Awesome!

Well. This is good news. In addition to the construction and mill jobs that this rebuild will provide, it also solved a big problem for the City’s fancy Community Energy System. They will now be able to continue to pretend that the system is a viable operation.

Kudo’s to Lakeland management.

Great news for all Lakeland employees. I spent many years there and I’m so happy all the great people that work there will get there jobs back. Great day for everyone.

Great news ! This will offset some of the job loss created once the NDP get back in power !

Let’s see. Under the Libs, Rustads, NCP, Tackama Fort Nelson, Eurocan, just for starters of mills that closed.

Resident. You forgot Clear Lake, and The Pas Lumber, Pr George and Bear Lake.

I thought it was Canfor that closed Clear Lake and Rustads, mills with 70’s technology and with decreased timber supply there was no incentive to invest.

Same thing with NCP, hard to make plywood when the supply of peelers is dropping like a rock.

Sinclair closed the Pas for similar reasons.

The rest may shut down when the ndp get in.
To think that all them mills shut down because of the liberal gov. shows a big lack of businesse experience and knowledge.
Some of you in here really need to get out and get a job.

All those listed mills that closed down weeny closed by the government they were closed or not rebuilt be ause the mills were outdated and cost to upgrade them was not sound business investment yea the closures meant loss of jobs but not one mill was closed because of government all were closed by the companies who operated them.

“Let’s see. Under the Libs, Rustads, NCP, Tackama Fort Nelson, Eurocan, just for starters of mills that closed..”

Resident..If you want to blame any political party for this you better go south of the border because the Bush government did nothing to prevent the sub prime mortgage crisis.

Hats off to Lakeland!!!!

Resident, you aren’t actually blaming the BC Liberals for the economic slowdown in the US are you? Because that, for the most part is what decimated the BC lumber industry. Not to mention the dwindling supply of timber. Surely you wouldn’t make a partisan comment like that without some facts.

I blame the HST. (sorry Mattyc…I beat you to it).

Lakeland will likely order all the new equipment before the PST comes back in a week or so.
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If the NDP had allowed logging in Tweedsmeer park the beetle epidemic may have been nipped in the bud, a prescribed burn was also suggested but turned down by the NDP government of the day. They are the ones to blame for the shuttered mills because of their policies.

The companies mentioned might have made the needed improvements had there been a sufficient fiber basket. Canfor is making major investments in the Kootneys where there are logs available.

BCRacer, you’ve already posted this in the other story. You don’t need to spam it.

It shouldn’t make any difference whatsoever whether they order new equipment before the HST ends, or afterwards.

If they ordered while HST is still in place they’ll get whatever they pay in HST back as an Input Tax Credit.

After April 1st, they’ll get 5% GST back as an Input Tax Credit, but the 7% PST they’ll pay will be included in the Capital Costs of the new equipment, and they’ll recover that through Capital Cost Allowance (depreciation) over the expected life of the particular assets acquired.

A lot of sawmill machinery would be depreciated over 5 years, some over 10 years, and the buildings over 20 years. The point is, they’ll get ALL the money they paid in PST on their new equipment back. It takes longer, but it is all recovered.

How many will this new mill employ? 4 production workers and 8 supervisors?

Gratz on the rebuild but if it is going to be state of the art I would hope it would be a dustless mill. And I would be very concerned as an employee if it isn’t!

Capital cost allowance, sure you can claim the depreciation in full over a number of years, but it is still just applied against the net income and corporate taxes are next to nothing nowadays.

12% of 7% is not equal to 100% of 7%. Lakeland would be wise to pay for their equipment upfront before the PST kicks in. This is one case where the HST rules benefit the business investing in infrastructure where a sales tax is payable.