Small Business Forest Enterprise Programme (SBFEP)

Most of B.C.’s publicly owned forest lands are logged by medium to large companies with rights granted to them under the Forest Act.  However, the provincial Ministry of Forests manages an area of provincial land for timber production that produces about 13 per cent of the timber cut each year in the province. 

Purpose of the SBFEP

The stated purposes of the SBFEP are to:

·         Demonstrate excellence and leadership in sustainable forest management practices.

·         Provide access to timber.

·         Achieve excellence in business practices.

Under the Programme, government carries out the planning and management for forest lands, but the actual harvesting of the timber, as well as road construction and maintenance, timber cruising and other technical matters, is contracted to private operators.  Thus operators without the expertise or resources to bid on and operate a tenure under the Forest Act can get access to a more limited contract.   

Bidding on Contracts

Under the SBFEP private companies bid on contracts offered by the Ministry of Forests, with most contracts being awarded on the basis of the revenue generated by the bid.  In many cases the government has obtained much more payment from these small scale contracts than from the large scale logging operations (who have not traditionally had to bid on logging rights).  In some cases, however, the Ministry can consider a wider range of social, financial and employment objectives in deciding which bid to take, accepting a lower bid if the province’s goals are met.  The SBFEP has also been used to encourage First Nations involvement in the forest industry. 

The SBFEP opens up not only logging rights to small scale operators, but also provides access to wood for small scale processors.  The major logging companies buy and sell much of their timber in large blocks, or internally.  Although we live in a province with a wealth of forest products, it can be difficult for a small scale operator to buy a single tree or a couple of trees at a fair price.  But the small scale loggers of the SBFEP are more likely to sell small units of timber.  Thus the SBFEP has assisted B.C.’s value-added manufacturers (manufacturers who process wood into higher-value products, rather than merely producing boards, shingles or pulp). 

Dealing with the SBFEP

Although there are some very positive aspects of the SBFEP, the programme’s primary purpose is to cut trees, and it is not uncommon for people concerned about watershed management to come into conflict with the Ministry about logging under the SBFEP.  In addition, the programme’s focus on the highest bidder does not encourage logging that might be more financially more, but ecologically less, expensive. 

Watershed advocates coming up against the SBFEP may want to keep the following in mind:

·         As a government agency, the SBFEP is sensitive to political controversy.  See the Guide Page on Accessing Government for ideas on how to bring political pressure to bear.  In the end, however, the Ministry sees its role as to facilitate logging. 

·         Watershed Advocates have been frustrated by the fact that under the Forest Practices Code government is responsible for both developing and approving SBFEP plans.  While the government is in the process of separating the SBFEP and approval functions, there may continue to be fears that government is less likely to hold itself to a rigorous standard.

·         The SBFEP has experimented with obtaining certification in certain areas and under different schemes.  However, otherwise it has generally not been on the forefront of show-casing environmentally benign logging, probably because of the political desire of the Programme to function competitively, rather than as a government agency.    

Related Guide Pages:

·         Forest Act

·         Forest Practices Code

For more information about the Small Business Forest Enterprise Programme:

·         The website of the Forest Enterprise Branch of the Ministry of Forests, and especially the brochure on the Small Business Enterprise Programme.

·         Elements of a Revised Small Business Forest Enterprise Programme – A position paper by the B.C. Coalition for Value Added Wood Products, on the B.C. Coalition for Sustainable Forest Solutions website.