the Forest Investment Account
The Forest Investment Account (FIA) is a new provincial government mechanism for promoting sustainable forest management in British Columbia. It is founded upon a Vote of the Legislature, authorizing the Minister of Forests to provide funding for certain forest management activities. Specific amounts have been dedicated to program elements at the provincial level, other amounts have been allocated for disbursement to tree farm licence holders and certain tenure holders in each timber supply area.
The purpose of this website is to provide a general overview of the FIA, provide information on land-base guidelines and standards, and to link with the specific program sites. The website will be updated from time to time so that it remains an accurate portrayal of the FIA policies and processes.
Across the sweep of provincial and local program elements, the objectives of FIA expenditures include:
To accomplish these objectives, the Legislature has approved the following program expenditures in 2002-03:
In all cases, there is no provision for carrying unspent funds into the following fiscal year. The amount available to the FIA in 2003-04 will be decided by vote of the Legislature in early 2003.
Within the context of the Legislatures voted appropriation, the Minister of Forests has decision-making authority in respect of FIA parameters. The Deputy Minister of Forests has convened, and will chair, a Forest Investment Council (Figure 1.0) that will periodically review and make recommendations on all FIA programs. The Council will include the Deputy Ministers of Ministry of Sustainable Resource Management (MSRM) and Ministry of Water Land Air Protection (MWLAP), three licensee representatives, and one representative from the forest research and technology sector.
The Council will receive progress reports and audit results from the private-sector administrators described below, and will be responsible for determining whether guidance or restrictions are necessary to ensure that investment choices provide the greatest contribution to sustainable forest management. Council members may recommend changes to future funding allocations, eligibility criteria and program expectations.
An advisory board has been struck to periodically make recommendations on the Product Development and the International Marketing Programs. This board is chaired by the Assistant Deputy Minister, Policy and Economics Division, Ministry of Forests.
A second advisory board has been struck to periodically make recommendations on the Research Program. This board is chaired by the Chief Forester, Ministry of Forests.
A Secretary to the Forest Investment Council will be responsible for managing the Provinces contracts with the private-sector program administrators, maintaining a list of activities that are eligible for LBIP funding, and providing guidance to tenure holders from time to time. Two Ministry of Forests staff members will provide part-time assistance to the Secretary, the Council, and the program administrators.
Staff in the Ministry of Forests, with assistance and input from staff in MSRM and MWLAP, are responsible for establishing FIA objectives and establishing delivery standards. Having established the operating criteria for FIA, government staff will have no direct role in setting activity priorities, approving LBIP projects, verifying fieldwork, or certifying project completion.
Administration of most FIA activities will be provided by private-sector firms rather than by government staff. PricewaterhouseCoopers LLP (hereinafter referred to as PwC) will provide day-to-day administration for the Land Base Investment Program, and Forintek Canada Corp. will do the same for the Research, Product Development, and International Marketing Programs.
PwC and Forintek will accept investment schedule proposals and confirm that they constitute an optimum mix of expenditures to promote sustainable forest management. PwC and Forintek will ensure that each proposed activity is eligible for FIA funding, provide funds to successful proponents, and track project delivery. They will also be responsible for performance and financial auditing. Each will be accountable to government, and will be subject to an annual audit by the Office of the Auditor General.