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OBAC and the strange case of the missing word

By Peter Ewart

Wednesday, June 27, 2007 03:45 AM

        
Part 2 – By Peter Ewart

As noted in the first article in this series, “OBAC and the strange case of the missing word – Part 1”, the Omineca Beetle Action Coalition has so far received $1.7 million from the provincial government.  With these funds, it is supposed to be acting as the “voice” of the communities in this region regarding economic diversification in the wake of the pine beetle.  Yet it has appears to have edited out any mention of the terms “value-added” or “secondary” wood in its policy documents and newsletters on its website.  Furthermore, it has compiled a list of 11 priorities, none of which mentions anything about “value-added” wood.

This omission becomes even more glaring if we compare OBAC’s public documents to that of the Cariboo Chilcotin Beetle Action Coalition (CCBAC), which is OBAC’s counterpart south of here in the Quesnel, Williams Lake and 100 Mile House region. 

Unlike OBAC, CCBAC makes value-added wood production a top priority for economic development in that region.  Indeed, it has several documents on its website that specifically focus on the value-added topic, including a 175 page report entitled “Cariboo-Chilcotin Region: Secondary Woods Product Strategy – Summary Paper.”

In another document entitled, “Secondary Wood Products Manufacturing Strategy Outline,” CCBAC points out that the value-added sector “creates significantly more jobs” per cubic metre of wood than the primary industry.  The document goes on to say “that ‘value-added’ or ‘secondary’ wood products manufacturing is consistently identified as a local, provincial and national priority for economic diversification.”  In contrast, as noted in Part 1, OBAC does not see “value-added” as a priority at all.  Tourism, yes.  Agriculture, yes.  Mineral exploration, yes.  Value-added, no.

In its strategy, CCBAC provides analysis about the obstacles and opportunities for value-added wood production in its region.  It acknowledges that the value-added sector is much smaller than the primary industry and it points out that “the sector has not grown as quickly in British Columbia as in many other jurisdictions” and is currently concentrated in the Lower Mainland of the province.  Nonetheless, the CCBAC strategy displays a “can do” attitude towards overcoming any obstacles and lays out clear and ambitious goals for the development of the value-added sector in the region.  Specifically, it puts forward the “overall measurable goal” of doubling “the size of the current secondary [value-added] wood products sector in the region” and increasing the number of jobs in the sector by 25% over the next 10 years (by 2017).

The difference in aims between OBAC and CCBAC could not be more striking.  Indeed, it is hard to believe that the two organizations operate in the same general area of the province, i.e., the Central Interior. 

It is as if there was some kind of invisible line or barrier laid down somewhere between Prince George and Quesnel.  South of this line, value-added wood production is a top priority for communities meeting the challenge of the pine beetle.  North of this line, value-added isn’t even on the radar. 

One can only imagine the impression the CEO of a value-added company interested in setting up operations in the Central Interior would get when looking at the two websites.  There is no doubt that he or she would get a very favourable impression about the CCBAC website and by extension the entire Quesnel, Williams Lake, 100 Mile House region.  Here is a region that enthusiastically invites the value-added industry to come aboard, has a detailed plan that puts value-added wood production as a top priority, and so on.

And then there is the OBAC website that has “destination tourism” and “mining” as its priorities and disdains to even mention the word “value-added.”   Is there any doubt which region this new value-added company would gravitate to?

OBAC’s ignoring of the value-added sector appears to contradict the views of a leading provincial business organization, the BC Competition Council, which issued a report in 2006 that states “there could be much greater opportunities” in developing value-added manufacturing and diversifying “product market mix”, and that “increased levels of secondary processing within BC are possible and desirable as the industry moves forward.”  It further add that, for the BC Interior industry, “the healthy continuation of … value-added plants is vital”  (BC Competition Council – Draft Report - March 31, 2006 – p. 59)

Unfortunately, OBAC does not appear to be alone in its views in this region.  Take, for example, the attitude of a senior economic development officer in this region.  When invited to speak at a conference last Fall on diversification in the wood industry, he declined to participate on the grounds that he was only prepared to speak of the diversification of the local economy “as a whole” rather than diversification in the wood industry.  Presumably, that meant he was willing to talk about call centers, tourism, mining, etc., but not value-added wood. 

There is no other way to put it.  At a critical time in the history of our region, we have a failure of vision and a failure of leadership in the area of wood diversification.  OBAC provides no explanation as to why it completely ignores the development of the value-added industry in its priorities, plans and newsletters. 

