The District of Vanderhoof is now experiencing the full financial repercussions of the closure of Canfor’s Plateau sawmill in 2024, leading to a significant decline in tax revenue for the year 2026. Canfor shut down its sawmills in Vanderhoof and Fort St. John, British Columbia, in December 2024 due to challenges such as increasing regulatory complexities, high operational expenses, and difficulties in accessing economically viable timber.
Kevin Moutray, the mayor of Vanderhoof, a community in B.C.’s northern Interior with a population of around 4,300 residents located 100 kilometers west of Prince George, revealed that the district is anticipating a loss of $580,000 in tax income, representing 11% of its tax base, following the mill closure. Moutray emphasized the likelihood of tough decisions and potential budget adjustments to address the financial strain caused by the closure.
The forestry sector in British Columbia has witnessed a series of mill closures in recent years, with external factors like escalating U.S. duties on softwood lumber imports, significant beetle infestation, and devastating wildfires contributing to job losses across the province. Notable closures include West Fraser terminating its sawmill operations in 100 Mile House and Domtar permanently shutting down its plump mill in Crofton on Vancouver Island.
Kurt Niquidet, the president of the B.C. Lumber Trade Council and chief economist at the B.C. Council of Forest Industries, highlighted the challenges faced by communities impacted by mill closures, stressing the importance of local leadership in facilitating transitions to new employment opportunities and economic stability.
Gary Bull, a professor emeritus at the University of British Columbia’s faculty of forestry and environmental stewardship, emphasized the crucial role of local leadership in helping communities affected by mill closures attract investments for economic diversification and social stability amidst ongoing industry challenges.
Mayor Moutray mentioned that the District of Vanderhoof is actively evaluating both short-term and long-term financial implications of the closure, exploring various strategies to lessen its impact. He mentioned the establishment of an industrial reserve fund following a previous mill closure to help cushion the financial blow gradually. Maintaining essential services and operational activities while minimizing tax hikes for residents and businesses remains a top priority for the district.
Efforts are underway to mitigate the financial impact of the mill closure, with a focus on prudent financial management to sustain vital community services. CBC News has sought comments from the Ministry of Forests and Canfor regarding the situation.