WHEREAS the stumpage system for timber incorporates a cost allowance to transport the timber to the least cost point of appraisal, which is the closest mill from where the timber is harvested; AND WHEREAS mergers within the forest industry have resulted in several companies owning multiple timber processing plants throughout different timber supply areas and many central interior communities have seen the indefinite closures of timber processing plants; AND WHEREAS it is much more efficient to transport finished forest products than round logs, both from an economic and greenhouse gas perspective; AND WHEREAS if the stumpage system provides an allowance for costs to transport timber to more distant mills, this will harm the chances of restarting local mills when the market improves, which will further erode communities that were created to ensure the forest industry thrived in the province: THEREFORE BE IT RESOLVED that the UBCM lobby the provincial government to provide assurances that the least cost point of appraisal will be maintained by the closest forestry processing plant, regardless of operational status, in order to encourage local processing and investment and ensure the security and long-term existence of small forest-dependent communities.
Ministry of Forests Range The current provisions in the Interior Appraisal Manual stipulate that the least cost Point of Appraisal is used unless 5 years have passed from the date the milling facility was permanently rendered incapable of producing lumber and chips and it was only the milling facility associated with that point of appraisal. At this time there is no plan to relax these long standing point of appraisal requirements. Any possible future changes to this policy would first be discussed with the interior forests industry, including a review and comment period, and with affected communities. The Minister would then carefully consider the comments and impacts, including community stability before making a decision.