B.C. stumpage fees put on hold

The B.C. government is deferring its stumpage fees to help forest companies get through the COVID-19 crisis.

Premier John Horgan said the fees operators pay the province to harvest, buy or sell trees from Crown land, are being deferred for three months.

“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 Horgan. “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 with interest is available to Tree Farm Licence, Replaceable Forest Licence and First Nations’ Woodlands Licence holders who are in good financial standing with the province. They also must be following through on their reforesting obligations.

Horgan said the deferral will leave eligible companies with an estimated $80 million so they can pay employees, contractors and other bills needed to keep their doors open or reopen them faster.

“We’re building on other measures we’ve taken to help the forest sector navigate this crisis,” said Doug Donaldson, Minister of Forests, Lands, Natural Resource Operations and Rural Development. “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.”