Volume 7, Issue 1 January 2009

For a printer friendly version: Click Here (Adobe Acrobat Version)
President's Memo
Lumber Prices
Provincial Government Holding Economic Summits
Omineca Beetle Action Coalition Strategies
Premier Announces Forestry Initiatives
West Fraser’s Ketcham Family to be Honoured
Spotlight on Wood at 2009 Gala
College of New Caledonia’s New Diploma will Fill Shortage of Natural Resources Professionals
22nd Annual PricewaterhouseCoopers Global Forest and Paper Industry Conference
Softwood Lumber Agreement 2006

President’s Memo

When I think about what my theme might be for this corner of our newsletter any number of issues are usually at hand. This month is no different but there is one major exception— we are entering into a critical phase for the North American and global economies.

In this regard the federal government has been consulting actively in preparation for the January 27th budget. Ministers and the Prime Minister have all been to British Columbia in the last few weeks in a unprecedented effort to listen and gather budget recommendations from various interest groups. Chief among the initiatives that I have heard are ensuring availability of credit and various forms of assistance for workers particularly in the forest industry.

But we cannot ignore the fact that Canada, and particularly our Province, relies heavily on international trade. This means we urgently require recovery in United States and Asian markets for our economy to flourish. Just as Canada was somewhat sideswiped by recent world economic and financial events, so too will Canada gain from world recovery.

So what can governments do here at home? It’s really quite simple: put in place the most competitive policy, tax, legislative and regulatory structure so that when recovery occurs Canada will have a top quality ultra competitive economy. We need to start now!

John Allan


Provincial Government Holding Economic Summits

The government is holding two economic summits this winter. Opportunities North: The Northern Economic Summit (Jan 22-23, 2009) and the British Columbia Economic Summit (Feb 3-4, 2009) are unique forums that will bring business, government and community leaders together to highlight the choices, challenges and potential of our economy.

Prominent speakers will join Premier Gordon Campbell and British Columbia’s cabinet ministers at each two-day summit, providing a thoughtful interactive forum aimed at shaping the economic future of our province.

Opportunities North: The Northern Economic Summit in Prince George is sold out. The British Columbia Economic Summit, February 3 - 4, 2009 at Sheraton Wall Centre Vancouver features prominent speakers and B.C. cabinet ministers, and will explore the options and opportunities related to a wide range of issues, including the state of the global economy, job-creating green technologies, transportation and the Pacific Gateway, productivity and labour mobility, international trade and competition, and the case for economic diversification around the province.

For more information and registration go to: www.thebceconomicsummit.ca


Omineca Beetle Action Coalition Strategies

The Omineca Beetle Action Coalition (a group of local government leaders) released two strategies on November 28th that will be of interest to the forest sector. One strategy is for transportation improvements and the other for setting the direction of the future forest sector.

The strategies contain actions and recommendations that will “promote needed change in the management of the region’s forests, and the beneficial use of forest resources … [and] contribute directly to OBAC’s overarching goal of community diversity”.

The Omineca Beetle Action Coalition was established in 2005 with an initial funding trust of $800,000 from the provincial government. Their region covers the area between Mackenzie to Smithers.

For more information contact Steve Kozuki by phone at: (250) 564-5136 or by e-mail at: kozuki@cofi.org or visit www.ominecacoalition.ca.


Premier Announces Forestry Initiatives

At the 66th Annual Truck Loggers Association Convention, the BC Premier Gordon Campbell, announced initiatives for the forest industry.

Stumpage pricing change: A comprehensive update of stumpage rates on the Coast to reflect current market realities. Effective Jan. 15, the average sawlog stumpage price on the Coast will be less than $5 per cubic metre – compared to a rate of $18.56 per cubic metre one year ago – a reduction of more than 70 per cent.

Extending Employment Insurance and Work-Sharing Program: The Province will continue encouraging the federal government to extend the Work-Sharing Program and extend Employment Insurance benefits for impacted forest workers for another year.

Tax exemptions for trust funds: The Province will ask the federal government for tax exemptions for support received through the Community Development Trust and BC Forestry Revitalization Trust.

A Wood-First Policy: The Province will expand domestic markets for wood by requiring all new public facilities to include B.C. wood in their construction whenever possible.

Expand six-storey wood-frame construction: To expand domestic markets for wood, B.C.’s new building code will raise the limit on wood-frame construction from four to six storeys, starting April 6, 2009.

Expand B.C. Wood-First Policy to a national strategy: Starting with Alberta and Saskatchewan, the Province will work to extend the six-storey wood-frame building code across the country, greatly expanding the domestic market for lumber. The Province will also urge other provincial governments and the federal government to implement B.C.’s Wood-First Policy.

A Commercial Forest Reserve: The Province will look at ways to establish selected areas of the land base where forestry has the priority both for harvesting and for growing new trees to secure forest jobs and investment. This will ensure harvested land remains protected as a forest asset and will not be set aside for other uses.

