Daily Archives: December 13, 2019

Today’s Takeaway

EU moves to reclaim trade dispute process after US cripples WTO

December 13, 2019
Category: Today's Takeaway

The European Union moves to reclaim trade authority after US cripples WTO’s dispute settlement process. In other Business news: the Toronto Star says NAFTA-2 is better but still a bad deal; Fortress pulp mill to close near Ottawa; Nova Scotia’s new forestry regulations won’t be public until the New Year—while its decision on Northern Pulp could put taxpayers on the hook for damages

On the BC front, after Wednesday’s forestry worker rally—Minister Donaldson says we’re listening, while Premier Horgan says help is on its way. Meanwhile: WFP strike discussions are postponed to next week, and an op-ed by the BC Forest Safety Council’s Rob Moonen on how the principles for preventing injuries can help during these difficult times.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

EU moves to reclaim trade authority after US cripples WTO

By Philip Blenkinsop
Business Day
December 12, 2019
Category: Business & Politics
Region: Canada, International

Brussels  — The European Union could impose tariffs on the US and other rivals if they refuse to settle trade disputes after the crippling of the World Trade Organisation (WTO). …The proposals are the European Union’s latest response to a crisis at the WTO, which the bloc has relied on for 25 years to intervene in trade conflicts. The WTO’s appellate body, which has acted as a supreme court for international disputes, became paralysed this week, after the Trump administration’s blocking of new appointments for the past two years meant its membership fell below the quorum necessary to make new rulings when two members’ terms expired. …The European Commission has forged agreements with Canada and Norway to allow appeals to go before former appellate body members, which is allowed under WTO rules, and wants to sign up other countries with which it has more active disputes.

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Softwood Lumber, Gypsum Products Prices Increase as Broader Price Index Declines in November

By David Logan
Eye on Housing
December 12, 2019
Category: Business & Politics
Region: Canada, United States

Prices paid for goods used in residential construction declined 0.4% in November (not seasonally adjusted) according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. However, the price of softwood lumber and gypsum products have increased. Building materials prices have declined an average of 0.1% per month over the last 12 months, and the price of goods used in residential construction has risen 1.3% in 2019. …The PPI report shows that softwood lumber prices increased 3.5% (seasonally adjusted) in November. The index for softwood lumber has risen 7.7% over the prior three months and now stands at its highest level since September 2018.

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New NAFTA has some wins but still a bad deal

By Thomas Walkom
The Toronto Star
December 12, 2019
Category: Business & Politics
Region: Canada, United States

For Canada, the latest version of the North American Free Trade Agreement seems a definite improvement. …All in all, this version of NAFTA is better than the one agreed to last year by U.S., Canadian and Mexican negotiators. And in some key areas, that version was better than the original NAFTA of 1994. …However, Canada took losses also in last year’s iteration of NAFTA, losses that remain in the latest version. One would effectively bar Canada from entering into a trade agreement with a nonmarket country like China unless Washington agreed. Another would allow the U.S. and Mexico to monitor Canada’s tax and exchange rate policies. But the real flaw… is Washington’s insistence on the right to ignore and override the free trade pact whenever it pleases. The U.S. has famously done this for years to protect its softwood lumber industry from Canadian competition.

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Meetings Rescheduled with Independent Mediators and USW

By Western Forest Products Inc.
Global Newswire
December 12, 2019
Category: Business & Politics
Region: Canada, United States

VANCOUVER, BC — Western Forest Products announced that independent mediators Vince Ready and Amanda Rogers today informed the Company and the United Steelworkers Local 1-1937 that due to personal circumstances, meetings between the parties will resume next week. The parties have agreed to a media blackout during this mediation process. The strike, which commenced on July 1, 2019, affects all the Company’s USW certified manufacturing and timberlands operations in BC.

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Minister’s statement on truck loggers rally

Ministry of Forests, Lands, Natural Resource Operations and Rural Development
Government of British Columbia
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

Doug Donaldson

Doug Donaldson, Minister of Forests… “Yesterday, along with Labour Minister Harry Bains, I met with representatives from a group of over 100 forestry contractors who came to the Parliament Buildings to have their voices heard. …“Now, like other forestry workers and communities, they are going through tough times. …“In addition to the strike, the forest industry has faced a perfect storm of challenges over the past year – from market pressures, low commodity prices and ongoing unjust duties from the United States to impacts from climate change. …“We listened to what they had to say and shared their concerns about reduced operations on the coast this past year. More than that, we heard their concerns. …“In the meantime, we are making changes to strengthen the B.C. forest sector’s resiliency so that it can come out of this situation stronger.

