NB Government invests $250 Million in Forestry

[SwampDonkey]

Province of NB invests $250 Million in a 5 year forestry program.  Also announced are reductions in stumpage fees by 25 % and increased silviculture funding on private woodlots.

CBC Story

[Scott]

I'm guessing those stumpage fee cuts are for crown land. Another sweetheart deal for the Irvings IMO.  >:( After reading the article I'm thinking that maybe I should set up a company once I get a little skidder.

[SwampDonkey]

Scott, I was also thinking the government is sweetening the deel for big industry. What should be happening is keep the royalties the same and the industry should be increasing the cutting rates they pay contractors. We need royalties to pay for health care and education. If they keep reducing taxes for industry they've got to make it up by increasing my income taxes. I looked at what they were boosting the private land silviculture. We had $8 million which translates to $40 million over 5 years. Now we have $42 million over 5 years which is only 5 % increase. We could use $60 million a 50 % increase. All that 5 % means is about 1 weeks extra work, big deel. The positive side of it is that it's over long term, where as before it was from year to year pending approval. The last two years they clawed back 10 %, so I guess it looks like 15 %.  Ain't government great with shuffling figures? :

[Scott]

 It's amazing what little work those guys will do and then go around with thier chests all puffed up shaking eachothers hands and patting eachother on the back. Irving was already getting quite a deal on crown land wood wasn't he? I heard from a logger friend that he doesn't pay stumpage on anything thats hauled treelength. I can't see that being true though. 

[SwampDonkey]

Yes they pay royalties on all the wood, no matter what form. You can get all kinds of stories from some of the loggers.  ;D But, it's quite common that alot of the mills are behind payment for royalty payments. Who knows how much Landegger duped the government, then there was Juniper Lumber who were known to be several months behind before the bankruptcy. Irving is also known to be several months behind payment with Sussex and other southern NB marketing boards. Some as much as $2 million where the marketing board is forced into a position to borrow money to pay producers at high rates of interest while the mills are often given forgiveable loans or at prime. Hmm a mill gets prime or par from government when they are behind payment, but the marketing board has to pay a premium rate to a bank, I don't get it.  :