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OBAC and the strange case of the missing word

By Peter Ewart

Monday, June 25, 2007 03:58 AM

     Part 1 - By Peter Ewart

It is often said that Alberta has its oil, while BC has its wood.  BC produces a huge amount of primary wood products such as lumber and pulp & paper.  To a much lesser extent, it also produces “value-added” wood products.  But many have long felt that, as the primary sector reaches its limits, the future of the industry lies in how much it opens up the “value-added” sector, which has the capability of manufacturing a vast array of solid and engineered wood products.  Wood is such a unique and versatile substance, the argument goes, that the only limits to its uses are those of our own vision and imagination.

That being said, you would think that the development of “value-added” wood production would be at the top of the list of any economic development priorities for our region, especially as formulated by the provincial government-funded Omineca Beetle Action Coalition (OBAC).  After all, we are facing the unpleasant fact that, in this region, most of our pine forests will be destroyed by the pine beetle over the next few years and getting more value out of the remaining trees is a matter of community survival.

Given the above, you would also think that the term “value-added wood,” would come up again and again in OBAC newsletters and publications, given its importance for our future.

But you would be wrong on both counts.  You can scan the 11 “priority topics” in OBAC’s “Business Plan and Workplan” posted on its website, but you will not find a mention of the word “value-added wood” anywhere.  In fact, you can scan all of the 7 online newsletters OBAC has published so far and come up empty. 

This is very strange indeed.  Words are powerful things.  They can say as much when they are excluded from a document as when they are included. 

In the Prince George region, we are surrounded by wood.  Our region is considered to be one of the great wood manufacturing centers in the country and in the world.  In fact, we have several generations here who have spent their lives working in the forest or the primary wood industry.  There is no doubt about it - we excel in the logging and manufacture of wood.  When anyone talks about “economic diversification”, it is a no-brainer that diversification of the wood industry should have top priority. 

But this appears not to be the case for OBAC.  Besides “alternative energy” (i.e., biofuels) and the vague statement “regional community-based interests in future forests and fibre use,” OBAC sees “destination tourism,” “mineral exploration,” “agriculture” and other non-wood topics as being its “priorities”. 

How did it arrive at this list of “priority topics”?  One important vehicle, according to the OBAC website, was the “Community Dialogue Sessions” it organized in the Spring of 2006 in towns across the region.  In the section on its website entitled “Year in review 2005-2006 - Identifying the priorities and preparing to address them,” OBAC writes that the input it received during these sessions has “shaped the Coalition’s business planning, informed priority setting and will guide the diversification planning and action that the Coalition will undertake.” 

But this is where things get strange.  If you click on the section of the website “Links and resources”, and further click on the “Community Dialogue Sessions”, you can read the notes from these sessions.  The session in Prince George attracted only 6 people from the general public (Prince George has a population of almost 80,000 people).   The one in Fort St. James attracted an equally small number.  But, nonetheless, the notes (which are quite scanty and disjointed) are there to read. 

Leaving aside the legitimate question as to whether such poorly attended and organized sessions should be the basis for setting the economic development priorities of an entire region, it is illuminating to examine the notes from the Prince George “Community Dialogue session.”  In that public session, not surprisingly, a “value-added wood incubator” is brought up as a suggestion by one of the handful of people in attendance.  Another audience member adds that “we have a huge supply of fiber coming on stream; the attention being given to this situation doesn’t meet the seriousness of the situation.  New markets and fiber utilization.”  Another person asks: “Why are we not able to make a real go of “value-added wood products?  What are the barriers?”  Still another says, “Industry refuses to look at opportunities that are diversified, beyond dimension.” 

Interestingly enough, on the same OBAC web page, there is a link to some more extensive notes that were taken by OBAC at the “Stand Up for the North Conference” in November of 2006.  According to OBAC’s own statement, these notes provided additional input on its “needs and priorities.” 

Unlike OBAC’s “community dialogue sessions”, the Stand Up for the North conference was well-attended with over 175 people coming together from across the region.  OBAC did not participate or assist in the organizing the conference whatsoever, but, for reasons of its own, decided to send a “note-taker” and publish the results in a document on its website.  The resulting notes don’t even come close to capturing the importance that a variety of speakers at the conference put on developing value-added wood production in the region.  But, nonetheless, when you scan them, it is clear that value-added wood was an important priority for those in attendance.  

