Whereas stumpage rates play a significant role in shaping the dynamics of the timber industry and local economies; And whereas while increases in stumpage rates may generate additional revenue for the Provincial Government, there is a risk of unintended consequences, including economic hardship and reduced revenue for local businesses and governments: Therefore be it resolved that UBCM advocate to the provincial government for equitable stumpage rates that balance the need for provincial government revenue generation with the economic sustainability of forestry-dependent communities.
Ministry of Forests The Ministry of Forests is legislated to assert the financial interest of the government in its forest and range resources in a systematic and equitable manner Section 4e of the Ministry of Forests and Range Act. This is why the stumpage system is market based. Stumpage is the fee government charges when it sells trees, similarly to how a private landowner would. Licensees pay cash stumpage and provide services obligations for the trees they purchase. BC uses the Market Pricing System MPS to determine the stumpage rate. The MPS equation includes a lumber variable and is sensitive to changes in lumber prices and uses BCTS auctions as the cornerstone system for the pricing non-auctioned timber. Using the MPS is how the BC government generally ensures equitable stumpage rate and return to the citizens of BC and economic stability for the forestry-dependant communities.