Federal Court - Christian Aboriginal Infrastructure Developments ...

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[973] As well, the fact that DIAND required KFR to pay into a mill fund also confirms the
importance that the Department gave to having an operating mill in Yukon.
[974] DIAND informed KFR that local processing of timber was a key requirement that was
necessary before a new THA would be recommended to the Minister; see Exhibit P-80, Tab 56.
2010 FC 495 (CanLII)
Furthermore, in the event of a shutdown of the Plaintiffs’ mill, KFR was required to make
alternative arrangements for local processing of the timber harvested from their THA. These two
requirements from DIAND emphasize the importance placed on local processing by the
Department; see Exhibit P-80, Tab 33 and Tab 35.
[975] On February 26, 1998 there was a meeting between the joint venturers. The minutes of this
meeting were entered as Exhibit D-11, Tab 109. At that meeting Mr. Alan Kerr related that Mr.
Terry Boylan, the SYFC lawyer, had been told by DIAND that “SYFC just has to go ahead and put
up an operating sawmill after which the wood will become available”. This document was entered
for the truth and accuracy of its contents by the Defendant. This evidence also supports my finding
that a representation was made.
[976] The Defendant drew the Court’s attention to statements made by Mr. Brian Kerr to the
effect that there had been no guarantee of timber from any Government; see for example Exhibit D-
11, Tab 117; and Exhibit D-63. I accept Mr. Kerr’s explanation in cross-examination, at pages
1284-1286 of the transcript, where he said: