Premier's Economic Update Highlights Progress Amid Forestry Sector Challenges
Premier David Eby delivered a keynote address at the Northern Resource Forum in Prince George this week, presenting what he described as evidence of progress on economic commitments made during his previous appearance at the annual gathering. The premier's speech focused on broader economic development while acknowledging persistent difficulties within British Columbia's forestry sector.
Commitments and Progress Reports
"Last year, when I stood here, I made a clear commitment," Eby told industry and community representatives gathered for the forum. "I said our government would refocus on economic growth, that we would work with you on responsible resource development. I said that as times changed, we as a government would change too."
The premier acknowledged that some attendees might have questioned the seriousness of these commitments initially. "I am sure some of you wondered how serious I was," Eby stated. "But I hope we have shown over the past year just how serious we are."
Mixed Results Across Resource Sectors
Eby pointed to measurable progress in several resource development areas, including mining operations, liquefied natural gas projects, and electricity infrastructure development. These sectors have shown tangible advancement under current government policies and initiatives.
However, the premier offered a markedly different assessment when addressing the forestry industry, which he described as "the hardest challenge" currently facing the provincial government. This acknowledgment came despite Eby's previous commitment to increasing annual harvest volumes across British Columbia's forest lands.
Forestry Targets and Realities
During last year's resource forum, Eby had directed Forest Minister Ravi Parmar to work toward achieving an annual harvest target of 45 million cubic metres. Current government data reveals the province is moving in the opposite direction, with harvest volumes declining from 30 million cubic metres to approximately 29 million cubic metres.
Eby highlighted the government's forest landscape planning initiative during his address, noting that these plans are being developed through partnerships with First Nations communities, industry representatives, and local municipalities. "When we do this work, the results are meaningful," the premier asserted, specifically citing the completed landscape plan for the Nimpkish Valley near Port McNeill on northern Vancouver Island.
Mill Closure Undermines Optimistic Narrative
Shortly after Eby concluded his presentation, news emerged of another mill closure in the very region he had referenced as a success story. The Atli wood-chip plant in Beaver Cove near Port McNeill announced it would cease operations in March, citing "ongoing structural changes affecting B.C.'s coastal forest sector."
The closure will affect a workforce of more than 70 employees, with the chipping plant itself employing up to 10 full-time workers. This represents a significant economic impact on Beaver Cove, a small community heavily dependent on forestry operations. Notably, the Atli facility is majority-owned by the 'Namgis First Nation, which participated in developing the forest landscape plan celebrated by Premier Eby during his forum address.
Government Response to Sector Challenges
The Ministry of Forests issued a statement acknowledging the Atli closure while expressing appreciation for the 'Namgis First Nation's partnership in landscape planning initiatives. The statement further elaborated on the complex challenges facing British Columbia's forestry industry.
"This business decision underscores the pressures our forestry sector has been facing — volatile markets, low pulp prices, shrinking fibre supply, climate-driven wildfires and punishing duties and tariffs from the U.S. administration," the ministry statement explained. "These realities show why we must keep driving transformation in this sector, which remains vital to B.C.'s economy."
Broader Economic Context
While forestry continues to struggle, other aspects of British Columbia's resource economy show more positive indicators. The Harmac pulp mill on Vancouver Island continues to provide substantial economic benefits, with estimates suggesting approximately $1 billion annually in employment, spinoff industries, local spending, and tax revenues.
Eby's address ultimately presented a nuanced picture of provincial economic development — one where progress in certain sectors contrasts sharply with persistent structural challenges in others, particularly within the historically significant forestry industry that has long formed a cornerstone of British Columbia's economic identity.
