MINISTRY OF FORESTS

Summary

$000

Estimates 2001/02¹

Vote

Estimates 2002/03

Net

No.

Gross

Recoveries

Net

OPERATING EXPENSE

Voted Appropriations

268,200

Ministry Operations.......................................................

246,157

(2,475)

243,682

131,090

Fire Suppression...........................................................

105,592

(4,500)

101,092

293,900

Forest Investment.........................................................

146,000

—

146,000

693,190

Total Voted Expense ...................................

497,749

(6,975)

490,774

Special Accounts (Statutory Authority)

2,293

Forest Stand Management Fund......................................

2,293

—

2,293

131,679

Small Business Forest Enterprise Program.......................

124,019

—

124,019

4,503

South Moresby Implementation - Forest Replacement........

3,828

—

3,828

138,475

Total Special Accounts..........................................

130,140

—

130,140

831,665

Total Operating Expense ..............................

627,889

(6,975)

620,914

4,183

Fulltime Equivalent (FTE) Employment

3,569

TOTAL EXPENSE BY

GROUP ACCOUNT CLASSIFICATION

242,879

Salaries and Benefits.....................................................

231,690

596,519

Operating Costs............................................................

413,046

2,621

Government Transfers...................................................

2,457

853

Other Expenses...........................................................

639

(4,095)

Internal Recoveries.......................................................

(19,943)

(7,112)

External Recoveries......................................................

(6,975)

831,665

Total Expense ..............................................

627,889

(6,975)

620,914

CAPITAL AND OTHER FINANCIAL REQUIREMENTS

Disbursements

Receipts

Net

—

Prepaid Capital Advances ²...........................................

—

20,056

Capital Expenditures ³ ..................................................

19,120

—

19,120

17,180

Loan, Investment and Other Requirements ⁴.....................

6,880

—

6,880

37,236

Total .....................................................................

26,000

—

26,000

NOTES

¹ For comparative purposes only, figures shown for 2001/02 expense, FTEs and capital expenditures have been restated to be consistent with the presentation of the 2002/03 Estimates. Schedule A presents a detailed reconciliation.

² Details of prepaid capital advances are presented in Schedule C.

³ Details of capital expenditures are presented in Schedule D.

⁴ Details of loan, investment and other requirements are presented in Schedule E.

Vote 27

MINISTRY OPERATIONS

Classification by Sub-Vote

Estimates 2001/02

Estimates 2002/03

$000

$000

502

Minister's Office.........................................................................

502

40,376

Corporate Services....................................................................

29,512

227,322

Forest Resources Management (net of recoveries).........................

213,668

44,225

— Headquarters Resources Management..................................

40,310

183,097

— Region and District Operations.............................................

173,358

268,200

Total Vote ............................................................

243,682

VOTE DESCRIPTION

This vote provides funding for the forest and range stewardship and management activities of the ministry, and for general management and administrative services. The major legislation administered or supported through this appropriation includes the Forest Act, the Range Act and the Forest Practices Code of British Columbia Act. Functions related to these activities and services are performed at provincial, regional and district levels and include:

(a) Minister’s Office – This sub-vote provides for the office of the Minister of Forests, and includes salaries, benefits, allowances and operating expenses of the minister and the minister's staff.

(b) Corporate Services - This sub-vote provides for senior executive direction; ministry-led forest sector initiatives; and coordination of central ministry services including corporate policy, human resources, finance, audit, and information technology for ministry initiatives. Government transfers are provided for activities which promote prudent forest management.

(c) Forest Resources Management - This sub-vote provides for provincial forest and range land stewardship and management at provincial, regional and district levels. Funds generated from fees for enhanced recreation sites are used to partially fund the operating costs of forest recreation site maintenance activities. Government transfers are provided for the promotion of integrated management of forest and range lands and to agencies or groups involved in cooperative forestry research. Costs related to the Small Business Forest Enterprise Program are recovered from the Small Business Forest Enterprise Special Account. Costs related to the provision of supplies and services may be recovered from other ministries and levels of government, agencies, organizations and individuals. This sub-vote is comprised of the following activities:

(i) Headquarters Resources Management - provides for headquarters functions associated with the Chief Forester; aboriginal affairs; resource tenures and engineering; compliance and enforcement; timber supply; timber pricing; forest practices; research; operation of the tree nurseries and the seed centre; and

(ii) Region and District Operations - provides for regional and district activities; aboriginal relationships; timber supply review; tenure administration; operational plan review and approval; cutting permit approval; timber pricing; compliance and enforcement; recreation site and trail development and maintenance; road and bridge development and maintenance; forest health; research extension; basic silviculture; and regional and district administration.

