British Columbia's Raw Log Exports Up

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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2/4/99

OVERVIEW & COMMENTARY by EE

In both good and bad economic times, forests take a hit. In British

Columbia, Canada, forestry companies are increasingly turning to

exporting raw logs to remain solvent. Much of the world's forest

industry is inefficient, oversized, and unsustainable--dependent upon

clearing old-growth forests for profitability. As massive stands of

old-growth dwindle, eventually forest dependent industries worldwide

will need to downsize and retool to utilize plantations, smaller

secondary growth and other sources of fiber. This can be done now, or

after essentially all ancient forests are gone. I prefer the former,

as the world's biodiversity and ecosystem functionality depends upon

it.

g.b.

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Title: Raw log exports up

Source: Associated Press

Date: February 2, 1999

PORT ALBERNI, British Columbia (AP) -- Hard-hit forestry companies are

turning to exporting raw logs to keep them afloat. And while the

International Woodworkers of America has always opposed such export,

even union officials have said British Columbia needs the business.

"Philosophically it's a problem for us because we've always been

opposed to raw-log exports," said Larry Rewakowsky, president of the

union local. "But, in these tough times, it's a trade off because

they're keeping people working."

Coulson Forest Products is now exporting raw logs through a permit

that allows them to export part of a stand from government land on the

condition that it employs a full crew and doesn't turn a profit on the

total harvest. Any profit from exports is forfeited to the province as

tax in lieu of manufacturing.

General manager Wayne Coulson said exports of hemlock and balsam are

helping his company weather hard times and allowing him to cut red

cedar for local manufacturers.

Of the 460,000 cubic feet the company is harvesting, Coulson said

about 165,000 cubic feet are being exported.

"We're just keeping ahead of the curve," he said. "We don't like to

export raw logs, but there are things working against us on a global

basis.

"We know we're not going to make any money (from exports), but we can

maintain our cash flow and keep full employment. That's what it's

going to take for companies to survive."

Coulson employs over 300 unionized workers directly and provides work

for about 70 contractors.

Timber West is the biggest exporter of raw logs in the Alberni Valley.

About 1.48 million cubic feet of raw hemlock, balsam and cypress was

shipped to the United States and Japan in 1998. The company expects to

export about the same amount this year, said vice president Don

McMullan.

"There's a lot of myth around it, that exporting logs is exporting

jobs, but that doesn't stand up to scrutiny," he said. "It's not like

the flood gates are open, and the logs are flowing out. It's a niche

market and a very valuable niche."

McMullan said logs fetch up to 80 percent more on the foreign market,

and the province still takes about $30 (Canadian) per cubic metre in

taxes.

And only a portion of a stand is exportable, he said.

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