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

The Great Bear Snowshed on the Coquihalla Highway (Highway 5) in British Columbia. Truck driver Roy McCormack testified in BC Supreme Court in Chilliwack on Feb. 25, 2021 that his brakes started smoking in about this location, and soon after he lost all braking, which led to a multi-vehicle crash further down the road on Aug. 5, 2016. (GoogleMaps)
Truck driver charged with criminal negligence in Coquihalla crash is accused of ignoring smoking brakes

Just before the crash the smoking truck seen entering Zopkios brake check and leaving shortly after

Dr. Andy Edelson (front left) and Ken Selvaraja hold the cheque, with (from left to right) Jim Hinds president of Rotary Club of Mission, Judith Ray, chair of MATH and Lloyd Rash, Mission rotarian in the back.
Funds raised for CT scanner feasibility study at Mission Memorial Hospital

Ken Selvaraja and Lanka Jewels raise $39,000 of $70,000 needed through pendant raffle

Kathleen Gros will be helping local creatives explore the intersection of words and pictures through comic books in an upcoming online workshop.
Vancouver graphic novelist to share skills in online workshop with Agassiz Library

Kathleen Gros will be leading the Magical World of Words and Pictures workshop on March 6

The last three wild northern spotted owls live near the Spuzzum Watershed outside of Hope. The province recently ordered a halt to logging for at least a year to give the owls a chance to survive.  (Photo/Jared Hobbs)
Logging halted in northern spotted owl habitat near Hope

Halt will last at least a year, gives time to formulate survival plan for Northern Spotted Owl

The Rocket Science S.T.E.M. camp will run virtually during spring break. (Submitted photo)
Abbotsford Airshow, Gearbots Educational Resources launch Rocket Science camp

Virtual format of camp open to students aged nine and up, will run during spring break

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

A new survey has found that virtual visits are British Columbian’s preferred way to see the doctor amid the COVID-19 pandemic. (Unsplash)
Majority of British Columbians now prefer routine virtual doctor’s visits: study

More than 82% feel virtual health options reduce wait times, 64% think they lead to better health

Captain and Maria, a pair of big and affectionate akbash dogs, must be adopted together because they are so closely bonded. (SPCA image)
Shuswap SPCA seeks forever home for inseparable Akbash dogs

A fundraiser to help medical expenses for Captain and Maria earned over 10 times its goal

Cory Mills, Eric Blackmore and A.J. Jensen, all 20, drown in the Sooke River in February 2020. (Contributed photos)
Coroner confirms ‘puddle jumping’ in 2020 drowning deaths of 3 B.C. men

Cory Mills, Eric Blackmore and A.J. Jensen pulled into raging river driving through nearby flooding

Castlegar doctor Megan Taylor contracted COVID-19 in November. This photo was taken before the pandemic. Photo: Submitted
Kootenay doctor shares experience contracting COVID-19

Castlegar doctor shares her COVID experience

Shaelene Keeler Bell. (Facebook)
Candlelight vigil planned for Chilliwack mother missing for four weeks

Virtual event to ‘spread some light’ for 23-year-old Shaelene Bell of Chilliwack

Ashley Paxman, 29, is in the ICU after being struck by a vehicle along Highway 97 Feb. 18, 2021. She remains in critical condition. (GoFundMe)
Okanagan woman in ICU with broken bones in face after being struck by car

She remains in serious condition following Feb. 18 incident

The booklet roots present day activism in the history of racist policies, arguing the history must be acknowledged in order to change. (CCPA)
New resource dives into 150 years of racist policy in B.C.

Racist history must be acknowledged in order to change, authors say

The BC SPCA is offering many chances for school-aged kids to learn about animal welfare and other animal topics. Pictured here is Keith, a three-month-old kitten seen on Nov. 4, 2020 at the Chilliwack SPCA. (Jenna Hauck/ Chilliwack Progress file)
From pets to wildlife, BC SPCA offers animal education programs geared to youth

BC SPCA offering virtual spring break camps, workshops and school presentations

Most Read