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News
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Newly increased forestry fees hurting independent woods
contractors October 31, 2005
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Eddie Joyce, Opposition Forestry Critic and MHA for the District of Bay of
Islands, says he is concerned with a new government fee increase that is
negatively impacting logging contractors and sawmill operators in the
province. Government has recently announced a 20 per cent increase on
royalties and stumpage fees paid by contractors retroactive to April 1st,
2005. "Over the past several days, independent logging contractors and sawmill operators in the province have contacted our office expressing their concern regarding increased fees being charged by government," said Mr. Joyce. "These individuals had their permits already approved by government earlier this year, but they are now being asked to pay an extra 20 per cent on the previously agreed upon fees, a cost that will be retroactive to April 1st, 2005, on all of their previously cut wood. "Many of these contractors are disappointed that government increased these fees, but they are more concerned that these fees will be collected retroactive to April 1st. This decision will cost contractors thousands of dollars, money that they did not have set aside in their budgets to cover this unexpected fee increase. "These individuals are already facing higher fuel costs, increased maintenance costs, and a declining pulpwood market. Some contractors say this unexpected fee increase will force them out of business. This is unacceptable when a commercial cutting permit has already been issued which outlines the production volumes to be harvested, conditions for this harvest, and royalty rates and stumpage fees to be paid to government. Most of these contractors plan their costs and wood sales for the year on this permit that is supposed to be in place for a 12 month period. "I am calling on the Minister of Natural Resources to sit down with these contractors and get an accurate assessment of the financial condition of the industry and what, if any, increase the industry can withstand at this time to stay in business."
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