Vote 27
MINISTRY OPERATIONS

Group Account Classification
	Estimates 2001/02 $000	Estimates 2002/03 $000

MINISTER'S OFFICE

Salaries and Benefits........................................................................................................................	421	427
Operating Costs...............................................................................................................................	81	75
Total ..................................................................................................................................	502	502


CORPORATE SERVICES

Salaries and Benefits........................................................................................................................	15,550	14,882
Operating Costs...............................................................................................................................	22,500	12,591
Government Transfers......................................................................................................................	1,727	1,626
Other Expenses..............................................................................................................................	599	413
Total ..................................................................................................................................	40,376	29,512


FOREST RESOURCES MANAGEMENT

Salaries and Benefits........................................................................................................................	176,735	171,338
Operating Costs...............................................................................................................................	93,695	102,696
Government Transfers......................................................................................................................	887	824
Other Expenses..............................................................................................................................	243	226
Internal Recoveries..........................................................................................................................	(41,626)	(58,941)
External Recoveries.........................................................................................................................	(2,612)	(2,475)
Total ..................................................................................................................................	227,322	213,668

Vote 28	FIRE SUPPRESSION
	Classification by Sub-Vote

Estimates 2001/02 $000			Estimates 2002/03 $000

85,100	Direct Fire Fighting (net of recoveries)...........................................................................		55,380
45,990	Fire Preparedness (net of recoveries)...........................................................................		45,712
131,090		Total Vote ......................................................................................................	101,092


VOTE DESCRIPTION This vote provides for fire prevention, control and suppression as prescribed by the Forest Practices Code of British Columbia Act. Functions related to these programs and services are performed throughout the province and include: (a) Direct Fire Fighting - This sub-vote provides for control and suppression of wild fires and ex gratia payments relating to these activities. Costs related to the provision of supplies and services may be recovered from other agencies and levels of government, provinces, countries, agencies, organizations and individuals. (b) Fire Preparedness - This sub-vote provides for fire prevention; the infrastructure, personnel, equipment and supplies required to maintain a consistent state of readiness to control and suppress wild fires; and associated research and development. Government transfers are provided to promote fire safety and awareness. Costs related to the provision of supplies and services may be recovered from other agencies and levels of government, provinces, countries, agencies, organizations and individuals.

Vote 29

FOREST INVESTMENT

Classification by Sub-Vote

Estimates 2001/02

Estimates 2002/03

$000

$000

282,122

Forest Investments....................................................................

134,000

216,117

— Land-based.......................................................................

95,500

28,925

— Research..........................................................................

28,000

37,080

— Improvements...................................................................

10,500

11,778

International Marketing................................................................

12,000

293,900

Total Vote ............................................................

146,000

VOTE DESCRIPTION

This vote provides for the operation and management of forest investments and international marketing, including:

(a) Forest Investments - This sub-vote provides for investments in the following areas:

(i) Land-based - provides for activities to plan and administer land-based investments; to support land use planning; to establish and administer objectives and standards for land-based investments; for planning and land-based activities delivered by the forest industry in enhanced forestry, environmental restoration, rehabilitation, and resource information; and to maintain and utilize resource data resulting from land-based investments;

(ii) Research - provides for high priority operational research activities identified by the forest industry, research community and government; and for product development, technology transfer and the fibre access needs of the secondary manufacturing industry; and

(iii) Improvements - provides for forest gene resource management activities under tree improvement; and for investments associated with small woodlands.

(b) International Marketing - This sub-vote provides for activities that are intended to develop new markets and maintain existing international markets for British Columbia forest products.

Vote 28
FIRE SUPPRESSION

Group Account Classification
	Estimates 2001/02 $000	Estimates 2002/03 $000

DIRECT FIRE FIGHTING

Salaries and Benefits........................................................................................................................	16,923	17,845
Operating Costs...............................................................................................................................	69,166	38,535
Other Expenses..............................................................................................................................	11	—
External Recoveries.........................................................................................................................	(1,000)	(1,000)
Total ..................................................................................................................................	85,100	55,380


FIRE PREPAREDNESS

Salaries and Benefits........................................................................................................................	25,315	26,930
Operating Costs...............................................................................................................................	24,168	22,275
Government Transfers......................................................................................................................	7	7
External Recoveries.........................................................................................................................	(3,500)	(3,500)
Total ..................................................................................................................................	45,990	45,712

Vote 29
FOREST INVESTMENT

Group Account Classification
	Estimates 2001/02 $000	Estimates 2002/03 $000

FOREST INVESTMENTS

Salaries and Benefits........................................................................................................................	7,014	195
Operating Costs...............................................................................................................................	275,108	133,805
Total ..................................................................................................................................	282,122	134,000


INTERNATIONAL MARKETING

Salaries and Benefits........................................................................................................................	693	—
Operating Costs...............................................................................................................................	11,085	12,000
Total ..................................................................................................................................	11,778	12,000

Special Account

FOREST STAND MANAGEMENT FUND

Estimates 2001/02

Estimates 2002/03

$000

$000

1,189

Total Account Balance at the Beginning of the Fiscal Year ............

