Goals, Objectives, Strategies and Results

Core Business Areas	Goal 1: Sustainable Forest and Range Resources	Goal 2: Sustainable Socio-Economic Benefits from Forest and Range Resources.	Goal 3: Highly Effective, Innovative and Responsive Organization*
Protection Against Fire and Pests	2 indicators
Forest Stewardship	1 indicator
Compliance and Enforcement	1 indicator
Forest Investment
Range Stewardship and Grazing		1 indicator
Pricing and Selling Timber		5 indicators
BC Timber Sales		1 indicator
Executive and Support Services			1 indicator

Performance Indicator	Benchmark	2007/08 Projection	2008/09 Projection	2009/10 Projection
Per cent of wildfire contained at less than four hectares (on a five-year rolling average).	92%	92%	92%	92%

Unit	Purpose of Treatment
Aggressive Emergency Management Unit	Beetle population suppression
Special Management Unit	Beetle spread control
Containment Emergency Management Unit	Targeted beetle spread control and timber recovery
Salvage Zone	Timber recovery

In addition to beetle suppression objectives across the province, the Ministry is engaged with the Province of Alberta and the federal government in efforts to limit the eastern spread of the B.C. outbreak. Mountain pine beetle population projections by scientists at the Canadian Forest Service show there is a significant potential for the beetle to spread into the vast jack pine forests that are common throughout the entire country. Augmenting the Aggressive Emergency Management Units, certain areas along the Alberta-B.C. border have been designated as Special Management Units to indicate where treatment efforts are being made solely for limiting spread vs. population suppression. Minimum treatment targets are lower in these units (50 to 100 per cent), primarily because they are usually more difficult to access. Spread control priorities are highest closest to the Alberta-B.C. border.

The performance indicator for the success of the treatments each year is represented as a percentage of the sum of the area designated as Aggressive Emergency Management Units that met the 80 to 100 per cent treatment target divided by the total Aggressive Emergency Management Unit area. The success of the spread control efforts within the Special Management Units is calculated in the same manner.

Aggressive treatment is achieved by first conducting detailed aerial and ground detection to map the spread of the beetle and to locate sites that present an opportunity to stop or reduce the rate of spread of the beetle. New infestations are managed through targeted conventional and small-block harvesting, felling and burning, use of pheromone baits, or other methods.

Other areas represented on the Emergency Bark Beetle Management Area map are assigned less intensive treatment targets depending on the level of beetle infestation activity and distribution. These areas offer no opportunities to suppress the populations and are called Containment Emergency Management Units (or Holding Beetle Management Units). The rate of beetle spread is reduced somewhat by conventional, targeted harvesting.

Finally, where the beetle has killed extensive volumes of timber and where there is no reduction in rate of spread possible through harvesting; these areas are included in the Salvage Zone. Harvesting efforts in this zone have no impact on the beetle population and the objective of harvesting here is to recover as much timber value as possible.

The estimated size of the Aggressive Emergency Management Units, as currently represented in the Emergency Bark Beetle Management Area map of October 2006, is 11,412,681 hectares.

The estimated size of the Special Management Units is currently 435,828 hectares.

Both of these areas will change annually with the changing assignment of strategies based on the most recent assessment of the capacity for achieving treatment targets.

More information on the extent of the mountain pine beetle and the Government's plans, can be found at: http://www.for.gov.bc.ca/hfp/mountain_pine_beetle/.

Exemplary forest stewardship is the result of the creation of a stewardship culture among professionals and managers involved in forest management. It is identified by integrated resource management, maintaining ecosystem resilience, ensuring all productive areas are reforested and where possible enhancing productivity.

