Contractors in Happy Valley-Goose Bay are upset with the town's new policy that forces them to pay higher fees to dump their garbage at the community's landfill.

The town has brought in tipping fees, and hopes to generate revenue from contractors working at the Muskrat Falls site.

Contractors will have to pay around $100 per truckload, or up to $200 if it's coming from outside town limits.

Companies operating from outside the town will have higher fees to pay than contractors from Happy Valley-Goose Bay.

Paul Snelgrove, a local business owner, said the companies within the community should not have to pay fees at all.

"I applaud the council for looking at those kinds of issues that create revenue, but the only thing is I think the policy could be fine tuned that you don't go after everyone because you're trying to get two, or three, or four, or five per cent of the people using the dump," said Snelgrove.

He said the town should realize the big impact this could have on the local industry.

"When you're already paying $5,000 for the building, which means you're paying $35,000 or $40,000 a year in property and business tax, another couple grand is a bit of a kick in the guts."

Contractor Stafford Roberts said the real cost of the tipping fees are going to fall on people in the town who are hiring the contractors, rather than contractors themselves.

"For every trip we've got to make to the dump, if we're building a new house, it's gonna go on to the price of the house," said Roberts.

"It's not the business that's going to pay for it, it's the people of the town."

Residents of Happy Valley-Goose Bay are still able to use the landfill free of cost for personal trash disposal.