Woodworkers’ Lien Act: The Province will introduce legislation to strengthen the Woodworkers’ Lien Act to give contractors the right to freeze logs harvested in the event they are not paid for services by a licensee.

Increase access to fibre supply: Develop new tools to increase access of fibre supply by connecting tenure holders, including small tenure holders such as communities and First Nations, with customers. The TLA will play a lead role in developing and operating new marketing tools.

Bioenergy tenure and pricing: The Province will look at ways to create new tenure and pricing specifically for bioenergy, increasing investment certainty and ensuring 100 per cent of a harvested tree can be utilized.


West Fraser’s Ketcham Family to be Honoured

Junior Achievement of British Columbia (JABC) is recognizing the business leadership and legacy of the province’s most esteemed businessmen. Recognizing BC Business leaders for outstanding contributions to the province and country since 2006, this is the fourth annual Business Laureates of BC Hall of Fame induction. The 2009 Business Laureates of BC Hall of Fame inductees include The Ketcham Family, West Fraser Timber Co Ltd:

Samuel Kendall (Sam) Ketcham, 1930 – 1977, Founder, Director, President, West Fraser Timber Co. Ltd.
Henry Holman (Pete) Ketcham Jr., 1922 – 1996, Founder, Director, Chair; West Fraser Timber Co. Ltd.
William Peters (Bill) Ketcham, Founder, Director, West Fraser Timber Co. Ltd.
Henry Holman (Hank) Ketcham III, O.B.C., Chair, President & CEO, West Fraser Timber Co. Ltd.

The story of the Ketcham family and West Fraser Timber Co. Ltd. is the story of three founders of the company, sons of Seattle lumber broker and forest industry pioneer Henry Holman Ketcham, and his grandson, who leads the company today.

The Ketcham family core values remain true to this day: treat people fairly, laugh out loud, count pennies, and work harder than anyone else in the business to be the best. In 1955 the three brothers purchased, the Two Mile Planning Mill in Quesnel, BC. They grew that one small mill with twelve employees into a company that is the largest producer of lumber in North America. Today the company still celebrates what those fifteen people accomplished.

Early success provided the ability to expand and with Sam at the helm the company purchased a number of small bush mills in the Cariboo. These were often family operations which resulted in more and more families being added to the West Fraser roster. Brownmiller Brothers Mill in Quesnel was purchased in 1963 and with that acquisition, a dozen members of the Chesley family kept the true sense of family at the forefront of the business.

Growth continued through the late 60s and early 70s but tragedy struck on November 8, 1977 when Sam Ketcham died in a helicopter crash. Pete Ketcham was appointed Chairman of the Board and Janet Ketcham, Sam’s widow, was appointed to the Board of Directors.

In 1985, Henry Holman Ketcham III (Hank) became the President of the company. One year later West Fraser became a publicly traded company. In 1996 the family and business experienced another loss when Pete Ketcham lost his battle with cancer.

West Fraser, led by the Ketchams, has played an important role in the development of the communities in which it operates. The Sam Ketcham Memorial Pool in Williams Lake has been a lasting legacy to Sam and a valued community asset, as is the West Fraser Timber Park in Quesnel.

Both West Fraser and the Ketchams have been strong supporters of education and were a founding supporter of the University of Northern British Columbia to ensure that young people growing up in the communities in which the company operates can access higher education close to home.

The new members will be formally inducted into the Business Laureates of BC Hall of Fame at the 4th Annual Gala Dinner & Induction Ceremonies in Vancouver on May 21, 2009 at the Fairmont Hotel Vancouver. Presented by Scotiabank Group and Fasken Martineau the evening will include an elegant pre-reception, Guest Speaker, The Honourable Michael Wilson, Canadian Ambassador to the United States of America, and commemorative videos produced by Oh Boy Productions.

For more information go to: www.businesslaureatesbc.org.


Spotlight on Wood at 2009 Gala

BC Wood WORKS! is gearing up to recognize excellence in wood construction through its 2009 Wood Design Awards competition.

"This competition strengthens B.C.'s wood culture by building synergy at so many levels," says Mary Tracey, executive director of BC Wood WORKS! "It recognizes excellent and innovative wood projects, and lets us tell the world about them. And the awards gala brings together builders, designers and engineers who share their knowledge and experience with wood."

"We are showing industry and potential customers the great potential of B.C. wood species - both architectural aspects such as its beauty, warmth and sound absorption, and structural attributes such as its energy efficiency, cost effectiveness and ease of construction," she says. "In this province, we have always appreciated the beauty of wood design, and now there is growing awareness of the environmental and structural benefits, especially with advances in engineered wood products and technology."

The competition has nine wood design categories: Residential; Multi-Unit Residential; Commercial; Institutional; Interior Wood Beauty-Residential; Interior Wood Beauty-Commercial; Green Building; and use of western red cedar in both Residential and Non-Residential applications.

