MINISTRY OF FORESTS

The mission of the Ministry of Forests is to protect and manage our public forests for the sustained benefit of all British Columbians.

MINISTRY SUMMARY

($000)

Estimates
2002/03¹

Estimates
2003/04

VOTED APPROPRIATIONS

Vote 25— Ministry Operations

345,142 

312,230 

Vote 26— Forest Investment

146,000 

110,000 

STATUTORY APPROPRIATIONS

BC Timber Sales Special Account

124,019 

138,179 

Forest Stand Management Fund Special Account

2,293 

1,490 

South Moresby Forest Replacement Special Account

3,828 

3,000 

OPERATING EXPENSE

621,282 

564,899 

PREPAID CAPITAL ADVANCES²

— 

— 

CAPITAL EXPENDITURES³

17,320 

15,690 

LOANS, INVESTMENTS AND OTHER REQUIREMENTS⁴

6,880 

34,610 

REVENUE COLLECTED FOR, AND TRANSFERRED TO, OTHER ENTITIES⁵

— 

— 

FULLTIME EQUIVALENT (FTE) EMPLOYMENT⁶

3,470 

3,070 

NOTES

¹    For comparative purposes only, figures shown for 2002/03 operating expense, capital expenditures, and FTEs have been restated to be consistent with the presentation of the 2003/04 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 loans, investments and other requirements are presented in Schedule E.

⁵    Details of revenue collected for, and transferred to, other entities is presented in Schedule F.

⁶    Details of FTEs are presented in Schedule G.

CORE BUSINESS SUMMARY

$000

2002/03

2003/04 ESTIMATES

OPERATING EXPENSE

Net

Gross

External
Recoveries

Net

Core Business

Forest Protection

111,452 

112,117 

(11,851)

100,266 

Stewardship of Forest Resources (includes special accounts)

69,518 

52,999 

(2,117)

50,882 

Pricing and Selling Timber

81,307 

70,600 

— 

70,600 

Compliance and Enforcement

34,288 

30,048 

— 

30,048 

Executive and Support Services

54,698 

65,049 

(125)

64,924 

Forest Investment

146,000 

113,500 

(3,500)

110,000 

BC Timber Sales (special account)

124,019 

138,179 

— 

138,179 

TOTAL OPERATING EXPENSE

621,282 

582,492 

(17,593)

564,899 

CAPITAL EXPENDITURES

Net

Disbursements

Receipts

Net

Core Business

Forest Protection

2,980 

2,430 

— 

2,430 

Stewardship of Forest Resources (includes special accounts)

5,605 

3,178 

— 

3,178 

Pricing and Selling Timber

4,567 

4,933 

— 

4,933 

Compliance and Enforcement

1,951 

2,366 

— 

2,366 

Executive and Support Services

1,207 

2,103 

— 

2,103 

BC Timber Sales (special account)

1,010 

680 

— 

680 

TOTAL CAPITAL EXPENDITURES

17,320 

15,690 

— 

15,690 

LOANS, INVESTMENTS AND OTHER REQUIREMENTS

Net

Disbursements

Receipts

Net

Core Business

BC Timber Sales (special account)

6,880 

34,610 

— 

34,610 

TOTAL LOANS, INVESTMENTS AND OTHER REQUIREMENTS

6,880 

34,610 

— 

34,610 

OPERATING EXPENSE BY CORE BUSINESS

$000

Estimates
2002/03

Estimates
2003/04

VOTE  25 - MINISTRY OPERATIONS

This vote provides for ministry programs and operations described in the voted appropriations under the following five core businesses: Forest Protection, Stewardship of Forest Resources, Pricing and Selling Timber, Compliance and Enforcement, and Executive and Support Services.

FOREST PROTECTION

Voted Appropriations

Direct Fire

55,380 

55,380 

Fire Preparedness

45,712 

37,161 

Forest Health

10,360 

7,725 

111,452 

100,266 

Voted Appropriations Description: This sub-vote provides for forest protection, including fire prevention control in accordance with applicable legislation throughout the province, including: (a) Direct Fire – provides for control and suppression of wild fires and ex gratia payments related to these activities.  Costs related to the provision of supplies and services are recovered from other agencies and levels of government, provinces, countries, companies, organizations and individuals; (b) Fire Preparedness – 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.  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, companies, organizations, and individuals, and from annual rents paid into the Consolidated Revenue Fund by timber licence holders; and (c) Forest Health – provides for forest health activities in Parks and Protected Areas, some viewscapes, urban areas, and other special sites.

STEWARDSHIP OF FOREST RESOURCES

Voted Appropriation

Stewardship of Forest Resources

63,397 

46,392 

63,397 

46,392 

Statutory Appropriations

Forest Stand Management Fund Special Account

2,293 

1,490 

South Moresby Forest Replacement Special Account

3,828 

3,000 

69,518 

50,882 

Voted Appropriation Description: This sub-vote provides for provincial forest and range land stewardship and management at provincial, regional and district levels including forest and range practices, timber supply planning and determination, range planning and management, control of invasive alien plants, recreation, forest health management, applied research, and forest gene resource management.  Costs related to the provision of supplies and services may be recovered from other ministries and levels of governments, agencies, organizations, and individuals.

