Monthly Archives: January 2019

Forestry, accounting for almost half of employment in the goods-producing sector, is a challenging story with a downward trend and an uncertain forecast in northern B.C., according to the Northern Development Initiative’s Trust (NDIT) second annual State of the North Report. It also notes that employment in forestry in the Cariboo-Chilcotin-Lillooet region declined between 2016 and 2017. “Our major forest companies enjoyed record lumber prices through most of 2018, which has helped keep them in the black, however, they’re also impacted by export tariffs in the U.S. market due to the as-yet unresolved Softwood Lumber Agreement. …Looking forward, reduced timber supply will place continued downward pressure on this sector and force some forestry companies to rationalize their operations, which could mean shutdowns, further job loss and community impacts in the coming years,” NDIT CEO Joel McKay writes.

David Elstone

Logging contractors are hopeful that the latest B.C. government changes to forest policy will stabilize a traditional business so companies can be sold as a going concern, rather than winding up in an auction of costly trucks and harvesting machines. At the recent TLA convention, Premier John Horgan got a standing ovation when he announced changes to improve relations between B.C. forest licence holders and logging contractors. But the loggers were quiet about the NDP government’s proposed changes to reduce log exports, which the TLA has maintained for years is the revenue source that keeps some of them working in marginal-value stands. “We are nervous about them to say the least, because we don’t know how it’s going to work,” David Elstone, executive director of the TLA. …Elstone said chronic problems with domestic log bidding and log exports are linked.

John Mcinnis opened a building supply business in downtown Prince George in 1920. His lumber yard covered an area of two square blocks. John was a founding member of the Cooperative Commonwealth Federation, now the New Democratic Party. He won in the provincial election of 1945 and served until 1949. During this time in 1948, he addressed Canada’s unfavourable balance of trade with the United States and called for a stop to the practice of exporting logs. During my early 20s, I worked for Stolberg Mill Construction where we built sawmills and planner mills throughout B.C. and Alberta. Back then, large-scale portable sawmills were engineered and fabricated to get closer to the wood supply, saving enormous transportation costs. …One of many reasons they are able to get away with exporting logs is that they harvest the logs from remote areas and in this way they are able to operate under the silence of the remote backcountry of B.C. 

Brad Thorlakson

The president and CEO of Vernon-based Tolko is one of two more Canadians named to the US Softwood Lumber Board (SLB). Brad Thorlakson will represent Canada West on the board. Kevin Edgson of Montreal, CEO of EACOM, will represent Canada East. Thorlakson and Edgson join four other new members, all from the US. …“The Softwood Lumber Board thanks Secretary Perdue for appointing a strong slate of new directors who reflect the diversity of the industry and will bring the unique perspectives from their regions,” said Cees de Jager, SLB’s CEO. The SLB is an industry-funded initiative established to promote lumber’s value proposition and increase demand for softwood lumber products in outdoor, residential and non-residential construction.

B.C.’s former solicitor general Rich Coleman may be called to testify in a lumber company lawsuit which is being heard in court in Nanaimo starting today, Jan. 22. TimberWest is being sued by the former owner of a major logging contractor, over a bankruptcy in 2008. …According to court documents, TimberWest wanted to break up its work among more, smaller contractors to save money. Ted LeRoy Trucking (TLT) alleges that to do that, Timberwest needed to drive TLT out of business to terminate a contract. TLT alleges that TimberWest lied to TLT’s bankers and to union officials about the contractor’s finances, refused to allow TLT to log certain areas, and refused to negotiate annual rates in good faith, among other things. None of the claims have been proven in court, and TimberWest has denied all the claims.

VANCOUVER – As a result of the final phase of the logging contractor sustainability review, the ministry will amend the Timber Harvesting Contract and Subcontract Regulation to make forest-sector contractors and licensees more sustainable and competitive in the long term. …“This review was done to make sure logging contractors’ paycheques accurately reflect the work they do and their cost of doing business, while also keeping licensees competitive.” said Doug Donaldson, Minister of Forests. …David Elstone, executive director, TLA said, “Today’s announcement… will result in a fundamental change in the relationship between contractors and their employers. …Susan Yurkovich, president and CEO, BC Council of Forest Industries said… “The contractor sustainability review has provided a forum to explore opportunities to make improvements that support the overall sustainability of contractors, licensees and the industry as a whole. While there is still more work to do, we are generally supportive of the recommendations that are emerging. 

Amarjeet Sohi

Three envelopes of money were handed out Wednesday from the federal government to First Nations in the northern region of the province. The funding was given to Aboriginal economic development projects that would help develop close-to-home jobs and solve some close-to-home problems within some rural communities. Each of these projects exhibited a technological advancement on behalf of local living. The innovation word was the theme of the B.C. Natural Resources Forum held in Prince George and attended by federal Minister of Natural Resources Amarjeet Sohi. …”The funding that we have announced here today is for turning waste wood into energy – that’s remarkable – and getting remote communities that are not connected to the grid system off of diesel,” he said. “Diesel pollutes a lot. If we can use a sustainable product, bioenergy, wood, it is a win-win.

The economy of Northern B.C. will remain stable through 2019 thanks to oil and gas developments and construction of the Site C dam, but challenges remain for the region’s struggling forestry sector, according to an economic report of the region. …Northern B.C. has been buoyed by improved oil and gas market conditions in 2017 and 2018. …The forestry industry, however, has been burned by a combination of wildfires and the Mountain Pine Beetle epidemic. …”Looking forward, reduced timber supply will place continued downward pressure on this sector and force some forestry companies to rationalize their operations, which could mean shutdowns, further job loss and community impacts in the coming years,” the report states. Wood product exports to China are down 20%, but up 24% in Japan. Pulp and paper exports to China are up 30%, and sales of paper products are at their highest level in more than a decade.