Federal Court - Christian Aboriginal Infrastructure Developments ...

Page: 275
build a mill was considered a serious breach of the conditions attached to the THA. It is clear that
DIAND needed a private investor to implement its policy.
[1045] I accept that there was a political benefit to the Government and to the Regional Office in
having a private investor in Watson Lake proceed with a mill. This is evident from the
communication from Mr. Ivanksi to Mr. Doughty, the special assistant for Economic Development
2010 FC 495 (CanLII)
to Minister Irwin, in an email, entered as Exhibit P-79, Tab 38 and dated November 7, 1996. This
email is included above but for convenience I will reproduce it again:
…
The best news is they are working with the local loggers and have
contracted to get the Tier 1 wood to meet their needs for the first
couple of years of operation. This makes our tiered system looking
pretty good, and opens a market for loogers to sell domestically.
Their next phase would include a pellet plant and finishing the
processing locally and is a year or two away. This will cause a
pressure however as they’ve already stated that the financiers will
require an allocation and tenure before they will make a further
substantial investment. But the timing isn’t bad. With the
consultation on a new policy, tenure and allocations will no doubt be
critical components. Having an operator on site, working and paying
bills within a few months will certainly focus this discussion,
particularly since they will promise more jobs etc but need tenure.
…
[1046] Moreover, there is evidence in this trial that there is a very high unemployment rate in
Watson Lake. The forest industry in Yukon operates primarily out of Watson Lake. A mill that
provides much needed employment would give real political and social benefits. The mill that the
joint venturers constructed in Watson Lake was the largest private employer in the Territory when it
closed its doors in 2000.