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Bell Says B.C. Honours Softwood Agreement Despite U.S. Complaint

By 250 News

Tuesday, January 18, 2011 02:16 PM

Prince George, B.C.-  The U.S. has filed for arbitration under the Softwood Lumber agreement over B.C.'s timber pricing policies.   The complaint is based on the large volumes of mountain pine beetle attacked timber that have been harvested.

B.C.'s Minister of Forests, Mines and Lands, Pat Bell,  says  he is  confident the arbitrators will rule in B.C.'s favour.  "British Columbia has always honoured and continues to honour its commitments under the softwood lumber agreement," said Bell. "I am confident the arbitrators will find the same."

The Ministry of forests Mines and Lands says the province's auction-based pricing system ensures the full value of timber -whether impacted by the unprecedented mountain pine beetle infestation or not - is captured by the government.

"Clearly the scale of the mountain pine beetle infestation is something we've never experienced before, and is the reason for an increased harvest of low-grade timber in British Columbia," said Bell. "I believe U.S. lumber producers would be better off if they continued to work with Canadian producers to grow the market for wood across North America, instead of putting their resources into costly, groundless litigation.  The irony behind the U.S.'s complaints is that since the Softwood Lumber Agreement came into force, U.S. lumber producers have actually increased their share of the U.S. market. In the meantime, British Columbia will  continue to develop the China market where we've seen exponential growth in recent years. Last year, for example, we almost doubled our lumber exports to China compared to 2009, which is helping to put people back to work in B.C. mills."

Under the terms of the Softwood Lumber Agreement, the arbitration will be conducted by the London Court of International Arbitration (LCIA). The U.S. and Canadian governments must each nominate an arbitrator within 30 days (by Feb. 17). The two arbitrators then must nominate a chair within 10 days. Following this, the LCIA must formally approve the arbitration panel made up of three arbitrators, including the chair. Overall the arbitration process could last for two or more years before a decision is made. Decisions by the LCIA are final and binding on both parties.

While the arbitration process is ongoing, there is no change in how B.C. lumber is shipped to the U.S. - the export tax continues to be collected at the border with revenues being directed to B.C.'s Consolidated Revenue Fund.

The current Softwood Lumber Agreement came into effect in October 2006 and is set to expire in October 2013, with an option to renew to October 2015.


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Comments

In the mid to late 1980's and Early 1990's many a forest industry lobbied the government to reduce the cost of logs in the pacific northwest (Smithers to Prince Rupert and Kitamat). The answer is obvious....there was no desire from the government to reduce the cost of logging in these areas. Pat Bell was a political player at the time and had a hand in the decission to not take action as the industry desperately needed at the time. Here we are many years later listening to him defending the reduced cost of logs delivered to the remaining sawmill industries under the pretense that these logs are worthless because they are bug killed trees, and yet Canffor has recorded over $60,000,000 in profits this last year all as a result of government subsidized log cost's and huge infusions of monies from governments into the Canfor mills. These monies are going into Canfor mills under the ruse that they are green energy improvments, which we all know is an out right lie.
The people from smithers to Prince Rupert are left with out any Sawmills to run becsuse the government would not look at the fiber supply as useless like they catigorized the the bug wood for the interior mills...the northwest fiber is consedered to be a mionimum of 70% pulp wood and should have been considered useless by the government but was not. The reason the gov did this is because the northwest is a major strong hold of the NDP as well it holds a very heavy native population. Talk about a two faced polititian or what.
Now he wants to fight the US again after the government sold Canada out by selling out Canadians in the soft wood lumber dispute several years ago, knowing full well that the interior mills are getting a major subsidy on reduced cost of logs and if he does fight it it's going to be good money thrown after bad and is also a battle that he will lose.
Pat Bell should crawl back into the hole he came out of and quit wrecking peoples lives.
Could have a major impact on our regions industry.

Windigo, in what capacity was Pat Bell involved in the decisions in the 80's and 90's?
Thank you!

Correction....Late 1990's to Early and mid 2000
I think he was elected in 2001