Post by EIbound on Feb 5, 2010 1:08:53 GMT -7
Not Very good news for the valley mills
New pricing may hurt loggers
As it stands, there is one price for stumpage being milled in the interior of B.C., called MPS-B, and another for the coast, MPS-A. The government is proposing to adopt a standard price for the entire province and MPS-A is the one they are suggesting.
But some believe that this would make lumber far too expensive to produce in the interior and may threaten the viability of already struggling mills like the ones in Radium and Canal Flats.
"If it switches to MPS-A it impacts the Kootenays very negatively," said Columbia River-Revelstoke MLA Norm Macdonald. "The companies here would have to pay substantially more money for the logs."
Not everyone feels that it would be a negative change. "Until we get all the details, it is hard to give an opinion," said Dave Lefebvre, spokesman for Canfor, one of the companies pushing for the change. "The change itself should be positive."
He also went on to say that any decision made about pricing is something that will be implemented over the course of two years and any negative impacts will be mitigated over that time.
He also said that it was the expectation that mills like the one in Radium will be able to work withingthe new pricing system.
But Macdonald feels that larger logging companies are more concerned with the money they make across the country than the communities that are affected by job losses when mills shut down.
"When you're right on the line, adding additional costs could put you over the line," said Macdonald referring to companies like Tembec who run the mill in Canal Flats. He said Tembec have told him the costs for them could end up being more than $10 million.
New pricing may hurt loggers
As it stands, there is one price for stumpage being milled in the interior of B.C., called MPS-B, and another for the coast, MPS-A. The government is proposing to adopt a standard price for the entire province and MPS-A is the one they are suggesting.
But some believe that this would make lumber far too expensive to produce in the interior and may threaten the viability of already struggling mills like the ones in Radium and Canal Flats.
"If it switches to MPS-A it impacts the Kootenays very negatively," said Columbia River-Revelstoke MLA Norm Macdonald. "The companies here would have to pay substantially more money for the logs."
Not everyone feels that it would be a negative change. "Until we get all the details, it is hard to give an opinion," said Dave Lefebvre, spokesman for Canfor, one of the companies pushing for the change. "The change itself should be positive."
He also went on to say that any decision made about pricing is something that will be implemented over the course of two years and any negative impacts will be mitigated over that time.
He also said that it was the expectation that mills like the one in Radium will be able to work withingthe new pricing system.
But Macdonald feels that larger logging companies are more concerned with the money they make across the country than the communities that are affected by job losses when mills shut down.
"When you're right on the line, adding additional costs could put you over the line," said Macdonald referring to companies like Tembec who run the mill in Canal Flats. He said Tembec have told him the costs for them could end up being more than $10 million.