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HomeMy WebLinkAbout2004-10-18 Workshop Agenda and ReportsCorporation of the District of Maple Ridge COUNCIL WORKSHOP A GENDA October 18, 2004 9:00 a.m. Blaney Room, t t Floor, Municipal Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to srafffor more information or clarfication. REMINDERS October 18 Closed Council 10:00 a.m. Committee of the Whole 1:00p.m. October 19 Public Hearing, The ACT 7:00 p.m. ADOPTION OF THE A GENDA MINUTES - September 27, 2004 and October 4, 2004 PRESENTATIONS AT THE REQUEST OF COUNCIL UNFINISHED AND NEW BUSINESS 4.1 Maple Ridge-Pitt Meadows Tourism Society Update 4.2 2005 Meeting Schedule for Council, Committee of the Whole, Public Hearing and Council Workshop Staff report dated September 27, 2004 providing a draft meeting schedule for 2005. Council Workshop October 18, 2004 Page 2 of 3 4.3 Financial Sustainability Plan - Policy Guidelines Staff report dated September 22, 2004 recommending that Financial Sustainability Policies be approved. 5. CORRESPONDENCE The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: Acknowledge receipt of correspondence and advise that no further action will be taken. Direct staff to prepare a report and recommendation regarding the subject matter. Forward the correspondence to a regular Council meeting for further discussion. Once direction is given the appropriate response will be sent. 5.1 Council of Tourism Associations of British Columbia Letter dated October 4, 2004 from Michael Campbell, Chair, requesting that Council pass a resolution in support of the Provincial Government's dedication to further developing the tourism industry. Attached is a suggested resolution prepared by Director of Economic Development. 5.2 United Steelworkers of America - IWA Council Letter received October 12, 2004 requesting Council consider passing a resolution to write to the Honourable James Peterson, Minister of International Trade suggesting that the Government of Canada work hard to get the forest industry's money and that he seek their commitment to increased investment. 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7. MA TTERS DEEMED EXPEDIENT 8. ADJO URNMENT Council Workshop October 18, 2004 Page 3 of 3 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: personal information about an identifiable individual who holds or is bein2 considered for a position as an officer, employee or agent of the municipality or another position appointed by the municipality; personal information about an identifiable individual who is bein2 considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; labour relations or employee negotiations; the security of property of the municipality; the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; (1) law enforcement, if the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; litigation or potential litigation affecting the municipality; an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (1) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] a matter that, under another enactment, is such that the public may be excluded from the meeting; the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) the consideration of whether the authority under section 91 (other oersons CORPORATION OF THE DISTRICT OF MAPLE RIDGE TO: Her Worship Mayor Kathy Morse DATE: September 27, 2004 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: Council Workshop SUBJECT: 2005 Meeting Schedule for Council, Committee of the Whole, Public Hearing and Council Workshop EXECUTIVE SUMMARY: The attached 2005 meeting schedule is presented for Council's review. Council may wish to direct staff to make any changes required and forward the schedule to the next available Council meeting for consideration. DISCUSSION: As in past years, the meeting schedule for the following year is presented to Council for consideration and adoption. The attached schedule for 2005 follows previous schedules and includes the following: a) To assure Shaw Cable coverage, Maple Ridge Council meets on the second and fourth Tuesday of the month, except for December 27. As some members of Council will be attending the Union of British Columbia Municipalities convention September 26-30, only one Council meeting is scheduled for September. The Council Workshop on September 19 is ayailable for any emergency business that may arise following the September 13 Council. Alternatively, Council could meet on September 6 and 20, and move the Public Hearing to September 13. However, Shaw Cable would be unable to provide coverage of the meetings due to commitments to the District of Pitt Meadows on those nights. Closed Council meetings are scheduled for the Monday prior to a Council meeting with the exception of May 30, September 19 and October 3. In 2004 Closed Council meetings were scheduled weekly. Council Workshops are scheduled