Part A: Ministry of Forests and Range — Continued

Goals, Objectives, Strategies and
Performance Measures

Ministry Goal 1:
Sustainable Forest and
Range Resources.

As stewards of British Columbia's forest and range resources, the Ministry of Forests and Range has the responsibility to ensure the use of these resources to generate economic benefits is balanced with their long term viability. The ministry ensures that appropriate forest and range management practices and incremental investments are used to maintain and improve the long-term sustainability and health of the province's forest and range resources.

The ministry tracks overall sustainability of resources on an annual basis using key outcome indicators. Status and trends based on data available for assessment in 2005/06 is as follows:

Key Outcome	Indicator	2005/06 Status/Trend
A sustainable forest land base	Area of provincial forestland in millions of hectares	good/stable
Sustainable timber productivity	Ratio of area reforested to area harvested or lost to fire and pest	poor/declining to flatline in three years
Sustainable timber productivity	The total area lost to wildfire annually in hectares (5-year rolling average)	good/stable
Healthy forests	Per cent of annual harvest area with soil loss due to establishment of permanent access roads	good/stable
Effective forest and range protection and management, as represented by compliance with the regulatory framework	Per cent of forest and range operators' compliance with statutory requirements that regulate forest practices	good/stable

Status is good, fair or poor; Trends are increasing, stable or declining.

Other indicators of healthy forests, looking at the key elements of water quality and biodiversity, are complex and assessment of these is addressed more fully in the Ministry's State of British Columbia's Forests Report published periodically at: http://www.for.gov.bc.ca/hfp/sof/.

Data from the state of the forests report and Forest Practices Board audits also support the conclusion that these aspects of sustainability are being addressed satisfactorily in B.C. The indicators of sustainable timber productivity, area lost to wildfire and the reforestation ratio, have been a concern over the past few years. However, as expected, the area lost to wildfire returned to within the normal variation in 2005/06. The reforestation ratio continues to show the expected decline, reflecting the time lag associated with initiating the new Forests for Tomorrow program to address loss to fire and mountain pine beetle.

Key Outcome Indicators

Sustainable Forest Land Base — A sustainable forest land base represents the footprint of the provincial forests for land-use decision making.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Area of provincial forestland in millions of hectares	47.8	47.8	47.7	47.7	47.7	0
Selection Rationale This key outcome pertains to the area in provincial forest land which reflects provincial land use decisions. Changes to the indicator would be expected if the government removed Crown land from forest management for other uses (e.g., preservation, parks or agriculture or Crown land sales) or converted land from other uses to forest management.
Results and Variance Explanation There were no removals of Crown land from forest management for other uses or additions of land converted from other uses to forest management, in 2005/06. The small reduction in the productive forest area between 2002/03 and 2003/04 reflected updated inventory information and minor changes to land use and administration rather than a change to the land base.
Data Sources and Issues For the purposes of this measure, provincial forest land is the Crown land in timber supply areas, woodlot licences, and tree farm licences. Data are from the ministry's Allowable Annual Cut (AAC) database, as of January 1st each year. Accuracy of this measure is within 1 per cent or to the nearest 500 000 hectares.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Sustainable Timber Productivity — The ministry measures reforestation and losses from fire to represent the outcome of sustainable timber productivity.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Ratio of area reforested to area harvested or lost to fire and pest	0.93	0.82	0.78	0.80	0.74	-0.06
Selection Rationale The ministry measures reforestation to represent the outcome of sustainable timber productivity. Reforestation, represented by the ratio of area reforested to area harvested or lost to fire and pest, includes planting or natural regeneration and is net of plantation failures. Harvesting is by any method. Area lost to fire and pest 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. A ratio of 1.0 indicates that 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 (NSR) with more area being harvested or lost to fire and pest than reforested.
Results and Variance Explanation The expected downward trend in the reforestation indicator attributed to the increase in areas lost to wildfire and to the mountain pine beetle epidemic is evident in the actual results for 2005/06. The ministry initiated the Forests for Tomorrow Program in 2005/06 to address this trend, with first year activities focusing on strategy development, surveys and site preparation work for those areas not reforested under legislated requirements associated with salvage harvesting. Substantial amounts of planting do not begin until 2007/08, when the downward trend in the indicator is expected to be stopped. B.C.'s results may be generally comparable to Ontario, who track the percentage of human or natural forest disturbance area regenerated successfully. However, there are some differences in reporting methodology and reforestation standards between the two provinces. Ontario uses a sampling methodology to collect data, while BC's data represent a complete census of all cutblocks in the timber harvesting landbase. Ontario also has different reforestation stocking standards than BC. In addition, Ontario's last published information is for 2001/02, which shows an actual performance of 88 per cent. In 2001/02, the MoFR ratio was 1.2 or 120 per cent, reflecting significant efforts by B.C. to reforest areas that had been deforested prior to 1988. A more recent comparison is not possible. Their annual reports can be accessed on-line at: http://ontariosforests.mnr.gov.on.ca/publications.cfm#reports.
Data Sources and Issues Based on a five-year rolling average. The ratio uses data from the past five years, submitted by licensees and the ministry, to RESULTS (Reporting Silviculture Updates and Landstatus Tracking System). Data reported are one year older than the year indicated. This reflects that the data are submitted by industry according to legislated requirements, at June 1st each year for the previous year ending March 31st and this is not aligned with reporting requirements for the ministry's Annual Service Plan Report. An adjustment to the actual ratio reported for 2004/05 in the 2006/07 service plan and the 2004/05 Annual Service Plan Report has been made from 0.80 to 0.78. This reflects late updates to the database. Transition to the new RESULTS information system has required substantial review and reformatting of data, contributing to not having accurate and complete data available in a timely manner. The ministry is making considerable efforts to complete the extra work required, and the data are expected to be up-to-date by the end of 2006/07.
Changes to the Measure None.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
The total area lost to wildfire annually in hectares (5-year rolling average)	20 471	50 615	63 540	<85 000	79 596	-5404
Selection Rationale The total area lost to wildfire annually. This is highly dependent on weather and where fires occur relative to resources and communities
Results and Variance Explanation Area lost to wildfire was slightly less than anticipated in 2005/06. Projections of losses were increased from <65 000 ha in 2004/05 to <85 000 ha in 2005/06 to reflect the extreme drought of 2004 after the exceptionally severe 2003 fire season. these conditions will impact the five-year rolling average of area lost for the next five years.
Data Sources and Issues These measures use data from the past five years, from the Forest Service Historical Fire Statistics database.
Changes to the Measure No changes.

Healthy Forests — Healthy forest ecosystems sustain the quality and quantity of soil, water and timber, and therefore, indicate sustainable forest resources. Measures of timber are addressed above. Soil and water protection are addressed largely through the Forest and Range Practices Act (FRPA), which is measured by the compliance indicator below. This measure of soil loss demonstrates compliance with the FRPA standard, which requires soil losses to be less than 5 per cent. There is no obvious high level indicator of ecosystem water quality, which occurs largely on a site specific basis.

Key Outcome Indicator	Benchmark	2005/06 Projection	2005/06 Actual	Variance
Per cent of annual harvest area with soil loss due to establishment of permanent access roads	<5	<5	<5	0
Selection Rationale The indicator per cent of annual harvest area with soil loss due to establishment of permanent access roads is linked to national forest criteria and indicators of global forest sustainability. Although the indicator represents a key element of healthy ecosystems (soil sustainability), it is only meaningful at the ecosystem level, needs to be considered over time, and cannot be taken by itself as a sufficient indicator of sustainability. The ministry will present more comprehensive information in a "State of the Forests" report published periodically. Permanent access roads include any not-rehabilitated roads, excavated or bladed trails, landings, pits or quarries. Harvest area is by any method and includes areas with retained mature timber and naturally occurring non-productive areas within the cut block boundary.
Results and Variance Explanation Actual achievement was as projected for 2005/06.
Data Sources and Issues Data for this measure is compiled by the Forest Practices Branch from RESULTS (Reporting Silviculture Updates and Landstatus Tracking System). Data are submitted, according to legislated requirements, before June 1st each year for the previous year ending March 31st. The ministry's Annual Service Plan Report is finalized in May of each year. The timing of the legislated reporting requirements for industry and the ministry's Annual Service Plan Report are currently not aligned. Therefore the data produced in the Service Plan are currently always one year behind.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Effective Forest and Range Protection and Management — the measure below reflects management decisions and actions of forest and range operators which is key to the outcome of sustainable forest resources

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Per cent of forest and range operators' compliance with statutory requirements that regulate forest practices	93	92.1	91.4	> 94	93.6	-0.4
Selection Rationale This measure was selected as an indicator of the management decisions of forest and range operators which are key to the outcome of sustainable forest resources. Forest and range operators are all industry (major and small business) licensees. Compliance is with the Forest Practices Code and the Forest and Range Practices Act. This is a measure of the number of inspections completed with no alleged non-compliance that led to a determined or prosecuted enforcement action versus the number of inspections completed.
Results and Variance Explanation Variance for this measure is within the accepted accuracy for reporting. The rate of compliance has consistently been in excess of 90 per cent for the past eight years.
Data Sources and Issues Information is from the ministry's Compliance Information Management System (CIMS).
Changes to the Measure No changes.

Objective 1: Prevent and manage wildfire and forest pests.

This objective reflects the ministry's intent to protect forest and range resources and investments by minimizing losses and mitigating future risks from wildfire and forest health infestations.

Since 2003, achievement of this objective has been supported by implementation of recommendations from the internal and external inquiries of the 2003 and 2004 fire seasons. Many initiatives were implemented in 2004 including the addition of two air tankers, 100 additional firefighters and development of a provincial fuel management strategy. The strategy has provided funding for over 60 Community Wildfire Protection Plans and for over 45 fuel management projects. As well, British Columbia is playing a key role in developing the Canadian Wildland Fire Strategy to help protect communities and accelerate improvements to the provincial and national wildfire infrastructure.

Achieving this objective for wildfire also depends on the severity of conditions including: weather, ground fuel accumulations, and availability of trained crews, equipment, air tankers and resources from other sources. Continued implementation of the recommendations will ensure the greatest level of preparedness for future fire seasons.

The ability of the ministry to manage forest pest infestations is largely influenced by our predictive ability with insect population cycles, and ongoing monitoring and detection. The ministry coordinates research and modeling of insect populations with other agencies, and ensures that an aerial overview survey of provincial forests along with pest specific ground surveys are done each year to detect new or growing infestations. Managing forest pests is done in partnership with the federal government and forest industry, and in the case of an epidemic with economic impacts like the mountain pine beetle, in coordination with communities, First Nations and other government agencies.

