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  • An Orwellian path to fraud in BC's forests

    Briony Penn

    Management of public forests by the forest industry isn’t in the public interest.



    BCs forests have become a vast patchwork of roads, clearcuts and mainly young trees. Of the latter, critics say, there has been no reliable inventory. As well, the Province has relied less on its own scientists and more on forest industry professionals to conduct management of public forests, blurring the distinction between public and private interest.


    FORMER GOVERNMENT FOREST SCIENTIST Andy MacKinnon’s battle cry, as he knocks on doors as a Green Party candidate in the upcomming provincial election, is: “Wake up British Columbians!” He’s one of an increasing number of scientists who are getting into politics to raise the alarm about what happens when proper government oversight is put at risk through budget cuts and political interference.

    MacKinnon believes the threat to BC’s greatest public asset—tens of millions of hectares of forests—should be one of the election’s foremost issues. “We have rapidly disposed of it for too few jobs and too little money,” MacKinnon says, “and this is all happening within our provincial model of ‘professional reliance,’ as the BC government sheds scientists of all sorts—professional foresters, biologists, engineers—and hands responsibility to professionals employed by the forest companies. Some have called this ‘the fox guarding the henhouse’ model.”

    This apparent loss of ability to properly manage BC’s forests isn’t just Green Party rhetoric. “We were hearing this from scientist after scientist,” says Katie Gibbs, one of the co-authors of an April 2017 report, Oversight at Risk: The State of Government Science in British Columbia. The report, commissioned by Evidence for Democracy, an Ottawa-based watchdog for promoting the transparent use of evidence in government decision-making, interviewed scientists across BC ministries. The aim was to assess their independence and capacity to produce and communicate reliable data. Highlighted in this review was the scientists’ response to the BC Liberals’ Orwellian term “professional reliance,” which is described in the report as “outsourcing both research oversight and decision-making activities that were formerly done by government.”

    Evidence for Democracy chose the BC situation for its first provincial review, says Gibbs, “because there had been lots of rumours that BC’s public sector was particularly dysfunctional in Canada and badly in need of an independent review.” When she and her co-author started interviewing, she says, “I couldn’t believe what I was hearing from these scientists: That monitoring was outsourced to the professionals who were contracted by the very companies that they were monitoring? Was this for real?”

    It appears to be. The 64-question survey was circulated to 1159 government scientists this past November, with most of the responses coming from the Ministry of Forests, Lands and Natural Resource Operations (FLNRO). The report provides the historical context for the survey, which includes the dramatic reduction of provincial staff-scientists starting in 2001. BC now has the smallest public sector per capita of all Canadian provinces, despite its wealth of natural resources.

    Of those government scientists still working for the Province who were allowed to participate in the survey (and not all were), around half “believe that political interference is compromising their ministry’s ability to develop laws, policies and programs based on scientific evidence.” One FLNRO scientist wrote, “The reduction in staff and financial resources has caused us to not be able to conduct the scientific work that would best support changes in policy. Instead, policy is most often developed as a result of political pressure from select interest groups, in particular forest industry stakeholders.”

    The survey didn’t include scientists who are members of the BC Government Employees Union which, according to Gibbs, denied a request to distribute the survey to their members because “it was not in line with their priorities at the time.”


    IN A BRISTLING REPORT delivered to the Coastal Silviculture Committee this spring, authors Anthony Britneff and Martin Watts, non-partisan forest professionals, dug deep into the structural details of how “professional reliance” without independent third-party oversight has set off a domino effect of poor policy decisions affecting everything from stumpage rates, tree planting and water quality to the health of moose and grizzly populations. Britneff describes the resulting and ongoing grab of timber as “the rape of the land.” A 40-year career forester with the provincial government, Britneff says that during his last ten years in government, “[I experienced] radical budget cuts and changes in policy that I saw as being detrimental to the forests and to the life within them.”


                 Katie Gibbs                            Anthony Britneff                    Diane Nicholls                      Andy MacKinnon

    The biggest problem, according to Britneff, is the corrupt data and unreliable models for determining the inventory of the forests—known as the “Timber Supply Review”—that’s used by the Chief Forester to determine how much forest can be cut each year, the “Annual Allowable Cut” (AAC).

    “If this information is wrong, which it is,” Britneff says, “then we put whole communities at risk. Job losses, mill closures, community hardships, very little stumpage [royalties] flowing back to the community, have all resulted because there is no reliable inventory or analysis to determine [appropriate] rates of cut.”

