TLA Show Vancouver
This year’s annual Truck Loggers Association (TLA) convention held in Vancouver from January 13th to 16th was a bit of a somber occasion. Many members of the group, which represents independent loggers on the BC Coast, tried to look for lifelines to help them stay afloat in what has proven to be an extremely difficult time. Those lifelines were few and far between as many of the speakers told loggers what they already know – financing will be tough to secure, demand will be down, and we haven’t seen the bottom yet.
One positive note was the announcement by BC Premier Gordon Campbell that the stumpage rate on coastal logs would drop by 50% to just $5.00 per cubic metre. However, with almost two thirds of coastal loggers not working right now, the Premier’s announcement didn’t draw the kind of enthusiasm expected. Any celebrations it did create were short lived as not long after the announcement, Steve Swanson, chairman of the US lobby group, Coalition for Fair Lumber Imports, called the reduced stumpage an “egregious” violation of the 2006 Softwood Lumber Agreement (SLA). “My view is it is a clear violation, possibly the most egregious violation to date.”
Zoltan van Heyningen, executive director of the coalition echoed Swanson’s remarks, noting their initial reaction is that the reduction in stumpage is a violation of the SLA.
BC Forest Minister Pat Bell said the reduction is justified. “These are all market-based changes. There’s nothing here that should raise any flags with the US softwood lumber coalition, or in fact with the Softwood Lumber Agreement. Everything has been done very cautiously and carefully as we moved through this process.”
Swanson and van Heyningen were at the TLA convention to participate in a panel discussion called “Global Reality”. Convention organizers had hoped an invitation to the pair may provide opportunities to open discussions on a regional free trade zone where the export of BC logs to the US would facilitate free trade for BC lumber. That bubble was also burst fairly quickly as the Americans made it clear they are looking for an all or nothing deal, saying only a Canada-wide solution would be acceptable.
“The log export restraint system is the cornerstone of the subsidy system in Canada,” said van Heyningen. “We view it as a US-Canada issue and it needs to be solved wholesale between Canada and the United States.”
Swanson also presented a hard line approach. “As you know, the Canadian provincial governments severely restrict the export of softwood logs, especially logs of high enough quality to be milled into lumber,” he said. “Log restrictions keep more fibre in Canada, which subsidizes Canadian sawmills. This provides Canadian mills with significant advantages, allowing them to better maintain production and employment. In order to have total free access in lumber, we would have to have total and free access to logs. It can’t be a half measure on Canada’s part.”
The comments were met with minimal resistance from any of the other panelists or audience members.
The trade show floor at the convention was also a quiet affair with participants saying it was smaller than in the past and with far less activity. Most of the major logging equipment and truck manufacturing companies had a presence, but many reported interest was not at the same level it has been at other conventions.
Next year’s TLA convention is slated for Vancouver Island.
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