Logging contractors should be protected, Macdonald says

By CAROLYN GRANT

Kimberley Daily Bulletin

February 23, 2009

Columbia River – Revelstoke MLA Norm Macdonald is accusing the Forest Minister of being a spectator to an increasing crisis in the industry.

And it’s not only mills closing and mill workers losing their jobs that should concern him, it’s also the plight of logging contractors.

“The federal government has put some money towards mill workers, the provincial government has not,” Macdonald said.  “But contractors have no access to even the federal programs.  As this crisis continues, the contractors will not be as busy, but they still have payments to make.  “Instead of taking real action to assist forestry contractors, and helping to protect the economies of rural communities, this government is doing nothing.”

The concern, aside from contracting companies falling into bankruptcy, says Macdonald, is that the forest industry is cyclical, but when it cycles back up this time the contractor community could be gone.

“If you don’t preserve these businesses, in a year or so when things turn around, there will be no capacity in milling or harvesting.

“As with the mill closures themselves, it’s spreading from the coast inland.  There are third generation businesses going out of business.  It makes n sense at all to allow these businesses to collapse.”

Part of a solution, he says, would be to ensure that contractors are high on the list of those to be paid when a larger mill goes down.

“We don’t want to see another situation like occurred with Pope and Talbot, where contractors were owed millions for logs sitting in the mill yards yet bankers were the first ones paid out.

“The contractors’ logs were in the mill yards and they weren’t paid.  You’d think making sure that doesn’t happen again would be pretty obvious.”

The NDP has put forward five steps that could stabilize the contractor sector of the logging industry, Macdonald says.

1. Immediately undertake reform of the tenure system.

            Reform would open up log markets in all regions of the province so more manufacturers can access logs and put the logging contractors back to work

2. Immediately make changes to the stumpage and appraisal systems

            Changes would allow access to more of our forest resources and waste materials so a more diverse forest economy could be created giving more opportunities for a broader range of companies

3. Work with logging associations to find ways to provide credit assistance

            Access to credit assistance for logging contractors could prevent struggling businesses form being forced into bankruptcy and allow them to recapitalize their businesses to be more innovative and function within a new forest economy

4. Immediately introduce legislation to protect contractor’s rights

            Legislation to protect contractor’s rights to payment by companies who declare bankruptcy and to ensure their logging rights are maintained during tenure transfer will help existing contractors weather this crisis in forestry

5. Cancel all future increases to the Liberal fuel tax

            The current cost of the fuel tax is considered to be prohibitive by contractors and future increases in this tax will put further undue cost pressures on an already struggling industry