Strategies

Ensuring fire preparedness and rapid effective initial attack by continuing to implement the new Wildfire Act including streamlined regulations. The Wildfire Act was brought into force on March 31, 2005 and the ministry worked with stakeholders to ensure compliance.
Continuing to renegotiate agreements with utilities and develop new agreements with other sectors to increase cost-recovery for fire protection activities. Over the past year the ministry has significantly expanded the number of clients involved in these agreements and is working to ensure continued success of the cost-sharing program.
Responding to the results of the internal and external inquiries into the 2003 and 2004 fire seasons. The ministry has continued to implement recommendations from 2003 and 2004 internal and external reviews and consolidation of this implementation has been reflected in the ministry's Protection Program Strategy approved in January 2006.
Early detection and treatment of insect infestations. During 2005/06, the ministry continued to conduct early detection (air and ground surveys) to identify insect infestations (primarily for bark beetles and the western spruce budworm) and determine if treatments were warranted and feasible. Treatments were carried out on all viable Beetle Management Units, however, due to the rapid spread of the infestation targets were not met (see measure below).
Monitoring and evaluating forest health status and implementing best management practices in support of the timber supply review and protection of the 11 resource values under the Forest and Range Practices Act (FRPA). Over the past year, ministry forest health specialists have been piloting an effectiveness evaluation monitoring protocol to determine if forest health factors are significantly impacting young forest stands and thereby not meeting the growth projection assumptions in the Chief Forester's Timber Supply Reviews. Best management practices have been reviewed and updated by ministry forest health specialists and a training and extension plan is also being developed and funded in 2006/07 to improve access to these best management practices.

Performance Measures

Performance Measure	Benchmark	2005/06 Target	2005/06 Actual	Variance
Per cent of wildfire contained at less than four hectares	93	92	92.2	+ 0.2
Selection Rationale This is a measure of the ministry's success rate of initial attack on wildfire that is unplanned, accidental or unwanted (i.e., has potential to cause damage to or loss of timber, range or public resources). If containment is kept to under four hectares by 12 pm the day after the fire starts, damage and costs for fire suppression are kept to a minimum.
Results and Variance Explanation No significant variance from target. Alberta and Ontario both track success of initial wildfire attack using this same measure. Alberta's most recent published target is 90 per cent (2002 to 2005), but actual performance data could not be obtained. The last published data for Ontario show an initial attack success rate of 96.4 per cent in 2001. While the information can not be compared directly year to year, it appears that all three jurisdictions target and achieve initial wildfire attack success rates between 90 and 96%. Differences in land ownership, policy and climate conditions would account for the 6 per cent variation.
Data Sources and Issues Data are from the Forest Service Historical Fires Statistics Database.
Changes to the Measure None.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of Crown forest aerial surveyed to monitor forest health	100	100	100	100	87.5	- 12.5
Selection Rationale Annual province-wide aerial surveys are used to monitor forest disturbances caused by insects, diseases, animal and abiotic factors. The findings of these surveys are posted on the ministry website for access by the public, consultants, licensees and ministry staff. The data are used to track damage trends, estimate impacts on forest resources, plan management activities strategically, and direct more detailed surveys.
Results and Variance Explanation The target was not achieved in parts of the Northern Interior and Coastal Forest Regions due to inclement weather. The target was fully achieved in the portions of the Northern Interior and Southern Interior, where information on mountain pine beetle was critical to implementation of Mountain Pine Beetle Action Plan spread control treatments in 2005/06.
Data Sources and Issues Data are collected from the forest regions through aerial overview survey contracts.
Changes to the Measure This measure is tracked internally to the Ministry starting in 2006/07.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of bark beetle management units (BMU) — including parks and protected areas — treated by MoFR that meet treatment targets	89	88	75	80	69	-11
Selection Rationale The exponential expansion of beetle infestation continues. The ministry is investigating a potential new outcome-oriented performance measure to report on the extent of the mountain pine beetle infestation, how it is being addressed through treatments and salvage logging, and the ultimate impact on sustainability of the forest resource. This new measure would track the successful reforestation of areas impacted by the beetle (and subsequently salvage logged, treated or left to reforest naturally). At this time there are decisions pending as to the scale and spatial location of some large scale salvage operations. The outcome of these decisions, and their interaction with the impact of Forests for Tomorrow program implementation, will influence the timing to accurately implement this measure. In the short term, the ministry is continuing with this measure of the extent of the highest priority areas treated. High-priority sites are those which present an opportunity to stop or reduce the rate of spread. Activities include conducting detailed aerial and ground detection leading to treatments through targeted harvesting, felling and burning, setting up pheromone trap trees, or other methods. By agreement with MOE, MoFR is responsible for treatments in parks and protected areas. Targets are established through the development of annual beetle strategies and the availability of funding.
Results and Variance Explanation Expansion rates of the MPB were higher than expected in the units that failed to meet suppression targets thereby exceeding the units' resources to adequately address the new infestations. By Fall 2005, the beetle had infested 8.7 million hectares.
Data Sources and Issues Detailed aerial and ground detection is used 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. Data come from aerial and ground surveys and treatment records.
Changes to the Measure In 2004/05 only the area treated by MoFR directly (primarily parks and protected areas) was measured. A policy change in September 2004, led to the ministry being responsible for forest health on all Crown forest areas, and therefore the measure was changed in 2005/06 to report on all Crown forest areas treated under the Mountain Pine Beetle Action Plan. In 2006/07, this measure has been reworded to the "Per cent of Mountain Pine Beetle Aggressive Emergency Management Units that achieve treatment targets." This change reflects a change in naming convention where Beetle Management Units that fell within the Emergency Bark Beetle Management Area have been divided into Aggressive Emergency Management Units (AEMUs) and Containment or Holding BMUs, in addition to a Salvage Zone. These refinements have been necessary to hone the Government's strategy to focus funding on the highest priority areas where there is an opportunity to stop or reduce the rate of spread of the beetle. AEMUs (previously called Suppression Beetle Management Units (SBMUs)) are areas where new infestations are managed through targeted small-block harvesting, felling and burning, use of pheromone baits, or other methods. Areas where beetle infestations are still active, but there are no opportunities to suppress the populations, are called Containment EMUs (or Holding BMUs). These areas are being harvested via larger blocks to slow beetle spread. 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 first two unit designations are enabled under section 109 of the Forest Planning and Practices Regulation. In this regulation the Bark Beetle Coordinator may designate Emergency Management Units within the Emergency Bark Beetle Management Area to expedite harvesting for the purposes as indicated above. The Aggressive EMUs continue to be the focus of concerted effort under the Mountain Pine Beetle Action Plan, and this performance measure has been selected to report progress on treatments in these units. This is described more fully in the 2006/07 MoFR Service Plan.

Performance Measure	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of high priority areas treated to manage defoliator outbreaks	Gypsy Moth 100 All others 99	Gypsy Moth 100 All others 54	Gypsy Moth 100 All others 100	Gypsy Moth 100 All others 77	Gypsy Moth 0 All others 23
Selection Rationale Other defoliators include western spruce budworm, western hemlock looper among others. The achievement of this measure is largely determined by funding levels and population trends.
Results and Variance Explanation All gypsy moth high priority sites were treated in 2005/06, achieving the target. The achievement of 77 per cent for "all other" defoliators represents 27 000 hectares that were treated. The target was 35 000 hectares at the start of 2005/06, but due to cold weather that eliminated defoliators on 8000 hectares in the Southern Interior, only 27 000 hectares required treatment during the year.
Data Sources and Issues Aerial and ground surveys and treatment records.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 2: Ensure that the principles of sustainability guide the management of, and improvements to, the provincial forest and range resources.

This objective has been split into two new objectives for the 2006/07 service plan to better describe the intent of the business associated with a principled approach to ensuring sustainable forest and range resources:

(1) An effective forest practices and policy framework

This objective was one of the strategies in the 2005/06 Service Plan Update, and was promoted to an objective reflecting that the forest practices and policy framework is a key tool to achieving government's goals through setting standards, developing and reviewing policies and legislation, and managing non-statutory information such as training material or guidance for resource professionals. The ministry manages the risk to achieving this objective by working with professional associations, a minister's advisory council and through regular discussion with communities, the public and effective consultation with First Nations.

Strategies

Continuing to jointly evaluate, improve, and manage the forest practices and planning framework based on best available resource information and science; and
Implementing processes that ensure consistent and science-based evaluations of forestry plans submitted for approval.

Results

Progress towards meeting this objective and achieving the above strategies in 2005/06 is reflected in the following key accomplishments:

The Minister's FRPA advisory council met five times and reported to the Minister on how to improve the forest practices framework on matters related to environmental protection, continuous improvement of the FRPA Resource Evaluation Program, forest worker safety, First Nations consultations, and various implementation issues.
Ongoing work with the Ministry of Environment, the Integrated Land Management Bureau and licence holders to simplify licensee access to information for the preparation of Forest Stewardship Plans, a critical component of the FRPA, by improving the accessibility and usability of current data.
Issues associated with the implementation of FRPA were identified and resolved through monthly meetings of the ministry's FRPA implementation teams, consisting of members from government, the forest and ranching sectors and the professional associations.
Successful development and implementation of the Chief Forester's Standards for Seed Use, a key piece of the forest practices and planning legislative framework.
The ministry supported the work of the Professional Reliance Task Team, which drew its membership from the four professional associations with legislated responsibilities in FRPA, in their efforts to define the role of resource professionals in a results-based legislative regime.
Initiated inventory program review, involving data collectors, users and managers of the inventory, to coincide with transfer of inventory function to MoFR.
Phased in implementation of a Forest and Range Evaluation Program (FREP) to ensure that B.C. is a world leader in sustainable forest management by providing the high quality, science-based information needed for decision-making and continuous improvement of B.C.'s forest practices, policies and legislation.

(2) Advice to decision-makers is guided by the principles of sustainability and best available science

Statutory decision-makers in MoFR and other agencies are supported by decision tools built from the best available science and analysis. These decisions include determination of Allowable Annual Cut, establishment of Visual Quality Objectives, identification of resource features and operational plan determinations. Achieving this objective depends on coordinated and cost-effective analysis and sound decision-making.

Strategies

Applying research and forest analysis to support policy development and statutory decision-making;
Supporting transfer of specified timber supply review activities to Defined Forest Area Management licensees;
Participating in the provincial Tree Improvement Strategy; and
Developing and delivering training programs.

