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Timber change in works: Bell
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By Gordon Hoekstra
Prince George Citizen
Prince George North Liberal MLA Pat bell said Thursday his government is already considering secondary manufacturer John Brink's proposal that low grade lumber must be remanufacturer in the region it originates.
Bell was more cautious around Brink’s other major proposal: It’s time for the province to consider putting all timber cutting rights up for auction.
Both proposals were meant to counter the impacts of increased corporate concentration, which Brink argued has tipped the balance against community interests and opportunities for any kind of secondary manufacturing sector.
Brink, who heads up Brink Forest Products, warned in an interview with The Citizen this week if fundamental changes are not made in how the province allocates timber, northern BC is doomed to increasing job losses and fewer benefits from publicly-owned forests.
Brink also said the BC forests ministry should insist that 20 per cent of the lumber produced in BC – the amount he contends each sawmill produces in low grade – be remanufactured in the region it comes from. That alone could create thousands of jobs in northern BC, said Brink, who is the BC Liberal riding president for Prince George North. Now, most low-grade lumber is shipped to the US, he said.
Bell said he’s already had extensive discussions with Brink over the last four months about low-grade lumber being remanufactured in its region of origin. He said he’s taken the idea to both BC Forests Minister Mike de Jong and junior forest minister Roger Harris.
“It is being looked at very closely as an opportunity,” said Bell. “ I think John (Brink) has hit upon something that makes a great deal of sense. I have also talked to the primary manufacturers, and I have yet to find one that sees that as being challenging for them.”
Bell said his discussions with primary manufacturers included Canfor.
Data compiled by The Citizen, and published in a special report last month, showed that just two companies – Canfor and West Fraser – hold almost 70 percent of the long-term logging rights in the Northern Interior following a year of rapid mergers. The two companies also hold nearly 70 percent of the timber-processing capacity north of 100 Mile House.
Bell said the public should have faith in the federal Competition Bureau’s review of the mergers, which resulted in Canfor and West Fraser having to sell off sawmills because of competition concerns.
“Consolidation (of forest companies) is always a bit scary in what can happen, but I don’t think it has impacted the collective here perhaps as much as John (Brink) has suggested,” said Bell.
The Prince George North MLA also said an important component of the mergers is solidified ownership of the forest companies in BC.
BC-based Canfor’s takeover of Slocan makes it less susceptible to takeover of an American company, said Bell, while West Fraser bought out Weldwood, which was owned by US giant International Paper.
Bell also argued the primary sawmilling sector is healthy, and has increased its workforce. He pointed to independent sawmills like carrier Lumber, Dunkley Lumber and The Pas Lumber, all of which he said have increased production and employment. The Pas Lumber alone, located at the CN industrial site in Prince George, has double its production and hired 100 new staff, said Bell, The Pas Lumber’s expansion is something the company has not publicized.
Bell said he believes the companies have increased their capacity, in part, because the BC Liberal government clawed back 20 percent of major forest companies’ timber cutting rights in an effort to put more timber on the open market. The move was part of the Liberal’s sweeping forest policy reforms introduced in 2002, which Brink had argued are not working properly.
Bell noted the Liberals are the first BC government to claw back timber cutting rights. “My point is that it’s a first good step,” said Bell. “Does it get enough? I’m not sure.”
Bell acknowledged secondary manufacturing is not developing. He said that’s why junior forest minister Roger Harris has been assigned the task to examine how to create opportunities for the value-added sector.
The Liberals are hoping the increase in timber available because of the mountain pine beetle epidemic will allow them to tailor timber bids that will attract value-added players.
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