Going over these documents, it is hard not to get the impression that OBAC is cherry-picking its priorities for economic development in this region. 

And it gets worse.  On its website (on the drop down menu under “First Nations”), OBAC talks about a report put out by the Northwest Tribal Treaty Nations (NTTN) entitled “Working Together to Create Sustainable Wealth.”  OBAC claims that “a number of the concerns, challenges and opportunities” put forward in NTTN’s report are “the same as those described in [OBAC’s] Beetle Action Proposal and Business Plan.”  To emphasize this point, OBAC provides a direct link to the report on the left hand side of the web page.

But OBAC either did not read the NTTN report or, as in the community dialogue sessions and the Stand Up for the North conference, ignored the content. 

 How else to explain the following?  The NTTN report clearly states that “adding value to the wood is crucial to creating viable and sustainable wood for First Nations communities.”  To emphasize the point, the report further states that “there is growing awareness by more people in the Northwest and from all levels of government that development of value-added processing and an expansion of the value-chain for primary resources are essential to the economic future of the region.”  It couldn’t be put more plainly than that. 

What is also quite astonishing is that OBAC appears to completely ignore the fact that there is a “value-added” wood industry already in existence in this region, both native and non-native, and there has been for a very long time.  Did OBAC consult with this industry when developing its “priorities”? 

Clearly, something is haywire here.  We are talking about an organization that claims to be the “voice” of “community interests” in the region in “setting priorities” and developing “a regional diversification plan” for the challenging times ahead.  OBAC has received $1.7 million so far from the provincial government. Yet we have a slipshod process, and an entire value-added industry edited out of existence.

Why has this happened?  Over the next several days on Opinion250, we will be discussing this issue further in other articles in this series. 

Wednesday  June 27th :  “Part 2 - OBAC and the strange case of the missing word.”
 
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Comments

"OBAC has received $1.7 million so far from the provincial government. Yet we have a slipshod process, and an entire value-added industry edited out of existence."

Bang on! Not only that, but the government that providedx the money to them is sitting back and watching and doing nothing.

As is the NDI.

Maybe we can look south of the border to see how they do.

Here is a nice overview of the state of the union of the forest industry in Oregon. I have a hard time finding something like that for BC. Perhaps OBAC can start there, understand the industry they are dealing with. I notice this site is through the Sate University.
http://owic.oregonstate.edu/industry.php

Just to make sure that important links from that site are not missed by those who are interested in this. Oregon Forest Cluster Analysis. If someone can find one for BC, please post it.
http://www.oregonforests.org/media/pdf/ForestCluster_FINAL.pdf

Then there is this slightly different approach to biomass – get it from thinning forests to make them more productive. Might be expensive, but the money comes in part from and actual or a perceived production increase.
http://www.oregonforests.org/media/pdf/Biomass_Online.pdf
Owl. If you look South of the border to see how they do it, you may find that they do it by a process called **Free Enterprise**

This is a system where private industry and people invest their own money in various ventures and either make a dollar or go broke.

The Private Enterprise sysem in the USA is somewhat different from the **Sit on your Ass and let the Government do it system** that we have in BC.

All we ever here in this area is what will the Government do about this or that or the other thing, but very little about what any business or individual will do to get something off the ground.

Government money available for looking for Oil in the Nechako Basin. (What a laugh) Whos looking??

Government money $33 Million to be made available for an Airport Runway Expansion so that wide body freighters can land and take off. (Laugh again) Where is the private money to be invested in this venture????

Government money to fly a helicopter between Williams Lake and Mackenzie to see if there are minerals under the ground. Gee great idea, why didnt they think of it years ago.

Who is going to put up the money to build the Value Added Plants in this area. Have you heard of anyone that is interested in making this investment?? We did have some smaller mills that tried it Canadian Woodworks, and the one under the Simon Fraser bridge but they both went broke, even with Government Money. A number of years ago we were going to build plants to produce chipsticks, and in fact we had one operating in Prince George and one North of Prince George. Once the Government money ran out they shut down.

Why is it that all these grandiose plans never come to light until we are in a bad situation. Mckenzie as an example has had years and years to diversify and so has Prince George, however it seems that they do not give any consideration to diversification until they are faced with mill closures. Why wait until then???

I would like to see some money invested in this area that is not Government money (tax dollars) We have the Pulp Mills and Sawmills and Planers, and a few operating mines, but other than that, not much.