Statutory Appropriations Description: This statutory appropriation provides for the Forest Stand Management Fund Special Account and for the South Moresby Forest Replacement Special Account.

PRICING AND SELLING TIMBER

Voted Appropriation

Pricing and Selling Timber

81,307 

70,600 

Voted Appropriation Description: This sub-vote provides for headquarters, regional and district activities related to timber tenure administration, timber pricing, and access to markets; meeting obligations with First Nations; and building and maintaining the forest services roads and bridge infrastructure to provide access to timber.  Transfers are provided for the promotion of integrated management of forest and rangelands.  Costs related to the provision of supplies and services may be recovered from other ministries and levels of governments, agencies, organizations, and individuals.

COMPLIANCE AND ENFORCEMENT

Voted Appropriation

Compliance and Enforcement

34,288 

30,048 

Voted Appropriation Description: This sub-vote provides for all activities related to upholding British Columbia laws to protect the province’s forest and range resources under the jurisdiction of the Ministry of Forests including: enforcing environmental standards for forest and range management for government and forest and range tenure holders; enforcing revenue policies; combating forest crimes; enforcing regulations to minimize fire, pests, and other agents; and enforcing rules governing the use of forest service recreation sites and trails.

EXECUTIVE AND SUPPORT SERVICES

Voted Appropriations

Minister's Office

611 

618 

Corporate Governance

54,087 

49,306 

First Nations' Participation

— 

15,000 

54,698 

64,924 

Voted Appropriations Description: This sub-vote provides for executive direction and related support services to the ministry including: the office of the Minister of Forests, including salaries, benefits, allowances, and operating expenses of the minister and the minister’s staff; and corporate governance and service delivery activities for strategic policy, performance management, legislation development, First Nations' participation, finance, human resources, freedom of information, executive and executive support, regional and district management, continuous improvement, best practices initiatives, and information technology strategy and central infrastructure. Transfers are provided for the integrated management of forest and rangelands and First Nations' participation in the forest economy. Costs related to the provision of supplies and services may be recovered from other ministries and levels of governments, agencies, organizations, and individuals.

VOTE 25 — MINISTRY OPERATIONS

345,142 

312,230 

STATUTORY —  FOREST STAND MANAGEMENT FUND SPECIAL ACCOUNT

2,293 

1,490 

STATUTORY —  SOUTH MORESBY FOREST REPLACEMENT SPECIAL ACCOUNT

3,828 

3,000 

VOTE  26 - FOREST INVESTMENT

This vote provides for programs and operations described in the voted appropriations under the core business Forest Investment.

FOREST INVESTMENT

Voted Appropriation

Forest Investment.

146,000 

110,000 

Voted Appropriation Description: This sub-vote provides for the operation and management of forest resource planning, research and investments, and product development and marketing including: the development of objectives and standards for, and third party administration of, land-based investments and for planning and delivery of land-based activities by the forest industry; the development of objectives and standards for, and third party administration of, delivery of land-based investments on the crown portion of Woodlot licence and Community Forest Agreement areas; the completion of strategic land use plans for areas across the province and for preparation of landscape/watershed level sustainable resource management plans; high priority operational research activities identified by the forest industry, research community and government; the development and provision of genetically well-adapted, high quality reforestation material from natural sources and through the conservation of our forest gene resources; product development, technology transfer and the fibre access needs of the secondary manufacturing industry; and activities that are intended to develop new markets and maintain existing international markets for British Columbia forest products. Transfers are provided for seed and gene conservation.  Costs related to the provision of supplies and services may be recovered from other levels of government, agencies, organizations, and individuals.

VOTE 26 — FOREST INVESTMENT

146,000 

110,000 

STATUTORY — BC TIMBER SALES SPECIAL ACCOUNT
(FORMERLY SMALL BUSINESS FOREST ENTERPRISE PROGRAM SPECIAL ACCOUNT)

This statutory account provides for programs and operations described in the statutory appropriations under the core business BC Timber Sales.

BC TIMBER SALES

Statutory Appropriation

BC Timber Sales Special Account

124,019 

138,179 

Statutory Appropriation Description:This statutory appropriation provides for the BC Timber Sales Special Account.