Results

Progress towards meeting this objective and achieving the above strategies in 2005/06 is reflected in the following key accomplishments:

Urgent timber supply reviews were initiated for three Interior timber supply areas (100 Mile House, Williams Lake, Morice). This work is consistent with priorities identified in the Mountain Pine Beetle Action Plan.
Completed first approximation of provincial-level impact analysis for 20 TSAs affected by the mountain pine beetle.
Provided best available information on updated Vegetation Resource Inventories (VRI) to support analysis for AAC determinations: acceptance/approval of eight VRI strategic inventory plans, nine VRI project implementation plans, three Phase 1 photo-interpretation inventory projects and four Phase 2 ground-sampling inventory adjustment projects.
Completed establishment of 2,420 Photo Plots and 268 Ground Plots for the National Forest Inventory program (initiated in 2000). This completes the British Columbia commitment to the establishment phase of the National Forest Inventory program.
Upgraded GIS skill sets of inventory staff in preparation for implementation of the Vegetation Resource Inventory Management System.
Examination of best methods for gathering and maintaining inventory information on forest attacked by the mountain pine beetle.
Promoted development of training material on how to review and comment on Forest Stewardship Plans for agency staff, public and First Nations.
Tree Seed Centre met seedling request targets and ministry seed orchard production met expected seed production volumes.
An updated Bio-geo-climatic Ecosystem Classification (BEC) map and database were made available across the province, essential to the forest practices policy framework and decision-making processes.
Projection model of the spread of mountain pine beetle across the province was updated and a mountain pine beetle stewardship research strategy was completed.
The Forest Science Program contributed significantly to best available science information by generating 760 extension products and events provincially.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of TSAs and TFLs for which AAC has been determined in the last five years	N/A	N/A	N/A	100	90	-10
Selection Rationale This was a new measure in 2005/06, replacing "per cent of timber supply allowable annual cut determinations achieved by their scheduled deadline." The Forest Act requires that the provincial chief forester determine allowable annual cuts (AACs) for each Tree Farm Licence (TFL) and Timber Supply Area (TSA) at least once every five years. For the purposes of this measure, a postponement by the Chief Forester under the Forest Act, in cases where an AAC is not likely to be changed significantly, is considered a determination. This measure would provide a gauge of the currency of AACs in the province and serve as a rolling measure of the extent to which the timber supply review program is on schedule.
Results and Variance Explanation Completed and released AAC determinations for four tree farm licences (TFL 15–Weyco, TFL 18–Canfor, TFL 53–Dunkley, TFL 49–Tolko) and seven timber supply areas (Arrow, Strathcona, Revelstoke, Cranbrook, Invermere, Merritt, Okanagan). Five of these determinations involved urgent reviews for mountain pine beetle-related AAC uplifts (Merritt, Okanagan, TFLs 18, 49. 53). The shortfall in achievement is attributed to delays to TSRs in anticipation of completion of Land and Resource Management Planning (LRMP) processes (for the Midcoast, North Coast, Queen Charlottes TSAs and TFL 38); uncertainties about licensee viability and lack of activity on the licence area (for TFL 1).
Data Sources and Issues Internal records.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Volume gain of timber available for harvest in 65 years from all ministry tree improvement activities (Million cubic metres)	1.670	2.252	2.386	2.175	2.176	0.001
Selection Rationale Future volume gain is calculated from a provincial growth and yield model driven by genetic worth and quantity of improved seed actually deployed.
Results and Variance Explanation Results were as targeted.
Data Sources and Issues Internal records and Ministry Growth and Yield modeling.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 3: Deliver ministry programs required to manage provincial forest and range resources for sustainable benefits.

The ministry is responsible for several key programs that help deliver the stewardship mandate of government, which involves managing, restoring and improving forest resources. This is achieved through improving gene and seed resources, growing improved seedlings, reforestation and other silviculture activities. These activities are supported by 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 credits, measuring site productivity and predicting the growth and yield resulting from specific 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 this objective can be achieved. Funding and priorities for the strategies under this objective come from several sources:

Initiated development of the Vegetation Resource Inventory Management System (VRIMS) to replace the existing information management system (INCOSADA) for capturing, updating and maintaining the Vegetation Resource Inventory.
The Forest Stand Management Fund (FSMF) — This fund provides for silviculture and environmental remediation work on areas where the obligation to establish a free growing stand has been transferred from a non-replaceable licence holder to the government.
The South Moresby Forest Replacement Account (SMFRA) — This Account was created to mitigate the impacts of loss in timber supply and forest-based employment resulting from the creation of Gwaii Haanas National Park Reserve. Projects are related to two key program areas: Sustainable Forest Management; and Community Stability through Enhancing the Forest-Related Economy.
The Forests for Tomorrow Program — This program will further stewardship of the forest land base by reforesting productive areas impacted by fire and mountain pine beetle infestation over the past few years. The results of this program are expected to be observed in the outcome indicator "ratio of area reforested to area harvested or lost to fire and pest," about five to seven years after reforestation.
The Mountain Pine Beetle Action Plan (2005 – 2010) describes the provincial government's response and provides guidance for all agencies involved in the effort to mitigate the impacts of this unprecedented epidemic on forest values, communities and the provincial economy in the short term, and to ensure sustainability in the long term. For more information please refer to Appendix A1.

Strategies

Involvement and collaboration with external agencies and multi-stakeholder committees to assist in achieving ministry sustainability objectives;
Developing strategic plans to support full implementation of programs such as invasive plant prevention and control, karst and visual landscape inventories, comprehensive research through partnerships and other innovative delivery mechanisms and evaluating areas denuded by fire and pests to determine reforestation needs; and
Supporting ministry reforestation obligations.

Results

Progress towards meeting this objective and achieving the above strategies in 2005/06 is reflected in the following key accomplishments:

Ministry actively involved in many multi-stakeholder research and innovations groups for the purposes of managing, restoring or improving forest resources. An example of such groups would include the Forest Science Board, Forest Genetics Council, several Canadian Council of Forest Ministers' working groups and the Canadian Forest Innovation Council.
The tree breeding program continued to be guided by Forest Genetic Council priorities including increasing the average volume gain of select seed used for Crown land reforestation to 20 per cent by 2020, and, increasing select seed use to 75 per cent of the provincial total sown by 2013, as well as initiating research on resistance of lodgepole pine to mountain pine beetle.
Under the Forests for Tomorrow Program 40 000 hectares of the area affected by the 2003 wildfires were surveyed of which 10 000 hectares have been prescribed for planting and 10 million seedlings are currently being grown.
Released a report on the potential affects of climate change on B.C.'s forestry resources.

Performance Measure

Per cent achievement of ministry free growing obligations: This includes the ministry's reforestation obligations under the Forest Stand Management Fund and licences to cut. This is a new measure in 2005/06, replacing "Per cent achievement of ministry free growing obligations under the Forest Stand Management Fund." This new measure more accurately represents the ministry's responsibility for reforestation resulting from sources such as non-replaceable forest licences and licences to cut. Data are gathered from decisions made in the forest districts.

As there were no hectares scheduled to achieve free growing during the year, no report on this measure has been included here, and beginning in 2006/07 the measure will be tracked internally to the ministry.

Objective 4: Restore the forest resource in areas affected by the Mountain Pine Beetle Epidemic (includes Provincial and Federal support for Mountain Pine Beetle Action Plan implementation).

Progress on achievement of this objective is described in the Mountain Pine Beetle Action Plan Report in Appendix A1.

Objective 5: Monitor, evaluate, and continuously improve
forest management.

Under new results-based legislation, evaluating the outcomes of forest practices in the field will be a key indicator of how effective the FRPA legislation is at protecting forest resources. To this end the ministry has initiated a FRPA Resource Evaluation Program (FREP), a multi-agency initiative to evaluate whether the FRPA will meet its results-based objectives, and whether forest and range practices and the legislation itself are meeting government's broader intent for sustainable resource management.

Public reporting on forest practices, program evaluations and the state of the forests can open dialogue with the Forest and Range Practices Act inter-agency implementation teams, resource professionals, the public, and other stakeholder groups. This dialogue is a key component to continuous improvement and innovation in forest management.

Strategies

Developing and implementing a coordinated and comprehensive effectiveness evaluation program related to FRPA forest values;
Developing and implementing a regional/district level monitoring program related to implementation of operational plans; and
Regularly evaluating and publishing information on the state of the forests.

Results

Progress towards meeting this objective and achieving the above strategies in 2005/06 is reflected in the following key accomplishments:

Successful piloting of the use of satellite image change detection for mapping of red-attacked lodgepole pine stands in mountain pine beetle affected areas;
Working with stakeholders, the ministry identified 41 priority questions that will guide the development of indicators for the FREP to determine if government's objectives for key values, like biodiversity, water quality and soil disturbance, are being achieved;
Implementation of a province-wide voluntary resource stewardship monitoring program related to implementation of operational plans; and
Ministry staff in 18 Forest Districts monitored biodiversity and riparian/fish values on 190 cutblocks and 280 streams.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Status of the "State of the Forests (SOF) Report"	N/A	N/A	Report with 6 indicators	Report with 12 indicators	90% achieved	-10%
Selection Rationale This report will provide a periodic assessment of the state of British Columbia forests, aligning with national criteria and indicators of sustainable forest management.
Results and Variance Explanation This report has been designed for publishing on the Internet, in separate reports published over a four year period, and culminating in a 24-indicator report. The first report, with six indicators (Ecosystem diversity, Protected forests, Timber harvest, First Nations involvement and Law and Certification) was delayed one year, published in March 2005. The second report with six additional indicators (Ecosystem dynamics, Species diversity, Genetic diversity, Ownership and management, Silviculture, and Jobs and communities) was targeted to be published by March 2006. It was delayed by the unforeseen complexity of preparing some of the new indicators, updating of indicators from the first report and preparing overviews of the 12 remaining indicators. The next installment of this report will be available online by the end of July 2006. The ministry intends to follow this with two more reports each including six additional indicators to be published in March 2007 and 2008.
Data Sources and Issues Internal records.
Changes to the Measure This measure has been converted to a percentage of report achievement to provide a better indication of progress, and will be tracked internally to the Ministry starting in 2006/07.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of FRPA values with measurable indicators for effectiveness evaluations	N/A	N/A	N/A	50%	64%	+14%
Selection Rationale This was a new measure in 2005/06 replacing "Number of completed effectiveness evaluations of the legislation." Effectiveness evaluations are used to determine whether policies, plans or practices under FRPA are resulting in the desired objectives being met. These field reviews are necessary to achieve ongoing improvements to the ministry's policy and legislation framework.
Results and Variance Explanation There are 11 values under FRPA. Over the next several years under the FRPA Resource Evaluation Program (FREP) , resource stewardship monitoring and evaluation indicators will be developed for all 11 values. To date, there have been indicators developed for the following seven values: biodiversity, fish-riparian, range-forage, recreation, timber, visual quality, and wildlife. Work is also underway on indicators for water quality, soils, resource features, and cultural heritage. All indicators are described on the FREP website at:http://www.for.gov.bc.ca/hfp/frep.
Data Sources and Issues Internal records.
Changes to the Measure This measure is tracked internally to the Ministry starting in 2006/07.

Objective 6: Protect, manage and improve range resources
for multiple values.

This objective focuses on protecting Crown range resources through administration of rights for its use through the Range Act and agreements under FRPA.

Increasing public pressure on range resources for multiple uses is a risk to achieving this objective. The risk can be managed by 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.

During 2005/06 the ministry established a Range Branch headquartered in Kamloops. The mandate of the branch includes the issuance and management of grazing leases and range extension. This facilitates the development of a critical mass of expertise and resources to ensure a healthy, sustainably managed and effectively and optimally tenured Crown range resource.

