B.C. Ministry of Forests Audits $12M Public Grant Allocation Following Interior Mill Suspension

KELOWNA, BC — The British Columbia Ministry of Forests initiated an urgent compliance audit on Saturday examining over $12 million in provincial forestry transition grants awarded to major timber operators over the past three years, following the unexpected suspension of mill operations in the Southern Interior.

Grant Covenants and Workforce Commitments

The funding, disbursed through the BC Manufacturing Jobs Fund (BCMJF), was provided to support high-value mass timber production lines and advanced wood manufacturing on the condition of maintaining designated manufacturing payroll thresholds. However, recent curtailments left more than 140 workers furloughed while equipment purchased under public co-funding sat idle.

Ministry auditors are reviewing whether clawback provisions can be triggered under the funding agreements if facility owners fail to restore full operational shifts or transfer equipment to competitor facilities.

Community Impact and Union Response

Forestry communities across the Interior, including Merritt, Princeton, and Summerland, have faced compounding challenges from timber supply reductions, wildfire salvage depletion, and escalating U.S. softwood lumber duties.

The Public and Private Workers of Canada (PPWC) and United Steelworkers praised the audit, arguing that public funds must be tied to strict job retention guarantees rather than unconditional corporate subsidies.

Legislative Review and Findings

The Ministry of Forests confirmed that preliminary audit findings will be delivered to the Minister and published in a public accountability bulletin by mid-October.