Softwood lumber industry underwhelmed by announced supports

An announcement of federal support for the beleaguered softwood lumber sector received a lukewarm reception from B.C. industry leaders.

Ottawa threw the beleaguered softwood lumber industry a bone Wednesday, with Prime Minister Mark Carney announcing new supports for both it and the steel industry.

“This is an important day for Canada’s workers,” Carney said.

The new measures include quotas and global tariffs aimed at reducing steel imports, plus $500 million in new loan guarantees for softwood lumber companies.

“Loans are only good if i can sell my prioduct and pay for those loans,” said Brian Menzies, the head of the Independent Wood Processors Association of B.C.

“At 45 per cent (U.S. tariffs on softwood lumber imports), I can t sell my product into the United States.”

Other steps announced Wednesday include cutting freight rates in half for lumber and steel transported across Canada, setting up a forestry task force and more supports for laid-off workers in all industries.

The measures are window dressing – say some in the softwood industry – when compared to the impact of the steel industry supports the federal government has announced.

“I’m afraid we’ve come to the point that ‘Sophies choice’ is happening and softwood lumber is the child who’s going to be left behind,” said Menzies.

It’s a concern shared at Leslie Forest Products, a family-run business in Delta where James Sanghera, the sales manager, said Wednesday’s measures won’t make a difference.

“We ship very little lumber via rail. Most of the wood we’re sending down to the States is going on truck, so that doesn’t really help us a lot. In terms of loan guarantees, we can already get loans from the bank,” said Sanghera.

What’s needed, he said, is a deal to end the decades-long softwood dispute with the U.S.

“We’re scrambling to find work just to keep our guys going until Christmas,” he said Wednesday.

B.C.’s NDP government called the news a good first step, while acknowledging more help is needed.

“The best way to address this challenge right now is for President Trump and Prime Minister Carney to get to the table and strike a deal on softwood,” said Forestry Minister Ravi Parmar.