Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., on April, 1, 2018. Mills in the heart of Canada’s timber industry have fallen quieter this winter as wildfires and infestations made worse by climate change have made vast tracts of once valuable forest into barren stands of dead trees. THE CANADIAN PRESS/Jonathan Hayward

Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., on April, 1, 2018. Mills in the heart of Canada’s timber industry have fallen quieter this winter as wildfires and infestations made worse by climate change have made vast tracts of once valuable forest into barren stands of dead trees. THE CANADIAN PRESS/Jonathan Hayward

B.C. forest industry facing uncertain future as mills close across province

Finance Ministry budget numbers show forest revenues are down 11 per cent so far this year

It seems barely a day goes by without an announcement about layoffs, temporary closures or permanent mill shut downs in British Columbia’s struggling forest industry.

As a result, thousands of workers, their families and many communities have been left facing uncertain futures.

The layoffs and shutdowns are causing widespread economic and social pain, says B.C. Liberal forestry critic John Rustad.

“It’s unfathomable to think of the carnage that’s already happened, let alone what will happen this winter,” he said in a recent interview. “It’s going to be a very bleak winter.”

Rustad said on a visit to Campbell River a car dealer told him he repossessed 10 vehicles from forestry workers who were out of work. One laid-off worker asked him if he could keep his vehicle until Christmas and sold the dealer a load of firewood to make a payment, Rustad said.

On Vancouver Island, where Mosaic Forest Management announced an early winter shutdown of timber harvesting operations, 2,000 people are out of work indefinitely.

Among those affected are also about 175 workers at a mill owned by Tolko Industries in Kelowna where the plant will close permanently on Jan. 8, while Canfor’s decision to permanently close its mill in Vavenby, north of Kamloops, resulted in the loss of 172 jobs in the community of about 700 people.

“Basically, I would say 80 per cent or more of the coastal forest sector is down,” Rustad said. ”It’s not good. It’s really, really tough.”

Finance Ministry budget numbers show forest revenues are down 11 per cent so far this year and projected harvest volumes of 46 million cubic metres are the lowest in years.

The NDP government faced daily calls for action from the Liberals during the fall session of the legislature, which concluded Thursday.

“When will the premier and his government start paying attention and do something?” asked Liberal co-finance critic Shirley Bond, whose Prince George riding is facing about 50 impending layoffs at a mill.

READ MORE: B.C. forest industry aid on the way, Doug Donaldson says

Liberal rural development critic Donna Barnett wants the government to grant payment relief to Sigurdson Forest Products, which owes the province $4.6 million in stumpage fees. She said the company in Williams Lake is committed to paying the fees but needs a temporary stay on the payments to save up to 200 jobs.

“SFP is a viable company and wants to continue operations,” said president Brian Sigurdson in a letter to Finance Minister Carole James, Premier John Horgan and Forests Minister Doug Donaldson.

“We want to continue to support all of our employees and our local businesses and community.”

Donaldson said the request for relief is before the Ministry of Finance, but he added stumpage rates in the B.C. Interior dropped by 12 per cent in October and 24 per cent on the coast.

He also said political intervention into the stumpage system could make matters worse for B.C. companies because it could result in a trade challenge from forest producers in the United States. B.C. lumber exports to the U.S. already face tariffs of about 20 per cent.

Low timber prices and the large-scale destruction of Crown harvest zones during the pine beetle epidemic and two successive record wildfire seasons have hurt the industry, Donaldson said.

“We understand the impact the global downturn is having on the economies of the Interior and we’re determined to address it,” he said in the legislature.

He said the province has taken steps to drive more logs to domestic production and for use in value-added products.

Industry spokeswoman Susan Yurkovich said it can rebound but companies need assurances from the government about long-term availability of a timber supply at a reasonable cost. The industry itself must move to greener products and become more competitive on the global market, she added.

READ MORE: Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

“I’ve spent 25 years in the resource sector and I’ve spent a lot of time in many of the communities that are hurting,” said Yurkovich, president of the Council of Forest Industries.

“The most important thing we can do for those communities in transition is to look at where are the future opportunities for the sector.”

A report by the council in September said the industry has been a cornerstone of the B.C. economy for more than 100 years and the well-being of 140 communities is closely linked to the health of the sector.

It said forestry supports about 140,000 jobs and generates about $4 billion in revenues annually for the province.

Dirk Meissner, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

It costs as little as $7 to charge an EV at home. (Scott Tibballs / The Free Press)
Electric Vehicles a rare sight (in the Kootenays), but change on the way

Electric pickups will increase the appeal of zero-emission vehicles in years to come according to Blair Qualey of the New Car Dealers Association

Linda Krawczyk and her dad Doug Finney enjoyed a ride around beautiful Fernie on Friday thanks to Melanie Wrigglesworth and the local chapter of Cycling Without Age. (Scott Tibballs / The Free Press)
Cycling Without Age goes for its first spin

Doug Finney (86) got to enjoy a ride around Fernie

The Cranbrook Community Forest is good to go for mountain biking. (Scott Tibballs / The Free Press)
Snow’s done, time to hit the trails

South Country trails are good to go

Interior Health nurses administer Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16. (Phil McLachlan/Kelowna Capital News)
69 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 9,840 since the pandemic began

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Pall Bearers carrying the coffin of the Duke of Edinburgh, followed by the Prince of Wales, left and Princess Anne, right, into St George’s Chapel for his funeral, at Windsor Castle, in Windsor, England, Saturday April 17, 2021. (Danny Lawson/Pool via AP)
Trudeau announces $200K donation to Duke of Edinburgh award as Prince Philip laid to rest

A tribute to the late prince’s ‘remarkable life and his selfless service,’ the Prime Minister said Saturday

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. homeowners are being urged to take steps to prepare for the possibility of a flood by moving equipment and other assets to higher ground. (J.R. Rardon)
‘Entire province faces risk’: B.C. citizens urged to prepare for above-average spring flooding

Larger-than-normal melting snowpack poses a threat to the province as warmer weather touches down

Vancouver-based Doubleview Gold Corp. is developing claims in an area north of Telegraph Creek that occupies an important place in Tahltan oral histories, said Chad Norman Day, president of the Tahltan Central Government. (THE CANADIAN PRESS/HO)
B.C. Indigenous nation opposes mineral exploration in culturally sensitive area

There’s “no way” the Tahltan would ever support a mine there, says Chad Norman Day, president of its central government

Stz’uminus Elder George Harris, Ladysmith Mayor Aaron Stone, and Stz’uminus Chief Roxanne Harris opened the ceremony. (Cole Schisler photo)
Symbolic red dresses rehung along B.C. highway after vandals tore them down

Leaders from Stz’uminus First Nation and the Town of Ladysmith hung new dresses on Sat. April 17

A Western toadlet crosses the centre line of Elk View Road in Chilliwack on Aug. 26, 2010. A tunnel underneath the road has since been installed to help them migrate cross the road. Saturday, April 24 is Save the Frogs Day. (Jenna Hauck/ Progress File)
Unofficial holidays: Here’s what people are celebrating for the week of April 18 to 24

Save the Frogs Day, Love Your Thighs Day and Scream Day are all coming up this week

Local carpenter Tyler Bohn embarked on a quest to create the East Sooke Treehouse, after seeing people build similar structures on a Discovery Channel show. (East Sooke Treehouse Facebook photo)
PHOTOS: B.C. carpenter builds fort inspired by TV’s ‘Treehouse Masters’

The whimsical structure features a wooden walking path, a loft, kitchen – and is now listed on Airbnb

Most Read