Governments blast NDP over funds switch

Local leaders criticized the provincial government following its announcement that funds would be taken out of the Rural Dividend Program and diverted to aid for communities with declining sawmills.

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READ MORE: B.C. communities protest transfer of aid funds to those hit by sawmill closures

Of the $69 million earmarked over two years for Quesnel, Chasm, Vavenby and Fort St. James where sawmills have either been closed permanently or curtailed, $25 million will come from the Rural Dividend coffers.

The announcement was made on Sept. 19 in a letter to Rural Dividend applicants by Doug Donaldson, Minister of Forests, Lands and Natural Resource Operations, and Rural Development.

READ MORE: B.C. Government gives from one hand, while it takes back with the other, that as it suspends Rural Dividend Fund

“Funding this essential programming for impacted workers has required that we temporarily reallocate funding in the Rural Dividend Program. As a result, all applications received in this fiscal years’ intake period June 15-Aug. 15, 2019 are suspended until further notice,” Donaldson wrote.

The Rural Dividend fund was established by the former provincial Liberal government to help with economic diversification for First Nations and non-First Nations communities of 25,000 people or smaller. It provided up to $25 million a year towards the projects. Single organizations, First Nations and local governments could receive up to $100,000 and partnerships up to $500,000.

At the Union of British Columbia Municipalities (UBCM) convention in Vancouver, Donaldson had informed the mayors at the Truck Loggers Association Forestry dinner about the Rural Dividend funds decision.

Donaldson said this is a temporary suspension of the Rural Dividend Fund and that all applications will be held over and be eligible for funding in the next intake.

John Rustad, MLA for Nechako Lakes slammed the funds diversion decision.

“It is absolutely crazy to think Horgan and the NDP think it is ok to take funding away from rural communities that are hurting to provide minimal support for the forest sector,” he said.

“After running a $1.5 billion surplus last year surely they can find the funding to support both rural communities and the forest sector. The indifference this government has shown to rural B.C. and the forest sector is unbelievable.”

Of the applicants in Burns Lake who have applied for funding through the Rural Dividend, the $100,000 the village was awarded in April was received, and $77,000 of it is being spent on the branding initiative.


Blair McBride
Multimedia reporter
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