Coastal logging activity is down since the B.C. NDP government began implementing its revitalization plan. (Black Press files)

Coastal logging activity is down since the B.C. NDP government began implementing its revitalization plan. (Black Press files)

Log export fee reduction aims to revive B.C. coast logging

Forests Minister Doug Donaldson eases wood waste rules

After weeks of urgent pleas that the forest-based economy of northern Vancouver Island and the B.C. coast is suffering irreparable damage, the B.C. government has delayed some of the changes that logging companies say have made timber harvesting too expensive.

Changes include easing new fees on unrecovered wood waste, and delaying a new fee system for exported logs.

Forests Minister Doug Donaldson has already moved to slash stumpage fees for coastal timber, which were cited by contractors when they suspended logging in recent months. Teal Jones Group reduced its Fraser Valley and Vancouver Island logging in May and shut the rest down in September, cutting off wood supply to two sawmills and a cedar shake mill in Surrey that employ 500 people.

RELATED: 500 losing mill work as Teal Jones suspends logging

RELATED: Aid a priority for laid-off coastal loggers, Horgan says

RELATED: Laid-off forest workers converge on B.C. legislature

Mosaic Forest Management laid off about 2,000 union and non-union employees as well as coastal logging contractors at the end of November, beginning its seasonal shutdown early due to what the company termed “very challenging pricing and market conditions.” Mosaic is a partnership of Island Timberlands and Timberwest, which along with Western Forest Products represents most of the lumber industry on Vancouver Island and the adjacent coast.

Western has been shut down for almost six months by striking United Steelworkers members, forcing logging contractors off the job. Premier John Horgan has promised aid for contractors, who are losing their homes and equipment. Labour Minister Harry Bains has met with both sides as mediated negotiations have dragged on.

The forests ministry issued a statement to Black Press describing the log export changes that are designed to keep more logs in B.C. for milling. The maximum “fee in lieu” has been reduced from 50 per cent of log value to 35 and the imposition on private logging companies has been delayed six months.

“The fee-in-lieu of manufacture has been in place for some time,” the ministry said. “It provides revenue to government in lieu of the economic benefits that are received when logs are manufactured within the province.

“The new, variable fee-in-lieu, which reflects the economics of each stand, was applied to new B.C. Timber Sales licences on the Coast in July. It was originally going to also apply for all new cutting permits on the Coast, starting Dec. 15. Recognizing the many challenges facing the coastal forest industry, while it will still apply to all new B.C. Timber Sales licences on the Coast, its application across all permits has been delayed.”

B.C. Liberal forests critic John Rustad said keeping the higher fees on B.C. Timber Sales blocks means up to half of them are not attracting bids from logging companies.

“People are only operating now in areas where they can make a go of it, in terms of fibre recovery,” Rustad said in an interview.

A new “fibre recovery zone” system that triples fees for usable wood left behind is still in place, but Donaldson said the zones have been reduced based on industry data effective Monday, Dec. 23.

Provincial stumpage fees for cutting coastal Crown land timber are being reduced to $8.82 per cubic metre as of Jan. 1, in the latest quarterly adjustment to reflect the falling price of lumber. Stumpage reached a high of $18.73 in January 2019.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

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

Just Posted

(Hal Brindley - Dreamstime)
Enderby farmers caught between coyotes and bylaw tickets

The Smith family is stuck in a Catch-22 between protecting their livestock and incurring noise complaints

Barley Station Brewpub’s owners Stu and Kathy Bradford and longtime head chef Wally Bonn celebrated 15 years in business on Saturday, Jan. 23. (Jim Elliot/Salmon Arm Observer)
Snapshot: Salmon Arm’s Barley Station Brewpub celebrates 15th year in business

The highwayside pub is lookign forward to the future.

The Salmon Arm Elks Lodge kept up their charitable giving despite COVID-19 restrictions by holding a successful 50/50 draw. (Jim Elliot-Salmon Arm Observer)
Salmon Arm Elks support charitable giving with succesful 50/50 draw

The winner of the draw took home over $4,000.

Salmon Arm Mayor Alan Harrison is comfortable waiting his turn to be vaccinated for COVID-19, as per the B.C. government’s updated vaccination timeline released on Friday, Jan. 22, 2021. (File photo)
Province’s vaccine timeline a shot of hope for Salmon Arm mayor

Mayor Alan Harrison sees majority of residents taking precautions against COVID-19

Interior Health reported 79 new cases of COVID-19 and two new death in the region Friday, Jan. 22, 2021. (Ben Hohenstatt/Juneau Empire)
79 new COVID-19 cases, two deaths reported in Interior Health

Both of Friday’s deaths were both recorded at long-term care homes

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

A COVID-19 exposure has been confirmed at Black Mountain Elementary in Kelowna Saturday, Jan. 23, 2021. (Google Image)
Another COVID-19 exposure confirmed at Kelowna school

Interior Health confirmed an exposure at Black Mountain Elementary School Saturday

Members of BCEHS Station 343 in Lake Country receive a donation of treats and wine from the community in December. (Contributed)
‘Unexpected and heartwarming’: Okanagan community supports paramedics

Cards, discounts, treats, more given to Lake Country paramedics in sign of support

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

The North Okanagan Naturalists' Club completed its annual swan and eagle counts Sunday, Jan. 17, 2021. (Claude Rioux - NONC photo)
North Okanagan bird count shows decrease in swan and eagle numbers

Trumpeter swans were down 61 per cent from last year’s count; eagles down 14 per cent

Okanagan Indian Band Chief Byron Louis has served as the band’s chief since his first of six electoral wins in 1991. (File photo)
Okanagan Indian Band seeks nominations for upcoming election

A new OKIB chief and council will be elected March 30, 2021

Lake Country firefighters helped deliver a healthy newborn baby Thursday, Jan. 21, 2020. (Pixabay)
Lake Country firefighters help deliver baby boy

Firefighters from the Winfield hall assisted with the birth of a healthy newborn Thursday morning

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

Skaha Middle School
Arrest made in indecent acts near South Okanagan schools

A 32-year-old man was arrested and released on strict conditions, say police

Most Read