Federal Court - Christian Aboriginal Infrastructure Developments ...

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

22.01.2015 Views

Page: 276 [1047] I find that the political and social benefits gained by the Defendant were significant and point towards reasonable reliance on the facts of this case. [1048] In addition to the political and social benefits, it must be remembered that the Government would gain a direct or indirect financial benefit from the mill. The 60/40 Rule required that there be local processing in order to harvest timber. A mill, such as the one discussed at the July 1997 2010 FC 495 (CanLII) meeting, would have dramatically increased the local processing capacity. [1049] An increase in processing capacity would have increased permissible harvesting. The evidence shows that a stumpage royalty was paid on all harvested timber. The development of this mill had the potential to significantly increase the royalties received by the Defendant by increasing the volume of timber that could be harvested. [1050] The RIAS to SOR/95-387 estimated that regulatory changes that increased stumpage fees would generate an average of $3,000,000 to $5,000,000 per year in revenue for the Government. This regulatory change was one in the series of responses to the “Green Rush”. [1051] A later RIAS to SOR/95-580, which implemented the 60/40 Rule, noted that delays in harvesting permits would result in the Crown losing $3.7 million in stumpage. This statement in the RIAS was made before there was a mill that could process the remainder of the AAC in that year. Given the two references in different RIAS, I draw the conclusion that these stumpage fees were a consideration for the Defendant.

Page: 277 [1052] As a result, I find that there was a direct or indirect financial benefit to the Defendant. (2) Professionals with special skill, judgment or knowledge [1053] The agents of the Defendant who attended that meeting and made the representation, Mr. Monty and Mr. Gladstone, were professionals, persons possessing special skills, judgment or 2010 FC 495 (CanLII) knowledge. Mr. Monty was the Regional Manager of Forest Resources. Mr. Gladstone was the Operations Forester in the Forest Resources Group, working with Mr. Monty. [1054] Furthermore, in my mind that can be no question that the forestry staff of the Department had special judgment or knowledge. In this regard, I adopt the following statement of the New Zealand Court of Appeal in Meates at page 335: …Furthermore it was both a situation where the likelihood of the translation of policy into action was peculiarly within Government knowledge and entirely under Government control and also one where it was essential for the shareholders to know whether they could responsibly embark upon and later continue with the mission. As such I find that the Crown servants were professionals with special skill, knowledge and judgment. (3) Information given within the course of the Defendant’s business [1055] I am equally convinced that the representation was provided in the course of the Defendant’s business. These were representatives from the Regional Office of DIAND whose

Page: 277<br />

[1052] As a result, I find that there was a direct or indirect financial benefit to the Defendant.<br />

(2) Professionals with special skill, judgment or knowledge<br />

[1053] The agents of the Defendant who attended that meeting and made the representation, Mr.<br />

Monty and Mr. Gladstone, were professionals, persons possessing special skills, judgment or<br />

2010 FC 495 (CanLII)<br />

knowledge. Mr. Monty was the Regional Manager of Forest Resources. Mr. Gladstone was the<br />

Operations Forester in the Forest Resources Group, working with Mr. Monty.<br />

[1054] Furthermore, in my mind that can be no question that the forestry staff of the Department<br />

had special judgment or knowledge. In this regard, I adopt the following statement of the New<br />

Zealand <strong>Court</strong> of Appeal in Meates at page 335:<br />

…Furthermore it was both a situation where the likelihood of the<br />

translation of policy into action was peculiarly within Government<br />

knowledge and entirely under Government control and also one<br />

where it was essential for the shareholders to know whether they<br />

could responsibly embark upon and later continue with the mission.<br />

As such I find that the Crown servants were professionals with special skill, knowledge and<br />

judgment.<br />

(3) Information given within the course of the Defendant’s business<br />

[1055] I am equally convinced that the representation was provided in the course of the<br />

Defendant’s business. These were representatives from the Regional Office of DIAND whose

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