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Pine beetle epidemic: We shouldn’t have to beg for funding

By 250 News

Saturday, July 30, 2005 09:17 AM

-By Peter Ewart 



Prince George Golf Course            photo by Dave Mynan

The pine beetle epidemic is a natural disaster of the highest magnitude. Once the epidemic plays out in ten years or so, it is estimated that across the province, BC communities will be facing a 20% to 40% reduction in the Annual Allowable Cut of timber, and the loss of thousands of jobs. Prince George will be hit hard, but smaller communities throughout the North like Quesnel, Vanderhoof and Burns Lake could be devastated.

Northern BC is one of the most productive forest product regions in the world, producing in some years enough lumber to build 650,000 houses, not to speak of huge volumes of pulp and paper, as well as value added products and raw logs. The revenue that this region produces for the provincial and federal governments through stumpage and taxes is astronomical, conservatively estimated to be between $600 million to over $1 billion a year.

You might expect that, with that amount of revenue generation for the provincial and federal governments, the people here, who are very hardworking and industrious, would receive back a substantial amount of this revenue to further develop industry and infrastructure in the region, as well as address natural catastrophes like the pine beetle epidemic. But you would be wrong. We live in a province that is highly centralized with political power concentrated in the Vancouver / Victoria region, and, ultimately in the Premier’s office. The federal government has a similar concentration of power, but its centre is back East.

As a result of this concentration of power, the North has been drained of revenue for many years and has watched powerless as successive provincial governments have squandered opportunities, sold off assets (such as BC Rail) and misdirected revenues. The latest misdirection of revenues is, of course, the Vancouver / Whistler Olympics which are set to take place in 2010. Forestry, along with other resource extraction and manufacturing industries, have sustained this province for over 100 years. Yet, at a time, when forestry is undergoing an unprecedented crisis, the provincial government for the next five years will be focused on a risky two week extravaganza that amounts to a gigantic subsidy for a number of large construction companies and tourist enterprises operating in Vancouver.

So representatives of this region have had to go cap in hand to both the provincial and federal governments and request funds to help the affected communities deal with the beetle disaster. What has been the response? The provincial government has tried to shift responsibility to the federal level by requesting a $1 billion dollar aid package, and the federal government has responded in kind by arguing that forestry is a provincial issue.

Both levels of government have pledged grossly inadequate funds so far. For example, the federal government has announced it will provide $100 million and the provincial government $50 million. The provincial NDP has proposed an all party committee to tour the province and get input from communities, as well as create a fund from the extra revenue being generated from the beetle kill wood. The provincial Liberals have rejected this proposal outright labeling it as “just rhetoric” and insisting that they have a plan in place, although some are saying that the plan is outdated because it was formulated in 2001 before the full impact of the beetle infestation was manifest. As part of their plan, the Liberals have supported the formation of beetle epidemic focused community coalitions which will act as “advisory committees” to the provincial government.

Now it can be argued that the both the NDP and Liberal initiatives have some merit. But there are deep underlying flaws also. The NDP idea to set aside funds from the beetle kill stumpage for communities to work with is heading in the right direction. But the problem is that it is more of an “ad hoc” proposal specific to the pine beetle infestation, rather than a recognition that provincial funding mechanisms have to change permanently, allowing communities in the Interior and North a defined share of all stumpage revenue (not just the pine beetle wood stumpage) in order to build up infrastructure, engage in economic development, etc. It is disgraceful that Northerners who produce so much for provincial and federal coffers should have to beg for funds.

The community coalitions that have sprung up also have some positive aspects to them, because with their formation, there is a recognition that Northerners know how best to deal with the beetle epidemic. However, these community coalitions are still largely advisory committees, with the final say remaining in Victoria. Northerners have a long and bitter experience with provincial advisory committees. Time and time again, we have participated in them, only to find out later that final decisions had already been arrived at in Victoria or Vancouver.

In the 1500s, Copernicus challenged the longstanding, but profoundly mistaken, view that the sun revolved around the earth. Today, we accept the idea that the reverse is true, that the earth revolves around the sun, and we marvel at how so many people could have been wrong for all those centuries leading up to Copernicus’s time. Today, there is another prevailing view that is just as wrong, namely that the provincial economy revolves around Vancouver and its service and tourist sectors. This view has been extremely harmful for the Interior and North, the main manufacturing and resources extraction areas of the province. Yet successive governments cannot see beyond it, and insist on controlling the forestry revenues generated from up here, diverting these revenues to non-productive or ill-advised projects in the Lower Mainland, as well as maintaining a highly centralized decision-making process which keeps Interior and Northern communities out in the cold.

It is clear that the existing political structures in the province discriminate against communities in the Interior and North. Not only is the government based in the Lower Mainland, so are the “main” political parties. What is to be done? We need political figures from here who recognize the economic power of the Interior and North, and its vital contribution to the provincial and federal economies, and who are not reluctant to say so. We also need new political structures and organizations that will help empower people and communities in rural areas, and allow them to flourish, rather than to be taken for granted and sucked dry. But these won’t come without a fight.