for each Monday except for statutory holidays and September 26 when some members of Council will be attending the Union of British Columbia Municipalities annual convention. Committee of the Whole is scheduled for the first and third Monday of each month. Exceptions are September 19 and October 3. As some members of Council will be attending the Federation of Canadian Municipalities Convention June 3 to 6, Council may wish to delete Council Workshop and Committee of the Whole on June 6. Committee of the Whole could be scheduled for either May 30 or June 13. Public Hearings are scheduled for the third Tuesday of each month. A 3-week break is scheduled for the first three weeks of August resulting in a one-month break between Council Meetings. No Town Hall meetings are scheduled. ---- - - - - C1c, Prepared by: Ceri Marlo Confidential Secretary Apprvedy: Paul Gill, B.B.A., C.G.A., F.R.M. ,-eneral )0ager: Corporate & Financial Services Concurrence. :L. (Ji~i) Rule ----- Chief Administrative Officer G:\Council & o mittee Schedules\Council & Committee Schedule\Report re 2005 Schedule.doc DRAFT 912312004 JanyOO5 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 2 3 4 5 6 7 8 Workshop 9 10 11 12 13 14 15 Workshop Council Closed 16 17 18 19 20 21 22 Workshop Public COW Hearing 23 24 25 26 27 26 29 Workshop Council Closed 30 31 Workshop COW E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 9/23/2004 Febr uary Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 9 10 11 12 Workshop Council. Closed 13 14 15 16 17 18 19 Workshop Public COW Hearing 20 21 22 23 24 25 26 Workshop Council Closed 27 28 Workshop COW E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 March2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 4 6 7 8 9 10 11 12 Workshop Council Closed 13 14 15 16 17 18 19 WorkShop Public - COW Hearing 20 21 22 23 24 26 Workshop Council Closed 30 31 E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 April2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday I . 1 2 3 4 I 5 6 7 8 9 Workshop COW 10 11 1 12 13 14 15 16 Workhop Council Close:d 17 18 19 20 21 22 23 Workshop Public COW Hearing 24 25 26 27 28 29 30 Workhop Council Close1 E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 9/23/2004 MyQ5 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 Workshop CoW 8 9 10 11 12 13 14 Workshop Council Closed 15 16 17 18 19 20 21 Workshop Public COW Hearing 22 STAT Council 24 25 26 27 28 29 30 31 Workhop LGMA Closed WHISTLER E:\Council\Council & Committee Scheduies\Coincil & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 9/23/2004 June2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 LGMA_ _____ _____ - FCM_ WHISTLER St. John's 5 6 7 8 9 10 11 Workshop COW 12 13 14 15 16 17 18 Workshop Council Closed 19 20 21 22 23 24 25 Workshop Public COW Hearing 26 27 28 29 30 Workshop Council Closed E:\Council\Council & Committee Schedu!es\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 Sunday Monday Tuesday sda Frida Saturda 6 Workhop cow 10 11 12 13 14 15 16 Workshop Council Closeki 17 18 i 19 20 21 22 23 Workhop Public COW Hearing 24 25 1 26 27 28 29 30 Workshop Council Closeki 31 t E:\Council\Council & Committee Schedules\Cduncil & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 g ust Sunday Monday Tuesday Wednesday Thursday Friday Saturday S TAT' BREAK - 12 13 BREAK 14 15 16 17 18 19 20 BREAK 21 22 23 24 25 26 27 Workshop Public COW Hearing 28 29 30 31 Workshop Council Closed E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 • 2005 _____ _pember Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 6 7 8 9 10 STAT 11 12 13 14 15 16 17 Workshop Council COW 18 • 19 20 21 22 23 24 Workshop Public Closed Hearing 25 26 27 28 29 30 UBCM VANCOUVER E:\Council\Council & Committee Schedules\Council & Committee Schedule'2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 October2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 2 3 4 5 6 7 8 E Workshop Closed 0 COW 9 J. 11 12 13 14 15 SYfT Council 16 17 18 19 20 21 22 Workshop Public COW Hearing 23 24 25 26 27 28 29 Workshop Council Closed 30 31 Workshop COW E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendardoc 9/23/2004 DRAFT 912312004 November2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 Workshop Closed ::i1 180 19 16 17 Workshop Public Civic COW Hearing Election 20 21 22 23 24 25 26 Workshop Council Closed 27 28 29 30 Workshop E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 DRAFT 912312004 December2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 9 10 Inaugural Council 11 12 13 14 15 16 17 Workshop Council Closed COW 18 19 20 21 22 23 24 Workshop Public COW Hearing :::iiiii 29 30 31 E:\Council\Council & Committee Schedules\Council & Committee Schedule\2005 Council Calendar.doc 9/23/2004 CORPORATION OF THE DISTRICT OF MAPLE RIDGE TO: Her Worship Mayor Kathy Morse DATE: September 22, 2004 