Category Archives: Business & Politics

…B.C. Premier David Eby has directed his cabinet to prioritize economic development and make it easier for corporate interests to feel confident investing in the province. Eby’s new mandate letters for cabinet focus heavily on finding ways to support B.C.’s industries — including forestry, mining and oil and gas development — by speeding up permitting processes and reducing regulatory burdens… “There were virtually no environmental directions in the letters that weren’t qualified by industry interests or by economic considerations,” said Jessica Clogg, the executive director at West Coast Environmental Law. …Sarah Korpan, government relations for Ecojustice, said the new mandates signal “the environment is nothing more than an afterthought” for the NDP government. …a government spokesperson said the NDP’s commitments to protecting old-growth forests and 30 per cent of the province’s land and water by 2030 remain intact. …Eby’s letter to new Forests Minister Ravi Parmar mentions old-growth forests only once. 

The president of the Union of BC Indian Chiefs is reversing his previous opposition to the scrapped Northern Gateway pipeline project that would have created another route for Alberta’s oil to get to the Pacific Ocean. Grand Chief Stewart Phillip said Tuesday that while he “really fought against” Northern Gateway’s construction before it was scuttled in 2016, that was a “different time” and Canada now has “no choice” but to reconsider. “We are staring into the abyss of uncertainty right now with climate change, the climate crisis and the American threat,” Phillip said ahead of a meeting with B.C. First Nations leaders and the provincial cabinet in Vancouver… “I would suggest that if we don’t build that kind of infrastructure, Trump will – and there will not be any consideration for the environment or the rule of law… “I think that we can do better. I think we need to do better.”

The Minister of Forests Ravi Parmar says he plans meet with Nelson and Castlegar forestry leaders to discuss the industry’s future amid the U.S. tariff threats. “We call it a tariff, but this is a tax, and in relation to forestry, this is going to mean that for the millions of homes that need to be built in the United States, Americans are going to have to pay more because of their president,” said Parmar in an interview with Castanet News. …Referring to discussions with industry leaders, including Ken Kalesnikoff, CEO and president Kalesnikoff Lumber Co. Ltd. in Castlegar, a key player in mass timber in B.C., Parmar noted that the company utilizes approximately 300,000 cubic meters of timber annually and is focused on value-added opportunities in the region. “I think the Americans have a misunderstanding of B.C. ‘s forest sector, of Canada’s forest sector,” he said, adding that the tariffs would be unfair and unjust.

David Elstone

It’s hard to predict the level of interest from buyers for the San Group’s sawmills and manufacturing plants on Vancouver Island and in Langley, given the uncertain economic climate, says a B.C. forestry consultant. Land, facilities and equipment in Port Alberni and on the Lower Mainland will be attractive to some purchasers, said David Elstone, a professional forester and business analyst who is managing director of Spar Tree Group of North Vancouver. But the bigger question is whether buyers would be interested in continuing forest-sector operations or would consider the land more valuable for another kind of use, Elstone said Friday. …Anyone who purchases San Group assets would want to have forest tenure, Elstone said. One of the company’s weaknesses was that it did not control the supply of timber, which forced it to turn to the open market to buy logs at a time when fibre was in short supply.

VANCOUVER, BC – Western Forest Products announced that its hourly employees represented by United Steelworkers Local 1- 1937 have voted to ratify a new collective agreement. The new six-year collective agreement has a retroactive effective date of June 15, 2024, will expire June 14, 2030 and provides for the following general wage increases: Year 1 – 4%, Year 2 though Year 5  – 3%, and Year 6 – greater of 3% or the rate of inflation. The new agreement also includes enhancements to certain benefits and terms of mutual interest for the USW and the Company. …Western’s President and CEO Steven Hofer said: “We are pleased that our USW-represented team members have found it meets their interests and needs. …The BC forest sector is facing many challenges, and we look forward to working together with our union colleagues to build a brighter future for our company.”

Energy and forest products dominate the list of what B.C. ships across the U.S. border, as a Conservative MLA accused David Eby’s NDP government of leaving the province unprepared for tariffs threatened by incoming president Donald Trump. A new report from the Business Council of British Columbia underscores the importance of B.C.’s trading relation with the United States. It finds energy (mainly natural gas, some electricity) accounts for 27 per cent of all exports to the United States, closely followed by forestry and building material products (24 per cent). …Overall, 54 per cent of provincial exports go to the United States, which makes that country B.C.’s largest trading partner. …Workers in mining, quarrying, and oil and gas extraction contribute $481,834 in GDP each; utilities sector workers $483,142 and forestry and logging workers  $186,613 — “all significantly higher” than the provincial average of $126,209 per worker. “A decline in these jobs would significantly reduce provincial output and income,” the report said. 

See the full report here: New Report Highlights B.C.-U.S. Trade Ties Amid Tariff Threats 

Canada may find itself in a stronger position than the United States if a trade war breaks out between the two countries.  Don’t take my word for that. That’s Paul Krugman speaking. You know, the distinguished professor of economics. …Dr. Krugman argued that U.S. president-elect Donald Trump may imagine that the United States would have the upper hand, but it ain’t necessarily so. …“If you look at the actual composition of U.S.-Canada trade, it suggests if anything that Canada is in a stronger position if trade war breaks out,” he wrote. This is because, “outside oil and gas, U.S. producers have more to lose in terms of reduced sales in Canada than Canadian producers have to lose in reduced sales to the United States.” Moreover, Dr. Krugman speculated, “Trump really, really won’t want to impose tariffs on Canadian oil, which would directly increase energy costs in the U.S. Midwest.”

