Hodgson announces $12.4-million for British Columbia forestry projects
Ottawa rolled out $12.4-million for 14 british columbia forestry projects on Thursday, with the biggest share going to Nelson-based Spearhead Timberworks Inc. Canada’s Minister of Energy and Natural Resources, Tim Hodgson, said the money will back projects meant to help the sector adjust while U.S. softwood lumber duties stay high.
The federal funding is part of Ottawa’s broader $2.35-billion commitment to Canada’s forestry industry. Hodgson said at a news conference at Terminal Forest Products that Canada’s forests are “more than a resource – they are the foundation for good jobs, affordable housing and sustainable economic growth.”
Terminal Forest Products announcement
Hodgson said “We didn’t ask for this trade war” and “We need to work together to win.” The package includes $1.2-billion in loan guarantees for lumber producers and $500-million for programs aimed at transformative, innovative projects and help for Canadian companies to diversify wood production.
Natural Resources Canada said the B.C. projects will advance new low-carbon wood technologies, expand the use of mass timber in construction, support Indigenous groups and forest sector businesses, increase manufacturers’ ability to add more value to wood products and diversify Canada’s export markets for forest products.
Spearhead Timberworks Inc.
The largest single B.C. award is $7.5-million for Spearhead Timberworks Inc., which specializes in glued, laminated wood products. Other recipients include Yinka Dene Economic Development LP, Forestry Innovation Investment, B.C. Institute of Technology and Laxyip Management Office Society.
The announcement comes as U.S. import taxes on softwood lumber stand at 45.16 per cent for most Canadian producers. That rate could fall to 34.83 per cent later this year if the U.S. Department of Commerce moves ahead with planned cuts to duty rates. B.C. Premier David Eby and provincial Forests Minister Ravi Parmar have warned that the province’s softwood industry faces enormous challenges.
For producers, the immediate change is the new federal money flowing into projects tied to technology, market access and product value. The package gives named companies and organizations a federal backer while the trade dispute keeps pressure on sales across the border.