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: Committee of the Whole SUBJECT: Financial Sustainability Plan - Policy Guidelines EXECUTIVE SUMMARY: During the 2004 Business Plan discussions, Council asked Councillor Daykin and Councillor Dueck to work with staff and develop a sustainable fmancial plan for the District. This group has spent considerable time researching practices in other governments and is recommending a policy framework that will help develop a sustainable financial plan. The framework was presented to Council at the September 13, 2004 Council Workshop where it was discussed in detail. The policies are now being brought forward for formal considerations. RECOMMENDATION(S): That the Financial Sustainability Plan policies attached to the September 22, 2004 report from the Chief Administrative Officer be approved. - BACKGROUND: The District has a sound business planning process that is the envy of most municipalities. The financial plan, that is part of the business planning process, focuses on issues over the ensuing 5 years. Not as much attention is given to matters beyond the 5 year horizon. The attached policies will allow us to evaluate our progress towards meeting the long term financial needs of our community. Prepared by: Denn1 Sartorius, CA Manager of Accounting Approved b/ Jake Sorba, CGA Director of Finance Approved by: 'akil Gill, CGA,,/' ) /) G r7&Fincial Services I Concurrency: J.L. (Jim) RUle I Chief Administrative Officer Y-3 CL--~ POLICY STATEMENT MAPLE RIDGE District of Manle Ridge Policy No Title: Financial Sustainability Plan Supersedes: NEW Authority: Municipal Council Effective Date: Oct 1, 2004 Approval: Policy Statement: The District's financial planning will be guided by the attached Financial Sustainability Plan policy guidelines. Purpose: A proactive strategy is required that will lay the groundwork for the continuance of high quality services and provide a legacy for future generations. It will position the Municipality to meet financial obligations and take advantage of opportunities that arise; it will also mean that residents can look forward to equitable and affordable taxation. The policies should be designed and structured to develop principles that guide, support and respect the direction of the community. Definitions: FINANCIAL SUSTAINABILITY PLAN Policy Guidelines Purpose: A proactive strategy is required that will lay the groundwork for the continuance of high quality services and provide a legacy for future generations. It will position the Municipality to meet financial obligations and take advantage of opportunities that arise; it will also mean that residents can look forward to equitable and affordable taxation. The policies should be designed and structured to develop principles that guide, support and respect the direction of the community. Policy Guidelines: Growth in Tax Base: Discussion: Maple Ridge is a growing community and all indications are that this will continue. Growth brings in new tax revenue which must be estimated using the best available data. Policy 1.0 Real growth will be set based on the experience of the previous planning period and the projections for the ensuing period, using information provided by the BC Assessment Authority, the Planning Department and the Finance Department. Service demands created by a growing community: Discussion: Growth creates demands for service. Often, the additional tax revenue is not sufficient to pay for the costs of providing the services necessary to keep with established standards. It is important that the demands created by growth be recognized and efforts be made to maintain existing standards. Policy 2.0 Business Plans should provide details of the demands for service created by growth and should include options as to how the demands can be met and existing standards maintained. Tax Increase: Discussion: Rising costs of existing services must be recognized and we must resist the temptation to reduce non-renewable reserves to fund operating expenses. Policy 3.0 Tax increases of 4 % per year to maintain existing service levels. FINANCIAL SUSTAINABILITY PLAN Efficiencies, Demand Management & Service Level Reductions: Discussion: The continuous search for efficiencies is a sound business practice that we have embedded in the way we do business. Also, we do not have the resources to meet all of the demands that are made of us. Demand must be managed to make sure that expectations reflect our fiscal realities and the need to contain expenditures. Areas where service level reductions may be possible must be ident/Ied and brought forward for Council 's consideration. Policy 4.0 Business Plans will ident?fy demand management strategies and will include options for Service Level reductions. Alternative Revenues & External Funding: Discussion: The District should strive to produce non-traditional revenues and diversify