Crofton Mill Closure Signals Urgent Need for Policy Change in BC

The closure of the Crofton pulp mill in British Columbia has raised alarm bells across the province, highlighting a critical need for policy reevaluation. This decision, anticipated by local mayors and community leaders, reflects years of provincial policies that have failed to support the forestry industry, which is vital to many local economies.

The Crofton mill, which relied on 30 percent of its fibre from the United States, could not sustain operations despite this external support. The situation underscores a significant issue within British Columbia, where a mill situated near one of the world’s most productive forest areas has to import wood. This indicates a systemic failure in local forestry management rather than mere bad luck.

Local impacts of the closure will be profound. The mill, alongside two Western Forest Products sawmills, contributed nearly $4.7 million in property taxes to North Cowichan in 2020. This revenue is equivalent to the tax contributions of over 1,150 homeowners, making it an indispensable part of the community’s financial structure.

Without this tax base, municipalities are left to grapple with the repercussions. North Cowichan had already projected a tax increase of approximately 9.5 percent to maintain essential services. The shutdown of Crofton now means fewer industrial taxpayers, placing a heavier burden on residential properties and increasing demands on local governments to uphold services with diminished resources.

The forestry sector plays a crucial role in sustaining local economies. Average salaries in this industry exceed $106,000 annually, significantly above the provincial average of $73,000. Losing these jobs will inevitably lead to a decline in community prosperity, impacting small businesses that rely on stable income streams.

Warnings about the precarious state of the forestry industry in British Columbia have been voiced for years. The BC Pulp & Paper Coalition previously cautioned that without commercially viable alternatives to old-growth supply, mills would face inevitable closures. The closure of the Crofton mill serves as a stark confirmation of these predictions, demonstrating the real consequences of ignoring expert advice and failing to address ineffective policies.

Public sentiment on Vancouver Island reveals a growing frustration with the current resource policy discourse. Many residents describe it as non-cooperative and politically charged, often prioritizing activist agendas over the economic foundations that support local communities.

The government has frequently mentioned transitioning to a “new economy,” but such shifts have tangible consequences for municipalities. When a community’s tax base erodes without adequate replacements, it creates an unfunded civic crisis, jeopardizing essential services like policing and infrastructure.

Communities such as Campbell River, North Cowichan, and Port Alberni have been urged to remain resilient, but slogans do not substitute for the functioning industries that fuel economic stability. Without a viable forestry sector, the path to community decline becomes increasingly certain.

There remains an opportunity for British Columbia to change course. The forestry industry is not a relic; it is a sustainable sector capable of supporting the province for the next half-century with proper management. However, for this to happen, provincial leaders must confront the reality that current policies have forced mills to depend on imports for survival.

The closure of the Crofton mill is not an isolated incident; it represents a broader trend of preventable closures. Local governments are calling for urgent reforms that prioritize the interests of working families and the sustainability of the forestry sector.

The Alliance of Resource Communities (ARC) is advocating for responsible natural resource development, emphasizing the need for policies that strengthen communities and support local families. As British Columbia faces the fallout of the Crofton closure, it must heed this warning and act decisively to prevent further economic decline.