"These
measures will not be easy, painless or welcomed by all.
Restructuring of this magnitude simply cannot be made without
some short-term dislocation. But restructuring is needed
now. It cannot wait."
"The Coastal industry is in deep trouble and has implored
the government to act, despite the attendant hardships and
growing pains that will inevitably result in the short-term.
To delay further would be to invite devastating consequences
and unthinkable permanent job losses."
Throne Speech, February 11, 2003
The
Campbell government will announce its painful changes to
forestry on Wednesday, March 26. As unusual as it was for
the Throne Speech to foreshadow painful changes, the Speech
suggested that the pain and dislocation would be short-term.
Don't hold your breath waiting for the government to
define how long the short-term may be, or to provide estimates
of future employment levels in the forest industry.
Campbell's
New Era Document promised to "Increase the Allowable
Annual Cut over time through scientific forest management,
proper planning, and incentives to promote enhanced silviculture."
Don't expect government to put numbers on its promise
by saying how long it will take to increase the cut or to
what level. Vague promises about long run benefits and
increased timber supply are sugar coating for a bitter pill
as the government moves to satisfy the US on market reforms.
A key
question that the US will examine when it looks at changes
in BC's stumpage system will be whether the market in standing
timber and logs is "significant". BC has set aside
$275 million as a one time fund to assist with the transition
in forestry. Most of that will be used to compensate companies
who will lose existing tenure rights. It is unlikely that
$275 million can buy enough tenure to create a "significant
market".
The
US
believes that "Provincial programs contain a number
of conditions, including tenure, processing, and cut restrictions,
that insulate lumber producers from the market." The
US also warned that "Properly structured timber auctions
or log markets must also eliminate the potential for collusion
among bidders on timber sales." The US has specifically
said that regulations dealing with minimum cuts, local processing
requirements and restrictions on mill closures must be eliminated.
Those changes will produce the pain that was mentioned in
this year's Throne Speech. They will result in the loss
of a significant number of jobs. That might be described
as a move to market driven efficiency. In choosing that
course, the BC government has a responsibility to provide
assistance to workers and communities that will be on the
losing side of the changes. It is not good enough to
say to "dislocated" forest workers, as they did
to government
workers, "good luck in the market economy."
About
Me | Mail Me
| My Stuff