Stumpage Rates Yet to Be Set

Thursday, December 29, 2005 04:01 AM

The Province was supposed to have new stumpage rates set in mid December, but it now looks like the new rates won't be set till at least the end of January and won't come into effect until April.

"That puts forest companies in a very difficult position" say some industry experts. Companies are planning now for their summer harvesting, and budgets could be out of whack depending on the appraisals for specific blocks that are in those plans. They say an April impementation time for stumpage rates is too close to the start of the summer logging season to re-do appraisals and make any adjustments to budgets.

While it is clear the stumpage rates will be increased, the province is facing a delicate balancing act. Raise the rate too much, and there is little incentive for the companies to continue harvesting beetle kill wood, that would be disastrous for some smaller operators who are dealing with a supply of 100% beetle wood.

Discussions between the Province and the industry continue.
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Posted on Thursday, December 29, 2005 04:01 AM in News by 250 News

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Comments

Posted by: Gofaster on December 29 2005 9:23 AM

Liberals strike again.....

Posted by: YamaDooPolCat on December 29 2005 11:52 AM

Good strike too. It's about time the companies playing the stumpage bingo system were thrown a curve. Might have less accidents this winter after all.

Posted by: supertech on December 29 2005 6:34 PM

Yeah -- it's better they go on welfare than work right? Then they can spend the money in the liberals casino right? Liberals are socialist dictator bastards.

Posted by: YamaDooPolCat on December 30 2005 6:05 AM

Better check your plugs there Supertech. You are are all fouled up and blowing black smoke. Probably fueled up at the wrong pump? Get help.

Posted by: gypsy on December 30 2005 10:47 AM

April, you say???
No rate increase until April???
Then they just better dig in and make the time between now and spring break up pay, while the rates are lower.
Does not seem like much of a risk to me.
Maybe can make enough they won't have to worry about working that full summer???
Besides, I am certain that "beetle kill" is plaguing the government, and they want the max brought out of the bush during a logging season.
Hypothetical is hypothetical!!!
Look long enough and hard enough-and yep-you will be able to come up with something that could prove troublesome.
Soothsayers we are not.
Well, most people aren't???
Make any sense

Posted by: nazko 5 on December 30 2005 2:02 PM

i will not loss any sleep over the mills stumpage problems.