its tax base. Policy 5.0 All departments will make every effort to access external funding opportunities from other levels of government & the private sector. All departments will endeavor to develop partnerships, strategic alliances and co-shared project funding to assist in the reduction of expenditures to the District. An expansion of the tax base, beyond existing ratios, can be used to reduce the general tax rate, increase service levels and/or provide new services. Infrastructure Maintenance & Replacement: Discussion: The District has in excess of $1 billion invested in its infrastructure. This includes our direct investments and investments made by the development community that are turned over to the municzpality to operate and maintain. As our community grows, this investment increases. We need to develop a plan to keep the infrastructure in a proper state of repair to avoid costly failures. Policy 6.0 The District will establish an inventory of its infrastructure and will keep it up to date. A maintenance/replacement program will be established using best practices. By 2015, this program must befully funded and the current Syearfinancialplan should start to address this on a phased basis. The required tax increase will be beyond that set out in Policy 2. Policy 6.1 Annual Operating & Maintenance budgets will be adjusted to accommodate growth. 2 FINANCIAL SUSTAThABILITY PLAN 7. New Services and Major Enhancements to Existing Services: Discussion: The tar increase established in Policy 2 essentially allows us to provide the same level of service to the existing tax base. It is not designed to provide for new services or major enhancements to existing services. Policy 7.0 New Services or Enhancements to Existing Services will be funded by a combination ofi Reductloh in the cost of existing services. This may include a reallocation of resources from one area to another. Increase in other revenues. A further increase in taxes. S. Debt Management: Discussion: The maximum amount that the District can borrow from external sources is set by the Community Charter. Every effort should be made to keep debt levels at a minimum however there may be instances where borrowing money is appropriate i.e. financing major infrastructure projects. Borrowing in such instances allows the costs of the project to be spread out over the useful life of the asset. This results in the costs being paid by future beneficiaries and not just by current taxpayers. Policp 8.0 Projects that are to be funded by external debt should be submitted to Council with a business case, including recommendations on how the debt will be serviced. 9. Fees and Charges: Discussion: Fees & Charges are a sign/icant portion of our revenues. They will be reviewed on a regular basis to avoid major changes and to provide the public with adequate notice of those changes. The review will include an analysis of our costs as well as what is charged by other municzpalities. Policy 9.0 Fees & Charges Will be reviewed and adjusted annually. The public will be provided no less than 3 months notice of those changes. FINANCIAL SUSTAINABILITY PLAN Accumulated Surplus: Discussion: Accumulated Surplus represents non-renewable accumulated savings and should not be u.sedfor operating purposes or for normal capital purposes. Policy 10.0 Accumulated surplus will be considered as a funding source for extraordinary one-time expenditures. Reserve Funds and Reserve Accounts: Discussion: The District has a series of reserve funds and reserve accounts that are established for various purposes. They can help us deal with unexpected variations from normal operations, which could include natural, environmental or economic events. As well, they can assist in funding opportunities that arise. Policy 11.0 Each Reserve Account and Reserve Fund will be governed by policy that outlines its purpose, the types of expenditures permitted and the desired level of the reserve. Strategies for achieving the desired level of the reserve will be included in the Business Plans. Capital Projects: Discussion: Many capital projects have funding sources other than General Revenue. For instance, a substantial amount of infrastructure is funded by Development Cost Charges. Once the project is completed, its operating costs, and replacement are usually provided for by General Revenue. These ongoing costs must be clearly understood, before a capital project is approved. Policy 12.0 Each Capital Project submitted for consideration must clearly spell out the full initial cost as well as future costs, including operating & life cycle cost, and demonstrate the source ofsustainablefundingfor such costs. FINANCIAL SUSTAINABILITY PLAN 13. Carryforward Projects: Discussion: From time to time, funding is allocated for a project (capital or operating) but the project is not completed in the year that it was budgeted for. An