Q. Who can apply for FSPCF assistance?

• The Forestry Service Providers Compensation Fund was established to provide relief to Contractors that provided Forestry Services, as defined in the associated regulations, to Licensees that did not pay for those services because they became insolvent.

Q. How old is the oldest invoice that could be eligible for compensation?

• The Forestry Service Providers Compensation Fund became active on February 1, 2013.  Therefore, in order for an unpaid invoice to be eligible for compensation it must be the first unpaid invoice from the insolvent company, and at least some of the work must have been done after February 1, 2013.  Unpaid invoices that are dated before February 1, 2013 are not eligible.  If the first unpaid invoice is dated after February 1, 2013 and includes work from before February 1, 2013,  only work done after February 1, 2013 is eligible.

Q. How are “Forestry Services” defined for purposes of the FSPCF?

• Eligible services in respect of forest products means felling, bucking, yarding, skidding, processing, chipping, grinding, decking, loading, hauling, unloading, dryland sorting and logging road construction and maintenance and Silviculture Contractors’ work.  Providers of goods and services not listed above are not eligible for FSPCF assistance.

Q. What is the maximum amount that can be claimed?

• No claim can be greater than the amount of the first invoice for which there was a default, plus a further 30 days of unpaid services, to a maximum of the first 60 days of unpaid services.

Q. Are employees of insolvent licensees eligible for compensation?

• No.  Only Contractors that provided services as defined above are eligible to apply for FSPCF assistance.

Q. Are subcontractors of eligible contractors potential beneficiaries of the FSPCF?

• Only Contractors that worked directly for the Insolvent Licensee are eligible to apply for FSPCF assistance.  However, Eligible Contractors will be required to disclose the existence of any subcontractors they used to perform work for which they have not received payment.  If some or all of the work for which the contractor receives FSPCF Compensation was in fact done by a subcontractor, and that subcontractor has not been paid, then the Authority will require that the contractor pay the subcontractor before the FSPCF releases any funds to the contractor.  Alternatively, the Authority will pay the subcontractor for the work done in the time for which the contractor’s invoices will be paid, and deduct that from the compensation paid directly to the contractor.

Q. Are Contractors that work on private land eligible beneficiaries of the FSPCF?

• No.  Only contractors that work land for which the licensee has crown tenure are eligible for FSPCF compensation.  If a contractor has worked for a licensee on a mix of crown tenure and private land, the invoices will have to have the types of work split out so that work on private land is not included in the Compensation Claim.

Q. What happens if compensation claims exceed the assets in the Fund?

• If the total of eligible claims exceeds the available assets in the Compensation Funds, it may be necessary to prorate the claims received.

Q. What happens if the contractor is owed more than the lesser of one unpaid invoice plus 30 days, or 60 days?  For instance, what if the insolvent licensee has received but not paid for 90 days worth of services?

• If the contractor is owed for a work done for more than the lesser of one unpaid invoice plus 30 days, or 60 days, the excess will not be paid by the FSPCF.  Nevertheless, the contractor will have to assign all of its accounts receivable from the insolvent licensee to the Authority in order to receive the above noted maximum compensation.  In the unlikely event that the Authority recovers more than the compensation paid to the contractor, the excess, net of interest at the amount noted in the invoices, calculated over the time period that the contractor had the benefit of the FSPCF compensation, will be forwarded to the contractor.