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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A man wearing a mask against coronavirus walks past an NHS advertisement about COVID-19 in London, Tuesday, Feb. 2, 2021. (AP Photo/Alastair Grant)
92 new COVID-19 cases, no new deaths: Interior Health

The region is reporting 92 cases after the weekend

The Regional District of Okanagan-Similkameen has implemented extended hours at four landfills, beginning March 1, 2020. (Regional District of Okanagan-Similkameen photo)
Regional District of Okanagan-Similkameen extends landfill hours

Summer hours at four facility take effect March 1, 2021.

Island Health chief medical officer Dr. Richard Stanwick receives a first dose of Pfizer vaccine, Dec. 22, 2020. (B.C. government)
COVID-19: B.C. seniors aged 90+ can start to sign up for vaccination on March 8

Long-term care residents protected by shots already given

(Contributed)
March 1 snow measurement at Summerland Reservoir above normal

Isintok Lake snow measurements near historical average

The Okanagan’s first virtual wedding fair will be held Saturday, March 27. {Paul Rodgers photo)
Okanagan to host virtual wedding fair

Okanagan wine country is No. 1 destination for weddings - online event set for March 27

Langley resident Carrie MacKay shared a video showing how stairs are a challenge after spending weeks in hospital battling COVID-19 (Special to Langley Advance Times)
VIDEO: Stairs a challenge for B.C. woman who chronicled COVID-19 battle

‘I can now walk for six (to) 10 minutes a day’

Jason Haskett and Rachel Williams celebrated one year off the streets in July 2020 thanks to finding a home at My Place in Vernon. (Jennifer Smith - Morning Star)
Supportive housing gives former homeless Okanagan couple hope

‘This building has helped us become stable and without it we’d probably still be out in the streets’

The south coast of B.C. as capture by the Copernicus Sentinel-2 mission. (European Space Agency)
VIDEO: Images of B.C.’s south coast from space released by European Space Agency

The satellite images focus on a variety of the region’s landmarks

A copy of the book “And to Think That I Saw It on Mulberry Street,” by Dr. Seuss, rests in a chair, Monday, March 1, 2021, in Walpole, Mass. Dr. Seuss Enterprises, the business that preserves and protects the author and illustrator’s legacy, announced on his birthday, Tuesday, March 2, 2021, that it would cease publication of several children’s titles including “And to Think That I Saw It on Mulberry Street” and “If I Ran the Zoo,” because of insensitive and racist imagery. (AP Photo/Steven Senne)
6 Dr. Seuss books won’t be published for racist images

Books affected include McElligot’s Pool, On Beyond Zebra!, Scrambled Eggs Super! and The Cat’s Quizzer

FILE – Oshawa Generals forward Anthony Cirelli, left, shoots and scores his team’s first goal against Kelowna Rockets goalie Jackson Whistle during second period action at the Memorial Cup final in Quebec City on Sunday, May 31, 2015. THE CANADIAN PRESS/Jacques Boissinot
B.C. government approves plan in principle to allow WHL to resume in the province

League includes Kamloops Blazers, Kelowna Rockets, Prince George Cougars, Vancouver Giants, Victoria Royals

The fundraising effort to purchase 40 hectares west of Cottonwood Lake announced its success this week. Photo: Submitted
Nelson society raises $400K to save regional park from logging project

The Nelson community group has raised $400,000 to purchase 40 hectares of forest

Amanda Eastwood, Community Connections Coordinator with Shuswap Immigrant Services Society, said the society has received reports of racist comments and actions in Salmon Arm and is working on education, other ways to combat the issue. (Martha Wickett - Salmon Arm Observer)
Working to counter racism in Salmon Arm, Shuswap

Shuswap Immigration Services Society gathers reports on racism in community, looks at remedies

Shuswap Youth Launch Team members Claire Waite, Abbigail Paetsch, Mikayla Wilkinson, Brynn Gowen and Caillie Hay-Vicars pause for a picture on the day of the Shuswap Youth Launch interactive event, Thursday, Feb. 25. (Contributed)
Shuswap youth over the moon with success of interactive event

Salmon Arm youth team invited to apply for $100,000 grant

Most Read