B.C. Liberal forest critic John Rustad (Hansard TV)

B.C. Liberals call for tax relief for struggling forest industry

Donaldson rejects ‘messing with stumpage system’ that inflames U.S.

Opposition politicians are calling on B.C. Premier John Horgan to reduce the tax load on forest companies as they deal with log shortages, slumping lumber prices and continued import duties from the United States.

B.C. Liberal leader Andrew Wilkinson and forests critic John Rustad released a letter to Horgan on Thursday, calling for reduction of carbon tax charged to forest companies, and stumpage fees collected by the province for harvesting of timber from Crown land.

“John Horgan needs to hold himself accountable, stop making excuses and stop the job losses in this province,” Rustad said. “At a time when forestry workers across the province should be hard at work, instead they are facing job losses and no paycheques.”

Forests Minister Doug Donaldson said Thursday the province must proceed carefully on any changes to B.C. stumpage is well known to incite protests from U.S. lumber producers, who have argued for decades that B.C.’s lumber is subsidized by artificially low cost of logs.

“Messing with the stumpage system is not a solution,” Donaldson told Black Press.

Donaldson also noted that during his bried time as forests minister in 2017, Rustad predicted up to 10 mills closing due to the decline in timber supply due to pine beetle damage.

Canfor, Interfor, West Fraser, Tolko and other lumber producers have announced temporary and permanent mill closures across the province in recent weeks, citing the scarcity of sawlogs in the B.C. Interior and a long slide in prices for construction lumber in recent months.

The downturn has spread to oriented strandboard producers. Louisiana Pacific announced Thursday it is shutting down its OSB production facility in Taylor, B.C. in August, after a similar announcement by Norbord for its OSB plant in 100 Mile House earlier this week.

RELATED: Norbord shutdown affects 160 workers in 100 Mile House

RELATED: Canfor temporarily shutting down sawmills across B.C.

Wilkinson and Rustad are calling on the B.C. government to reduce stumpage and carbon tax on forest companies, their logging contractors and other businesses that depend on the forest industry “until market conditions stabilize.”

Their suggestions include creating a fund for communities hit by the recent closures and curtailments, to put laid-off employees to work on wildfire prevention projects. Fuel load from decades of forest fire suppression has been a factor in recent record fire seasons.

Wildfire prevention projects are being funded and federal and provincial governments are working together to provide “short-term support for workers and communities,” Donaldson said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Chilliwack on the map for Salmon Arm Roots and Blues

Canadian music legends confirmed for 28th annual music festival

Priest Camp near Summerland was created in 1845

Agreement formed between Grand Chief Nicola (1793-1859) and Father Giovanni Nobili (1812-1856)

Princeton snow removal costs top $40k in December

Costs of snow removal to the Town of Princeton skyrocketed in December.… Continue reading

Province says it is monitoring AIM’s road maintenance

The provincial transportation ministry is working closely with new road contractor AIM,… Continue reading

Princeton – a Prince Town in waiting?

The Town of Princeton has been waiting 160 years for a Royal… Continue reading

Morning Start: 3D printed steak? No way…

Your morning start for Tuesday, January 21, 2020.

Alberta man dies in vehicle incident on Trans Canada Highway

The collision occurred Jan. 20, closing the highway east of Revelstoke till 1:30 a.m.

Video: Bobcat infiltrates Shuswap couple’s coop, feasts on fowl

Police officers credited for attempting to assist with animal’s extraction

Meng extradition case back in court for second day on double criminality test

Meng is accused of lying to HSBC about Huawei’s relationship with an Iran-based subsidiary

Canada to ratify new NAFTA next week following U.S. Senate approval: Trudeau

Trudeau says millions of Canadians depend on stable, reliable trade

Skier dies at Fernie Alpine Resort

It’s the second person to die in a tree well at a ski resort in B.C. in the past week.

Warm ‘blob’ could be behind mass starvation of North Pacific seabirds: study

Unprecedented death toll raises red flag for North American marine ecosystems

VIDEO: Vancouver Island mom shares ‘insane’ experience of viral dinosaur video

Tabitha Cooper filmed her costumed sons meeting their grandma at the Victoria International Airport

Most Read