A 'vicious cycle' is scaring away investment from B.C. forests, says industry

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At an annual meeting of forest executives and insiders, industry offered a consistent message: dwindling wood fibre and regulatory uncertainty is scaring away investment in B.C.

A dwindling supply of wood fibre and the B.C. government’s move to create a “paradigm shift” in the forestry industry is leading to a “vicious cycle” that is scaring investment away from the province, warned private equity experts and industry leaders Thursday.

He said he has stepped into burnt forests where companies are struggling to wade through red tape to salvage what wood is left and boost the province’s fibre supply. Duelling narratives on why fibre is in short supply While industry says bad policy pushed B.C.'s forest industry to suffer unnecessary losses, others have suggested the situation is of their own making.

In one case last year, BC Timber Sales — the B.C. government-run corporation responsible for auctioning off 20 per cent of the province’s annual allowable cut — gave a green light to companies looking to log certain old-growth forests slated for deferral, documents show. The May 2023 memo gave direction for logging to proceed in certain old-growth forests where First Nations haven't responded or where road building elsewhere is deemed not economically feasible.

'You can make money' On Thursday, forest industry leaders presented a different narrative — one where government red tape, poor investment conditions and multiple years of devastating wildfires have eliminated thousands of jobs and crippled once thriving economic growth.

 

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