Wednesday, October 31, 2007

Mills may close, but raw logs will still ship from the North coast


While forest industry workers wonder about the state of their profession along the BC coast, the logging industry is looking revitalize itself with an increase in the number of raw logs to be shipped out of the country.

The recently revised Coastal Forest Action Plan laid out the plan by the province on Monday by to include the Queen Charlotte Islands in the coastal area category, under which logging companies are allowed to export up to 35 per cent of raw logs.

The export of raw logs has long been controversial in the province, with many seeing industry jobs going away with each log that is destined outside of the country. And it does appear that the province's resources aren't being utilized to their fullest potential, with a declining ability to produce value added products, milled in BC.

Instead, the appearance of the huge log carrying ships in B. C. harbours is quickly becoming symbolic of an industry that is quick to export the raw material, while the province's labour force wonders if there is any room left for it on the job site anymore.

The Daily News featured the latest developments in the forests as the front page story in Wednesday's Daily News.

MORE RAW LOGS ABOUT TO LEAVE THESE SHORES UNDER NEW PLAN
By Leanne Ritchie
The Daily News
Wednesday, October 31, 2007

Pages one and three

A new plan aimed at revitalizing the Coastal Forest sector has expanded the number of raw logs that can be exported from the North Coast.

Under the new Coastal Forest Action Plan announced on Monday by the province, the Queen Charlotte Islands will now be included in the coastal area under which logging companies are allowed to export up to 35 per cent of raw logs.

Around the year 2000, government passed an order in council to allow up to 35 per cent of logs to be exported from the Northwest and the mid-coast timber supply areas to support local employment because logging costs are high and there are few manufacturing facilities.

"Shifting to more second-growth harvesting provides stability and sustainability, and improving log export policies will help keep logs in British Columbia, supporting local communities," said Rich Coleman, Minister of Forests, about the new plan.

In the southern areas of the province, before logs can be exported, they must be offered up for sale to domestic buyers and if there are no domestic buyers, then they can be exported with a fee.

The province is also lowering the export fees on the North Coast for raw logs. Fees currently range from five to 15 per cent but are being dropped to five per cent across the board.
The expansion of raw log exports comes on the heels of the news that one of the last remaining processors in the region is closing its doors.

West Fraser announced last week the shutdown of its Skeena sawmill in Terrace.
The company is uncertain as to the length of the shutdown and any start-up of the facility will be determined by market conditions.

"The current market conditions just do not justify the operations of this mill," said Hank Ketcham, the company's president and CEO.

And they don't expect things to improve in 2008 due to a build-up of timber and the slow-down of the U.S. housing market.

In recent years, the Northwest has seen the demise of Skeena Cellulose, both at the pulp mill in Prince Rupert and the sawmill in Terrace, as well as West Fraser's North Coast Timber speciality sawmill in Prince Rupert.

Collectively, these operations directly employed about 700 in Prince Rupert alone.

The remaining significant operation is the West Fraser pulp mill in Kitimat.

Other elements of the Coastal Forest Action Plan include enhancing the shift to second-growth harvest; encouraging the harvest of hardwoods like alder, birch, cottonwood and maple; using science and technology to develop markets for hemlock and balsam; and promoting the value-added sector.

"There is no quick fix for the challenges facing the coastal forest sector, but I believe the actions outlined in this plan will help us regain our competitive edge," said Rick Jeffery, president and CEO of the Coast Forest Products Association. "The plan was formed through a collaborative process with key stakeholders, and I'm particularly excited about the research and development into maximizing returns from hemlock."

The coastal forest industry directly employs 12,000 workers and generates $250 million in revenue to provincial and local governments.

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