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Comments

Great article Peter. IMO the only solution left is for Northern BC to form its own Province as Canada's 11th Province. We have the population of the Maritime provinces and three times the economic capability of those provinces.

I advocated for a triple EEE senate within the BC Legislature containing 2 MLA's from 7 BC regions in addition to the aboriginal's for a total of 16 Senatorial MLA's to address this problem at the Citizens Assembly. The Lower Mainland bunch did not see the merit in this and advocated a different system. I supported their recomendation as a start in the right direction and the people of BC voted overwhelmingly for this with a 58% majority decision.

Obviously our current corporate controll Lower Mainland based government has no interest in following through with democratic reform that will address the democratic deficit. This calls for a new game plan IMO.

The Province Of Northern BC has a nice ring to it and in my opinion is the natural evolution for this region. The sooner we get started the better.

Time Will Tell
Fire it up Chadder! How about the "northen province of dreamers and fools"? Because that is what it sounds like to me, oh well just some fools opinion.
later.........
As we all know, the economy of Northern BC revolves around primary industry – Forestry, Mining, Agriculture and Fishing. What we sometimes forget, though, is that such industries dominate the economies of developing nations and developing regions of countries. The south of BC is a world apart. It is dominated by secondary manufacturing and the tertiary service industries. As the province develops further, the primary industry roots take up an ever diminishing role. It is a natural transition of maturing countries and regions which can be observed over and over again in other parts of the world.

While this region may supply lumber for 650,000 houses, we cannot add much value to such lumber locally. The value is added where the houses are located, mainly in the USA. There are small niche markets for timber framed and log houses, but that does not make a dent in the main market. In addition, we tried competing in the wood window market and the chop stick market. Both failed, I believe. Not to say we can’t try again at the same or similar ventures.

On the pulp front, we should be able to do better than just producing softwood kraft pulps. Again, that is a product which is shipped elsewhere to be remanufactured for an end user. The longer we continue doing that, the longer we will continue to be the “developing” region of BC.

Here is an example of a Japanese firm which has diversified considerably since its inception as a pulp company in 1937. We have the raw materials which are the base of their current product line. It is worthwhile to peruse the site to give the reader an idea of what “value added” means.

Start with the corporate history here http://www.kohjin.co.jp/english/corporate/history.html then continue on to specialty papers, biochemicals, etc. all clickable on the left side of the page. I get a kick out of the English syntax.

So, considering the economics of the situation only, why would one want to develop secondary and tertiary industries in the northern, sparsely populated part of the province, when the market is elsewhere? That is not only the salespitch which has to be developed, but the conditions have to be created which would allow such industries to locate here.

Prince George has a start on that with UNBC as well as the beginnings of a transportation infrastructure required as support: the airport expansion; highway improvement which needs to be sped up considerably to be completed within 10 to 15 years; and port expansion in Prince Rupert. In addition, low housing costs are a drawing card. Amenities in the city are generally good, but need some sensitive growth in the arts as well as aesthetic areas. No one can be proud to live in a city with the kind of downtown we have. I suspect it is more of a drawback than most of us realize.

So, do we need some help? I think so, both from the industries already here to make a commitment to diversify locally rather than just “digging the gold” and sending it elsewhere to be made into “jewelry”, as well as the provincial government to commit to ensuring that the communities in the North share equally in the wealth of the province, no matter how created, so that we will not be the Barkervilles of the future.

BTW …. I tend to side with spanky’s snarky remark on this one. If you want to compete with the lower mainland, you have to understand lower mainlanders. It is all too often that we say they do not understand us. Well, it works in reverse as well.
Owl, good read.

IMO there are a million different ways we can diversify, some of which as you say include adding value to pulp production.

There are also other areas that I think are under utilized in this region. Things like manufacturing of the equipment our current industry uses from rail cars for lumber, chips, logs, paper, and coal, to the forestry truck bodies, to the chip trailers, to the logging equipment in the forest. All of these things should be manufactured locally and would provide a critical base that would create an export capacity in the manufacturing base of the city. With the added manufacturing base you can then bring in the secondary business of specialty suppliers, and raw steel, and aluminum factories that service this higher volume of materials used in the manufacturing process.

The spin offs would be endless.

Oportunities were lost in the sale of BC Rail to help bring this kind of manufacturing to PG. Maybe with the Gateway pipeline coming through a base can be created?

The city IMO should provide incentives geared towards the heavy manufacturing industry as a facilitator of all the other economic oportunities.

Of course right now the priority should be the transportation infrastructure such as the container port in Prince Rupert.

