BC Conservative Leader Eyes Forestry and LNG for Economic Recovery Amid Skepticism

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Lorne Doerkson, interim leader of the BC Conservatives, emphasizes the potential of the forestry sector and LNG for economic growth amidst skepticism from opponents and industry experts.

In Vancouver, Lorne Doerkson, the interim leader of the British Columbia Conservative party, is banking on the province's struggling forestry sector to support his party's economic growth strategy as they approach the final days of the election campaign. Doerkson recalled the forestry sector's significant historical contributions to the province’s economy, indicating that it could once again play a crucial role in revitalizing British Columbia's financial landscape. He stated in a recent interview, 'That infrastructure is there, it’s in place and we can absolutely get back to business in that sector almost immediately.' Alongside forestry, Doerkson also highlighted the gas sector as another vital area for growth, a sentiment echoed by NDP Leader David Eby as both parties vie for voter support ahead of the upcoming election on Saturday.
The Conservatives have set ambitious growth targets, projecting an increase of 3.2 percent by 2029, which surpasses the growth forecasts of the NDP and the Bank of Canada. However, the New Democratic Party has criticized these projections as unrealistic, particularly in light of the projected deficit reduction from $14 billion to $10.8 billion by 2030. Doerkson dismissed doubts regarding these figures, expressing confidence in the province's potential, 'I don’t feel anything but bullish about British Columbia right now.'
The forestry industry, however, has faced significant challenges in recent years, including U.S. lumber duties and fiber shortages, leading to numerous mill closures and temporary shutdowns. While the NDP has not commented directly on Doerkson's assertions, a background document shared with the media last week pointed out that he cannot alter the current U.S. softwood tariffs that are nearing 35 percent, nor can he change low lumber prices or the depletion of the most profitable timber stands. Kim Haakstad, president and CEO of the B.C. Council of Forest Industries, noted that while she is not an economist, raising the annual allowable cut from just under 30 million cubic meters to 45 million could potentially generate an additional $600 million in revenue. She emphasized the need for stability in an industry that has seen over 20 mill closures since 2023, stating, 'We would love to get to a place of growth.'
Despite her optimism regarding future contributions from the forestry sector, Haakstad acknowledged that expecting it to return to its historical peak in the 1960s is unrealistic. She mentioned that the industry possesses idle capacity and is eager to resume operations. Harry Nelson, a professor at the University of B.C.'s Department of Forest Resources Management, echoed this sentiment, suggesting that while the forestry sector may not reach its former heights, it could still play a role in economic growth if managed correctly.
The NDP has broadly challenged the Conservatives' growth estimates, with NDP candidate Adrian Dix arguing that it is unrealistic to expect major funding for new initiatives through a simple enhancement of resource development. BC Green Leader Emily Lowan has also pointed out that the forestry sector is facing limitations, stating, 'We’re out of trees and we’re out of runway.' She has called for a reevaluation of the natural resource sector, which contributes only 7.2 percent of the provincial GDP and 3.1 percent of jobs.
Haakstad has previously mentioned that the issues facing the forestry sector are not solely due to external tariffs but also stem from 'homegrown challenges' related to regulatory burdens. In his interview, Doerkson also pointed to the gas industry as a significant growth opportunity that has not been fully utilized under NDP governance, claiming, 'This is a business that speaks in trillions of dollars when you talk to them.' He emphasized the potential in the north, referring to the LNG sector as a huge opportunity that has not been seen in a decade.
Both major political parties are looking to LNG and mining—one a relatively new sector and the other a traditional industry—as key drivers for the provincial economy's revival. However, the future of the forestry sector remains uncertain. Haakstad remarked, 'I don’t think anyone believes that the forest industry is going to go back to the 1940s, 1950s, and 1960s.' She emphasized that the focus should be on future opportunities, particularly in secondary manufacturing of modern building materials, while acknowledging the unpredictability of whether closed mills will reopen. 'Hard to predict, but I think we really need to focus on improving competitiveness,' she concluded.

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