Forestry Industry and Fibre Decline

Year
2025
Number
EB84
Sponsor(s)
Port Alberni

Whereas hundreds of jobs have been lost in the forest industry in BC in 2024, and hundreds more are at risk due to the increasing cost and difficulty of accessing fibre and multiple other reasons; And whereas this forest industry crisis has the potential for declines in population as well as declines in industrial property tax revenues in dozens of communities throughout British Columbia: Therefore be it resolved that UBCM call on the provincial government to accelerate efforts to make more fibre available to mills at risk and work with industry as well as other stakeholders to find ways to reduce the cost of fibre delivered to the mills.

Provincial Response

Ministry of Forests Fibre supply in BC is under significant pressure, partially due to the end of Mountain Pine Beetle Allowable Annual Cut AAC uplifts, wildfire and drought damage, high transportation costs, and softwood lumber tariffs. The AAC has declined from the peak in the early 2000s of about 85 million cubic metres to the current level of 61.5 million cubic metres. Multiple factors have pushed actual harvest volumes down to 3035 million m. Throughout 2025, the ministry undertook Management Unit Reviews across the province, to delve into the regional issues and solutions to improve access to fibre supply. This has been developed into specific work plans and actions at the district level. Government actions to improve fibre access include expanding the BC Timber Sales ValueAdded Manufacturing Program, funding wildfire risk reduction and fibreutilization projects through the Forest Enhancement Society of BC FESBC, establishing First Nations wildfire salvage agreements, requiring full fibre recovery in coastal zones, enabling industryFirst Nations collaboration through the Wildfire Salvage Leadership Committee, and using Forest Landscape Planning Tables to improve longterm landbase predictability. BC is actively reviewing forest costs that are in our control or influenced by us. Additionally, a targeted project with Port Alberni licensees and First Nations is being coordinated by the Coast Area. This project is looking at the cost and operational challenges specific to Port Alberni. Late 2025, the Ministry of Forests conducted an assessment of the cost of obtaining a cutting permit in BC as reviewing costs is an important part of ensuring competitiveness. The review found the costs to be widely varied around the province. In 2026, the Ministry will focus on working towards bringing more consistency and efficiency to the process. More information about this review will be available in the near future. On reducing the cost of transporting fibre, the federal government has recently announced a transportation initiative for Spring 2026 to provide a 50 percent freight rate discount on interprovincial lumber shipments.

Convention Decision
Endorsed