Good afternoon and thank you. It's my pleasure to be here to speak to you on behalf of the First Nations Forestry Council. Although we've been asked to speak on the regional economic development theme, you'll hear aspects of all three themes in this presentation.
We believe that the relevance of first nations in your current study has never been more paramount. With this in mind, I would like to bring the committee's attention to the recent Supreme Court of Canada decision on Tsilhqot’in. This most recent decision has been discussed as a game changer in that it has brought a clearer definition of title as it relates to first nations lands, which is clearly important to a renewed forest sector.
Our understanding of the work of this committee today begins with reflecting on work done and recommendations made in your 2008 report, “Canada's Forest Industry: Recognizing the Challenges and Opportunities”. We wish to remind the committee that the First Nations Forestry Council did participate as a witness providing input into that report and we supported the recommendations that were put forward. Some of the 23 recommendation were very specific to the first nations and aboriginal peoples of Canada.
Specifically, we agreed with planning for first nations to become more active partners in the sustainable development of Canada's forests. We agreed to and expected renewed participation in land use planning efforts. We had already begun and were pleased to support increased attention to the value-added sector. Of particular note, we supported a recommendation on direct funding for the protection measures needed in our communities—aboriginal communities—regarding the forest fire risk associated with the mountain pine beetle epidemic.
I'd like to point out that these recommendations were not singular, but rather very strongly echoed in multiple action plans and commitment agreements at the time. It is now the 10th anniversary of the B.C. “New Relationship”, which had expressed a new vision of coexistence and reconciliation of title and rights in this province. The First Nations-Federal Crown Political Accord was also penned in 2005, committing the parties to promote a meaningful process for reconciliation towards improved quality of life, including policy transformation. The Transformative Change Accord, also in 2005, committed B.C., Canada, and first nations leadership to close the socio-economic gap between first nations and others in B.C. Then more recently, in 2008, a B.C. round table recommendations report was completed, and first nations becoming partners in forestry was one of the six priorities of that work. Within our own communities and within our organization, the First Nations Forestry Council, we completed the “B.C. First Nations Forestry and Land Stewardship Action Plan” in 2008. This was a plan for transforming the forest sector with our involvement and participation.
So after 10 years of commitments to this high-level engagement and participation and clearly good intentions being described on paper, we are suffering a shortfall in the realization of these goals. The primary involvement of the sector has been through provincial forest consultation and revenue-sharing agreements—that's in British Columbia. These agreements offer revenue sharing and forest tenure opportunities in exchange for a consultation process that enables the industry to operate within first nations territories.
Currently over 160 of our 203 nations in the province are engaged in these agreements and they hold over 10 million cubic metres of annual harvesting rights. Although this volume allocation sounds significant, and it is over 12% of B.C.'s annual cut, it does not deliver the benefits our communities are striving for. Regardless of this, it is important to note that our communities are eagerly making the effort to participate in this sector at some of the worst times the sector has seen, I might add, including the 2009 economic crash, the U.S. housing crash, and the impacts of the mountain pine beetle epidemic making it hard on the industry overall.
It's also important to note that revenue sharing under these agreements over the past 12 years represents approximately 3% of the revenue collected by the crown. As forest products cross into the U.S., additional resource rent is charged: the softwood lumber agreement tariff. We're aware of this and we're aware this revenue is not shared in the revenue-sharing agreements we currently hold.
Although this revenue sharing and tenure opportunity has been a good start and we're eagerly participating in it, a continued effort and incremental change is needed to properly recognize aboriginal title and rights. Better solutions are required for capacity building and forest management, and governance roles in particular, over forest lands.
When it comes to the fuel management issue regarding our communities and forest fire risk, direct funding has been made available for community fuel management assessments. However, the costs associated with the implementation of these treatments has not been available. The significant changes in budgets reduced meaningful money for the implementation of these prescriptions. This leaves our communities at continued risk of forest fire, which is an unacceptable health risk to our citizens. We have a First Nations' Emergency Services Society in B.C. that's taken the lead on this work, and we encourage your committee to reach out to that group to hear more specifically about the forest fire hazard.
I should note that the primary involvement of first nations as tenure holders is not involvement as partners in sustainable management of Canada's forest lands. It does not represent meaningful participation in land use planning. It is a simple economic opportunity to participate in the logging sector.
I'm switching gears a bit to the HR concerns. The Forest Products Sector Council did its reporting in 2011. Although we continue to struggle with meaningful programs that support the scale of workforce replacement that is upon our sector, aboriginal youth can be the replacement workforce that is clearly needed in the next five to 10 years. However, without real planning and investment, this opportunity could be missed.
Investments in restoration of the land or fuel management treatment, as discussed, are tremendous opportunities for building capacity in forestry-related business and could serve as a transition to the skilled aboriginal workforce that the forest sector requires. Similarly, major resource projects like natural gas lines can be tremendous catalysts for new and emerging workforce participants. This type of short-term project workforce demand needs to be planned and coordinated with the sustainable forest sector needs.
First nations have shown tremendous interest in being participants in the forest sector. However, there is an obvious lack of wealth for investment purposes. A renewed manufacturing sector or stimulated value-added sector are almost out of reach, considering the lack of access to capital for our communities.
We view innovation efforts of late as being focused on finding new global markets to replace the previous U.S. demand. Although it may not be abundantly clear, we feel that the lack of meaningful relationships with first nations represents a tremendous barrier to investment in the forest sector. It represents a risk of uncertainty to investors. Strong relationships with first nations can lead to globally certified wood products or other value-added products. For those of us who wish to see a renewed forest sector for Canada—and we certainly are part of this group—a forest sector that is inclusive and respectful of aboriginal peoples in Canada is imperative.
First nations are eager to be part of this new sector. It requires investment in these communities for stewardship and planning; operational and management support; targeted workforce programs; access to capital for local investment into new manufacturing and value-added facilities, including bioenergy; and of course, a policy framework that will accommodate this support.
Let's move past denying the title and rights that aboriginal peoples hold, and past the shallow commitments that look nice in reports but have inadequate scale with the financial resources that are called for. Inadequate and inappropriate levels of investment in aboriginal communities is costing Canada in the slow recovery and renewal of the sector.
We feel a strong and healthy relationship with our communities will bring prosperity for all in a renewed forest sector in Canada.
Thank you very much for allowing me to share this perspective.