Strategies

Allocating, administering and managing range use. For 2005/06, 93 per cent of all available Crown range was allocated under tenure. With the formation of the Range Branch and associated resources it is anticipated that this percentage will increase in 2006/07. The Range Branch has also started the ongoing review and approval of range use plans and range stewardship plans in accordance with the FRPA.
Evaluating rangeland health and effectiveness of range management practices. During 2005/06 the health and effectiveness of range management practices were evaluated on alpine ranges and on one stream. The evaluation of forage quality and productivity, through the collection of vegetation and soils data from Range Reference Areas also continued.
Restoring rangeland ecosystems degraded by forest ingrowth, forest encroachment and invasive plants. See performance measure report below.
Promoting an understanding of rangeland management for multiple values. The ministry, in collaboration with the British Columbia Cattlemen's Association produced 5,500 infoflips to assist ranchers, guide outfitters, and range management professionals and consultants in understanding the legal requirements, liabilities and responsibilities under FRPA. Under the range land health brochure series, the branch produced and published a methodology for monitoring Crown range. Additionally, the branch initiated the ongoing development of expertise in range extension.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Area restored to open forest and grassland (hectares)	N/A	N/A	3273	4100	2447	-1653
Selection Rationale A measure of the ministry's effectiveness in restoring rangelands that have been degraded by invasive plants or in-growth of trees. Areas are restored through treatments such as partial cutting, controlled burning and biological or chemical control of invasive species and are calculated as the area in hectares restored.
Results and Variance Explanation There was a restricted burning window in 2005/06, which prevented planned controlled burning treatments to restore rangelands. However, an expanded restoration program in 2006/07, weather permitting, should make up some of this shortfall.
Data Sources and Issues Data source for this measure is the Districts that are carrying out restoration treatments.
Changes to the Measure This measure is tracked internally to the Ministry starting in 2006/07.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of available Crown range under a form of agreement	N/A	95	91	92	93	+1
Selection Rationale 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. In the past this measure was based on animal unit months, but the change to range agreement areas makes it more representative of the agreement tenuring process.
Results and Variance Explanation Range agreements were made available as targeted in 2005/06.
Data Sources and Issues Data are collected from the current records of forest districts.
Changes to the Measure None.

Objective 7: Encourage long-term economic sustainability by mitigating the impacts of mountain pine beetle on livestock production and range use (includes provincial and federal support for Mountain Pine Beetle Action Plan implementation).

This objective reflects the ministry's intent to mitigate the impact of mountain pine beetle on livestock production by controlling livestock distribution and protecting environmental values in affected communities.

Progress on achievement of this objective is described in the Mountain Pine Beetle Action Plan Report in Appendix A1.

Objective 8: Promote compliance and ensure statutory obligations
are enforced.

Protecting the province's forest and range resources is central to fulfilling the Forest Service's mandate by upholding the law. While part of managing for sustainable forest resources is ensuring that appropriate regulatory requirements are in place, an equally important part is to ensure that forest operators are achieving these statutory obligations. Achieving both objectives will provide confidence that our forest and range resources are being managed in a sustained manner.

A compliance and enforcement regime for FRPA 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 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.

Strategies

Implementing a new compliance and enforcement regime for FRPA and a new compliance and enforcement regime for pricing and revenue including staff training on FRPA and Forest Act changes; and implementing quality assurance principles and procedures;
Monitoring the use of the Special Provincial Constable application by the Solicitor General; and
Assessing FRPA implementation and new Forest Act provisions to determine the compliance and enforcement program readiness for increasing resource emphasis on revenue and forest crimes.

Results

Progress towards this objective and the above strategies in 2005/06 included:

All staff have completed training on FRPA and received guidance on Forest Act changes. Training priorities for each level in the organization within the compliance and enforcement training matrix have been substantially completed to 85 per cent.
Regional quality assurance principles and procedures were continued during 2005/06. The Provincial quality assurance model is under development.
Special Provincial Constable (SPC) applications were approved by the Solicitor General.
Policy development for implementation of an independent/integrated organizational model was completed.
Assessment of FRPA implementation and new Forest Act provisions is ongoing. Resources have been reallocated from forest practices to pricing and forest crimes as required.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of high and very high priority sites inspected for forest and range practices compliance	N/A	82.6	81.6	85.4	86.7	+1.3
Selection Rationale Site visits are targeted to available very high and high priority sites where environmental, social and/or economic values have been identified as being at high risk. Note: In 2005/06, the transition to full implementation of the Forest and Range Practices Act* with five different vintages of forest practices legislation active on the same land base continued. It added complexity and challenges to inspection performance. These were: the Forest Act, the Forest Practices Code of British Columbia Act, the Forests Statutes Amendment Act (No. 2), 2002(Bill 75), the Forest and Range Practices Act(Bill 74), and the code pilot projects established by regulation under Part 10.1 of the Forest Practices Code of British Columbia Act.
Results and Variance Explanation High priority sites were inspected as planned in 2005/06.
Data Sources and Issues Data are from the Compliance Information Management System.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of high and very high priority sites inspected for pricing and revenue compliance	N/A	83	84.4	85	82.8	-2.2
Selection Rationale Site visits are targeted to priority sites where, social and/or economic values have been identified as being at high risk.
Results and Variance Explanation The achievement is within the acceptable variance for this measure.
Data Sources and Issues Data are from the Compliance Information Management System.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 9: Actively foster sustainable management and
improve the public forest and forage asset base.

This objective was slightly reworded for the 2006/07 service plan to: Sustainable forest management is fostered through incremental improvements to the public forest asset base.

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

In the 2006/07 service plan, the second Forest Investment objective from 2005/06 under Goal 3 (Sound governance and effective and efficient delivery of forest investments to assist government to develop a globally recognized, sustainably managed forest industry) was collapsed into the above objective. This reflects that the governance and overall administration of the Forest Investment Account and agreements with third-party administrators, is one component of the overall objective of fostering sustainable forest management.

Fostering sustainable forest management is pursued through all of the FIA programs, but especially the Land Base Investment Program. Investment dollars are directed to incremental activities on public land — enhanced forestry (stand establishment and treatment), watershed restoration and rehabilitation and resource inventories that support sustainable forest management and increase allowable annual cuts. Risks associated with achieving FI 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.

In 2005/06, each FIA program contributed towards supporting investments in provincial forest resource initiatives (e.g., Mountain Pine Beetle action plan, new wood products and marketing, knowledge and information, and incremental forest land base activities) in an effort to maintain and improve the long-term sustainability and health of the province forest and range resources. Further detailed information is available in Appendix A4 on the accomplishments in 2005/06 of FIA program expenditures.

Strategies

Acquire better information about forest resources; foster comprehensive strategic land-use planning; facilitate science-based utilization of the resource.
Over $31 million was expended in 2005/06 under the Land Base Investment (LBIP), Small Tenures, Crown Land Use Planning Enhancement, Tree Improvement and Forest Science Programs towards this strategy. Accomplishments associated with this expenditure can be found in Appendix A4.
Support the feasibility of third-party certification; fund reforestation of areas denuded naturally, or by harvesting before 1987.
Approximately $9 million was expended in 2005/06 under the LBIP and Small Tenures program towards this strategy. Indirectly related to this strategy, an additional $8.8 million was expended towards mitigating the mountain pine beetle infestation, other significant forest health pests and disease, and invasive plants that affect the denudation of forest and range lands in the province. Accomplishments associated with these expenditures can be found in Appendix A4.
Reclaim and enhance site productivity and restore damaged ecosystems.
Approximately $2.9 million was expended under the LBIP and Small Tenures program towards reclaiming and enhancing site productivity and restoring damaged ecosystems. This includes activities associated with maintaining and enhancing forest recreation sites and trails as well as environmental hazards associated with forest roads that are not being used under any authorization by a government agency. Accomplishments associated with these expenditures can be found in Appendix A4.

Performance Measures

Assessment of outcomes and outputs is captured in the summary key outcome indicator and through reports generated by the third party administrators. These reports can be found at:

Ministry Goal 2: Sustainable Forest and Range Benefits.

Forestry generates substantial revenues to the provincial government and remains a major contributor to B.C. current and future economic health. Sustainable forest and range benefits rely on a strong forest economy and a globally competitive forest sector, which the ministry supports through its forestry revitalization policies. The ministry also recognizes the interests of First Nations in accessing forest and range benefits now and in the future.

The ministry tracks overall sustainability of resources on an annual basis using key outcome indicators. Status and trends based on data available for assessment in 2005/06 is as follows:

Key Outcome	Indicator	2005/06 Status/Trend
Strong forest economy	B.C.'s share of the U.S. softwood lumber market	good/stable
Strong forest economy	B.C.'s share of Japan softwood lumber imports	poor/declining
Globally competitive forest sector	Increase in wood product sales to Taiwan, China and Korea	poor/declining
Globally competitive forest sector	Percentage increase in forestland certified by major forest certification process	good / increasing
Revenue benefit from public forest and range resources	Crown forest gross Revenue	fair/declining
Revenue benefit from public forest and range resources	Crown gross revenue from BC Timber Sales	fair/increasing

Status is good, fair or poor; Trends are increasing, stable or declining.

The ministry has put significant effort towards sustaining the benefits of the forest and range resource over the past year. Increased exports to the U.S. have been somewhat offset by a decrease in exports to Japan and the Asia-Pacific region, however the certification of forest land, which increases access to world markets, continued to grow. Within the province gross revenues from BC Timber Sales were up slightly over 2004/05 mainly due to increased volumes reallocated through the forestry revitalization initiative, however the overall trend of Crown forest gross revenue is declining in part due to the increased harvesting of lower quality pine affected by the mountain pine beetle and lower prices for lumber and other forest products. During 2005/06 the ministry continued to offer economic forest opportunities to First Nations through the signing of 29 accommodation agreements increasing the total number signed to 76. As well, access to communities and recreation sites was improved through the replacement of 95 structures on Forest Service roads.

