Category Archives: Business & Politics

John Rustad

A BC Conservative government would axe B.C.’s carbon tax, lower taxes in general, tackle government debt, remove CleanBC restrictions that hamper new LNG development, reform B.C.’s stumpage system for forestry, reverse course on drug decriminalization, get tough on violent crime, and take a different approach to reconciliation with First Nations. John Rustad, leader of the Conservative Party of B.C., sketched out his party’s election platform Thursday before a business audience at a meeting hosted by the Greater Vancouver Board of Trade. Rustad opened with a criticism of the NDP government’s handling of the economy, spending and social issues. …He said the NDP government’s commitment to protecting 30 per cent of B.C.’s land by 2030 threatened working forests, farmland and ranch land. Rustad said he would also address permitting for other resources, including forestry to free up timber for sawmills, and would reform the current stumpage system.

British Columbia is an unusual place for several reasons. One is the outsized role land-based industries play in our economy. …Second is that the government owns and controls more than 90% of all land, although the Crown’s jurisdiction is limited by the legal rights of First Nations. Against this backdrop, over the past several months the David Eby government has unveiled a host of initiatives affecting land use and the management of natural resources. The extent of the proposed changes to laws, policies and regulatory frameworks, if enacted, will be highly consequential for industry, workers and resource-dependent communities, and will dampen real income growth. …While often well-intentioned, the province’s actions risk creating widespread uncertainty about the investment and operating environment for all land-based industries. And this comes at an inopportune time as B.C.’s economy is visibly sputtering, and the government’s fiscal position is deteriorating at a breathtaking pace.

Ellis Ross

More politicians are coming forward to urge governments to end their commitment to the broad ideals of the UN’s Declaration on the Rights of Indigenous Peoples (UNDRIP). They maintain that the B.C. government’s attempt to appear pro-Indigenous is actually holding back First Nations development through forestry, mining, natural gas and other industrial agreements. Former Haisla Nation chief councillor Ellis Ross is echoing the new position of B.C. Conservative leader John Rustad, who wants to repeal UNDRIP, saying it was established for conditions in other countries — not Canada. …Ross said governments’ embrace of UNDRIP is blocking the progress B.C. First Nations have made through 40 years of courtroom decisions, which have paved the way for Indigenous people to hammer out pragmatic agreements that increase Indigenous wealth. “Why do you want to stop all that progress?”

CHILLIWACK, BC — Fire crews were called out to a lumber mill in Chilliwack at around 4:30 p.m. on Wednesday afternoon. Calls came in to the Chilliwack Fire Department reporting smoke and a metal silo on fire at Visscher Lumber on Lickman Road north of South Sumas Road. When firefighters arrived on scene they reported that the building was fully engulfed in flames and there were exposures nearby. One witness reported hearing multiple explosions prior to seeing smoke. First responders were able to knock down the fire just before to 5 p.m., but smoke could still be seen in the area after 6 p.m. as crews continued to douse flames and hot spots.

The Kruger Mill in Kamloops is all of the sudden getting about a third of its fibre supply from nearby areas recently impacted by wildfire. That number ballooned from less than two per cent in 2022 to 33 per cent in 2023 — something Tom Hoffman, the mill’s fibre manager, said is necessary to produce the amount of product the mill typically pumps out in a year. He said Kruger typically uses 2 million cubic metres of pulp and 800,000 cubic metres of hog fuel logs to burn in its power plant each year. As of this spring, Kruger has seen a shortfall in its fibre supply of about 125,000 cubic metres worth of chips, Hoffman said, but it has not yet resulted in layoffs. “We’re working with our partners and government to close that gap and ensure the sustainability of the mill,” Hoffman said. He said using more fire-affected wood is part of the mill’s effort to fill the fibre gap.

Christy Clark

Nothing quite roils the rank-and-file workforce like the yesteryear boss showing up suddenly professing to possess all the answers. …This modern complexion was laid before the Business Council of British Columbia summit by its policy vice-president, David Williams. …Trifling things: that we’re 48th among North American states and provinces in GDP per capita. That were in a slide and maybe by 2028 we’re back at 2018 levels. …Two former bosses dropped by – both named Clark, a woman named Christy and a man named Glen. …Mr. Clark, long in the corporate world as a board member at Canfor, Rogers and Overstory Media Group, nodded to Williams’ slideshow, then proceeded to pick apart his party’s government. Near and dear to his corporate heart has been the forestry sector, and he was withering on the NDP’s regulatory regime and the cascade of changes he says have left industry mesmerized. Stop the change, he said. “We need a lengthy period of stability.”

