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.

Just Posted

Toy donation brings some action to Campbell River Christmas hampers

The Knights of Columbus Christmas Hamper Fund received a donation of 175… Continue reading

Phoenix class fills 32 shoeboxes for annual Campbell River Shoebox Project for Women

‘We get lots of presents, and I think they should get some, too.’

Fund launched to get more art in the Campbell River Hospital

Hospital wants to ‘reflect the community its in,’ and art is a way to do that, site director says

VIDEO: Octopus, bald eagle battle after bird ‘bites off more than it can chew’ near Quatsino

B.C. crew films fight between the two feisty animals in Quatsino off north Vancouver Island

Man armed with bear spray robs Campbell River liquor store

A male armed with bear spray robbed the Big Rock Liquor Store… Continue reading

‘Not a decision I came to lightly:’ Scheer to resign as Conservative leader

Decision comes after weeks of Conservative infighting following the October election

BC Hydro offers tips as collisions with power poles increase

Region with the largest spike in collisions was the Lower Mainland at 16 per cent

Canadian airline passengers to be eligible for $1,000 in compensation for delayed flights

Passengers can also receive compensation for overbooking, lost luggage and other inconveniences

RCMP must bury three sex mannequins found in Manning Park

Police tasked with ensuring the mannequins were completely disposed of

Mount Washington receives more than 30cm of snow

Last week, the resort announced they were pushing back opening day due to lack of snow.

B.C. seniors need better vaccine protection, advocate says

Home support down, day programs up in annual rating

RCMP rescue wounded raven on Vancouver Island highway

Bird expected to make full recovery

Be aware of ticks when chopping down Christmas trees

Potential for ticks to transfer to clothing

More rowers come forward with complaints about UVic coach

Barney Williams is accused of verbal abuse and harassment

Most Read