The province is deferring stumpage fees for forest companies in the wake of COVID-19.
Stumpage fees are paid by forest companies to buy, sell or harvest trees that are on Crown land.
Forest Minister Doug Donaldson says the three-month deferral will mean about an estimated $80 million in payments being put off, to help improve liquidity for forest companies.
“We know it’s not easy. The COVID crisis has added to challenges the industry is already facing. Our government is continuing to put workers and families first when it comes to the challenges facing the forest sector,” Parliamentary Secretary for Forestry Ravi Kahlon says.
Meanwhile, Donaldson was was asked if the United States could challenge this deferral, and he says this is not a grant or a loan.
“Interest will be applied to the amounts owing, so from our perspective it cannot be construed in any way as a subsidy, and that’s what the U.S. lawmakers and lumber barons are always looking for. They’re always looking for the upper hand. We don’t subsidize the industry in B.C., that’s been proven over and over again.”
Donaldson says this deferral won’t expose B.C. to any more risks in the current softwood lumber dispute.