There is no doubt that municipal leaders across the region are serious about meeting the challenges of the pine beetle and diversifying our economy.  However, those municipal and community leaders involved with OBAC, some of whom are quite new to the organization, should demand some answers.  And so should our local MLAs.  The people of Northern BC deserve better than this.

In Part 3 of this series, we will discuss the claim that there may be powerful interests who just don’t want value-added wood production in this region, and that OBAC’s views may be simply reflecting this same mindset. 

Friday June 29th  Part 3 of  “OBAC and the strange case of the missing word"


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Comments

"It is as if there was some kind of invisible line or barrier laid down somewhere between Prince George and Quesnel. South of this line, value-added wood production is a top priority for communities meeting the challenge of the pine beetle. North of this line, value-added isn’t even on the radar."

I would assume that we have an open enough society that anyone who is in a position to actually do something has access to this type of documentation and can pick up the ideas.

It is not as if anyone has enough money to give a business a few million bucks to invest in a value added firm.

What I would like to know is how many additional jobs the 25% increase in secondary manufacturing will add .... 10?

I guees I will skim over the paper.

To me, these organizations are a waste of money. More importantly, they are a waste of valuable time since some actually think something will come of it. It is time we should be using much more effectively.

This is certainly a situation where time is of the essence.
So the question I have and several people I have spoken to have is when will "Stand up for the North" continue its work?
In case anyone is interested,I understand the meeting OBAC meeting has been moved to Fort St.James tonight due to the flooding.
:-)
All these Government Organizations, Beetle Action Committee's, Municipal Leaders etc; run around like a bunch of chickens. When the farmer comes into the yard with a bucket full of feed they run around like crazy pecking at the ground and fighting for some of the seed. Once the seed is gone and the farmers is gone, then they go back to clucking and walking in circles.

They may talk more about value added in the South than they do in the North but each section has one thing in common. Neither one of them has any new value added industry on the drawing board at this time.

I can just visualize all the CEO'S around the country looking on the internet at various locations in the Central Interior where they could locate a value added plant. What a laugh. In the first place most CEO'S have trouble getting onto the computer let alone find anything. Secondly they have been in the forest industry business in British Columbia for over 100 years and have a pretty good idea whether of not value added in a good business venture. Dont hold your breath on this one.
So, does anyone know whether IPG, OBAC, NDI, or anyone else who is in the game of promoting this region for secondary wood manufacturing plants has done studies similar to the one for NORTHWEST PENNSYLVANIA AS A LOCATION FOR THE WOOD PRODUCTS INDUSTRY

http://www.eriepa.com/assets/pdfs/wood.pdf

Note that Maple Ridge is in the mix of locations studied. Two things of interest. One is that the taxes are actually the lowest in Maple Ridge over those in the USA. Doesn’t that just blow some people’s minds?

Second is how much of a difference there is in property value and how much that actually skews the competitiveness.

So, assuming that the study is a reasonable reflection of actual costs, It would seem that putting PG into the mix would likely show up PG as highly competitive to those centres.

The one factor I cannot see there is transportation costs. All I can figure is that when talking furniture, with the market being North American at the least, and world at the most, transportation costs play a relatively small role.

So, if we do not have such an analysis ready to promote to manufacturers, when will we? Who will do them?
I just read some thoughts aby the marketing manager for the firm which wrote the above linked study.

McCracken is a storyteller who likes to quote people and illustrate a point, then zing the point home.

“When Wayne Gretsky was asked why he was such a great hockey player, he said, ‘I skate to where the puck is going to be.’ If we’re going to skate to where the money is going to be, we’ll have more work than we can handle,” says McCracken.

Market demand, he says, is not a good indicator of future business. “My job is to look outside our company and even our industry to find out where that money is going to be and when it’s going to be there, to look ahead five or 10 years and see the places where money and demand intersect.”
So, who are the analysts in our community and who are the ones who are visionaries and can take the analysis and weave them into businesses which can operate competitively from PG?

I do not think either of those is the prerequisite to be an elected official in government at any level - local, provincial or federal.
Wayne Gretsky was a great hockey player for a number of reasons not the least of which is that the other players on the team were always passing him the puck, which of course gave him more opportunitys to score. Had they not passed him the puck he would have scored less.

If you want to skate to where the money is then hopefully you can speak chinese, or you like the middle east (Dubia) etc;

The people in Prince George who have the money and could come up with a business plan to develop a value added industry in this area are holding onto their money.

If someone would set up a group of investors to get something started and then get the local community to invest their money into it, we might get something off the ground. What are the chances of that happening. We would sooner sit on our butts and wait for someone else to take the risk.

There are millions and millions of dollars in private money in this town, however you wouldnt know it by what you see.