Key results needed to achieve this objective include:

• An effective and efficient policy framework coordinated and integrated across government agencies, with First Nations, industry, communities, non-government organizations and the general public ensures that all components are complete and effectively working together to achieve exemplary stewardship and sustainable forest management in B.C. Risks to achieving an effective policy framework are managed by the Ministry by working with professional associations, regular discussion with the public and effective consultation with First Nations.
• Timely and informed forest resource management decisions depend on up-to-date and accurate forest resource information and coordinated and cost-effective analysis. This includes: quality inventory and data management; operational monitoring of forest practices and the outcomes of licensee strategies; maintenance of long-term environmental monitoring studies; testing of tree-seed parent characteristics; analyses of greenhouse gas emissions and carbon sequestrations; measuring site productivity and predicting the growth and yield resulting from specific activities.
• Best management practices that restore, maintain or enhance forest resources are achieved through improving gene and seed resources, growing improved seedlings, applying natural disturbance ecology principles, reforestation and other silviculture activities. Many of these activities are undertaken collaboratively using multi-stakeholder committees and inter-agency partnerships. The level of funding available largely determines the extent that forest resources can be restored or enhanced. Specific funding is allocated from the Forest Stand Management Fund, the South Moresby Forest Replacement Account, the Forest Investment Account, the Forests for Tomorrow Program, and the Mountain Pine Beetle Action Plan.

1. Continue to collaboratively evaluate, improve and manage the forest policy framework.
2. Adapt forest stewardship policy and practices to changing social, economic and environmental conditions (e.g., climate change, energy sector development).
3. Apply up-to-date and accurate forest resource information and best research and analysis to inform decision makers, clients and the public.
4. Develop and implement programs to restore, maintain or enhance forest resource values (e.g., the Future Forests Ecosystem Initiative).

The ratio of area reforested to area harvested or lost to fire and pest is a high-level indicator of stewardship and restoration of forest resources and ultimately, of sustainable forest productivity. A ratio of 1.0 indicates areas being reforested are in balance with those being harvested or lost to fire and pests. A ratio of less than 1.0 reflects a trend towards increased Not Sufficiently Restocked area with more productive area being harvested or lost to fire and pest than reforested.

The ratio combines all Crown land areas to be reforested. This includes:

• areas under licensee basic silviculture obligations, which track close to 1.0 as a steady state, indicating industry is meeting their basic silviculture obligations; and
• areas where there is no basic silviculture obligation including those resulting from unsalvageable fire and pest losses, and areas of backlog reforestation. These areas are addressed as funding is available through the Forest Investment Account and the Forests for Tomorrow program.

Methodology

The methodology used to calculate targets for this measure in 2007/08 has been updated. This measure now uses net area harvested instead of gross area harvested. Net area does not include roads and landings permanently removed from the productive landbase (as allowed under the Forest and Range Practices Act) or uncut reserves established for wildlife or visual objectives (as required under the Forest and Range Practices Act). This change is being made to more accurately reflect the area being actively managed and to be consistent with the silviculture indicator used in the Ministry's State of the Forests Report. Figure 2 compares the ratio using both methodologies, showing that the trend is consistent although the new ratio is higher. The retrospective data has been updated using the new methodology.

Figure 2: Comparison of old and new ratio methodology

The measure is calculated using the following definitions and data:

• area reforested includes planting or natural regeneration;
• area harvested is the net area harvested, excluding roads, landings, and reserves; and
• area lost to fire and pests is unsalvageable and offers a viable reforestation opportunity. An area is not tallied as lost to fire and pest until it has been surveyed and deemed to present a viable reforestation opportunity.

The ratio uses data from the past five years, submitted by licensees and the Ministry, to the Reporting Silviculture Updates and Landstatus Tracking System. Data is submitted, according to legislated requirements, before June 1 each year for the previous year ending March 31. Because the Annual Service Plan Report is published in June of each year, the data available to report is almost one year behind. The detailed information used to calculate the ratio annually is available from Table 1, Changes in the Not Satisfactorily Restocked Crown Land, posted under the Annual Service Plan Report, Supplementary Financial and Statistical Information, at: http://www.for.gov.bc.ca/mof/annualreports.htm.

