ryan#1
Active VIP Member
Area based tenure is not a new concept. Most of the larger companies operate under TFL's and have for a long time. Willy is correct it...it is just a tenure system and no ownership rights go along with area based vs volume based tenures...in either system it is crown land.
The government won't ever be giving out new tenures to private industry...they have committed volume to first nations that they don't have. This is going to allow them to provide first nations with an area based tenure over their territory. Coastal first nations have been pushing for this for a long time.
IMO area based will lead to better management because in theory the licensee should have a longer term focus because their land base is fixed. Volume based...target the highest margin wood you can get a permit for, log it, get it free growing off the books move onto next area...basically use it or lose it to another volume based licensee in the same supply area.
The government won't ever be giving out new tenures to private industry...they have committed volume to first nations that they don't have. This is going to allow them to provide first nations with an area based tenure over their territory. Coastal first nations have been pushing for this for a long time.
IMO area based will lead to better management because in theory the licensee should have a longer term focus because their land base is fixed. Volume based...target the highest margin wood you can get a permit for, log it, get it free growing off the books move onto next area...basically use it or lose it to another volume based licensee in the same supply area.