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How deregulation hits rural communities

By Joel McKay, CEO, Northern Development Initiative Trust
Prince George Citizen
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

Joel McKay

…let’s dissect … appurtenancy in the forest sector. Unless you’ve lived in a forestry town or worked in the industry, you’ve probably never heard of that term. Appurtenancy is one of those obscure policy tools you’re not likely to come across – yet one that’s still groused about in places like Mackenzie, Fort St. James and Quesnel. Appurtenancy was the policy tool that linked harvesting areas to community benefit – essentially, the trees that were cut in an area had to be milled in that area. The idea was to use public policy to incentivize local community sustainability and development – it was particularly championed by the government of W.A.C. Bennett in the years following the Second World War. But riding the wave of deregulation through the 80s and 90s, appurtenancy was mostly phased out by 2002 – with only 11.5 per cent of B.C.’s harvest subject to it. …On the topic of deregulation and its impact in rural communities – the advice is this: be careful, very careful.

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MLA’s Dan Davies and Mike Bernier attend the Forestry Worker Rally in Victoria

By Tracy Teves
Energeticcity.ca
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

VICTORIA, B.C. – MLA Dan Davies of Peace River North and MLA Mike Bernier Peace River South attended the Forestry Worker Rally in Victoria. …Davies and Bernier share … the frustration that no representatives from the NDP came out to speak with the group. Davies shares… this is a crisis across the province & the NDP government has done diddly to help. Bernier shares …Forestry workers feel the NDP is ignoring them so they came to the front steps since the Government won’t come to them. …Forests Minister Doug Donaldson said, “when it comes to stumpage, coastal rates went down by 24% in October and the rates will be adjusted again in January 2020. The old government knew about the challenges facing the forest sector and it failed to act. Instead of helping forestry communities become more resilient, it buried reports warning of mill closures. Its shameful inaction has led us to where we are today.

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USW workers should accept wage offer and compromise

By Joe Sawchuk
The Cowichan Valley Citizen
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

Re: comments made by Bill Routley on USW strike. Once again, Bill Routley shooting off from the hip not mentioning key points on the topic. Bill is telling us that Western Forest Products does not care about their employees in the way they are treated, but forgets to realize that when the strike is over, these employees will still be employed by Western, once again collecting their paycheques. …Butler also fails to realize that B.C. is not the only lumber manufacturer in the world. B.C. is in competition with other countries that manufacture lumber. …The key factor here, is that a new contract is only going to come to reality based on the yearly net incomes of the company.

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Kamloops council will set heavy industry rate in 2020

By Jessica Wallace
Kamloops This Week
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

The city is on the right track as it reviews heavy industry taxation, according to a group of citizens watching the process with concern over residential tax bills. …Last year, the city shifted about $4 to the average-assessed household to lower heavy industry tax rates. Council then decided to review a policy to lower heavy industry tax rates over time. …The committee this week agreed to send revisions of that policy to council in the new year, recommending the mill rate cap be based on the rates of average B.C. cities without ports, which can drive down rates due to a legislated federal cap. …The move is expected to change the mill rate cap for heavy industry users in Kamloops — Domtar and Tolko — though by how much remains to be seen until the report goes to council.

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Help for coastal forestry contractors on its way, Horgan says

By Rob Shaw
The Vancouver Sun
December 12, 2019
Category: Business & Politics
Region: Canada, Canada West

John Horgan

VICTORIA — Premier John Horgan says aid for truck loggers hurt by a five-month forestry strike on Vancouver Island is on its way, just a day after contractors rallied for action on the steps of the legislature. Horgan told Postmedia News that he’s heard “loud and clear” the stories of hardship and despairfrom mid- and North Island communities where contractors, truck loggers and others are caught in the middle of a lengthy strike between the United Steelworkers and Western Forest Products. “There are truck loggers who are being affected by this, not for any reason of their own making,” Horgan said Thursday. “So we’re looking at ways we can ensure that they keep their vehicles, for example. Those are programs that are being developed right now. And we’ll have more to say about that probably early in the new year, maybe as early as next week.”