Projections

The largest component of the indicator is projected to remain close to 1.0, reflecting that licensees will continue to meet their legal basic silviculture obligations. Although harvested areas are expected to temporarily increase through salvage logging of mountain pine beetle-impacted sites, it is expected with the low price of lumber, the new Softwood Lumber Agreement and the reduction in U.S. housing starts, that harvesting and reforestation rates for licensees will remain relatively constant over the next three years.

The area impacted by fire and pest is expected to continue to increase. Silviculture surveys on productive forest areas within the timber harvesting landbase are expected to identify an additional 10,000 hectares a year to be reforested. Planting of 10,000 hectares is expected in 2007/08, and 5,000 hectares in 2008/09. These activities are mitigating the further dropping of the ratio during the mountain pine beetle epidemic, and are expected to begin improving the ratio by 2009/10, subject to ongoing funding.

	*Based on a five-year rolling average.

The implementation of a compliance and enforcement regime for Forest and Range Practices Act and a compliance and enforcement regime for pricing and revenue will protect the Province's forest and range resources and ensure British Columbians receive fair value from the use of those resources, by upholding the law.

Risks to achieving this objective are mitigated by having professional accountability for forest practices, a risk-based inspection regime, well-trained staff, effective legal counsel, and by working in partnership with other law enforcement agencies.

1. Implement a compliance and enforcement regime for Forest and Range Practices Act and a compliance and enforcement regime for pricing and revenue.
2. Effective compliance and enforcement staff training and support.
3. Apply quality assurance principles and procedures to verify government's (and in particular BC Timber Sales') compliance with its own statutory obligations, and to verify Ministry compliance with its compliance and enforcement policies and procedures and the law.
4. Utilize principle of continuous improvement on an ongoing basis.
5. Balance forest practice compliance and enforcement requirements with revenue/pricing compliance and enforcement requirements.

The per cent of forest and range operators' compliance: This is a measure of how well forest and range operators are complying with the statutory requirements that regulate forest practices. This is an indicator of goal achievement, rather than the objective of the Ministry in promoting and measuring compliance and enforcing obligations. The management decisions of forest and range operators have a key influence on the desired outcome of sustainable forest resources.

Data is from the Ministry's Compliance Information Management System. The rate of compliance has consistently been greater than of 90 per cent, the 2001/02 baseline, for the past nine years.

The high-level objective of the Forest Investment Account is to assist government in developing a globally recognized, sustainably managed forest industry.

Fostering sustainable forest management is pursued through all Forest Investment Account programs. Investment dollars are directed to incremental activities on public land in such areas as research and enhanced forestry. Risks associated with achieving Forest Investment Account objectives and demonstrating value-for-money are effectively mitigated through third-party administration and audit agreements, program boards and councils, technical standards and oversight provided by the Forest Investment Council.

1. Develop and implement sound business practices incorporating strong financial controls, a performance management framework, and a monitoring, audit and evaluation program.
2. The advisory body for each Forest Investment program will provide input towards determining direction and guidance for recipients of program funding.

Assessing Performance:

Achievement of Forest Investment Account objectives and strategies is accomplished through program activities carried out by proponents under the coordination of third-party administrators. Assessment of outcomes and outputs is captured through annual reports generated by the third-party administrators. These reports can be found at:
http://www.fialicensees.com
http://www.for.gov.bc.ca/hcp/fia/small_tenures.htm
http://www.cortex.ca/fia-fsp/dow-pub.html
and
http://www.for.gov.bc.ca/hti/publications/misc/projectreports.htm.

Goal 2:

Sustainable Socio-Economic Benefits from Forest and Range Resources.

Forest and range resources are managed for social and economic benefits for all British Columbians. These benefits include a healthy economy resulting from competitive forest and ranching industries, which in turn generate fair public revenue from the use of Crown forests. Sustainability of these benefits also relies on a sustainable, safe and innovative workforce. Balancing the benefits for the public, First Nations, communities, industry, forest workers and other stakeholders is a complex function of government. While some components of this goal are within the control of the Ministry, other aspects are subject to external influences such as international markets, trade agreements, the level of investment by forest companies, treaty negotiations with First Nations, and forest fire and pest epidemic impacts on the economies of forest-based communities.