We always use the University as an example of how we can diversify the economy, however this is only partially true. The majority of the money to operate the University is tax dollars, and therefore it cannot be construed to be the same as private money.

If 786 people on the payroll at the University is good for the economy, then we should double the staff and faculty to 1572 people and it would be twice as good for the economy. We could keep adding people until we no longer had a problem in Prince George, as the University would keep us all employed.

Oregon has private investors who are willing to go out on a limb to make a dollar. BC has people who complain that the Government is not doing enough. Two different things entirely.
Palopu ..

Look closely at the two links I put up.

The one which has the key document, which describes the forest clusters, is prepared for the Oregon Forest Resources Institute. It is located on their site, so if you cut the rest of the url off for the report you are left with http://www.oregonforests.org This is the “home” page and right at the top of the page it says these words:

“The Oregon Legislature created the Oregon Forest Resources Institute (OFRI) in 1991 to improve public understanding of the state’s forest resources and to encourage environmentally sound forest management through training and other educational programs for forest landowners. OFRI is funded by a dedicated harvest tax on forest products producers.”

Note how it is funded … a user fee on forest products producers. Actually we used to have the BC Forestry Association which used to do the K-12 educational part as well as running 4 or so children’s camps in BC. The local one was Camp McInnes.

The other one, the Oregon Wood Innovation Center, is housed at the Oregon State University.

Both are funded through government taxation in one form or another.

Then we have the private one, the Oregon Forest Industry Council http://www.ofic.com which operates in a similar way to COFI.

And they have economic development offices the same as here.

And the USDA funds development projects as does the CFS in Canada. Here is an example sheet of projects in the USA looking at value added with the dollars they are getting for the projects.
http://www.fs.fed.us/spf/coop/library/eap_valueaddedreports.pdf

Be careful being too much of a free enterpriser because you will be left far behind when dealing with the Free Enterprisers south of the border. We will then have unfair advantage from the south.

Look at some of the crazy projects:
• Darby, MT - $30,000 - Engineering plans for roundwood trusses for the library
• Glencoe, NM - $7,500 - Technical Assistance for producing high-value animal bedding from small-diameter trees

Then there are more realistic ones:
• Redmont, OR - $47,995 - Economic Feasibility Study for Small Log Processing Facilities in Central Oregon for value-added products
• Stevens Point - $50,000 - Sawmill Yield Projections and Financial Feasibility Analyses Using Spreadsheets (About 20+ years after the creation of computerized spreadsheets these guys are still learning how to apply their financial analysis processes on spreadsheets – unbelievable!!!)

So, things are different south of the border, eh?

ROTFLMNAO

;-)
Hey, Palopu ..... how do you think Mr. left winged Republican, that great free enterpriser, the Governator Schwartzenegger, is going to fund his Hydrogen Highway? Gonna sit back and watch it happen without a bit of money to grease the wheels? Give me a break!!
I just noticed this one:

Mora, NM - $220,000 - Establish community based and micro-business center, provide training and support for operation and administrative services for non-traditional wood products

Maybe we should do that here...... of course it is difficult to get money from the Conservatives .... they are too conservative ...

;-)
Why has this happened?

IMO because we have a corporate government providing outsourced services diminishing government and enabling politically connected operations.

Gordon Campbell is a proliferator of this movement.

The genus of the idea is to severe government accountability for the services government pays for with taxpayer dollars. In the process outsource essential infrastructure, personal information, and strategic planning (even drafting of government legislation) to third party entities with tight political connections of like minded people who work for profit or personal agenda's first, and the good of the citizens second. Smoke and mirrors and we never see the half of it unless we get the odd RCMP raid of the legislature.

The usual organization is set up as a non profit entity with a do good charter that no one can argue with. The government transfers tax dollars to carry out the stated mandate of the organization. The organization management structure is set up so that the established (politically connected) 'stakeholders' take up positions on the board of directors determining the governance and allocation of those tax dollars.

The BOD insulates the politicians and public employees from the efficiency and accountability of the non-governmental organizations actions in allocating tax dollars.

The BOD 'stakeholders' all have their own political agenda that will involve maximizing their return on the tax dollars to be allocated; either in political or economic returns, to the ‘stakeholders’, and the ‘stakeholders organization’, or the corporate masters that the ‘stakeholders’ work for in their day jobs.