example of a capital project of this nature is the land required to complete firefighters park An example of an operating project would be the work to be done on the Official Community Plan. Many times, the reason for the delay is due to factors beyond the control of the municipality. For instance, some projects are delayed while we try to secure funding from other partners. Projects can also be delayed if we are not able to negotiate what we believe to be afair price. In such instances, funding is carriedforward" in recognition of the fact that project is still required and we want to be in a position to complete the transaction, once other approvals are obtained. Nonetheless, there is a need to review carryforward projects, in light of other priorities that might have emerged Policy 13.0 Corporate Management will complete a detailed review of Carryforward Projects, in light of other priorities that might have emergeL Terry Fryer From: Susan Cudahy Sent: Friday, October 08, 2004 10:02 AM To: Kathy Morse; Terry Fryer; Jim Rule Subject: COTA Resolution Request We are in receipt of a draft resolution from the Council of Tourism Associations of British Columbia requesting DMR Council to support the announcements of a $25million increase (100%) to Tourism BC's funding and a one time grant of $25million to UBCM. In line with most provincial and federal funding announcements there are no criteria or funding eligability announced at present. It is therefore not clear as to whether the funding will require leveraging with municipal dollars, available only to regional entities, geared to marketing or infrastructure, etc. It is my recommendation to modify the resolution to support the funding increase to Tourism but insert the following statement, Be it resolved that the District of Maple Ridge expresses its support for the recent tourism inititatives of the Premier of British Columbia and acknowledges the important role this will help play in our region and our community. The District of Maple Ridge is providing this expression of support with the understanding and expectation that the funding eligabi!tiy will reflect the needs of the communities outside of the major urban core and be accessible to address the needs of attraction creation and infrastructuredevelopment in municipalities with limited budget capabilities. Susan Cudahy Director of Economic Development District of Maple Ridge 11995 Haney Place Maple Ridge, B.C. V2X 6A9 604-467-7488 direct 604-467-7329 scudahy©mapleridge.org www.maoleridge.org 5.' 7j Council of 0 6 2004 535 Thurlow Street, Suite 100, Vancouver Tourism Associations British Columbia, Canada V6E 3L2 I of British Columbia MAYOR Telephone: (604) 685-5956 • Facsimile: (604) 685-5915 Email: cotabc@telus.net • www.cotabc.com October 4, 2004 Mayor Kathy Morse and Council District of Maple Ridge 11995 Haney Place Maple Ridge, BC V2X 6A9 Dear Mayor Morse and Council: As I am sure you can,attest from your own community's experience, tourism is playing an increasingly important role in local economic diversification and new job creation. Local tourism operators and communities received some very exciting news in Premier Gordon Campbell's recent speech to the Union of BC Municipalities. In particular, the Premier made two important announcements at UBCM that will have a very significant impact in attracting new visitors to our province in an ever-competitive international marketplace. The provincial government will be increasing Tourism BC's marketing budget by $25 million - a 100% increase aimed at doubling the size of the tourism industry within the next decade. With the industry already generating $10 billion annually in provincial economic activity, more than 100,000 jobs and one billion dollars in revenue to government, these new marketing funds will greatly enhance economic growth in all regions. The additional announcement of a $25 million one-time grant to UBCM is another important acknowledgement of the potential there is to create new tourism opportunities in communities throughout the province. The Council of Tourism Associations of BC (COTA), which represents 18,000 businesses across the diverse spectrum of tourism industry groups, invites your Council to join us in acknowledging the importance of this expanded commitment to tourism. While we often spend significant time and resources making demands of government and from time to time leveling criticism, we believe it is important to publicly recognize government for taking positive action. We encourage your Council to pass a motion in support of the government's dedication to further developing British Columbia's tourism industry (a draft resolution is attached for discussion purposes only). COTA would appreciate receiving a copy of your resolution (please send to Council of Tourism Associations at email: mmahoniones(äcotabc.com and/or fax: 