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B.C. VIEWS: Sawmill struggles as NDP boosts northwest log exports

Skeena Sawmills comeback threatened by B.C. government
18060900_web1_20190809-BPD-Terrace-pellet-plant-SkeenaSawmills
Pellet plant recently completed at TerraceB次元官网网址檚 only sawmill uses waste wood to create a new revenue stream. (Skeena Sawmills)

If thereB次元官网网址檚 a bright spot in the struggling B.C. forest industry, itB次元官网网址檚 Skeena Sawmills.

Since new investors took over the 59-year-old operation from West Fraser in 2011, they have poured millions into restarting and upgrading TerraceB次元官网网址檚 only sawmill, fixing old buildings and retooling to handle smaller second-growth timber from the economically marginal forest stands that are left in the region.

TheyB次元官网网址檝e invested more millions into building a pellet plant for biofuel exports. TheyB次元官网网址檙e working with the industry-federal agency FPInnovations to use log scanning technology that helps mills detect flaws inside logs to get a viable lumber product out of otherwise uneconomic timber.

TheyB次元官网网址檝e endured shutdowns due to log shortages, high costs and union demands. And now they face a new threat B次元官网网址 drastically increased log exports in the North Coast region that siphon off even more of the scarce high-grade timber.

ThatB次元官网网址檚 right, despite Premier John HorganB次元官网网址檚 endless rant against exporting B次元官网网址渞aw logsB次元官网网址 and jobs, despite mill shutdowns across the province due to jacked-up stumpage taxes on the coast and falling timber supply in the Interior, the export limit has been doubled in the Northwest Interior region around Kitimat, Terrace, Smithers and Hazelton. Similar cabinet orders increase export limits for the vast North Coast, Cassiar and Haida Gwaii regions, apparently so Indigenous communities in the region can make money shipping the best B次元官网网址渞aw logsB次元官网网址 overseas.

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Skeena Sawmills president Roger Keery sent a blistering letter to Horgan and Forests Minister Doug Donaldson in late July. He calculated that more than half of the NorthwestB次元官网网址檚 actual log harvest was exported before the NDP government raised the limit from 20 per cent to 40 per cent.

B次元官网网址淭he largest tenure holder in the area is B.C. Timber Sales [a provincial agency], and with this increase in exportable volumes, the government will in effect be the largest log exporter,B次元官网网址 Keery wrote. B次元官网网址淲e are shocked and disappointed by the changes to the [cabinet orders allowing exports], particularly given the many assurances we received during the review process that government was committed to supporting domestic manufacturing and investment.B次元官网网址

In response to my questions about the letter, the ministry issued a statement that quibbled with its numbers, noting the new quotas exclude export of cedar and cypress, which are now banned from export as logs.

(Full letter, ministry response below)

B次元官网网址淲e have committed verbally and in writing to Skeena that we are monitoring the impact of the [cabinet orders] and if the objectives government outlined are not being achieved, we will revisit the policies,B次元官网网址 the ministry stated.

The statement makes no reference to why log export limits have been increased. Ellis Ross, former chief of the Haisla Nation and now B.C. Liberal MLA for Skeena, offered his take.

B次元官网网址淲hat surprises me is after years of complaining and campaigning, the NDP quietly increased log exports in the Northwest,B次元官网网址 Ross told me. B次元官网网址淚 know First Nations depend on log exports for revenues, but the problem is that our local sawmill employs First Nations as well. In choosing to increase log exports, our local sawmill is put in an even more difficult position.B次元官网网址

Horgan has repeatedly stepped in to assist Donaldson with the difficulties of the forests ministry. The much-criticized forest fire recovery programs have been transferred to the public safety ministry. Former B.C. Liberal MLA Blair Lekstrom was hired to extract the province from a secret deal to set aside vast new areas for caribou protection. Delta North MLA Ravi Kahlon was appointed as parliamentary secretary for forests.

Now this.

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Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca



tfletcher@blackpress.ca

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