Hold Your Nose and Sign: One Man's Opinion
By Ben Meisner
If the US and foreign demand for soft wood lumber continues to slump, we will get yet another look at just how important the lumber industry is in this region.
There are some politicians in the region who seem to think this city can survive (and indeed prosper) because it is a regional center and with that comes some sort of benefit that no matter how the areas around us are doing, we will be okay.
The lumber prices in BC are at a point where the companies will begin to lose money, major money.
Added to that is a growing feeling that we must sign the lumber agreement in order to protect our basic share of the US market . The US may be taking it to us, but with a slumping US housing market and weak international lumber prices there is little left in the jar.
The so called middle lumber industry, those smaller players in the industry, have quietly been saying this past week that perhaps the deal we have with the US (save a few changes) is what we should be settling for.
We are in a catch 22, tell the US to stuff the deal at which point regardless of whether we win in the courts there will be new barriers put in place, or take a deal which in the end may cost the industry as well.
As it stands, the moment they sign the deal the lumber industry will get a large pocket full of money in returned tariffs. The lure of the returned tariffs may be too great to ignore.
I’m Meisner and that is one man’s opinion.
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Posted by: trusted on August 8 2006 9:37 AM
Could be a whopper, as tax structure changes dramatically with increase of income.
Of course all posters will be aware of that fact.
Will they amortize backwards over the years-spreading the refunded monies. Not much for a good accountant to add on to income statement and adjust tax accordingly.
In any event one can be assured the taxes will add millions and millions to the governments coffers.
They will rejoice as it will wipe the slate clean-get all the companies off their backs to deal further with the U S, and the only ones left to bear the pain of this wonderful agreement will be the lumber producers in Canada- with B C leading the pack.
Imagine, the U S gets over a "BILLION" dollars they are not entitled to!
Nice guy, Emerson, certainly showed his teeth this round!
Anyone overly surprised?
I didn't think so.
Who gets to "bite the bullet?"