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Mill closures in northern B.C. blamed on low timber supply, excessive rules

Government acknowledges need for more supply, blames closures on corporate decisions, markets
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As job losses mount in B.C.鈥檚 forestry sector, a leading industry group is calling on the province to increase timber supply and speed up permitting.

On Thursday (May 9), Canfor announced it was halting plans to replace a decommissioned sawmill in Houston, permanently closing a sawmill in Bear Lake near Prince George, and indefinitely curtailing a production line at its Northwood Pulp Mill in Prince George.

Linda Coady, president and chief executive officer of the B.C. Council of Forest Industries, said Friday (May 10) that escalating closures and curtailments mean government 鈥渘eeds to move faster to stabilize timber supply鈥.

Coady鈥檚 statement echoes comments from Kevin Edgson, Canfor鈥檚 President and CEO.

鈥淲hile the region has a substantive supply of sustainably grown timber, harvest levels are well below the Allowable Annual Cut partly due to natural disturbances, but increasingly because of the impact of a range of policy choices and regulatory complexity,鈥 Edgson said Thursday day. 鈥淒espite exhaustive efforts, including expanding well beyond our traditional operating region, there is simply not enough residual fibre to supply the current production capacity of all our operations.鈥

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Forests Minister Bruce Ralston said Thursday that Canfor鈥檚 actions disappointed his government, noting families and communities in northern British Columbia will feel the impact.

鈥淲orkers shouldn鈥檛 bear the brunt of commodity cycles, as they have been forced to for years,鈥 he said. He added government will support communities and work with partners to increase supply.

Recent provincial measures include economic support funds, and the appointment of Andrew Mercier as Minister of State for Sustainable Forestry Innovation with a focus on the timber supply.

Friday, Mercier pushed back against claims that Canfor鈥檚 decision was about supply.

鈥淒eeply frustrated with the decision from Canfor鈥檚 board to close (Bear Creek Sawmill) & (a production line in Prince George) putting their people out of work,鈥 he wrote on X, formerly known as Twitter. 鈥淭his is a decision based on market prices that impacts a lot of people. Heart goes out to all the workers and their families.鈥

Parts of the political opposition did not buy Mercier鈥檚 argument.

B.C. United Leader Kevin Falcon and shadow forests minister Mike Bernier said in a statement that these closures point to a broader trend that sees the forestry industry being forced to leave B.C.

鈥淯nder (Premier) David Eby, the NDP is facilitating the collapse of an industry that has long been the backbone of our provincial economy and has supported B.C. families for generations.鈥

Figures show B.C.鈥檚 forestry industry on a lengthy downward trend relative to other industries, with little improvement expected ahead. These recent closures join growing list of permanent closures and curtailments with devastating effects on communities long reliant on forestry, but lacking sufficiently diversified economies to withstand such closures.

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Speaking to Black Press Media last year following closures in Chetwynd and Houston, Greg Halseth, Canada Research Chair in Rural and Small Town Studies at the University of Northern British Columbia, said such closures impact more than workers and their families.

鈥淓verything from grocery stores and gas stations, to businesses that directly work with the primary industry, are all impacted,鈥 he said. 鈥淔amilies with mortgages, vehicle loans, and other debts need to worry about replacement income. Families worry about having to move and losing their community connections. Children reflect some of the anxiety and concerns their parents are feeling.鈥

Communities also run the risk of losing established community leaders as workers and their families look for opportunities elsewhere, he added.

Halseth added impacted workers can receive support in many ways. Unfortunately, the response points to a larger problem.

鈥淓conomic emergency responses are, sadly, well-practiced in British Columbia as we continue to wait until a crisis occurs before we recognize longer-term challenges within existing economic sectors,鈥 he said.



Wolf Depner

About the Author: Wolf Depner

I joined the national team with Black Press Media in 2023 from the Peninsula News Review, where I had reported on Vancouver Island's Saanich Peninsula since 2019.
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