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Nova Scotia’s forestry minister says he won’t impose a clearcut moratorium

By Jack Julian
CBC News
December 13, 2019
Category: Business & Politics
Region: Canada, Canada East

Iain Rankin

Nova Scotia’s forestry minister says there will be no changes in forestry practices following a plea from three municipal leaders in southwestern Nova Scotia.  The mayors of Lockeport and Shelburne and the warden of the District of Shelburne wrote to Iain Rankin asking for a moratorium on clear cutting provincewide until new forestry regulations are fully implemented. “I’m not prepared to pick specific regions of the province to stop the forestry industry. They continue to abide by the interim guidelines we’ve had in place. And we’re committed to implementing ecological forestry,” Rankin said following a cabinet meeting Thursday. The warden and mayors are particularly concerned about clearcuts planned for roughly 90 hectares of forest located near Deception Lake north of Shelburne. …Rankin said the first draft of new forestry regulations won’t be made public until the New Year. 

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Province’s agreement with Northern Pulp puts taxpayers at risk, says legal expert

By Emma Smith
CBC News
December 12, 2019
Category: Business & Politics
Region: Canada, Canada East

As the Nova Scotia government prepares to make a decision on the future of Northern Pulp, an expert in Canadian contract law is calling its agreement with the Pictou County pulp mill a conflict of interest, saying it puts taxpayers at risk… Angela Swan, an adjunct professor at York University’s Osgoode Hall Law School. …The Nova Scotia government signed an indemnity agreement with the mill’s former owner, Scott Maritimes Limited, back in 1995, which outlines what could happen if the mill closes or plans for a new facility are rejected. …The agreement protects Northern Pulp against loss or damages, and suggests the province would be entirely on the hook for the cost of cleaning up Boat Harbour and building the new treatment facility. …But a spokesperson for Premier Stephen McNeil says the province is not in a conflict of interest, and… it must deal with agreements made by governments that came before.

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Key decision on fate of Nova Scotia’s Northern Pulp mill could come any day

By Michael MacDonald
CTV News Atlantic
December 12, 2019
Category: Business & Politics
Region: Canada, Canada East

HALIFAX — The Nova Scotia government could make a key decision as early as Friday regarding the fate of a pulp mill and the thousands of forest industry jobs it supports. The province’s environment minister has until Tuesday to decide whether to approve Northern Pulp’s proposal for a new wastewater facility that would pump millions of litres of treated effluent directly into the Northumberland Strait. …While it’s true that more than 2,500 jobs hang in the balance, Wilson said his decision will include other factors. …Wilson has three options before him: reject the pipeline proposal outright, accept it with conditions, or ask for further information. Premier Stephen McNeil said the fate of the mill near Pictou in northern Nova Scotia was the most important issue facing the province this year. But he gave no indication where his Liberal government is leaning.

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Pulp mill closure costs Outaouais more forestry jobs

CBC News
December 12, 2019
Category: Business & Politics
Region: Canada, Canada East

Nearly 200 forestry workers in the Outaouais are out of work after a local pulp and paper mill announced it’s shutting down, joining more than 400 laid off since October. Fortress Global Enterprises announced Thursday it has failed to find a buyer for its plant in Thurso, Que. In turn, hardwood flooring company Lauzon Planchers de bois exclusifs has decided to close its sawmill, also in Thurso, and lay off 113 employees. “Our plan is to find a solution for outside sourcing to restore the factory in a couple months,” said David Lauzon, the company’s CEO. …In the meantime, he said the company has only enough timber to continue operating the sawmill until next Thursday, placing it in a “difficult situation.” The company laid off another 165 employees in October after it ceased its own logging operations.

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Looming Northern Pulp decision could chip away at forestry business

By Aaron Beswick
The Saltwire Network
December 12, 2019
Category: Business & Politics
Region: Canada, Canada East

Adam Ripley

Adam Ripley’s… River Phillip, Cumberland County, woodlot decisions are coming soon. “Pulpwood is the lowest value stuff we sell but the mills that buy our high value saw logs are saying they’re really worried, which means I should be worried,” said Ripley. …Between ten and twenty per cent of what the Ripleys cut goes to kraft pulp mill in Pictou County. …But the sawmills paying a premium to buy his logs sell their woodchips, created as a byproduct, to Northern Pulp. Then there’s the 50 hectares the Ripley’s had thinned this year. …The largest contributor to the silviculture fund that pays for this treatment is Northern Pulp. …Those margins may be about to get a lot worse if Northern Pulp shuts, setting off a domino effect of closures amongst sawmills and harvesting contractors in this highly intertwined industry.

