Sponsors: District of Kitimat
NCLGA Executive Recommendation: Endorse
WHEREAS adding value to natural resources is of great economic benefit to the North, the Province, and the Nation, because it attracts investment, delivers tax revenue, creates employment, and captures previously foregone economic value;
AND WHEREAS adding value to natural resources often reduces environmental risks associated with transporting products, minimizes waste by utilizing a great percentage of products, and ensures processing occurs under world class Canadian standards:
THEREFORE BE IT RESOLVED that the NCLGA and UBCM lobby the Provincial Government to adopt policies and implement regulations that will facilitate and stimulate value-added resource development.
Value-added resource development is critical to the vitality and prosperity of our nation. Value- added resource development boosts local, regional, and national economies, and at the same time reduces risks to our natural environments. This is generally true for all natural resource industries such as oil and gas, forestry, mining, fisheries, and agriculture.
Adding value to natural resources attracts investment, delivers additional tax revenue, captures a greater percentage of the inherent economic value of each product, and preserves and creates both direct and indirect employment.
Adding value to natural resources often reduces environmental risks associated with transporting products, minimizes waste by utilizing a greater percentage of products, and ensures processing occurs under Canada’s world class environmental regulations.
It is with these sentiments that the District of Kitimat encourages all levels of government - federal, provincial, First Nations, regional, and local - to start a serious conversation about value-added resource opportunities for the benefit of their jurisdictions and constituents. Governments must collaborate to adopt policies and implement regulations that will facilitate and stimulate value- added resource development.
The District of Kitimat encourages all of Canada to work together to protect our environment and strengthen our economy.
The UBCM membership endorsed resolutions 2016-B42 and 2015-LR2, which raised similar questions about distribution of existing timber supply, provision of the "Right Log To The Right Mill," and called on the provincial government to “re-examine the appurtenance requirement in the Forest Act to help create local or regional economic benefits from the timber that is being logged in an area.”
In response to the resolutions, the provincial government has indicated that it is “exploring options to ensure smaller mills have access to needed timber types that meet their needs of quality;” however, the Province stated that it had no plans to restore appurtenance requirements.
By way of background, the UBCM membership endorsed a Forest Policy Paper in 2002.
The Forest Policy Paper in part expressed UBCM members’ concerns about the removal of the appurtenancy clause from the provincial government’s forest policy, fearing that it would result in “a further loss of control over where the wood is processed and in some cases, massive job loss.” The paper further asserted that “if the break is made between harvesting and processing there has to be something provided to affected communities in exchange,” with affected communities consulted about the form and amount of compensation.
The paper proposed examples of ways to compensate affected communities, such as:
· requiring the license holder to forfeit a substantial percentage of the AAC to be turned into a community-based tenure;
· reimbursing the community for loss of economic benefits if the timber is taken out of the area and hauled to another community for processing. For example, a portion of the stumpage could be returned to the community affected, as one form of compensation; or
· requiring that timber go to the most appropriate BC mill and further that the timber must be processed in BC.