Minister Donaldson Details the Solutions for Contractors’ Sustainability
January 18, 2019 – Vancouver – Today, Minister Donaldson shared details for implementing the recommendations from the Contractor Sustainability Review including the elimination of the fair market rate test from the Timber Harvesting Contractor and Sub-contractor regulation (referred to by the forestry industry as Bill 13).
These details expand on Premier Horgan’s announcement yesterday. The Minister announced the details during his address to a full room of 350 timber harvesting contractors at the Truck Logger Association’s 76th annual Convention & Trade Show.
The fair market rate test is a forestry-industry method used to settle rate disputes between contractors and licensees, which have caused lengthy delays in reaching a settlement, contributing to the inability to operate sustainably their businesses. Following extensive consultation in an effort to ensure the forest industry continues operating, the government’s decision to eliminate the method in favour of models and experts will streamline the process that used to take months and years, which should now take up to a maximum of 14 days.
“Elimination of the fair market rate test is a monumental change for our industry, allowing contractors to more equitably share in the value of the timber resource,” says David Elstone, executive director of the Truck Loggers Association. “It will result in a fundamental shift in the relationships between contractors and their employers across the province.”
Today, Minister Donaldson explained that a six-month process to make the legislative changes will involve continued industry stakeholder consultations, leading to implementation in the fall.
“As a contractor who operates under the Timber Harvesting Contractor and Sub Contractor regulation, these changes should have a direct impact on my business’ ability to be more sustainable,” says Rob Wood, President of Holbrook Dyson Logging in Campbell River. “While a small percentage of the industry operates under this regulation, I believe these changes will influence all non-Bill 13 contractors across the province as well.”
About the TLA: The TLA represents 500+ independent forest contractors and their suppliers operating in British Columbia. Our membership supports thousands of workers and, along with other independent contractors, accounts for close to 90 per cent of the trees harvested in BC. The TLA promotes a thriving, sustainable forest industry in BC.
Jennifer Kramer, Director of Communications
Truck Loggers Association