Pellet plant recently completed at Terrace’s only sawmill uses waste wood to create a new revenue stream. (Skeena Sawmills)

B.C. VIEWS: Sawmill struggles as NDP boosts northwest log exports

Skeena Sawmills comeback threatened by B.C. government

If there’s a bright spot in the struggling B.C. forest industry, it’s Skeena Sawmills.

Since new investors took over the 59-year-old operation from West Fraser in 2011, they have poured millions into restarting and upgrading Terrace’s only sawmill, fixing old buildings and retooling to handle smaller second-growth timber from the economically marginal forest stands that are left in the region.

They’ve invested more millions into building a pellet plant for biofuel exports. They’re working with the industry-federal agency FPInnovations to use log scanning technology that helps mills detect flaws inside logs to get a viable lumber product out of otherwise uneconomic timber.

They’ve endured shutdowns due to log shortages, high costs and union demands. And now they face a new threat – drastically increased log exports in the North Coast region that siphon off even more of the scarce high-grade timber.

That’s right, despite Premier John Horgan’s endless rant against exporting “raw logs” and jobs, despite mill shutdowns across the province due to jacked-up stumpage taxes on the coast and falling timber supply in the Interior, the export limit has been doubled in the Northwest Interior region around Kitimat, Terrace, Smithers and Hazelton. Similar cabinet orders increase export limits for the vast North Coast, Cassiar and Haida Gwaii regions, apparently so Indigenous communities in the region can make money shipping the best “raw logs” overseas.

RELATED: Skeena Sawmills spends millions to modernize

RELATED: Syrian refugees find work at Terrace sawmill

Skeena Sawmills president Roger Keery sent a blistering letter to Horgan and Forests Minister Doug Donaldson in late July. He calculated that more than half of the Northwest’s actual log harvest was exported before the NDP government raised the limit from 20 per cent to 40 per cent.

“The largest tenure holder in the area is B.C. Timber Sales [a provincial agency], and with this increase in exportable volumes, the government will in effect be the largest log exporter,” Keery wrote. “We are shocked and disappointed by the changes to the [cabinet orders allowing exports], particularly given the many assurances we received during the review process that government was committed to supporting domestic manufacturing and investment.”

In response to my questions about the letter, the ministry issued a statement that quibbled with its numbers, noting the new quotas exclude export of cedar and cypress, which are now banned from export as logs.

(Full letter, ministry response below)

“We have committed verbally and in writing to Skeena that we are monitoring the impact of the [cabinet orders] and if the objectives government outlined are not being achieved, we will revisit the policies,” the ministry stated.

The statement makes no reference to why log export limits have been increased. Ellis Ross, former chief of the Haisla Nation and now B.C. Liberal MLA for Skeena, offered his take.

“What surprises me is after years of complaining and campaigning, the NDP quietly increased log exports in the Northwest,” Ross told me. “I know First Nations depend on log exports for revenues, but the problem is that our local sawmill employs First Nations as well. In choosing to increase log exports, our local sawmill is put in an even more difficult position.”

Horgan has repeatedly stepped in to assist Donaldson with the difficulties of the forests ministry. The much-criticized forest fire recovery programs have been transferred to the public safety ministry. Former B.C. Liberal MLA Blair Lekstrom was hired to extract the province from a secret deal to set aside vast new areas for caribou protection. Delta North MLA Ravi Kahlon was appointed as parliamentary secretary for forests.

Now this.

Skeena Sawmills.donaldson.j… by Tom Fletcher on Scribd

Forests Ministry Response A… by Tom Fletcher on Scribd

Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Catholic church buys $7.5M equestrian facility in Abbotsford, plans ‘agri-retreat’ centre

Church hopes to grow crops, host students and others on Bradner property

VIDEO: Organization’s stolen wheelchair van recovered on backroad near Hope

Wheelchair accessible van is only transportation for some people in Hope and Fraser Canyon

Kennedy, Cartier Roads could see upgrade in Kent’s next budget

Residents living and working on Kennedy Road wrote to complain about the dust from the gravel

Police ask public’s help locating missing Hope woman

Penelope Leslie Lackey has not contacted her family since mid-June

Get a free sneak peek at modern ballet performance in Chilliwack

New ballet @giselle is putting the final touches on its show at the Chilliwack Cultural Centre

VIDEO: Facebook rolls out tool to block off-Facebook data gathering

CEO Mark Zuckerberg announced the “clear history” feature more than a year ago

New regulations require training for B.C. drug recovery homes

Inspections, standards replace ‘wild west,’ Minister Judy Darcy says

Pembina buying Kinder Morgan Canada and U.S. portion of Cochin pipeline

The deal also includes an Edmonton storage and terminal business and Vancouver Wharves

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

66% of B.C. residents want opt-out system for organ donation: poll

Support was lowest in Ontario and the Atlantic provinces

Teacher disciplined after bringing 45 grams of cannabis to Surrey school

Eugenio Bahamonde was also charged with trafficking in Vancouver, but later acquitted

B.C. rainbow crosswalk covered in mysterious black substance

Black substance spilled intentionally near Vancouver Island school and difficult to remove

New anti-drone tech deployed at Abbotsford Airshow

Operators could locate drones from up to 23 kilometres away

RCMP originally planned to arrest Meng Wanzhou on plane, defence lawyers say

The allegations have not been proven in court. Meng was arrested Dec. 1 at Vancouver airport at the behest of the U.S.

Most Read