John Rustad was recently in Burns Lake speaking with community members about current issues in B.C., including ICBC, rules around marijuana legalization and proportional representation.
But the most pressing issue he discussed was with regard to the forest products industry in B.C.
Although we all know at this point that the forest industry is facing several challenges, it was disheartening to hear that he wasn’t feeling optimistic about the near future.
It really is incredible to see how many issues this industry is facing - particularly in northern B.C. These challenges include the softwood lumber agreement, annual allowable cut reductions, spruce beetle and duties imposed by the U.S.
But despite all these challenges, for the most part the Canadian industry has remained fairly stable, largely due to lumber prices remaining high. Rustad believes that if the Canadian government is able to get tariffs down to 15 per cent, the industry could remain stable for a while longer (but that didn’t sound very reassuring).
Although provincial and federal government leaders assure us that they will keep fighting for a fair deal with the U.S., we haven’t seen any results yet. That’s why I thought it was significant to hear an elected official saying that he didn’t feel optimistic that a meaningful deal - that would work for both sides of the border - could be reached any time soon.
Meanwhile B.C. sawmills are rushing to diversify their markets, hoping that lumber prices will remain high, which would buy them time.
Babine Forest Products has been working to expand and diversify markets for its products. Steve Zika, Chief Executive Officer of Hampton Affiliates – company that owns Babine Forest Products and Decker Lake Forest Products – travelled to Asia last November with a B.C. delegation of over 30 senior executives from B.C. forest companies and associations, visiting Japan and China.
As we’ve been reporting on Lakes District News, due to the impending annual allowable cut reductions, after 2020 the Burns Lake Community Forest and the Chinook Community Forest will represent only a portion of the log supply required to keep Babine Forest Products and Decker Lake Forest Products operating.
A sense of urgency is needed not only for our sawmills and government leaders dealing with these issues, but also for the rest of us who care deeply about our communities and want to see them thrive.
As I’ve said in previous editorials, I believe the work being done by Burns Lake’s economic diversification committee is extremely important. I hope great solutions will come out of it.
It most likely won’t be just one solution, but a series of ideas. Or maybe it will be one great idea that will have a ripple effect, inspiring others to come up with their own solutions. What we can’t do is settle down.