Kamloops council is hoping it will have the support of other provincial municipalities to lobby the B.C. government for a permanent, province-wide forestry sector council and a plan for stable and sustainable fibre supply. Council voted in favour of a motion put forward Tuesday by Coun. Katie Neustaeter, which recommended submitting the forestry-focused resolution to the Union of B.C. Municipalities convention this fall. Neustaeter said the resolution calls on UBCM to lobby the provincial government to “enact measures for a stronger B.C. forest sector.” This includes “creating a permanent province wide forestry sector council, developing a province wide plan for stable, sustainable economic fibre supply, creating a forest adjustment bureau to redesign and integrate worker and community adjustment supports, and developing a strategy to maximize value added jobs for stable fibre harvesting.”

FORT ST. JOHN, B.C. – Canfor’s Fort St. John sawmill has announced two temporary curtailments of sawmill and planer operations. The first curtailment, announced in an internal memo on May 8th, will run from June 28th to July 15th, and the second, detailed in a June 12th memo, will run from August 26th to September 6th. The May 8th memo also stated that employees can request a vacation pay advance on any vacation accrued since May to offset the interruption of earnings. …After the first curtailment, weekend personnel will return to work on July 14th, weekday employees will return on July 15th, and graveyard shifts will restart on July 14th. During the second temporary curtailment, weekend shift personnel will resume regularly scheduled shifts on September 9th, graveyard shift personnel will resume on September 8th, and weekend shifts will resume on September 6th.

MCKENZIE, BC — Conifex Timber will appeal the ruling of the BC Supreme Court upholding a government decision that
prevented Conifex from branching out into cryptocurrency mining. …Those plans were put on hold late in 2022 when the Lieutenant Governor in Council relieved BC Hydro of the obligation to supply electrical service for cryptocurrency projects for a period of 18 months. The cryptocurrency moratorium forced Conifex to halt development. …“Conifex has not been provided any credible justification for allowing BC Hydro to deny service,” said Ken Shields, CEO of Conifex. …Conifex also announced that it is curtailing its sawmill and planer for a period of two weeks commencing June 17, 2024. The curtailment is the result of ongoing weather-related transportation challenges that have delayed spring log deliveries and resulted in lower than planned log inventories. It is anticipated that the reduced operating schedule will impact sawmill production capacity by approximately 8,500 Mfbm. 

MERRITT, BC — Aspen Planers forced to temporarily cease operations due to the forestry crisis. Due to what AP Group executive VP Bruce Rose calls “market realities,” Aspen Planers has ceased operations since April 25. Prior to the closure, Aspen ran on a “only a single shift daily basis for much of 2023 and 2024,” says Rose. “The whole forest industry in BC is collapsing and it’s just in a terrible state,” said Rose.” “The frustrating part is that there doesn’t seem to be any sense of urgency or any support from the B.C. government to address any of these challenges,” said Rose.” …According to Rose, the core problem “is that British Columbia is now the highest cost forest products manufacturing in North America.” …Rose looks at Alberta where stumpage, the cost companies or individuals pay provincial governments when harvesting trees off crown land, is much cheaper. The closure of Aspen Planers has affected approximately 100 employees.

Prince George, B.C. – DC Equipment proudly announces the opening of its new manufacturing facility in Prince George, marking the return of Madill equipment production to British Columbia. The first machines to be produced at this facility will be the Madill 3000B Log Loaders, heralding a new chapter in Madill’s rich history and strong heritage in B.C. “We are excited to bring Madill manufacturing back to its roots in British Columbia,” said Dale Ewers, Owner and Managing Director of DC Equipment. “This is more than just a strategic move for us; it’s about preserving and continuing the legacy of Madill, which has been a cornerstone of the logging industry for over a century.” …DC Equipment’s expansion into British Columbia is part of a broader strategic initiative to enable manufacturing at a local level whilst catering for global demand.

Jock Finlayson and Glen Clark

The B.C. NDP government has made some significant policy changes on everything from indigenous reconciliation and forestry to climate change. But it should pump the brakes on land use changes that create uncertainty for business and investors, former B.C. NDP premier Glen Clark said at the Business Council of BC’s annual Business Summit. …Clark said some [current] government action is creating great uncertainty for business. …Clark said the B.C. forestry sector in particular is in trouble. “The industry is literally a shadow of its former self,” he said. “In recent years, the provincial government has made literally dozens of changes to the rules governing forestry and land use,” he said. “While each change, in and of itself, may be justified, the cumulative impact on industry operating on the land has been devastating. “The B.C. forest industry is in crisis. Sawmills have closed and more are closing. Harvest levels are down… Pulp mills are unprofitable.” Last year, B.C. harvested only 60 per cent of the annual allowable cut, Clark said. “Even when fibre is available, industry does not have access to it.”