British Columbia

B.C. announces $90M manufacturing jobs fund to help transition struggling forestry communities

B.C. has created a $90 million fund to create manufacturing jobs in B.C.'s forest industry following last week's announcement that up to 300 people will lose their positions at a Prince George pulp and paper mill.

Premier says industry facing a 'reckoning' amid disagreement over who to blame

A tall man stands behind a podium.
B.C. Premier David Eby speaks at the B.C. Natural Resources Forum in Prince George. (Betsy Trumpener/CBC)

B.C. has created a $90 million fund to create manufacturing jobs in B.C.'s forest industry following last week's announcement that up to 300 people will lose their positions at a Prince George pulp and paper mill.

The new B.C. Manufacturing Jobs Fund is aimed at supporting investment and innovation in the industry, which has seen several hundred people put out of work due to cuts and curtailments across the province in recent months.

Examples of projects that could get funding include a forestry company's purchase of equipment in order to create new timber products or a company exploring paper-based alternatives to plastics packaging.

"We need to get more good-paying jobs from our forests and every resource in our province," Eby said.

The investments will be rolled out over the course of three years.

Industry facing a 'reckoning,' premier says

Eby announced the new fund at the B.C. Natural Resources Forum, an annual gathering of industry and political leaders held in Prince George.

It comes the week after Canfor said it is eliminating its pulp line at a local mill, putting 300 people out of work by the end of the year.

Eby said he is meeting with affected workers and facing questions from people directly impacted by the downturn in the forest industry.

In an interview on CBC Daybreak North Monday, the premier addressed remarks made by union representative Chuck LeBlanc blaming the cuts in part on the provincial government's decision to temporarily defer logging in about one million hectares of forest while it comes up with an old-growth management plan.

The crane of a machine known as a forest harvester picks up logs in the foreground. In the background, a similar device is operating in a clearcut clearing.
Logs are harvested after a cutting operation. (Hytest Timber)

"That had a real [bearing] on Canfor's decision to close our mill," said LeBlanc, a millwright and president of the Public and Private Workers of Canada Local 9.

"It's all great and beautiful to say we're going to protect these areas, but it comes at a real cost."

So far, no deferrals have been approved in the Prince George timber supply region.

On a provincial level, Eby countered by saying the deferrals are just a small part of two decades of challenges which include massive forest fires and the rise of the mountain pine beetle in the late 1990s.

"This reckoning in the forest sector has been coming for a long time," he said. 

Eby said his goal is to develop a long-term plan that recognizes the challenges facing the industry and the communities that rely on the jobs it creates.

"Sustainability doesn't mean looking to the remaining old growth and saying that that's how we're going to fuel the industry going forward."

Industry accountability

Old growth protection, pine beetles and forest fires aren't the only culprits being blamed for the industry downturn, as companies, conservation groups and politicians all share their own narratives on why jobs are disappearing.

In a written statement released last week, Canfor president Kevin Edgson kept things simple, pointing to the lack of timber available for harvest without assigning responsibility.

"In recent years, several sawmills have permanently closed in the Prince George region due to deductions in the allowable annual cut and challenges accessing cost-competitive fibre," he said. 

Union representative Chuck LeBlanc discusses the impact.

In his remarks, LeBlanc also said the export of raw logs is an issue as manufacturing jobs are shipped elsewhere rather than staying in-province.

Meanwhile, Michelle Connolly, director of the Prince George-based advocacy group Conservation North, said the real issue is 40 years of industry consolidation, allowing a handful of multinational corporations like Canfor to take control of most of B.C.'s timber supply, reducing jobs and community accountability in the process.

A group of about 70 people demanding protection for old-growth forests attend a rally in Prince George, B.C., in March 2021. Recent job losses have had some conservationists and industry groups pointing the blame at each other for a downturn in the forest industry. (Andrew Kurjata/CBC)

Connolly pointed out there have been no new old-growth deferral orders in the Prince George region from which Canfor would supply its pulp and sawmills.

In December 2022, however, the Ministry of Forests sent out a letter to logging companies outlining expectations that certain regions of the timber supply would go unharvested, in compliance with a 2004 strategy of protecting biodiversity in the region — a strategy environmentalists argue should have been being followed all along.

Connolly also said it was also disingenuous for companies and government to point to pine beetles and wildfires for job losses, saying their impacts could and had been predicted for decades.

"They're blaming their bad planning on nature," she said.

A map showing old-growth deferral areas.
A map shows the old-growth deferral areas across B.C. Michelle Connolly of Conservation North says none are in the Omineca region which supplies Prince George-area mills. (B.C. Ministry of Forests)
A map of the central interior of B.C.
Old-growth areas in the Prince George Timber Supply Area are mapped in dark green. A December 2022 letter from the Ministry of Forests informed companies they are expected not to log in these areas in order to retain biodiversity. (B.C. Ministry of Forests)

Adam Olsen of the B.C. Green Party echoed that sentiment, saying that for years industry and the province have been focused on maximizing short-term profits rather than long-term ecosystem management and more secure, community-based jobs.

"Canfor is a company that in 2021 profited $1.5 billion," he said as part of a panel discussion on CBC's The Early Edition. "It's still profitable."

Mo Sihota, a former NDP cabinet minister and a current lobbyist whose clients include pulp and paper manufacturer Paper Excellence agreed to an extent, saying he was disappointed the company wasn't taking a "home team discount" to try to preserve jobs in B.C. while seeking new markets for its paper products.

A woman with a pensive face looks off-camera with a logged-out hill in the background.
Michelle Connolly, with Prince George-based advocacy group Conservation North, says the consolidation of the forest industry in B.C. has concentrated control of the timber supply to a handful of large multinational companies, reducing local accountability. (CBC)

But he said it was too simple to blame corporate greed for the problems, pointing out demand for B.C. forest products has declined, making it difficult to operate.

Dianne Watts, a member of the B.C. Liberal Party executive and a Canfor board director said the company had, in fact, done "everything it could possibly do" to try to avoid job losses.

BC's Premier David Eby has announced new protections for B.C. renters through the creation of a new $500-million fund. Our political panel will weigh in on that and Canfor closing its pulp line in Prince George.

Instead, she argued the cost of doing business in B.C. is too high, pointing out other companies have been making cuts in recent months.

Calls for community control

In Prince George Tuesday, a rally organized by conservation and labour groups is planned for outside the Natural Resources Forum while Eby is speaking inside.

Among the demands is more community control over forests, something Eby said "resonates with me."

Asked if he was worried taking control away from major corporations might lead to pushback, Eby acknowledged the tension between industry leaders and the province.

"You know, the big forestry companies are beholden to their shareholders getting maximum return on their investment, which may mean processing trees in other places.

"For our province, our goal is making sure that we're getting as many jobs as possible out of the woods."

The Premier says forest policy announcements to come at Prince George forum following job loss announcements.


  • This article has been updated to clarify that while the B.C. government has not created any new old-growth protection orders in the Prince George Timber Supply Area in recent years, it has informed companies they are expected to stop logging in parts of the region covered by a 2004 biodiversity protection plan.
    Feb 06, 2023 10:40 AM PT

With files from Kate Partridge, Daybreak North and the Early Edition


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