B.C. Timber Markets Face Uncertain Future

SEATTLE (Scrap Monster): The timber markets in the province of British Columbia (B.C) are seen staring at uncertain future, following the government’s announcement to set aside 6.4 million acres of forest from harvest, in a bid to protect old-growth stands. These deferred areas will be in place until the time when the government reaches an agreement with First Nations on a comprehensive old-growth timber management plan.

Accordingly, the offering of stumpage through BC Timber Sales program will be ceased with immediate effect in the deferral areas. Also, current forest tenure holders in deferral area overlays will not be allowed to harvest.

The government officials stated that the deferral could lead to job losses of around 4,500, while the BC Council of Forest Industries (COFI) estimates the total job losses at around 18,000, including direct and indirect jobs. Furthermore COFI warned that the policy could result in closure of 14-20 sawmills and two Coastal pulp mills.

The representatives of the forestry industry alleged that the deferral plan did not lend ear to industry input and that the panel which formulated the plan was comprised only of environmental group representatives.

Meantime, the First Nations communities are given 30-days period to respond to the deferral plan.

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