Logging issues need leaders’ attention

With a blur of candidates seeking B.C.’s political top job following Gordon Campbell’s decision to step down as premier, there’s a risk that government commitments and log-harvest sector priorities can become lost in the scramble. We would be negligent if we didn’t remind the CILA’s members and other newsletter readers of the issues and concerns that are of vital importance to our sector.

Liberal leadership candidates also need to know about them when they seek support from the tens of thousands of logging contractors, independent log-haulers, machinery, parts and service suppliers and their families and employees. Here are the big ones all candidates should be prepared to answer when asked:

Forest Service Providers Protection Act:

Almost three years ago, this government committed to replacing the old Woodworker Lien Act with stronger legislation to give contractors and subcontractors a better way to collect money owed them by their customers (often employers). Through lengthy negotiations contractors agreed to a lower-priority lien process on condition that forest companies set up a fund big enough to cover contractor losses if a large forest company became insolvent. Government came through last spring with a new Act, and although there have been many discussions since, we still don’t have a fund set up and this must be resolved soon.

Trust distributions being taxed:

When government passed the Forest Revitalization Act in 2003 and took back 20% of forest companies’ licence volume, many contractors also lost replaceable contract volume. Government paid compensation in both cases, with contractors under the understanding that trust fund compensation payments would not be taxed. However, Canada Revenue treated the payments as income. We know the province has been trying to help resolve this, and it may be resolved in the near future.

Provincial carbon tax:

What should be a flow-through tax to the end user (forest company) has generally landed on contractors and truckers, costing millions each logging season and undermining their competitiveness with Alberta contractors who don’t pay carbon tax. It’s a big issue in the northeast, and leadership candidates should be prepared to tell our sector what they’ll do about it.

New work opportunities:

Whether it’s clearing timber from the Site C hydro dam basin or working in mining, pipeline or road construction, there’s a strong feeling across the north that B.C. companies should get first opportunity for the work over out-of-province contractors. It’s a question of competitiveness and costs such as the carbon tax: How can government create opportunities for B.C. businesses without getting tangled in protectionist debates?