. by Tod Strachan

The forest industry is the biggest

' employer in the Regional District

of Kitimat-Stikine, a geographic

area of nearly 105,000 square

kilometers and home to more than
40,000 people.

The impact of one aspect of the -

forest industry, though, has been
questioned by the regional district
board of directors, and they are
now examining a consultant’s
report as a part of their process in
developing an official position
which should be adopted at their
Apr. 21 meeting. A draft report on
a study initiated by the board and

‘done by Hugh Hamilton Lid. of

North Vancouver, may form the

_ basis of their postion on log

exporis which will be presented to
the Select Standing Committee on
Forests and Lands,

"The Regional District has had
some lean years during the
recession periods and. is dutifully
aware that hard times may come
again," begins Hamilton’s report.
"It is with these experiences in

Mind that the Regional District

wanis-to ensure that the policies of
the Ministry of Forests will diver-
sify and stabilize the industry.”

Hamilton explains that a govern-
ment order-in-council now pro-
vides for unrestricted log exports
from the North Kalum area, He
says this policy was "timely"
‘because it provided for growth and
@ stable economy in the Stewart
area when the Granduc copper
mine closed, but other communi-
ties, particularly Hazelton, view
the policy as detrimental to their
own economies. The policy is to
blame for shortages of sawlogs and
escalating prices.

Terrace, on the other hand,
shows little concer one way or
the other. According. to Hamilton,
operations in the Terrace area rely
on North Kalum logs for about 10
to 20 percent of their current needs
and they feel they can compete
with export price using lower
quality sawlogs from the North
Kalum.

From this, the board must deve-
lop a position. But while Stewart
with an annual allowable cut in the
Surrounding forests (AAC) of 1.3
million cubic meters is in favor of
log exports, Hazelton, with a tribu-
tary ACC of 1,2 million cubic
meters is opposed; and Terrace
with 1.6 million cubic meters a
year doesn’t really seem to care
one way or the other. This split in
"economic zones" within regional
district boundaries, then, could
make it difficult for the regional
district board to form a single
overall postion on log exports.
This: is a problem the board will
have to face on April 21.

Hamilton summarizes the effect
of log exports on the Terrace/Kit-
imat area as follows: "The City of
Terrace has been built primarily on
its forest resource with the CN rail
line, mining and fishing providing

' + ‘some economic support. Also

helping Terrace’s economic posi-

‘tion: in: the northwest is the fact

that it forms a major service center
for Stewart, the Nass Valley,
Hazelton, Kitwanga and Kitimat.”

In this sense, then, the harvesting
activity created by log exports in
Stewart has provided direct econ-
omic benefit to Terrace. “There
is," "according to Hamilton, "a
healthy competition for logs in
Terrace: not only from the North
Kalum (Stewart area), but even
from the Hazelton (Kispiox) area."

In the overall picture, then,
Hamilton concludes that forest
industry activity is an integral part
of the regional district economy, in
part due to Skeena Cellulose and
its Watson Island pulp mill.

He quotes from a Skeena Cellu-
lose presentation to the Select
Standing Committee on Forestry in
November, 1989: "The export
market has provided the necessary
economic stability to the region. It
has also made it possible to’ have
competitively priced pulp logs
available to coastal pulp mills and
at the same time to implement
reforestation plans."

Hamilton qualifies this latter
statement earlier in his report. by
stating that timber in the North
Kalum is “primarily over-mature
with a high incidence of defect and
decay". He adds, "From a forest
management standpoint it is essen-
tial that these over-mature forests
be harvested. and. new, more
vigourous-growing foresis be
established in their place," and,
“Allowing unrestricted exports
from the North Kalum area pro-
vided a solution." a

What this all means to Terrace
and Prince Rupert, according to
Hamilton, “is that the revenues
gained from exporting sawlogs

help offset, or subsize, the high

costs associated with handling the
low grade logs and in reforesting
cut-over lands". In other words,
exporting high grade logs at $50 to
$100 per cubic meter helps cover
the cost of getting lower grade logs
to the mill. At the same time,
though, he points out that log
exports aren’t the only factor
involved. "It is in part the more
bouyant domestic pulp prices
which have climbed from $24 per
cubic metre to $32 to $34 per
cubic meter." |

He concludes: "The volatility of
the pulp market may present short
term problems, but on the whole
we consider the pulp economy to
be a stabilizing influence on the

- Regional District."

From’ this preamble, Hamilton
presents the following positions on
a number of issues. On the export
of logs from Small Business sales,
regardiess of the regional disirict’s
postition on the export of logs
from Stewart, opposition against
the export of logs from these tim-
ber sales should be noted. "We
urge that all logs cut under the
Small Business program be pro-

cessed within the TSA and piefer-

ably all value added processing be
conducted within the TSA,"
Hamilton writes. As an alternative,

he suggests that the lower main-

land should reap the benefits of

remanufacturing.

