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B.C. Liberals call for tax relief for struggling forest industry

Donaldson rejects B次元官网网址榤essing with stumpage systemB次元官网网址 that inflames U.S.
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B.C. Liberal forest critic John Rustad (Hansard TV)

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.

B次元官网网址淛ohn Horgan needs to hold himself accountable, stop making excuses and stop the job losses in this province,B次元官网网址 Rustad said. B次元官网网址淎t a time when forestry workers across the province should be hard at work, instead they are facing job losses and no paycheques.B次元官网网址

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.B次元官网网址檚 lumber is subsidized by artificially low cost of logs.

B次元官网网址淢essing with the stumpage system is not a solution,B次元官网网址 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.

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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 B次元官网网址渦ntil market conditions stabilize.B次元官网网址

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 B次元官网网址渟hort-term support for workers and communities,B次元官网网址 Donaldson said.



tfletcher@blackpress.ca

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