. Many people within BC and around the world for that matter see this exploitation of our beautiful natural environment and are opposed to it. They see the value of a tree as not just standing board feet of timber, but as part of an ecosystem and as something that is aesthetically pleasing. Both of these groups attempt to influence government regulations to enforce matters in ways parallel to their points of view. The government is kind of caught in the middle in this situation, with activists and environmental groups, who tend to be made up of members of BC's economic "core", on one side, and with residents of small mill towns, loggers and businesses involved in the forest industry who tend to be made up of members of the "periphery" on the other side. Anyone who has flown over areas of BC or spent large amounts of time in the bush (or even in local parks) can see the massive impact on the physical environment that the forestry industry has. There are swathes of forest that have been clear cut and checker our supposed "pristine" wilderness across the province, although they are conveniently usually not located right next to major highways. There are also cut marks in old stumps where boards where put in for men to stand on while cutting the trees down decades ago in almost every local park. It is easy to see that our provinces forests are becoming fragmented on a vast scale. The government regulations and lobbying by activist groups does not seem to be enough to protect our wilderness areas.

Forestry companies tend to rule the roost when it comes to influences within BC's forestry sector. They are such a driving force in our economy and play a vital role within communities in BC's periphery that any regulations enacted seem to be only half hearted measures by the government in order to appease environmental groups, rather that anything that would actually harm our forestry economy but protect our environment. Such is the power of these companies in BC's economy.

Bibliography

BC Forest Information website:
http://www.bcforestinformation.com/ retrieved Feb. 3rd, 2008

BC Ministry of Forests and Range website:
http://www.gov.bc.ca/for/ retrieved Feb. 3rd, 2008

Canfor website:
http://www.canfor.com/_resources/company/Canfor_FactSheet.pdf retrieved Feb. 3rd, 2008

Google Finance info on Weyerhauser:
http://finance.google.com/finance?q=WY retrieved Feb 3rd, 2008

Greenpeace website:
http://www.greenpeace.org/international/ retrieved Feb 3rd, 2008

Independent Study done by a Yale University professor:

Cashore B, PhD, Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations
Available at: http://www.bcforestinformation.com/sustainable-mgmt/managing-for-sustainability/documents/Jurisdictional_Comparison.pdf

Sierra Club of Canada website:
http://www.sierraclub.ca/ retrieved Feb 3rd, 2008

Bone, RM. The Regional Geography of Canada. 3rd ed. Don Mills, Ontario: Oxford University Press: 2005

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