2,147

Operating Transactions

5,638

Revenue...................................................................................

2,051

2,293

Expense...................................................................................

2,293

3,345

Net Revenue (Expense) .............................................................

(242)

(2,387)

Difference Between 2001/02 Estimates and Projected Actual Net
Revenue (Expense) .........................................................................

2,147

Total Account Balance at the End of the Fiscal Year.......................

1,905

SPECIAL ACCOUNT DESCRIPTION

This account was originally established as a fund by the Forest Stand Management Fund Act, 1986, and was changed to a Special Account under the Special Accounts Appropriation and Control Act, 1988. Revenue is provided by contributions from municipalities, the forest industry, forest sector unions and others; through money collected under Section 71.1 of the Forest Practices Code of British Columbia Act; penalties levied under the Forest Practices Code of British Columbia Act; and from stumpage levies. Expenses provide for enhanced management of British Columbia's forest and range lands, for silviculture work performed under Section 71.1 of the Forest Practices Code of British Columbia Act, to defray the costs of investigating contraventions of the Forest Practices Code of British Columbia Act, to defray fire suppression costs relating to contraventions of that Act where a penalty has been levied in respect of the contravention, and for reforestation and road deactivation in areas subject to stumpage levies.

No financing transactions are provided for under this account.

Special Account

SMALL BUSINESS FOREST ENTERPRISE PROGRAM

Estimates 2001/02

Estimates 2002/03

$000

$000

274,870

Total Account Balance at the Beginning of the Fiscal Year ............

291,095

Operating Transactions

Revenue

198,622

— Upset Stumpage....................................................................

164,072

53,411

— Bonus Stumpage...................................................................

41,018

467

— Annual Fees and Billings........................................................

1,200

2,500

— Log Sales.............................................................................

1,800

255,000

208,090

Expense

36,372

— Administration......................................................................

36,011

21,134

— Sales..................................................................................

20,042

42,183

— Roads.................................................................................

38,593

31,990

— Silviculture..........................................................................

29,373

131,679

124,019

123,321

Net Revenue (Expense) .............................................................

84,071

(68,974)

Difference Between 2001/02 Estimates and Projected Actual Net
Revenue (Expense) .........................................................................

(38,122)

Return to the General Fund ................................................................

(77,191)

291,095

Total Account Balance at the End of the Fiscal Year.......................

297,975

Financing Transactions

Loans, Investments and Capital Asset Acquisitions

—

Receipts ....................................................................................

—

2,491

Disbursements – capital ...............................................................

1,010

17,180

– other ................................................................

6,880

(19,671)

Net Cash Source (Requirement) ..................................................

(7,890)

1,163

Difference Between 2001/02 Estimates and Projected Actual Net Cash
Source (Requirement) ..................................................................

(18,508)

Total Financing Transactions ........................................................

(7,890)

SPECIAL ACCOUNT DESCRIPTION

This account was established in 1988 through an amendment to section 109 of the Forest Act. The purpose of the account is to identify all revenues incidental to the operation of the Small Business Forest Enterprise Program and to provide an ongoing source of funds to defray the costs of the program.

Revenue is collected from the following sources: upset stumpage; bonus stumpage; annual fees and billings (annual rent, trespass charges, scaling fees, and registration fees) incidental to the operation of the program; and sales of logs.

Expenses are for preparing forest development plans and logging plans; assessment required to formulate these plans for timber sale licences; costs of meeting requirements of the Forest Practices Code of British Columbia Act respecting silviculture prescriptions; construction and maintenance of logging roads and bridges; protection of forests; administration; costs of selling timber and logs; and other forest management requirements incidental to the program.

Revenue in excess of current expenses and future basic silviculture requirements is transferred to the General Fund.

Disbursements reflect development of timber for sale in future years.

Special Account

SOUTH MORESBY IMPLEMENTATION - FOREST REPLACEMENT

Estimates 2001/02

Estimates 2002/03

$000

$000

23,861

Total Account Balance at the Beginning of the Fiscal Year ............

20,204

Operating Transactions

944

Revenue...................................................................................

404

4,503

Expense...................................................................................

3,828

(3,559)

Net Revenue (Expense) .............................................................

(3,424)

(98)

Difference Between 2001/02 Estimates and Projected Actual Net
Revenue (Expense) .........................................................................

20,204

Total Account Balance at the End of the Fiscal Year.......................

16,780

SPECIAL ACCOUNT DESCRIPTION

This account was established by the South Moresby Implementation Account Act in 1988. The purpose of the account is to offset the decrease in forest land available for harvest due to the creation of South Moresby National Park by funding incremental silviculture and other activities on coastal forest lands.

The account can be credited with contributions from the Consolidated Revenue Fund, the federal government and accrued interest.

No financing transactions are provided for under this account.