The New Democrats are demanding that Forestry Minister Steve Thomson explain why he signed a decade-long wood chip export deal when a provincial advisory committee expressed concerns over the length and export volume of the agreement.
According to an NDP press release, Thomson, who is Liberal MLA for Kelowna-Mission, signed an export deal with North Vancouver-based wood chip exporter Fibreco on January 30.
The deal, known as export permit C78, is to export 300,000 bone-dry units (approximately 300,000 tonnes) of wood chips for 10 years.
It is one of two export deals Fibreco has with the province. The other allows Fibreco to export 200,000 bone-dry units for three years.
In total, Fibreco will export 500,000 units for the next three years.
The decade-long agreement, contends the NDP, did not adhere to an established review process and allows for the export of too many wood chips for too long.
In an April 19 letter to Thomson, the Chip Export Advisory Committee’s consumer subcommittee echoed the NDP’s sentiments, citing both a lack of review and length of the contract as “concerns.”
“The C78 application did not follow the documented administrated procedures for dealing with applications for wood residue exports under Part 10 of the Forest Act,” read the letter.
“In the face of imminent and well-documented decrease of fibre supply in the province the consumers sub committee think it illogical that the 3000 bdu [bone-dry units] will be surplus to the requirements of timber processing facilities in British Columbia for a period of 10 years. It has been many years since a chip export permit was approved for a 10-year term. The fact is it is impossible to determine today that a volume of chips will be surplus to the requirements of facilities in British Columbia over the next 10 years.”
Thomson told Business in Vancouver that agreement C78 includes a provision that ensures no wood chips will be exported if there is a provincial shortage.
As for the review process, Thomson countered by saying each deal was evaluated by the requisite organizations.
“My advice from staff was that the deal was reviewed,” Thomson said.
“Due process was done. It’s because they have concerns about the length of the deal that they may feel they weren’t reviewed.”
A representative from Fibreco declined to comment but said the company will be circulating a letter today stating its opinion on the export contracts.
“This deal contravenes the Forest Act, it was done in secret and, after the advisory panel found out about it, the minister ignored their advice,” said Norm Macdonald, NDP forest critic, in a press release.
“It’s outrageous that the Liberals would make this long-term deal before the election.”
