An Editorial Opinion – Right From The Stump, December 18, 2024
As most may have heard by now, Premier Eby has announced an agreement in principle between the BC NDP and Greens. This comes as no surprise given the thin majority of the BC NDP.
Of key significance to the forest sector, the agreement commits “to undertake a review of BC forests with First Nations, workers, unions, business and community to address concerns about sustainability, jobs, environmental protection and the future of the industry.”
Such broad encompassing reviews typically take several months, if not over a year to complete and even longer before acting on recommendations. To propose such a review now is a prime example of just how forestry in British Columbia has truly become all about politics and not common sense. The two parties in their wisdom, have agreed to a review while the BC forest industry is literally in its death throes.
People, please we are in a CODE RED situation, not an Orange & Green love in when it comes to solutions and immediate action for the survival of BC forestry. President-elect Trump’s proposed 25% tariff on Canadian goods and the US softwood lumber duties of 14.4%, which are expected to double mid-next year will bring the BC forest sector to a stop.
A more appropriate timing of such a broad review would have been just after the Old Growth Strategic Review but prior to naively announcing the implementation of all its 14 recommendations and publishing the Modernizing Forest Policy In BC intentions paper. I am not alone in my opinion of this review. In a recent press release in response to the announcement, COFI says a review of forest policy should not be a priority right now.
One of the most painful aspects of this proposed review is that it implies more uncertainty as the outcome(s) of a review are awaited. If there is one thing the BC forest sector most definitely does not need is more uncertainty, in fact, it is the absolute worst idea at this moment in time.
But hey, that’s BC forestry politics.
The announced review comes in sharp contrast to remarks made by the newly appointed Minister of Forests, Ravi Parmar from November 28, “As a new Minister of Forests, you do not have a guy who wants to spend the next six months developing the next flashy vision roadmap framework, you name it. I want to get to work.” Guess the realities of politics may have bested our new Minister.
Putting aside my grumblings about this pending review, and in support of Minister Parmar’s “getting to work” attitude, the following ideas are suggested for the Minister to explore as solutions in anticipation of tough times ahead in 2025:
In immediate response to the proposed 25% US tariff, all participating businesses in the BC forest sector (contractors and manufacturers) should be given tax credits of at least 36% for the duration that the US tariff is in place, to align with the 36% tax credit Premier Eby just announced for the film industry to help that “struggling” industry .
Cutting permit approval times do need shortening, but to be clear, what is required most desperately is immediate action to address the length of time and simplifying of complex processes for developing permits in preparation for approval submission.
Put a halt to implementing new forest and environmental policy – increasing the regulatory burden unnecessarily adds to the industry’s cost structure.
Advance economic reconciliation efforts with First Nations.
Expedite forest landscape planning tables while keeping to the NDP platform commitment of 45 million m3 harvest target.
For the duration of the tariff and higher duties, look at opportunities for log exports. (explanation provided in following pages).
Conduct an independent full review of BCTS as committed to within the NDP platform.
Establish regional solutions teams for the coast, northwest, northeast, northern interior and southern interior to address barriers to fibre supply. This would be much better than investing in a broad political review.
Although too late for this party, increase market diversification efforts.
Develop an economic strategy for the forest sector to rebuild investor confidence.
I agree with Minister Parmar on getting to work because it is immediate action that is needed now. More mill closures are coming in the next six months
For more opinion and industry analysis, it’s all in the December 2024 View From The Stump newsletter.
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Written By David Elstone, RPF
Publisher, View From The Stump newsletter
Managing Director, Spar Tree Group Inc.