As far as Vancouver architect Lubor Trubka is concerned, the merits of the BC Wood WORKS! design competition cannot be over-stated. "It delivers tremendous value," he says. "There's a lot of prestige involved in winning an award, and this sends a signal to architects who are starting out that they can be recognized if they choose to use wood."

And that's great news for Trubka, who has been building with wood for 40 years and was named Wood Champion in 2008. "In my opinion, wood is a lot more sympathetic and user friendly, and you can do a lot more with it than you can with other construction materials such as steel or concrete blocks," he says. “Its only limitation is the designer's imagination." Lubor Trubka Associates Architects works with many First Nations clients, and won the 2008 Institutional Wood Design award for the Tseshaht First Nations Tribal Multiplex in Port Alberni.

The list of winners over the years shows that while wood is still a great choice for home construction, it can also be used for institutional and commercial projects such as fire halls, libraries, schools, arenas, airports and tourist information centres. In 2007, winners included a sauna at Nahatlach River near Vancouver (Natural Cedar) and a suspension bridge on the South Klondike Highway in the Yukon (Commercial).

The Green Building category, introduced in 2007, is awarded to a project that shows how wood can reduce the environmental impact and improve the environmental performance of any new or renovated structure. The 2008 winner was the West Branch Combined Sewer Overflow Operations Building in New Westminster, which was built primarily with heavy timbers recovered from a local deconstructed sawmill.

The 2009 Award Gala, sponsored by Forestry Innovation Investment Ltd. And Natural Resources Canada, takes place Monday, March 9 at the Fairmont Waterfront Hotel in downtown Vancouver. The deadline for nominations is Friday, Feb. 6, and anyone can recommend a project, as long as it was completed after January 2006 and before January 2009.

To nominate a project or learn more about the awards event, visi www.wood-works.ca and look for the BC Wood WORKS! BC Gala page, or contact event coordinator Lorna Malone by email at: lmalone@wood-works.ca or by telephone at: 1-877-929-9663 ext 4.



College of New Caledonia’s New Diploma Will Fill Shortage of Natural Resources Professionals

After nearly 40 years of service to BC’s forest industry, the College of New Caledonia’s Forest Resource Technology program has been reborn in a new form. The new Natural Resources and Environmental Technology Diploma program starts in September 2009 and is currently accepting applications.

It will help fill the shortage of skilled forest professionals recently identified by Forest Minister Pat Bell’s forestry roundtable, according to Dean Don Precosky. “We have an exciting new program that prepares students for forestry and related industries,” said Precosky, CNC’s Dean of Arts, Science, and Business.

Instructor Ed Morrice stressed that in addition to forestry skills, the program gives graduates opportunities in oil and gas, mining and ecotourism. “The program really applies to any resource-based field,” he said. He added graduates will have a broad grasp of all resource issues, including wildlife, fisheries, water, bioenergy and exploration. They’ll also be able to implement and enforce environmental standards, and they’ll be able to travel to remote areas of BC, working in and leading professional teams, and applying practical solutions in the field, he said.

Program co-ordinator Angus McLeod said that because the program covers forest operations, forest measurements, forest health and silviculture, graduates from the program will also be able to qualify as Registered Forest Technologists (RFTs). McLeod recently made a presentation to the 21-member forest roundtable, which includes representatives from industry, First Nations, the United Steelworkers, forest-based communities and universities. The roundtable heard there is a shortage of skilled forest professionals, which will increase in the next few years with many retirements expected, and thus industry and the province must partner to support increased training and recruitment of forest professionals.

“Industry has shown a lot of interest in this new program – they’re constantly telling us they need more trained professionals in all of these fields,” said Morrice about the program, which was developed with input from current students, graduates and employers. “We also looked at the interests of potential students. They still need transferability and professional accreditation, but they also wanted more diversity and options. As well, it was critically important to address First Nations issues and awareness in the course content.”

Students will also be able to easily transfer to a university forestry program, if desired. Morrice noted employers like degree students to have the practical knowledge gained by technologists as well. And although there’s continued demand by employers for resource professionals, there are few programs like CNC’s in BC and across Canada.

The new two-year program starts in September 2009 and is accepting applications now. “People I talk to are excited – we’ve had a number of registrations already, even though we haven’t advertised yet,” said Morrice. Call 250-561-5867 for information or to register, or visit www.cnc.bc.ca.

Sampling of topics covered:

  • Bird and mammal identification
  • Assessments of fish habitat and streams
  • Outdoor recreation and tourism
  • Native plants and their cultural uses
  • Forest operations and measurements
  • Forest health and silviculture
  • Resource surveying, sampling and analysis
  • Ecosystem management
  • Habitat management
  • GPS and navigation


COPYRIGHT ©2008 COUNCIL OF FOREST INDUSTRIES., ALL RIGHTS RESERVED