Hamilton also adopts a position
- on the sale of Pulpwood Area 17

timber rights, but this one ‘may
cause the- board some problems.
"This sale is designed to encourage
the full utilization of byproduct
chips and to provide emergency
sources of fibre in the event that
sources of chips are inadequate,"
writes Hamilton,

He then suggests, "The Regional
District endorses the policy of
encouraging the utilization of
byproducts, forest waste and pulp
grade logs. In our view there is
sufficient furnish to support more
than one facility or an expansion
of a mill. There is an opportunity
to create new industries, and to
stabilize existing industries. This is
nowhere more imporiant than in

‘the Stewart area where any such

developments would have benefits
to both the Terrace area and the
Hazelton area."

On silviculture, Hamilton says he
believes the primary objective in
harvesting the “very decadent
hemlock/balsam stands of the
North Kalum" is to reforest cut
over areas with “new and
vigourous stands".

He adds this caution, however:
"There were several references In
submissions to the Committee

., Select Standing Committee) which
Suggested that not only is material .

being left on the ground, but that
silvicultural requirements are not
being fullfilled. The position that
(Hamilton suggests) the Regional
District holds is that the benefits of
exporting policies must not only be
to industrial development and
employment, but that the long term
productivity of the forests be es-
tablished through these operat.
tons."
- In conclusion, Hamilton states
that the province’s log export
policy has created a strong econ-
omic base for the Stewart area and
healthy benefits for Terrace and
Prince Rupert. At the same time,
though, it has reduced the ability
of Hazelton mills to compete for
North Kalum logs.

He encourages the development
of a fibre-processing facility in

_ Stewart and notes that new ven-

tures like B&I and Kalum Wood
Products coming io Terrace
"demonstrate the demand for our
fibre, defective though It may be".

"As these initiatives develop,"
Hamilton suggests therefore, "it
may well be necessary to review
exporting policies on a regular
basis."

In the meantime, he says a com-
promise is possible that would
satisfy everyone’s economic con-
cems. "It may be appropriate to
consider an adjustment of the free
exporting rule. The evidence
shows that only some 22 percent is
in fact exported," writes Hamilton.
"There is, therefore, some leeway
to adjust the policy that would
assist the Hazelton/Kitwanga econ-
omic arca without impacting on
either Stewart, Prince Rupert or
the Terrace/Kitimat area."

’ Terrace Review — Wednesday, April 18, 1990 All

"No left turn”

After the end of this month,
motorists driving east on Lakelse

- Ave. can expect to see a "No Left

Turn” sign at Emerson Street... and
can expect tickets if they choose to
ignore it,

With the blessing of the local
RCMP detachment, city council
has decided that a "No Left Turn"
policy will go into effect between
the hours of 9 a.m. and 6 p.m.
seven days a week, and according
to city council the rule will be
enforced by police.

Weekend and Friday night traffic
was discussed by council members
at the committee level, but they
felt that weekend and Friday night
traffic was less of a problem and

| tule in the works
for downtown corner.

posting hours that vary from day
to day could be confusing to the
public.

Driving east, however, traffic
will still be able to turn left off
Lakelse at other streets. There are
several other streets that can. be
used to go north, but the safest
spot might be at Kalum, where a
$1,000 upgrade to the traffic lights
will provide, a combination
through-iraffic and left turn signal
for eastbound traffic. Westbound
traffic wanting to turn left at
Kalum will still have to fight traff-
ic, but according to director of
engineering Stew Christensen this
Shouldn’t be of any concern to
most drivers.

Forest Technician II scale.

supervision

Experience: Minimum of two

ates require no experience.

drivers licence.

MINISTRY OF FORESTS
KALUM DISTRICT OFFICE

The Ministry of Forests has an immediate opening for a
Recreation Technician. This is an auxiliary four (4) month
term appointment, commencing as soon as possible. The
salary and benefits will be in accordance with the B.C.G.E.U.

Duties: Under the direction and supervision of the Resource
Officer Recreation, carry out field work services
i) site and trail inspection and maintenance

ii) trail and site construction project monitoring and

lii) user survey implementation
Education: Secondary school graduation or equivalent.

Preference will be given to Technical School Graduates with
Recreational Forestry related diplomas.

quired for High School graduates. Technical School gradu-

Skills: Ability to: carry out routine instructions; deal with
unusual situations; meet and deal with the public; work safe-
ly and effectively; withstand the rigors of field work; keep
records and complete reports; hold a valid Class 5, B.C.

Application Deadline: May 4, 1990 @ 4:00 p.m.

Send resume or complete application at: Ministry of Forests,
| Room 200, 5220 Keith Avenue, Terrace, B.C., V8G 1L1.

years related experience re-

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DATE: ~— May 3, 1990
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