The District of Vanderhoof is now experiencing the full financial repercussions of Canfor’s closure of the Plateau sawmill in 2024, leading to a significant decline in tax revenue for 2026. Canfor shut down sawmills in Vanderhoof and Fort St. John, B.C., in December 2024, citing challenges such as regulatory complexities, high operating costs, and limited access to economically viable timber.
Kevin Moutray, the mayor of Vanderhoof, a community in B.C.’s northern Interior, expressed concern over a $580,000 loss in tax revenue, equivalent to 11% of the district’s tax base, due to the mill closure. The forestry sector in British Columbia has witnessed a series of mill closures in recent years, attributed to various factors like escalating U.S. duties on lumber imports, beetle infestations, and wildfires, resulting in substantial job losses across the province.
Notable closures include West Fraser ending sawmill operations in 100 Mile House and Domtar permanently shutting down its plump mill in Crofton on Vancouver Island. Kurt Niquidet, President of the B.C. Lumber Trade Council, emphasized the need for proactive measures in communities affected by mill closures. Gary Bull, a professor emeritus at the University of British Columbia, highlighted the importance of local leadership in facilitating economic transitions and stability in the face of industry downturns.
Mayor Moutray mentioned that Vanderhoof officials are actively evaluating the short and long-term financial impacts of the closure and exploring strategies to lessen the repercussions. The district had initiated an industrial reserve fund following a previous mill closure, aiming to cushion the immediate impact of such economic shocks. Vanderhoof’s focus remains on minimizing tax hikes for residents and businesses while ensuring continuity of essential services.
Efforts are underway to manage the financial strain, with a commitment to transparency about the budget challenges faced by the community. CBC News has contacted the Ministry of Forests and Canfor for their input on the situation.