Appendix 2

Situation Analysis Background Information

[November 1998 Draft Report]       [Action Plan main page]


Contents:

Table 1: Canada Census Enmeration areas
Table 2: Canada Census Population and Labour Force by Industry for the Slocan Valley
Table 3: North-South Employment Profile Comparison
Table 4: Slocan Valley Unemployment and Participation Rates
Table 5: Slocan Valley Timber Harvesting Landbase and Resultnat Potential AAC by Licensee
Table 6: Change in employment based on 1991 and 1996 Canada Census data
Table 7: Estimated average per capita incomes by sector
Table 8: Non-employment income data



Table 1: Canada Census Enumeration areas

Enumeration
Area
Physical Description Corresponding Communities
262 The area north of Nemo Creek on the
west side of the valley and Silverton Creek
on the east side of the valley to the
Northern boundary of the study area
Includes the following rural areas: Summit Lake, Hills,
Rosebery, Denver Canyon, Three Forks, Alamo,
Sandon & Zincton
266 Municipality of Slocan Slocan
267 Municipality of Silverton Silverton
268 Municipality of New Denver New Denver
261 The area on the east side of the valley
from Silverton Creek to Lemon Creek
Includes the following rural areas: Brandon, Enterprise
Creek and the rural area around Slocan
302 South Slocan & Crescent Valley Rural population around the South Slocan and
Crescent Valley area
303 Krestova and McDermid Creek Rural population around the Krestova area
304 The area south of Koh Creek on the west
side of the valley & Jaimie Creek on the
east side of the valley to the southern part
of the study area boundary
Includes the following rural areas: Passmore & Slocan
Park
305 The area of the east side of the valley
from Lemon Creek to Jaimie Creek
Includes the population on the east side of the Slocan
River of the following rural areas: Lemon Creek,
Perry Siding, Appledale, Winlaw, Lebahdo
306 The area on the West side of the valley
form Nemo Creek to Koch Creek
Includes the population on the west side of the Slocan
River of the following rural areas: Slocan, Perrys,
Appledale, Winlaw, Vallican




Table 2: 1996 Canada Census Population and Labour Force by Industry Data For the Slocan Valley

Area Description Municipalities Rural Area (RDCK Area H)* -
- New Denver Silverton Slocan North of Nemo
& Silverton
crk. to North
Boundary
East side of
Valley from
Silverton crk.
to Lemon Cr.
East Side of
valley from
Lemon Crk
to Jaimie Cr.
West Side of
valley from
Nemo Crk.
to Koch Crk.
South of
Jaimie & Koch
to Southern
Boundary
Krestova South Slocan
& Crescent
Valley
-
Enumeration number 268 267 266 262 261 305 306 304 303 302 Total
Population 579 241 335 435 392 736 740 790 729 638 5615
Labour
Force
- - - - - - - - - - -
Retail trade 90 25 25 40 10 15 55 90 75 35 460
Accomodation,
Food & Bev.
25 15 20 30 15 60 40 20 30 50 305
Construction 20 15 15 35 35 25 40 25 70 10 290
Manufacturing 0 10 35 10 25 35 45 60 20 30 270
Health &
Social Services
30 20 10 15 25 35 45 50 10 10 250
Logging &
Forestry
20 15 10 40 20 40 20 45 10 25 245
Educational
Services
15 0 0 25 15 35 20 30 15 25 180
Business
Service
15 10 0 15 10 40 10 15 20 40 175
Transportation
& storage
15 0 0 0 20 40 0 25 0 25 125
Agriculture 0 10 0 10 0 45 10 0 0 0 75
Communications
& utilities
0 0 0 0 10 10 0 20 0 25 65
Government
service
0 10 0 0 0 0 10 0 20 25 65
Wholesale
trade
10 0 0 0 0 0 10 10 0 10 40
Mining 10 10 0 0 0 0 10 0 0 0 30
Finance &
Insurance
0 0 0 0 0 0 0 10 15 0 25
Real Estate
services
0 0 0 0 0 0 0 0 0 10 10
Fishing &
Trapping
0 0 0 0 0 0 0 0 0 0 0
other
services
10 0 0 15 15 50 0 25 20 15 150
Industry not
applicable
0 0 10 10 15 10 15 30 0 0 90
TOTAL 260 140 125 245 215 440 330 455 305 335 2850

Source: Statistics Canada

*The Census Canada enumeration areas, from which this information was derived, use the Slocan Lake and River as an East-West divide for the geopgraphic designations.
The information for many of the rural communities that span both sides of the Slocan River, such as Winlaw and Appledale, would be incorporated into two different columns and combined with other communities. Thus it is not possible to delineate detailed information for any of the smaller communities.





Table 3: North-South Employment Profile comparison

Note: North includes Canada Census Enumeration Areas 262, 268, 267, 266, and 261. South includes areas 305, 306, 304, 303 and 302.

