Premier John Horgan takes questions at the B.C. legislature rose garden, July 30, 2018. (Black Press)

Premier John Horgan takes questions at the B.C. legislature rose garden, July 30, 2018. (Black Press)

Pulp mill struggles long-term, Premier John Horgan says

U.S. ‘assault’ on B.C.’s Catalyst Paper threatens workers, retirees

The B.C. government’s move to restructure Catalyst Paper’s pension obligations is only the start of a long-term restructuring of the forest industry, Premier John Horgan says.

The immediate threat is the imposition of anti-dumping duties totalling 22 per cent that took effect in April, which Horgan called “an assault on our industries” and unfair trade practices by the U.S.

“We’ve been meeting with Catalyst and the communities they operate in, Powell River, Crofton, North Cowichan and Port Alberni, since April when we held a conference here with local MLAs,” Horgan told reporters at the B.C. legislature Monday.

“But there are also underlying issues when it comes to pulp production in British Columbia, and the primary issue is access to fibre. As we’ve seen an increase in the export of raw logs, as we’ve seen a decline in the number of sawmills, which means there are fewer chips, there’s less feedstock for the pulp sector. That’s one of the fundamental issues that existed prior to the tariff question coming forward.”

RELATED: Unions protest Trump’s paper duties

Horgan said the regulation change made Friday to extend Catalyst’s time to pay off a pension funding shortfall is designed to prevent a scenario faced by Sears employees in B.C. “who went to the bottom of the line when it came to addressing receivership.”

Keeping pulp and paper mills from meeting a similar fate, as they struggle with the latest round of anti-dumping duties that protect U.S. mills from Canadian competition, is the immediate task. The latest duties target uncoated paper such as newsprint, and has raised protests from U.S. newspaper companies that it is pushing their costs higher.

B.C. trade officials expect that with the deteriorating trade relationship with the U.S. in recent months, tariffs on paper products could go even higher, up to 28.5 per cent, as early as August.

Catalyst moved in June to sell its U.S. mills to Nine Dragons Paper Ltd., a Hong Kong company. Catalyst indicated the sale eases the company’s debt position and allows it to focus on its B.C. operations, which employ 1,500 people.

BC legislatureCatalyst Paper

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

Just Posted

Ladysmith resident Bonnie Cook lost the use of most of her basement and her backyard after experiencing a major water leak. (Cole Schisler photo)
Drip by drip: water line leaks lead to big repair bills for Ladysmith homeowners

Nearly all reported leaks occur on old copper lines that have been bent or manipulated

An Ater-group Airon Slug identified during YES’s Bio-Blitz. (Yellow Point Ecological Society photo)
Yellow Point Ecological Society’s Bio-Blitz a big success

The Yellow Point Ecological Society held their first-ever Bio-Blitz over the weekend… Continue reading

Grade 12 LSS student Catherine Sampson, Grade 8 LSS student Cianna Vincent, and LSS Aboriginal Education teacher Brenda Kohlruss led the LSS ceremony honouring missing and murdered Indigenous women, girls and two-spirit people. (Cole Schisler photo)
Ladysmith Secondary ceremony honours missing and murdered Indigenous women and girls

A small ceremony was held in the LSS foyer on the National Day of Awareness for MMIWG

Peter and Wayne Richmond and 49th Parallel Grocery won the award for Business Achievement 20+ Employees at the Duncan Cowichan Chamber of Commerce’s 22nd Black Tie Awards on Tuesday, May 4, 2021. (Submitted)
Ladysmith businesses recognized at Black Tie Awards

Black Tie Awards are given annually by the Duncan Cowichan Chamber of Commerce

Ladysmith’s Town Council met on May 4 and set a 0.52 percent increase for 2021 property taxes. (Town of Ladysmith/YouTube)
Town of Ladysmith sets 0.52 percent tax increase for 2021

Mayor Aaron Stone praises the increase as among the ‘lowest in the province’

Protesters attempt to stop clear-cutting of old-growth trees in Fairy Creek near Port Renfrew. (Will O���Connell photo)
VIDEO: Workers, activists clash at site of Vancouver Island logging operation

Forest license holders asking for independent investigation into incident

Allayah Yoli Thomas had recently turned 12 years old when she died of a suspected drug overdose April 15. (Courtesy of Adriana Londono)
Suspected overdose death of Vancouver Island 12 year old speaks to lack of supports

Allayah Yoli Thomas was found dead by her friend the morning of April 15

More than 6,000 camping reservations in British Columbia were cancelled as a result of a provincial order limiting travel between health regions. (Unsplash)
1 in 4 camping reservations cancelled in B.C. amid COVID-19 travel restrictions

More than 6,000 BC Parks campsite reservations for between April 19 and May 25 have been revoked

B.C. average home price and sales level to 2023, showing steep drop in sales expected next year. (Central 1)
Forecast calls for B.C. home sales to ‘explode,’ then drop off

Average price to rise another 10% in 2021, credit unions say

Members of Vancouver Symphony Orchestra. (File photo)
B.C.-wide #DayOfMusic to feature 100-plus free virtual concerts May 15

‘Our colleagues across the province have figured out new ways to perform and connect,’ VSO boss says

Two passengers were recently fined thousands of dollars after they faked their pre-flight COVID-19 test results. (Paul Clarke/Black Press)
2 passengers in Canada fined thousands for faking pre-flight COVID-19 tests

The government issued a warning Thursday to others thinking of doing the same – do it and you’ll be ordered to pay

The Vancouver Island Regional Correctional Centre on Wilkinson Road in Saanich. (Black Press Media file photo)
Police watchdog investigating after man found unresponsive at Saanich jail

Man was in Victoria police custody the day before being found

(File)
With revenge porn on the rise in 2021, B.C. seeks feedback for new legislation

New legislation could help victims take down images and receive compensation

Port Alberni RCMP are investigating a homicide on Third Avenue. (SUSAN QUINN / Alberni Valley News)
RCMP investigating homicide in Port Alberni apartment

Investigators are still trying to determine the identity of the deceased

Most Read