Steelworkers Seek Increased Levy On Export Of Raw Logs
By 250 News
Tuesday, March 08, 2011 11:26 AM
Burnaby – BC should substantially increase its levy on raw-log exports or risk
losing its wood-manufacturing sector, say United Steelworkers.
In a letter to provincial forest minister Pat Bell, the union representing BC woodworkers
urges him to immediately at least double the so-called fee in lieu on raw logs exported
from BC, currently 15 percent.
And Steelworkers also want Bell to urge the federal
government to similarly discourage raw-log exports from federally-regulated lands in BC.
“It’s time the province woke up,” says Steelworkers Wood Council chair Bob Matters. “Log
exports might be making short-term profits for a handful of companies that export logs.
But we risk destroying our domestic sawmills, pulp mills and other wood-manufacturing
operations.”
The reason is that while higher prices for logs shipped offshore mean higher profits for
exporters like TimberWest and Island Timberlands – big exporters based mainly on
federally-regulated private lands and who run no manufacturing operations – those same
higher prices are making it more difficult for BC mills to afford logs.
And while offshore buyers can afford to buy logs at a premium – the average exported log
fetches about 1 ½ times as much as the average domestically-sold log – BC mills must
buy their entire wood supply here.
So those higher export prices mean mills pay inflated
prices for all their timber or go without, Matters explains. A significantly higher fee in lieu
would raise the supply of sawlogs here, drive down the domestic price of wood and
encourage more manufacturing.
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