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Post Softwood Deal: Shepherd's Comments

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Thursday, January 11, 2007 09:48 AM

   Canfor CEO Jim Shepherd says he had hoped that the end of 2006 would also mean the end of talk about the softwood lumber agreement but he told the BC Natural Resource Forum he wanted to remind people that “History tells us we will be at this again.” He says we can learn from the experience.
Shepherd says the agreement is not perfect, however “400 lawyers worked 6 years to bring us a non answer”.  Shepherd says lawyers fail to recognize that although one side may be beating its chest because it won a court battle, at the end of the day, the other side could always just change the rules.  “I supported the softwood deal because I couldn’t see an end to the dispute.” According to Shepherd, there was a real danger that with Canada focused on court battles, other countries were making moves that could have shut the door on Canadian lumber trade opportunities. “I say lets just get on with it and move forward”.
The Canfor boss says it is clear the industry cannot manage the market, however, it can manage the volume. The deal leaves the forest industry with a border tax that ranges from zero to 15% and right now they are paying the 15%.  “I am not happy about that, I don’t think anyone is happy about that” says Shepherd.
The return of the 80% of the duties paid was good news for Canfor and Shepherd says it put his company in a very good position, although the dollars were returned a little faster than he had hoped.  “The money was sitting in   U.S. bank accounts collecting 7% interest, so it would have been nice to have waited a little longer.” Shepherd says international trade is all about relationships, “The United States is looking for friends, let’s be their best friend.”
He is not so confident on what to do about the beetle kill.  “I am no biologist, no forester, but I think the answers lie in research.”  He says things have changed so rapidly over the past year, it has become a real concern. “I understand it will mean a change in how when and where we harvest”  research has shown some trees lose value faster than others because of their position in dry or wet conditions, so  science may play a bigger part in decisions about licensing.
Shepherd was addressing the opening session of the two day BC Natural Resources forum underway at the Prince George Civic Centre.

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