Log truck on Highway 16. (Black Press media)

Log truck on Highway 16. (Black Press media)

B.C. to begin increasing coastal log export charges

New fees based on harvest cost, cedar no longer exempt

The B.C. government’s new coastal log export policy starts to take effect at the end of July, imposing a new fee structure for logs intended to keep more of them in the province for milling.

The new fees are to be calculated on a case-by-case basis, depending on the harvest cost and value of the timber in each cutblock, Forests Minister Doug Donaldson said Wednesday. The system applies first to new B.C. Timber Sales harvests on the coast, expanding to other coastal timber harvesting in December 2019.

Donaldson said the overall target is to reduce B.C. log exports by 15 per cent over the next two years.

“For whitewood species like hemlock, balsam and spruce, the fee could go from 10 per cent of the Vancouver log market value, which it is now, to a maximum of 50 per cent,” Donaldson said in an interview with Black Press. “That’s an example, but it really depends on the composition of the cutblock.”

Cabinet orders that expire July 31 set the fee in lieu of manufacturing at $1 per cubic metre for the North Coast, Northwest Interior and Nass areas and similar levels for Haida Gwaii and Mid Coast where timber is approved for export under the domestic log surplus test.

“It’s incumbent on us to try to drive more logs to domestic manufacturing,” Donaldson said. “The fee in lieu is a tool to do that, because it tries to address the price difference between what domestic logs are getting on the market and export logs.”

RELATED: B.C. loggers brace for changes in log export policy

RELATED: Export laws threaten Northwest industry, loggers say

The changes remove an export exemption for western red cedar, a sought-after commodity that commands high prices in Japan and other overseas markets. 

Under the new system, cedar logs could only be exported for a cultural use, such as a totem pole or a Japanese or Korean temple.

The current cabinet orders provide blanket log export exemptions put in place earlier to allow logging to carry on in areas where there are no sawmills to ship to. The exemptions are 35 per cent of tenure for the Mid Coast and Haida Gwaii, 20 per cent for North Coast and Northwest Interior and 100 per cent for the Nass timber supply area.

Donaldson said he had reports that some producers were offering logs for sale via the domestic log surplus test, and if they didn’t get the price they wanted, they would then use the exemption to export them. The new system won’t allow that, he said.

The new system is expected to help operations such as Skeena Sawmills in Terrace get enough log supply to operate at full output.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

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

Just Posted

A BC Hydro outage is affecting nearly 4000 customers in Kitimat. The cause of the outage is under investigation. (Screenshot/BC Hydro Outage Map)
Cable fault responsible for Kitimat power outage, BC Hydro says

At its peak, the BC Hydro power outage affected near 4,000 customers

Graph showing the 2020 passenger totals at the Northwest Regional Airport in Terrace. (Submitted/Northwest Regional Airport)
New year brings an end to a turbulent 2020 at Northwest Regional Airport

Passenger totals half of what they were in 2019

Wireless voice and data services are out for those on Telus as of Thursday (Jan. 14) afternoon across Western Canada, Telus Support said in a recent Tweet. (Black Press file photo)
UPDATE: Telus services restored across Western Canada

Telus said they are monitoring the situation to ensure connections remain stable

The leisure pool at the Sam Lindsay Aquatic Centre will be open Thursday and closed Friday for maintenance, the DoK said in an updated Facebook post Thursday (Jan. 14). (Kitimat Leisure Services photo)
UPDATE: Leisure pool at Sam Lindsay Aquatic Centre open Thursday, closed Friday

The leisure pool will be closed Friday (Jan. 15) for maintenance due to a mechanical issue

Keith the curious kitten is seen on Nov. 4, 2020 at the Chilliwack SPCA. Friday, Jan. 22, 2021 is Answer Your Cat’s Questions Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Jan. 17 to 23

Answer Your Cat’s Questions Day, Pie Day and International Sweatpants Day are all coming up this week

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Standardized foundation skills assessment tests in B.C. schools will be going ahead later than usual, from Feb. 16 to March 12 for students in Grades 4 and 7. (Black Press Media file photo)
B.C. teachers say COVID-affected school year perfect time to end standardized tests

Foundational skills testing of Grade 4 and 7 students planned for February ad March

Sooke’s Jim Bottomley is among a handful of futurists based in Canada. “I want to help people understand the future of humanity.” (Aaron Guillen - Sooke News Mirror)
No crystal ball: B.C. man reveals how he makes his living predicting the future

63-year-old has worked analytical magic for politicians, car brands, and cosmetic companies

Terry David Mulligan. (Submitted photo)
Podcast: Interview with longtime actor/broadcaster and B.C. resident Terry David Mulligan

Podcast: Talk includes TDM’s RCMP career, radio, TV, wine, Janis Joplin and much more

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virtually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

Most Read