    One of the clearest indicators that there is a problem is the discrepancy between the allocation of timber in the AAC and what is actually cut. As Britneff puts it, “Industry can’t even find the wood allocated to them for the cut because the Timber Supply Review is an economic fiction, supported and informed by unvalidated computer models. Companies are pushing further and further into previously protected areas like the wildlife habitat areas and right up to the edge of provincial parks. They are making no provisions for climate change, and have used beetle kill to escalate the cut. To add insult to injury they are giving it away at 25 cents for a telephone pole.”

    In response to Britneff’s allegations, Chief Forester Diane Nicholls told Focus: “The people of BC can have complete confidence in Allowable Annual Cut (AAC) determinations as they are based on robust complex analysis of many factors that pertain to timber supply and other forest values. The process that supports my AAC determinations is open to public and First Nations for review and comment. All documents generated, including a detailed description of how I arrived at my decision, are available online.”

    Nicholls also noted, “The uncertainties in the analysis and data are managed through sensitivity analyses that allow me to assess the impact of these uncertainties on my decision. We continuously improve and update our data and analysis based on field audits and assessments and new or additional information.”

    But Britneff takes issue with Nicholls’ defence. He notes that “uncertainty” is a technical term used in the international accounting world when measurements “are based on estimates, judgments, and models rather than on exact depictions.” The absence of independent auditors to verify the data means there is no sound basis upon which to trust Nicholls’ numbers. Britneff and Watts also believe that the sensitivity analyses to which Nicholls refers are incorrectly applied.

    Remarkably, there is no legal requirement for Nicholls to conduct an actual inventory of provincial forests. That used to be a statutory responsibility of the chief forester, but changes to the Forest Act in 2002 transferred the inventory function to what was then called the Ministry of Sustainable Resource Management. When that ministry was disbanded, inventory staff returned to the Ministry of Forests and Range but the legal requirement to conduct inventories didn’t. It simply disappeared.

    Both Oversight at Risk and Britneff point to problems beyond the uncertain timber supply, including insufficient capacity and budget within the Ministry to do an inventory. There is also no legal requirement for foresters working outside of government to maintain their data and records.

    There is also evidence that a political agenda at least partially determines the Annual Allowable Cut. This is perhaps best illustrated by an historic directive issued in 2006 by then Minister of Forests Rich Coleman to “maintain and enhance” the timber supply. This directive is still in force and, in effect, means that the AAC would never go down. This approach has left towns like Merritt with no timber and a long wait until the trees grow back.

    As Britneff notes: “It isn’t AAC that’s ‘maintained and enhanced,’ it is forests!” Foresters on the ground are the only ones who can determine whether what grows—or doesn’t grow—lines up with what the models predict. As Britneff argues, “When one has a centralized high priesthood of timber supply analysts, inventory gatekeepers and ivory-tower computer modellers, most of whom are out of touch with what the forestry staff on the ground are observing, then, by convenient omission, timber supply estimates and AAC determinations become economic fiction and AACs are maintained fraudulently high to align with Coleman’s directive—to keep raising the cut.”

    While Gibbs and her co-authors don’t use the word “fraud” to describe what they found, they do note, “The results from our survey show that around half (49 percent) of government scientists surveyed across ministries believe that political interference is compromising their ministry’s ability to develop laws, policies and programs based on scientific evidence.”

    As Gibbs states, “This ‘professional reliance’ system is a huge public interest issue but it hasn’t received the attention it should because it is a difficult thing to communicate precisely. It sounds all fine, and people think that qualified professionals are looking after their interests.”

    But the growing record of scrutiny of professional reliance—by bodies including the Centre for Public Policy Alternatives, the Environmental Law Centre, and the Auditor General in his scathing 2016 report—suggests otherwise. Professionals aren’t able to look after the public’s interests when they have no legal requirement to do so; they are employed by the companies they are expected to monitor; and their professional organizations are not at arm’s length from the forest companies that employ them. Last year, only one disciplinary case was brought to the Association of BC Forest Professionals—and it was thrown out. The year before, five cases were brought forward; three were thrown out and two are still in play.

    The findings of Oversight at Risk suggest that the professional reliance experiment has not only failed but should be scrutinized for fraud. Industry and government remain complicit and unaccountable to the public. Fifty-seven percent of BC government scientists are concerned that government’s reliance on external professionals compromises the ability of their Ministry to use the best evidence or information in decision-making. One forester wrote: “Decisions and objectives are fettered to the industry interests due to government/industry working groups. The industry-sympathetic administration does not always permit us to assess evidence, and even when we have evidence it does not easily accommodate providing direction to industry or changes in policy that may negatively impact (even in a small way) existing mainstream industry and their interests.” Another scientist working in FLNRO reported, “government rarely or perhaps never suppresses scientific findings. They do, however, by way of lack of funding, suppress research and data collection which are necessary for proper science based management.”

