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Logging firms weather changes

Squamish Mills requests return to 1080s standing green export method

Squamish is not the same as the logging town established here in the early 1900s, but the industry remains a big reason for its existence. Despite tough economic conditions, changing priorities and more stringent environmental standards, logging continues to provide jobs, security and economic stability locally, one of the leaders of Squamish's industry says.

"Logging's gotten a bit more technical. We have more government constraints to work within but generally speaking, there hasn't been a lot of change in this particular company," said Squamish Mills manager John Lowe.

"We have second- and third-generation people working for us. We still have the same number of people working for us, we still have the same amount of equipment and we still log the same volume."

According to Lowe, the biggest difference between past and present is profit - while the cost of logging has gone up, the price of logs has generally stayed the same.

"Squamish Mills hasn't made a profit in three years but we won't shut down because we have families who depend on us," said Lowe.

"We're all part of Squamish Mills and Squamish Mills is part of the Squamish family."

Squamish Mills, established in 1951 by forestry pioneer John Drenka, played a pivotal role in establishing the Squamish community - it built the original swimming pool behind the school, donated its equipment to build the Squamish Valley Golf Course and contributed large amounts of money to build the civic centre.

"Pretty much every convenience that Squamish has today was contributed to by the logging companies," he said.

But Lowe says the company's contributions didn't end there. The benefits are ongoing, he said.

"It provides foundation jobs - jobs that pay $50,000 plus a year that a family can live on," Lowe said. "It provides benefits to the community in charitable donations to the Lions Club, Rotary, sports teams and other programs."

He added that Squamish Mills' impact extends much further than donations and salaries - various businesses in town are suppliers to Squamish Mills, from Home Hardware to the Village Green Garden Centre to Billie's Bouquet.

However, as the non-existent profit period continues, officials at Squamish Mills are concerned with re-establishing the company's business as a profitable enterprise and to do so, the company is looking for some concessions from the government.

"There was a real tough time in the '80s and the government relented at that time and gave us what they called standing green export, which certainly helped," said Lowe.

Standing green export is the concession Squamish Mills is looking for again. Its re-establishment would allow logging companies avoid the expensive delays they currently face because of the government's surplus criteria system.

The current system requires logging companies to advertise any log boom on the local market for at least two weeks before they are allowed to export the timber. According to Lowe, that creates massive delays in a slow local market.

"The downside of the surplus criteria for a logger is it holds up our money," he said. "We have to get the logs, build them up on the dryland sort until we have enough of one type for a boom, build the boom and then offer it on the local market for two weeks.

"Only once it clears advertising can we start to look for a customer elsewhere."

Once an overseas purchaser is found, the logs need to be put in the water and wait for the ship to arrive before payment is received.

"So you have three months of your money tied up," Lowe said.

Also, if the boom is going to China, which has become an important market over the past few years, it needs to receive phytosanitary certification two weeks before the ship arrives, meaning Canadian government officials need to inspect the boom to ensure there is no rot in the wood.

The certification process costs the logging company time and money and if there's any rot, the entire boom is rejected.

"So depending on the amount of time it's been sitting waiting for the advertisement period and to find a customer, it becomes an expensive liability," Lowe said.

If the government allowed standing green export, the logging companies could sell the timber while it's still standing in the forest.

Lowe said in the 1980s it was a win-win situation for everyone because it reduces delays for companies and because of the money saved, logging companies can offer subsidized prices for the local market.

"We've been applying for standing green for hemlock in this area for a while and the government is reluctant to do it," he said.

"They think you're exporting jobs when in fact you're not - you're actually exporting a product, and your exporting is allowing you to give logs at low cost to the local mills so they can work at a price they can afford."

Lowe said the most Squamish Mills ever exported was 18 per cent of its total cut.

"A lot of people think export's a dirty word, but that percentage of volume of export gives you double that money that you get on the local market, which allows you to provide wood to the local market at a lower price."

The local market is also guaranteed the best grade of wood at the subsidized prices because standing green export comes with restrictions. The top grade of wood - normally A, B and C - has to be sold locally.

"In the '80s when we did the export, the mills were booming here because they could get the high-grade wood at a lower price," Lowe said. "And we could log it because we were getting that 20 per cent at a higher rate that helped pay for us to go logging.

"People don't realize that but it really works for the economy."

Lowe said being granted the standing green export concession "would make a huge difference." He said logging companies in and around Squamish deserve more support from their community.

"The logging companies in the area are very community minded, provide a lot to the community willingly and feel that they're part of the community," he said.

"In my estimation it's no different than farming. We have a rotation - it's a 50-year rotation and it's going to provide jobs and security for this area regardless of anything else."

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