Log truck on Highway 16. (Black Press media)

B.C. to begin increasing coastal log export charges

New fees based on harvest cost, cedar no longer exempt

The B.C. government’s new coastal log export policy starts to take effect at the end of July, imposing a new fee structure for logs intended to keep more of them in the province for milling.

The new fees are to be calculated on a case-by-case basis, depending on the harvest cost and value of the timber in each cutblock, Forests Minister Doug Donaldson said Wednesday. The system applies first to new B.C. Timber Sales harvests on the coast, expanding to other coastal timber harvesting in December 2019.

Donaldson said the overall target is to reduce B.C. log exports by 15 per cent over the next two years.

“For whitewood species like hemlock, balsam and spruce, the fee could go from 10 per cent of the Vancouver log market value, which it is now, to a maximum of 50 per cent,” Donaldson said in an interview with Black Press. “That’s an example, but it really depends on the composition of the cutblock.”

Cabinet orders that expire July 31 set the fee in lieu of manufacturing at $1 per cubic metre for the North Coast, Northwest Interior and Nass areas and similar levels for Haida Gwaii and Mid Coast where timber is approved for export under the domestic log surplus test.

“It’s incumbent on us to try to drive more logs to domestic manufacturing,” Donaldson said. “The fee in lieu is a tool to do that, because it tries to address the price difference between what domestic logs are getting on the market and export logs.”

RELATED: B.C. loggers brace for changes in log export policy

RELATED: Export laws threaten Northwest industry, loggers say

The changes remove an export exemption for western red cedar, a sought-after commodity that commands high prices in Japan and other overseas markets. 

Under the new system, cedar logs could only be exported for a cultural use, such as a totem pole or a Japanese or Korean temple.

The current cabinet orders provide blanket log export exemptions put in place earlier to allow logging to carry on in areas where there are no sawmills to ship to. The exemptions are 35 per cent of tenure for the Mid Coast and Haida Gwaii, 20 per cent for North Coast and Northwest Interior and 100 per cent for the Nass timber supply area.

Donaldson said he had reports that some producers were offering logs for sale via the domestic log surplus test, and if they didn’t get the price they wanted, they would then use the exemption to export them. The new system won’t allow that, he said.

The new system is expected to help operations such as Skeena Sawmills in Terrace get enough log supply to operate at full output.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Oyster Bay Microtel solidifies reputation as a Vancouver Island destination

The Microtel is focused on continuing to build their reputation over the summer

Charity the name of the game for Crofton slo-pitch tournament participants

Crofton Fire Department event benefits three recipients

LRCA Concerts in the Park series presents: Cheryl Bear

Bear is an accomplished singer songwriter, and has travelled to over 600 Indigenous communities

Ladysmith bodybuilder wins big at VI Showdown

VI Showdown is an annual event for fitness, figure, physique, bodybuilding, and bikini competition

Federation of Labour supports striking forestry workers

Calls for a “hot edict” on Western Forest Products

‘Bad choices make good stories’: Margaret Trudeau brings her show to Just for Laughs

Trudeau says over the decades she has been suicidal, manic, depressed

UPDATE: Youth seen with gun at Nanaimo mall, suspect now in custody

Woodgrove Centre shut down during police incident

B.C. man dies from rabies after contact with Vancouver Island bat

Last known case of human rabies in B.C. was 16 years ago

Crown recommends up to two-year jail term for former Bountiful leader

Crown says sentence range should be 18 months to two years for Bountiful child removal case

VIDEO: Wolf spotted swimming ashore on northern Vancouver Island

Island wolf population estimated at under 150 in 2008, says VI-Wilds

Diversity a Canadian strength, Trudeau says of Trump tweets at congresswomen

Trudeau avoided using Trump’s name when he was asked about the president’s Twitter comments

Garneau ‘disappointed’ in airlines’ move against new passenger bill of rights

New rules codified compensation for lost luggage, overbooked flights

Mercury tops out on top of the world: Alert in Nunavut warmer than Victoria

It’s the latest anomaly in what’s been a long, hot summer across the Arctic

Canadian is detained in China on drug allegations: Chinese government

Detention of a Canadian in China comes as part a diplomatic dispute triggered by arrest of Huawei exec Meng Wanzhou

Most Read