The federal government has announced it is investing about $12 million in British Columbia's forestry sector, days after other tariff-hit Canadian industries were offered $1.5 billion in support.

Energy Minister Tim Hodgson made the announcement at Terminal Forest Products, a sawmill in Richmond, B.C., on Thursday.

Hodgson said the funding will prioritize 14 projects that use low-carbon wood technology, expand the use of mass timber in construction, or are Indigenous operated.

He said the investment is part of Canada's strategy to diversify its wood production and become less reliant on the United States amid its "unjust" tariffs.

"What we've been doing is working with the industry, working with provinces, working with Indigenous communities on a transformation," Hodgson said, adding the goal is to become less reliant on commodity products.


British Columbia Premier David Eby was critical of the federal government after last week's tariff relief omitted the lumber industry, which has been combating U.S. duties and fees for decades.

Eby said he was concerned that it was prioritizing other sectors of the economy over B.C.'s forest sector.

Asked about the size of the funding in light of the $1.5-billion commitment to sectors including steel, aluminum and copper last week, Hodgson said his government has previously committed $2.5 billion in support for the forestry sector.

Commitments include $500 million each for programs that supply softwood lumber loan guarantees and tariff loans for firms facing liquidity shortfalls.

The government earmarked another $500 million for forest sector funding programs that prioritize wood-based building products and Indigenous-led projects, among other initiatives.

Hodgson said the government is working "constructively" with the province.

B.C.'s Forests Minister Ravi Parmar said in a statement Thursday that the province wants to work with the federal government to transform the forestry sector, but both parties need to do their part.

"While the investments announced today are a step in the right direction, we urge the federal government to bring the same level of commitment to forestry as they have shown to other sectors," he said.

A spokesperson for federal Conservative Leader Pierre Poilievre's office said the Liberal government has "abandoned" plans to get a deal for forestry workers as Canadian industries struggle under U.S. tariffs.

"After 11 years and four White House administrations, the Liberals have failed to get a softwood lumber deal with the Americans. The previous Conservative government negotiated a deal within its first 80 days," spokesperson Sam Lilly said in an email Thursday.

Source: mfat.govt.nz