With the annual harvest a fraction of what it once was and a declining workforce, British Columbia’s forestry minister admits that the industry is in a state of transition – but needed changes won’t happen without participation of First Nations. The Ministry of Forests announced a review of B.C. Timber Sales … the review seeks to find the potential for growth and diversification in an industry that has seen harvests shrink in recent years. …BC Timber Sales has at times been at odds with First Nations in whose territory the Crown timber is for sale. In 2014 a dispute over how the agency was managing cedar in the Nahmint Valley led the Tseshaht to blockade access to logging roads… more disagreements followed when BCTS sold timber from the valley without the First Nation’s consent. …Lennard Joe, CEO of the BC First Nations Forestry Council, is on an expert team assembled to help with the BCTS review.

Kurt Niquidet of the BC Council of Forest Industries discusses the challenges facing B.C.’s forest industry, the threat of higher American tariffs and measures the B.C. government is taking to make the industry more resilient.

As leaders in British Columbia’s business and resource sector, we welcome Premier Eby’s commitment to strengthening B.C.’s economy through responsible resource development. His remarks at the BC Natural Resources Forum underscore the vital role resources play in our province’s prosperity—from the contributions they make to family-supporting jobs, to the revenue they generate for public services such as healthcare, to their support of reconciliation. In the face of large government-budget deficits, weak private-sector job growth, and global uncertainty, including the possibility of U.S. tariffs, B.C. must take bold steps to strengthen its economic resilience. Growing our economy by supporting the development of our resources makes sense. The Premier outlined a vision for cutting red tape, speeding up decision-making, and ensuring the government is no longer working at cross purposes to industry as a way to encourage this growth.

Most of the San Group’s assets — including sawmills and a manufacturing plant in Port Alberni — are going up for sale today in a bid to recoup about $150 million for creditors under a process led by a court-appointed monitor. B.C. Supreme Court Justice Michael Stevens also agreed Thursday to extend the company’s protection from creditors until May 30. Monitor Deloitte Restructuring Inc., which received approval to start the sales process at a hearing in Vancouver, plans to develop a list of potential bidders and divide the company’s property into different offerings, hoping to maximize their value to help satisfy creditors. The plan set May 30 for agreements with potential purchasers. That will be followed by court approval around June 16 and closing dates not later than June 30. The sale would include assets of “every nature and kind” other than three entities, including the leased Acorn mill, manufacturing plant and other facilities in Delta.

The B.C. government has launched a review of BC Timber Sales (BCTS) to ensure British Columbia’s forestry sector is continually evolving to overcome challenges and create a guideline for a stronger, more resilient future. “Forestry in B.C. is in transition, and the people and communities who rely on our forests – who are bearing the brunt of ongoing challenges – want change now,” said Ravi Parmar, Minister of Forests. “That’s why I have asked Lennard Joe, George Abbott and Brian Frenkel to look at the opportunities to leverage BCTS to set B.C.’s forest industry up for the next 100 years.” The launch of the review recognizes the significant pressure the forest sector is under, from declining allowable annual cuts, difficulty accessing fibre, global economic conditions and heightened environmental and trade-protection efforts. …managing roughly 20% of the Province’s public timber supply, BCTS has an integral role in the success and resiliency of British Columbia’s forestry sector. 

Political changes at the top in both Canada and the U.S. usher in a new period of uncertainty and threats for B.C.’s already weakened resource economy. The blows keep coming for our forest industry, with incoming U.S. president Donald Trump vowing to ramp up his country’s 30-year attack on lumber imports with across-the-board tariffs that would double the current pain, and extend it to all imports including oil and gas. Those products are at the core of B.C.’s economy and its reliance on U.S. customers. …One new project that could be reactivated is the Northern Gateway oil pipeline, snuffed out by Prime Minister Justin Trudeau’s environmental posturing. …About 60 per cent of U.S. oil imports come from Canada. That’s the magnitude of Trump’s threat – to do to oil and gas what his country has habitually done to lumber, enriching the domestic industry while starving the market and driving up U.S. consumer prices. …Whether a new federal government can or wants to revive Northern Gateway is unknown. 

Mercer Celgar is proud to partner with Skemxist Solutions, an Osoyoos Indian Band (OIB) company, to jointly operate a log sort yard in Okanagan Falls, British Columbia. This collaboration highlights our shared commitment to sustainability, responsible forest resource utilization, and creating economic opportunities that respect cultural values and strengthen community connections. The Osoyoos Indian Band, recognized for its economic and community development leadership, joins forces with the Sutherland Group, a forestry solutions leader specializing in efficient resource management. Together, they bring cultural heritage and operational expertise to Skemxist Solutions. Mercer Celgar actively supports this partnership as part of our sustainability efforts, contributing responsibly sourced wood fibre while respecting the OIB’s stewardship of their lands. “This partnership exemplifies an international corporation’s commitment to working alongside the Osoyoos Indian Band to foster economic stability and sustainable forestry,” said Dan Macmaster, Forestry Manager, OIB.