Raw Log Exports

Year
2012
Number
B33
Sponsor(s)
Creston

WHEREAS the Province of British Columbia has allowed a sharp and sustained rise in the volume of exported timber, which has distorted the domestic price structure for logs, eliminated British Columbia manufacturing jobs, undermined the structural integrity of the forest industry and severely hampered the creation of jobs and economic opportunities in the province; AND WHEREAS these policies have had a devastating impact on many local communities across the province that rely on the forest industry: THEREFORE BE IT RESOLVED that UBCM forward this resolution to the Province of British Columbia, indicating its objection to any measures that would increase the export of raw logs from British Columbia.

Provincial Response

Ministry of Forests, Lands Natural Resource Operations While it is true that the volume of timber exported from Coastal BC reached a record level in 2011, the Province has not recently changed timber export policy to encourage increased exportation. In many cases, the ability for companies to export timber under Provincial jurisdiction enables them to harvest in areas that would otherwise be uneconomic. Since they only export a small portion of what they harvest less than 10 of BC harvest was exported in 2011, the majority of the wood they access with the export premium is therefore a benefit to domestic manufacturing. The Province only allows for the export of timber that manufacturing facilities consider surplus to their needs. Manufacturing facilities have been able to maintain or increase production levels due to the increased harvest of timber brought about by timber export. The domestic log market prices have adjusted due to demand from domestic mills and their ability to pay relative to the prices they can get for products they produce. In 2009, the province hit a low point in timber harvest and manufacturing because of the worldwide economic recession. Since then, with a strong increase in demand for our products, especially from China, our industry has been recovering. No mill closures have occurred as a result of timber exports. To date, timber export volumes are down five percent from 2011 levels. However, the number of offers on wood advertised for export from domestic mills has dropped dramatically. In addition, a number of mills have been able to increase production levels over the past two years. The Province is currently engaged in a review of log export policy and will take measures as necessary to ensure that domestic mills continue to have access to wood advertised for export prior to exports being approved. Log exports are a sensitive issue and play an important role in our forest economy. This role is not always easy to understand. However, the key consideration of our log export policy is the vitality of our domestic manufacturing industry.

Convention Decision
Endorsed