WHEREAS the provincial government has a target stumpage rate, and has set a stumpage rate of 0.25M3 for grade 3 logs, which is the rate charged to lumber producers processing timber destroyed by Mountain Pine Beetle, mainly in central and northern British Columbia; AND WHEREAS in an effort to meet the provincial target stumpage rate, the value not collected from grade 3 logs is being passed on to the value charged for green logs, effectively charging significantly more stumpage to producers mainly in the southern interior, commonly referred to as the grade 3 waterbed: THEREFORE BE IT RESOLVED that the provincial government be requested to eliminate as soon as possible the grade 3 waterbed, which is currently subsidizing northern forestry producers, and create provincial stumpage rates that are fair to all forestry operators in the province.
Ministry of Forests Range A more level playing field has been created by stumpage adjustments made on August 1, 2005. On August 1st, stumpage rates for lodgepole pine saw logs in the beetle infested areas North Central Interior were increased. As a consequence, pine and other species stumpage rates declined, particularly in the Southern Interior. A new market-based pricing system was implemented on the coast in 2004 to better reflect market realities and harvesting costs. A market-based pricing system for the interior is still being developed, but is expected to be in place by the end of this fiscal year.