VICTORIA -- The B.C. government is providing some relief to the struggling forestry industry, and the communities that rely on it, by deferring one of the fees it collects from the industry for three months.
The B.C. Ministry of Forests announced Thursday it would defer the stumpage fees paid by companies operating on Crown land amid the COVID-19 pandemic.
The province estimates the move will provide eligible companies with approximately $80 million in deferred payments and interest to pass on to employees and contractors.
“As government, we had already taken a number of steps to help forest communities and the industry because they were facing tough times even before the COVID-19 crisis came along,” said Premier John Horgan in a statement Thursday.
“Now, we’re deferring stumpage fees so companies can maintain their financial liquidity, which will not only benefit them, but ideally, forest workers and communities as well.”
The deferral is available to licensed tree farms, holders of Replaceable Forest Licences and First Nations’ Woodlands Licences that are in good standing with the province, according to the ministry.
All eligible companies must also following through on reforesting obligations.
“What we’re announcing today may allow some companies to get back online sooner rather than later when we get through the situation we’re in now – or it may save other companies from having to shut down altogether,” said Forestry Minister Doug Donaldson.
A representative for the United Steelworkers union, which represents many forestry workers in British Columbia, said the union welcomed the deferral announcement.
