The B.C. government has announced a $69 million fund for Interior forest workers and their communities to assist with forest industry closures and curtailments that have swept the province.
Forests Minister Doug Donaldson said $40 million over two years goes to early retirement funds. Another $15 million funds short-term work programs, focused on wildfire prevention and “community resiliency projects.”
Municipalities subject to permanent mill closures are eligible for an immediate $100,000, and those with indefinite closures can get $75,000 for community programs.
In PG with Labour Min Bains and Parliamentary Sec Ravi Kahlon announcing our $69 million, 5-point action plan based on grassroots feedback to assist workers & communities impacted by closures & permanent curtailments in Interior. Thanks Mayor @Lynhallpg for hosting us. #bcpoli pic.twitter.com/hU9AwN7LM7— Doug Donaldson (@DonaldsonDoug) September 17, 2019
Four communities are eligible for the permanent closure fund: Quesnel, Chasm, Vavenby and Fort St. James. Maple Ridge, where Interfor announced last week it is permanently closing Hammond Cedar, is not included in the community funds, but retraining funds will be available, the ministry said in a statement.
Labour Minister Harry Bains said the training assistance, employment and mental health support is designed to prevent the “emptying out” of forest-dependent communities.
“We all realize there is no quick fix for the forest industry,” Bains said.
Donaldson said the province’s stumpage fees for Crown land timber are higher than companies want, partly because of high log costs as a result of shortages from beetle kill and forest fires. International pressures such as low lumber prices and U.S. import tariffs are also factors, and reducing stumpage is characterized as a subsidy by U.S. producers.
Donaldson said the province has been asking the federal government for assistance, but B.C. Liberal forest critic John Rustad said nothing is likely to happen until the federal election is over and a new cabinet gets to work.
“If you talk to any of the workers, they want work,” Rustad said. “There’s nothing here about addressing B.C.’s competitiveness issues.”
The B.C. Council of Forest Industries has its own suggestions to help the industry’s transition to a decline in allowable timber harvest that is expected to continue until 2030. In a position paper released this week, COFI calls for the province to establish a “working forest” designation to define the approximately half of the B.C. land base that is not subject to park, protected area or other restriction on forest activity.
B.C. is also changing its log export and harvest regulations to reduce wood waste. A policy took effect in April that charges triple stumpage for any wood deemed usable that is left behind when sawlogs are taken from Crown land.
This policy was cited by Teal-Jones Group in its decision to halt logging on the B.C. coast and Vancouver Island, and Donaldson says he expects similar objections to be raised by Interior producers.
“It might cost you $80 to $100 per cubic metre to get it out, and you get $50 for it, that makes it very challenging to do it on a sustained basis,” COFI CEO Susan Yurkovich said in an interview.