604-685-5915). On behalf of the Council of Tourism associations of BC, thanK you for your consIderation of this important matter. I would welcome the opportunity to discuss this issue further or answer any questions you may have about this or any other issue related to BC's tourism industry. Please contact myself or Mary Mahon Jones, CEO of the COTA at 604 685-5956. Yours truly, Michael Campbell Chair Counciröf Tourism AssocIations OfBC Voice of the Tourism Industry S a DRAFT RESOLUTION ON TOURISM MARKETING & PROMOTION Whereas British Columbia's tourism industry employs over 100,000 people in communities like Whereas tourism is an important source of economic diversification, especially in small and medium-sized businesses at the local level; Whereas tourism generates $1 billion in revenues to support various levels of government to support programs such as health care and education; Whereas tourism marketing and promotion are critical to realizing the industry's growth opportunities and potential; Whereas at the recent Union of BC Municipalities convention, the Premier of British Columbia announced a doubling of Tourism BC's marketing budget from $25 million to $50 million and $25 million to local governments through the UBCM; Be it resolved that expresses its support for the recent tourism initiatives of the Premier of British Columbia and acknowledges the important role this will help play in our region and our community. O99 UNITED STEELWORKERS OF AMERICA - IWA COUNCIL #300 3920 NORLAND AVENUE, BURNABY, BRITISH COLUMBIA, CANADA V5G 4K7 TEL: 604.683. 111 7 F,x: 604.688.6416 WEB: ww.iwa. C _zm &c r -UwIl OCT 122004 Action: ber 30, 2004 MAYOR Dear Mayor and Council: As local government representatives for a forest-based community, you know how important forest-sector investment is to our future. The forest industry, Canada's largest source of export earnings needs investment to keep it competitive and allow it to continue creating good-paying jobs and the revenues that support thousands of communities across Canada. But in the past decade, investment in Canada's forest industry has slipped. Companies today are investing insufficiently in new technology, research, infrastructure and the workforce. As you will see from the information cited in the attached letter to international trade minister Jim Peterson, we are falling behind our competitors in the US and Scandinavia in both capital investment and research and development. We believe it's about time Canadian forest companies, federal and provincial governments took steps to ensure that our mills and plants are competitive and forest sector workers receive the training and skills upgrading they need to face an increasing ly-com petitive global marketplace. We urgently need to ensure that companies employ the most up-to-date technology and that they diversify our industry to create the jobs that we will need in the future. We need research into new product lines, new uses for wood and new markets. Meanwhile, Canada has recently scored some important victories before North American Free Trade Agreement panels. The federal government and industry have succeeded in fighting back that US protectionist measures against Canadian lumber exports. In other words, companies enjoyed the help of Canadian politicians and diplomats, financed by workers and taxpayers, in ensuring access to our largest market. This is a major victory, not just for forest companies but for all Canadians, who enjoy the benefits a strong, vibrant forest sector brings.. Now companies will be asking for more help from government. They will be seeking assistance from Ottawa and taxpayers in getting back the roughly $2.8 billiOn US they have paid in countervailing duties and anti-dumping levies since May, 2002. We believe that Ottawa should assist them in any way possible. But we also believe. Ottawa should ask companies for some commitments, too. We believe the federal government needs companies to agree to measures that will ensure investment levels sufficient to allow Canada's forest industry to compete in international markets, create new jobs in a more diversified industry, provide workforce training as well as pension-bridging aimed at allowing older workers out and younger workers in, develop infrastructure and increase research and development spending. We do not believe this is too much to ask - indeed, all we are asking is that industry ensure its own future viability and return on investment. . 0 .12 5 Steelworkers - IWA Council Page 2 We would appreciate your assistance, as well. We would like your council to write to Mr. Peterson and suggest to him that the government of Canada should work hard to get back the industry's money and that he should seek their commitment to increased investment. Forest-based communities make up the backbone of our country, after all. We earn the export dollars that keep our country strong and free. We simply need to ensure that we have the best possible tools, skills and knowledge to keep on doing it. • - . 