PROTECTION FOR CONTRACTORS
Logging contractors in B.C. will be better protected against non payment in the future thanks to the provincial government announcing yesterday the antiquated Woodworker Lien Act will be replaced with a new Forestry Service Providers Protection Act.
“With the introduction of today’s legislation, we’re acting on our August 2009 throne speech commitment to strengthen payment protection for forestry contractors,” said Forests and Range Minister Pat Bell. “By enabling a fund and providing for liens on forest products, we’re ensuring that logging contractors will be protected financially. In 2007, when Pope & Talbot declared bankruptcy, not all logging contractors received payment for their services. The Forestry Service Providers Protection Act is designed to prevent situations like that from happening again.”
Under the act, forestry service providers are those who provide contracted services, including falling, yarding and hauling timber to owners of forest product companies. Contractors will be able to register liens under the Personal Property Security Act to ensure payment of services.
“At the last TLA convention, Premier Campbell said he believed that contractors should be paid for the work they do,” said Dave Lewis, executive director, Truck Loggers Association. “This legislation sets the framework for a fund that will help ensure this happens..”
The new act enables the establishment of the Forestry Service Providers Compensation Fund and enables contributions to the fund through levies and other means. The fund will be administered arm’s length from government.
“This legislation supports a healthy, competitive contracting environment, which benefits the forest sector as a whole,” said Rick Jeffery, president and CEO, Coast Forest Products Association. “That being said, we do hope the legislation will not need to be invoked.”
In developing the new legislation, the Ministry of Forests and Range formed a working group with representatives from major licensees and logging associations, as well as an expert in lien legislation.
“We’re pleased to see government living up to its commitment to ensure loggers are paid for the work they do,” said MaryAnne Arcand, executive director, member services, Central Interior Logging Association. “This legislation and the accompanying fund put our members on a more solid footing in the event of licensee insolvency.”
A copy of the act, as introduced in the B.C. legislature during first reading, is available online at www.leg.bc.ca/39th2nd/1st_read/index.htm.
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