Thank you, Mr. Chair and members of the committee, for the opportunity to speak today.
My name is Kermit Dahl. I'm the mayor of the City of Campbell River, on northern Vancouver Island. I also serve as chair of the Campbell River business advisory team, originally formed in response to the U.S. tariffs, but now a strong voice for natural resource communities. In addition, I represent the Alliance of Resource Communities, a coalition of municipal leaders advocating for sustainable resource development and highlighting how provincial and federal policies are impacting investment and jobs.
Campbell River is the forestry hub of north Vancouver Island, supporting a significant share of harvesting operations. Our community feels every ripple in the forestry sector, whether it's growth or decline. Unfortunately, across British Columbia, we are witnessing a systemic dismantling of a once-thriving industry. Ten years ago, forestry contributed roughly $1.5 billion in stumpage fees to the provincial government. Today, that figure has fallen to about $550 million, as reported in the 2024-25 provincial budget.
The coastal allowable annual cut, which was set at 14.4 million cubic metres, has seen harvesting of just over 4.5 million cubic metres to date. The provincial allowable annual cut follows a similar sharp downward trajectory. Both economics and provincial and federal policies have been identified as the chief causes of this lack of harvesting.
Since 2018, nine coastal mills have closed. This loss of capacity is driven by a combination of significant provincial and federal policy constraints, U.S. softwood lumber duties and recent section 232 tariffs, all of which have weakened competitiveness and investor confidence. Since 2022, the forestry sector has lost roughly 5,400 jobs, yet 40% of coastal pulp mill fibre is now being imported from the United States due to a chip supply shortage created by eliminating many of the mills in our coastal area.
This is not just an abstract issue. It affects real businesses and families. In my own company, when harvesting slows, revenue drops dramatically. It impacts local spending and community stability. When a contractor can't keep his crews working, those families face uncertainty, and that uncertainty ripples through every sector, from retail to housing. These are not statistics; they represent livelihoods, mortgages and futures.
Forestry isn't the only sector facing challenges. Mining, energy and aquaculture are in the same situation. Companies are dealing with too many overlapping rules, long and unpredictable approval processes and rising costs that make it hard to invest. Aquaculture businesses worry about whether they'll keep their licences and about new federal rules that create uncertainty for coastal communities.
These delays aren't about protecting the environment. They're about complicated bureaucracy and unclear decision-making. Indigenous partnerships, which should be central to development, are slowed by confusing jurisdictions and inconsistent consultation, leaving communities frustrated and opportunities lost. Meanwhile, other countries, like those in Scandinavia, South America and the U.S., are moving faster and are attracting investment and skilled workers. Every month of delay means fewer jobs, less tax revenue and less confidence in Canada's ability to compete globally.
The 2025 federal budget includes welcome commitments of $1.2 billion to forestry infrastructure and $13 billion for construction. However, in British Columbia, uncertainty around fibre access and regulatory instability means companies may hesitate to invest. Our province could lead Canada's economic renewal through forestry and other resource industries, but that requires coordinated federal-provincial leadership to restore confidence. Without that alignment, these federal investments risk being underutilized, leaving communities like mine without the opportunity to benefit from national growth initiatives.
British Columbians overwhelmingly support responsible resource development. To sustain that trust and to strengthen the strategic industry, we need progress on four fronts.
We need a fair, long-term softwood lumber agreement with the United States to reduce uncertainty and to stabilize trade.
We need streamlined regulatory processes that maintain high environmental standards while eliminating duplication and delay. Right now, companies face overlapping requirements that add cost without improving outcomes.
We need timely and accessible federal support to stabilize operations and attract new investment. Programs must be designed for speed and clarity because when mills close, communities don't have years to wait.
We need to help local economies access and develop new markets.
Forestry has long been a cornerstone of British Columbia's economy and can remain a pillar of Canada's low-carbon future, but only if we create the conditions for success. This is about more than economics. It's about sustaining rural communities, supporting indigenous partnerships and ensuring Canada remains competitive in global markets. If we fail to act, we risk losing not only jobs but the expertise and infrastructure that underpins sustainable resource development.
Thank you for your time.