In 2007/08, this objective focuses on protecting Crown range and optimizing the use of Crown range resources through administration of rights through the Range Act, agreements under the Forest and Range Practices Act, and the Land Act. With the re-establishment of the Range Branch in 2006/07 and the reallocation of resources to the range program, the Ministry is now poised to fully support expansion of range use to meet government objectives of increasing the size of the beef industry in British Columbia. Funding is allocated to initiate an ecosystem restoration program through pilot projects in the Kootenays and the Cariboo. Funding under the natural range envelope of the Mountain Pine Beetle Action Plan is being used to mitigate the impacts of the loss of natural range barriers and maintain fences impacted by timber and or salvage harvesting. Seeding and other range improvements are components of the Ministry's plans to support the ranching sector.

Increasing stakeholder and public pressures on range resources for multiple uses is a risk to achieving this objective. Working with other agencies on land-use planning, evaluating current legislation and policy to assess effectiveness in protecting range resource values, education, extension, monitoring, and compliance and enforcement activities will facilitate management of this risk.

1. Evaluate rangeland health and effectiveness of range management practices.
2. Restore rangeland ecosystems degraded by forest ingrowth, forest encroachment through a grasslands ecosystem restoration initiative.
3. Restore rangeland ecosystems degraded by invasive plants through development of an invasive plant strategy in cooperation with the Ministry of Agriculture and Lands.
4. Increase awareness among stakeholders of rangeland management for multiple uses.
5. Initiate an inventory of range resources and evaluate forage supply in priority areas.
6. Improve efficiency and effectiveness of range tenure administration.

Per cent of available Crown range under a form of agreement: This measures the effectiveness of the Ministry's allocation and administration of range available for grazing or hay cutting and is based upon possible and actual range agreement areas. Data are collected from the current records of forest district offices.

A competitive business climate that attracts capital investment and allows the forest sector to maintain and expand its role as the province's leading goods export industry is critical to the well being of communities and provincial revenue.

The Ministry of Forests and Range, as the manager of the provincial Crown forest and regulator, can have an impact on the competitiveness of the forest industry. In addition to the role of land owner and regulator, many government policies (federal, provincial and municipal) such as building and maintaining a strong infrastructure, providing competitive tax regimes, world-leading environmental regulation and excellent education and training all influence the forest sector's ability to grow and compete internationally.

Three areas in which the Ministry can assist in providing conditions that foster a competitive forest sector are: regulation, market access and encouraging innovation.

1. Regulation. Ministry of Forests and Range policies and actions can directly affect the cost of logs to mills, which is a major determinant in the sector's ability to compete. The implementation of market-based pricing ensures the stumpage system is responsive to market conditions and reflects the value of the resource. The movement to a results-based forest regulation has allowed for efficiencies in forest management. The Ministry will also be diligent in ensuring new regulations, policies and their implementation do not unnecessarily reduce competitiveness.
2. Market Access. Maintaining and building access to markets is key to keeping the forest sector competitive. The 2006 Softwood Lumber Agreement will help provide certainty of access to B.C.'s largest lumber market, the United States. The Ministry will work with the federal government to make sure that the operation of the agreement and changes arising from further negotiations and discussions called for in the agreement assist in providing access to the U.S. market. The Ministry will also continue to work with Forestry Innovation Investment Ltd. on market access and acceptance issues to build new markets for B.C. forest products.
3. Innovation. While difficult to measure, innovation is key to long-term competitiveness. The Ministry of Forests and Range will work cooperatively with other agencies and the forest industry to develop a shared vision for growth in value-added products, including encouraging a greater synergy between primary and secondary sectors, and supporting innovation through investing in research, development and product development. Finally, innovative thinking will be encouraged across all Ministry business areas in order to find new efficient ways to deliver our programs, provide services to clients, and address future trends in climate change.

The Ministry is reviewing approaches to comparing annual delivered wood costs to periodically assess the effectiveness of its policies. Measures of market access are reviewed semi-annually using information external to the Ministry. A summary of these are included with the economic trends in the strategic context section.

