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

A CH-149 Cormorant from 442 Transport and Rescue Squadron out of CFB Comox on a training exercise in Chilliwack on June 16, 2021. (William Snow photo)
VIDEO: Military search and rescue training in Chilliwack Wednesday

CH-149 Cormorant and CC-115 Buffalo from CFB Comox participated in downed aircraft rescue simulation

Stock photo by LEEROY Agency from Pixabay
Drop-in vaccination clinics slated in Abbotsford for construction workers

Among three sites in Lower Mainland holding no-appointment clinics in June and July

In this pre-pandemic meeting at the Friendship House in Agassiz, a packed house of residents expressed their concerns for and against the Teacup properties exclusion application to the ALC. The ALC recently denied the exclusion, keeping the McDonald Road properties as agricultural land. (File Photo/Adam Louis)
ALC refuses Teacup properties exclusion application

The decision comes nearly one year after application submitted

Chilliwack Spartans Swim Club coach Justin Daly.
Chilliwack Spartans swim coach Justin Daly wins Rubber Boot Award

Daly was recognized in a vote by fellow coaches in the BC Swim Coaches Association

Linnea Labbee outside the Chilliwack Law Courts on April 1, 2021 on day 16 of her trial in BC Supreme Court. Labbee was convicted April 12 for the fatal hit-and-run of 78-year-old Fourghozaman Firoozian on Dec. 1, 2016. (Paul Henderson/ Chilliwack Progress)
Sentencing hearing scheduled for 72-year-old Chilliwack woman found guilty in fatal hit-and-run

Crown will seek jail time for Linnea Labbee who struck and killed 78-year-old woman in 2016

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the two patients, a man and a woman likely acquired the virus in the hospital

B.C. Public Safety Minister Mike Farnworth and Attorney General David Eby attend opening of the first government-run B.C. Cannabis Store, Kamloops, Oct. 19, 2018. (B.C. government)
B.C. government to allow home cannabis delivery starting July 15

Added convenience expected to persuade buyers to ‘go legal’

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

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

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

Most Read