Amidst rural funding controversy, John Horgan turns to struggling forestry towns for support

Facing criticism over the suspension of a $25-million grant program aimed at helping B.C.'s rural communities, Premier John Horgan said reporters should talk to mayors in Mackenzie and Fort St. James to find out what they think about the decision to redirect the money into a $69-million forest worker support package.

"There is an emergency in communities in the Interior," Horgan said last week in response to criticism from B.C. Liberal leader Andrew Wilkinson.

"I suggest you go talk to the mayor of Mackenzie, go talk to the mayor of Fort St. James, and ask them how they feel about repurposing resources to keep people in their town."

While those mayors have indeed said they appreciate the relief money, other communities in the B.C. Interior are still reeling from the news — and asking the government to reconsider — saying the crisis in forestry makes the Rural Dividend Fund even more critical.

The B.C. Rural Dividend is a $25-million grant program aimed at helping communities of 25,000 people or less "strengthen and diversify their local economies," according to the B.C. Government's website. Eligible projects range from skills training to infrastructure to strategic planning.

This year's applicants have been told they won't be getting any money, as the province instead offers forestry relief, in the form of early retirement bridging, skills training and other programs to people affected by a spate of mill closures and curtailments across the province.

"The $25 million dollars in the Rural Development Fund is going toward rural communities to keep people home," Horgan said.

'Eggs in one basket'

Mackenzie mayor Joan Atkinson said while she understands the frustration expressed by her peers, she is grateful for the province's support, particularly around skills training that will help keep people in the community.

However, she noted Mackenzie was among the communities that had been counting on rural dividend funding to aid in economic diversification efforts — namely, the development of more tourism options such as an upgraded ski hill and golf course.

"Mackenzie is very forestry dependent, so … [we want] not to have all of our eggs in one basket," she said.

Fort St. James mayor Bev Playfair was also supportive of the government's decision, as was Quesnel mayor Bob Simpson.

"What I think the government's tried to do is balance the fact that there's only one taxpayer," Simpson said.

"They're in the middle of the budget cycle, the federal government is in an election cycle, so they've cobbled together funding... to try and address the current crisis. And I think it's the right thing to do."

'Robbing Peter to pay Paul'

But other local leaders said the it didn't make sense to fund the forestry package using money that is already meant to help small communities across the province. In Williams Lake, Mayor Walt Cobb called it "Robbing Peter to pay Paul."

Likewise, Northern Rockies Regional Municipality councillor Danny Soles said it was ironic his community wouldn't be able to access funding, given that it is still feeling the effects of forestry job losses from a decade ago.

"If you want to know what a community looks like that loses all of its industry, come look at Northern Rockies sometime," he said. "We need things like the [rural development fund] for economic development."

On Friday, delegates at the Union of B.C. Municipalities voted in support of a Regional District of Kootenay Boundary motion to restore the rural dividend grant funding, and take the money for forestry support out of other pots.

Addressing delegates the same day, Horgan promised the grants will return in the near future.

"The program was curtailed — not ended, curtailed," he said. "It will be back."

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