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History of the SMFRA

On July 12, 1988 the Government of Canada and the Province of British Columbia jointly signed a Memorandum of Agreement, which declared their intent to create the Gwaii Haanas National Park Reserve, and Marine Park Reserve in the southern region of Moresby Islands, in the Queen Charlotte Islands/Haida Gwaii.

The creation of the Park resulted in the removal of 147 00 hectares (ha.) of land from the provincial land base. 33 000 ha. of these comprised commercial forest land, producing 300 000 cubic metres of timber harvest per year. An estimated 90 to 100 full time person years of forest-based employment were lost following establishment of Gwaii Haanas.

The Memorandum of Agreement that created the reserve required the signatories to direct monies towards capitol and operating expenses of Gwaii Haanas, as well as areas including tourism infrastructure, local economic development, compensation to Parties adversely affected by the reserve's creation, and the enhancement of timber supply and restoration of employment. Of the total $126 million contributed under the Memorandum of Agreement, the federal and provincial governments each contributed $12 million dollars to the South Moresby Forest Replacement Account. 

The principal objective of the Account was to fund projects that would, over time, help offset reductions in the timber supply, and losses in forest-based employment resulting from the creation of the Reserve, at least until the full economic benefits of the Reserve were realized. Funds were to be incremental to regular government funding. In other words, the SMFRA was designed to augment, rather than replace, existing forestry programs. Since 1990, all projects funded by the SMFRA must be carried out on, or developed specifically for, the Queen Charlotte Islands/Haida Gwaii.

In 1990, the decision was made to manage the SMFRA as a perpetual fund: rather than spend all the monies available in the Account over a few years, each year's expenditures would be based on the interest accrued on the Account the previous year. 

South Moresby Forest Replacement Account (SMFRA) web site
 

Links of Interest

• Gwaii Haanas National Park Reserve and Marine Park Reserve
   
• South Moresby Implementation Act

The SMFRA is a joint initiative of the Government of Canada and
the Province of British Columbia.