The Ministry has a legislative responsibility to assert the financial interests of the Government in its forest and range resources in a systematic and equitable manner. The Ministry continually reviews and modifies revenue policies and procedures to ensure that fair value is received.

1. Administer the Coast market-based pricing system, which was implemented on February 29, 2004.
2. Administer the Interior market-based pricing system, which was implemented on July 1, 2006.
3. Administer changes to the Interior log grades, which were implemented on April 1, 2006.
4. Administer Ministry timber pricing components as impacted by the Softwood Lumber Agreement between Canada and the U.S., which came into effect on October 12, 2006.

Crown forest and range gross revenue represents the value that the public receives from use of its forest and range resources. The total amount of revenue realized by the Ministry and collected by the Government of British Columbia during each fiscal year includes stumpage and other revenues from timber tenures, B.C. Timber Sales, range use and other Ministry non-forestry revenues. The Softwood Lumber Agreement came into effect October 12, 2006 and gross revenue forecasts from this date forward include the "Softwood Lumber Border Tax".

Forest tenures are used to allocate, manage and monitor forest resource opportunities to meet social, economic and other public forest policy objectives. Allowable annual cut in area-based Tree Farm Licences, Woodlot Licences and Community Forest Agreements is available directly to these license holders. For allowable annual cut apportioned in Timber Supply Areas, a fair and effective tenure system is needed to ensure that volume is made available to clients.

Achieving this objective may be impacted by delays in concluding First Nations consultation processes. The Ministry addresses this risk throughout the First Nations Forest Strategy, which has an objective to increase First Nations participation in the forest sector, and includes negotiation of Forest and Range Opportunities which document an agreed-upon process for consultation and accommodation on forest management decisions.

The Ministry is monitoring and managing potential delays in reallocating the volume taken back from forest licensees under the Forestry Revitalization Act and from the increase in workload needed to administer tenures for the additional volume approved for cutting as part of the mountain pine beetle salvage operations.

1. Continue to implement the Forestry Revitalization Act including timber reallocation.
2. Effectively issue and administer an increased number of licences to address key initiatives such as harvesting of mountain pine beetle and other damaged timber, timber reallocation to First Nations, Woodlot Licences, Community Forestry Agreements and BC Timber Sales programs, and the transferring of harvest rights.
3. Continue to incorporate continuous improvement principles to ensure tenure administration is as streamlined as possible.
4. Develop a strategy to address anticipated increased client services demands from new tenure holders.

Per cent of Timber Supply Area and Tree Farm Licence allowable annual cut under a form of tenure: This indicator is intended to report on the diligence of the Crown in optimizing provincial allowable annual cut under a form of a tenure agreement to make it available for harvesting. It includes allowable annual cut apportioned under Timber Supply Areas and allowable annual cut from Tree Farm Licences, but does not include allowable annual cut from Woodlot Licences, Community Forest Agreements or the BC Timber Sales Program.

Allowable annual cut in Timber Supply Areas and Tree Farm Licences accounts for the majority of the provincial allowable annual cut. Allowable annual cut under Tree Farm Licences is usually considered fully committed and available for harvesting, in the same way as allowable annual cut under Woodlot Licences and Community Forest Agreements. In 2007/08, however, Tree Farm Licences are included in this measure to reflect the uncommitted allowable annual cut within Tree Farm Licences that has resulted from timber revitalization and that will be redistributed to First Nations and other new small tenures. BC Timber Sales is accountable for and tracks the issuing of tenure agreements for the allowable annual cut apportioned to their program (see the BC Timber Sales indicator on page 46).

The projections reflect:

• the expectation that by 2009/10 the reallocation of the volume taken back from forest licensees (including Tree Farm Licences) under the Forestry Revitalization Act will be completed; and
• the increased workload over the next three years needed to administer tenures for the additional volume approved for cutting as part of the mountain pine beetle salvage operations.