1996 Canada Census Population and Labour Force North South Analysis
A B C D E F G
Area Description
Enumeration number
North
Total
Labour
Division
as % of
North Total
North As % of
Total Workforce
South
Total
Labour
Division
as % of
South Total
South as % of
Total Workforce
Total Workforce
Slocan Valley
Population 1982 - 35.30% 3633 - 64.70% 5615
Labour Force
Agriculture 20 2.03% 26.67% 55 2.95% 73.33% 75
Fishing & Trapping 0 0% 0% 0 0% 0% 0
Logging & Forestry 105 10.66% 42.86% 140 7.51% 57.14% 245
Mining 20 2.03% 66.67% 10 0.54% 33.33% 30
Manufacturing 80 8.12% 29.63% 190 10.19% 70.37% 270
Construction 120 12.18% 41.38% 170 9.12% 58.62% 290
Transportation & storage 35 3.55% 28% 90 4.83% 72.00% 125
Communication & utilities 10 1.02% 15.38% 55 2.95% 84.62% 65
Wholesale trade 10 1.02% 25.00% 30 1.61% 75.00% 40
Retail trade 190 19.29% 41.30% 270 14.48% 58.70% 460
Finance & Insurance 0 0.00% 0.00% 25 1.34% 100.00% 25
Real Estate services 0 0.00% 0.00% 10 0.54% 100.00% 10
Business Service 50 5.08% 28.57% 125 6.70% 71.43% 175
Government service 10 1.02% 15.38% 55 2.95% 84.62% 65
Educational services 55 5.58% 30.56% 125 6.70% 69.44% 180
Health & Social Servides 100 10.15% 40.00% 150 8.04% 60.00% 250
Accomodation, Food & Bev. 105 10.66% 34.43% 200 10.72% 65.57% 305
other services 40 4.06% 26.67% 110 5.90% 73.33% 150
Industry not applicable 35 3.55% 38.89% 55 2.95% 61.11% 90
Total 985 100.00% 34.56% 1865 100.00% 65.44% 2850




Table 4: Slocan Valley Unemployment and Participation Rates

Municipalities Rural Area (RDCK Area H)
New Denver Silverton Slocan North of Nemo
& Silverton
Crk. to North
Boundary
East side of
Valley from
Silverton Crk.
to Lemon Crk.
East side of
Valley from
Lemon Crk.
to Jaimie Crk.
West side of
Valley from
Nemo Crk.
to Koch Crk.
South of
Jaimie & Koch
crk. to South
Boundary
Krestova South Slocan
& Crescent
Valley
Enumeration
Area
268 267 266 262 261 305 306 304 303 302 Total
Total population

15 yrs. +
450 195 260 325 305 620 580 610 585 485 4415
In the Labour
Force
255 145 125 260 200 430 340 455 325 340 2870
Employed 230 125 85 215 170 360 280 385 260 310 2420
Unemployed 20 20 40 45 30 70 60 70 65 30 450
Unemployment
rate
7.8% 13.8% 32.0% 17.3% 15.0% 16.3% 17.6% 15.4% 20% 8.8% 16.4%
average
Not in the Labour
Force
200 50 135 65 105 185 245 155 255 145 1540
Participation Rate 56.7% 74.4% 48.1% 80% 65.6% 69.4% 58.6% 74.6% 56.6% 70.1% 65.5%
average




Background on timber supply from the Slocan valley

Specific information on the Slocan Valley timber landbase and timber harvest is not readily available. Neither the MoF nor any of the licensees operating in the Slocan Valley determine and administer an annual allowable cut for the Slocan Valley by itself. Except for TFL #3, all the existing forest tenures in the Slocan Valley extend beyond the valley boundaries. Due to planning and scheduling factors the volume of timber harvested in the Slocan Valley can vary from year to year.

In order to approximate the timber landbase and timber harvest from the Slocan Valley the following analysis was undertaken and compared to existing data. The information used is a compilation of research information from various sources such as; personal correspondence with Arrow District Staff & Slocan Forest Products Staff, the Silva Forest Foundation Plan, the Ministry of Forests Arrow TSA Timber Supply Review, Ministry of Environment Lands and Parks, and the Slocan Valley Land Use Plan.

To provide an indication of what proportion of timber is harvested by each licensee it is necessary to first define the Timber Harvesting Landbase (THL) each licensee has within the Slocan Valley Watershed. Table 5 shows us these numbers.

In order to provide an approximation of the annual volume of harvest from the Slocan Valley the THL total area can multiplied by a factor representing the volume contributed to harvesting by each ha. of land in the THL. This factor can be derived by dividing a known annual harvest level (AAC) by its corresponding THL. Using the whole Arrow district we know that the Timber harvesting landbase for the Arrow TSA is 216,760 ha. & the AAC is 619,000 m3/yr. Thus each ha. of land must contribute 2.86 m3/yr. By multiplying all of the known THLs for each licensees within the Slocan Valley by this factor we are able to derive a potential AAC (see Table 5).