Key Outcome Indictors

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
B.C.'s share of the U.S. softwood lumber market	17.6	18.1	18.1	18	19	+1
Selection Rationale The provincial forest sector is highly dependent on exports. The health and diversity of export markets is a good indicator of the strength of the forest economy. The U.S. is British Columbia's largest customer for softwood lumber.
Results and Variance Explanation B.C. lumber producers increased their market share in the U.S. despite countervailing duties and the increasing Canadian dollar, through improved productivity. In response to record lumber demand in 2005, the U.S. continued to be the dominant export market for B.C. forest products, followed by Japan and Europe. Although B.C.'s share of the U.S. market increased in 2005, the actual dollar value decreased 5.4 per cent due to appreciation of the Canadian dollar.
Data Sources and Issues Economics and Trade Branch calculates this based on American Forest Products Association (AFPA) statistics on U.S. consumption and the Statistics Canada data on B.C. and Canadian exports. Statistics for this indicator are updated on a calendar year basis.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07, and will be used to inform the ministry's strategic context.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
B.C.'s share of Japan's softwood lumber imports	43	40	40	40	37	-3
Selection Rationale Japan is British Columbia's second largest softwood lumber customer.
Results and Variance Explanation As a result of increased competition from Europe and Russia and weakened demand for west coast Douglas-fir and hemlock, B.C.'s share of the Japanese market declined significantly.
Data Sources and Issues Statistics for this indicator are updated on a calendar year basis. Import volumes are published annually by the Japan Wood Products Information and Research Centre.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07, and will be used to inform the ministry's strategic context.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Increase in wood product sales to Taiwan, China and Korea	N/A	34	11	10	-7	-17
Selection Rationale This indicator was added in 2003/04, to track the results of work targeted by Forestry Innovation Investment Ltd. Increasing wood product sales to Taiwan, China and Korea indicates an expansion into new markets for B.C. wood products.
Results and Variance Explanation Because of the strong U.S. housing market, producers focused on the U.S. market when faced with high transportation costs and an appreciating Canadian dollar.
Data Sources and Issues Statistics for this indicator are updated on a calendar year basis using data from Statistics Canada reports of wood exports in dollars. Pulp and paper is not included. China includes Hong Kong.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Percentage increase in forestland certified by major forest certification process	99	48	33	>10	43.5	+33.5
Selection Rationale This is a key outcome indicator of a globally competitive forest sector. Major forest certification processes are the Canadian Standards Association (CSA), Forest Stewardship Council (FSC) and Sustainable Forest Initiative (SFI). The International Standards Organization (ISO) is excluded.
Results and Variance Explanation B.C. forest companies continue to obtain certification at a fast growing rate. Table 5 summarizes the hectares certified by the three major forest certification processes. Specific company information may be obtained from http://www.CertificationCanada.org.
Data Sources and Issues Starting in 2003, the data are expected to be available only twice a year (in December and June) from the Canadian Sustainable Forestry Certification Coalition, and is published at: http://www.CertificationCanada.org. The data represent a December to December, year over year performance. December was chosen as the reporting date in order to meet government's annual reporting timelines. If a forest area has been certified to more than one of the three standards, the area is counted more than once and the hectares certified are therefore not representative as a portion of the provincial forest land base.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07, and will be used to inform the ministry's strategic context.

Table 5: Area of forestland (in hectares) certified by major forest certification processes

Year	Report date	CSA (hectares)	FSC (hectares)	SFI (hectares)	Total hectares certified	Year to year — per cent increase
2005/06	Dec 2005	23 230 560	175 408	18 914 550	42 320 518	43.5
2004/05	Dec 2004	10 830 000	250 984	18 410 550	29 491 534	33
2003/04	Dec 2003	10 200 000	100 291	11 840 550	22 140 841	48
2002/03	Dec 2002	5 330 000	89 130	9 530 550	14 949 680	99
2001/02 (benchmark)	Dec 2001	2 620 000	88 338	4 810 550	7 518 888	—

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Crown forest gross revenue ($ billions)	1.296	0.987	1.322	1.172 (Updated to 1.156 in Jan 2006)	1.145	-0.027
Selection Rationale The Crown forest and range gross revenue is a measure of the value that the public receives from its forest and range resources. The total amount of revenue realized by the ministry and collected by government during the fiscal year includes BC Timber Sales, Timber Tenures, Range Use and other MoFR revenues.
Results and Variance Explanation During 2006/07, the U.S. housing market is expected to soften, resulting in lower prices for lumber and other forest products. With a continuing strong Canadian dollar, it is expected that stumpage revenues and harvest volumes will decline slightly for the next few years.
Data Sources and Issues Data source: Harvest Billing System.
Changes to the Measure None.

Table 6: 2005/06 Revenue (Unaudited) by Category and Forest Region

Revenue Categories	Coast	Northern Interior	Southern Interior	Victoria	Total¹
	(thousands of dollars)
Timber Tenure Stumpage	92,189	398,264	328,549	(3,276)	815,727
Harvest Rents and Fees	6,836	9,750	8,487	(7,607)	17,466
BC Timber Sales	49,513	126,805	100,501	(3,074)	273,746
Export	3,723	267	121	120	4,230
Range	4	408	1,528	1	1,941
Waste	3,527	368	231	(171)	3,955
Penalties	1	1	15	0	16
Interest	577	718	190	(477)	1,008
Miscellaneous	770	178	59	69	1,076
Federal Government Bark Beetle Transfer	0	0	0	26,154	26,154
Total	157,140	536,759	439,680	11,738	1,145,317

¹	Totals may not add up due to rounding.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Crown gross revenue from BC Timber Sales ($ millions) (unaudited)	n/a	185.7	266.1	301.6	273.7	-27.9
Selection Rationale Crown forest gross revenue from BC Timber Sales is the total amount of money earned by BC Timber Sales during the fiscal year (includes stumpage (upset and bonus bids), and misc. revenues).
Results and Variance Explanation The revenue shortfall of $27.9 million or 9.2 per cent is a result of poor forest economic conditions in the coastal market and overall lower than forecast billed rates for timber harvested. While revenue fell short of target in 2005/06, it is still a $7.6 million or 2.9 per cent increase over 2004/05.
Data Sources and Issues Harvest Billing System.
Changes to the Measure This measure is tracked internal to the ministry starting in 2006/07 but will continue to be publicly reported by BC Timber Sales.

Objective 1: Maintain access to markets for B.C. forest products.

This objective reflects the ministry's intent to maintain and grow international markets.

This objective was reworded in 2006/07 to be: Improved access to markets for B.C. forest products which reflects an intention to improve not just maintain market access.

This objective reflects the ministry's intent to maintain the traditional U.S. and Japanese markets and grow in international markets, such as Taiwan, China and Korea. The ongoing effort needed to address the softwood lumber dispute with the U.S. is being managed by the ministry and through partnerships with other ministries, the federal government and Forestry Innovation Investment Ltd.

Strategies

Continuing to pursue free access for B.C. forest products to markets in the U.S.
During 2005/06, the Ministry of Forests and Range continued to pursue free access for B.C. forest products to U.S. markets. To achieve the objective, the province followed a two-track strategy that involved litigation and appeals of the U.S. countervailing duties and discussions aimed towards a negotiated resolution of the softwood lumber dispute.
On April 27, 2006, Canada and the U.S. agreed to the broad terms of an agreement that would end the softwood lumber dispute. It establishes the option of an export tax or quota with reduced tax rates. Canadian regions will choose which option they want. For the purpose of the deal, the Coast and Interior of B.C. are two different regions. The tax and quota levels under the agreement vary, depending on the price of lumber. If lumber prices, as measured by the Random Lengths framing lumber composite price, remain at US$ 355 per thousand board feet or above, there would be no tax or quota. Further, the Agreement will result in the revocation of duties and return to Canadian forest companies of about $4 billion (U.S.).
Continuing work with Forestry Innovation Investment Ltd. (FII) on market access issues.
During 2005/06 FII and the ministry worked more closely on issues of mutual interest such as increasing the exposure of B.C. timber products in the Asia-Pacific region.

Performance Measures

Achievement of this strategy is tracked by the key outcome indicators "B.C.'s share of the U.S. softwood lumber market," "B.C.'s share of Japan softwood lumber imports," "Increase in wood product sales to Taiwan, China, and Korea," and "Percentage increase in forestland certified by major forest certification process."

Objective 2: Recover the greatest value from dead stands impacted by mountain pine beetle, while respecting other forest values and encourage long-term economic sustainability for communities affected by the mountain pine beetle epidemic (includes provincial and federal support for Mountain Pine Beetle Action Plan implementation).

Progress on achievement of this objective is described in the Mountain Pine Beetle Action Plan Report in Appendix A1.

Objective 3: Ensure that the public receives fair value for the use of its forest and range resources now and in the future.

Asserting the financial interests of the Crown by pricing and billing for revenue from Crown forest and range resources supports achievement of the Government's Five Great Goals. Progress towards this objective in 2005/06 was achieved in that the public is receiving fair value for the use of the resource, however the amount of revenue has been declining as identified in the Crown forest gross revenue measure.

Strategies

Implementation of the Interior market-based pricing system.
Progress towards this strategy in 2005/06 was continuously monitored. The Interior Market Pricing System is expected to be implemented July 1, 2006.

Performance Measure

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Status of the implementation of the market-based pricing system	N/A	Coast implemented February 29, 2004	Interior implementation (readiness in 2005)	Implement in 2005/06	Implementation expected July 1, 2006	—
Selection Rationale The market-based pricing system is expected to increase the competitiveness of the forest industry and provide greater incentives for capital re-investment. It may also lead to greater variability in provincial revenues.
Results and Variance Explanation The timing of the implementation of the Interior Market Pricing System is dependent and linked to the outcomes and timelines of the provincial and ministry policy reforms and initiatives (i.e., softwood lumber litigation and negotiations) currently underway.
Data Sources and Issues: N/A
Changes to the Measure This measure will not be tracked and reported by MOFR any longer, as the system in the Interior will be implemented on July 1, 2006.

Objective 4: Provide opportunities to generate wealth
from the forest resources.

This objective was changed to Use of the AAC is optimized through effective tenuring for the 2006/07 Service plan. This change more accurately reflects that Crown tenures are the main means through which the ministry provides opportunities to generate wealth through the forest resources.

Crown tenures are used to allocate, manage and monitor forest resource opportunities to meet social, economic and other public forest policy objectives. A fair and effective tenure system ensures that timber apportioned in timber supply areas is available to licensees. The ministry is consulting with First Nations to determine if aboriginal interests would be affected by changes in apportionments and Crown tenure issuance processes. First Nations are benefiting from these processes through the First Nations Forest Strategy, which has the objective to increase First Nation participation in the forest sector. 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 new tenures from additional volume approved for cutting as part of mountain pine beetle salvage operations. During 2005/06 most of the take-back volume was reallocated and disposition of the remaining mountain pine beetle uplift is currently committed to First Nations through direct award opportunities.

Strategies

Ensuring that timber apportioned in timber supply areas (TSAs) is available to licensees through tenure.
For 2005/06 the ministry was diligent in the disposition of available volumes through the issuance of licences in a timely manner, however, issuance of licences to First Nations for mountain pine beetle uplift volumes and delineation of operating areas for reallocation volume is taking some additional time to complete the negotiation process. As well during 2005/06 the issuance of new woodlot licences was put on hold while an internal review, in consultation with the Federation of B.C. Woodlot Associations, is completed.
With much of the forestry revitalization legislation in place, the primary focus for 2005/06 was with its implementation.
Forest revitalization legislation including revisions was successfully implemented as required.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of Timber Supply Area AAC under a form of tenure	97	94.7	88	90	88.8	-1.2
Selection Rationale This is a measure of the effectiveness of the ministry apportionment of the AAC within a TSA to various programs, and its issuance of tenures, such as Forest Licences and Community Forest Agreements, under these programs. Tree Farm Licences, woodlot licences, and tenures under the BC Timber Sales program are not included.
Results and Variance Explanation The targets for this measure were reduced in 2005/06 due to the AAC uplifts resulting from the bark beetle infestation, and the reallocation of 20 per cent of the logging rights from major licensees to create new opportunities for new entrepreneurs and small operators. Additional resources were targeted in 2005/06 to mitigate the reduction, and the measure has been achieved within acceptable variance for the accuracy required.
Data Sources and Issues Data are from the Apportionment System.
Changes to the Measure This measure is tracked internally to the ministry in 2006/07, and may be re-introduced in the 2007/08 Service Plan.