    Cases like the Mount Polley disaster, the green-lighting of the Site C project through exemptions of the Wildlife Act, and Elk River selenium risks are cited in the report as the most egregious examples of the failure of professional reliance, so the problem extends well beyond forest management.

    On the issue of being free to communicate their concerns to media, only 3 percent of scientists stated they could do so without approval from their bosses; 32 percent said that they were not able to communicate at all with media; 42 percent had to seek approval; the rest didn’t know. During my own 16 years of writing on the subject, no permissions have ever been granted to speak to a government scientist without public relations approval, even for data as seemingly apolitical as the population of black bears.

    COURT CHALLENGES—at both federal and provincial levels—are tackling the issue of scientific muzzling. A recent court case initiated by Martin Watts against the Province of BC is over “blacklisting” professional foresters for raising concerns with the Ministry of Forests, Lands and Natural Resource Operations over the quality of inventory data, and being excluded from contract opportunities and given only limited access to information. On May 11, a judge in the Supreme Court of BC will decide if the civil claim will proceed. As Britneff states: “Couple this apparent negligence with the fact that the chief forester is operating without a statutory mandate to maintain an inventory of the lands of the province, and one has a pernicious boondoggle of proportions sufficient in seriousness to cut rural jobs, close mills and harm forest-dependent communities, which is exactly what has been happening over the last 15 years.”

    Another insider scientist, who spoke to Focus on condition of anonymity due to fear of being fired or blacklisted, makes even stronger allegations: “Industry and government are inextricably bound, providing the conditions and potential for monkey business at every level. This failure has gone unseen for 16 years by bullying the civil servants who found problems with this model. Untouchable teams moved, fired and ignored people who did not support this model. Some districts simply suspended all staff meetings for years to hide this fact. One need only look as far as the way that volumes used for cutting permits are calculated. The Province uses outdated tables, ‘Loss Factors,’ which date back to the sixties. The more precise ‘Call Grade Net Factor’ volumes are also collected, but not used to assess stumpage volumes because business prefers lower taxes. This speaks to the influence that business has over government policy.”

    WITH LITTLE ABILITY TO GET EVIDENCE, no jurisdictional oversight to even enforce against fraudulent activity, and little confidence that the current government wants to change the status quo, some scientists like Andy MacKinnon are turning to the political sphere.

    Yet, strangely, the management of public lands (94 percent of this province) is not a big election issue. Raw log exports have grabbed more attention, but their revenue impacts are small compared to the scale of the economic problems created by the diminishment of proper government oversight.

    NDP leader John Horgan, who comes from a forestry background on the island, released his party’s forestry platform in April. Aimed more at top-of-mind issues like curbing log exports and job creation, it doesn’t mention reforming the professional reliance system, raising stumpage, or bringing back the scientific research branch—not surprising because it is hard policy to explain.

    MacKinnon admits the communications challenge of this issue. “What I have found works, though, is that if you tell someone that our vast provincial forests and wildlife are being looked after by just a handful of foresters who work for the companies that cut them down, they get that there is a problem.”

    Katie Gibbs, a scientist herself, feels a better job needs to be done in connecting the dots for people. “Public science affects all of us—from clean drinking water to making sure bridges and roads are safe—it’s in all of our best interest to ensure that government science is independent, robust and openly communicated.”

    Briony Penn’s most recent book, The Real Thing: The Natural History of Ian McTaggart Cowan, won the Roderick Haig-Brown Regional Prize and the inaugural Mack Laing Literary Prize.

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    seems when the professionals are hobbled and thretened by their superiors and not being able to voice their concerns and be a professional for the greater public good, there is no fairness and shame on the federal and provincial governments for strong arming these public servants who have the greater public awareness withheld by the upper management and upper government who want the public blind and ignorant.  We grow up and try to instill these fair and just traits with our children and the governments train those under them to be conniving and not divulging all that is true. The norm is going out the window.

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    Update on Martin Watts' lawsuit in the Times Colonist, Tuesday May 16, 2017:


    And in Desmog Canada, Friday May 12, 2017:


    Edited by Anthony Britneff
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