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New Mexico needs forests thinned, lures in California sawmill with $350k grant

By Robert Dalheim
Woodworking Network
December 12, 2019
Category: Business & Politics
Region: United States, US West
CIMARRON, N.M. -Lance Forest Products, a Northern California-based sawmill business, will relocate to New Mexico after the state offered it a $350,000 grant. After catastrophic fires in the region burned 36,000 acres of forest and forced evacuations, state officials want the forests thinned. So it reached out to Lance Forest, who then formed agreements with private Northern New Mexico ranchers for harvesting and thinning. “We are delighted to welcome Lance Forest Products to New Mexico,” Gov. Lujan Grisham said in the statement. “This company will revitalize the forest restoration economy in Cimarron, restoring confidence in the community, bringing needed jobs, and improving forest resilience to climate change. It’s a win-win for all.” Lance plans to relocate $1.2 million of equipment to Northern New Mexico by rail or truck and expects to begin operations by mid-2020. 

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As it sells its Jay paper mill, Verso tries to stave off a corporate coup

MaineBiz
December 12, 2019
Category: Business & Politics
Region: United States, US East

Verso Corp., which is in the midst of selling its paper mill in Jay, is now in the midst of defending itself from an attempted takeover. It’s not clear if the corporate chess game will affect the sale of the mill and another in Wisconsin for $400 million… But Verso has nominated a new director for its board — and will soon propose another — as alternatives to a slate proposed by an investor group that’s trying to gain control. …the board said it is recommending for election …Robert K. Beckler, who most recently was president of packaging solutions for Atlanta-based WestRock Co.. Verso Co-Chairmen Alan Carr and Gene Davis will not stand for re-election …saying,”we believe that [the investor group] spurned bidders that have made several attempts to own or control the company, have chosen to pursue a proxy fight in order to further their continued efforts to obtain control of the company and its prospects.

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Wood, Paper & Green Building

Best Project: Office/Retail/Mixed-Use: First Tech Federal Credit Union, Oregon Corporate Office

Engineering News-Record
December 12, 2019
Category: Wood, Paper & Green Building
Region: United States, US West

Located in the Dawson Creek nature area near Hillsboro, Ore., the First Tech Federal Credit Union is a new workspace for 500 employees. At five stories and more than 150,000 sq ft, the office is the largest cross-laminated beam building by square footage in the nation. The project achieved LEED Gold certification thanks to its use of locally sourced and refined materials, such as columns, beams and cross-laminated timber (CLT). The team designed a timber structure rather than one of concrete or steel to reduce embodied energy toward a goal of carbon neutrality. The timber is SFI-certified lumber and beetle-kill pine salvaged from forests… Because CLT is a recent addition to the building code, there are no tested assemblies for fireproofing the steel to wood conditions [therefore] the project team worked closely with a code consultant to develop engineering designs that were affordable and constructible.

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Forestry

Invasive English holly poses threat to Island’s eco-system

By Kevin Laird
Victoria News
December 12, 2019
Category: Forestry
Region: Canada, Canada West

…English Holly is a non-native plant, and leaving it to propagate will only lead to more problems for indigenous species. …Mark Atherton, chairman of the Metchosin parks and trails advisory committee and a retired forester says, “holly is controllable,” adding “It’s better to deal with it now versus 30 years down the road.” …English holly (Ilex aquifolium) is grown for its bright red berries and spiny, dark green evergreen foliage. A large shrub or small tree, English holly has become a serious invasive because of its adaptability to grow in shade or sun, and the ease with which its seeds are spread by birds. …Don Hare, executive director of the Coastal Invasive Species Committee, believes English holly has the potential to begin rapidly spreading on Vancouver Island, with conditions almost identical to the Pacific Northwest forest region of the U.S. …Fighting the battle are volunteers from the Metchosin Invasive Species Cooperative.

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A conservation group criticized Quebec over caribou. So the province cut ties with it

CBC News
December 12, 2019
Category: Forestry
Region: Canada, Canada East

Henri Jacob

The Quebec government has ended its partnership with a conservation group after it criticized the Ministry of Forests, Wildlife and Parks for not doing enough to protect caribou herds. Action Boréale, based in Val-d’Or, had partnered with the government to develop a strategy to protect the endangered herds in the area.  The group posted on its Facebook page that Francis Forcier, the director of strategic mandates with the ministry, was responsible for the crisis due to his inaction on the caribou file. The statement was in reaction to news that the ministry was going to lift a ban on logging operations in three forest ranges in the Lac Saint-Jean area. The group wanted the public to know why the file wasn’t progressing, said Henri Jacob, the president of Action Boréale. …The ministry responded by severing ties with the group and sending a legal notice demanding that it remove the post.