Objective 5: Provide a reliable and environmentally sound
forest road network.

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 FSR bridges, and deactivating Forest Service roads no longer required.

Achieving this objective is largely influenced by access to funding and resources 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, the costs of mitigating environmental damage and re-establishing access are higher over time, when not addressed in the short term.

In 2005/06, increased funding was targeted to the replacement of priority bridges that have deteriorated on non-industrial use Forest Service roads that access communities, rural residences and priority recreational areas.

The 2005/06 bridge replacement program was successfully implemented. Ninety-five bridges on Forest Service roads were replaced in 2005/06. In addition to the fully replaced bridges, another nine structures had designs completed and materials acquired and are awaiting installation; nine others had designs completed for future use. The total number of bridge projects worked on was 113.

Strategies

Developing legislation, policy and standards for all forest roads.
Work has commenced on the development of the Resource Roads Act. The Ministry of Forests and is the sponsoring ministry. The legislation is anticipated to be introduced to the legislature in the spring 2007. The Resource Roads Act will harmonize administration and standards of resource roads under a single act and eliminate conflicts related to road use as a result.
The Engineering Manual was revised to be a comprehensive document to capture MoFR access-related policy and procedures into a single manual. The policy in the Engineering Manual will be used by both BC Timber Sales and the operations division of the Ministry of Forests and Range.
Standards were developed in 2005/06 for bridge materials acquired by the ministry, and work to review and revise bridge standards is continuing.
Maintenance standards, for maintenance cost-sharing with the forest industry were drafted and reviewed. Implementation is scheduled for the 2006 field season.
Carrying out maintenance activities on Forest Service roads in conformance with legislation and policies.
The funding policy for road and structure maintenance, road deactivation, and road closure was amended and updated for fiscal 2006/07 to: create a subset of Forest Service roads called Recreation Use Forest Service roads and to provide criteria for their maintenance; and to address criteria for funding maintenance on non-status roads.
Providing low order maintenance, to ensure access-related surface and structural maintenance as necessary for safe public access to priority recreational areas.
The fiscal 2006/07 funding policy for road and structure maintenance, road deactivation, and road closure was amended and updated. The funding policy was revised to capture maintenance of Recreation Use Forest Service roads to now provide a recreation access level of maintenance to both "high value" Forest Recreation sites and trails and to "important" recreation areas, including selected provincial parks and recreation features.
Balance the industrial, commercial and public use of the forest road network in a cost effective manner reflecting the level of use, which may include deactivation and transfers to other agencies or organizations.
The proposed Resource Roads Act will provide a measure of balance between resource agencies.
Discussions for rationalizing the forest road network and establishment of a memorandum of understanding with the Ministry of Transportation for road transfers between agencies are ongoing.

Performance Measures

Performance Measure	2005/06 Target	2005/06 Actual	Variance
Per cent of key engineering activities substantially achieved (as per aggregate index)	90	100	+10
Selection Rationale This measure was introduced in 2005/06 as a pro-rated measure of overall performance in achieving key engineering activities consisting of Forest Service road and bridge inspection, maintenance and deactivation.
Results and Variance Explanation Due to the methodology of measuring results, the results were skewed inordinately high by the Resource Tenures and Engineering Branch exceeding its target on the number of effectiveness evaluations.
Data Sources and Issues Data source: tracked internally, calculated from information collected by the forest districts.
Changes to the Measure This measure will not be tracked in the future due to difficulty with the methodology of collecting and analyzing the data as an aggregate index.

Performance Measure	2005/06 Target	2005/06 Actual	Variance
Per cent of kilometres of Forest Service roads, where the district manager is directly responsible for maintenance, that are open for public access	> 90	100	+10
Selection Rationale The purpose of this new measure introduced in 2005/06 is to provide a measure of Forest Service roads open for public access in accordance with the maintenance policy. Forest Service roads that are maintained by district managers do not remain static in number. Forest Service roads that are used by industry may revert to the district manager for maintenance due to inactivity by the industrial user. Where there is a requirement for public access, as determined by the district manager, the ministry may assume responsibility for maintaining a Forest Service road.
Results and Variance Explanation All Forest Service Roads under the responsibility of the ministry were maintained and open for public access throughout 2005/06.
Data Sources and Issues Information is reported by each district.
Changes to the Measure None.

Performance Measure	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent reduction (-) or increase (+) to the Forest Service road network	-0.9	0	+0.15	+0.15
Selection Rationale The measure reflects the strategy of the ministry to balance the industrial, commercial and public use of the forest road network in a cost-effective manner reflecting the level of use. The baseline for this measure is the total kilometres of Forest Service roads excluding BC Timber Sales Forest Service roads which was 12 500 km in 2003/04, less 116 km in 2004/05.
Results and Variance Explanation The 0.15 per cent increase represents a total of 51 kilometres added to the road network in 2005/06, which is within 99% of the target of 0 per cent increase to the 12,500 km network.
Data Sources and Issues Information is reported by the districts.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 6: Increase First Nation opportunities for participation in the forest sector, provide stability on the land base, and ensure forestry operations respect First Nation interests on the land base.

This objective supports the ministry's intent to provide leadership, negotiation skills, advice and overall coordination with respect to forest and range 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. To assist in meeting this objective, the ministry has been and is continuing to negotiate Forest and Range Agreements/Opportunities (FRA/FRO) with First Nations. Many of these agreements also outline a streamlined process of consultation and accommodation for aspects of First Nations asserted rights and title.

The Ministry of Forests and Range also has a key role to play in supporting the Ministry of Aboriginal Relations and Reconciliation in treaty negotiations and furthering the New Relationship. The MoFR seeks to work on the following strategies in an open, transparent and collaborative approach with First Nations.

Strategies

Consult with First Nations in accordance with the Crown's legal obligations.
It is necessary that the ministry acts in a manner consistent with existing legislation, case law and government policy to determine if aboriginal interests may be impacted by forestry activities. The establishment and maintenance of cooperative relationships with First Nations in the management of forest resources is a strategic ministry priority that directly affects fibre flow, the forestry employment base, the stability of the forest industry and the provincial economy. In addition, dealing with First Nations interests in an upfront and decisive manner will ultimately help to provide for understanding between different groups, and avoid disruptions to the ministry's day-to-day operations.
The Government of B.C. and leaders from provincial First Nations' organizations are working together to develop a common framework on how to implement consultation and accommodation agreements since the Supreme Court of Canada (SCC) ruled on the Haida and Taku cases. While this work continues, the ministry will pay close attention to the SCC decision and continue to follow the steps set out in approved consultation guidelines. When the corporate work is completed, the ministry will implement the new consultation framework.
Negotiate agreements with First Nations:

implement the First Nations Forest Strategy (FNFS) offering access to economic forest opportunities to First Nations through accommodation agreements; and
increase First Nations' participation in the forest sector through direct award tenures.

Forest Act

Support for priority treaty tables.
The ministry continues to provide support to priority treaty tables under active negotiation by the Ministry of Aboriginal Relations and Reconciliation. In addition to providing support to the tables, specific policy initiatives dealing with forestry mandates were developed. The following treaty tables were under active negotiation in 2005/06, with MoFR providing support to both policy and mandate development and negotiation. They are LheidlfT-enneh, Maa-nulth, Sliammon, Yekooche and Yale. MoFR also continues to be involved in actively implementing the Nisga'a treaty.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Total number of Forest and Range Agreements
• Offered to First Nations	n/a	71	101	142	141	-1
• Signed with First Nations		22	47	75	76	+1
Selection Rationale These agreements provide a period of stability for forest and range resource development. They include the provision of economic benefits in the form of tenure and revenue sharing, and many agreements define a process between the ministry and a First Nation for consulting on and addressing aboriginal interests. These agreements begin with an offer to a First Nation to enter into an agreement; the time required to conclude negotiations is variable. Some agreement offers include more than one First Nation in the offer. The number of eligible First Nations to be offered agreements is 176. Offers to negotiate agreements will be made to all 176 eligible First Nations by the end of fiscal 2006/07. Although offers are made to all eligible First Nations, it is anticipated that not all offers will be accepted or result in signed agreements.
Results and Variance Explanation Performance measures were substantially achieved as targeted.
Data Sources and Issues Data source: tracked internally.
Changes to the Measure The number of offers to First Nations is being tracked internally to the ministry starting in 2006/07. The number of agreements will continue to be tracked in the ministry service plan.

Objective 7: Provide a credible reference point for costs and
pricing of timber harvested from public land in B.C.

This objective was combined with Objective 8 (below) in the 2006/07 service plan to create the following new objective: "Using sound forest management, net revenue to the province is optimized and a credible reference point for costs and pricing of timber harvested from public land in B.C. is provided."

This objective supports: market-based pricing to ensure that the public receives fair market value for the use of its forest resources; the generation of revenue to the Province; the ministry as a major contributor to B.C.'s current and future economic health; and a strong forest economy and competitive forest sector.

Objectives 7, 8 and 9 are accomplished through the BC Timber Sales core business area. BC Timber Sales is an arm's length program within the ministry, with operational and financial independence from regional and district operations. The program markets Crown timber to support market pricing and capture the value of the timber assets for the public. The objectives, performance measures and results included in this section are only a subset of those tracked and reported on by BC Timber Sales. For full information on BC Timber Sales' 2005/06 performance refer to the 2005/06 BC Timber Sales Annual Service Plan Report at: http:/www.for.gov.bc.ca/bcts.

Results

BC Timber Sales continued to make significant progress toward achieving a sufficient market presence to be a credible reference point. The per cent of the total provincial ministry annual timber volume available that was auctioned by BC Timber Sales during the year increased 28 per cent over the prior year.

Strategies

Implementing systems and processes to ensure that the program cost and pricing data are complete, accurate, reliable, verifiable, and are contained; and
Negotiating operating areas and the purchase assets on lands re-assigned through the timber reallocation process.