This objective reflects the Ministry's intent to recover the greatest value from dead stands impacted by mountain pine beetle through ensuring that market access and manufacturing problems are not the limiting factor to a successful long-term salvage program, and to encourage long-term economic sustainability for communities affected.

This objective is supported by the development and implementation of strategic regional socio-economic adjustment plans for forest-dependent communities within mountain pine beetle-affected areas. Implementation of this objective is achieved through the coordinated efforts of the Ministry of Forests and Range and other ministries guided by Community Diversification and Stability actions under the Mountain Pine Beetle Action Plan.

1. Solve immediate manufacturing problems as quickly as possible to improve the profitability of the dead dry wood.
2. Develop new products and markets for the material.
3. Support development of socio-economic adjustment planning including exploring possibilities for economic diversification, economic pre-feasibility analysis on opportunities, investment recruitment, business retention, community marketing and general economic research.

The best measure of this objective would be one that relates the economic impact of the mountain pine beetle to a region and/or a community, and then shows an economic recovery attributable to socio-economic adjustment planning. This would measure the effectiveness of government in supporting communities impacted by the mountain pine beetle epidemic. Given the many different approaches to measuring socio-economic impacts, and the potential difficulties of attributing planning actions on the economic data, the Ministry is still exploring the best way to measure these impacts. In the short term, a target to measure the development of the socio-economic adjustment plans was introduced in 2006/07 as shown below.

Socio-economic plans are expected to be completed by 2009/10 to cover all impacted communities. The number of impacted local governments (estimated at 34) and First Nations communities (estimated at 70) anticipated to be covered under these plans will change as the epidemic unfolds and therefore the projections will continue to evolve.

The intent of this objective is to provide the necessary infrastructure to access timber, range, communities, recreation, and other resource values while minimizing environmental impacts. Routine activities that contribute to achieving this objective include carrying out maintenance on Forest Service roads in conformance with legislation and policies, replacing deteriorated priority non-industrial Forest Service road bridges, and deactivating Forest Service roads no longer required.

Achieving this objective is largely influenced by the level of funding available to replace deteriorating bridges and undertake emergency and routine repairs. These high-cost activities are offset by the benefits of maintaining industrial and community access important to the forest economy and British Columbians. In addition, when not addressed in the short term, the costs of mitigating environmental damage and re-establishing access are higher over time. The Ministry received additional funding in 2004/05 and 2005/06 to address bridge replacement and this mitigated aspects of this risk in the immediate term. However, continued deterioration of Forest Service road non-industrial bridges over the long term will continue to impact the Ministry's performance in this area. Regardless, programs, policy and legislation will continue to be reviewed in 2007/08 for changes that will mitigate these impacts and/or reduce Ministry costs and risks.

1. Develop, in cooperation with the Ministry of Energy, Mines and Petroleum Resources, legislation to consolidate road construction, road use, maintenance and deactivation standards between all resource users and agencies.
2. Support and participate in BC Forest Safety Council's "On the Road Safety and Action Plan" to encourage safe drivers, safe trucks, safe resource roads and safe highways in the Forest Sector.
3. Rationalize the provincial road network (Forest Service roads and public roads/highways) between the Ministry of Forests and Range and the Ministry of Transportation.
4. Balance the industrial, commercial and public use of the forest road network in a cost-effective manner reflecting the level of use — this may include deactivation and transfer to other agencies, organizations and ministries.
5. Assess and, where funding is available, incorporate the increases to the Forest Service road network resulting from timber re-allocation, wildfire and mountain pine beetle.
6. Improve access infrastructure related in allowable annual cut uplift areas due to the mountain pine beetle infestation.

Per cent of non-industrial (community, recreational and general) use Forest Service road kilometres open for vehicular access: This measure has been slightly reworded for clarity in 2007/08. It is a measure of the reliability of the non-industrial Forest Service road network which serves communities and recreation areas as well as rural residences and commercial operations. This non-industrial network represents approximately 11,790 kilometres (community use 1,360 km, recreation use 3,145 and general use 7,285 km). Kilometres that are open for vehicular access, are those that are not closed for safety or environmental reasons (includes non-industrial bridge removal or closure).