The numbers calculated using the above analysis represent a potential model for timber harvesting in the Slocan Valley. In order to “reality check” the numbers a comparison of TFL # 3’s actual AAC with the above mentioned potential AAC will provide us with an idea of how close the model represents actual harvesting. At the time of this analysis the actual AAC for TFL # 3 is 59,600 m3/yr and the model presented above indicated the potential AAC to be 90,296 m3/yr. Thus the model overestimated the actual TFL AAC by 34%. If this 34% is to be considered a “reality net down” and we apply it to the other licensee potential volumes we derive a much lower level of timber harvest for the Slocan Valley. These two levels of harvest can be considered a range of potential harvesting levels for the Slocan Valley (see Table 5).

Table 5: Slocan Valley Timber Harvesting Landbase and Resultant Potential AAC by Licensee

Licensee Timber Harvesting
Landbase in the
Slocan Valley (ha.)*
Potential AAC
(THL x 2.86)
m3/yr.
Net Down AAC
(m3/yr.)
(34% net down)
% of Total
Slocan Forest Products TFL
#3*
31,572 90,296 59,600 38%
Slocan Forest Products
Forest License A20192
37,797 108,099 71,145 45%
Ministry of Forests Small
Business Forest Enterprise
Program TFL #3
1,036 2,963 1,955 1%
The Ministry of Forests Small
Business Forest Enterprise
Program
10,150 29,029 19,159 12%
Kalesnikoff Lumber Co. Ltd.
Forest License A20194
2,300 6,578 4,345 3%
Woodlot 894 2,557 1,688 1%
Total 83,749 239,522 158,084 100%

*Source Ministry Of Forests

As we can see the Timber Harvesting Landbase (THL) for the Slocan Valley is 83,749 ha. This is 25% of the total Slocan Valley landbase (which is 340,000 ha). Slocan Forest Products TFL #3 operates in 38% of the Timber Harvesting Landbase and Slocan Forest Products Forest License A20194 operates in 45%. Thus Slocan Forest Products operations cover 83% of the Timber harvesting Landbase in the Slocan Valley.

The range of potential harvesting levels for the Slocan Valley is between 158,084 m3/yr & 239,522 m3/yr. It must be remembered that the noted timber harvesting levels for the existing licensees in the Slocan Valley are based upon proportionate contribution per hectare of timber harvesting landbase and are approximations only. The Forest Licenses and Small Business Program listed are volume based and have operating areas in other parts of the Arrow district outside of the Slocan Valley thus these derived harvesting levels are by no means binding. Site productivity, age class distributions, resource management guidelines will dictate a different harvesting scenario for each portion of their operating landbase for each licensee.

To provide one further check of the potential harvest levels in the Slocan Valley we can compare the results listed above with those from the Silva Plan (Ecosystem Based Landscape Plan for the Slocan River Watershed). The Silva plan undertook an extensive forest cover data base analysis to isolate the timber harvesting landbase and harvest rates for the Slocan Valley as per Ministry of Forests guidelines. The geographic boundaries of the Silva Plan analysis were similar to that of our analysis unit.

The Silva Plan found that the estimated MoF Timber Management Landbase for the Slocan Watershed was 96,287 ha. (compared to 83,749 ha. in Table 5) and the Gross estimated Ministry of Forests Annual Allowable cut was 226,670 m3/yr. (compared to 239,522 m3/yr. in Table 5). Using a similar net down analysis as that listed above the Silva plan found a net MoF AAC of 170,002 m3/yr. (compared to 158,084 m3/yr. in Table 5).





Table 6: Change in employment based on 1991 and 1996 Canada Census data

Labour Force 1991 Census 1996 Census Change % Change
Accomodation, Food
and Bev.
99 305 206 208%
Health & Social Services 150 250 100 150%
Retail trade 212 460 248 116%
Real estate services 0 10 10 100%
Finance & Insurance 15 25 10 66%
Logging & Forestry 148 245 97 65%
Business Service 108 175 67 62%
Construction 193 290 97 50%
Agriculture 58 75 17 29%
Educational services 148 180 32 22%
Transportation & storage 128 125 -3 -2%
Manufacturing 278 270 -8 -3%
Communications and utilities 75 65 -10 -13%
Government service 101 65 -35 -36%
Wholesale trade 63 40 -23 -37%
Mining 85 30 -55 -65%
Fishing & Trapping 25 0 -25 -100%
Other services 249 150 -99 -
Total 2135 2760 625 29%




Table 7: Estimated average per capita incomes by sector

Sector Total Gross
Income
($ million)
Per Capita
Before Tax
Income
($)
Per Capita
After Tax
Income
($)
Forestry 11.1 37,000 29,000
Wood
manufacturing
10.0 34,500 27,000
Mining 1.6 36,000 29,000
Agriculture 1.6 19,000 17,000
Tourism 3.6 12,500 11,000
Public sector 10.1 29,000 23,000
Construction 6.9 31,000 25,000
Other basic 13.4 29,500 24,000
Non-basic 18.2 22,500 18,000
Non-
employment
28.3 - -
Total 105.0 - -

Source: BC Ministry of Finance




Table 8: Non-employment income data


Source Amount
($ million)
Percent of total
income
Pensions 8.3 8%
Investment income 6.9 6%
Emloyment
insurance
5.9 5%
Social assistance 1.4 1%
Other transfer
payments
5.8 6%
Total 28.3 27%