The
Canadian Forest:
For profit, for people - or
both?
 Dr.
Louis D'Amore wrote a
major feature on the state of Canada's Forest
Industry in The Business Quarterly that gained
world attention a few years ago. Now BC Scene is
preparing a timely update on our colleague's
original predictions, which are contained in the
following article. Louis d'Amore received his
MBA from the Wharton Graduate School of
Business, University of Pennsylvania. This
article is based on a study made by the author
and sponsored by Economic Institute of the
Canadian Forestry Service, Department of
Environment. The views expressed are those of
the author and not necessarily of the
aforementioned Department.
The trend towards a
leisure society
One of the most significant as aspects of our
post industrial society is the increasing
magnitude and significance of leisure. Since
1900, we have witnessed increases in population,
the amount of free time, real income, mobility,
and education levels all accompanied by a
population shift from rural to urban areas.
Clearly discernible is a growing diversity in
work schedules and shortening of work time of
which the four day work week is the most
publicized.
The forest resource
base - an economic perspective
Forest lands in Canada total 780 million acres
of which some seventy-five percent (588) are
suitable for regular harvest. This represents
10% of the world's productive forest land area.
Canada cuts about 8% of the world's industrial
timber and is the leading exporter of forest
products accounting for approximately 22% of the
world's total exports.
More than 90% of the
forest suitable for regular harvest is located
in the provinces and of this amount, 80% (435
million acres) is allocated to management.
Except for sixty-four million acres of forest
lands which are privately owned, virtually all
forest lands in the provinces are provincial
crown lands. This is in accordance with the
British North American Act which provides that
the provinces are the owners of most Crown
rights to land and other natural resources
within their boundaries.
The economic importance of
forest related industries in Canada is
undisputed. The pulp and paper industry is the
leading industry in Canada in employment., and
value added and second in terms of sales.
Sawmills and planing mills rank 3rd and 6th
respectively in these same categories. If
sawmills and planing mills were lumped into the
broader classification of 'wood industries' this
broader classification would rank 2nd, and 3rd
respectively in the categories
mentioned.
Table A is a summary of
key economic of key economic indicators for the
three major classifications of forest related
industries. In addition to a total shipments
value of $7.6 billion in 1969, forest products
exports accounted for $2.6 billion or 17% of
total Canadians exports. Forest related
industries employ approximately 270000 workers
and paid them a salary of $1.9
billion.
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Aesthetics
..........................................vs
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Economics
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Natural Cycles
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Managed
Cycles
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Preservation
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Utilization
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Public
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Private
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Local Recreation
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Tourism
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Wilderness
Recreation
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"Social"
Recreation
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Present Values
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Futures
Values
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Environmental and
Social Considerations
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Competitive
position of industry
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Public
Goals
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Corporate
Goals
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National
interests
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International
interests
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Rather than "hide" behind
the term multiple-use, it would be better to
identify and identify and acknowledge the
tradeoff areas and arrive at decisions which
while not able to maximize use by all those
interested will seek to optimize resource
allocation on the basis of defined
goals.
The tradeoffs illustrated
are simple and along two dimensions only. In
actual fact, they are most often
multidimensional and a concession in one
direction pulls from two or more other
dimensions. The three underlying "poles" however
would appear to be three environmental
considerations social and economic as diagrammed
below.
Environmental -
Economic - Social - Societal framework
The mosaic of modern day Canadian society is
one of interrelatedness and interdependence. It
is not enough therefore, that an industry which
accounts directly or indirectly for 12-13% of
the GNP, a significant portion of foreign trade,
and 250,000 employees, to have as its one main
collective purpose - making a profit.
The forest related
industries are without question the most
pervasive in the Canadian economic fabric. As
such, it is incumbent on the industry to operate
in a manner which positively contributes and at
least conforms with national goals and
objectives. Private enterprise is not a right
but a privilege granted by a society. Inherent
in the privilege are parallel responsibilities
which in the case of the forest industry are a
responsibility for stewardship of the forest
industry are a responsibility for stewardship of
the resource they utilize and the sharing of a
national heritage with other institutions of
society as well as the public at
large.
Can we meet the
challenge?
Genuine concern for all aspects of forest
operations is evident in governments,
corporations, universities and various segments
of the public. It is possible that the many
efforts underway can be marshaled into unifying
and positive direction that truly harnesses the
forest in the long term? Can the fragmentation
of industry and government be overcome? Can
forest management goals, policies and decisions
be framed and executed within the context of
national goals and priorities?
These things can only
happen through a flexible philosophy of
cooperation. The key to functioning in unison is
no single magic formula, but a continuing
process of adaptation based on mutual trust
among levels of government and among government,
industry and the public at large. The guiding
principle can only be one of mature partnership
- can we meet the challenge?
To be continued
(List of forest industry
web sites to come. )
Footnotes:
A management
consulting firm studying the four day work week,
identified 17 Canadian companies on a four day
schedule in October 1971. Just six months later,
in April 1972, the same consulting firm stated
that there were at least 60 companies in Canada
on a four day schedule. The corresponding
statistics in the United States indicate
approximately 650 companies on a four schedule
in September 1971 with a rate of conversion of
four companies a day.
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