During the year BC Timber Sales continued to implement and enhance systems and processes to ensure that cost and pricing data are complete, accurate, reliable, verifiable, and are contained. Negotiations over operating areas and the purchase assets on lands re assigned through the timber reallocation process are now largely complete. Negotiations for areas and final agreement on payments for soft assets will be finalized in fiscal 2006/07 allowing BC Timber Sales to increase focus on development of new timber sales across the province.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of total timber volume available, auctioned by BCTS	n/a	n/a	14	15	18	+3
Selection Rationale Per cent of the total provincial ministry annual timber volume available that was auctioned by BC Timber Sales during the year. This is a key outcome indicator of the program success in supporting the market based pricing system and being a credible reference point for costs and pricing by auctioning an increasing proportion of provincial timber.
Results and Variance Explanation Staff efforts towards developing and offering timber for auction and timber reallocation during the year contributed to BC Timber Sales exceeding its target by auctioning 18 per cent of the total provincial timber volume available during the year, which is 28% higher than in 2004/05.
Data Sources and Issues Revenue Branch and the ministry apportionment system.
Changes to the Measure None.

Objective 8: Optimize BCTS net revenue to the province, within the parameters dictated by its benchmarking mandate and sound forest management.

(This objective was combined with Objective 7 in the 2006/07 service plan as described above)

This objective supports the provincial government and the ministry as major contributors to the current and future economic health of the province. BC Timber Sales strives to optimize, rather than maximize, net revenue. To do this, BC Timber Sales seeks a balance between generating revenues, being a credible reference point and ensuring safe and sound forest management practices.

Results

Poor forest economic conditions in the coastal market and overall lower than forecast billed rates for timber harvested adversely impacted on gross revenues resulting in BC Timber Sales achieving 81.5 per cent of its net revenue target for the year.

Strategies

Containing costs and maximizing auction bids, within the parameters of the program's benchmarking mandate by implementing systems and processes to support effective decision-making and taking steps to reduce bidder risk;
Implementing requirements of the Forest and Range Practices Act; and
Increasing the volume of timber sold under certification.

During the year BC Timber Sales continued efforts to contain costs by identifying and implementing contracting efficiencies, implementing systems and processes to support effective decision-making. In 2005/06, 93 per cent of timber developed for auction was "fully developed" to reduce bidder risk and maximize auction bids.

BC Timber Sales made significant progress towards to having all forest stewardship plans submitted for approval by September 2006 and anticipated approval either by the end of 2006 or early in 2007.

Increasing the volume of timber sold under certification is a key part of BC Timber Sales' commitment to sustainable benefits and employing sound forest management practices. In 2005/06 100 per cent of BC Timber Sales' Business Areas achieved environmental management system certification under the International Standards Organization (ISO) 14001 standard.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Crown net revenue from BC Timber Sales ($ millions)	143.0 (Note 1)	101.1	150.2	153.2	124.8	-28.4
Selection Rationale Net revenue is gross revenue net of capitalized expenses and period costs. This is a measure of the success of BC Timber Sales in optimizing revenue to the province. Note 1: 2002/03 net revenue was achieved as the former Small Business Forest Enterprises Program prior to the creation of BC Timber Sales April 1, 2003.
Results and Variance Explanation Variance due to under achievement of target gross revenues. Capitalized expenses were on target for the year. The lower gross revenue primarily resulted from the poor forest economic conditions in the coastal market and overall lower than forecast billed rates for timber harvested.
Data Sources and Issues Data source: Harvest Billing System and the Corporate Accounting System (CAS).
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07 but will continue to be publicly reported by BC Timber Sales.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Average cost per cubic metre of volume developed by BCTS	n/a (Note 1)	n/a (Note 1)	8.57/m3	13.90/m3	8.24/m3	-5.66/m³
Selection Rationale This is a measure of BC Timber Sales' performance in containing costs contributing towards optimizing net revenue and is equal to the average inventory cost of developed timber. Inventory costs include all costs incurred to plan, develop and sell timber. Silviculture costs and period costs, such as corporate administrative overhead, are not part of the cost of inventory. Note 1: This was a new measure in 2004/05 replacing the previous "Average cost per cubic metre of volume sold." The change from volume sold to volume developed is to reflect that the majority of costs are incurred during the development of a timber sale rather than later when the sale is sold.
Results and Variance Explanation Continuous improvement, contract efficiencies and lower development costs associated with timber adjacent to existing roads and mountain pine beetle layout contributed to the savings.
Data Sources and Issues Data source: Corporate Accounting System.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07 but will continue to be publicly reported by BC Timber Sales.

Objective 9: Provide opportunities for BC Timber Sales customers
to purchase timber in an open and competitive market.

This objective was reworded in the 2006/07 service plan to: "Opportunities are provided for BCTS customers to purchase timber in an open and competitive market."

This objective supports a strong forest economy and competitive forest sector. BC Timber Sales seeks a balance between providing opportunities for customers to purchase timber, generating revenues, and being a credible reference point. BC Timber Sales also ensures safe and sound forest management practices.

Results

BC Timber Sales continues to provide opportunities for customers to purchase timber in an open and competitive market in 2005/06 exceeding its target volume offered by 10.2 per cent.

Strategies

Pursuing innovative methods to build timber development capacity and inventory levels;
Eliminating restrictions and barriers to program participation over time;
Improving bidder information; and
Analyzing and addressing reasons for no bid sales.

During 2005/06 BC Timber Sales continued to make progress on these strategies.

In 2005/06 BC Timber Sales developed a 17.7 million cubic metres of timber as inventory for auction — an increase of 2.3 million cubic metres or 15 per cent over the previous year. While the number of timber sales offered that initially received no bids was higher than projected, actions taken as a result of ongoing analyses of reasons for these no bid sales contributed to an overall reduction of no bid sales by 11.4 per cent over the previous year.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Volume offered for sale by BCTS (millions of cubic metres)	n/a	11.2	12.8	14.8	16.3	1.5
Selection Rationale The volume offered for sale is the gross total timber volume that BC Timber Sales offers into the market and includes all forms of tenure administered by BC Timber Sales. Therefore, in addition to advertised auction sales, volume offered for sale includes all volume associated with forestry licences to cut, and previously committed volumes for ongoing value-added sales, non-replaceable forest licences, and other forms of tenure. This output measure indicates the program's success in providing opportunities for customers to acquire timber.
Results and Variance Explanation A higher than projected volume of timber sales offered that received no initial bids resulted in BC Timber Sales offering more timber to the market than planned to achieve its timber volume sold target.
Data Sources and Issues Data Source: BC Timber Sales Offices.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07 but will continue to be publicly reported by BC Timber Sales.

Ministry Goal 3: Highly Effective, Innovative and
Responsive Organization.

This goal was previously "An effective and responsive forest manager." The goal was reworded in the 2006/07 service plan to more accurately reflect the focus on organizational improvement.

In 2005/06 the ministry continued its revitalization with a new vision and revised mission and values statements that reflect the ministry's role as steward of the province's forest resources. The effectiveness in achieving our core purpose of ensuring that sustainable forest resources deliver sustainable forest and range benefits for the people of British Columbia depend upon expert and knowledgeable staff who will continue to be innovative, responsive and performance-focused. To this end, the ministry focused on knowledge management, succession planning, leadership development, being a learning organization and improving organizational wellness through the Road Ahead initiative.

Three key indicators were established to assess progress towards this goal at the highest outcome level. Two of these focus on public perception of the Forest Service as an effective organization. The third assesses the efficiency of the administration of the Forest Investment Account (FIA). The ministry oversees the effectiveness of third-party administrators who are responsible for the achievement of FIA objectives and strategies. Administration of this program is key to achievement of ministry objectives in four key business areas, and performance targets were achieved as planned in 2005/06.

Although the two public perception indicators were not measured in 2005/06, a workplace employee survey was completed, which provides one outcome of organizational effectiveness and wellness. One key finding from the survey showed that 71 per cent of staff are satisfied with their jobs — a 17 per cent increase over the 54 per cent satisfied in the 2002 survey.

As an overall assessment, the ministry is continuing to improve its organizational wellness, and is moving steadily towards being highly effective, innovative and responsive.

Key Outcome	Indicator	2005/06 Status / Trend
An effective organization	Per cent of British Columbians who agree that the Forest Service can be trusted to protect and manage our public forests	not measured in 2005/06
	Per cent of British Columbians who feel the Forest Service effectively protects and manages our public forests	not measured in 2005/06
	Employee satisfaction with the workplace	good/ improving
Effective delivery of Forest Investment activities and outcomes through third party administrators	The achievement of performance targets by the third-party administrators	good/ improving

Status is good, fair or poor; Trends are increasing, stable or declining.

Key Outcome Indicators

The following key outcomes and indicators have been identified as measuring progress towards achievement of this goal.

Key Outcome Indicators	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
Per cent of British Columbians who agree that the Forest Service can be trusted to protect and manage our public forests.	60	Measured every 2nd year	52	Not measured this year	N/A	N/A
Per cent of British Columbians who feel the Forest Service effectively protects and manages our public forests.	73	Measured every 2nd year	69	Not measured this year	N/A	N/A
Selection Rationale These indicators were selected as measuring the ultimate outcome of an effective public service organization responsible for protecting and managing public forests. The public trust indicator reflects the percentage of British Columbians who answered that they trust the Forest Service to manage and protect Crown forests for the long term. The effectiveness indicator is based on five variables (forest fire protection, control of pests and disease, reforestation, environmental protection, and regulating forest companies) that were combined for the single measure of overall effectiveness, which was measured as 73 per cent in the 2002/03 survey.
Results and Variance Explanation Not measured this year. The next survey will be completed in fall 2006.
Data Sources and Issues These measures are obtained from a telephone survey of 1,000 British Columbians selected through a random sampling methodology. The survey is conducted by BC Stats, every two years.
Changes to the Measure The per cent of British Columbians who feel the Forest Service effectively protects and manages our public forests, will continue to be reported in the 2006/07 service plan. The public trust indicator will continue to be measured in the survey done by BC Stats, but this information will be tracked internally by the ministry starting in 2006/07.

Key Outcome Indicator	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Projection	2005/06 Actual	Variance
The achievement of performance targets by the third-party administrators	N/A	N/A	N/A	95	93.8	1.2
Selection Rationale This measures the key outcome of effective administration of the Forest Investment Account (FIA). The percentage is based on the number of performance targets developed by FIA third-party administrators PricewaterhouseCoopers, The Federation of B.C. Woodlot Association, and Forestry Innovation Investment Ltd. that are achieved within 85 per cent.
Results and Variance Explanation In 2005/06 third-party administrators achieved 30 of 32 performance targets. PwC did not achieve the performance target of an average of five business days from project approval to issuance of payment. An average of 7.8 business days was reported. The difference is largely attributed to delays in meeting administrative obligations on the part of the funding recipients. FII did not achieve the completion of the second phase of the China Dream Home Canada Demonstration Centre due to regulatory approval delays in China. Projects are now fully underway and on-target to be completed by December 2006.
Data Sources and Issues Based on performance measures reported in annual reports submitted by third party administrators.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 1: Sound governance and effective and efficient delivery of forest investments to assist government to develop a globally recognized, sustainably managed forest industry.

The intent of this objective was to address the overall administration of the Forest Investment sub-vote and agreements with third-party administrators. In 2006/07, this objective has been moved to a strategy under Objective 8, under Goal 1, as explained in that section.

