The B.C. government鈥檚 move to restructure Catalyst Paper鈥檚 pension obligations is only the start of a long-term restructuring of the forest industry, Premier John Horgan says.

The immediate threat is the imposition of anti-dumping duties totalling 22 per cent that took effect in April, which Horgan called 鈥渁n assault on our industries鈥� and unfair trade practices by the U.S.

鈥淲e鈥檝e been meeting with Catalyst and the communities they operate in, Powell River, Crofton, North Cowichan and Port Alberni, since April when we held a conference here with local MLAs,鈥� Horgan told reporters at the B.C. legislature Monday.

鈥淏ut there are also underlying issues when it comes to pulp production in British Columbia, and the primary issue is access to fibre. As we鈥檝e seen an increase in the export of raw logs, as we鈥檝e seen a decline in the number of sawmills, which means there are fewer chips, there鈥檚 less feedstock for the pulp sector. That鈥檚 one of the fundamental issues that existed prior to the tariff question coming forward.鈥�

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Horgan said the regulation change made Friday to extend Catalyst鈥檚 time to pay off a pension funding shortfall is designed to prevent a scenario faced by Sears employees in B.C. 鈥渨ho went to the bottom of the line when it came to addressing receivership.鈥�

Keeping pulp and paper mills from meeting a similar fate, as they struggle with the latest round of anti-dumping duties that protect U.S. mills from Canadian competition, is the immediate task. The latest duties target uncoated paper such as newsprint, and has raised protests from U.S. newspaper companies that it is pushing their costs higher.

B.C. trade officials expect that with the deteriorating trade relationship with the U.S. in recent months, tariffs on paper products could go even higher, up to 28.5 per cent, as early as August.

Catalyst moved in June to sell its U.S. mills to Nine Dragons Paper Ltd., a Hong Kong company. Catalyst indicated the sale eases the company鈥檚 debt position and allows it to focus on its B.C. operations, which employ 1,500 people.