The surface conditions on these roads may vary because the maintenance activities depend on the type of non-industrial use Forest Service road. General use Forest Service roads have only a wilderness level of maintenance which provides for maintenance due to environmental or safety-related issues but does not guarantee motor vehicle access. Community-use and recreation-use Forest Service roads also have a wilderness level of maintenance, but they also have access-related surface and structural maintenance. Industrial-use Forest Service roads are maintained by industrial users under road-use permits, and other industrial-use forest roads are maintained under road permits and special use permits. Roads assigned to BC Timber Sales are excluded. Information is reported by each district.

Declining projections reflect an anticipated increase in kilometres of road that the Ministry is responsible to maintain due to reallocation under the Forestry Revitalization Act. Increased funding will mitigate this downward trend over the next three years.

This objective supports the Ministry's intent to provide leadership, negotiation skills, advice and guidance and overall coordination with respect to forest and range activities in the New Relationship with First Nations. Achieving this objective will support Government's objective to ensure Aboriginal communities share in the economic and social development of B.C. The Ministry of Forests and Range seeks to work on the following strategies in an open, transparent and collaborative approach with First Nations.

1. Consult with First Nations in accordance with the Crown's legal obligations while developing relationships.
2. Negotiate agreements with First Nations:
• the First Nations Forest Strategy offers First Nations access to economic forest and range benefits through Forest and Range Opportunity Agreements. The initial implementation and funding for this program is completing in 2006/07. However, the Ministry will be working with the Ministry of Aboriginal Relations and Reconciliation, under the New Relationship framework, to carry this program forward and to begin replacing existing Forest and Range Agreements that expire in 2006/07; and
• increase First Nations' participation in the forest sector through direct award tenures.
3. Support for priority treaty tables.
4. Support the Minisry of Aboriginal Relations and Reconciliation in the development of the New Relationship.

Total number of Forest and Range Agreements and Forest and Range Opportunity Agreements: These agreements provide a period of stability for forest and range resource development. They include the provision of economic benefits to First Nations in the form of tenure and revenue sharing. The time required to conclude negotiations is variable. Offers to negotiate agreements will be made to all 176 eligible First Nations by the end of fiscal 2006/07. The data is tracked internally to the Ministry.

In 2006/07, agreements signed in previous years will require replacement. The Ministry will be internally tracking the replacement agreements as well as non-Forest and Range Opportunity Agreements.

1	Some agreement offers include more than one First Nation in the offer. The number of eligible First Nations to be offered agreements is 176. Although offers are made to all eligible First Nations, it is anticipated that not all offers will be accepted and agreements signed. A more accurate estimate of agreements expected to be signed cannot be determined.

In 2006, the BC Competition Council presented to the Premier the reports from its Forest Industry Advisory Committees and made a number of recommendations to the Premier, including one regarding delivery models for BC Timber Sales. As a result, a structural review of BC Timber Sales was undertaken to determine how the organization's structure can most effectively support its mandate and to recommend any needed changes to either the BC Timber Sales structure or delivery model.

The completed review confirms the mandate of the BC Timber Sales organization and provides clear direction on what is required for the organization to become more effective and efficient.

The report recommends that BC Timber Sales:

• remain within the Ministry, subject to implementation of several recommendations;
• take the steps required to attain the degree of separation necessary within the Ministry structure to ensure its unique business needs are met;
• immediately review its strategic goals to ensure clarity of intent and hierarchy;
• clarify the linkage between BC Timber Sales data and the Market Pricing System;
• develop an action plan to continue building performance; and
• develop specific performance measures to evaluate the success of these changes.

The recommendations acknowledge the clear expectation of the forest industry that the organization not be diverted from its intent as established in the Forestry Revitalization Plan. The review also recognizes the significant benefits from the strong relationship between BC Timber Sales and the rest of the Ministry, and that this is critical to the Ministry's collective success.

