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July 21–27, 2009 Business in Vancouver COMMENT 35FOREST VIEWPETER WOODBRIDGE a catch. Canadian mills have agreement. surviving firms in Canada to invest the money in capital Strategic investors may are likely to emerge stronger Government hits the mark with projects for energy effi ciency be left wondering if interven- and more profi table. It makes or to enhance their environ- tion is the correct policy. An- no sense to lose that capacity forestry green transformation lifeline mental performance. ticipating an eventual end to because of a temporarily very Still, that’s good news for the current global recession, unlevel playing fi eld created – a lot of B.C.’s pulp mills. Cur- they question if these meas- albeit inadvertently – by the hen it comes to govern- almost every playing field Used for energy produc- rently, they’re on the ropes ures will leave the sector fi - U.S.Wment intervention into throughout the global econ- tion, this is good business. reeling from sucker punches Third, many provinces The forest industry’s private-sector markets, there omy. Global energy prices have of the U.S. subsidy, low pulp define themselves as being have been some howlers over The justification, of turned conventional pulp- prices, shortages of wood long-term players in the tree-participation in the the years. course, is that the global im- makers into green energy chips (because of sawmill growing business – aiming Massive subsidies by B.C.’s pacts otherwise might ...

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• Publié par: Ficir
• Nombre de lectures: 14
• Langue: English

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July 21–27, 2009Business in Vancouver

COMMENT35

FOREST VIEW PETER WOODBRIDGE a catch. Canadian mills haveagreement. survivingfirms in Canada to invest the money in capitalStrategic investors mayare likely to emerge stronger Government hits the mark with projects for energy efficiencybe leſt wondering if interven-and more profitable. It makes or to enhance their environ-tion is the correct policy. An-no sense to lose that capacity forestry green transformation lifeline mental performance.ticipating an eventual end tobecause of a temporarily very Still, that’s good news forthe current global recession,unlevel playing field created – a lot of B.C.’s pulp mills. Cur-they question if these meas-albeit inadvertently – by the hen it comes to govern-almost every playing fieldUsed for energy produc-rently, they’re on the ropesures will leave the sector fi-U.S. W ment intervention intothroughout the global econ-tion, this is good business.reeling from sucker punchesThird, many provinces private-sector markets, thereomy. Globalenergy prices haveof the U.S. subsidy, low pulp The forest industry’s define themselves as being have been some howlers overT heju st i f ic at ion,of turnedconventional pulp-prices, shortages of woodlong-term players in the tree- the years.course, is that the global im-makers into green energychips (because of sawmill participation in the growing business – aiming Massive subsidies by B.C.’spacts otherwise might beproducers – creating low-car-closures) and a high-valuedto continually attract pri- formerNDPgovernment tomuch worse.bon electricity supplied intoCanadian dollar. green-energy-generating vate-sector capital into forest- uneconomic pulp mills suchOne U.S. howler hasthe grid. That’s legitimate.e fund is creating rippleproducts manufacturing. e asSkeena Celluloseeffect distortions of its own.from a federal taxe U.S. subsidy isn’t, and itsquick- emerged business is supported Canadian government sees ly spring to mind. Recentcredit for alternative fuels in-massive size threatens to putOnly operating mills are eli-itself in many roles – among intervention, however, is be-tended for highway vehicles.Canadian and other globalgible (Skeena is closed and by sound commercial them market access and trade ing widely heralded by theAmerican pulp and paperpulp producers out of busi-doesn’t benefit). Some typesequity. private sector.mills discovered they wouldness. ofpulp mills produce very lit- fundamentals The art and science of Investors, understandably,become eligible for the creditThe U.S. tax loophole istle black liquor. Industry ana-government intervention are may be confused.if they added some diesel toexpected to be closed by thelysts are concerned, too, thatnancially weaker and moreskills that have been honed ey shouldn’t be. It’s allthe “black liquor” producedend of the year. In the mean-the fund benefits efficient anddebilitated or in better shapeover many centuries of eco- about timing and keepingby their pulp mills. A blacktime, in order to help forestallinefficient mills alike.as a global competitor.nomic activity, globally. Fre- a more-or-less level playingliquor bonanza has resulted –the economic devastation be-Even so, the CanadianThere isn’t a quick an-quently, there’s more “art” field for the majority of indus-worth an estimated US$8 bil-ing wrought upon Canadiangovernment seems to haveswer. involvedthan good science. try participants.lion to U.S. pulp producers.pulp mills, the Canadian gov-achieved the correct balance.ree observations standGovernments often get it In the United States, itBlack liquor is not really aernment announced a $1 bil-Bureaucrats have used theirout. First, the forest industry’swrong. It may be too late for seems as though bailoutproduct. It’s manufactured aslion Pulp and Paper Greencalculators (not leaving tooparticipation in the green-idled mills, such as Skeena, money and subsidies are be-a normal part of the chemicalTransformation Fund.much money on the table)It’s abusi- toenerg y-generatingbenefit. But, by master- ing doled out for almost everypulp-making process. Abouttime-limited and capped pro-and various provincial min-ness is supported by soundminding the fund, this time, economic activity in need.half of the wood is dissolvedgram.– long-term and sustainablegovernment got it right.isters – including B.C.’s Forest• Setting aside the currentlyinto solution, leaving behindUnder the fund, CanadianMinisterPat Bell– commercial fundamentals.– appear to rather awkward philosoph-virtually pure cellulose that ispulp mills are now gettinghave finessed the art of tradeSecond, most governmentPeter Woodbridge (www. ical position that the U.S.bleached and dried, becom-$0.16 for every litre of blackbrinksmanship – just sneak-macro-policies in Canada arewoodbridgeassociates.com) claims to be the bastion ofing the white pulp sent toliquor they use. It almost,ing under the wire that wouldforcing the industry towardis president of Woodbridge free markets and championmarket. e remaining blackbut not quite, neutralizes thetrigger American retaliatoryglobal competitiveness underAssociates Inc. His column of global competition, theseliquor solution is burned tomarket distorting effects ofaction to the fund under theconditions of free trade.appears monthly inBusiness actions have badly skewedrecover process chemicals.the U.S. subsidy – but there’sterms of the soſtwood lumberSimply put, that meansin Vancouver.

WH B O ARE C BC’S ’ M s OST IN T FLUEN O TIAL BU P SINESS 2 PEOPL 0 E?

Jim Pattison Chairman, CEO, Jim Pattison Group

Pat Jacobsen Former CEO, TransLink

Sue Paish CEO, Pharmasave

Brandt Louie President & CEO, HY Louie Co. Ltd.

John Furlong CEO, VANOC

Over the past 20 years, Business in Vancouver has chronicled the stories of countless members of the Lower Mainland and British Columbia business communities who have exerted influence in their respective fields and in the wider business world.

We are hoping you will select or suggest BC’s 20 most influential business people of the past 20 years so that we may profile them in our th 20 anniversary commemorative magazine.

It is easy to choose. Visit www.biv.com/Top20 beforeAugust 15.We will provide you with some suggestions and an opportunity to add your own. All entries will be anonymous unless you choose to enter our draw for 2 free tickets to our Gala birthday event in October 2009.

Vote online at www.biv.com/Top20.

For more information about BIV’s 20th anniversary please contact Colleen [e-mail]