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

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.

BC legislature

Just Posted

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

Jesse Roper tackles weeds in his garden to kick off the 2021 season of What’s In My Garden Man? (YouTube/Whats In My Garden)
VIDEO: Metchosin singer-songwriter Jesse Roper invites gardeners into his plot

What’s In My Garden, Man? kicks off with the poop on compost

(Victoria Cool Aid Society/Facebook)
Victoria food drive aims to feed those also struggling with housing

Quadra Village furniture store hosting drive-thru event Saturday from 10 a.m. to 2 p.m.

A sketch of the multi-use path that will connect Lagoon Beach and Royal Beach in Colwood. (Sketch courtesy of the City of Colwood)
Concepts for Colwood beach connector coming to council June 21

Major infrastructure project includes gathering places, public amenities and pathways

Victoria police are asking for witnesses who might have information about this tricycle that was stolen in downtown Victoria on Thursday. (Photo courtesy of VicPD)
Police seek witnesses after downtown Victoria company’s tricycle stolen

The three-wheeler was taken from the 2100-block of Store Street on Thursday

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 charged, suspect at large in killings of B.C. brothers linked to gang activity: RCMP

Kamloops brothers Erick and Carlo Fryer were found deceased in May on a remote Okanagan road

Albert Health Minister Tyler Shandro and Alberta Premier Jason Kenney unveil an opening sign after speaking about the Open for Summer Plan and next steps in the COVID-19 vaccine rollout, in Edmonton, Friday, June 18, 2021. THE CANADIAN PRESS/Jason Franson
Alberta 1st province in Canada to lift all COVID-19 public health restrictions

70.2% of eligible citizens 12 and older in the province have received a dose of the vaccine

Fraser Health registered nurse Ramn Manan draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Honour our fathers’ with COVID-19 vaccine protection, B.C. urges

109 new cases Friday, 75 per cent of 12 and up immunized

Freighters have becomd abundant in the Trincomali Channel on the east side of Thetis Island.
Nanaimo ponders taking on waste from nearby anchored freighters

Vancouver-based Tymac petitioning the Regional District of Nanaimo to accept waste at its landfill

(Paul Henderson/ Chilliwack Progress)
Trutch Avenue in Chilliwack to be renamed to remove racist taint

New name to have Indigenous significance as Chilliwack takes new step toward reconciliation

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

Most Read