The financial repercussions of Canfor’s closure of the 2024 Plateau sawmill are now being keenly felt by the District of Vanderhoof, leading to a significant decline in tax revenue for 2026. Canfor shuttered its sawmills in both Vanderhoof and Fort St. John in December 2024 due to challenges such as increasing regulatory complexities, high operational costs, and difficulties in accessing economically viable timber.
Kevin Moutray, the mayor of Vanderhoof, expressed concerns over the $580,000 tax revenue loss, which accounts for 11% of the district’s tax base. This loss may necessitate difficult decisions and potential budget adjustments to address the financial shortfall.
The forestry sector in British Columbia has witnessed a series of mill closures in recent years, exacerbated by escalating U.S. duties on softwood lumber imports, beetle infestations, and wildfires. These closures, including West Fraser and Domtar operations, have resulted in significant job losses across the province.
Local leadership is deemed crucial in navigating the challenges posed by mill closures, with a focus on attracting investments to facilitate economic diversification and stability. Gary Bull, a professor emeritus at the University of British Columbia, emphasized the importance of community leaders in facilitating transitions to new employment opportunities.
Mayor Moutray highlighted ongoing assessments of the financial impacts and strategies to mitigate them, including leveraging an industrial reserve fund established after previous closures. The district aims to minimize tax increases while ensuring continued support for essential services.
Efforts are underway to address the economic challenges posed by the mill closure in Vanderhoof, with a focus on maintaining public services and fiscal responsibility. CBC News has sought comments from the Ministry of Forests and Canfor regarding the situation.
