Pellet plant recently completed at Terrace’s only sawmill uses waste wood to create a new revenue stream. (Skeena Sawmills)

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

Skeena Sawmills comeback threatened by B.C. government

If there’s a bright spot in the struggling B.C. forest industry, it’s 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 Terrace’s 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.

They’ve invested more millions into building a pellet plant for biofuel exports. They’re 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.

They’ve endured shutdowns due to log shortages, high costs and union demands. And now they face a new threat – drastically increased log exports in the North Coast region that siphon off even more of the scarce high-grade timber.

That’s right, despite Premier John Horgan’s endless rant against exporting “raw logs” 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 “raw logs” overseas.

RELATED: Skeena Sawmills spends millions to modernize

RELATED: Syrian refugees find work at Terrace sawmill

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 Northwest’s actual log harvest was exported before the NDP government raised the limit from 20 per cent to 40 per cent.

“The 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,” Keery wrote. “We 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.”

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)

“We 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,” 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.

“What surprises me is after years of complaining and campaigning, the NDP quietly increased log exports in the Northwest,” Ross told me. “I 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.”

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.

Skeena Sawmills.donaldson.j… by Tom Fletcher on Scribd

Forests Ministry Response A… by Tom Fletcher on Scribd

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


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Houston homicide suspect remanded in custody

A Houston man accused of the second degree murder of Elija Dumont… Continue reading

Northern B.C. First Nation communities hold “Rally for the river” in Prince George

Saik’uz and Stellat’en First Nation have taken Rio Tinto BC Works to court over their operation and construction of the Kenney Dam

Want better internet? Complete an online survey by the RDBN

The regional district is doing a survey to understand internet requirements that… Continue reading

Vikings played well this season, says coach

The double-A varsity football team from NVSS received ten northern conference All-Stars

Salvation Army aims to raise $25,000 through the Christmas Kettle program

Last year the organization raised $20,000 for various social needs in the community

B.C. politicians view supermodel’s transition journey on Transgender Day

Liberal MLA Jane Thornthwaite and New Democrat MLA Spencer Chandra Herbert appear in the documentary

John Mann, singer and songwriter of group Spirit of the West dead at 57

Mann died peacefully in Vancouver on Wednesday from early onset Alzheimer’s

VIDEO: B.C. high school’s turf closed indefinitely as plastic blades pollute waterway

Greater Victoria resident stumbles on plastic contamination from Oak Bay High

B.C. mayor urges premier to tweak road speeds in an ‘epidemic of road crash fatalities’

Haynes cites ICBC and provincial documents in letter to John Horgan

South Cariboo Driver hits four cows due to fog

The RCMP’s investigation is ongoing

B.C. won’t appeal decision protecting ICBC court experts

Change to evidence rules next to save money, David Eby says

1898 Yukon gold rush photo featuring Greta Thunberg look-alike sends internet into tailspin

Jokes erupted this week after a 120-year-old photo taken by Eric A. Hegg surfaced from archives

BC Ferries’ two new hybrid vessels set sail for B.C. from Romania

Two Island Class ferries to be in use by 2020

Distracted driving tickets not for ICBC revenue, B.C. minister says

Minister Mike Farnworth calls SenseBC analysis ‘nonsense’

Most Read