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

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.

BC legislature

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

Just Posted

COVID-19. (Image courtesy CDC)
Nine active COVID exposure notices at Chilliwack schools

Fraser Health sending out exposure notices faster than they had in 2020

Police tape is shown in Toronto Tuesday, May 2, 2017. (Graeme Roy/The Canadian Press)
CRIME STOPPERS: ‘Most wanted’ for the week of Jan. 24

Crime Stoppers’ weekly list based on information provided by police investigators

A mallard duck swims through Salish Pond in Chilliwack on Saturday, Jan. 23, 2021. (Jenna Hauck/ Chilliwack Progress)
WEATHER: Snow, rain in forecast for Fraser Valley

Fraser Valley has been treated to more than a week of mostly sunny weather, but it’s about to end

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 will be documented by Discovery Channel film crews

sd
VIDEO: Mission drag racer scores 1st career win, sets world record, makes history in 2020

Justin Bond, founder and owner of JBS Equipment, hits milestones in break-out year

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

Wet’suwet’en supporters and Coastal GasLink opponents continue to protest outside the B.C. Legislature in Victoria, B.C., on Thursday, February 27, 2020. THE CANADIAN PRESS/Chad Hipolito
‘We’re still in it’: Wet’suwet’en push forward on rights recognition

The 670-km Coastal GasLink pipeline was approved by B.C. and 20 elected First Nations councils on its path

Jennifer Cochrane, a Public Health Nurse with Prairie Mountain Health in Virden, administers the COVID-19 vaccine to Robert Farquhar with Westman Regional Laboratory, during the first day of immunizations at the Brandon COVID-19 vaccination supersite in Brandon, Man., on Monday, January 18, 2021. THE CANADIAN PRESS/Tim Smith - POOL
Top doctor urges Canadians to keep up with COVID measures, even as vaccines roll out

More than 776,606 vaccines have been administered so far

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
B.C. Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Dr. Jerome Leis and Dr. Lynfa Stroud are pictured at Sunnybrook Hospital in Toronto on Thursday, January 21, 2021.THE CANADIAN PRESS/Frank Gunn
‘It wasn’t called COVID at the time:’ One year since Canada’s first COVID-19 case

The 56-year-old man was admitted to Toronto’s Sunnybrook Health Sciences Centre

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

An Uber driver’s vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

Uber said in a statement that the ruling of the justice is clear and speaks for itself

Surrey Fire Service responded to a fire in the industrial area of 192nd street and 54th Avenue early Saturday morning (Jan. 23, 2021). (Photo: Shane MacKichan)
Surrey crews respond to fire in industrial area

Fire happened early Saturday morning

Most Read