Returns can range from political, to an advertising subsidy, a research grant, a risk sharing loan, a friend-relation getting a job, inside information, or an appointment of a friendly decision maker to procurement or policing or regulatory positions. Profiting and in some cases committing treason as a government intermediary through privatization.

The key is a separation of government accountability to non-government entities where more and more corporations and organized political operations are seizing day-to-day government operations for their own profit. No freedom of information, rights to see or govern the entities compensation packages, and no traditional checks and balances of government sanctioned operations. Fat cat political operatives living large on tax payer cream.

Corporations (multi-national and domestic) as well as NGO’s are taking over our government from within to rapidly move from controlling things like strategy and advertisement, to roads and bridges, railroads and airports, even watersheds, floodplains, and the glass of water that comes out of your tap, or the cost of power to keep your lights on. They tell you everything from what is acceptable to think, to how your tax dollars should be spent. Not all NGO’s and government privatization plans reach the ugly extreme, but none are designed to match the accountability of a democratic forum where all the needs and aspirations of all people are addressed in a way that priorities public interest as a whole with accountability to democratic strategy on the investment options.

IMO the government ministries should have a task force operation pine beetle, operation wood fibre diversification, operation value added, operation eco-tourism promotion, operation farms of the future, ect, ect, ect… And each of these task force operations functioning within government should be enablers of public forums that gather the democratic consensus on how to address specific problems or issues. The politician should be judged at election time for their ability to manage these open and transparent task forces of impartial professionals, and should not be able to hide behind the firewall of accountability they have set up for their anti-democratic political-campaign enabling cancer on our society as a whole and civilization in general.

lol
Cheers
Palopu I think you would agree that all the government money you are talking about is actaully NGO governed expenditures. We have an enept government because that is what they outsourced and paid for so that they do not have to deal with the issue from an accountability standpoint. Do you disagree?
Palopu, governemnt is not open and democratic enough would be the important difference between BC and Oregon IMO.
I forgot to add that NDI is simply an enabler of the outsourced government as a NGO source for the other NGO's of government tax dollars.
.
Peter Ewert,

Thanks for tackling this huge, unhappy issue of proper utilization of B.C. forests.

If I remember correctly, Prince George was the birthplace of a labour-intensive, modern industry which utilized whole logs for making beautiful products which became a multi-million-dollar export.

It was called log building construction, done entirely (and to very high standards) by people using hand-held tools.

It spread from Prince George all across Canada, then North America, then New Zealand, Japan, and beyond.

Today there's an International Log Builders' Association headquartered in Lumby, B.C., with a thriving membership covering 20 countries. It was launched in Prince George, however, originally as the Canadian Log Builders' Association.

That was 30 years ago. And until recent times, "Mission Control" was in Prince George. What happened?

So thanks for caring enough to look into the "value-added" aspect of the forest industry, Peter. It's vital to a healthy economy supported by a sustainable forest.

.

All the more reason to split the province. How do we do this? People no point in complaining unless unless action is taken.
B. Allan Mackie .... the little cabin that used to sit on the CNC campus which was the building his first students built ...

http://www.ballanmackie.com

Log building has been around for a few thousand years. The round log construction which we export to other parts of trhe province, Canada, and the world is just a variation of the art.

There are some being built here. It is a highly specialized and high end product. We can increase the number of units built here, but it will not likely be a major employer.
I am unsure of what splitting the province will do, other than make us live on the southern border, which means we will become the target for barbs from the north and people will want to split the northern half in half.
Owl the idea is to form a new province of Northern BC. We have the resources so it could be done.
I'm with you Seamutt on the Northern BC idea. Its long overdue IMO. It needs to be done soon as we are sinking further and further into irrelevance politically as the Vancouver-Victoria majority explodes to the point our old political arrangements no longer work

On the topic of round log home building. Its a great concept if you can get access to the timber. I looked into it and was very interested, but the resource base is set up for the large corporations and not the small enterprise. The corporations have fixed it so that this will not change as long as their influence on our government continues. Maybe when the hedge funds run into trouble we will have breathing room for change, but most likely they will put the further squeeze on us and we can officially reconize our corporate slavery for what it is.

Time Will Tell
Firstly if you look at the population of Northern BC. That is from say 100 Mile house to Ft St John, to Prince Rupert, and Kitimat and all places in between. Guess What. You have a population of 303,000 people. I suspect that at least 1/3 of these people are not working so you will have a very small tax base. I think that the idea of a Northern Province is a non starter.