Strategies

Development and implementation of sound business practices incorporating strong financial controls;
A performance management framework; and
A monitoring, audit and evaluation program.

An overview of the FIA and program governance structures is provided in Appendix A4 Table 1. These structures manage the strategies identified above by taking necessary actions to ensure the effective and efficient delivery of each program. In 2005/06 the governance of the LBIP was strengthened by formalizing the LBIP steering committee to include recipients' representative of each of the forest regions to assist in providing direction for the program and act as a liaison with the CLUP, and Small Tenures programs. Also in 2005/06 a review of the LBIP, at the request of the ministry, conducted by the Ministry of Finance Internal Audit and Advisory Services was completed. Recommendations have been addressed and will be implemented in 2006/07. A similar review of the Forest Science Program was initiated in 2005/06 and is expected to be completed in 2006/07.

Performance Measures

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Per cent of FIA governance performance measure targets substantially achieved	N/A	N/A	N/A	90	93.3	+3.3
Selection Rationale This measure was introduced in 2005/06 to provide a summary of the achievements under the Forest Investment Account (FIA) seven programs: Land Base Investment, Small Tenures, Tree Improvement, Crown Land Use Planning and Enhancement, Forest Science, Product Development and International Marketing.
Results and Variance Explanation Total performance measures for all FIA programs is 45. 42 of the 45 performance measures in 2005/06 were substantially achieved.
Data Sources and Issues FIA program annual reporting by third-party administrators and ministries.
Changes to the Measure This measure is tracked internally to the ministry starting in 2006/07.

Objective 2: Ensure a responsive and effective management framework and infrastructure that supports the achievement of ministry goals and objectives.

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.

Strategies

Continue to identify, implement and continually improve business practices and processes to increase efficiency and effectiveness.

Work towards this strategy in 2005/06 included:

Redesign and streamlining of the corporate policy development process.
Redesign of the contract management and accounts payable processes to increase efficiency after consolidation of service.
Review of the privacy, information, records and litigation filing process to provide a higher level of client service.
Redesign and streamlining of the new woodlot licence program business processes; and
Redesign of fire protection reporting with systems development underway for implementation over the next two years.

A continuous improvement toolkit was developed for staff.
A continuous improvement module was delivered at the University of Northern British Columbia and Thompson Rivers University to provide continuous improvement training to future MoFR employees.
60 MoFR staff were trained in "learning organization" tools and techniques and a learning organization community of practices was established.
An activity-based management process was developed to analyze financial benefits of continuous improvement projects.
A high level "mapping the ministry business" project was undertaken to better document and communicate MoFR business processes for the public and clients.

Continue to implement and integrate performance management processes and evaluate the validity of performance measures.
Ministry business area teams completed strategic planning tasks for 2006/07 including review and improvement of objectives, strategies and performance measures using updated logic models. A pilot evaluation of one business area was completed in 2005/06, including recommendation of a methodology for ongoing periodic review of measures. Quarterly reporting of progress towards all published and internal performance measure targets, and linkages between budget allocations and performance measures, were strengthened.
Implement policy and legislation frameworks.
The ministry completed its review of the corporate policy and legislation processes and the redesigned processes have been implemented as of April 2006.
Implement a risk management framework that will enhance strategic and operational planning.
Ministry business area teams, as part of their strategic planning tasks, completed analysis of risk to achieving corporate objectives. This included identifying risks, rating likelihood and consequences, reviewing existing controls and recommending mitigation strategies, as part of the budgeting process. The framework is now substantially in place to inform ministry annual planning and decision making.
Continue to implement and evaluate the ministry Road Ahead (Human Resources) Strategy (succession planning, retention, leadership, organizational wellness).
The ministry entered its second year of a three-year plan in July 2005. To evaluate the human resources strategy, the ministry conducted a staff survey in June 2005 to establish benchmarks for progress. the survey measured employee satisfaction in the four key areas: leadership; workplace wellness; learning organization and workforce planning, as well as conducting a "values audit" section where employees could comment on whether they felt the organization was living its values. One key finding was that in a 2002 workplace employee survey just over one-half (54 per cent) of those surveyed were satisfied with their jobs in the ministry while in 2005, almost three-quarters (71 per cent) reported being satisfied, representing a 17 per cent increase in satisfaction between 2002 and 2005.

Performance Measures

Performance measures of achievement towards this objective are tracked internally to the Ministry.

Objective 3: To be a high performing and learning organization.

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.

This objective was combined with Objective 2 above for the 2006/07 service plan. It had been highlighted in 2005/06 as the ministry focused on a "Road Ahead" initiative (described in strategies), which is now becoming part of the way the ministry does business. Reflecting this, the objective has also become a part of the ministry's mission statement.

Strategies

To continue building an innovative and even higher performing organization that focuses on both business and people performance, the ministry will fully implement the Road Ahead initiative that focuses on: mandate — vision, mission and values; stewardship; leadership development; learning organization; workforce planning; and organizational wellness.
The ministry continues to make significant progress on strategies supporting the Road Ahead. To ensure integration into the day-to-day operations of the organization, the ministry has created "Partners in Performance," a review tool that will be implemented in fiscal 2006/07. Partners in Performance formalizes an approach through which ministry staff can share best practices and learn from each other. It focuses on our people, our culture, and our business. Partners in Performance will ensure that the people side of the ministry and its culture supports the overall objective for being a high performing organization.

Performance Measures

Performance measures of achievement towards this objective are tracked internally to the ministry.

Deregulation and Regulatory Reform

The Ministry of Forests and Range continued to review its legislation to look for further regulation reduction and reform opportunities. In 2005/06, the ministry exceeded it commitment to maintain its June 2004 baseline, by decreasing regulatory requirements by more than 10 per cent.

Performance Measure	2002/03 Actual	2003/04 Actual	2004/05 Actual	2005/06 Target	2005/06 Actual	Variance
Maintain regulatory requirements at June 2004 baseline.	8,551	9,124	9,124 (June 2004 baseline)	9,124 (0% increase to regulatory burden)	8145	- 10.73%
Selection Rationale This measure is mandated by the Regulatory Reform Office to track Government Regulatory Reform initiatives.
Results and Variance Explanation Regulatory requirements in 2005/06 decreased by 10.73 per cent. This reduction exceeded the 0 per cent increase target.
Data Sources and Issues Number of regulatory requirements in statutes, regulations and policies are counted by prescribed method set out by the Regulatory Reform Office. The regulatory count in the Ministry of Forests and Range is undertaken by the legislation section of the Strategic Policy and Planning Branch.
Changes to the Measure While this objective will continue to be tracked by the ministry it will not be tracked as a formal performance measure in future service plans.

ANNUAL SERVICE PLAN REPORTS 2005/06Ministry of Forests and Range andMinister Responsible for Housing

Part A: Ministry of Forests and Range — Continued

Goals, Objectives, Strategies and Performance Measures

Ministry Goal 1: Sustainable Forest and Range Resources.

Key Outcome Indicators

Objective 1: Prevent and manage wildfire and forest pests.

Strategies

Performance Measures

Objective 2: Ensure that the principles of sustainability guide the management of, and improvements to, the provincial forest and range resources.

(1) An effective forest practices and policy framework

Strategies

Results

(2) Advice to decision-makers is guided by the principles of sustainability and best available science

Strategies

Results

Performance Measures

Objective 3: Deliver ministry programs required to manage provincial forest and range resources for sustainable benefits.

Strategies

Results

Performance Measure

Objective 4: Restore the forest resource in areas affected by the Mountain Pine Beetle Epidemic (includes Provincial and Federal support for Mountain Pine Beetle Action Plan implementation).

Objective 5: Monitor, evaluate, and continuously improveforest management.

Strategies

Results

Performance Measures

Objective 6: Protect, manage and improve range resourcesfor multiple values.

Strategies

Performance Measures

Objective 7: Encourage long-term economic sustainability by mitigating the impacts of mountain pine beetle on livestock production and range use (includes provincial and federal support for Mountain Pine Beetle Action Plan implementation).

Objective 8: Promote compliance and ensure statutory obligationsare enforced.

Strategies

Results

Performance Measures

Objective 9: Actively foster sustainable management andimprove the public forest and forage asset base.

Strategies

Performance Measures

Ministry Goal 2: Sustainable Forest and Range Benefits.

Key Outcome Indictors

Table 5: Area of forestland (in hectares) certified by major forest certification processes

Table 6: 2005/06 Revenue (Unaudited) by Category and Forest Region

Objective 1: Maintain access to markets for B.C. forest products.

Strategies

Performance Measures

Objective 3: Ensure that the public receives fair value for the use of its forest and range resources now and in the future.

Strategies

Performance Measure

Objective 4: Provide opportunities to generate wealthfrom the forest resources.

Strategies

Performance Measures

Objective 5: Provide a reliable and environmentally soundforest road network.

Strategies

Performance Measures

Objective 6: Increase First Nation opportunities for participation in the forest sector, provide stability on the land base, and ensure forestry operations respect First Nation interests on the land base.

Strategies

Performance Measures

Objective 7: Provide a credible reference point for costs andpricing of timber harvested from public land in B.C.

Results

Strategies

Performance Measures

Objective 8: Optimize BCTS net revenue to the province, within the parameters dictated by its benchmarking mandate and sound forest management.

Results

Strategies

Performance Measures

Objective 9: Provide opportunities for BC Timber Sales customersto purchase timber in an open and competitive market.

Results

Strategies

Performance Measures

Ministry Goal 3: Highly Effective, Innovative andResponsive Organization.

Key Outcome Indicators

Objective 1: Sound governance and effective and efficient delivery of forest investments to assist government to develop a globally recognized, sustainably managed forest industry.

Strategies

Performance Measures

Objective 2: Ensure a responsive and effective management framework and infrastructure that supports the achievement of ministry goals and objectives.

Strategies

Performance Measures

Objective 3: To be a high performing and learning organization.

Strategies

Performance Measures

Deregulation and Regulatory Reform

ANNUAL SERVICE PLAN REPORTS 2005/06
Ministry of Forests and Range and
Minister Responsible for Housing

Goals, Objectives, Strategies and
Performance Measures

Ministry Goal 1:
Sustainable Forest and
Range Resources.

Objective 5: Monitor, evaluate, and continuously improve
forest management.

Objective 6: Protect, manage and improve range resources
for multiple values.

Objective 8: Promote compliance and ensure statutory obligations
are enforced.

Objective 9: Actively foster sustainable management and
improve the public forest and forage asset base.

Objective 4: Provide opportunities to generate wealth
from the forest resources.

Objective 5: Provide a reliable and environmentally sound
forest road network.

Objective 7: Provide a credible reference point for costs and
pricing of timber harvested from public land in B.C.

Objective 9: Provide opportunities for BC Timber Sales customers
to purchase timber in an open and competitive market.

Ministry Goal 3: Highly Effective, Innovative and
Responsive Organization.