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

Haitian foster children arrive in Nelson after months-long lobbying effort

Marie-Paule Brisson and Sebastien De Marre have parented girls age 12 and 8 since they were babies

Rossland city council set to resume in-person council meetings at Miners Union Hall

Spaced seating, hand sanitization stations will be in facility to mitigate threat of COVID-19

Police investigating car accident on Rossland Hill

Captain Grant Tyson says the rollover resulted in minor injuries to three people

From baseball stars to forest fires: Southeast Fire Centre water bomber has an interesting past

Tanker 489 is stationed in Castlegar this year, but in the 1960s it belonged to the L.A. Dodgers.

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

VIDEO: Vancouver Island cat missing 18 months reunited with family

Blue the cat found at Victoria museum 17 kilometres from home

COVID-19 cases identified in Kelowna, after public gatherings

Those who were downtown or at the waterfront from June 25 to July 6 maybe have been exposed to COVID-19.

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Conservationists raise concerns over state of care for grizzly cubs transferred to B.C. zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

National Kitten Day aka the ‘purrfect’ day to foster a new friend

July 10 marks National Kitten Day, a special day to celebrate all things kittens

Lower Mainland YouTubers claim to be Kelowna display toilet ‘poopers’

RCMP can not speak to legitimacy of video, will be investigating

Haida matriarchs occupy ancient villages as fishing lodges reopen to visitors

‘Daughters of the rivers’ say occupation follows two fishing lodges reopening without Haida consent

Most Read