A confidential report by the provincial government warns the mountain pine beetle epidemic could wreak economic and social havoc on communities in British Columbia's Interior and cost the region thousands of jobs in the coming years.

Recent forest fires and the mountain pine beetle infestation are amplifying flooding in the southern interior of B.C, according to one hydrologist. That, combined with an above average snowpack, warm temperatures and heavy rain has created a perfect storm of flooding conditions.

A special government committee will examine British Columbia's timber supply after a leaked report warned about thousands of job losses due to a declining amount of wood caused by the ravages of the pine beetle epidemic.