'Thank you for your attention to this matter. Please feel free to contact me should you need additional information. . Yours tr Norman Rivard Chair NR piwa.c.uswa cc: Steelworkers -- IWA council Officers Ken Neumann, Canadian Director, United Steelworkers • Steve Hunt, District 3 Director, United Steelworkers Wayne Fraser, District 6 Director, United Steelworkers Michel Arsenault, District 5 Director, United Steelworkers UNITED STEELWORKERS OF AMERICA -- IWA CouNciL #300 —3920 NORLAND AVENUE, BURNABY, BRITISH COLUMBIA, CANADA V5G 4K7 TEL: 604.683.1117 FAx: 604.688.6416 WEBwww.iwa.ca September 10, 2004 Honourable James Peterson Minister of International Trade Government of Canada Parliament Hill House of Commons Ottawa, Ontario, K I A 0A6 Dear Mr. Peterson: Congratulations on your recent reappointment as Minister. of International Trade. As we mentioned at our meeting earlier this year, our members share your vision of the bright and prosperous future for Canada that can flow from a strong forest industry and secure resource- based communities. We believe that the government of Canada currently enjoys an excellent opportunity to ensure that forest companies make key investments we need to maintain our position as Canada's leading export sector. Canada has now won a series of crucial decisions before North America Free Trade Agreement panels. These decisions have fundamentally rejected the US administration's position that its lumber producers face injury due to lumber imports from Canada. As a result, Canadian firms will soon be in a position to seek return of the more than $2.6 billion they have paid in anti- dumping charges and countervailing duties since the beginning of the current Canada-US lumber dispute. Meanwhile, Canadian. forest companies have recently engaged in a flurry of mergers, acquisitions and purchases of foreign assets. The resulting consolidation of the industry might protect the largest firms' profits but it also threatens the security of many of the men and women who work in our forest sector, their families and their communities. Without additional investment, our forest sector will continue to lose ground in international markets. We badly need spending in areas such as product-line and market diversification; much-needed transport and-communie-ations infrastructure; workfore träim .ñg and -skills upgrading; pension bridging to allow older employees to make way for younger workers and science-based and technical research and development. .: A recent study by the Forest Products Association of Canada, for instance, noted that Canada is seriously lagging behind its competitors in the US and Scandinavia 'in forest sector research and' development spending as a percentage of gross national product. Scandinavian countries, in fact, spend over three times as much as does Canada. No Wonder European and other foreign producers have been able to take advantage of US protectionist measures against Canada by rapidly expanding their lumber shipments into the American market. It is also worth noting in "4 Page 2 this connection that in 2002, Canadian manufacturing industries in general made new capital investments totaling 19 percent of their contribution to gross national product. Resource industries combined invested 34 percent. Forest products, however, invested only 9 percent of the sector's contribution to GDP, a rate that the FPAC notes is "below depreciation rates" and which means that "the capital stock of the Canadian industry (is) continuing to age relative to that of its new competitors." Your government now has an opportunity to ensure that we do not lose our competitive edge. The government of Canada should seek companies' commitment to use the money the US administration owes them to invest in the future of our industry by upgrading and diversifying their operations, developing new products and finding, new markets. We also suggest the government of Canada work with companies to provide training, skills upgrading, retraining other educational opportunities to forest-sector workers and their families. And we urge you to an increased commitment to spending in science-based research, development and technical innovation. Without these measures, we fear that our forest sector will continue to loose markets and squander opportunities to improve productivity and capture new markets. After all, a successful forest sector means strong export performance, good-paying jobs and a prosperous future for many thousands of Canadians in every region of the country. Thank you for your attention to this matter. Please contact us should you require additional informalion. Yours tru y /1 Norman Rivard Council Chair NR!nm iwa 1-425 P.C. Ken Neumann, Canadian Director, USWA