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Forest thinning to stop wildfires as strong as weakest link

By Matthew Brown and Christina Larson
Associated Press in Helena Independent Record
December 12, 2019
Category: Forestry
Region: United States, US West

SANTA CRUZ MOUNTAINS, Calif.  — …With California’s increasingly warm, dry and overgrown landscape, wildfire has become a perpetual danger. Among the most important tools the state has against fires is to mimic their effects: thinning trees and brush by hand to reduce the amount of vegetation that would become fuel in a fire, and using controlled burns to keep undergrowth and shrub lands in check. State lawmakers committed more than $200 million annually to fire prevention efforts and Gov. Gavin Newsom wants to spend even more, motivated by infernos such as one last year that killed 85 people in Paradise, California, some who died in their cars while trying to flee. Yet officials say efforts to make areas such as this road corridor in Northern California more fire safe are undercut by property owners who refuse to let fire crews work on their property. 

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Carbon, Climate & Bioenergy

Nature-based climate solutions go beyond planting trees

By Ole Hendrickson, Ottawa River Institute
Rabble.ca
December 11, 2019
Category: Carbon, Climate & Bioenergy
Region: Canada, United States

Rumour has it that the federal government is considering a major investment in using nature to reduce greenhouse gases and to mitigate climate change. The UN Intergovernmental Panel on Climate Change (IPCC) has numerous helpful suggestions in this regard. The IPCC says that protecting existing high-carbon ecosystems (wetlands, rangelands, forests) has immediate impacts. …The IPCC also recommends enhancing carbon storage in human-modified areas by planting trees. …Excessive reliance on planting trees is risky. Fires can quickly release stored forest carbon. …Another important consideration is the fate of harvested forest products. Large tracts of Canada’s intact boreal forest are being converted into toilet paper, whose carbon goes down the pipe to the sewage plant and back into the atmosphere. …If harvested wood were instead used to build affordable, energy-efficient, low-income housing, carbon would remain locked up for decades.

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To Combat Climate Change, See the Forest for the Trees

By Isabella Kaminski
Scientific American
December 13, 2019
Category: Carbon, Climate & Bioenergy
Region: International

…From a climate perspective, forests are vital because they’re filled with vegetation, fungi, and microorganisms that draw carbon dioxide from the air and store it. Although just how much CO2 they can absorb may have been overestimated, there’s no doubt that ample, healthy forests can provide a relatively low-tech way to help offset greenhouse gas emissions and combat climate change. …The private sector has also gotten in on the act, often to make up for other environmentally destructive activities. In April, oil giant Shell pledged $300 million to offset the carbon emissions of its customers though forest restoration projects in countries such as the Netherlands and Spain. The problem: Some experts are concerned that these initiatives rely on such an anemic definition of what constitutes a forest that they will ultimately generate far fewer benefits than advocates imagine.

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Health & Safety

West Fraser Mills fined for violation in Quesnel

By George Henderson
My Cariboo Now
December 12, 2019
Category: Health & Safety
Region: Canada, Canada West

WorkSafeBC has fined West Fraser Mills following an inspection in Quesnel. The inspection took place at a debarker building and at the plywood plant. WorkSafeBC says there were accumulations of combustible dust observed in multiple locations, including near potential ignition sources such as lighting, electric motors, and rotating machinery parts. It says West Fraser failed to remove hazardous accumulations of combustible dust, which it described as a high-risk violation. The fine, imposed on November 1st, was for $150,983.96.

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Brink fined for unsafe workplace

Prince George Citizen
December 12, 2019
Category: Health & Safety
Region: Canada, Canada West

WorkSafeBC has hit Brink Forest Products Ltd. with a $37,639.56 fine for unsafe work practices. The fine was levied on Oct. 4 in response to a July 3 inspection to see if the employer had completed a safeguarding audit and added new guards to the workplace. The inspector found the employer had done so but also came across some problems. “During the inspection, I observed two separate safeguards that were left open,” the inspector said in a report. “One safeguard gate was propped open with a garbage can and the other was flipped open.” “The employer corrected the violation immediately and I discussed with the employer and worker that the root cause of the violation must be investigated to ensure sustainability of compliance.”

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