Federal Court - Christian Aboriginal Infrastructure Developments ...
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Federal Court - Christian Aboriginal Infrastructure Developments ...

Federal Court - Christian Aboriginal Infrastructure Developments ... Federal Court - Christian Aboriginal Infrastructure Developments ...

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22.01.2015 Views

Page: 128 [513] On August 31 st , a briefing note was prepared by the Regional Office of DIAND, noting the official opposition’s call for an inquiry into the gross mismanagement of forestry resources in Yukon. This document is found in Exhibit P-79, Tab 323. [514] The briefing note prepared by Ms. Stewart and approved by Mr. Sewell states: 2010 FC 495 (CanLII) Closure of the South Yukon Forest Corporation (SYFC) mill occurred as a result of a number of factors: • Low North American price of lumber. • Uncertainties associated with the end of the Canada-US Softwood Lumber Agreement and the advantages to SYFC associated with it. • SYFC mill would need to expand its capabilities to produce finished products to remain profitable after the Canada-US Softwood Lumber agreement ends. This would include increased mill efficiencies to deal with the small trees available in Yukon. • Even if an area based THA was available to SYFC, road infrastructure investment would be necessary to access the wood. This would be additional investment dollars over and above the needed mill expansion. • The lower harvest ceiling in the forest management units close to Watson Lake did have an additional adverse effect on the mill. However, it seems that market conditions in general had the greatest impact on SYFC and it’s decision to shut down. [515] The Yukon Regional Office failed to identify the single factor that SYFC identified as the reason for mill closure. Instead, it suggested a series of factors, none of which were accepted by the Plaintiffs as causing the closure. Further, I note that the causative factors that the region identified conveniently absolve the region of any responsibility.

Page: 129 [516] The closure of the mill was an important issue for Minister Nault. In a letter dated September 19 th , entered as Exhibit P-79, Tab 327, to Ms. Hardy, MP for Watson Lake, the Minister noted that: Much attention has been placed on the closure of this mill. Such concern is understandable and shared by the Department of Indian Affairs and Northern Development (DIAND). The South Yukon Forest Corporation is an important employer in Yukon and the community of Watson Lake. The closure of the company’s mill is taken very seriously and I would like to assure you that DIAND’s Yukon regional officials are exploring every available option in an effort to return the mill to production. I am pleased to see your support for DIAND’s initiative to strengthen First Nation economic capacity and business development. DIAND is currently evaluating a joint venture proposal submitted by the Liard First Nation under the Regional Partnership fund and Major Business Projects. (Emphasis added) 2010 FC 495 (CanLII) [517] Indeed, in September 2000, Ms. Jennifer Guscott, then ARDG signed a recommendation in favour of investment by the Department of $5.5 million to support KFR in taking over 51 percent of SYFC, pursuant to the Regional Partnership Fund and Major Business Projects. This recommendation was made after the mill had closed. [518] This $5.5 million investment was part of a larger $7.3 million investment in the SYFC mill by KFR. This investment would see KFR assume a 51 percent equity share in the mill. [519] This recommendation, found at Exhibit P-79, Tab 334, noted that the mill would be upgraded with the addition of a kiln and planer, log home venture and the renewal of the KFR THA.

Page: 129<br />

[516] The closure of the mill was an important issue for Minister Nault. In a letter dated<br />

September 19 th , entered as Exhibit P-79, Tab 327, to Ms. Hardy, MP for Watson Lake, the Minister<br />

noted that:<br />

Much attention has been placed on the closure of this mill. Such<br />

concern is understandable and shared by the Department of Indian<br />

Affairs and Northern Development (DIAND).<br />

The South Yukon Forest Corporation is an important employer in<br />

Yukon and the community of Watson Lake. The closure of the<br />

company’s mill is taken very seriously and I would like to assure you<br />

that DIAND’s Yukon regional officials are exploring every available<br />

option in an effort to return the mill to production.<br />

I am pleased to see your support for DIAND’s initiative to strengthen<br />

First Nation economic capacity and business development. DIAND<br />

is currently evaluating a joint venture proposal submitted by the<br />

Liard First Nation under the Regional Partnership fund and Major<br />

Business Projects.<br />

(Emphasis added)<br />

2010 FC 495 (CanLII)<br />

[517] Indeed, in September 2000, Ms. Jennifer Guscott, then ARDG signed a recommendation in<br />

favour of investment by the Department of $5.5 million to support KFR in taking over 51 percent of<br />

SYFC, pursuant to the Regional Partnership Fund and Major Business Projects. This<br />

recommendation was made after the mill had closed.<br />

[518] This $5.5 million investment was part of a larger $7.3 million investment in the SYFC mill<br />

by KFR. This investment would see KFR assume a 51 percent equity share in the mill.<br />

[519] This recommendation, found at Exhibit P-79, Tab 334, noted that the mill would be<br />

upgraded with the addition of a kiln and planer, log home venture and the renewal of the KFR THA.

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