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Ft. Nelson Waiting for Word From Canfor

By 250 News

Monday, February 18, 2008 04:25 AM

    

Fort Nelson, B.C. - There will be a lot of workers sitting on the edge of their seats this week, waiting to hear if Canfor will  accept the efforts being made to save the Tackama Plywood plant in Ft Nelson from indefinite closure.

Yesterday,  hundreds of members of the  northeastern B.C. community gathered at the  high schoool gym to get details  from the Provincial Ministry of Forest and Range on  their  proposal.

They asked for several things,  which, when combined  would trim millions from the operating costs of the  plywood plant which  employs 300 people.

Minister Coleman  made it clear, he is  sending out the message today that the point of appraisal  for  logs  will be Ft St. John,  That move alone will trim $1.5 million dollars. 

The workers are in agreement and  are in line to have their wages cut by 10%, a move that will cut  another $2 million.  Other measures, such as  changes to the BCTS  will also  save dollars.

It is now up to Canfor to make the final decision.   The efforts won't save the Polarboard OSB Plant, but  Coleman says the fortunes  of that plant could turn at any time. "If for instance there is a strong hurricane season, the demand for OSB will go up,  and that plant  could be finacially viable" 

The  threat of  job  losses for 22% of Ft. Nelson's  working population is already   having an impact on  real estate.

Ft. Nelson realtor, Bill Craddock, who owns and operates Fort Nelson Realty says the announcement Canfor would close its OSB and plywood plant in Ft Nelson had an immediate impact on the price of homes in that region. “The asking price dropped by about 15%” says Craddock “but there have been no sales, so prices haven’t been established.” He says it could be another 15 to 30% drop in asking price if the mills close indefinitely as is the plan.

“The gas and oil industry in the region has also slowed down” says Craddock. Fort Nelson is not alone when it comes to a down turn in the petroleum industry as drilling is down in other regions such as Ft St John and Dawson Creek.

The economic difficulties in Ft Nelson are also having an impact on that town’s plans to rebuild it’s curling and skating rink. The facility collapsed in April of 2007. Mayor Chris Morey says the town will go for plan B “Given the economic climate we can’t go ahead with a new facility and we are requesting the insurance company go ahead and rebuild the facility. They originally offered us $2.8 million dollars.”

It is hoped the town will hear word soon on the fate of the Tackama plywood plant. Loggers  were ready to head back to the bush as early as this morning if  the Canfor CEO  should say the  plant  has been  spared from  shut down.


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Comments

I never did understand why they would put a plywood plant way up there. No rail access, long way to truck the product.
metalman.
That's very true metalman, and it is exactly the reason they no longer have to mill it where they cut it.
If it gets too expensive to process,shut it down and haul the woood somewhere else!
And another community dies.
But there is rail access in Fort Nelson. Now provided by CN.
Yes there is lunarbase, and they are one of the lucky communities.
Hopefully,that will make a difference for them, but I don't really believe that.
I am generalizing I guess,because it will still come down to where the forest companies can get the most bang for their buck.
If they have to haul the wood away to do that,they sure as hell will,and the government will let them.
That's what we all need to be aware of here in smaller communities in the north.
The issues are numerous and complex. Canfor wants to haul logs out to central mills, but that should be resisted in every community. Seems that the real villain is governments (local included) allowing all the small sawmills to be put out of business. A community that is served by one large multi-national gas station is not well served. Well neither is the community that is served by one large mega corp that can extract near starvation wages and tax breaks through extortion.

What this community needs is a government (local included) that celebrate the smaller loggers and mills that served us well in the 80's. Companies like Carrier and Omineca whose licenses were illegally cancelled so that large multi nationals could move into their place are now the same companies that can save our collective asses.

We have a city council that is too eager to throw their support behind those whose put us into this position.

If Canfor was really hurting and had no prospects, why would millionaire Jimmy Pattison increase his personal holdings in the company? We need common sense, not blackmail.
Well said towerview!
One more item...... if the BC government 'assists' Canfor by 'subsidizing' the trucking of logs to get 'graded' at another location, then the US certainly can make a claim against NAFTA. Hasn't this government learned anything from 8 years of answering to US charges of BC or Canada subsidizing the forestry industry? Seems to me that large corporations want monopolies in order to hide the fact that smaller community based companies operate more efficiently, bring ecological benefits to a woodlot, create more jobs within a community, use a log more efficiently, and create economic stability during slower times.

Canfor thinks that one meter of log in the hands of an independent mill is one meter too many. That's because the smaller mill would set a higher standard of efficiency, profit and economic spin-offs in the community, that Canfor doesn't want you to know.

The present BC Liberal government has made a sham of forestry and now has to pay the price. Wait until the US understands the details of the subsidies and then watch the Forestry policy unravel. If we really want communities to thrive, let's insist on the smaller producers, mills and loggers being able to get the licenses that this government has only made available to corporations whose best interests have not always been the forest...or the community.
One more item...... if the BC government 'assists' Canfor by 'subsidizing' the trucking of logs to get 'graded' at another location, then the US certainly can make a claim against NAFTA. Hasn't this government learned anything from 8 years of answering to US charges of BC or Canada subsidizing the forestry industry? Seems to me that large corporations want monopolies in order to hide the fact that smaller community based companies operate more efficiently, bring ecological benefits to a woodlot, create more jobs within a community, use a log more efficiently, and create economic stability during slower times.

Canfor thinks that one meter of log in the hands of an independent mill is one meter too many. That's because the smaller mill would set a higher standard of efficiency, profit and economic spin-offs in the community, that Canfor doesn't want you to know.

The present BC Liberal government has made a sham of forestry and now has to pay the price. Wait until the US understands the details of the subsidies and then watch the Forestry policy unravel. If we really want communities to thrive, let's insist on the smaller producers, mills and loggers being able to get the licenses that this government has only made available to corporations whose best interests have not always been the forest...or the community.
I stand corrected, I did not realize that the steel rails went that far North. I guess one should check their facts first.
Good point about milling it where it is cut, I have 'railed' for years about raw log exports, thanks for educating me guys.
metalman.
Just one issue with your post towerview.
The B.C. government HAS made a sham of the forest industry,and they have been working very hard at that for many years!
And a good example of the ongoing stupidity is Rich Coleman himself.
What could he possibly know to qualify him for that job?
Thats right...nothing.
Unfortunately,it is the people who work(or use to work)in the various divisions of forestry who will now pay the price.
The politicians who made the mess will still collect their fat salaries and pensions!
It would be nice if we could all remember that at election time,but we probably won't.