STATUTORY —  BC TIMBER SALES SPECIAL ACCOUNT

124,019 

138,179 

MINISTRY GROUP ACCOUNT CLASSIFICATION SUMMARY

GROUP ACCOUNT CLASSIFICATION

Salaries and Benefits

226,848 

167,921 

Operating Costs

397,884 

397,881 

Government Transfers

4,438 

17,836 

Other Expenses

40,898 

1,890 

Internal Recoveries

(42,044)

(3,036)

External Recoveries

(6,742)

(17,593)

TOTAL OPERATING EXPENSE

621,282 

564,899 

SPECIAL ACCOUNT¹

$000

BC TIMBER SALES  (FORMERLY SMALL BUSINESS FOREST ENTERPRISE PROGRAM SPECIAL ACCOUNT)

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 BC Timber Sales 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; assessments required to formulate these plans for timber sale licences; costs of meeting requirements in accordance with applicable legislation; construction and maintenance of logging roads and bridges; costs of developing timber sales for auction; 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 outstanding obligations is transferred to the General Fund.

Disbursements reflect capitalizable costs incurred for development of timber for sale in future years.  These costs are recovered from future sales revenue.

Estimates
2002/03

Estimates
2003/04

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR

124,666 

120,882 

OPERATING TRANSACTIONS

Revenue

208,090 

281,500 

Expense

(124,019)

(138,179)

Net Revenue (Expense)

84,071 

143,321 

Difference Between 2002/03 Estimates and Projected Actual Net Revenue (Expense)²

54,374 

Return to the General Fund

(166,928)

(107,447)

FINANCING TRANSACTIONS

Loans, Investments and Capital Acquisitions

Receipts

— 

— 

Disbursements - Capital

(1,010)

(680)

Disbursements - Other³

(6,880)

(34,610)

Net Cash Source (Requirement)

(7,890)

(35,290)

Difference Between 2002/03 Estimates and Projected Actual Net Cash Source (Requirement)²

30,815 

Working Capital adjustments⁴

1,774 

153 

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR⁵

120,882 

121,619 

NOTES

¹     A Special Account is an account in the General Fund where the authorization to spend money from the account is located in an Act other than the Supply Act.

²    Forecast net revenue and net cash receipts are significantly higher than budget primarily due to higher than expected harvest volumes (up 26 percent to 12.2 million cubic meters).

³    The significant year over year increase reflects a change in accounting estimate to include direct labour and an applicable share of overhead costs in the cost of inventory (i.e., timber developed for sale). Direct labour and overhead were previously expensed as period costs.

⁴    Working capital adjustments include those adjustments that would change the cash balance of the Special Account. This would include changes in accumulated amortization, inventory, and accounts receivable and payable.

⁵    The Projected Spending Authority Available represents the cash and temporary investments projected to be available at the end of the fiscal year. 

SPECIAL ACCOUNT¹

$000

FOREST STAND MANAGEMENT FUND

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 in accordance with applicable legislation; penalties levied in accordance with applicable legislation; and from stumpage levies.  Expenses provide for enhanced management of British Columbia's forest and range lands, for silviculture work and costs related to environmental remediation performed in accordance with applicable legislation, to defray the costs of investigating contraventions of applicable legislation, to defray fire suppression costs relating to contraventions of applicable legislation 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.

Estimates
2002/03

Estimates
2003/04

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR

13,881 

15,377 

OPERATING TRANSACTIONS

Revenue

2,051 

3,674 

Expense

(2,293)

(1,490)

Net Revenue (Expense)

(242)

2,184 

Difference Between 2002/03 Estimates and Projected Actual Net Revenue (Expense)

1,738 

FINANCING TRANSACTIONS

Loans, Investments and Capital Acquisitions

Receipts

— 

— 

Disbursements - Capital

— 

— 

Disbursements - Other

— 

— 

Net Cash Source (Requirement)

— 

— 

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR²

15,377 

17,561 

NOTES

¹     A Special Account is an account in the General Fund where the authorization to spend money from the account is located in an Act other than the Supply Act.

²    The Projected Spending Authority Available represents the cash and temporary investments projected to be available at the end of the fiscal year. 

SPECIAL ACCOUNT¹

$000

SOUTH MORESBY FOREST REPLACEMENT

This account was established by the South Moresby Implementation Act in 1988.  The purpose of this 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.  This account may receive contributions from the Consolidated Revenue Fund, the federal government and accrued interest.

No financing transactions are provided for under this account.

Estimates
2002/03

Estimates
2003/04

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR

24,702 

24,536 

OPERATING TRANSACTIONS

Revenue

404 

711 

Expense

(3,828)

(3,000)

Net Revenue (Expense)

(3,424)

(2,289)

Difference Between 2002/03 Estimates and Projected Actual Net Revenue (Expense)

3,258 

Return to the General Fund

FINANCING TRANSACTIONS

Loans, Investments and Capital Acquisitions

Receipts

— 

— 

Disbursements - Capital

— 

— 

Disbursements - Other

— 

— 

Net Cash Source (Requirement)

— 

— 

Difference Between 2002/03 Estimates and Projected Actual Net Cash Source (Requirement)

Return to the General Fund

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR²

24,536 

22,247 

NOTES

¹     A Special Account is an account in the General Fund where the authorization to spend money from the account is located in an Act other than the Supply Act.

²    The Projected Spending Authority Available represents the cash and temporary investments projected to be available at the end of the fiscal year.