Time Will Tell
Great article Peter! It is so true, Northern British Columbians shouldn't have to beg, scream and kick for
provincial,federal or even local government assisatnce with the pine beetle disaster and at the same time be expected to continue to generate a tremendous amount of wealth for all of BC. Government lobby efforts for beetle aid have been tirerless coming from members of groups like, UBCM, FCM, City Councils, Members of Parliment, Labour Organizations,MLAs Citizen's Coalition, etc., yet all efforts fail to deliver the much needed additional funding to deal with the immediate and long term socio-economic impacts of the beetle crisis or produce a long term post beetle plan for communities hardest hit. WHY? IMO it is the neo-liberal elected officials in positions of power who continue to make decisions which place profit above all else regardless of any negative social repercussions which may follow, and as long as they are elected as a majority, in any level of government, I'm afraid we will continue to see exploitation and extraction of our resources in the north with very little infusion of sustainable economic activity going back into our resource-dependent central interior. We continue to hear from northern BC's elected liberals who boost about a 'booming economy' in their heartlands while they steal our forests to satisfy their greedy self-serving idealogy and sell out British Columbian's forest communities. Pine trees are the species most commonly logged in the interior, PG, Quesnel and the Lakes "timber supply areas" - almost two thirds of all the trees that can be logged are pine. Their merchantability as sawlogs and recoverable lumber will decline rapidly in the next few years and I predict we will see a fast tracting of mineral and oil mining efforts, and an opening of several such resource extracting veins from which the liberals can continue to suck northerners dry, and I have no doubt they will do this as fast as they possibly can and before any such artery losses its' optimum commercial value. They will need to do this, in part, also to sustain their psuedo-boom, good for the economy in the north mentality and before the coming of the next provincial election. I understand the Chinese want our steal and coal to help them build cars, why not carry on with our legacy in the north, where we help everyone else out a great deal and
get very little in return. I hope, at the very least, electorates in northern BC vote for City Councillors this fall who have the courage to stand up for people in the north, lobby to protect what we have, and demonstrate the type of leadership which is required to sustain what is rightfully ours.




We urgently need a long term post beetle economic plan for the northern region and IMO it is the top government officials are spinning of political "rheteric" fromis what is crippling any effort from the
Please delete last paragraph in above article...was part of work in progress
Spanky you got it right. The idea to form a seperate province sounds like some of the tenagers of today. The first time they get into a tiff with their parents they want to leave home.
The last election results leave us with little choise as to what will take place in our region. It is common knowledge that the liberals are gung ho on the up coming 2010 Olimpics. As Peter said it will just feed the lower mainland.
What we really need to do is look at some of the profit that corporations like Canfor reap frm our area. Switzerland has one of the top economies in the world and it does not allow profits by corporations to leave the country. They have to reinvest their money within their country.
After all share profit does not produce very many jobs.
Hey, Chatters, I Call it like I "SEE" it bra!


later
Opatcho that is the most defeatest and appologist attitude I have ever heard. Go to your room little boy.

In the case of Atlantic Canada you can see an example of industry that always looks west with its profits for investment, and you can see the results in that region. IE Albititi is the latest result of this unsaid policy.

In our case investment comes from the oportunity for returns. I don't believe governments should be in the business of legislating the investment of profits, and to go down that road would lead us to financial ruin.

Investment incentives are the way to go. I believe BC should have a retirement plan something like a cross between Quebecs and that of Chile. A tool that encourages BC investment in mutual funds that only invest in BC companies and BC investments, and provides tax incentives to investors in these funds, such as 100% income tax deductions on regional investments. It would benefit everyone across the country with the example we could set here in our region.

As for the Liberals and their policy you have to look no further than David Emerson for the liberal policy both provincially and nationally.

IE the CANFOR government subsidized warehouse in the Lower Mainland. Emerson sees the use of cheep labour in the Lower Mainland trucking industry and subsidized highways and warehouses as a source of profits. The break in the BCR line for the Olympics allows him the oportunity to ship everything by trucks that can't afford to be on the road safely. IE the origans of the container truckers dispute. Truckers are viewed by the liberal government as cheep labour for liberal policies, and this is not good for our economy nor is safe for others on the hiway. The liberal policy is to dismantle and or abuse our essential 'public' infrastructure so that corporations can profit at the expense of slave labour and future generations, as well as regions like BC's North.

The liberal vision is Emersons vision, which is corporate profits through favoratism and subsidization from the public with no regard to future considerations.

You heard it here....
Spanky, like I said your going blind. You better get a 'handle' on that situation of yours.
Hey Chader-Chader you tell some great stories your posts are long and boring and I know where your coming from. You should have your own website.
And I'm not a little boy. I happen to believe in the Canadian Federation but the way we are going the Americans will eat us . Thats oK for those with a narrow vision I see it much differently.
The subject happens to be on pine beetles and not a politcal rally.
Opatcho, thats funny because both of your posts were political and had nothing to do with the pine beetle. I know you do not like my views, and I'm fine with that.

IMO sovereignty is independence, and if you feel your independence is represented, then that's fine, but others may have a different view.

As for joining America, that would be the very last of a long list of options and well behind a united Canada.

Quote of the day:
"It is one thing to put a man in possession of the truth, to get him to understand it is another, and to get him to act upon it is another still. Truth by itself has no value unless used or applied in some way."
I read it somewhere....