Northern Plan Area Economic Opportunities and Barriers Study

Summary
economy. There are approximately 50 local workers who contribute nearly 2.5 million in
direct benefits to the communities. Outside work force that lives in other communities
generate direct benefits to their communities. The high hemlock component, collapse of
markets and environmental boycotts could have significant negative impacts on coastal
communities and job loss.
Forestry opportunities for First Nations have a great deal of potential due to forest
companies, government and environmentalists recognizing the lack of attention that has
been given to Oweekeno, Kitasoo, Nuxalk and Heiltsuk communities. It is expected that
through partnerships and transfer of AAC that regional development will happen for First
Nations. Infrastructure is an issue for many communities. Lack of industrial space,
distance to market, high cost of electricity on zone 2 industrial rates, training needs and
investment in milling and value added capital requirements are considered barriers to
rapid development. These barriers can be overcome.
Forest opportunities for community residents are more difficult as AAC is only accessible
through the Small Business Program. Licensees will sell wood to local small
manufacturers, but only at Howe Sound prices. Changes to the SBFEP program due to
certification and new forestry systems may further limit opportunities.
First Nations and communities have all expressed an interest in community based forestry
with Heiltsuk, Nuxalk and the Central Coast Regional District all making applications for
community forests in 1999. None of the applications were successful due inability of the
applicants to successfully work together to achieve a common goal.
Little Valley Forest Products is the largest value added mill on the Central Coast. This
company has invested substantially in developing their capacity and is the first forest
company to contribute in a meaningful way to the tax base. Once full investment has
been achieve, the potential for over 50 jobs will exist with the ability to add 2500% value
to the wood. The barriers to the success of this manufacturer are: chart areas not
developed to allows for harvest of cut, hydro electric zone 2 industrial rates, increased
cost of gasoline and distance to ship to market. Other problems are the collapse of some
markets due to the environmental boycott, investment required to convert bee hive
burners, stumpage, new SBFEP regulations and bridging loans on capital investment with
only a five year wood supply.
There are several more serious value added manufacturers and product developers within
the region that will move value added forward. All have trouble in accessing fibre to
carry out their operations on a year round basis. Training programs in value added and
saw milling have occurred in Bella Coola and Bella Bella that has increased the skill level
and awareness of raw product demand. Accessing training dollars are very difficult, as
those interested in the business do not qualify for FRBC or HRDC training dollars as they
have always worked as independents. Rough cut dimensional green wood shipments are
of interest to many outside value added industries, this product is in high demand. The
quality of the wood is considered very good. There is a high level of interest in smallscale
value added residents in working with good quality hemlock. Cottage industry in
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