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

Just Posted

Jill Mackenzie carefully replaces books on the shelves at the Houston Public Library. (Angelique Houlihan photo)
District approves annual library grant

Craft kits featured for summer reading club

The tradition of Houston Christian School grads giving Bibles to incoming kindergarten students will take place this year, but outdoors and in a modified fashion. (File photo)
Houston Christian School grad day is June 24

Grads themselves have set tone for the day, says teacher

Scott Richmond will be starting as the new vice principal for HSS and TSE. (Submitted/Houston Today)
Houston gets a new vice principal

Scott Richmond takes over from Dwayne Anderson who moved to Smithers

A Pacific Salmon Foundation grant of $3,000 is going towards the tree plantations. (Cindy Verbeek photo/Houston Today)
550 trees planted in Houston through A Rocha

Houston Christian School students and volunteers help with the tree planting

Currently the Houston station has 16 paramedics, two ambulances and one community paramedic vehicle. (File photo)
Retirement of longtime paramedics worries Houston community

“No loss of service,” assures BC Emergency Health Services

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed teen facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

The George Road wildfire near Lytton, B.C., has grown to 250 hectares. (BC Wildfire Service)
B.C. drone sighting halts helicopters fighting 250 hectares of wildfire

‘If a drone collides with firefighting aircraft the consequences could be deadly,’ says BC Wildfire Service

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Patrick O’Brien, a 75-year-old fisherman, went missing near Port Angeles Thursday evening. (Courtesy of U.S. Coast Guard)
Search for lost fisherman near Victoria suspended, U.S. Coast Guard says

The 75-year-old man was reported missing Thursday evening

Most Read