Federal Court - Christian Aboriginal Infrastructure Developments ...

Page: 340
Q. So that’s where the difference in price came mainly, was
the freight cost advantage
A. Yes.
Q. Thank you.
A. And again, I was conservative. But that’s right.
[1283] Mr. Van Leeuwen, both in his report and his oral evidence, commented upon the value of
2010 FC 495 (CanLII)
the fact that the timber resources of the Yukon Territory were exempt from the countervailing antidumping
duties of 20 – 25 percent that were imposed by the United States Government relative to
the softwood lumber dispute with Canada. He also noted that the timber from Yukon was not
subject to the 15 percent export tax that was imposed on certain Canadian lumber products when the
countervailing anti-dumping duties were ended in 2003. These features meant that the cost structure
of wood from Yukon was attractive.
[1284] It makes sense to me that Yukon would be a ready and willing market to purchase lumber
from the Plaintiffs’ mill. The mill would be employing local residents and generating income in
Watson Lake, possibly elsewhere in southeast Yukon. The work provided by the operations of the
mill would enable the residents to purchase wood products for their personal use.
[1285] Given the obvious boost to the Yukon economy from continued operation of the Plaintiffs’
mill, the price advantage resulting from reduced shipping costs and the opportunity to buy from a
“home town” manufacturer, I see no reason to question Mr. Van Leeuwen’s assumption that 25
percent of SYFC’s production would be purchased in Yukon.