(Vancouver, BC) – Kim Haakstad, President & CEO of the BC Council of Forest Industries (COFI), issued the following statement today in response to the federal Budget 2026:
“We welcome the federal government’s commitment of $6.5 billion in new funding over six years to the forest sector in Budget 2026. This support recognizes forestry’s importance to Canada’s economy and comes at a critical time for workers, businesses and communities facing a deepening crisis in the sector.
We look forward to working with the federal government on program details to ensure funding supports the capital investments needed to maintain existing operations, modernize facilities and expand the development of innovative forest products.
A strong primary manufacturing sector is the foundation for innovation and diversification across the forest products value chain. Keeping sawmills and pulp mills operating depends on reliable, economic access to wood. These operations provide the infrastructure, expertise and industrial capacity needed for further processing and new investment, with sawmills playing a particularly important role in supplying the inputs that support secondary manufacturing.
With the new funding beginning in 2027–28, timely implementation to address the sector’s immediate pressures is essential. Companies need improved conditions to keep operating today so they can invest in the opportunities of tomorrow.
Funding alone, however, cannot resolve the strain on our competitiveness. We need a clear strategy with concrete actions and timelines to get more wood moving, attract investment and protect forestry jobs and communities.
The forthcoming federal Forest Sector Strategy should prioritize reducing regulatory duplication, streamlining permitting and strengthening federal-provincial coordination to give operators and investors greater certainty. These measures must complement provincial efforts to improve access to affordable wood supply and restore competitiveness across BC’s forest sector.
Canada has the resources, expertise and innovation to lead the world in sustainable forest products. With the right policy conditions, our forest sector can deliver good jobs, strong communities and solutions to some of Canada’s biggest priorities, from housing and climate resilience to economic growth.”
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Media Contact
Travis Joern, Director of Communications, COFI
Joern@cofi.org