Successful implementation of the recommendations will ensure BC Timber Sales continues to be an innovative organization which takes a results oriented, market based approach at provincial and local levels.

Details of BC Timber Sales' goals, objectives, performance measures and strategies are available in the 2007/08 BC Timber Sales Service Plan available on the Ministry's website at: http://www.for.gov.bc.ca/bcts/.

1. Implement the recommendations of the BC Timber Sales Structural Review.
2. Achieve BC Timber Sales goals and objectives through safe and sound forest management practices.
3. Be high performing with skilled, motivated and proud people.
4. Provide a credible reference point for costs and pricing of timber harvested from public land in B.C.
5. Make available a supply of timber to the forest industry, through open and competitive timber auctions, within the parameters of strategies 2 and 4.
6. Generate net revenue for the province, within the parameters of strategies 2, 4 and 5.

Per cent of total allowable annual cut auctioned by BC Timber Sales is the per cent of the total provincial annual timber volume available that was auctioned by BC Timber Sales during the year. This is a key indicator of the program's success marketing Crown timber to establish market price and capture the value of the asset for the public. As a key component in establishing market pricing in 2002/03, the Government of British Columbia set the objective for 20 per cent of provincial allowable annual cut to be auctioned through BC Timber Sales. The Forestry Revitalization Act was introduced in part to facilitate the increased timber volume required by BC Timber Sales to achieve this objective. The data is from internal tracking and the Ministry's apportionment system.

Goal 3:

Highly effective, innovative and responsive organization.

The third goal of the Ministry is to create a high-performing organization that will support the achievement of all of the Ministry's goals and objectives. This goal is achieved through innovative leadership and management, support to the organization through effective corporate governance, promotion of a diverse, innovative and productive workforce and provision of efficient management functions and client services, and innovative practices in all core businesses.

While achievement of this goal is largely in control of the Ministry of Forests' leadership, it is influenced by government staffing policies; labour relations and the pool of skilled labour available as well as the workplace challenges related to achieving the Ministry's other two goals.

This objective helps to ensure that the Ministry becomes a more effective organization, which is strong, dynamic and adaptable, and focused on achieving its strategic goals.

1. Update and align the Ministry's Road Ahead initiative with government's human resources plan and the Ministry's business needs in order to fully engage employees. Specifically:
• developing a management fundamentals program to include coaching, mentoring, employee performance and other core management skills;
• developing a Ministry recruitment and retention strategy; and
• continuing to build a learning organization by building capacity within the Ministry through education, experience, application of continuous improvement practices and by applying a percentage of the Ministry's budget to create development opportunities for staff.
2. Build corporate processes to develop policy and legislation to maximize business effectiveness.
3. Simplify and realign the performance framework to improve ownership and accountability for performance measures and targets.
4. Strategically partner with other ministries/organizations on shared/corporate issues/initiatives to allow the Forest Service to maximize the use of internal resources.
5. Develop and/or enhance the systems that will most benefit the Ministry and external clients by prioritizing the system requirements against corporate priorities to maximize the use of human and financial resources.
6. Continue to work with legal services and enhance education of staff in best practices to mitigate risk.
7. Improved corporate services support to the organization including:
• increased levels of financial training and implementation of key improvements to financial systems and processes to improve financial management; and
• education of staff in best practices to create a privacy and information access conscious culture and to manage facilities, vehicles and other key assets to ensure the Ministry receives the best value for money and strategically positions the Ministry for the longer term.

Ministry of Forests and Range staff engagement level: This is a new indicator introduced in 2007/08 using data available from the 2006 BC Public Service Agency Work Environment Survey that indicates that the Ministry's current engagement level is 63 per cent. The BC Public Service Agency definition is that employees are engaged when they are satisfied with their job, satisfied with their organization, and committed to the BC Public Service.

To improve the engagement level over the next three years, Ministry leaders will focus on strategies that will support/enhance the building blocks of engagement, which are: empowerment; vision; mission; goals; recognition; pay and benefits; staffing practices; stress and workload; physical environment and tools; teamwork; professional development; and respectful work environment.