What we need is for our elected represenatives to get more involved the the Government. When Ray Williston was in the Socred Government, they were able to get the Pulp Mills located in Prince George. They brought the BC rail (PGE) from Quesnel to Prince George and North to Fort Nelson, they built the Highway through to Mcbride, and also built the WAC Bennet Dam and the Revelstoke Dams. Widened the highway through the mountains to Vancouver. Later the socreds built the Coquahalla Highway. This was a Government that knew how to get things done, and had a balanced budget. WAC Bennet was the Premier and the Finiance Minister for all the years that he was in power. If you couldnt balance your budget you didnt last very long.

What did the people of the Province do for this **Get things done Government** We voted them out and replaced them with the NDP, and then the coalition of Liberals, and thats why we have all these problems to-day.

Chandermando has it right when it comes to Governmens abdicating their responsibilitys. The problem is that most people in this Province do not even know what is happening, so how can they expect to do anything about it. I gave this example of the Governments smoke and mirrors before and will give it again.

BC Government sells BC Rail for $ 1 Billion.

BC Government sets up Northern Trust Initiative to administer $ 400 Million dollars from the BC Rail sale money to help regions being effected by the Beetle etc;

Federal Government abdicates it responsibility to run Canada's Airports and sets up Airport Authoritys to run them. Airport Authoritys Lease the Airport and all facilities from the Federal Government for 60 years. Prince George Airport Authority is set up, with a board of directers etc; who in turn hire Managers to run the Airport. Federal Government allows Airport Authoritys the right to tax air travellers and use the money for Airport Improvements.

Airport Authority borrows $11 Million from Northern Trust to go toward the extension of the Airport Runway. In addition the Airport Authority wants an $11 Million grant from the Provincial Government and $ 11 Million from the Federal Government to go toward the cost of the Runway Expansion.

So what in effect do we have here. Can anyone grasp the stupidity of this fiasco.

What we have is the Provincial Government (through NTI) loaning money to a Federal Agency (The Airport Authority) and in addition the Provincial Government giving $11 Million to a Federal Agency, to make improvements to a Federally owned Airport. In addition the Federal Government itself is going to give the Airport Authority $11 Million to fund the runway that it already owns.

Since when does a Provincial Government give money to a Federal Government for any reason. NEVER. This is a pure case of **kiting** money and if you were to try it in the business world you would probably end up in jail.

The saddest part of this whole fiasco is that the majority of people in BC dont even know that it is happening, and most of those that do, think its a good idea.

If these are the type of people you are going to use to run your new Province then you are already in trouble.
"Owl the idea is to form a new province of Northern BC."

Yes.... of course ....

"We have the resources so it could be done."

Lots of things can be done. The question is, why would you want to do it?

I could say Japan has the resources ..... the resources are the people of the country ... the rest of the stuff they can import from the rest of the world. Other than oil, do you know of any single nation that is wealthy because of its fishing, mining, agriculture, forest resources? The thing which is true about most of the rich nations (per capita income) is that they are people rich and natural resource poor.

The northwest territories has resources ... Newfoundland has resources .... but they are lacking some key resources .... otherwise they would be much better off than they are.

What exactly would you like to do as the Province of Caledonia? Sell wood to the Province of British Columbia which is the southern remnant of the existing province? Or to the USA? All of the sudden BC, without the North, has a much more productive forest to tend - faster growing cycle, less roads to build, population base close to the forests, better climate, more options of what can be done with the landbase other than just forestry which can be more economically productive.

Be careful what you wish for.
Here is a map of three econimic regions of BC. It would be quite possible to create three new provinces out of BC by using these economic regions as the new provinces.

BC North
BC South
BC Coast

Which of the three would have the greatest per capita income? Why?

http://srv200.services.gc.ca/iiws/EIRegions/bc.aspx
'Province of Caledonia' - I like it, sounds good.

I pick BC North, because per capita income would likely be higher in the resource extraction industries.

With the port of Prince Rupert coming on line it makes sense that Northern BC develop its own economic policy based on its new trading realities. Without subsidizing the South with our tax dollars we could invest in infrastructure and still run a nice surplus. Probably eliminate income tax at the provincial level reversing the capital drain out of the region. With a province of Northern BC we would have our government jobs relocated to Northern BC from the south helping to diversify the economy built around trade, the resource value added sector, and the service sector.