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B.C. Forests Threatened by Stumpage Reduction



Patrick Moore wrote

I do not believe that the rent (stumpage) has a direct impact on the value
of the forest ecosystem. Rents are usually determined by the market value,
not the other way around. The reason stumpage rates are being reduced in
British Columbia is because they are so high that companies cannot make a
profit in the market. British Columbia has among the world's most efficient
sawmilling infrastructure, so the problem is not one of economic
inefficiency.

My contention is that the international market price SHOULD be allowed to
dictate the stumpage - not government policy.  I disagree with you when you
contend that stumpage does not have an impact on the value of the
ecosystem.  Two examples perhaps illustrate the point - both in southern
hemisphere Podocarp forests.  Rimu used to be sold on stump in New Zealand
for the high price of $7.00 per cubic metre - up until the mid 80s.  What
were the results of this?  An emphasis of production of volume of value in
the bush, with very little regard for the integrity of the residual
ecosystem that produced this "rubbish".  Similarly, the millers had
conversions of c. 45% for logs with diameters of sometimes over 1.4 metres,
cutting for volume throughput and not investing in any equipment to improve
the value (what was the point).

On the other extreme is stinkwood in South Africa - another podocarp
growing in a sensitive ecosystem.  I recall reading in the Commonwealth
Forestry Review notes to the effect that the value of the timber was so
high that individual trees were monitored, and the method of extraction
involved expensive logging methods - including crown removal before felling
and horse extraction as I recall.

In the latter example the ecosystem was treated as being highly valued
BECAUSE it produced something of high value.  The relationship is DIRECT
Patrick.  In addition, sawmillers ALWAYS claim they are efficient.  There
is a natural tension between them and the foresters whose concern is the
forest.

Patrick wrote:
"With regard to the ban on export of raw logs from public lands in BC, I
agree with you, this tends to favour BC mills and to protect BC employment.
This is a social policy, not an economic one. Do you think BC should allow
unrestricted sales of raw logs from public lands?"

I believe the evidence is that export bans decrease the value of the
ecosystems by reducing the value of the logs.  If the priority is the
forest's integrity then I believe exporting bans are counterproductive to
that end.  This, of course, is not an advocacy for unrestricted logging
from public lands.  That would only open them up to those trying to
maximise their present net worth by mining the resource and, once finished,
moving on to the noble art of drift netting.


Chris J K Perley
Chris Perley and Associates
Forestry and Natural Resource Consultants
PO Box 7116
Dunedin
New Zealand

Ph +64 3 453 4948
Fax +64 3 453 4945
Mob +64 25 880 977
e-mail: chris@perleyandassoc.co.nz

"Think like a mountain"
Aldo Leopold



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