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Temporary curtailment at Brink Forest products not entirely due to U.S. countervail duty
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Prince George, BC –
The temporary production curtailment at Brink Forest Products, while related
to the current softwood lumber dispute with the U.S., has more to do with natural
market cycles, according to John Brink, President and founder of the Prince
George secondary manufacturer.
Mr. Brink notes, “We purchase our raw materials, which is imperfect lumber
from other sawmills, at fair market value.” “Unfortunately, there
is a shortage of product we need for our mill arising from production curtailments
by primary mills over the past few months”, added Mr. Brink. He noted that
a similar cycle occurred last September, when a temporary curtailment was necessary
to compensate for a shortage of raw material.
The Prince George lumber entrepreneur says he is optimistic that his mill will
be exempted from the countervail duty that has triggered a number of shutdowns
– particularly at the coast.
Brink Forest Products Ltd. has applied for an exemption from the recently imposed
19.3-percent countervail duty on the basis that raw materials are purchased
at fair market value, there are no payments for stumpage and no government subsidies.
Mr. Brink says the Federal government has set a September 5th deadline to receive
applications for exemption. The Canadian government will process the applications
and table them with the U.S. Department of Commerce by September 28th. “Then”,
adds Mr. Brink, “It’s a waiting game.”
Mr. Brink has long been critical of the late start by the Federal government
in managing the softwood lumber dispute. He says Prime Minister Chretien and
Trade Minister Pettigrew are now on the right track – and have done the
right thing by making softwood lumber the highest priority between Ottawa and
the White House. “It’s too bad it’s as late in the game as it
is,” said Mr. Brink.
In February, John Brink warned that a countervailing duty could eliminate value-added
manufacturing in northern BC and the industry might be forced to move south
of the border. “I have said over and over again that the future of northern
BC is in a vibrant value-added forest industry that is able to utilize the excellent
fibre quality of the north, its strategic location to the markets, its well
established distribution channels and its pool of well trained employees. But
firstly, we must have access to the market,” says John.
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